COOPERATIVES

Cooperative Development in Different Countries

PARAMJIT SHARMA
COOPERATIVES
OUR FOCUS
What are Cooperatives? History of Cooperatives Cooperative Value and Princ
iples Cooperative Forms and Structure Cooperative Development in different C
ountries Development Agencies for Cooperatives Success, Pitfalls and Misconc
eptions about Coops. Cooperative - Future implications
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AN AUTONOMOUS ASSOCIATION OF PERSONS UNITED VOLUNTARILY TO MEET THEIR COMMON ECO
NOMIC, SOCIAL AND CULTURAL NEEDS THROUGH A JOINTLY OWNED AND DEMOCRATICALLY CONT
ROLLED ENTERPRISE.
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3 Characteristics of Coops
USER OWNER
USER BENEFITS
USER CONTROL
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WHY COOPS ARE FORMED ? When market Place fails to provide needed Goods or Servi
ces of Acceptable Quality or At Affordable Price To empower People to Improve T
heir Economic Power To enhance Their Economic Opportunities Through Self-Help
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COOPERATIVES Cooperatives-3
perceptions
As Socialist Cooperatives As a Special form of Business As a third sector of
Economy
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Socialist Type of Coop Society
Instrument of the state Transform pvt. Property to collective property What c
ant be Nationalized is cooperativesed To implement state economic plans Educat
e members in socialist way of living Transformed in 90’s-still some traces left
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Coop As A Special Form of Organisation
An enterprise Professionals Face competition Serving owners Economies of Sc
ale
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Coop As Third Sector Of Economy
•Different enterprise than Private/Public •Social/Mixed Economy •Based on Coop P
rinciples & values
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THE WEAVERS
Rochdale Pioneers
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Rochdale Equitable Pioneers Society, Toad Lane- 1844
Industrial Revolution Not The first Society Ideas & practices were new These for
med coop Principles Consumer Business Started Library & training school Concept
of Dividend
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Friedrich Raiffeisen
(1818 - 1888) German Coop Leader Mayor Of Many Cities Founded First Credit Union
-1864 Established Coop Credit Model
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COOPERATIVES Robert Owen (1771-1858)
Improving Working Conditions Coop Communities in UK & USA (Housing Cooperatives)
Limit Child work in Factories
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Hermann Schultze (1808-83) German Cooperative Pioneer Introduced Self-Help Con
cept Founded Peoples’ bank Introduced Workers Coops
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COOPERATIVES Cooperative Rainbow Flag
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JAPAN U.S.A INDIA ICELAND FRANCE SWEDEN MALAYSIA ITALY RURAL ECONOMIC DEV. RURAL
ELECTRIFICATION DAIRY, SUGAR COOPS. CONSUMERS, AGRL, BANKING CREDIT & BANKING C
ONSUMERs INSURANCE LABOUR, INDUSTRIAL
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Sector Developed Through Cooperatives
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Factors For Formation Of Coops
Countries
U.K., Sweden, Japan, Korea JAPAN, KOREA USA, CANADA SWEDEN, U.K. JAPAN, U.K., IN
DIA, ITALY CANADA, BRAZIL, U.K. JAPAN, USA, GERMANY
Industrialisation
Urbanisation Large Land Holding Requiring Joint Efforts Formation of Cartels Peo
ple Exploitation Medical Services, Transport Housing, Electricity, Credit
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Cooperative Values & Principles
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BASED ON
SELF HELP MUTUAL RESPONSIBILITY EQUALITY EQUITY SOLIDARITY
COOPERATIVE VALUES
PRACTICE HONESTY OPENNESS SOCIAL RESPONSIBILTY PARAMJIT SHARMA
COOPERATIVES
ROCHDALE PRINCIPLES (Adapted in 1930s)
OPEN MEMBERSHIP DEMOCRATIC CONTROL LIMITED INTEREST ON CAPITAL DISTRIBUTION OF S
URPLUS TO MEMBERS IN PROPORTION TO
THEIR TRANSACTIONS
POLITICAL AND RELIGIOUS NEUTRALITY CASH TRADING PROMOTION OF EDUCATION
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ICA REFORMED PRINCIPLES – 1960s
VOLUNTARY AND OPEN MEMBERSHIP DEMONCRATIC CONTROL DISTRIBUTION OF SURPLUS LIMITE
D INTEREST ON SHARE CAPITAL COOPERATIVE EDUCATION COOPERATION AMONG COOPERATIVES
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1995 ICA PRINCIPLES
VOLUNTARY & OPEN MEMBERSHIP DEMOCRATIC MEMBER CONTROL MEMBER ECONOMIC PARTICIPAT
ION AUTONOMY & INDEPENDENCE EDUCATION, TRAINING & INFORMATION COOPERATION AMONG
COOPERATIVES CONCERN FOR COOPERATIVES
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Cooperative Forms & Structure
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NON CREDIT CREDIT LONG TERM SHORT TERM CONSUMERS HOUSING SUGAR DAIRY FISHERIES T
RANSPORT INDUSTRIAL MARKETING TRIBAL WORKERS
BANKS CREDIT SOCIETIES
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Rural Electrification Collective Farming Coop Companies Floriculture Social Fore
stry New Generation Utility Coops Processing Insurance
Others
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Baby Sitting Health Care Car Sharing Education Funeral Service Social Security W
