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cooperatives-their history, why formed, identity and principles, development in different countries, reasons of their success and failure..
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PARAMJIT SHARMA
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
PARAMJIT SHARMA
COOPERATIVES
PARAMJIT SHARMA
COOPERATIVES
AN AUTONOMOUS ASSOCIATION OF PERSONS
UNITED VOLUNTARILY TO MEET THEIR COMMON
ECONOMIC, SOCIAL AND CULTURAL NEEDS
THROUGH A JOINTLY OWNED AND
DEMOCRATICALLY CONTROLLED ENTERPRISE.
PARAMJIT SHARMA
COOPERATIVES
3 Characteristics of Coops
USEROWNER
USERBENEFITS
USERCONTROL
PARAMJIT SHARMA
COOPERATIVES
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
PARAMJIT SHARMA
COOPERATIVES
Cooperatives-3 perceptions
As Socialist CooperativesAs a Special form of BusinessAs a third sector of Economy
PARAMJIT SHARMA
COOPERATIVES
Socialist Type of Coop Society
Instrument of the state Transform pvt. Property to collective propertyWhat cant be Nationalized is cooperativesedTo implement state economic plansEducate members in socialist way of livingTransformed in 90’s-still some traces left
PARAMJIT SHARMA
COOPERATIVES
Coop As A Special Form of Organisation
An enterpriseProfessionalsFace competitionServing ownersEconomies of Scale
PARAMJIT SHARMA
COOPERATIVES
Coop As Third Sector Of Economy
•Different enterprise than Private/Public
•Social/Mixed Economy
•Based on Coop Principles & values
PARAMJIT SHARMA
COOPERATIVES
PARAMJIT SHARMA
COOPERATIVES
THE WEAVERS
Rochdale Pioneers
PARAMJIT SHARMA
COOPERATIVES
Rochdale Equitable PioneersSociety, 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
PARAMJIT SHARMA
COOPERATIVES
Friedrich Raiffeisen(1818 - 1888)
German Coop LeaderMayor Of Many CitiesFounded First Credit Union-1864
Established Coop Credit Model
PARAMJIT SHARMA
COOPERATIVES
Robert Owen (1771-1858)
Improving Working Conditions
Coop Communities in UK & USA (Housing Cooperatives)
Limit Child work in Factories
PARAMJIT SHARMA
COOPERATIVES
Hermann Schultze (1808-83)
German Cooperative Pioneer
Introduced Self-Help Concept
Founded Peoples’ bank
Introduced Workers Coops
PARAMJIT SHARMA
COOPERATIVES
Cooperative Rainbow Flag
PARAMJIT SHARMA
COOPERATIVES
JAPAN RURAL ECONOMIC DEV.
U.S.A RURAL ELECTRIFICATION
INDIA DAIRY, SUGAR COOPS.
ICELAND CONSUMERS, AGRL, BANKING
FRANCE CREDIT & BANKING
SWEDEN CONSUMERs
MALAYSIA INSURANCE
ITALY LABOUR, INDUSTRIAL
SectorDevelopedThrough
Cooperatives
PARAMJIT SHARMA
COOPERATIVES
Large Land HoldingRequiring Joint Efforts
People Exploitation
U.K., Sweden, Japan, Korea
JAPAN, KOREA
USA, CANADA
SWEDEN, U.K.
JAPAN, U.K., INDIA, ITALY
CANADA, BRAZIL, U.K.JAPAN, USA, GERMANY
Industrialisation
Urbanisation
Formation of Cartels
Medical Services, TransportHousing, Electricity, Credit
CountriesFactors For Formation Of Coops
PARAMJIT SHARMA
COOPERATIVES
Cooperative Values & Principles
PARAMJIT SHARMA
COOPERATIVES
BASED ON BASED ON
SELF HELP
MUTUAL RESPONSIBILITY
EQUALITY
EQUITY
SOLIDARITY
PRACTICEPRACTICE
HONESTY
OPENNESS
SOCIAL RESPONSIBILTY
COOPERATIVE VALUES
PARAMJIT SHARMA
COOPERATIVES
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
PARAMJIT SHARMA
COOPERATIVES
ICA REFORMED PRINCIPLES – 1960s
VOLUNTARY AND OPEN MEMBERSHIP
DEMONCRATIC CONTROL
DISTRIBUTION OF SURPLUS
LIMITED INTEREST ON SHARE CAPITAL
COOPERATIVE EDUCATION
COOPERATION AMONG COOPERATIVES
PARAMJIT SHARMA
COOPERATIVES
VOLUNTARY & OPEN MEMBERSHIP
DEMOCRATIC MEMBER CONTROL
MEMBER ECONOMIC PARTICIPATION
AUTONOMY & INDEPENDENCE
EDUCATION, TRAINING & INFORMATION
COOPERATION AMONG COOPERATIVES
CONCERN FOR COOPERATIVES
1995 ICA PRINCIPLES
PARAMJIT SHARMA
COOPERATIVES
Cooperative Forms & Structure
PARAMJIT SHARMA
COOPERATIVES
CREDIT
LONG SHORTTERM TERM
BANKS
CREDIT SOCIETIES
NON CREDIT
CONSUMERSHOUSINGSUGARDAIRYFISHERIESTRANSPORTINDUSTRIALMARKETINGTRIBALWORKERS
PARAMJIT SHARMA
