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REDUCING UNEMPLOYMENT THROUGH CO-OPERATIVE SOCIETIES  (A CASE STUDY OF AWKA SOUTH LOCAL GOVERNMENT AREA)

 

ABSTRACT

          It is the intention of this study to examine on how unemployment could be reduced through co-operative societies in Awka South Local Government area.

          This objective of this research work is to bring to the co-operative (societies) in the area of studying on how unemployment could be reduced. I also pointed out the type of unemployment problems that could be encountered. These are normal and transitional unemployment, seasonal unemployment, functional unemployment and structural unemployment to be mentioned but few.

 

TABLE OF CONTENT

Chapter One

1.0     Introduction

1.1              Background of the study

1.2             Statement of problem

1.3             Objective of the study

1.4             Significance of the study

1.5             Scope and Limitation of study

1.6             Definition of terms

Reference

        Chapter Two

Review of related literature

Chapter Three

Research design and methodology

Source of data

Methods of investigation

Chapter Four

Data presentation and analysis of data

Interpretation of data

Chapter Five

Summary of findings recommendation and Conclusion

 

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Co-operative is the fundamental, social and economical process by which the family, countries and whole nations are able to function. It has long been a human characteristic to form association to provide food, shelter, employment and other forms of mutual supports so to say.  Mutual benefits to be derived by families and individual working together at harvest or other agreed time and may be seen in many countries around the world, being a way to organize man-power to achieve a particular purpose or objective e.g. building of house or other communal facilities e.g. digging of well, keeping the environment clean when there is occasion etc.

 

Co-operative has evolved as a strategy to generate economic activity in areas of high unemployment and where the local economy is weak or virtually non-existence. In Co-operative, there exist no discrimination among it’s membership. However, membership is open to the residents of that particular locality. The establishment of community enterprise will certainly be multi-functional in that it will be responsible for a number of specific projects at one time. It will both initiate business ideas and help local people develop their own ideas, it may intervene in various ways in the local economy, it may also, sponsor projects of community benefit in addition to its own trading activities and business development work. It is likely to be both holding companies and local development agency, and seek to provide a community owned structure in a particular locality which can initiate economic activity on behalf of the residence, some communities grows specific enterprise might in time be floated as self-standing business like co-operative societies.

Nevertheless, the community business is thus more than a trading   organization. It  is a means of stimulating new business growth in some communities and also among people, where there is little or no tradition of entrepreneurial activities and usually a history of long term unemployment and social deprivation.

 

Community co-operative and community business, are established mostly in areas of high unemployment, where the starting point is likely to be the question posed by local people; WHAT CAN WE DO TO TACKLE UNEMPLOYMENT?  the search for  forms of self help by community groups and the unemployed however, have gained  a very considerable momentum in the last decades. In the case may be, since enough practical experience has been gained, more other interested groups have been totally inspired in the sense to try and do something in there own various localities or areas, action born of a growing belief that government authorities (Public) nor private industries will be quick to provide a reasonable jobs that are needed also of a preference to do something rather than wait on other actions.

 

1.2     STATEMENT OF PROBLEMS

The most important problem of lack of employment opportunities which seems  to have been resolved in the 1960’s and 70’s have returned to plague us with renewed force. Now, there is vast unemployment and growing tide of emigration. In 1975, the country’s labour force employed 1.157 million people, ten years later, this number increased up to 1.3 million which shows that 12% increase over the past decade, the Unemployment level increased by 141, 000.50 these who joined the rank of the labour force marched straight to the dole queue.

There are more than 250,000 unemployed and emigration against increased. Daily Time News Paper, 19th September 2004; p.2.

        A cruel twist is that many of our emigrant and  unemployed are the bright graduates of our universities and other higher institution, they were educate with tax payers money.

Nigerian society is divided into two:-

1.     Those who have secured good employment in civil and private sectors.

2.     The over twenty percent (20%) of our population, who face poverty and hopelessness without the prospect of work at home. Many reasons have been given for this critical situation regarding jobs, particularly in the field of industry, some we share with all the countries of the world, others we share particularly with the  countries of the European community such as the movement of capital to the cheap labour countries of the pacific and the impact of new technology. Other reasons perhaps  are more peculiar to Nigerians such as the rapid growth of population. Owing  to performance  report of “MAMSER” (As reported in the Guardian Newspaper edition of 3rd February,2004, p.6) I would like to ague that those who approach to development since the mass mobilization  and self economic reliance programme in the 80’s has been misguided. Over the long period, total number of people employed in Nigeria have declined from 1,217,000 in 1984 to 1,112,000 in 1996 or by 906. In the same period, the number employed in Nigerian industries have declined by 45%.

However, there is a fast that cannot be over emphasized, that is  no country can succeed in providing a reasonable standard of living for its citizens without developing it’s own trade institutions that are relatively large, technically sophisticated and able to complete in the international market. In that respect, co-operative activities must be developed and relatively large enough to absorb our unemployed graduates.

