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existing cooperative legislation, regulation, and its by-law; it is difficult for a cooperative to win the confidence and the support of its members (Oromya farmers development bureau, 1998). Due to the limited outreach of the commercial banking system and NGO-supported credit schemes, and the uncertainty surrounding the future of the input supply loan programme have galvanized the Government to establish a legal and policy framework conducive to the growth of Micro Finance Institutions (MFIs) and Rural Savings and Credit Cooperative Societies (RUSACCOs) in rural Ethiopia. Since Proclamation 40/1996, 19 MFIs have been licensed by the National Bank of Ethiopia (NBE). Over the last four years, the microfinance industry has recorded remarkable growth, with a network of about 500 branches and sub-branches, an outstanding loan portfolio of about USD 33.5 million, net savings of about USD 16 million, and expanded outreach to nearly 500 000 poor rural households. Over 40% of the industry’s clients are women. Overall the financial performance of the sector has been good, with operational viability averaging 135% over the past three years. Despite rapid growth, however, the overall outreach as of 31 December 2000 represented less than 5% of rural households. Ethiopians have a strong tradition of saving, which is evident from the widespread existence of informal rotating savings and credit organizations such as iqubs and iddirs. There is also a promising history in the country of successful savings and credit cooperatives in urban areas. Recent government policy and legal framework augur well for the development of politically independent RUSACCOs, owned and managed by their members. With agriculture remaining the backbone of Ethiopia’s economy, the provision of financial services is expected to have a substantial impact in activating the largely under-utilized productive potential in the rural areas. Financial analysis of a typical cross-section of investments in on-, off- and non-farm enterprises shows significantly high returns on investments in crop production, draught animal power, livestock fattening, bee-keeping, tailoring and petty trading (IFAD, 2001). Following this proper financial management is noteworthy for the success of the financial service to the poor. And the starting point for sound financial management is the timely and accurate production of financial reports, which requires punctual and accurate financial records. This begins with accounting: the process of recording financial transactions, grouping them together by category and summarizing them for a certain period or at a certain point in time. The summarized information of all these transactions is placed in standardized financial statements. Frequently, RUSACCOs must produce financial statements based on a format required by lenders, donors, local regulators, or network organizations. Such statements may satisfy reporting requirements of one or more of those groups, but the required format may not be helpful as a management tool. Despite efforts to create standard accounting practices or terminology, such as the International Financial Reporting Standards (IFRS) and the Financial Definitions Guidelines, few attempts to harmonize the content and presentation of financial statements have been made. Financial management presents financial management tools for analysis of the microfinance institutions and or (SACCOs) financial health. The financial statements created in the accounting part provide basic information on which financial analysis and management is based in finance management. International best practice for microfinance suggests that good financial system is the basis for successful and sustainable operations. Quality financial analysis depends on the quality of recorded information to be analyzed. This information comes largely from the accounting system, so accounting information is fundamental for financial analysis to gauge the financial health of SACCOs (AEMFI, 2008). 1.2 STATEMENT OF THE PROBLEM Traditionally, the role of finance was considered as passive in the development process in general and rural development in particular. However, it was recently recognized that rural finance is a strong tool to reduce poverty and contribute towards rural development. Despite the importance there are limited financial institutions delivering financial services in rural Ethiopia. As a result, the bulk of finance is coming from the informal financial service providers. Though, the informal sector is the major rural finance providers, the financing is only meant to address short term demand for finance such as www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 06, April-2013 Page 58
consumption during cash shortage and for other emergencies which neglects productive investment (Kalifa Abdula, 2006). Following the above problems rural savings and credit cooperative unions have: Inadequate capital base, Restrictive capital structure, Inadequate mix of financial products, Poor investment decision making (without sufficient research on possible success and impacts on members),Lack of observance of basic principles of banking and financial management, and RUSACCOs have also threats or challenges because of liberalization the cost of borrowing has become to prohibitive because of high borrowing, access to credit by RUSACCOs to other financial institution has become very limited and cost of living has shot up astronomically hence the members of the RUSACCOs cannot live comfortably without from their RUSACCOs this has created a high demand for the loan able funds whose supply is constant and since RUSACCOs easily meet this demand for loans members loyalty is at cross roads (Associates in Integrated Development (AFRICA) Limited, 2007). According to Berhane Kidanu (2008), RUSACCOs are operated and managed by elected committee members. Most committee members are illiterate, even who attend elementary school and high school lack the capacity to operate and manage efficiently. They lack basic knowledge and skill to perform the day- to day activities of SACCOs. Hence, it is difficult to assume an efficient performance, which meets the required standard in such condition. There is poor recording and book keeping. Besides, a lack of savings facilities creates problems at three levels: (i) the level of the individual; (ii) the level of the financial