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A Strategy for Sustainable Development of Cooperatives in Developing Countries: The Success and Failure Case of Agricultural Cooperatives in Musambira Sector, Rwanda

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  • Sunghye Moon

    (Department of Food and Resource Economics, Yeungnam University Graduate School, Gyeongsan 38541, Korea)

  • Sang-ho Lee

    (Department of Food Economics and Service, Yeungnam University, Gyeongsan 38541, Korea)

Abstract

Many international aid agencies have been trying to utilize cooperatives as a strategic means for poverty reduction and rural community development in developing countries due to their characteristics, operational efficiency, and effectiveness. However, it is difficult to find a successful case due to various factors. This study tries to propose strategies that the aid agencies and local residents should use for the success of cooperatives in developing countries through an analysis of the success and failure cases of the two cooperatives established under the Saemaul ODA Program in Rwanda. While the length of the ODA program and scale of support significantly affect the cooperatives’ self-reliance, what support they receive from the aid agencies and whether it is a long-term support plan considering exit strategies are also important factors of their success. In addition to the support of the aid agencies, efforts of the cooperative members are essential. Cooperatives should reinforce their sense of ownership to achieve the long-term goals of self-reliance and sustainability by setting clear and feasible short-term goals and achieving them one by one through cooperation among members, as in the case of Korea’s Saemaul Undong.

Suggested Citation

  • Sunghye Moon & Sang-ho Lee, 2020. "A Strategy for Sustainable Development of Cooperatives in Developing Countries: The Success and Failure Case of Agricultural Cooperatives in Musambira Sector, Rwanda," Sustainability, MDPI, vol. 12(20), pages 1-24, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8632-:d:430850
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    References listed on IDEAS

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    2. Garnevska, Elena & Liu, Guozhong & Shadbolt, Nicola M., 2011. "Factors for Successful Development of Farmer cooperatives in Northwest China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(4), pages 1-16, November.
    3. Staatz, John M., 1989. "Farmer Cooperative Theory: Recent Developments," Research Reports 52017, United States Department of Agriculture, Rural Development.
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    2. Huma Neupane & Krishna P. Paudel & Qinying He, 2023. "Impact of cooperative membership on market performance of Nepali goat farmers," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 805-830, September.
    3. Min Liu & Jinxiu Yang & Guoquan Zheng & Ping Shang & Yipei Li, 2023. "External Factors Facilitating Quality Certification of Agricultural Products in China: Insights from Cooperatives in the Sichuan Province," Agriculture, MDPI, vol. 13(5), pages 1-15, May.
    4. Denise Díaz de León & Omar Díaz Fragoso & Igor Rivera & Gibrán Rivera, 2021. "Cooperatives of Mexico: Their Social Benefits and Their Contribution to Meeting the Sustainable Development Goals," Social Sciences, MDPI, vol. 10(5), pages 1-19, April.
    5. Samal Kaliyeva & Francisco Jose Areal & Yiorgos Gadanakis, 2021. "Would Kazakh Citizens Support a Milk Co-Operative System?," Agriculture, MDPI, vol. 11(7), pages 1-19, July.
    6. Mikhail Miklyaev & Glenn Jenkins & David Shobowale, 2020. "Sustainability of Agricultural Crop Policies in Rwanda: An Integrated Cost–Benefit Analysis," Sustainability, MDPI, vol. 13(1), pages 1-21, December.

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