COOPERATIVES
Others
Rural ElectrificationCollective FarmingCoop CompaniesFloricultureSocial ForestryNew GenerationUtility CoopsProcessing Insurance
PARAMJIT SHARMA
COOPERATIVES
Baby SittingHealth CareCar SharingEducationFuneral ServiceSocial SecurityWater PreservationTourismRegenerative Energies
New Areas
PARAMJIT SHARMA
COOPERATIVES
Cooperative Structure
APEX
REGIONAL
PRIMARIES
PARAMJIT SHARMA
COOPERATIVES
Cooperative Development in Different Countries
PARAMJIT SHARMA
COOPERATIVES
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 - ConsumersHamburg- Consumer Coop. ‘Production’
Structure---Primary, Regional, Federal
PARAMJIT SHARMA
COOPERATIVES
United Kingdom
Rochdale - 1844 (Consumers)
Robert Own - Labour Reforms & housing
Cooperative GroupInsuranceFarmcarePharmacyBankingConsumersTravel CareEstate ManagementFuneral Care
PARAMJIT SHARMA
COOPERATIVES
KF (Group)
Sales 3 Billion Euro Dollars
Employees 19000
Stores 824
Members 24,33,000
VAR GARD (SCC)
Coop. Norden
Sweden
PARAMJIT SHARMA
COOPERATIVES
Coop NKL FDB KF
members members members
Coop Norden AB
CoopNorway
Coop Denmark
Coop Sweden
Coop.Norden -a coop.group ofcompanies
Coop.Norden
PARAMJIT SHARMA
COOPERATIVES
Coop Norden
• 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)
Sweden
PARAMJIT SHARMA
COOPERATIVES
Canada
Agricultural & Marketing Coops
Canadian Cooperative Association- Union
Wheat Pools - Alberta in 1923
Wholesale Societies
Federation of wholesale Societies
Credit Unions - Desjardins of Quebec
PARAMJIT SHARMA
COOPERATIVES
Russia
Labour Artels
Consumers - Centrosoyus
Collective Farming
Agricultural Cooperatives
PARAMJIT SHARMA
COOPERATIVES
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
PARAMJIT SHARMA
COOPERATIVES
China
Shanghai National Coop. Saving Bank 1912Cooperative Union - 1921 Indus-Co - after Japanese warAgricultural Coop.-1952 after land reformsCooperative Commune - 1958 (Sputnik) (Collective Farming)Supply & Marketing CooperativesCredit Cooperatives
PARAMJIT SHARMA
COOPERATIVES
JapanNorinchukin Bank -1923 Central Financing Bank for Agri, Forestry & Fishery CooperativesZen-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
PARAMJIT SHARMA
COOPERATIVES
Ukraine
Ukrainian National Association of Savings & Credit Union
US Aid set up 10 model Credit Unions
CIDA set up Ukraine Credit Union Dev. Project
PARAMJIT SHARMA
COOPERATIVES
EstoniaFirst Cooperative Store in ANTSLA - 1902Consumer Cooperative Union - ETKCooperative RestaurantsHousing CooperativesSmall workers-owned Cooperatives in Service SectorEarlier collective farming now privatizedCoop. Chamber in 1936 undertaking banking, insurance, retail & wholesale, industry resource
PARAMJIT SHARMA
COOPERATIVES
Mauritius
Cooperative act - 2005Regional Cooperative Centres to facilitate supervision, coordination, participative planning & communicationCoop. Business Centres - multipurpose socs.National Coop. Training CentreThree Tier Structure
PARAMJIT SHARMA
COOPERATIVES
No. of Cooperatives : .5 ml
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
INDIA
PARAMJIT SHARMA
COOPERATIVES
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
SHARE OF COOPERATIVES IN
INDIAN ECONOMY INDIA
PARAMJIT SHARMA
COOPERATIVES
Short-Term Structure Long-Term Structure
State Cooperative Banks (30)
State Cooperative Agriculture & Rural Development Banks
(SCARDBs) (20)
District Central Cooperative Banks
(367) Branches (887)
Primary Cooperative Agriculture and Rural Development Banks Development Banks
(PCARDBs) (768)
Primary Agricultural Cooperative Societies
(PACS)(1,12,309)
Credit institutions
PARAMJIT SHARMA
COOPERATIVES
Development Agencies For Cooperatives
PARAMJIT SHARMA
COOPERATIVES
ILO*ESTD-1919*RECOM-127/193*NPA-1969*TURIN CEN.*MATCOM*COPNET
ICA*ESTD-1895*FOUR REG. OFFICES*PRINCIPLES*CORD.INT. AGENCY*TRG. &DEV.*ADVOCACY
FAO*ESTD-1943*COOP. AGR. DEV.*DIST. OF FOOD & AGR. PRODS.
