Cooperative Model as Organizational Mechanism for Poverty Reduction and Economic Development

Introduction

Different players in fighting poverty such as the United Nations (UN), the International Labour Organization (ILO), the International Co-operative Alliance (ICA) and the European Union (EU) recognize co-operatives as an organizational mechanism for poverty reduction and are firm supporters of the formation of agricultural co-operatives especially in developing countries. Namibia is listed as one of the countries where an unequal distribution of income and wealth is very high. The high unequal distribution of income in Namibia is associated with colonialism. The unequal distribution of income is also affected by the implementation of the policies and programmes aimed at strengthening the development of the country. Poverty reduction is one of the most important goals of the Republic of Namibia. This is well articulated in the government guiding documents such as The Harambee Prosperity Plan, The Fourth National Development Plan (NDP4) and Vision 2030. Goal 7 in the Harambee Prosperity Plan, targets zero deaths due to hunger. This document also complements the long-term goal of The Fourth National Development Plan (NDP4) and Vision 2030 of the government of the Republic of Namibia. These documents recognise the role of various sectors in contributing towards poverty reduction. Specifically, one of the principles under Section 1 of The Fourth National Development Plan (NDP4) is a people centred economic development. This will be achieved by emphasising on the welfare of the people and human development. In turn, this is likely to expand the co-operative sector, modernise the agricultural sector, and create an enabling macroeconomic and political environment.

Moreover, rural development and cooperative movement has certain implications in terms of addressing socio-economic challenges in Africa and still upholding the cooperative ideals, principles, and value (Tshishonga, 2020). Thus, agricultural co-operatives also will help farmers to pool resources together and thereby strengthen and increase the agricultural output. Agricultural co-operatives greatly contribute to poverty reduction by offering an inclusive and democratic avenue for economic growth (Ruete, 2014). Boyana and Tshuma (2013) indicate that agricultural co-operative models provide a better chance for individual farmers to get support from the government and the stakeholders involved in the development of co-operatives. As a result, this improves the sustainability of agricultural co-operatives. Consequently, some governments have intensified the formation of agricultural co-operatives as a vehicle in their economic development and poverty reduction efforts (Ifekwe, 2012). These calls from governments to organize cooperative structures among farmers seem justified and merit a high priority on agricultural policy agendas in many emerging economies (Houessou, Sonneveld, Aoudji, Thoto, Dossou, Snelder ... & De Cock Buning, (2019). So is it in Namibia and although principles of cooperative structures exist, there is no blueprint available that indicates make a success of agricultural cooperation and co-operatives.