ater Preservation Tourism Regenerative Energies
New Areas
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Cooperative Structure
APEX
REGIONAL PRIMARIES
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Cooperative Development in Different Countries
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Germany Raiffeisen Model - Credit Cooperatives Hermann Schulze - Workers Coo
peratives G.D.R - Cooperative Farming - Consumer Cooperatives F.R.G - Rural
Societies - RM - Urban Societies - SM - Housing - Consumers Hamburg- Consumer C
oop. ‘Production’ Structure---Primary, Regional, Federal
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United Kingdom Rochdale - 1844 (Consumers) Robert Own - Labour Reforms & hou
sing Cooperative Group Insurance Farmcare Pharmacy Banking Consumers Tra
vel Care Estate Management Funeral Care
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KF (Group)
Sales 3 Billion Euro Dollars Employees 19000 Stores Members 824 24,33,000
Sweden
VAR GARD (SCC) Coop. Norden
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members members members
Coop.Norden
Coop. Norden a coop. group of companies
Coop NKL
FDB Coop Norden AB
KF
Coop Norway
Coop Denmark
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Coop Sweden
COOPERATIVES Coop Norden
• Turnover to consumers around 80 billion SEK • Including retailing in local coo
peratives the turnover is around 93 billion SEK • Substantial share of everyday
commodities market; Sweden 24%, Denmark 38%, Norway 25% • 1 100 shops (plus 1 90
0 in local cooperatives) • 26 000 employees (plus 25 000 in local cooperatives)
Sweden
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Canada Agricultural & Marketing Coops Canadian Cooperative Association- Unio
n Wheat Pools - Alberta in 1923 Wholesale Societies Federation of wholesal
e Societies Credit Unions - Desjardins of Quebec
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Russia
Labour Artels Consumers - Centrosoyus Collective Farming Agricultural Coo
peratives
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Israel Histadurt - 1920 (Gn.Fed. of Labour) Havrat Ordini - 1930 (Coop. Fed.
) Kibbutz - Collective Village Moshav Ordini - Workers settlement Moshav O
lim - (New Immigrants Settlement) Moshav Shitufi - Collective small holders Se
ttlement
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China Shanghai National Coop. Saving Bank 1912 Cooperative Union - 1921 Indus
-Co - after Japanese war Agricultural Coop.-1952 after land reforms Cooperativ
e Commune - 1958 (Sputnik) (Collective Farming) Supply & Marketing Cooperatives
Credit Cooperatives
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Norinchukin Bank -1923 Central Financing Bank for Agri, Forestry & Fishery Coop
eratives Zen-Noh (National Level Federation of 48 Economic Federations) Share -
Fert - 71% Agro Chemicals - 52% Food stuff - 22% Unicoop Japan - 1961 to expor
t Agri, Fish & Forestry items
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Japan
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Ukraine
Ukrainian National Association of Savings & Credit Union US Aid set up 10 mo
del Credit Unions CIDA set up Ukraine Credit Union Dev. Project
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First Cooperative Store in ANTSLA - 1902 Consumer Cooperative Union - ETK Coo
perative Restaurants Housing Cooperatives Small workers-owned Cooperatives in
Service Sector Earlier collective farming now privatized Coop. Chamber in 1936
undertaking banking, insurance, retail & wholesale, industry resource Estonia
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Mauritius Cooperative act - 2005 Regional Cooperative Centres to facilitate su
pervision, coordination, participative planning & communication Coop. Business
Centres - multipurpose socs. National Coop. Training Centre Three Tier Structu
re
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COOPERATIVES
No. of Cooperatives Membership of Cooperatives : Share Capital 198,540 ml Villag
es covered by 100% Cooperatives Coverage of Rural Households Flow of Rural Credi
t 43% through Cooperatives : : 71% : : : .5 ml 230 ml Rs
INDIA
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COOPERATIVES
SHARE OF COOPERATIVES IN INDIAN ECONOMY Fertiliser Disbursed Fertiliser Producti
on Sugar Produced Oil Marketed No. of National Level Cooperative No. of State Le
vel Coop. Federations No. of District Level Coop. : 2890 : 367 : : : : : 36% 25%
51% 50% 19
INDIA
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Credit institutions Short-Term Structure State Cooperative Banks (30) Long-Term
Structure State Cooperative Agriculture & Rural Development Banks (SCARDBs) (20)
District Central Cooperative Banks (367)
Primary Agricultural Cooperative Societies (PACS) (1,12,309)
Branches (887)
Primary Cooperative Agriculture and Rural Development Banks Development Banks (P
CARDBs) (768)
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Development Agencies For Cooperatives
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ILO *ESTD-1919
*RECOM-127/193 *NPA-1969 *TURIN CEN. *MATCOM *COPNET
INTERNATIONAL DEVELOPMENT AGENCIES
FAO
WOCCU
*ESTD-1984 *WORLD CREDIT UNION *PROMOTE EC. & SOCIAL DEV. *UNDERTAKE DEV. PROJEC
TS *INTEGRATE CREDIT COOPS.
