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Study Highlights Gender Gap in Profitable Cooperative Sector

Amman: A recent study titled “Cooperative Societies and Their Role in Empowering Women Economically in Jordan” has confirmed the existence of a gender gap within the cooperative sector, despite the profitability achieved by most societies.

Launched by the Economic and Social Council in collaboration with the United States Agency for International Development’s “Makanati” project, the study advocates for a comprehensive restructuring of cooperative societies. It recommends enhancing capacities, developing targeted training programs and financing, and improving governance. Additionally, it suggests formulating effective marketing strategies, fostering innovation, establishing strategic partnerships, and revising the current cooperative law.

The study also calls for changes to the composition of the cooperative institution’s board of directors, creating supportive technical, financial, and administrative units, expanding board powers, and removing the director general’s membership on the board.

The study iden
tifies several challenges facing the cooperative sector, such as difficulties in obtaining loans, a shortage of skilled labor, product marketing challenges, and limited worker experience. Women’s associations, in particular, face funding shortages, weak marketing, high raw material costs, insufficient government support, management issues, and licensing and tax obstacles.

To address these challenges, the study proposes grants, financial support, incentives, tax exemptions, and enhanced cooperation between associations for experience sharing and resource exchange. It also emphasizes the need for member training to develop effective management skills.

Musa Shteiwi, Chairman of the Economic and Social Council, highlighted the cooperative sector as a key pillar of the global social economy, balancing economic motives with a spirit of cooperation. He noted the sector’s role in job creation, enhancing socio-economic stability, fostering sustainable development, boosting economic growth, and improving living stand
ards. Although Jordan’s cooperative economy is still modest compared to its potential, it has been an integral part of the country’s economic landscape since the early 1950s.

Shteiwi emphasized the need for legislative and structural stability, better classification, and clearer goals for cooperative societies. He also pointed out the absence of general cooperative unions to guide and unify societies, and the prevalence of individually operated cooperatives.

He acknowledged the political will and support from His Majesty King Abdullah II, which aligns with the Economic Modernization Vision and public sector reform aimed at advancing the Jordanian economy and creating job opportunities, especially for youth and women.

Abdul Fattah Shalabi, Director General of the Jordan Cooperative Corporation, stated that the study will form a vital database for preparing strategies and plans to empower the Jordanian society economically and socially through cooperative work. He noted the cooperative movement’s qualitative
growth and stronger societal presence, facilitated by royal visits and continuous support for productive and developmental projects.

Shalabi highlighted the Cooperative Corporation’s role as the official representative of the sector in international and regional forums, including membership in the International Cooperative Alliance and the Arab Cooperative Federation.

Deborah Smith, Head of the “Makanati” Project for USAID in Jordan, emphasized the vital role of cooperatives in achieving long-term economic, social, and environmental goals, promoting good governance, and driving sustainable development.

She noted that cooperatives significantly contribute to economic progress, job creation, income growth, economic stability, and social justice by prioritizing service over profit.

According to Smith, cooperatives also enhance good governance through mechanisms that promote participation, transparency, and accountability, and play a crucial role in women’s economic empowerment.

Source: Jordan News Agency