HISTORY OF COOPERATIVE MOVEMENT INTERNATIONAL COOPERATIVE YEAR 2012

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HISTORY OF CO-OPERATIVE MOVEMENT INTERNATIONAL CO-OPERATIVE YEAR - 2012

HISTORY OF CO-OPERATIVE MOVEMENT INTERNATIONAL CO-OPERATIVE YEAR - 2012

HISTORY OF THE COOPERATIVE MOVEMENT PRESENTED BY: Advocate B. R. BORNAK M. Com. ,

HISTORY OF THE COOPERATIVE MOVEMENT PRESENTED BY: Advocate B. R. BORNAK M. Com. , M. A. , LL. B. , G. D. C. & A. , D. L. L. , D. J. M. C. , D. C. A. ADVOCATE – HIGH COURT - MUMBAI

ORIGIN OF WORD COOPERATION : • The term cooperation is derived from the Latin

ORIGIN OF WORD COOPERATION : • The term cooperation is derived from the Latin word cooperari, üwhere the word co means 'with' üand operari means 'to work'. • Thus, cooperation means working together. • So those who want to work together with some common economic objective can form a society which is termed as “cooperative society”. • Cooperative society works on the principle of self-help as well as mutual help.

ORIGIN OF COOPERATIVE MOVEMENT: ØROBERT OWEN (1771– 1858): • Born In 1771 At Newtown.

ORIGIN OF COOPERATIVE MOVEMENT: ØROBERT OWEN (1771– 1858): • Born In 1771 At Newtown. • In Early Days Worked As A Laborer In Factories And Shops. • Invented Small Spinning Machines. • Married To The Only Daughter Of The Owner Of The New Lenark Mills Glasgow. • After Death Of His Father-in-law, Became Owner Of The Mills. • Reduced Working Hours And Increased Wages of Workers. • Abolished Child Labour. • Formed Colony In New Harmony England On Mutual Help Basis. • Fathered The Cooperative Movement. • Inspired The Rochadale Pioneers.

ØTHE ROCHDALE PIONEERS: n At The End Of 1843, 28 Poor Weavers Joined Together

ØTHE ROCHDALE PIONEERS: n At The End Of 1843, 28 Poor Weavers Joined Together To Form The Rochdale Equitable Pioneers Society At Rochdale - England. n They are Known As Rochdale Pioneers. n Set Out The Rochdale Principles In 1844, Which Have Highly Influenced The Cooperative Movement. n Initially The Society Organized A Grocery Store. n A Venture Rapidly Prospered And Also Established Between 1850 And 1855 A Flour Mill, A Shoe Factory, And A Textile Plant. n Its Principles Proved As The Basic Code Of The

ØCOOPERATIVE MOVEMENT IN ENGLAND: n England is Birthplace Of Co-operative Movement. n Robert Owen

ØCOOPERATIVE MOVEMENT IN ENGLAND: n England is Birthplace Of Co-operative Movement. n Robert Owen and Rochdale Pioneers initiated this movement in England. Before Industrial Revolution: Agricultural Co-ops: n Primary - Three Categories: 1) Societies Supplying Farm Equipments; 2) Marketing Societies; 3) Service Societies. n Central Level - Agricultural Central Co-operative Association (ACCA)-1956. n National Level - National Federation: Co-operative Union Limited – 1869. n n n After Industrial Revolution: Consumer Co-operatives - To Protect workers From Capitalistic Economy. Problems Of Unemployment, Exploitation Of Workers.

Other Types Of Co-operatives In Uk: üCooperative Bank, Credit Union & Coop Savings Bank

Other Types Of Co-operatives In Uk: üCooperative Bank, Credit Union & Coop Savings Bank üCo-operative Wholesale Society üBuilding Cooperative üAgricultural Cooperative üHousing Cooperative üWorker Cooperative üMutual Insurance üRetailers' Cooperative üSocial Cooperative üUtility Cooperative üCo-operative Party - The Co-operative Party Now Has A Permanent Electoral Pact With The Labour Party

WORLD COOPERATIVE MOVEMENT Ø Ø Ø Ø FRANCE: Banking, Consumer GERMANY: Banking, Agriculture BELGIUM:

