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COOPERATIVES
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- What it is: A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.
- Scale and scope: Ranging from small-scale to multi-million dollar businesses across the globe, co-operatives employ more than 100 million women and men and have more than 800 million individual members.
- Idea: Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others.
- The Cooperative Movement in India was formally introduced with the promulgation of Cooperative Societies Act in 1904. Even before formal cooperative structures came into being through the passing of a law, the practice of the concept of cooperation and cooperative activities were prevalent in several parts of India. Some of them were named as Devarai or Vanarai, Chit Funds, Kuries, Bhishies, Phads
- Seven principles:
- Voluntary And Open Membership - Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
- Democratic Member Control - Co-operatives are controlled by their members, who actively participate in setting their policies and making decisions. In primary co-operatives members have equal voting rights (one member, one vote).
- Member Economic Participation - Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.
- Autonomy And Independence - Co-operatives are autonomous, self-help organisations controlled by their members. If they enter to agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members.
- Education, Training and Information - Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives.
- Co-Operation among Co-Operatives - Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.
- Concern for Community - Co-operatives work for the sustainable development of their communities through policies approved by their members.
- NCUI and NCDC: The National Cooperative Union of India is an apex body of Indian cooperative movement since 1929. Bodies like the NCDC (National Cooperative Development Cooperation) financially nurture cooperatives represented by large, small and marginal farmers.
- Cooperative Banks: A cooperative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank.
- Cooperative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co operative banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking and accounts, etc.).
- They are the primary financiers of agricultural activities, some small-scale industries and self employed workers. They function on the basis of “no-profit no-loss”.
- The Co-operative Credit system consists of – a. Short-term agricultural credit institutions, b. Long-term agricultural credit institutions, c. Non-agricultural credit institutions
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