GLOBAL UNIVERSITY BANGLADESH

Assignment On
Prospects and problems of Co-operative society in Bangladesh
Corse title: Introduction to Business

Corse code: BUS-106

Submitted To
Name: Nazrul Islam

Lecturer,

Dept. of Business Administration

GLOBAL UNIVERSITY BANGLADESH

Submitted By
Muhammad Ali

ID: 163-001-04

Program: BBA

Department of Business Administration

Date of submission: 02-07-2020

“Prospects and problems of Co-operative society in Bangladesh”

What is Co-operative society?

• A Co-operative society is an autonomous association of persons who voluntarily

cooperate for their common economic interest.

• Cooperatives are typically based on the cooperative values of "self-help, self-

responsibility, democracy and equality, equity and solidarity“.

Short Overview of Co-operative Society:

• In 1659 P.C. Plockboy, published a pamphlet seting out a scheme for the formation of
economic association.
• The first co-operative may have been founded on March 14,1761, in a barely-
furnished cottage in fenwick, East Ayrshire, when local weavers manhandled a sack
of oatmeal into John Walker`s whitewashed front room and began selling the contents
at a discount, forming the Frnwick Weaver`s Society.

• The Shore Porters’ Society claims to be one of the world`s first co-operatives, being
established in Aberdeen in 1498.

• In the decades that followed, several co-operatives of co-operative societies formed

including Lennox town Friendly Victualling Society, founded in 1812.

• In 1844 the Rochdale Society of Equtable Pioneers established the` Rochdale

Principles` on which they ran their co-operative which is the basis of development
and growth of the modern co-operative movement.

• The co-operative movement began in Europe in the 19th century, primarily in England
and France.

• Robert Owen (1771 - 1858) was a social reformer and a pioneer of the cooperative
movement.

Co-operative in Bangladesh:
Co-operative in Bangladesh has passed its century on its way. In initial stage though it
functioned with agriculture only, now it is working with economic spheres. Considering its
competency and effective utility in post-independent Bangladesh Co-operative Society is
constitutionally recognized as on the most important sectors of the economy. Truly Co-
operative is established as a social issue. And for this reason the man who contributed much
is Dr. Akther Hamid Khan.

On November 06 Bangladesh observed National Co-operative Day throughout the country

every year. On the occasion of 39th National Cooperative Day’s inaugurating at
Bangabandhu International Conference Centre in Dhaka city, Prime Minister Sheikh Hasina
directed the local government, rural development and co-operatives ministry "to finalize a
national co-operative policy on an urgent basis to infuse dynamism into cooperative
activities," adding that her government "will do whatever is necessary to spread the co-
operative movement across the country to ensure socio-economic and cultural emancipation
of the people."

 We found this followings Problems and Recommendations:

Problems of Cooperatives in Bangladesh

• Inefficient management: To make a Co-operative successful management should be

efficient, should have adequate knowledge, experience and capability.

• Government support: Government support for training, financial support like NGO
can help rapid expansion of Co-operative society.

• Limitation of capital: Co-operatives can collect a limited amount as capital because

the members usually come from a limited area or class an usually have limited means.
The principle of one-man-vote and the limit on dividends also dampen the enthusiasm
members.

• Excessive State regulation: Co-operative are exposed to a considerable degree of

regulation by the co-operative department are almost over-administered. This
interferes with the flexibility of its operation and the efficiency of its management.
• Illiteracy of members: As majority of members associated with co-operatives are
illiterate, their ignorance about the rules and procedures as well as purposes of co-
operative serves as barriers.
• Lack of unity and collaboration: Co-operative society stands upon its members’
unity and support. But in practice we see a regular inequity and dispute among its
low-class members.
• Lack of sacrifice and earnestness: Sacrifice and sincerity among members are
prerequisites for success of co-operative. But practically there is serious want of
members having a mentality of help and sacrifice.
• Inadequate training: Proper training can let our talents out. But in Bangladesh, for
want of effective training facility, the skills of members can not grow.
• Corruption and nepotism: As we know Corruption entered every single part of our
society, the co-operatives are not free from it by means of cheating the illiterate
members by powerful individuals. And nepotism in providing loans and other spheres
inhibit its growth.
• Lack of government facilities: Development of co-operatives requires proper
government patronization—providing economies within its policy, planning, training
etc. But in Bangladesh government pays less concentration about co-operatives.
• Less participation of female members: Equal participation of male and female
members could enrich our co-operative sectors. But in Bangladesh women
 participation is neglected in comparison to men. It is a great obstacle to the
development of co-operatives and national economy.
• High amount of loan in the total capital: If we look toward the total amount of
capital we can see 75%-85% or more of the total comes from loan. Because the
members of a co-operative society do not have the capability to invest large amount of
capital.

Some recommendation to explore the Prospects of Cooperative Societies in Bangladesh:

• Female participation: Equal participation of male and female can ensure

effectiveness of Co-operative society.

• Rejecting registration of inactive societies: The registration of inactive co-operative

societies should be rejected.

• Government monitoring: Government’s proper monitoring is essential but it should

not be exaggerated.

• Establishment of co-operative based permanent market system: This system is

necessary to ensure the agricultural products’ availability at a reasonable price and to
remove the middlemen. As well as integration of Producers, consumers and
transporting co-operative societies to reduce the price of goods.

• Duty free facility: Government should provide duty free facility for import and
export through Co-operative.

• Allotment in the national budget for the development of co-operatives: The

government should keep allotment in the national budget for the development of
various co-operative societies.

• Loan at low interest: Government should provide loan at low interest to the
members of Co-operative society.

• Illegal Co-operative: Government should occupy illegally occupied and misdeed Co-
operative like ‘union multipurpose’, ‘central union multipurpose’ and “Destiny”.

• Co-operative awareness: Government should conduct Co-operative awareness

programme specially in rural area.

• Termination of bureaucratic and political influence: Bureaucratic and political

influence in the co-operative enterprises must be terminated to ascertain the existence
of the principle ‘Freedom and Autonomy’.