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Cooperative Environment

in India

Paramjit Sharma
Cooperative Environment

The Process Of Change

Paradigm Shift

Paramjit Sharma
Coop.Env-position after Independence

•Village Panchayat 3 Pillars of


•Village Cooperative Rural Life
•Village School

1st FYP-Coop were an indispensable instrument of planned


Economic action
Paramjit Sharma
Coop-matter of state policy
•Set Targets for Numbers
•Imposed Uniform Pattern
1st
•Structure & Activities
•Enact Laws
Step •Frame Rules,Impose Bye Laws
•Create Supportive Adm Set Up
Registration
Supervision
Inspection

Blue Print Approach


ParamjitTo Coop Development
Sharma
Coop-matter of state policy
State’s Decision To Financially Support
2nd
Step Share
Contribution
Provide Subsidies
Concessions &
Guarantees
Paramjit Sharma
Coop-matter of state policy
•State Accorded Priorities
3rd •Even Monopolies
•Issued Preferential Licenses for Agro
Step •Agency for procuring Ag. Produce
•Distribution Of Ag. Inputs
•Distribution Of Consumer Goods

Became Sarkari Sahkari


Paramjit Sharma
Coop Environment-as a result of

State State
•Protected Coop from
State Sponsors Competition
State Protection •Provide Easy Capital
State Agent •Helped Gaining Profits

State Coops Became


Complacent
Paramjit Sharma
Coop Env- result of Complacency

Coop Leaders & Managers Gradually Became


Oblivious
Of their obligation To Coop Members &

Their Role & Place in Governing & Managing Coops

Created Culture Of Indifference Towards Market

Blunted Skills & Capabilities of Coop Leaders


& Members To Effectively Lead & Manage

Paramjit Sharma
Coops-emerging environment

Collapse of Centrally Planned Economy

Free Enterprise- liberalisation

Market Driven Economic System

Structural Adjustments
Paramjit Sharma
Structural Adjustments-1st phase

Focus on Deflationary Measures


Solving Balance Of Payments

Decreasing Budget Deficits

Devaluing the Currency


Resulted into Recession
Unemployment

Paramjit Sharma
Structural Adjustments-2nd phase

Focused To Promote Production


Stimulating Economy Through
Deregulation
Privatization
Increasing Efficiency
Private Sector May
•Expand
These
•Hire Manpower
Changes
•Lead To Ec. Growth
Too Failed
•Increase Tax Revenue
•Reduce Fiscal Crises
Paramjit Sharma
Structural Adjustments-3rd phase

Reforms With Human Face


•No Quick Sol. To Economic Problems

•Social Concern Were Important

•National Consensus Necessary

•Social Dimensions
3rd Phase Included Elements
Paramjit Sharma Of Two Phases
Change In Env-consequences

•Wooing Foreign Capital


•MNC’s Welcomed
•Level Playing Conditions For All
•Gradually Dismantling Prioritization
•Disinvestments of PSU’s
•Slowly Doing Away with-Subsidies…
•Reducing Role in Agr,Services
•Created –ve Impact On Coops

Paramjit Sharma
Coops-Future Implications
Declining Financial Support
Declining Financial Support
Curtailing Registrar’s Role
Curtailing Registrar’s Role
Facing Competition
Facing Competition
New Way of Capital Mobilization
New Way of Capital Mobilization
New Opportunities due to Disinvestments
New Opportunities due to Disinvestments
Increase in Corporate Power-community look for coops
Increase in Corporate Power-community look for coops
Vast Section Affected By Reforms may Form
Vast Section Affected By Reforms may Form
Coops
Coops
Paramjit Sharma
Coops-options available
•Increase Size & Vertical Integration
•Market Friendly & Members Friendly
•Value Based Mgt. Practices
•Develop & Train HR-Members,Leaders, Staff
•Forge Strategic Alliances
•Encourage Members Participation –Services
•Develop & Retain Symbiotic Relations With Govt
•Improving Business Efficiency
Contd…..

Paramjit Sharma
Coops-options available

•Improving Business Efficiency


Professional Management
Board Composition
Empower Ex.Management
Training
Reducing Cost To Meet Competition
Managing Resources-Members, Leaders

Paramjit Sharma
Coop Sustainability-prof approach

Clear Coop Policy •Trained Board


Coop Identity –Part Of Act •Restructure Role Of Reg
De-recognize Pseudo Coops •Role Of Federal Org

Support At
Promoting •Local
Subsidiary •Regional
Organisations •State
•National
Paramjit Sharma •International
Coop-Stressing Membership Advantages

Services Commitment Education

Successful Coops of Future will


Be One’s That Do it BEST
Paramjit Sharma
Re-positioning- few questions
How To Preserve Coop Identity?
Identifying The Effects on Different Coops
Due To Reforms
How To Draw Support-Contingency Plan?
How To Achieve Sustainable Autonomy?
Re-Defining the Role Of Registrar?
Suggesting Suitable Governance Structure
Strengthening the Base-Primaries

Paramjit Sharma
Coops-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
Paramjit Sharma
Coops-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
Paramjit Sharma
Lost Govt.Support
Coops-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 •Collaborations
•Governance Paramjit Sharma
Paramjit Sharma