Contextual Analysis of the Failure of Cooperative Functions of Border Dwellers in Kurdistan Province in the Context of Informal Border Economy

This study is based on the analysis of the mechanisms of failure of cooperatives in the border areas of Kurdistan province. To achieve this, using the theoretical saturation obtained from the semi-structured interview data with 41 members of the board The board and CEO of border cooperatives of four border towns of Kurdistan province came to this end. The results show the existence of conditions of border underdevelopment due to weak communication and economic infrastructures. The causal and intervening conditions for the failure of cooperatives in the informal economy of the border showed that the dominance of the contradictory policies of state institutions and the lack of participation and knowledge of members about the cooperatives provided the conditions for this failure. This situation shows the lack of efficiency and weakness of the cooperatives, which is reflected in the consequences and socio-economic damages. The functional failure of the cooperatives has consequences such as the failure of the border resident’ card and the fuel card plan, the neglect of the employment of border residents, cultism and its damage, the reduction of the life expectancy of villagers in border areas, the collapse of the local economy and serious economic problems, and a decline in trust. It has become social in two dimensions: institutional and popular. Therefore, in order to maintain and improve the position and role of cooperatives, it is possible to apply government support and monitoring strategies, strengthen the general participation of the rural community, and improve the financial base of the cooperative.