 

1.3     OBJECTIVE OF THE STUDY

The pains of unemployment and waste of resources on the process, kept my mind, having pain-stakingly devoted my research, to an empirical study of how we can successfully bring the unemployment deficiency to an abrupt stop, we are certainly left with no other option to choose from other than through an adoption of socio-economic model of mutual self help whereby the unemployed individuals could voluntarily join together to achieve a common end, through in the formation of co-operative business enterprise.

        Co-operative which plays an increasingly important role in the economic life of many countries and individuals is the objectives of the study, it is far ahead an attempt to describe the problems which are typical to this form of economic organization and to give a fairly comprehensive review and analysis of the various possible co-operative projects there are (Shops, farms, mills, banks, workshop, factories etc). The more jobs are created from them with the purposes of providing their members with full-time employment. Therefore, our aim in this respect is to emphasize the heavy promotion and establishment of co-operative enterprises and exploit the economic advantages and benefit associated with it.  Taking a brief survey of perhaps the potential advantages of co-operative movement to include:-

 

1.     CAPACITY UTILIZATION OF SCARE RESOURCES

The first law of economics emphasis “efficiency” in the use of resources, losses must be avoided, resources should not be left idle, there must be full capacity utilization, unemployment is a breach of law, where labour is being left ideal, in attempting to correct this therefore, labour can be mobilized nationally in area of Agriculture, processing farm produce, artisanal craft etc.

2.     EMPLOYMENT AND ECONOMIC GROWTH

Employment if not an end in itself can serve as a means to other importance ends, beside production, failure to achieve economic growth at least as rapid as population growth stagnation and the perpetuation of poverty. At any one time, both output and employment are heterogeneous collection of goods and services, and current levels of both may influence future levels.

3.     SUPPORT FOR MODERN FARMING-INVESTMENT FOR INDUSTRIAL DEVELOPMENT EXPANSION OF MARKET.

This implies progrmmes for the unemployed school leavers and for the training of those who are going to do teaching and extension services. The first category comes from those supporting measures frequently referred to as co-operative auxiliary without which agriculture cannot be modernized, the training and market organization. The access to capital.

        The second include the mobilization and planned orientation of investment funds from both internal and external sources without which the development of agriculture, manufacturing and of public work programmes cannot proceed. The third also involve the measures designed to expand the market both domestic and export for manufacturers and for primary products. For it is a truism to observe that the large the volume of output that can be sold, the longer the member of jobs created. This is important scope for private initiative, nevertheless a major share of the responsibility for action lies with the public, co-operation institutions development agencies, governmental and other bodies.

        Action in these areas can have there positive influence on the volume of employment that us :-

  1. The creation of jobs opportunities through the facilities they produce, the staff of the training programmes of the savings bank for the marketing board and so on.
  2. It is the aspect to which perhaps greater attention than hitherto should be given, it can in each sector deliberately encourage an orientation to the more labour intensive technique of producing them. This reminds that problems of unemployment promotion are an inseparable part of problems of general development.
  3. By enabling the output of agriculture and of manufacturing industries expand more rapidly, it stimulates the demand for manpower.

 

4.     REDUCING MIGRATION

Movement  or migration can significantly hamper or facilitate the task of trying to match the demand for employment with the available job opportunities  which a country, migration may be towards distract where industries and employment opportunities are expanding or it may be predominantly towards the larger cities, where unemployment is already acute. Emigration may take the form primarily or reducing the number of unskilled  persons seeking work or it may remove some of the best  educated who can least be speared. The methods adopted by co-operative in respect to these various population movements areas of rural development should be considered as an integral element in employment strategy to give a fraily comprehensive review and analysis of the various possible co-operative projects there are (Shops, farms, mills, workshop, banks, factories etc). The more jobs are created from them with the purposes of providing their members with full-time employment. Therefore, our aim in this respect is to emphasize the  heavy promotion and establishment of co-operative enterprises and exploit the economic advantages and benefit associated with it. Taking a brief survey of perhaps the potential advantages of co-operatives movement to include.

 

1.4     THE SCOPE AND LIMITATION OF THE STUDY

The area of study or research in Enugu North Local Government Area of Enugu State. The research is to determine the impact, capability and effect of unemployment reduction through co-operation movement/societies with specific emphasis on.

PRODA STAFF CREDIT THRIFT AND LOAN SOCIETY

The research lovers the operation of co-operative movement and others with a view to finding out to what extent they generate and create employment both patron and other members of the society. In an attempt to produce this work, the researcher faced several handicaps which includes: inadequacy of data, non- co-operative attitude of some official visited resulting in their failure to divulge some vital information about their societies and how the society do carry out their operations. It was not easy to contact some of the officials of the local government councils, co-operative division whose experience would have helped 



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