Member Ownership And Democratic Sustainability In Primary Agricultural Marketing Co-Operative Societies In Tanzania: A Case Study Of Bukoba And Moshi Districts

ABSTRACT

In Tanzania, member ownership in primary Agricultural Marketing Co-operative

Societies (AMCOS) is imperative to ensure democratic sustainability. Various efforts

have been made to ensure primary AMCOS are governed by democratic practices

which are based on member owned practices. But such democratic sustainability is

still far from being realised. The general objective of this study was to analyse

member ownership factors that influence AMCS practice in Tanzania to attain

democratic sustainability of these member owned institutions. The specific objectives

were to: examine members’ participation in decision making, examine the

accountability of the board and management to members, determine internal and

external interfaces which promote co-operative sustainability and determine

members’ views on factors for AMCOS sustainability. A cross-sectional design was

used whereby 400 AMCOS members were selected from ten primary AMCOS of

Bukoba and Moshi Districts from September 2015 to February 2016. The study used

primary data which were collected through a household survey, focus group

discussions and key informant interviews, while documentary review was utilized to

collect secondary data. The findings revealed that, on members’ participation in

decision making, members were found not fulfilling their membership legal

obligations, which conflicts with ownership status. The rights of members to engage

in decision making were found to be limited. About accountability of the board and

management to members, they were more accountable to the Union in Bukoba

District primary AMCOS as compared to Moshi District where they were more

accountable to members. The findings on AMCOS sustainability revealed that

understanding of the members on the roles of board and functions of managers was

low. Furthermore, members’ views on chances of democratic sustainability revealed

that the democratic sustainability would happen for years to come and AMCOS

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members had a good hope in their organisations. The study concludes that the

democratic practice systems that entail accountability in primary AMCOS are the

factors that make members to own their institutions. Also, the study concludes that

absence of managerial accountability to members guided by policies, laws and

regulations is an important component limiting members’ ownership of AMCOS;

these governing instruments are not adhered to by members, Boards, managers,

government and other co-operative stakeholders. Also, members’ views on projecting

democratic governance availability indicated a future hope for existence of a

sustainable AMCOS; the study concludes that employing tangible strategies for

primary AMCOS democratic sustainability is important in order to build existence of

sustainable member owned society. Among other things, the study recommends

education to be provided to members so that they can increase their level of

ownership capacities when participating in different decision making sessions. The

study also recommends that the democratic sustainability of primary AMCOS will be

achieved if members participate fully in creating solutions to their challenges and

become part of strategic implementation; this will increase co-operative society

ownership which is governed by members.