2.2.6. Traditional cooperatives in Ethiopia
Ethiopia is known as a country with diversified nationalities. There are three well-known forms of traditional cooperatives. These are Ekub, Idir and Dabo. The system of living requires cooperation, and that is why people work in-group, habits of mailing commonly and living together in the nearby villages. Even though their system of organizing and work division are sometimes based on gender and age, the contribution they made towards development has been greater. In general, the three traditional forms of association, which are valuable customs of our society, should be transformed in to modern form of cooperatives so that they can contribute to the economic and social development of the nation
2.2.7. Cooperatives during the Regime of Haile Selassie (1961 -1974 G.C.)…show more content… In 1961, the first legislative, called ‘Farm Workers Cooperative Society Bureau’ was introduced for the establishment of modern cooperative society. After the completion of the first five years of economic plan, the second five years plan was drafted. Based on this plan, the government paid a due attention to the establishment of the second cooperative. As a result the Second Cooperative Proclamation of number 241/1966 was declared to reduce interest cost on any loan given to cooperative society and to share any losses and damages among members. In general, the movement of cooperatives during this period was not successful because the cooperatives mainly focused on high value crops growing areas. The requirement of land ownership to be a member of cooperatives and the lack of participation of educated manpower in implementing cooperative laws and policies were the main causes for the failure of cooperatives to