COOPERATIVES

Cooperative Development in
Different Countries

PARAMJIT SHARMA
 COOPERATIVES

OUR FOCUS
 What are Cooperatives?
 History of Cooperatives
 Cooperative Value and Principles
 Cooperative Forms and Structure
 Cooperative Development in different Countries
 Development Agencies for Cooperatives
 Success, Pitfalls and Misconceptions about Coops.
 Cooperative - Future implications

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AN AUTONOMOUS ASSOCIATION OF PERSONS

UNITED VOLUNTARILY TO MEET THEIR COMMON
ECONOMIC, SOCIAL AND CULTURAL NEEDS
THROUGH A JOINTLY OWNED AND
DEMOCRATICALLY CONTROLLED ENTERPRISE.

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3 Characteristics of Coops

USER USER USER

OWNER BENEFITS CONTROL

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WHY COOPS ARE FORMED ?

When market Place fails to provide needed Goods or

Services of Acceptable Quality or At Affordable Price

To empower People to Improve Their

Economic Power

To enhance Their Economic Opportunities

Through Self-Help

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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 cant be Nationalized is cooperativesed
To implement state economic plans
Educate 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
Scale

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Coop As Third Sector Of Economy

•Different enterprise than Private/Public

•Social/Mixed Economy

•Based on Coop Principles & 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 formed 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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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 Concept

Founded Peoples’ bank

Introduced Workers Coops

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Cooperative Rainbow Flag

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JAPAN RURAL ECONOMIC DEV.

U.S.A RURAL ELECTRIFICATION

INDIA DAIRY, SUGAR COOPS.

ICELAND CONSUMERS, AGRL, BANKING

FRANCE CREDIT & BANKING Sector

SWEDEN CONSUMERs Developed
Through
MALAYSIA INSURANCE Cooperatives
ITALY LABOUR, INDUSTRIAL

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Factors For Formation Of Coops Countries

Industrialisation U.K., Sweden, Japan, Korea

Urbanisation
JAPAN, KOREA
Large Land Holding
Requiring Joint Efforts USA, CANADA

Formation of Cartels SWEDEN, U.K.

People Exploitation
JAPAN, U.K., INDIA, ITALY
Medical Services, Transport CANADA, BRAZIL, U.K.
Housing, Electricity, Credit JAPAN, USA, GERMANY
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Cooperative Values
&
Principles

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BASED ON
SELF HELP
MUTUAL RESPONSIBILITY
EQUALITY
EQUITY COOPERATIVE
VALUES
SOLIDARITY

PRACTICE
HONESTY
OPENNESS
SOCIAL RESPONSIBILTY
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ROCHDALE PRINCIPLES (Adapted in 1930s)

OPEN MEMBERSHIP
DEMOCRATIC CONTROL
LIMITED INTEREST ON CAPITAL
DISTRIBUTION OF SURPLUS 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
LIMITED INTEREST ON SHARE CAPITAL
COOPERATIVE EDUCATION
COOPERATION AMONG COOPERATIVES
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1995 ICA PRINCIPLES

VOLUNTARY & OPEN MEMBERSHIP
DEMOCRATIC MEMBER CONTROL
MEMBER ECONOMIC PARTICIPATION
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
CONSUMERS
LONG SHORT HOUSING
TERM TERM SUGAR
DAIRY
FISHERIES
TRANSPORT
BANKS INDUSTRIAL
CREDIT SOCIETIES MARKETING
TRIBAL
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WORKERS
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Rural Electrification
Collective Farming
Coop Companies
Floriculture
Social Forestry Others
New Generation
Utility Coops
Processing
Insurance

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Baby Sitting
Health Care
Car Sharing
Education
Funeral Service New Areas
Social Security
Water Preservation
Tourism
Regenerative Energies

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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 Cooperatives
 G.D.R - Cooperative Farming
- Consumer Cooperatives

 F.R.G - Rural Societies - RM

- Urban Societies - SM
- Housing
- Consumers
Hamburg- Consumer Coop. ‘Production’

Structure---Primary, Regional, Federal

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United Kingdom
 Rochdale - 1844 (Consumers)
 Robert Own - Labour Reforms & housing
 Cooperative Group
Insurance
Farmcare
Pharmacy
Banking
Consumers
Travel Care
Estate Management
Funeral Care
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KF (Group) Sweden

Sales 3 Billion Euro Dollars

Employees 19000

Stores 824

Members 24,33,000

VAR GARD (SCC)

Coop. Norden

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members members members Coop.Norden

Coop
Coop. NKL FDB KF
Norden -
a coop. Coop
group of
Norden
companies
AB

Coop Coop Coop

Norway Denmark Sweden
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Coop Norden Sweden

• Turnover to consumers around 80 billion SEK

• Including retailing in local cooperatives
the turnover is around 93 billion SEK
• Substantial share of everyday commodities market;
Sweden 24%, Denmark 38%, Norway 25%
• 1 100 shops (plus 1 900 in local cooperatives)
• 26 000 employees (plus 25 000 in local cooperatives)

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Canada
 Agricultural & Marketing Coops
 Canadian Cooperative Association- Union
 Wheat Pools - Alberta in 1923
 Wholesale Societies
 Federation of wholesale Societies
 Credit Unions - Desjardins of Quebec

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Russia

Labour Artels
 Consumers - Centrosoyus
 Collective Farming
 Agricultural Cooperatives

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Israel

 Histadurt - 1920 (Gn.Fed. of Labour)

