A critical analysis of the role of cooperatives in enhancing the socio-economic developments of Chris Hani District Municipality

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Stellenbosch : Stellenbosch University
ENGLISH ABSTRACT: The inclusion of cooperatives in the country’s major development frameworks is a declaration of the government’s confidence in their ability to enhance socio-economic development. Given the conviction, this study was conducted primarily to establish the extent to which cooperatives have enhanced the socio-economic development of poor communities; also to analyse the role of legislation in developing cooperatives; to identify factors that facilitate or impede the development of cooperatives, and lastly; to formulate a framework that can improve the functionality and sustainability of cooperatives. The Chris Hani District Municipality (CHDM) was used as the research site from which a diverse sample of 254 purposively selected state officials, cooperative members, and community members was assembled. Data from the sample was collected by focus groups and in-depth individual interviews. Effectively, the study has used data triangulation in the collection of data and interpretivist thematic content analysis to analyse it. The findings of the study established that cooperatives indeed contribute to socio-economic development. Poor communities use cooperatives for job creation, income generation, poverty alleviation, food security, crime reduction, and community empowerment. Apart from this positive finding, the study has also revealed that the legislation specifically promulgated to support cooperative development is poorly implemented. State institutions meant to implement these laws are reluctant to do so. Moreover, the study has identified a myriad of factors that impede the performance of cooperatives in socio-economic development. Together with poor implementation of the legislation, these factors debilitate the performance of cooperatives and result to their underdevelopment. Overall, this study has established that poor state support is the major factor that hinders the performance of cooperatives in socio-economic development. Based on this finding, the research recommends a comprehensive and integrated support programme as the conceptual framework by which state support should be provided to cooperatives to improve their performance in socio-economic development.
AFRIKAANSE OPSOMMING: Die insluiting van koöperatiewe maatskappye in die land se oorhoofse ontwikkelingsraamwerke is ’n verklaring van die regering se vertroue in hul vermoë om sosio-ekonomiese ontwikkeling aan te moedig. Gegewe hierdie vertroue, was hierdie studie hoofsaaklik uitgevoer om te bepaal tot watter mate koöperatiewe maatskappye die sosio-ekonomiese ontwikkeling van arm gemeenskappe bevorder, om die rol van wetgewing in die ontwikkeling van koöperatiewe maatskappye te ontleed, en, laastens, om ander faktore te identifiseer wat die ontwikkeling van koöperatiewe maatskappye bevorder of verhinder. Die Chris Hani-distriksmunisipaliteit was gebruik as die navorsingsligging, vanwaar ’n diverse steekproef van 254 doelbewus-geselekteerde staatsamptenare, lede van koöperatiewe maatskappye, en gemeenskapslede getrek is. Die steekproef se data is versamel deur middel van fokusgroepe en omvattende onafhanklike onderhoude. Die studie het gebruik gemaak van data-triangulering om data en tematiese inhoud te versamel en te ontleed. Die studie het bevind dat koöperatiewe maatskappye inderdaad bydra tot sosio-ekonomiese ontwikkeling. Arm gemeenskappe gebruik koöperatiewe gemeenskappe vir werkskepping, die skepping van inkomste, voedselsekuriteit, die vermindering van misdaad, en die bemagtiging van die gemeenskap. Buiten hierdie positiewe bevindinge, het die studie bevind dat die wetgewing wat spesifiek ingestel is om die ontwikkeling van koöperatiewe maatskappye te ondersteun, swak geïmplementeer word deur staatsinstellings. Die studie het ook menige faktore geïdentifiseer wat die werkverrigting van koöperatiewe maatskappye in sosio-ekonomiese ontwikkeling verhinder. Tesame met die swak implementering van die wetgewing, verswak hierdie faktore die werkverrigting van koöperatiewe maatskappye en lei tot hul gebrekkige ontwikkeling. In die algemeen het hierdie studie bevestig dat swak ondersteuning deur die staat die hooffaktor is wat die werkverrigting van koöperatiewe maatskappye in sosio-ekonomiese ontwikkeling belemmer. Gebaseer op hierdie bevinding, stel die navorsing ’n omvattende en geïntegreerde ondersteuningsprogram voor as die konseptuele raamwerk waarvolgens staatsondersteuning verskaf moet word om die werkverrigting van koöperatiewe maatskappye in sosio-ekonomiese ontwikkeling te verbeter.
Stellenbosch University. Faculty of Military Sciences. School for Dept. of Defence Organisation and Research Management.
Socio-economic development -- Eastern Cape (South Africa), Chris Hani Districts Municipality -- Eastern Cape (South Africa), UCTD