Dr. Goodluck Aletaulwa Mmari
Faculty of Business and Information Science,
Moshi Cooperative University, (MoCU)Tanzania.
Prof Kim Kayunze
Development Studies Institute,
Sokoine University of Agriculture(SUA), Tanzania.
CITATION: Mmari, A. G. & Kayunze, K. (2014). Contribution of CBOs in Poverty Reduction among Their Members in Tanzania: Empirical Evidence from Hai District. European Journal of Business Management, 2(1), 173-189.
CBOs are voluntary, non-profit and non-governmental organisations that are set up by collective efforts of local people for their own development. There has been mushrooming of these organisations in Tanzania since the second half of 1980s after the implementation of structural adjustment policies. Despite a large volume of literature in the area of CBOs, little attention has been made towards assessing their contribution in reduction of poverty. The aim of this study therefore was to assess contribution of CBOs in reduction of poverty among their members in Tanzania with special emphasis from Hai District. The study was guided by the Community action model theory by Freire (1973). A case study design was adopted because of its advantages in studying more than one case deeply. Hai District was selected as the study area because it had large number of the CBOs. A sample size of 130 respondents was selected. Simple random sampling technique was applied in selecting the CBOs and the main respondents. On the other hand, purposive sampling technique was applied in selecting both the study area and the key informants. Data for the study were collected using observation, interviews (both structured and unstructured), focused group discussions and documentary reviews. Both qualitative and quantitative techniques were applied in analyzing data for this study as they were found to complement each other. Status of poverty among members of the CBOs was measured using MPI. Following were the major conclusions drowned from the study: that a significant number of members of the CBOs were still MPI poor; Sources of capital for members of the CBOs were both from the SACCOS and CBOs; Incomes of members increased significantly after joining the CBOs; and the CBOs were found to contribute significantly in reduction of poverty among their members by urging them to establish economic activities and looking for markets of their produces.
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