1. Background of the Study

There are many definitions of cooperatives but for the purpose of this research work. We define Cooperatives, I.C.A. (1995) as “An autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. While Babcolle, H. B. said “A corporative is a legal, practical means by which a group of self selected persons seek to improve their economic position in a competitive society”.

From the above definitions one would note that cooperative is a business organization established by the economically weak member of the society with the sole aim of improving their economic circumstances.

However economic development does not connote a general increased in the output of goods and services. It is a means of improving the condition of work and living standard of majority of the people. The main objectives that economic development should promote a greater sense of confidence and self-reliance in the economy. Thus economic development is therefore a process in which the problems of poverty, deprivation as well as human degradation is being eliminated or minimized. This means that economic development must seek to transform the society and its people to a better status. Hence this calls for a conscious effort on the part of the authority and people themselves.

The cooperative business was initially established to fight against profits and exploitation. It aimed at transferring economic power to the members who established the business. This is evidence by the fact that in developed countries likes Germany, Britain, Sweden, Norway, Denmark and Israel. The cooperative sectors played a vital role in socio economic transformation of their people.

Given these considerations therefore, the government as well as the general public are required and called upon to give support to the cooperative sector. This is necessary because the cooperatives could be able to improve the socio economic circumstances of the members and also reduce poverty in the society by creating employment and improving productivity. This paves ways for economic growth and development.

The idea of CABS Investment and Credit Cooperative Society (Ltd) Kaduna Polytechnic was initiated by Mr. J. J. Buden in May 2005. And by January 2006, the society was fully registered with Kaduna State Government certificate number KDS7030. Membership of the society was ninety-five (95) in December 2006, and rose to 195 members in May 2010. Previously the total assets valued at N10.925m but rose up to N47, 670,000 in June 2010.

CABS Investment and Credit Cooperative Society Ltd was established with the aim of advancing and protecting the common economic, social and cultural needs and aspiration of its members, with a specific mission of encouraging and promoting in its members the habits of saving and investment that would be beneficial to them even after their active services.

1. Statement of the Problem

The cooperative business was initially established to fight against profit and exploitation. It aimed at transferring economic power to its members who established the business. This is evidence by the fact that in developed countries like United State of America, Germany, Britain Sweden, Israel, Demark and Norway the cooperative sector played a vital role in socio economic transformation of their people. However, the cooperatives sector is not performing up to expectation in most under developed countries like Nigeria. This is the problem of this study.

1. Objectives of the Study
1. To find out the causes of the ineffectiveness of the cooperative sectors in developing the economy.
2. To examine the efficacy of the activities of the cooperative sector in developing the economy
3. To find out the problems that causes ineffectiveness of the cooperative sectors in developing the economy.
4. To provide solutions and suggestions to the problems that causes ineffectiveness of the cooperative sector in developing the economy.

1. Research Question
1. What are the causes of the ineffectiveness of the cooperative sector in developing the economy?
2. What is the efficacy of the activities of the cooperative sector in developing the economy?
3. What are the problems that cause ineffectiveness of the cooperative sector in developing the economy?
4. What are the solutions and suggestions to the problems that cause ineffectiveness of the cooperative sector in developing the economy.

1. Significance of the Study

This study examines the causes of the ineffectiveness of the cooperative sector in developing the economy.
The significance of a study of this magnitude cannot be overemphasized. The Government Cooperative Department, Cooperative Societies, business organization involved in cooperatives activities are well as students and other researchers will benefit from the findings of this research work.

The findings will serve as a basis for formulation and implementation of policies related to cooperative business for the Government Cooperative Department and other Organization that are involved in cooperative venture. Furthermore, members of the general public who are interested in cooperative will use the result of this study as a booster to the formation of new societies or becoming members of existing societies. It will also help members of cooperative society in decision making for the interest of their society.

Finally, this research work is of scholarly importance to students and other researchers in the same area of study and it will also serve as a spring board or reference material for other scholars in their own research work.

1. Scope and Delimitation

This study examines the causes of the ineffectiveness of cooperative sector in developing the economy. An examination of how the activity of the cooperative sector affects the development of the economy. The study equally covers an in-depth examination of the possible problems that causes the ineffectiveness of the cooperative sector. The study is restricted to KRPC Multipurpose Cooperative Society Ltd in Kaduna South local government and CABS Investment and Credit Cooperative Society Ltd Kaduna Polytechnic.

1.8    Definition of Terms
Aspiration:       Strong desire to have or do something.
Business:         The activity of buying and selling of goods and                              services.
Cooperative:    Working together with others toward a shared aim.
Credit:             An arrangement that you borrow money from some                       one.
Cultural:          The customs, norms, or belief of a particular group of persons.
Democracy:     A fair an equal treatment of every one in an                                  organization.
Development:  The gradual growth of something so that it becomes stronger and more advanced.
Economic:        The activity of trade, industry, and development of wealth of a country or society.
Enterprise:       A business or company.
Investment:     The act of buying property or share in order to make profit.
Members:        A person that belongs to a particular society or                              group.
Multipurpose:  Able to be use for several different purposes.