1.1 Background to the Study.
Today, in an era when people feel powerless to change their lives, Cooperatives represent a strong, vibrant and viable economic alternative. Cooperatives are formed to meet people’s mutual needs. They are based on the powerful idea that together, a group of people can achieve goals none of them could achieve alone.
For over 160 years now, Cooperatives have been an effective way for people to exert control over their economic livelihood. They provide unique tool for achieving one or more economic goals in an increasingly competitive global economy. As governments around the world cut services and withdraw from regulating markets, Cooperatives are being considered useful mechanisms to manage risk for members in agricultural or other similar Cooperatives, help salary/wage earners save for the future through a soft felt monthly contribution that is deducted from source, own what might be difficult for individuals to own by their efforts, strengthen the communities in which they operates through job provisions and payment of local taxes.
From the 1950s to mid 1980s, Cooperatives played a central role in the economic planning of post-colonial nation States and other development countries. Cooperatives were target for considerable amount of development assistance. This aid did produce some self-sustaining Agricultural Cooperatives especially for farmers close to Urban Markets or who were strategically placed for exporting their produce (Joseph.G.Knapp 1962).
Ado-Odo/Ota is plague by high illiteracy rate and insufficient investment in agriculture. As a result, participation in global market is limited, further perpetuating the cycle of poverty. It has been suggested by the international community that concerted efforts be made towards building individual and institutional capacities in developing nations.
1.2 Statement of the problem
A study by Joseph C. Kennedy, indicates that many African countries have failed to create sustainable development, despite the great potential resulting from their inherently large amount of natural resources.
Global report showed that despite the constantly increasing aid most of the continent is experiencing falling GDPs in absolute terms, a concern which is exemplified by a report from the Organization of Economic Community (OEC), which indicated that the aid to the Ogun state region increased by a factor of 4.6 in constant terms between the early 1970s to the mid-1990s. Needless to say, many scholars contend that the problem of aid misused, combined with aid mismanagement and the resulting lack of development in Ado-Odo, Ota can partly be attributed to the types of policies formulated and implemented by the government of many African nations.
Inspite of all the orchestrated policies and programmes for successive government in Nigeria, the problem of rural backwardness and under-development has remained unresolved. This is evident in the persistence of agriculture stagnation, hunger, poverty, disease, unemployment, poor housing, under-employment, poor infrastructure facilities. Most of our rural areas also suffer from inadequacy of social services, high birth rate and death rate, low life expectance, malnutrition and Ignorance, lack of productive, technical and managerial skill to improve production.
In the light of these problems, the researcher is therefore boarded and wants to probe into the activities of societies to know whether they are contributing towards the development of our rural areas with a particular focus on ADO-ODO/OTA LOCAL GOVERNMENT area Lagos State.
The researcher also intends to investigate cooperative societies as agent of rural development by identifying the above mentioned phenomenon and to know the prospect and problems encountered by cooperative societies in their attempt to develop the rural dwellers.
1.3 The Objective of the Study.
The broad objective of the study is to examine the contribution of cooperative societies to the development of ADO-ODO/OTA local government area.
The specific objectives are as follows:
1.4 Research Question.
The following questions are to guide the researcher towards finding out the solutions related to the problems, objectives and question of research.
1.5 Research Hypothesis
Research Question 1:
Ho: Cooperative societies do not play vital role in the development of rural areas.
Hi: Cooperative societies do not play vital role in the development of rural areas.
Research Question 2:
Ho: Financial problem does not hinder the activities of cooperative societies
Hi: Financial problem hinders the activities of cooperative societies
Research Question 3:
Ho: Government and financial institutions are not helpful in enhancing the activities/roles of cooperative societies
Hi: Government and financial institutions are helpful in enhancing the activities/roles of cooperative societies
1.6 Significance of the study
This study intends to achieve the following objectives:
1.7 Scope of the study
It is a known fact that development is not confined to any particular area but all over the globe.
However, this study focuses its attention on the development of rural areas through the effort of cooperative societies with reference to ADO-ODO/OTA local government area in Ogun State. Hence the type of cooperative societies, role, prospect and problems would be looked into with particular emphasis to ADO-ODO/OTA local government area.
1.8 Definition of Operational Terms
It is important to give a brief definition of the following key terms, in order to know the meaning of the key concept and some words in the research project.