The contribution of coffee crops to socioeconomic development of Karenge sector in Rwamagana district. Case study of Kopakaka cooperative. period:2008-2011.

2.1.3 Economy

An economy consists of the economic systems of a country or other area; the labor, capital and landresources; and the manufacturing, production, trade, distribution, and consumption of goods and services of that area ( www.en.wikipedia.org/wiki/economy).

A given economy is the result of a process that involves its technological evolution, history and social organization, as well as its geography, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions.

2.1.4 Socio-economics

According to Gustav Cassel (1932),Socio-economic or social economics is an umbrella term with different usages. 'Social economics' may refer broadly to the "use of economics in the study of society. More narrowly, contemporary practice considers behavioral interactions of individuals and groups through social capital and social "markets" (not excluding for example, sorting by marriage) and the formation of social norms. In the latter, it studies the relation of economics to social values.

2.1.5 Economic development

According ASSIMWE, H.M. (2006), economic development is a sustained improvement in people's standard of living and welfare. It is a measure of quality of life of people. Economic development involves an improvement in the availability in the basic needs, an increase in the per capita income, an improvement in the variety of socio-economicindicators such as an increase in literacy rate, higher life expectancy, and reduction in poverty level, improved health, more education and others. Development incorporates a measure of human welfare.

2.1.6 Cooperatives

According to International Cooperative Alliance cited by www.en.wikipedia.org/wiki/-cooperative, «a cooperative ("coop"), co-operative ("co-op"), or coöperative ("coöp") is an autonomous association of persons who voluntarily cooperate for their mutual social, economic, and cultural benefit».Cooperatives include non-profit community organizations and businesses that are owned and managed by the people who use its services (a consumer cooperative) and/or by the people who work there (a worker cooperative).

A cooperative is a collectively-owned firm established to further the wellbeing of its members. In contrast to investor owned firms, co-op members are not primarily interested in financial return on investments but in the maintenance of services provided by the co-op. By definition, co-ops are firms that are not tradable (Markus, H., 2005:6).

According to DFID (2008) cited by Suleman A.C. (2009:3), the definition of co-operatives is built on four major catch words; first, they are formed by groups of people, who have a specified need or problem. Second, the organization is formed freely by members after contributing to its assets. Thirdly, the organization formed, is governed democratically in order to achieve desired objectives on equitable norms, and fourth, it is an independent enterprise promoted, owned and controlled by people to meet their needs (DFID: 2008). It is about peoples' organization to capture different opportunities in the economy where they can address their economic needs and aspirations. By the same token therefore, cooperatives can be formed in any sector of the economy of a country such as agriculture, minerals, industries and service sectors.