A Framework for Strengthening and Sustaining Cooperatives for Socio-Economic Transformation in Uganda

Abstract

The importance of cooperatives as an appropriate mechanism to address productivity challenges and drive Uganda’s economy for socio-economic transformation is commonly advanced. However, the discussion and efforts on how this should be achieved are weak. Efforts that have been undertaken by the Government, Private players, Civil Society and Development Partners have not yielded much to unlock the potential of the cooperatives in fostering development, enhancing production, productivity, and socio-economic transformation. This is attributed to weaknesses of the prerequisites necessary for the vibrancy of cooperatives namely the: culture of cooperation and trust among cooperators; legal, policy, and regulatory framework for cooperatives; cooperatives’ enabling institutions; prevailing socio-economic environment; and the political economy. This paper uses a multi-dimensional methodology that includes learning from literature; case study analysis; expert-focused interviews; field studies, and; survey questionnaire administration of various types of cooperatives. To this end, the paper defines a framework under which Uganda should strengthen and sustainably regulate its cooperative movement to unlock its potential to drive its socio-economic transformation. In particular, a novel cooperatives’ viability condition in a liberalized market is developed.