 Havrat Ordini - 1930 (Coop. Fed.)
 Kibbutz - Collective Village
 Moshav Ordini - Workers settlement
 Moshav Olim - (New Immigrants Settlement)
 Moshav Shitufi - Collective small holders
Settlement

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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
Cooperative Commune - 1958 (Sputnik)
(Collective Farming)
Supply & Marketing Cooperatives
Credit Cooperatives

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Norinchukin Bank -1923 Japan
Central Financing Bank for Agri, Forestry
& Fishery Cooperatives
Zen-Noh (National Level Federation of 48
Economic Federations)

Share - Fert - 71%

Agro Chemicals - 52%
Food stuff - 22%

Unicoop Japan - 1961 to export Agri,

Fish & Forestry items

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Ukraine

 Ukrainian National Association of Savings

& Credit Union

 US Aid set up 10 model Credit Unions

 CIDA set up Ukraine Credit Union Dev.

Project

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Estonia
First Cooperative Store in ANTSLA - 1902
Consumer Cooperative Union - ETK
Cooperative 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

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Mauritius

Cooperative act - 2005

Regional Cooperative Centres to facilitate
supervision, coordination, participative
planning & communication
Coop. Business Centres - multipurpose socs.
National Coop. Training Centre
Three Tier Structure

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No. of Cooperatives : .5 ml
INDIA
Membership of Cooperatives : 230 ml
Share Capital : Rs
198,540 ml
Villages covered by :
100%
Cooperatives
Coverage of Rural : 71%
Households
Flow of Rural Credit :
43%
through Cooperatives
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SHARE OF COOPERATIVES IN
INDIAN ECONOMY INDIA
Fertiliser Disbursed : 36%
Fertiliser Production : 25%
Sugar Produced : 51%
Oil Marketed : 50%
No. of National Level : 19
Cooperative
No. of State Level Coop. : 367
Federations
No. of District Level Coop. : 2890

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Credit institutions

Short-Term Structure Long-Term Structure

State Cooperative State Cooperative Agriculture &

Banks (30) Rural Development Banks
(SCARDBs)
(20)
District Central
Cooperative Banks
(367) Branches Primary Cooperative
(887) Agriculture and Rural
Development Banks
Primary Agricultural
Development Banks
Cooperative Societies
(PCARDBs) (768)
(PACS)
(1,12,309) PARAMJIT SHARMA
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Development Agencies For Cooperatives

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INTERNATIONAL DEVELOPMENT
AGENCIES
ILO
*ESTD-1919 FAO
*RECOM-127/193 *ESTD-1943
*COOP. AGR. DEV.
*NPA-1969 WOCCU *DIST. OF FOOD &
*TURIN CEN. *ESTD-1984 AGR. PRODS.
*MATCOM *WORLD CREDIT
UNION
*COPNET *PROMOTE EC. &
SOCIAL DEV.
*UNDERTAKE DEV.
PROJECTS
ICA *INTEGRATE COPAC
CREDIT *PROMOTE AID TO COOPS
*ESTD-1895
COOPS. *UNDERTAKE STUDIES
*FOUR REG. OFFICES
*STRUCTL. DEVELOPMENT
*PRINCIPLES
*PREP. COUNTRY
*CORD.INT. AGENCY
STATUS REPORTS
*TRG. &DEV.
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*ADVOCACY
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International Indian
Agencies agencies
ICA NCDC
ILO NABARD
COPAC NCUI
FAO COOP.DEPTS.
IFAD TRG.INSTIUTUTIONS
SIDA
CCA

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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
Contribution Democratic Institutions
of Coops. Transparent Organisations
Concern For Community
Dairy/Sugar/Housing…..Coops
Alleviation of Poverty
Creation of productive employment

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SUCCESS FACTORS
• NEED BASED

• PROFESSIONAL GOVERNANCE

• COOP VALUES AND PRINCIPLES

• STRONG CAPITAL BASE

• IT INTERVENTIONS

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Ideological diff in Goals

Why coops
Are coaxed
Unprofessional Management
For poor
Performance
Poor Governance
•Lack of Member Participation
Inadequate Capital Base
•Oversensitivity to Members

•Inappropriate Strategies

•Too Many Legislative Controls

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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

New Way Of Capital Formation

New Opportunities Due to Dis-investments

Increase in Corporate Power- community look for coops

Vast section Effected by Reforms may Form Coops

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-options available

Increase Size & Vertical Integration

Market Friendly & Members Friendly
Develop & Train HR- members, leaders, staff..
Forge Strategic Alliances
Encourage Members Participation—services
Develop & Retain Symbiotic relations with Govt
Improve Business Efficiency

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-options available

•Improving Business Efficiency

Professional Management
Board Composition
Empower Exc. Management
Training
Reducing 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
1 Credibility Gradually
Managerial
Continue ideology
Die

2 Change Form Losing

Coop
Identity Company
Identity
Develop
3 Change &
Tackling Crises
environment Compete
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-choice for the future
Capital crisis
1 Credibility Gradually
Managerial
Continue ideology
Die

Credit
NPA,FUNDS Marketing
Sugar
Weak
Production
Primaries
DCCB’S loans
Sec-11 Housing
BR Act Missed CONSUMERS
Opportunities
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-choice for the future
3 Change Develop
Tackling Crises &
environment
Compete
Credibility CAPITAL
•Generate Internally
Ideology
•Definition
•Image •Explore New Ideas
•Values
•Principles
•Technology
•Strengthening
Managerial •People
•Need based
•Professionalism •Cooperative
•Develop H Resource
PARAMJIT SHARMA •Collaborations
•Governance
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THANKS

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