Abstract:
This study analyzed the role of cooperatives in improving the livelihood of members on a
sustainable basis. The study was conducted to analyze the members' current livelihood status
and identify the role of cooperatives in enabling members to cope with the shocks and stresses in
the Haramaya district. To achieve this objective, it used both primary and secondary data.
Primary data were collected from 146 randomly selected households. For the data analysis, both
descriptive and econometrics analyses were used to describe the livelihood status and the roles
of cooperatives in the study area. The result of the study reveals that cooperatives are important
aspects of transforming structure within SLF, which increases access of members to livelihood
capital and enabled members to build a sustainable livelihood. Participation in cooperatives
allowed members to improve their agricultural production and productivity and cope with risks
and shocks. Lack of technical support from the government, inefficient management, lack of
commitment among the members is found to be among the problems that adversely affected the
healthy functioning of the cooperatives. Finally, for cooperatives to improve the livelihood of
members; the establishment of cooperative training Institution, the establishment of agricultural
cooperative fund enabling access to credit services, improving cooperative governance and
management are forwarded by the researcher as a recommendation.
