Promoting rural cooperatives in developing countries: the case of Sub-Saharan Africa

Abstract

The economic crisis in sub - Saharan Africa presents a major challenge to donors and to policy-makers. After an initial period of growth following independence, most African economies faltered, then failed. Repressed producer prices, inefficient public marketing boards, and weak government commitment have often been blamed for the poor performance of agriculture, Africa's most important sector. Thus, since the mid-1980s, many structural adjustment programs have emphasized price and marketing reforms, and countries have liberalized the marketing and pricing of major food crops. These reforms have improved the performance of the agricultural sector, but the effects on growth and real income have not met expectations. Deficient infrastructure, inadequate access to inputs and credit, poor extension services, and inefficient marketing systems constrain the effective expansion of production. There must be reforms that specifically address these constraints. This paper examines the reasons behind successful and unsuccessful experiences with rural co-ops and reevaluates the potential for remedying the major problems. It briefly explains the motivation for and effectiveness of rural co-ops in developed countries through the example of the Dutch. It then focuses on the development of rural cooperatives in sub - Saharan Africa and on the main issues and problems, including internal and external constraints.

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