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

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.