COPAC*PROMOTE AID TO COOPS
*UNDERTAKE STUDIES*STRUCTL. DEVELOPMENT
*PREP. COUNTRY STATUS REPORTS
WOCCU*ESTD-1984*WORLD CREDIT UNION*PROMOTE EC. & SOCIAL DEV.*UNDERTAKE DEV. PROJECTS*INTEGRATE CREDIT COOPS.
INTERNATIONAL DEVELOPMENT AGENCIES
PARAMJIT SHARMA
COOPERATIVES
International Agencies
ICAILOCOPACFAOIFADSIDA CCA
Indian agencies
NCDCNABARDNCUICOOP.DEPTS.TRG.INSTIUTUTIONS
PARAMJIT SHARMA
COOPERATIVES
Success , Pitfalls & Misconceptions About Cooperatives
PARAMJIT SHARMA
COOPERATIVES
Credit Movement to farmersLargest Human Force after UNOCollective FarmingConsumers CooperativesDemocratic InstitutionsTransparent OrganisationsConcern For CommunityDairy/Sugar/Housing…..CoopsAlleviation of PovertyCreation of productive employment
Contributionof Coops.
PARAMJIT SHARMA
COOPERATIVES
• NEED BASED
• PROFESSIONAL GOVERNANCE
• COOP VALUES AND PRINCIPLES
• STRONG CAPITAL BASE
• IT INTERVENTIONS
SUCCESS FACTORS
PARAMJIT SHARMA
COOPERATIVES
Ideological diff in Goals
Unprofessional Management
Poor Governance
Inadequate Capital Base•Lack of Member Participation
•Oversensitivity to Members
•Inappropriate Strategies
•Too Many Legislative Controls
Why coopsAre coaxed
For poorPerformance
PARAMJIT SHARMA
COOPERATIVES-MISCONCEPTIONS
DOMINANCE BY BIG MEMBERSSHIFT IN REAL PURPOSE
COOPS ARE FOR POORCOOP VALUES OR PRINCIPLES
MEMBERS CARECOOPS ARE SOCIAL ORGS
SARKARI ORGANISATIONS
PARAMJIT SHARMA
COOPERATIVES
Cooperatives—Future Implications
PARAMJIT SHARMA
COOPERATIVESFuture 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
PARAMJIT SHARMA
COOPERATIVES
Increase Size & Vertical Integration Market Friendly & Members FriendlyDevelop & Train HR- members, leaders, staff..Forge Strategic AlliancesEncourage Members Participation—servicesDevelop & Retain Symbiotic relations with GovtImprove Business Efficiency
-options available
PARAMJIT SHARMA
COOPERATIVES-options available
•Improving Business Efficiency
Professional ManagementBoard CompositionEmpower Exc. ManagementTrainingReducing Cost To Meet CompetitionManaging Resources- Members, Leaders
PARAMJIT SHARMA
COOPERATIVES
-Stressing Membership Advantages
Services Commitment Education
Successful Coops of Future will Be One’s That Do it BEST
PARAMJIT SHARMA
COOPERATIVES-choice for the future
1Continue
2 Change Identity
3 Changeenvironment
Capital crisisCredibilityManagerialideology
GraduallyDie
FormCoop
Company
Tackling Crises
LosingIdentity
Develop &
Compete
PARAMJIT SHARMA
COOPERATIVES-choice for the future
1Continue
Capital crisisCredibilityManagerialideology
GraduallyDie
CreditNPA,FUNDS
DCCB’SSec-11BR Act
SugarProduction
loansHousingMissed
Opportunities
MarketingWeak
Primaries
CONSUMERSLost Govt.Support
PARAMJIT SHARMA
COOPERATIVES-choice for the future
3 Changeenvironment
Tackling CrisesDevelop
&Compete
CAPITAL•Generate Internally•Explore New Ideas
Managerial•Professionalism•Develop H Resource
Ideology•Definition•Values•Principles•Strengthening •People•Cooperative •Collaborations
Credibility
•Image
•Technology
•Need based
•Governance
PARAMJIT SHARMA
COOPERATIVES
THANKS
