Problems of the cooperative movement in Uganda: a case study of Banyankore Kweterana Cooperative Union Limited

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University of Dar es Salaam
This study focuses on the problems of the cooperative movement in Uganda, with Banyankore Kweterana Cooperative Union Limited as a case study. Chapter I maps out the general framework of the study. It traces the origin of Cooperatives, states the problem, objectives and other theoretical issues. The last part is the literature review. Chapters II, III and IV trace the historical development of the cooperative movement in Uganda. Chapter II looks at the period before 1945, when the colonial authorities considered it premature to organise cooperatives. During this period, the relationship between the authorities and the agricultural producers was antagonistic and restrictive. Chapter III looks at the period between 1945 and 1962, when the colonial approach to cooperatives changed from being antagonistic to collaborative. However, it was still restrictive up to independence in 1962, when cooperative gained some autonomy. Abuse of this autonomy by cooperative officials led government in 1970 to enact regulations controling cooperatives. This is addressed in chapter IV. Government changes after 1970 had negative effects. The Military regime of the 1970s eroded the confidence cooperation had built in the previous decades. Black marketeering, political persecution and killings created a very poor environment for cooperative business. War in 1979 and civil strife between 1981-1985 left most cooperative infrastructure completely destroyed or damaged and some looted. The late 1980s and the early 1990s, has been a period of struggle to restore what was damaged. It has also witnessed the coming in of foreign capital and foreign control of cooperatives. Chapter IV addresses the real problems of cooperatives. It is noted that the general poverty in rural areas is the heart of the problem. Cooperatives being generally agro-based, pay less in terms of wages and salaries compared to other lines of income. Consequently, they have failed to attract the young and more educated and therefore dynamic personnel. It is also acknowledged that cooperation is nothing more than price, where old age social security is non-existent. That is why private processors / traders have managed to stage a stiff competition against cooperatives. Low levels of share capital compared to the large turnover of cooperative business have eroded cooperative members' control. Cooperative is tending to operate more as companies as control gradually shifts to the major financiers. The last chapter, chapter V, gives the conclusions of the study and some recommendation on how the cooperative movement can be improved, based on the findings of the study.
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Co-operative societies, Uganda
Mwejune, N. N. (1993) Problems of the cooperative movement in Uganda: a case study of Banyankore Kweterana Cooperative Union Limited, Masters dissertation, University of Dar es Salaam. Available at (