Social capital, governance and performance of Ethiopian coffee cooperatives
SourceAnnals of Public and Cooperative Economics = Annales de l'Economie Publique, Sociale et Cooperative, 83, 4, (2012), pp. 463-484
Article / Letter to editor
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SW OZ RSCR CAOS
Annals of Public and Cooperative Economics = Annales de l'Economie Publique, Sociale et Cooperative
SubjectAnthropology and Development Studies
The performance of agrarian cooperatives strongly depends on the interaction between internal cohesion and external exchange. Empirical assessments of social capital and trust within cooperatives suggest that market involvement could enhance collective action. This relationship may not hold, however, under circumstances of heterogeneous membership and strong state control. We use field data from a comparative sample of 500 coffee farmers belonging to five cooperatives of Sidama Cooperative Union, Ethiopia to outline how differences in economic performance are related to the structure of social networks. We identify clear trade-offs between bonding and bridging social capital that favour remotely located cooperatives.
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