GLOBALISATION AND CO-OPERATIVE DEVELOPMENT: CHALLENGES AND RESPONSES OF CO-OPERATIVES IN DEVELOPING ECONOMIES
Publication Date : 01/07/2005
Co-operatives as business units cannot avoid themselves from competitive environment that will determine their survival. Co-operatives in LDCs by virtue of their nature of businesses have the tendency of depending some form of assistances from government. In the face of globalisation and liberalisation, it is inevitable that stiff competition from other form of businesses will have to be faced by co-operatives with or without the assistance of government. This situation makes it crucial for co-operatives to consider and adjust necessarily. The paper aims to discuss the effects of globalisation on co-operative development and the appropriate responses that co-operatives should undertake to ensure their survival. It is no longer suffice for co-operatives in LDCs to emphasise greatly on traditional realms such as micro credits, consumer, agriculture, and housing but to undertake strategic decisions in branching out to new areas of business propositions which are definitely a more competitive and a riskier but could also produce remunerative returns. What is more worrying is the encroachment of corporate giants in their traditional territory where the co-operatives are supposed to have an extra advantage such as credit. Thus, it is inevitable for co-operative to reevaluate their involvement in various types of businesses in line with the new business environment.
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