International NGO Journal Vol. 4 (5), pp. 236-252, May 2009 Available online at http:// www.academicjournals.org/INGOJ ISSN 1993–8225 © 2009 Academic Journals Article The role of community based organisations in economic development in Nigeria: The case of Oshogbo, Osun state, Nigeria. Albert Ayorinde Abegunde Department of Urban and Regional Planning, Faculty of Environmental Sciences, Obafemi Awolowo University, Ile Ife, Nigeria. E-mail: [email protected]. Accepted 15 April, 2009 The study assesses the role of community based organizations (CBOs) in economic development of Osogbo, Nigeria. This is with a view to establish the economic impact of CBOs on local economy and their significance in national economic development. It uses primary data collected from all the heads of 140 CBOs that have registered with the 2 local government councils in the study area as at the time of this study. Both descriptive and inferential analytical techniques are used to analyse data collected nΣxy − (Σx)(Σy) on the study. Specifically, correlation co-efficient with formular r = 2 is nΣx2 − (Σx)2 nΣy 2 − (Σy) used to establish relationships between capital bases of the CBOs and the number of members (10,788 people) and amount that each CBO could loan to members respectively. Research shows that most of the CBOs came into existence more than a decade ago (81.3%) and source for funds from their members (100%). About half (44%) of these CBOs give out loan to members. Findings on correlation co- efficient existing between capital bases of the CBOs and the number of members (10,788 people) and amount that each CBO could loan to members are 0.67 and 0.52 respectively. This indicate that despite that more than half (56.7%) of them do not loan out to members; they have the ability to loan out and by this could cushion the effect of poor economy on and speed socio economic development of residents in the study area. The study shows that CBOs could act as vehicles toward sustainable socio economic and physical developments of communities in developing nations. Key words: Socio-economic, development, community based organization, planning, government. INTRODUCTION Poor performance of government in meeting the socio- lagging regions (Perroux, 1955; Abegunde, 2003). Be- economic quests of citizens has been identified as one of sides, Agbola (2002) noted that successive Nigerian go- the reasons behind the proliferation of community based vernments have responded to both rural and urban pro- organizations (CBOs) in the new millennium. Along this blems by evolving poverty alleviation programmes to help line, Wahab (2000) observed that people in developing stir development simultaneously at the grassroots. These nations have until recently looked up to their govern- programmes include the national directorate of employ- ments to meet their basic socio-economic demands. Of a ment (NDE), community banks, directorate of foods and truth, governments in African nations have evolved both rural roads infrastructure, better life for rural women, top-down and bottom-up approaches to achieve sustain- national poverty alleviation programme (NAPEP) among able development of their people. These include esta- others. blishment of lead industries at key centers so as to create The failure of governments’ top-down approach and job opportunities, provide basic infrastructure and utilize lack of involvement of the people at the grassroots in the regional natural and man-made resources to stimulate bottom-up strategy have weakened the confidence of the growth and economic development that would spread to public in central authorities. Communities therefore seek Abegunde 237 solace in indigenous institutions, which pressurize go- members’ contributions to the associations are shared vernment for attention to development problems in their accordingly with fairness. They are concerned with the communities and/or undertake development programmes development problems of and development programme and projects that they observe that are very needful in projects in their various areas (Esman and Upholt, 1984; their immediate communities. The indigenous organiza- Bralton, 1990). They respond to community felt needs ra- tions are associated with self-help (Ogundipe, 2003). ther than market demand or pressure. They constitute the media for resources mobilization to Distinction has been made between community based confront local challenges. These include the finance and organisations (CBO) and non-governmental organization execution of projects, lobbying and nomination of repre- (NGO) (CASSAD, 1992; Agbola, 1998). However, both sentatives to government offices to air their views and scholars agreed that CBO and NGO have common attri- press their needs and developing of human resources butes and their difference is a matter of “scale and loca- against future developmental needs of their immediate tion”. According to them, CBO suggests a simple institu- communities. Thus, their impacts have been felt in the tion that covers a relatively small area with local identity areas of economic development, policy matters, health while NGO has a sophisticated and complex structure and infrastructure, environmental and physical develop- and covers a wider area and project. From the example ment among others (Agbola, 1998; Akinola, 2000; Akin- made by one of them, the rotary international qualifies as bode, 1974; Onibokun and Faniran, 1995). NGO but the rotary club of a community qualifies as Despite these accomplishments, many CBOs have CBO. In essence, community development is the es- rose and fell like old empires while some have had no sence of CBO. Through community development, efforts significant impact since their establishment due to poor of the people are united with those of government autho- funding. This is more so because CBOs in African com- rities to improve the economic, social and cultural condi- munities are micro-systems within the macro environment tions of communities, so as to integrate them into the life that is afflicted by economic regression, poverty and low of the nations and to enable their people to contribute ful- standard of living. There is therefore the need to appraise ly to national progress (United Nations, 1963). Along this the socio-economic status of existing CBOs in the com- line, Fakoya (1984) argued that community development munities of developing nations like Nigeria and identify provides avenue for people to organize themselves for the degree of impact they have exerted on their physical planning action, define their common and individual environments. needs and problems, make group and individual plans to meet their needs and solve their problems, execute these The concept of community based organisations plans with a maximum reliance upon community resou- (cbos) rces and supplement these resources when necessary with services and materials from government and non-go- Community based organizations otherwise known as lo- vernmental agencies outside their communities. In the cal organizations have been given different names in dif- same vein, Bamidele (1994) saw it as a process whereby ferent places. These include ‘community development as- both urban and rural communities are assisted to provide sociations’, ‘neighbourhood councils’ and united commu- for themselves, with deliberate and conscious speed, nity among others (Biddle and Biddle, 1968; Agbola, those services and amenities they need but which neither 1998). the state government nor local government can provide. Community based organizations are set up by collec- Significant in these is that community development is first tive efforts of indigenous people of homo or heteroge- the joint efforts of the people who would be the direct neous attributes but living or working within the same en- beneficiaries before government and non governmental vironment. Their coming together creates conditions organizations that could be termed initiators and sup- which broaden the base of self governance and diffusion porters are involved and absorbed. The degree of invol- of power through a wider circle of the population (Ade- vement of the former therefore determines the level of yemo, 2002; Adejumobi, 1991). It is seen as voluntary, development in any given area. In another dimension, non-profit, non-governmental and highly localized or community development is not real until there is indivi- neighbourhood institutions whose membership is placed dual’s participation. Participation therefore embraces the on equal level and whose main goal is the improvement initiators, supporters and the beneficiaries of any given of the social and economic well being of every member development programme. According to Cary (1973), par- (Abegunde, 2004). ticipation means open, popular and broad involvement of CBOs are localized institutions in that their spheres of the people of the community in decisions that affect their influence hardly extend beyond their immediate commu- lives. nities or neighbourhood. They are non-profit and non-go- To participate therefore means to share in decisions vernmental because all members contribute economically about goals and objectives, about what should be done, towards the fulfillment of their responsibilities to the im- how and by whom. Participatory development is essential mediate environment and not depend on government be- for sustainable development programme. It is an empo- fore fulfilling these (Claudia, 2003). Benefits accrued from wering process which seeks to change behavior