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Akansh DhullAIR 3· 2025

Question Q.5GS2GS2

A middle point between socialism and capitalism, cooperatives bring the best of the both worlds. Assess the utility of the cooperative model in effecting rural prosperity.

Open scan (p.11)

Introduction

"Cooperatives can ensure privatisation of losses while socialisation of profits". Cooperatives refer to a group body which functions on the principle of one person-one vote (Eg Amul). "Nothing has displaced more people besides war or wildlife conflict"

37 words

Main Body

Cooperative Model in Rural Prosperity

Benefits

1Provides economies of scale - Helps eliminate middleman - Create networks and access the market (Eg AMUL model)
2Focus on inclusive growth - Ownership is based on membership and thus benefits distributed among all
3Rural leadership - Cooperatives are avenues to promote rural leaders who can later

participate in representative politics (Eg Seen in Maharashtra)

4Fulfill rural demands and interests (Eg IFFCO)
5Focus on activities from bottom up approach -> Creates better multiplier effect
6Creates rural employment, skills, access to credit, financial inclusion

Challenges in Cooperative Model

1Politics in cooperatives and dominance of some
2Lack of elections despite elaborate provisions in Constitution
3Regulatory challenges of multistate cooperatives
4Corruption issues (Eg High NPA in Cooperative Banks)

Forest Rights Act, 2006 -> Features

Fortress Conservation & Participative Conservation
Rights to local tenancy -> MFP
Forest Council for tenancy
local practices in management

Success

1Right to livelihood to tribal (Art 21)
2Better income opportunities (Eg local rights, MFP rights)
3Democratic decentralisation on ground

Challenges

1Only 37% of claims accepted (NGO's)
2Encroachment (Nittur gram)
3SC order to evict -> no policy consensus

PESA Act, 1996

Features: Extensions to 73rd, 74th CAA to 5th Schedule areas, Enhanced powers to Gram Sabha (Eg MFP, Minor Mineral, Minor Waterbody), Tribal Specific

Success

1Democratic decentralisation and tribal leadership
2Reduced 3D's (Dispossession, Disharmony, Displacement)
3local benefit of resources

Weakness

1Stronghold of local Bureaucracy
2Inept role of gram Sabha
3Corruption at local level

Measures to make them more effective

1Saxena Committee recommended increase role of Gram Sabha in FRC
2Continuous approval and grievance redressal mechanism to curb corruption
3Awareness about rights of tribals and using Rwandan model (Ploughing back profits)
305 words2 paragraphs4 bullet points

Conclusion

Cooperatives should be integrated with SHG and LSG with better monitoring by NGO's to create inclusive, all encompassing institutions. "The success of a State is dealt with how it treats its vulnerable section" - Threat of tribals should transform to tremendous opportunities.

42 words

Diagram

Diagram showing FRA 2006 features branching to Fortress Conservation & Participative Conservation, Rights to local tenancy->MFP, Forest Council for tenancy, local practices in management

  • Uses quotes
  • Structured points
  • Real examples like AMUL
  • Comprehensive challenges list
  • Concrete examples like IFFCO
  • Balanced view
  • Strong opening quote
  • Balanced success-challenge table
  • Constitutional linkage (Art 21)
  • International comparison (Rwandan model)
  • Committee reference (Saxena Committee)
  • Strong concluding quote

Topper

Akansh Dhull

AIR 32025Political Science and International Relations

Subject & Paper

GS2GS2

Topic

Government Policies and Interventions - Design, Implementation and Issues

Government Schemes and Policies

Cooperative Model in Rural Development

Writing Stats

384

Total words

2

Paragraphs

4

Bullets

analytical

Tone