What are the reasons behind the limited success of the co-operative movement? How can co-operatives be made more effective in fostering rural development?
Main Body
Cooperatives are of all associations of people who come together to a share common economic interests as - AMUL cooperative of milk producers. Cooperatives have played vital role in economic upliftment of people at grassroot. However, several factors has led to their limited success- 1) Regional disparity - In south-India cooperatives are largely concentrated and state like Bihar, Jharkhand are not seen in growth of cooperatives. 2) Political interference - A major cause for limited success whereby local elites have captured the whole machinery for their benefit. 3) Dual control over coop-banks - It has led to lack of due diligence by banks eg - IMCLARE. 4) Poor social capital - major thought
which led to squash of cooperative in mutual trust among members. In case it do missing a viable cooperative can't be imagined. 1. Buyers - lack of professionalism, lack simple delivery. How to make more effective in rural development - 2. Build social capital - by sensitizing the people and help them understand mutual benefit that can be drawn. 2. Improve governance - with proper elections, following a transparent governance mechanism, decision are taken in a fair & inclusive manner. 3. Digitalization - use of ICT to improve governance, being transparency like - discussing digital teams. 4. Training programme - to build information, enhance credit pool and focus margins with poor cooperative growth. With successful examples of cooperatives in uplifting rural economy like IFCO further focus on this sector can help ensure sustainable path and saber VIKRAM.
Utkarsh Pathak
Development Processes - Role of NGOs, SHGs, Donors, and other Stakeholders
NGOs and SHGs
Co-operative movement and rural development
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formal analytical
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