institution; and (iii) the level of the national economy. At the level of the individual, the lack of appropriate institutional savings facilities forces the individual to rely upon in-kind savings such as savings in the form of gold, animals or raw materials, or upon informal financial intermediaries, such as Rotating Savings and Credit Associations (ROSCAs) or money-keepers. These informal savings options, however, do not offer a combination of security of funds, ready access or liquidity, positive real return and convenience in order to meet the various needs of the particular saver. At the institutional level, RUSACCOs have micro product service windows on both sides of the balance sheet, serving micro and small savers and borrowers with an average savings balance or loan amount below the average per capita annual income in the respective countries. Yet the number of RUSACCOs that exclusively offer credit is much larger than RUSACCOs with both savings and credit facilities. Empirical studies have demonstrated that the performance records of credit-only RUSACCOs in outreach and sustainability have not been widely successful (Schmidt/Zeitinger, 1996; Christen et al. 1995, Yaron 1992). On the other hand, those RUSACCOs lacking effective savings mobilization strategies are unable to increase their outreach to a significant number of clients. In addition, few RUSACCOs that do not mobilize savings have attained full financial self-sufficiency, independently covering their expenses for operations, loan loss, cost of funds and inflation with their revenues. Throughout the world, RUSACCOs have often experienced that exclusively offering credit services can lead to undue dependency on external sources of financing. This dependency can cause the RUSACCOS to concentrate on the demands of the donors rather than on the demands of potential clients, especially potential savings clients. At the level of the national economy, high levels of savings increase the amount of national resources and decrease the need to resort to foreign indebtedness in order to cover domestic investment and consumption demand. Numerous countries with low internal savings rates must borrow from abroad, which results in a debt service burden. This clearly underlines the importance of savings mobilization to sustain economic growth with national financial resources (Elser, et.al 1999).The poor need sustainable access to financial services to be out of poverty. So before dealing further on the issue of ‘sustainability’, it would be prudent to investigate first the key issues that limit the expansion of the service. Why is there still low financial intermediation in Ethiopia, particularly in rural areas? www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 06, April-2013 Page 59
Page 2 and 3: Table of Contents Articles PERFORMA
Page 4 and 5: servicing, and the policies not mee
Page 6 and 7: The Self-Help Group members get inc
Page 8 and 9: Are female workers more productive
Page 10 and 11: For the purpose of including explan
Page 12 and 13: several different, competing logist
Page 14 and 15: Fisher, R.T. (2001), “Role stress
Page 16 and 17: A Comparative Study of NPA of State
Page 18 and 19: processes. Instead of fixing target
Page 20 and 21: Agriculture Crisis and Sustainable
Page 22 and 23: Table 1. World Cereal production ,
Page 24 and 25: Expanding biofuel production The ex
Page 26 and 27: percent of the world’s population
Page 28 and 29: OECD (Organisation for Economic Co-
Page 30 and 31: It can provide the earnings needed
Page 32 and 33: The incubator will also work toward
Page 34 and 35: factor. This is not an easy proposi
Page 36 and 37: ROLE OF LOCAL SELF GOVERNMENT IN LE
Page 38 and 39: During the last season red onion fa
Page 40 and 41: Table Mch2 Coef. Std. Err Z P>/Z/ A
Page 42 and 43: lack of capital. The local farmer o
Page 44 and 45: It may be seen that alleviation of
Page 46 and 47: Table - 2 Progress under Bharat Nir
Page 48 and 49: References Chandrasekhar, B P., et
Page 52 and 53: 1.3 THE RESEARCH QUESTIONS 1. What
Page 54 and 55: Table 2: Earnings and Cost Allocati
Page 56 and 57: have an adequate amount of capital
Page 58 and 59: programs and the union was doing on
Page 60 and 61: total assets to other key areas, it
Page 62 and 63: esponded by (7.6%) of the members.
Page 64 and 65: management; Gohe cooperatives savin
Page 66 and 67: Significance of asset quality of St
Page 68 and 69: iii) iv) Doubtful Assets:- a) Doubt
Page 70 and 71: atios and solvency ratios are taken
Page 72 and 73: Ratio of around 3% during 2007-08,
Page 74 and 75: sufficient to draw an inference in
Page 76 and 77: The observed R 2 and F statistics m
Page 78 and 79: Board Composition, Ownership Struct
Page 80 and 81: size as well. During our study it w
Page 82 and 83: standards prevailing in the country
Page 84 and 85: The procedure produces two tests of
Page 86 and 87: hoc test for pair wise comparisons
Page 88 and 89: e said that the board size affects
Page 90 and 91: high-tech small and medium-sized en
Page 92 and 93: Table no.8 - Multiple Comparisons T
Page 94 and 95: Abstract Corporate Social Responsib
Page 96 and 97: the participation of various level
Page 98 and 99: Supplier Relations As stakeholders
Page 100 and 101:
CSR initiatives of companies should
Page 102 and 103:
Corporate Social Responsibility Pra
Page 104 and 105:
2011, this district received surplu
Page 106 and 107:
In the case of marginal farmers and
Page 108 and 109:
Findings From the above analysis it
Page 110 and 111:
2. Innovation: Meaning and Dimensio
Page 112 and 113:
data appropriately. Inferences were
Page 114 and 115:
The regression analyses as shown in
Page 116 and 117:
Role of Self-help Group in Socio-ec
Page 118 and 119:
10% for women and men respectively
Page 120 and 121:
MoRD has been constantly reviewing
Page 122 and 123:
76.6% units were found to be existi
Page 124 and 125:
10.Timely release of adequate loans
Page 126 and 127:
Standard of living of Rural Fisher
Page 128 and 129:
Table 1 denotes the infrastructure
Page 130 and 131:
FISHING METHODS USED BY DIFFERENT A
Page 132 and 133:
CONCLUSION Most of the fisher folk
Page 134 and 135:
Objectives: The following objective
Page 136 and 137:
Policies of the Government will hav
Page 138 and 139:
Wastage Schedule (Onion) Sl.No. Pri
Page 140 and 141:
At the end of 2008 the entire world
Page 142:
Conclusion: 9. The inflation can be
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