*ESTD-1943 *COOP. AGR. DEV. *DIST. OF FOOD & AGR. PRODS.
ICA
*ESTD-1895
*FOUR REG. OFFICES *PRINCIPLES *CORD.INT. AGENCY *TRG. &DEV. *ADVOCACY
COPAC
*PROMOTE AID TO COOPS *UNDERTAKE STUDIES *STRUCTL. DEVELOPMENT *PREP. COUNTRY ST
ATUS REPORTS
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International Agencies ICA ILO COPAC FAO IFAD SIDA CCA Indian agencies NCDC NABA
RD NCUI COOP.DEPTS. TRG.INSTIUTUTIONS
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Success , Pitfalls & Misconceptions About Cooperatives
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Credit Movement to farmers Largest Human Force after UNO Collective Farming
Consumers Cooperatives Democratic Institutions Transparent Organisations Conc
ern For Community Dairy/Sugar/Housing…..Coops Alleviation of Poverty Creation
of productive employment
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Contribution of Coops.
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SUCCESS FACTORS
• NEED BASED • PROFESSIONAL GOVERNANCE • COOP VALUES AND PRINCIPLES • STRONG CAP
ITAL BASE • IT INTERVENTIONS
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Why coops Are coaxed For poor Performance
Ideological diff in Goals Unprofessional Management Poor Governance
•Lack of Member Participation
Inadequate Capital Base
•Oversensitivity to Members •Inappropriate Strategies •Too Many Legislative Cont
rols
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-MISCONCEPTIONS
SHIFT IN REAL PURPOSE
DOMINANCE BY BIG MEMBERS
COOP VALUES OR PRINCIPLES
COOPS ARE FOR POOR
COOPS ARE SOCIAL ORGS
MEMBERS CARE
SARKARI ORGANISATIONS
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Cooperatives—Future Implications
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Future Implications
Declining financial support Curtailing Registrar s Role Facing Competition N
ew Way Of Capital Formation New Opportunities Due to Dis-investments Increase
in Corporate Power- community look for coops Vast section Effected by Reforms m
ay Form Coops
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COOPERATIVES -options available
Increase Size & Vertical Integration Market Friendly & Members Friendly Devel
op & Train HR- members, leaders, staff.. Forge Strategic Alliances Encourage M
embers Participation—services Develop & Retain Symbiotic relations with Govt I
mprove Business Efficiency
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COOPERATIVES -options available
•Improving Business Efficiency
Professional Management Board Composition Empower Exc. Management Training Reduc
ing Cost To Meet Competition Managing Resources- Members, Leaders
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-Stressing Membership Advantages
Services
Commitment
Education
Successful Coops of Future will Be One’s That Do it BEST
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-choice for the future
Capital crisis Credibility Managerial ideology
1 Continue 2 Change Identity
Gradually Die Losing Identity
Develop & Compete
Form Coop Company Tackling Crises
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3 Change environment
COOPERATIVES -choice for the future 1
Continue
Credit NPA,FUNDS
Capital crisis Credibility Managerial ideology
Gradually Die Marketing
Weak Primaries
DCCB’S Sec-11 BR Act
Sugar Production loans
Housing Missed
Opportunities PARAMJIT SHARMA
CONSUMERS Lost Govt.Support
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-choice for the future
3 Change environment
Tackling Crises
Develop & Compete
Credibility
•Image •Technology •Need based •Governance
CAPITAL
•Generate Internally •Explore New Ideas
Ideology
•Definition •Values •Principles •Strengthening •People •Cooperative •Collaborati
ons
Managerial
•Professionalism PARAMJIT H Resource •Develop SHARMA
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THANKS
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