Local Stakeholder Involvement in Cooperatives of Rural Co-operative in Japan and Korea

Over the last several decades, rural areas in Japan and Korea have undergone considerable change, influenced by decreased birth rates, an aging population and urbanization. Rapid declines in mortality and fertility accelerated... [ view full abstract ]

Over the last several decades, rural areas in Japan and Korea have undergone considerable change, influenced by decreased birth rates, an aging population and urbanization. Rapid declines in mortality and fertility accelerated population aging in two countries’ rural area. As younger generations attained higher education and moved to cities for their education and jobs, the population of the rural area rapidly diminished, resulting in an ageing rural population and lowered agricultural productivity. Impoverished rural areas became a salient factor in crucial public policies such as health, job creation and long-term care. In this context, voluntary and community-based co-operatives emerged in responding to the challenges of low growth and aging population in the agricultural area. 

During the last decade, co-operatives began to play a significant role in ordinary people’s quality of life in a variety of ways. Most consumer co-operatives distribute agricultural products from organic producers to consumers in the urban sector, thereby enhancing the quality of life in both sectors. Medical co-operatives deliver health and elderly care services to their members. Profits are either reinvested into the infrastructure for members or distributed among them in the form of community-based health-care services for community residents who cannot afford appropriate medical services. The investigation of community-based co-operative as an alternative means for community development in the face of declining rural society in Japan and Korea is important because it can be projected to the rest of the region. 
Therefore, this paper will explore the different modes of local stakeholders’ involvement and their contribution to the rural community development in Japan and Korea. The first section describes the development of co-operatives in rural Japan and Korea. The second section introduces the theories on how stakeholders approach and participated in co-operatives, focusing on the analytical framework. The third section is about the stakeholder’s involvement in the community context, a case study of Japan and Korea, demonstrating each country’s own unique experience produces different modes of involvement and contribution. Finally, the implication and conclusion make some remarks on the future direction of research on the co-operatives in the rural sector.