Economic efficiency of co-operatives and their impact on socio-economic development of rural areas

Abstract

The study aimed to analyse how cooperatives influence the development of the socio-economic situation in rural Albania. To achieve this goal, a detailed analysis of the main socio-economic indicators was conducted and the results were summarised, which helped to identify general trends and patterns in the development of Albania. The study determined that the cooperative sector in Albania is crucial in promoting sustainable development in rural areas and improving the quality of life in communities. Between 2015 and 2023, cooperatives contributed to the creation of 12,456 new jobs, a 25% reduction in poverty and a 30% reduction in out-migration. In addition, the sector has invested in social services and local infrastructure, improving living conditions and maintaining economic stability. The growth of the cooperatives was driven by a 40% increase in infrastructure investment, a 20% increase in credit availability, a 35% improvement in market access, and the expansion of logistics and marketing channels. The positive impact of cooperatives on the economy and social conditions was reflected in the growth of Albanian gross domestic product from USD 13.25 billion in 2015 to USD 18.31 billion in 2023, an increase of 38%. The results of the study can be useful for the development of evidence-based policies and strategies that support the growth and sustainability of the cooperative sector in Albania and beyond.