Working Paper No. 9 - Cooperatives: a path to economic and social empowerment in Ethiopia

01 February 2009

Traditional cooperatives associations existed in Ethiopian society centuries ago in the form of iqub and idir. Iqub is an association of people having common objectives of mobilizing resources, especially finance, and distributing it to members on rotating basis. Idir is an association of people that have the objective of providing social and economic insurance for the members in the events of death, accident, damages to property, among others. In the case of funeral, Idir serves as funeral insurance where community members elect their leaders, contribute resources either in kind or in cash and support the mourning member.