CHAPTER 1 :

The Concept and Meaning

of Development

COOPERATIVE DEVELOPMENT
COP3353
Chapter Overview

Definition of development
Characteristics of Development
Development of the social and
cooperative economy
Definition of Development
Meaning of Development

Development is not purely an economic

phenomenon but rather a multi-dimensional
process involving reorganization and
reorientation of entire economic AND
social system.
Development is process of improving the
quality of all human lives with three equally
important aspects. These are:
Aspect of Development

1. Raising peoples living levels, i.e. incomes

and consumption, levels of food, medical
services, education through relevant growth
processes
2. Creating conducive conditions to the
growth of peoples self-esteem through the
establishment of social, political and
economic systems and institutions which
promote human dignity and respect
3. Increasing peoples freedom to choose by
enlarging the range of their choice variables,
e.g. varieties of goods and services
Holistic Development Defined

Individual change that is, normative, non-

reversible, relatively stable, and sequential.
Normative process
Everyones doing it
Non-reversible
Reorganization of the entire person
Relatively stable
You cant go back,
Sequential change
Crawl before you walk
Alternative Interpretations of
Developement
Development as Economic Growth- too
often commodity output as opposed to
people is emphasized-measures of growth
in GNP.
Development as Modernization-
emphasizes process of social change which
is required to produce economic
advancement; examines changes in social,
psychological and political processes;
Alternative Interpretations of
Development
Development as Distributive Justice- view
development as improving basic needs
Interest in social justice which has raised
three issues:
1.Nature of goods and services provided by
governments
2. Matter of access of these public goods to
different social classes
3. How burden of development can be shared
among these classes
Development of the Social

Social development has been described as a

process of change from the traditional way
of living of rural communities to
progressive ways of living.

A method by which people can be assisted

to develop themselves on their own
capacities and resources.
Cont

Social development is more concerned with

the investment in human beings.
A unit of investment in education, health,
social welfare and others.
Social development aim at the total
development of people.
Social development is inter-sectoral, inter-
regional and inter-disciplinary and
visualizes institutional and structural
reforms to provide greater social justice.
The Concept of Social Development
The concept of social development is inclusive
of economic development but it emphasizes
the development of the society in totality that
is, in its economic, political, social and cultural
aspects.
In the broadest sense, it signifies all aspects
of development that are of collective nature
pertaining to the society as a whole.
In a narrower sense, it would be used with
reference to the human welfare aspects of
development which improving the quality of
life and more equitable distribution of
material and cultural goods.
 Hierarchy of Goals of Development

Full development of human

potentials and creativity Culture
Equity of distributive justice,
social equality, redistribution of Social-political
assets democracy
Higher growth with greater
equity, mass consciousness Socio-economic
Eradication of abject poverty and
unemployment- access to minimum
income and public services through
Basic minimum needs
employment with peoples participation
Goals of Social Development

To create a society where living conditions

of the people are better.
They do not suffer from hunger and they
are not denied the basic necessities of life.
To remove regional imbalance and rural-
urban disparities.
To create infrastructure where basic need
of the people are met at all levels, including
those who constitute the poorest and
deprived sections of society.
Characteristics of Development
Comprises of economic, social and political growth, expansion
and progress

Involves political liberation and freedom from past colonial

structures, so that countries can be free to carve own
destiny in international community

Development strategies should be people-centred and

structure-oriented

Development can be gauged from the extent of structural

changes - refers to long term and wide spread of
fundamental structure, rather than short term output and
employment
Cont

For example, a subsistence economy is transformed into

a manufacturing economy or a regulated mixed economy
is liberalised

From the Islamic perspective, development should

bring about benefits in totality to human and the
universe

Not go against the shariah/halal, meeting the

human needs, not for boasting and beneficial to all
parties
Cooperative as a Tool for Economic
Development

Cooperatives represent a strong, and viable

economic alternative.
Cooperatives are formed to meet peoples
mutual needs.
They are based on the powerful idea that
together, a group of people can achieve
goals that none of them could achieve
alone.
Cont

Cooperatives have been an effective way

for people to exert control over their
economic livelihoods.
Cooperatives provide a unique tool for
achieving one or more economic goals in an
increasingly competitive global economy.
Coops Do all Types of Economic
Activities
Financial Services
Retails
Insurance
Agricultural production & marketing
Industrial production
Housing
Transport
Travel
Types of Cooperatives

Credit Cooperative
Consumers Cooperative
Producers Cooperative
Marketing Cooperative
Service Cooperative
Multipurpose Cooperative
Workers Cooperative
Types of Cooperatives

Credit Cooperative
One which promote thrift among its
members and creates funds in order to
grant loan for productive and provident
purposes.
Consumers cooperative
One of the primary purpose of which is
to procure and distribute commodities to
members and non members
Types of Cooperatives

Producers Cooperative
one that undertakes joint production
whether agricultural or industrial
Marketing Cooperative
One which engages in the supply of
production inputs to members and
markets their products
Types of Cooperatives

Service Cooperative
One which engages in medical and dental
care, hospitalization, transportation,
insurance, housing, labor, electric light
and power, communication and other
services.
Multipurpose Cooperative
One which combines two or more of the
business activities of these different
types of cooperatives
Types of Cooperative

Workers Cooperative
A cooperative which creates work
through collective self-employment.
Cooperative and Economic Development

The establishment and growth of cooperatives

should be one important tool for economic
development
Cooperatives shall be established and play
important role in the economy as means of:
Helping to increase income and prosperity
especially for members and communities in
general
Helping to improve business effort, both
individuals and communities
Cont..

Role of cooperative in economic

development
Helping in providing job opportunities
Helping in improving peoples standards
of living.
Organizing economic life democratically
assist in the development of the
economic potential of members in
particular and in general.
Cont

Established the peoples economy as a

basic for strength and resilience of the
national economy.
Cooperatives can be the creators of new
markets and sources of innovation.
THANK YOU