THE ROLE OF COOPERATIVES IN IMPROVING LIVELIHOOD OF MEMBERS ON A SUSTAINABLE BASIS: THE CASE OF HARAMAYA DISTRICT, OROMIA REGIONAL STATE, ETHIOPIA

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.