THE IMPACT OF RURAL SELF-HELP SAVING AND CREDIT COOPERATIVES IN IMPROVING THE SOCIOECONOMIC CONDITION OF RURAL WOMEN‘: THE CASE OF ARSI MUNESSA AREA

Abstract

In Ethiopia, 85 percent of the population depends on agriculture for livelihood. Many are smallholder farmers who lack modern inputs and market access. Rural agricultural self-help saving and credit cooperatives hold much potential to enable these economically weak farmers to increase their collective bargaining power and individual capacities and so enhance their incomes. They provide input services, create market opportunities, and help sell their members‘ products. In most developing countries, female farmers—who contribute tremendously to the agricultural sector—are marginalized from participating and benefiting from such groups compared to men. In Ethiopia, women represent only 20 percent of cooperative membership and even fewer are found in management positions. This paper uses dataset taken from 54 members of women 3 rural self-help saving and credit cooperatives. Using descriptive statistics and econometric analysis under a critical gender lens, the paper identifies the participation, the socio-economic benefits gained by women and their contribution for the improvement of household economy and life quality. The findings suggest that if there is access/enabling ground for women to participate in rural self-help saving and credit cooperatives, women have enormous roles in improving the economy of household and the country. Major barrier to women‘s access are gender biases within households, communities, and cooperatives themselves that favor male household heads and land owners over resource-poor women.