WORLD COOPERATIVE MOVEMENT Ø Ø Ø Ø FRANCE: Banking, Consumer GERMANY: Banking, Agriculture BELGIUM: Agriculture AUSTRIA: Farming, Service, Marketing. ITALY: Social, Health, Work integration. DENMARK : Agriculture FINLAND: Farming, Service, Marketing. NORWAY, AND SWEDEN: Dairy, Farming, Animal Husbandry SWITZERLAND: Consumer, Super markets ISRAEL: Farming MALAYSIA: BANKING, HOUSING, CONSUMER, TRANSPORTATION, AGRICULTURE, SMALL-MEDIUM INDUSTRY, DEVELOPMENT & SERVICE. Japan: Consumer, Agriculture. Korea: Agriculture, Finance/Banking. TAIWAN: Agriculture, Marketing. Thailand: Irrigation, Farming, Animal Husbandry, Dairy, Rubber, Police Patrol. Singapore: Super market, Credit, Service

COOPERATIVE MOVEMENT IN INDIA

COOPERATIVE MOVEMENT IN INDIA

CO-OPERATIVE MOVEMENT IN INDIA HAS PASSED INTO TWO PHASES: 1)Co–operative movement in pre-independence era.

CO-OPERATIVE MOVEMENT IN INDIA HAS PASSED INTO TWO PHASES: 1)Co–operative movement in pre-independence era. 2)Co-operative movement in post–independence era.

BACKGROUND § Cooperative Movement In India Is More Than 100 Years Old. § During

BACKGROUND § Cooperative Movement In India Is More Than 100 Years Old. § During British Rule Money Lenders was the only source for farmers to raise funds. § They Used To Charge 37% To 76% Interest to farmers. In protest Strong Agitation By Farmers. § § In 1892 Sir Derrick Nicholson Was Directed To Study Problem Of Farmers And Give Suggestions. § He Suggested To Establish Agriculture Credit Bank On the Line Of One Established By Mr. Raiffeisen In Germany.

CO-OPERATIVE MOVEMENT IN PRE-INDEPENDENCE ERA: n In 1901: Second Famine Commission Recommended: To carry

CO-OPERATIVE MOVEMENT IN PRE-INDEPENDENCE ERA: n In 1901: Second Famine Commission Recommended: To carry out Development activities and setting up of new institution like co-operative societies. Government had accepted many of the recommendations. n The Co-operative Credit Societies Act, 1904. n n ü ü ü “ The Cooperative Credit Societies Act 1904” - Beginning of Cooperative Movement In India. Main Objective Was To Make Farmers Free From The Clutches Of Money Lenders. This Was Beginning Of Agriculture Credit Cooperative In India. Co-op. movement was officially set up and recognized.

ACT OF 1904 SUGGESTED TWO MODELS OF CREDIT SOCIETIES : Ø Ø i) One

ACT OF 1904 SUGGESTED TWO MODELS OF CREDIT SOCIETIES : Ø Ø i) One for rural areas and Other for urban areas. Due to this Act a number of Co-operative Societies grew up in rural areas. But they could not function Government reluctance. effectively because of ACT 1904: MAJOR DEFECTS: There was no provision for setting up of Non credit Co-operative Societies in rural areas. ii) No special Central agency was created for financing and supervising the activities of these primary societies. iii) The division of the Credit Co-operative Societies into two types rural and urban stood as a barrier since no specific arrangements could be done for either due to the overlapping nature of societies.

§ Co-operative Societies Act, 1912: § To overcome defects of Act of 1904 a

§ Co-operative Societies Act, 1912: § To overcome defects of Act of 1904 a comprehensive Co-operative Societies Act was passed in 1912. § It was named as “The Co-operative Societies Act, 1912” and in real sense a good effort was made to spread co-operative movement in all sectors of the Indian Economy. § “ The Cooperative Societies Act 1912” - New Act Was Passed For Setting Up Non-agriculture Credit Cooperative Societies In India. Ø In spite of this effort the movement could not achieve much more. § In 1919 a Commission headed by Montegue Chelmsford was appointed to study the reasons and suggest certain measures for Reforms. § They Recommended For Transferring The Subject “Cooperation” To State (At That Time Province) Governments. And Thus It Was Made State Subject. Co-operative Movement during 1919 to 1929 was Defines as ‘ Unplanned Developement’ by Ramdas Pantalu. § n

ØIn 1928 -29 the world experienced worldwide economic depression. ØThe prices of agricultural commodities

ØIn 1928 -29 the world experienced worldwide economic depression. ØThe prices of agricultural commodities fell down to a great extent. Øunemployment along with other economic crisis grew up. ØThere was no way to repay the loan. ØThis brought many co-operative societies in to a standstill position. ØThe Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 was passed and the RBI commenced operations on April 1, 1935. ØThe Bank began its operations by taking over from the Government the functions so far being performed by the Controller of Currency and from the Imperial Bank of India, the management of Government accounts and public debt. Ø The bank took some initiatives to recognise co-operative movement. ØIt established a separate department for a co-operative credit. ØIt helped to keep the movement alive which was gradually decaying.

