Cooperative development

The paper explains the usefulness of cooperatives as a development tool; describes their characteristics and principles (business purpose, voluntary membership, democratic control, and equity in distributing contributions and benefits), and cites the key factors affecting their development - government attitudes/policies, effective management, cultural norms, and market/economic viability. The paper explains the two categories under which A.I.D. supports cooperatives (AID/W support for U.S. cooperatives in their direct relationships with developing country cooperatives, and regional bureau/country program support for cooperatives within bilateral projects) and notes the forms of this assistance (e.g., technical assistance, training, capital formation); assistance which has a multiplier effect, e.g., to a cooperative federation, is preferred. AID-supported U.S. cooperative development organizations, it is noted, are able to give the specialized technical help which overseas cooperatives increasingly require.