2.3 SUSTAINABLE DEVELOPMENT
Sustainable development rose to significant importance after it was used by the Brundtland Commission in 1987 report “our common futureâ€, in the report the commission coined what has become the most often-quoted definitions of sustainable development which opined that sustainable development is that development that meets all the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development concept is based on the assumption that societies need to manage three types of capital (economic, social and natural) which may be non-substitutable and whose consumption might be irreversible (Daly 1991). Sustainable development is seen as an organized principle for human life on a finite planet. It posit a desirable future state for human societies in which living conditions and resource- use meet human needs without undermining the sustainability of natural system and the environment so that future generations may also meet their needs. This concept tied together concern for the carrying capacity of natural system with the social and economic challenges faced by humanity; it was employed in the 70’s to describe an economy in equilibrium with basic ecological support systems. This concept “sustainable development†can as well be broken into three constituent domain such as environment sustainability, social sustainability and economic sustainability which required a growth in the gross domestic product that involves improvement in the quality of life for many but particularly for the affluent. During the last few years, successive government have tried to measure and monitor the proximity to what they consider sustainability by implement various policies and programs such as SURE-P, NEEDS,SMEDAN, Green revolution, Millennium development goals, Vision 2010 as well as Vision 2020 just to defined Sustainable development in the context of poverty reduction. In the light of these, the paper intends to adopt a theoretical explanation of views of various authorities in expressing the relationship that exist between cooperative societies, poverty reduction and sustainable economic development.
2.3.1 COOPERATIVE SOCIETIES, POVERTY REDUCTION AND SUSTAINABLE NATIONAL DEVELOPMENT
In other to reduce poverty levels in most developing nations over the years, various schools of thought have advocated a number of measures starting from the era of mercantilists with emphasis on foreign trade as a vehicle for economic growth and poverty reduction, to pro-poor growth approach, forced-drift theory, classical economists theory lead by Adams Smith up to basic needs and entitlement approaches as well as community self-help, good governance and human right approaches of 1980s to 2000s. The theoretical framework of this paper is anchor on income redistribution approaches which advocated re-distribution of income and emphasis that poverty can better be reduced if radical redistribution of income is allowed to take place in view of the interlocking power and self –interest of the rich and the bureaucracy in the handling of each nation resources Chenery, Ahluwalia, Bell, Dulloy & Jolly (1974). This were done to address the inadequacy in the policymakers response to the growing level of poverty and unemployment with a desire to provide relevant solution to the problems associated with poverty in the land. In Nigeria, governments at different levels and various other agencies of concern have adopted various strategies at one point or the other so as to reduce this menace and enhance sustainable national development without much result which necessitated them to look for a more community base approach as cooperative societies that can tackle all dimensions of poverty. Findings from previous authors base on their research studies have also showed that cooperatives is a viable mechanism that can aliemeorate the effect of this socio-economic vices called poverty in most African counties and beyond. Oseni, Ogunniyi & Sanni (2012) exalted that, although members might join cooperative for various reasons but the major desire is to get cheap loans and capital that can be invested in the acquisition of fixed assets as savings for the rainy day. Karlyle (2005) also concluded that a well developed cooperative model of economy with ranges of potentials can offers required direction for humanity and the challenges of natural, economic and community integration could well be mastered. This will go a long way in engaging ourselves in building a long lasting, endurable attainable future for our children and grandchildren that made up the society at large. Ihenacho, Chikaire, Ejiogu-Okereke, Oguegbuchulam, Osuagwu and Obi (2012) also concluded in their studies that; job creation, facilitation of financial services, educational support, labor exchange as well as mutual aids are the fundamental poverty reduction and sustainable national development strategies of major cooperative societies in most African countries like Nigeria and therefore encourage the promotion of cooperative activities vigorously. The need to expand educational services in all aspect of cooperative management and the desire to protect the investment of the citizenry couple with it relevance’s to socio-economic development of the state prompted Lagos State government to established cooperative college in Agege area of the state to cater and provide a short – duration capacity building intervention to officials of cooperative societies in the state metropolis (Lagos State Ministry of Agriculture and Cooperative, 2013). All these pointed to the fact that cooperative is a poverty reduction mechanism suitable for delivering a sustainable results if well-articulated. Olaleye (2007) also posited that for proper effectiveness and efficiency, poverty reduction strategies of cooperatives need to be annexed so as to remain focus on provision of financial support, loans which can further be redistributed among the members. Izekor and Alufohai (2010) are of the opinion that well organized cooperative societies is found to be effective credit delivery, Tar, (2008) also believed on research that cooperatives generate substantial employment directly while they also empowered to own business with a multiplier effect on country economy growth and poverty reduction. Otto and Ukpere (2011) are also of the opinion that cooperative societies encourage members in the area of capital formation for investment purposes and poverty reduction strategy. Oki (2008) is of the view that cooperative societies should move away from mere contribution and lending of money to members to that of creating returns through engagement in business activities to compliment their effort in sustaining growth and poverty reduction. Shekari (2012) posited that many household who are cooperative members earned and live below poverty line in both public and private sector have their deduction carried out by the employers at source from the salaries which ensure prompt deduction and loan disbursement to members as needed. Dogarawa (2005) also posited that for cooperative societies to leave up to its expectation of viability and sustainability it must be run on two inter-related goals, such as economic viability and innovative enterprise so as to be effective in poverty reduction. While Adekunle and Henson (2007) were also of the opinion that entrepreneurial alertness is imbibe in the consciousness of members as soon as they become members which go a long way to give social protection to the members. Nweze and Onuoha (2001) also emphasis in their studies that government should be less hostile to cooperatives but supportive to its operation by eliminating operational policies that might be inimical to the operation in order to emphasis poverty reduction. Allahdadi (2011) also posited in his study that cooperatives provided the opportunity for the poor to raise their income and made significant contribution to poverty reduction strategy in Marvdasht Iran. Major roles and potential of cooperatives societies were also examine and concluded to include; enhancing access to market and capturing more of the value chain, assisting in getting better deal at various stages of production and distribution, contributing significantly to the mobilization and distribution of financial capital by creating employment and income generating opportunities which ultimately bring about poverty reduction (DFID 2010, Wanyama, Develtere, & Pollet 2008, Simmons & Birchall 2008). Fafchamps & Minten (2002) also emphasis in their studies that cooperative societies create social capital among the members at a greater rate than among shareholders of investor – owned firms and the amount of social capital within the organization theoretically will enhance economic efficiency and enhance long term success with monumental impact on poverty reduction. All these posited to the fact that well articulated cooperative societies runs on the basis of the world acclaimed Rochalde principles provide veritable opportunities to members of the societies which significantly results in alleviating their poverty levels and enhancing national development correspondently
