In developing countries the experience has been more mixed. One reason for failure has been the misuse of the cooperative concept for ideological or political purposes. This resulted in many poorly developed or unsustainable cooperatives being created. Some developing countries are still left with the remnants of these state-controlled “pseudo-cooperatives”. However, under the influence of current trends in market oriented reform, privatisation, decentralisation and participation, cooperatives are being rediscovered as a suitable organizational structure for farmers to improve their livelihoods. Agricultural cooperatives in which the members both participate and contribute can become powerful instruments for the development of the rural economy.

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