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THE IMPORTANCE OF STUDYING ECONOMICS OF CO-OPERATION AS A QUALIFYING SUBJECT

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CHAPTER ONE

1.0              INTRODUCTION

1.1      BACKGROUND OF THE STUDY.

The entire development of a business enterprise in a particular country required difference institutional frame work.

One of such institutional frame work is the co-operative business enterprise.  The word co-operative can have different interpretation.   In a lay man’s language, it means working together or working mutually.  Another interpretation which is where our emphasis lies, means a unique type of business organization.  The co-operative has been defined by different school of thought but the variation lies in the degree of emphasis on one aspect or the other.

 One school of thought describes co-operative as business undertaking owned and operated by voluntary associations in order to provide members with work and wages or with goods and services.  But the International co-operative alliance (ICA) defined co-operative as “An autonomous association of persons, united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

 The role of economic of co-operative in business is indispensable to the growth and development of the economy. This vital role has been justified by co-operators in the socio-economic and political development particularly in developed countries like England, known for consumer co-operative and Germany known for Credit co-operative.  Likewise in the developing countries like Nigeria.

 Co-operative movement is a world wide phenomena from which countries have developed from simple traditional form (8) of mutual institution to a modern formally organized institution.

 This institution has gained world wide acceptance because of the great role.  It has played in the economy development of various countries particularly in those of the developed countries.


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