Cooperative Sector is one of the economic system in our
Indian economy. We are following the mixed economy, i.e., the Public Sector, the
Private Sector and the Cooperative Sector. Cooperatives are distinctive
business organizations. Cooperatives are association of human beings (users),
not of capital. It decentralizes the Production, the Marketing and the Wealth
in tune with Indian Constitution Directive Principles of Article 39 (c). The
Principle action of the cooperatives is to elimination of exploitation and to
promote economic rights of the people. It seeks to establish the economic
democracy.
Definition
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.
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.
Values
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.
P R I N C I P L E S
|
THE CO-OPERATIVE PRINCIPLES
ARE GUIDELINES BY WHICH CO-OPERATIVES Â PUT THEIR VALUES INTO PRACTICE. |
||||||||||||||||||||||||||
|
1st Principle: 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. |
||||||||||||||||||||||||||
|
2nd Principle: Democratic
Member Control |
||||||||||||||||||||||||||
|
Co-operatives are democratic
organisations controlled by their members, who actively participate in setting their policies and
making decisions. Men and women serving as elected representatives are accountable to the membership.
In primary co-operatives members have equal voting rights (one member, one vote) and
co-operatives at other levels are also organised in a democratic manner. |
||||||||||||||||||||||||||
|
3rd Principle: 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. |
||||||||||||||||||||||||||
|
4th Principle: 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 and maintain their co-operative autonomy. |
||||||||||||||||||||||||||
|
5th Principle: 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. They inform the general public –
particularly young people and opinion leaders – about the nature and benefits of co-operation. |
||||||||||||||||||||||||||
|
6th Principle: 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. |
||||||||||||||||||||||||||
|
7th Principle: Concern For
Community |
||||||||||||||||||||||||||
|
Co-operatives work for the
sustainable development of their communities through policies approved by their members.
Understanding the Cooperative ConceptÂ
 Private Sector ; Private Sector namely the Indian and International Investors are leading the Market Economy with full support of the Indian Government in the economic activity of Industry & Trade and Commerce. Aim of the Private Sector is to earn Profit. Public Sector   ;   Public Sector is leading by the Indian Govt. and State Governments even making the Private Sector as share holders in Industry and Public Utility Services. Aim of the Public Sector is to provide services to the public. Cooperative Sector   ;  Cooperative Sector is leading by the User’s of India, hence it is called Cooperative movement. Till 1990s the Governments were acted as Friend, Philosopher and Guider to the Cooperative Sector. Aim of the Cooperative Sector is to protect the User member from the exploitative nature of the Market economy. Welfare State     ;   Establishment of Welfare State is the main aim of our Indian Constitution as enshrined in the Preamble of the Constitution. Article 43 directs the Governments to follow the Cooperative policy in the Indian rural economy and Article 39 (c) ; The State shall, in particular, direct its policy towards securing that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment. Thus these Articles are embodiment of Cooperative system. Cooperative Sector is Natural Ally of Govt. ;  To  achieve the Govt. welfare Schemes goals , the Cooperative Sector is its natural ally in implementing them, since because Small & marginal farmers, rural artisans and Landless labourers are the stake holders of Coop. Sector. Hence as per the above Articles of our Constitution, Govts. are bound to assist the Cooperative Sector.   Standard Parameters for the Identity of a Cooperative and it’s development :    1. The Cooperative Society must be the association of the User members.    2. The Coop. Society must be nearer to the member to facilitate him to actively participate.    3. The member should regularly contribute Thrift apart from the Share capital.   4. Limited Interest on Thrift deposits and Share capital must be paid to the member.  It is a charge to the Profit and loss Account.   5. Primary Coop. Society shall have member ship in its type of Federal Coop. Society and continue dealings with it.   6. Elected Managing Committee should be there.  7. Regular education and training programmes should be conducted for Members, the Managing Committee Members and Staff of the Society.
 |