EXAMINATION OF THE ROLE COOPERATION THRIFT AND CREDIT SOCIETIES
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
EXAMINATION OF THE ROLE COOPERATION THRIFT AND CREDIT SOCIETIES
Chapter one
2.0INTRODUCTION
The thrift and credit cooperative was created with the goal of raising the standard of living. The thrift and credit society was founded in Germany in 1818 under the leadership of Fredrick Ra’ffeisen, who is widely regarded as the father of modern cooperative thrift and credit societies.
Germany has always been regarded as the birthplace of credit cooperatives. At the time, Germany’s economic situation was deplorable, and the peasantry and artisans were crushed under the weight of debt. Famine was the norm.
The Jews ruled the market, and the poor labourers and farmers had no choice but to buy their necessities from them and sell their products to them.
The merchants were money lenders who charged exorbitant interest rates for the credit they extended and offered absurdly low prices for the produce they purchased.
With the peasantry’s hopeless life, Raiffeisen emerged to help them get out of debt and poverty, and as a result, they devised a plan for cooperative societies.
Prior to the advertisement of modern cooperative societies, thrift and credit societies served in urban areas, and the traditional mutual system was known and addressed by different names by various communities who practiced traditional forms of saving.
The Hausa call it “Adashe” “Bashi” in Nupe: “Asusu in Ogogo etoto in Ibibio etc.” Traditional cooperative systems elect leaders based solely on member agreement, whereas modern cooperatives.
In general, management committees are elected democratically, and every person running for any position must meet certain requirements, such as paying admission fees, making a share deposit, and being voted on by members.
Cooperative thrift and credit society are mainly found among the urban areas, low-income earners, government employees etc. and a good number splitter around is the urban area as well.
1.1 BACKGROUND OF THE STUDY
Thrift and credit Cooperative societies, like all other aspects of life, have its own set of issues. It is widely held that any organisation, regardless of size, has flaws that, if not detected and addressed, will inevitably lead to failure.
This philosophy includes cooperative thrift and credit. The fundamental goal of this project’s write-up is to identify and address these issues.
The project aims to highlight the obstacles to the organization’s growth, as well as to emphasise the organization’s goals and objectives; is it meeting expectations?
The problems are being highlighted analyzed and possible steps to be taken to alleviate the problems.
1.8HISTORICAL BACKGROUND OF THE AREA
Modern cooperative thrift and credit has been in existence in early 20’s 2004 to be precisely in orphanage mother multi purpose society. Before then, it was traditionally practiced, low-income earner, petty traders peasant farmers etc.
contribute money weekly or monthly, they rotates one after the other which serves as urban development area for its members, and then people have difficulties to secure loan for its members from any financial institution due to the fact that mostly are low income earners, urban areas etc where they have no collateral for security while they normally requested before giving people loan.
But with the establishment of orphanage mother multipurpose in that area, which was established to help people of limited means, which find it difficult to save and secure loan to better their socio economic, encourage, saving and also provide other services to the communities at reasonable rate of interest through application of self help and mutual help which is one of the guiding idea of cooperative.
But most of the people stated with drawing their membership, because they assumed that they only want to dupe and run away with the little money learned due to the fact that the time of establishment there was no emphasis on expansion and diversification of cooperatives thrift and credit in their development plan and there was nobody to educated and enlighten the people about, their aim and objective.
So people where complaining that they cannot meet up their needs as a result of non provision of loan for as a whole, lack of proper book keeping and auditing which is due to unskilled personnel, lack of adequate capital and lastly there is also dishonesty and competition among committee members and government which lead to the collapsed of the thrift and credit society.
Need help with a related project topic or New topic? Send Us Your Topic