Abstract
Many international aid agencies have been trying to utilize cooperatives as a strategic means for poverty reduction and rural community development in developing countries due to their characteristics, operational efficiency, and effectiveness. However, it is difficult to find a successful case due to various factors. This study tries to propose strategies that the aid agencies and local residents should use for the success of cooperatives in developing countries through an analysis of the success and failure cases of the two cooperatives established under the Saemaul ODA Program in Rwanda. While the length of the ODA program and scale of support significantly affect the cooperatives’ self-reliance, what support they receive from the aid agencies and whether it is a long-term support plan considering exit strategies are also important factors of their success. In addition to the support of the aid agencies, efforts of the cooperative members are essential. Cooperatives should reinforce their sense of ownership to achieve the long-term goals of self-reliance and sustainability by setting clear and feasible short-term goals and achieving them one by one through cooperation among members, as in the case of Korea’s Saemaul Undong.
Highlights
The paradigm shift from Millennium Development Goals (MDGs) to Sustainable Development Goals (SDGs) urges the strengthening of the ownership of developing countries; global partnership for effective development cooperation; participation of more diverse entities of the public, civil society, and the private sector; and sustainability of social, economic, and environmental development
Saemaul Undong (SMU), which was a national rural community development policy led by the Park Chung-hee government in South Korea in the 1970s, was the main driving force behind modernization and development of rural areas
SMU, which emphasized the dedication of the leader and voluntary participation of the residents based on the SMU spirit of diligence, self-help, and cooperation, aimed to build the capacity of villagers, improve the living environment of the villages, and increase income and sought the economic self-reliance of the community
Summary
The paradigm shift from Millennium Development Goals (MDGs) to Sustainable Development Goals (SDGs) urges the strengthening of the ownership of developing countries; global partnership for effective development cooperation; participation of more diverse entities of the public, civil society, and the private sector; and sustainability of social, economic, and environmental development. Cooperatives, inter alia, can play various roles in rural community development as an independent and authorized economic business model consisting of community members at the local, regional, national, and international level. This has led aid agencies to attempt to utilize cooperatives as a means of poverty reduction and economic development. Identifying the cause of failure and turning it into an opportunity for development by taking lessons from it are essential to increase the aid effectiveness Under this background, the study examined the success and failure factors of the two agricultural cooperatives and sought ways to enhance the effectiveness and sustainability of ODA projects using cooperatives
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