Cooperatives offer an attractive alternative to public sector programs. The paternalistic approach of governments and absence of competition provide little incentive to seek efficient methods of product or service delivery. A cooperative, because it is recipient owned, has an automatic incentive to maximize benefits to the members. To judge whether the cooperative will be successful, the local environment must be assessed to determine if it is supportive to the creation of a viable cooperative business enterprise. Institutional support to U. S. cooperatives will be centrally funded.
Cooperatives are one type of local organization.
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