Management and control of informal co-operatives in Tanzania: the case of Kilimanjaro region

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University of Dar es Salaam
This study aims at investigating the role of informal cooperatives in socio-economic development of the country, focusing on the management and control of rural informal cooperatives. Chapter one gives the background information, by tracing the origins of cooperation, the emergence of modern cooperatives and features of modern cooperatives in relation to informal cooperatives. Then we look at conceptual and theoretical issues related to the problem and discuss the methodology used. Chapter two portrays a general profile of informal activities in Tanzania, first by pointing out definitional variations and views on the concept; then their importance in the economy and factors influencing their recent upsurge. We argue that these activities form the "Third Economy" in Tanzania, which complements the official economy because they have a positive socio-political significance, as opposed to the "Second Economy" which is not only informal, but also illegal, competing exploitatively with the formal sector. Chapter three is the analysis of our findings. It exposes the regional distribution of informal cooperatives, reasons for their establishment, classification criteria and their management characteristics. It was found that most of them were formed as a survival strategy when the economy began to recede in the early 1980s. One of the main bottlenecks hampering their development is the poor system of financial management and control. Chapter four gives our conclusion and recommendations. We conclude that informal activities, including informal cooperatives, seem to continue growing instead of dying away as formerly assumed; and there is a link between informal sector employment and poverty. Informal cooperatives are the main labour "sponges". So we recommend, among other things, that well-targeted programmes of support to the sector are greatly needed from the government, NGO's and all other interested parties.
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Management, Co-operatives, Kilimanjaro region, Tanzania, Tanzania
atemu, F.C (1993) Management and control of informal co-operatives in Tanzania: the case of Kilimanjaro region, masters dissertation, University of Dar es Salaam. Available at (