Unit - 4
Unit - 4
• Meaning and Objectives
• Development of Cooperatives in rural areas
• Cooperative credit societies
• Evolution of some successful cooperative organization
• Cooperative Marketing
Introduction
• The term co-operation is derived from the Latin word co-operari,
where the word co means ‘with’ and operari means ‘to work’.
• Those who want to work together with some common economic
objective can form a society which is termed as “co-operative society”
• It is a voluntary association of persons who work together to promote
their economic interest and works on the principle of self-help as
well as mutual help.
Definition of Cooperatives
• "A form of organization in which persons voluntarily associate together as
human beings on the basis of equality for the promotion of the economic
interest of themselves" - H Calvert.
• "The act of persons, voluntarily united, for utilizing reciprocally their own
forces, resources or both under their arrangement to their common profit or
loss“- M T Herrick.
• Cooperatives are based on the values of self-help, self-
responsibility, democracy, equality, equity, and solidarity. In the
tradition of their founders, cooperative members believe in the
ethical values of honesty, openness, social responsibility and caring
for others. – ICA
• A Co-operative is a distinct form of organization in contrast to any
other system, it is not private enterprise, nor public enterprise; it is
neither capitalism nor socialism of different hues and colours. While
there may be something in it of this or that, it has its own distinct
philosophy of human society where men will be the happiest.
Characteristics of Cooperatives
• It is an association of persons
• It is an enterprise and not a charitable association
• The members not only share the gain but also share the risk
• It is a voluntary organization with democratic management
• The main objective is not profit but service to the members
• It serves to relatively weaker section of the community for their
socio-economic development
• It educates people the principles of equality, mutuality, and co-
operation
Principles of Co-operative
1. Voluntary and Open Membership
2. Democratic Member Control
3. Member Economic Participation
4. Autonomy and Independence
5. Education, Training and Information
6. Co-operation among Co-operatives
7. Concern for Community
Objectives of Cooperatives
• To develop self reliance, cooperation and mutual respect among
members
• To undertake activities beneficial for the development of members
• To increase savings, investment and purchasing power of members
• To provide assistance to members
• To generate employment opportunities
• To induce rural development
Cooperatives…………. Till now
• Earliest cooperatives were set up around 1761-1845 in Scotland,
France, England and Germany.
• Cooperative Movement can be credited to Rochdale Pioneers who
established a co-operative consumer store in North England.
• Father of cooperative movement in India – Mr Frederic Nicholson.
• In the conclusion of a study conducted by him paved the way for
'Cooperative Movement’ around 1895.
In 2019 We completed 115 years of
cooperative societies in India
• The Co-operative Credit Societies Act in 1904 was passed.
• The Act allowed the formation of credit societies only.
• Ten or more persons of the same village or of the same tribe or of the
town might apply for forming a co-operative society.
• The primary objective of this act was to extend credit facilities in
adequate measure at a cheap rate of interest
• Department of Agriculture, Cooperation and Farmers' Welfare,
Ministry of Agriculture and Farmers' Welfare, Govt. of India
• The Multi-State Cooperative Societies Act, 2002
• It extends to the whole of India.
• This Act shall apply to all cooperative societies, with objects not
confined to one State which were incorporated before the
commencement of this Act & all multi-State cooperative societies
