COOPERATIVES AND DEVELOPMENT IN TANZANIA

COOPERATIVES AND DEVELOPMENT IN TANZANIA

This booklet describes the main points of the Cooperative Development Policy1 and the laws2 and rules3 that have been written to put that policy into practice. It is designed to help communities make decisions about the development of their own cooperatives. Also, it will enable communities to talk to their elected representatives about how the government should adjust future laws and policies for cooperatives.

Ushirika Huru will extract and share with you this booklet in a special series. You are kindly requested to observe it deeply  as we keep on sharing the issues from this booklet  and give out your views by reflecting to the concerned  title mentioned above, "cooperative and development in Tanzania"

Part A

Cooperatives have been an important part of the development of Tanzania for 75 years. While they have seen many successes and failures during this period no other institution has brought so many people together for a common cause.

Following the Arusha Declaration, cooperatives became the main tool for building a spirit of self-reliance during the Ujamaa period. However, following the introduction of free markets, cooperatives have struggled to compete with the private sector and many have not been able to provide their members with services they need. The Government has responded to this problem by introducing a new Cooperative Development Policy (2002) to help cooperatives to regain their importance in the economic lives of the people.

A policy tells us how the government plans to facilitate the development of a particular area of the economy such as agriculture, education or cooperatives. While policies tell us what the government’s plans are, laws are needed to help put these plans into action. Laws require organisations such as cooperatives to behave in a democratic and business like way. Laws:

• Specify the rights and obligations of institutions and individuals.

• Describe the system of enforcement of order.

• Help the regulators and/or the courts to impose penalties where necessary.

Therefore laws provide stakeholders with rights and responsibilities. Policies simply give guidance on how stakeholders can be involved.

This booklet describes the main points of the Cooperative Development Policy1 and the laws2 and rules3 that have been written to put that policy into practice. It is designed to help communities make decisions about the development of their own cooperatives. Also, it will enable communities to talk to their elected representatives about how the government should adjust future laws and policies for cooperatives.

Who are stakeholders?

All those who have a part in a policy, including those who:

• Are affected by the policy

• Carry out the policy

• Give money to support the policy

COOPERATIVES AND DEVELOPMENT IN TANZANIA 1

THE COOPERATIVE DEVELOPMENT POLICY

What is a cooperative?

A co-operative is a group of people who work together voluntarily to meet their common economic, social, and cultural needs through a jointly owned and democratically controlled enterprise. Co-operatives are based on the values of self-help, self-responsibility, democracy, equality and solidarity. Co-operative members believe in honesty, openness, social responsibility and caring for others.

Why do we need a new policy for cooperatives?

The government and stakeholders needed new policy and laws for the development of cooperatives because:

• Many cooperatives have not prospered in the free market economy. As a result they have been less able to provide inputs, credit and crop marketing services to members.

• The government sees cooperatives as an important means to the achievement of development goals. People working together can solve problems that cannot be solved by individuals.

• Earlier laws and policies did not properly address some issues that are important to cooperatives working in the free market economy; such as the role of women, caring for the environment and the roles that different stakeholders should play in the development of cooperatives.

Private traders have not filled

the gaps left by the decline

of the cooperatives.

Therefore people should come together to provide services for

their communities