Research On Cambodian Agricultural Cooperatives Development Problems

Cambodia, one among many developing countries on the world, is located in the southern portion of the Indochina Peninsula in Southeast Asia and is a member of Association of Southeast Asian Nations(ASEAN). Agriculture is the mainstay of Cambodian economy. In 2012, agriculture contributed 37 percent to the GDP and employed about 67 percent of the workforce. On average,agricultural GDP growth in Cambodia has lagged behind the industrial and service sectors but maintained a sustained annual rate between 4 and 5 percent during the last decade. The country has experienced rapid economic growth since 1993, with an annual GDP growth of 7.3 percent in2012. The poverty rate has decreased by more than half since 2007, but one-fifth of the population is still living below the poverty line and income inequality has increased. Rice is a key commodity for exports. In 2013, Cambodia exported a record level of 1.2 million tonnes of rice, accounting for more than 3 percent of the total worldwide rice exports. The problem facing this sector is capital inadequate to collectively buy rice from farmers. As the result, after the harvesting, farmers have no choice but to sell rice to neighbor countries.As an important and precious system resource, cooperatives are enterprises and social communities, consisting of the allied less privileged, which aim to satisfy the requirements of the economy development and society. They are the necessary supplement to family management, the effect carrier and organization form of agricultural industrialization. Cooperatives can make agriculture better adapt to the international competition, making agricultural decision scientific and rationalization, ensuring the agricultural strategy operate smoothly. Cooperatives are the optimal media to educate farmers. Therefore, cooperatives can certainly guarantee and increase the interest of peasants, balancing the extremely poor and rich, maintaining social stability, improving the economic development. Hence it is extraordinary important and necessary to set up and develop agricultural cooperatives.This paper has four specific research objectives. The first objective is to introduce about Cambodia n agricultural cooperative law and the status quo of the agricultural cooperatives. The second is to analyze the role of agricultural cooperative in country’s agriculture and rural development. The third objective is to analyze the element affecting the development of agricultural cooperatives in Cambodia. Finally, is to put forward countermeasures for accelerating the development of agricultural cooperatives in Cambodia an policy recommendations.This paper is divided into six parts: the first part is the introduction. The second part is talking about basic theory of agricultural cooperative such as agricultural cooperative’s definition,characteristic, basic principle and function. The third is to research about current situation of Cambodian agriculture, Cambodian agricultural cooperative law, Cambodian agricultural cooperative distribution feature and its function. The fourth part is going to talk about problem in development of Cambodian agricultural cooperative and the cause. The fifth part is about Chinese agricultural cooperative developed model, supporting policy in Chinese agricultural cooperative and its inspiration for Cambodia. The sixth part is to suggest solution to the problem in Cambodian agricultural cooperative development.From the theoretical perspective, agricultural cooperatives have played an important role in food security and rural development. Agricultural cooperative’s potential need to be emphasized to deal with obstacle in the achievement of this organization structure. The cooperatives increase agricultural production and let farmers gain the production marketing, collective money, loan,insurance and technology. Agricultural cooperative not only connect farmers to market but also increase the food production. And for the practical point, the study is also a way to support development of agricultural cooperative by spreading the knowledge on this subject and has the important practical guiding significance. The fourth is through experiences learnt from developed country and developing country which is represented by the United States and China respectively,to enlighten Cambodian agricultural cooperatives development. The United States, based on agricultural machinery cooperatives and adhere to the land scale management; strengthen the position of agriculture as the foundation of the economy, and promote the integration of worker and peasants; the government should make appropriate support to the development of agricultural machinery cooperatives; improve the internal operation mechanism of agricultural machinery cooperatives, improve the level of social service. From China’s experiences, Cambodian should promote agricultural cooperative education and training; innovating production management way,improve the efficiency of agricultural production and the product added value; adhere to the cooperative principle on the basis of the perfection of the mechanism of interest distribution and guarantee; give full play of the role of government in the cooperatives development correctly. The fifth, this paper puts forward the following countermeasures and suggestions which are improve the efficiency of the agricultural cooperatives production and operation; raise the management level of member involved in agricultural cooperatives; again is to enhance agricultural cooperative ability to withstand natural risk and market risk; then is to establish communication with the government department; the last is the support from the government.