The Government-controlled Cooperatives, A strong model for Cooperative establishment? A Re-thinking from African Cooperatives:

Abstract

The history of Africa cooperative has been influenced by government policy and registration to the extent that even when it comes to the promotion of new cooperatives. The paper examined two questions; how government had taken right of cooperative society; how rights of members in cooperative have been compressed. The paper was guided cooperative democratic theories that focus on how democratic principles. In nature the paper is descriptive and has adapted the qualitative approach. This paper was mainly written based on the critical assessment on various literature related to the co-operative movement. The review of various published papers and reports were done. The discussion shows that; the legal framework for establishing cooperatives guided by principles and theory, must be member driven models. Also, reforms made across different time period should embrace member benefits and member controls than creating the government mechanisms in controlling cooperatives. Also, it was found that, in developing countries Tanzania inclusive, there is more government hands than stakeholders (Members). Further, the establishment of cooperative in Africa would have been formed by insider driven efforts based on the capital structure accumulated and governed by cooperative principles. Also, the promotion of cooperatives by government controls and driven models cannot promise a sustainable strategy through which members feel of being true cooperators. The paper concludes that, when the promotion of cooperative becomes an insider driven model cooperators they formed a resilience, strong and sustainable cooperative enterprise. The paper recommends to cooperative policy makers to strengthening membership rights in including on cooperative laws ensuring transparency in governance, promoting member education and participation, and addressing conflicts of interest. Further recommendations to the Tanzania government (ministries and TCDC) should focus on creating a conducive environment for cooperative development and providing necessary support, rather than direct control.