ØIn 1937, Congress Government came to power. ØThey made Efforts to organise and extend

ØIn 1937, Congress Government came to power. ØThey made Efforts to organise and extend the movement. ØHowever Much progress could not be done. Ø Outbreak of Second World War 1939 to 1945. ØMinistry resigned. ØBritish Government again took charge. ØWar gave a boost to co-operative societies. ØSudden increase in demand prices of agricultural products and other food grains. ØFarmers got extra economic gains. ØNon credit societies grew up. ØWorking capital of co-op. societies also increased. ØNumber of Different types of co-operatives increased rapidly. ØThe co-operative movement gathered momentum. Ø The all India Co-operative planning Committee in 1945 also worked a lot in this direction.

Co-operative movement in Post independence Era: n n For the first development. 3 years

Co-operative movement in Post independence Era: n n For the first development. 3 years no significant Mainly due to partition and absence of concrete program. Importance was given to strengthen cooperative structure. Various provisions were made through Five Year Plans.

IN INDIA COOPERATIVE HAS SIGNIFICANT CONTRIBUTION IN THE FOLLOWING AREAS: 1. AGRICULTURE CREDIT 2.

IN INDIA COOPERATIVE HAS SIGNIFICANT CONTRIBUTION IN THE FOLLOWING AREAS: 1. AGRICULTURE CREDIT 2. AGRICULTURE DISTRIBUTION 3. AGRICULTURE MARKETING 4. AGRICULTURE SERVICE 5. AGRICULTURE BASED INDUSTRY 6. ALLIED AGRICULTURE SECTOR. 7. DAIRY, FISHERY, ANIMAL HUSBANDARY, POULTRY ETC. 8. SUGAR, TEXTILE ETC. PRODUCTION ACTIVITIES. 9. BANKING, CREDIT, CONSUMER SOCIETIES. 10. CO-OPERATIVE HOUSING. 11. MINING CO-OPERATIVES. AND SO MANY …

CO-OPERATIVE MOVEMENT IN MAHARASHTRA § In 1919 a Commission headed by Montegue Chelmsford was

CO-OPERATIVE MOVEMENT IN MAHARASHTRA § In 1919 a Commission headed by Montegue Chelmsford was appointed to study the reasons behind failure of co-operative movement in India and to suggest certain measures for Reforms. § They Recommended For Transferring The Subject “Cooperation” To State (At That Time Province) Governments. And Thus It Was Made State Subject. In 1925 for then Bombay State “The Bombay Co-operative Societies Act, 1925 was passed. In 1956 “The States Reorganisation Act, 1956” was passed by Parliament by passing Constitution (Seventh Amendment) Act, 1956. THE BOMBAY RE-ORGANISATION ACT, 1960 was passed by the Bombay State Assembly on 25 th April, 1960. 1 st May 1960: Division of the Bombay State and formation of Gujarat and Maharashtra States. The Maharashtra Government passed “The Maharashtra Co-operative Societies Act, 1960. § § § n

AMUL – A GRAND SUCCESS IN CO-OPERATIVE SECTOR n n Amul (Anand Milk Union

AMUL – A GRAND SUCCESS IN CO-OPERATIVE SECTOR n n Amul (Anand Milk Union Limited), formed in 1946, is a Dairy co-operative movement in India. Which today is jointly owned by some 2. 6 million milk producers in Gujarat , India. AMUL is based in Anand, Gujarat and has been a sterling example of a cooperative organization's success in the long term.

HISTORY OF CO-OPERATIVE PRINCIPLES

HISTORY OF CO-OPERATIVE PRINCIPLES

n n Ø Ø Ø n Ø Ø In 1895 International Co-operative Alliance (ICA)

n n Ø Ø Ø n Ø Ø In 1895 International Co-operative Alliance (ICA) Was Established. In 1937 -ICA Declared Rochdale Principles As Co-operative Principles: Rochdale Principles: Main Principles: 1) Open And Voluntary Membership, 2) Democratic Management, 3)limited Interest On Capital, 4) Distribution Of Surplus In Proportion Of The Transactions, 5) Co-operative Education, 6)co-operation Among Co-operators. Secondary Principles: 1) Cash Transactions, 2) Equal Rights And Responsibilities To Both Men And Women Irrespective Of Caste, Creed And Religion, 3) Neutrality In Political And Religious Matters, 4) Service Motive – Human Service, 5) Limited Responsibility, 6) Publicity And Propaganda, 7) Thrift And Savings. Co-operative Values: 1) Economic Independence, 2) Humanity, 3) Honesty, 4) Service Spirit.

CHANGES IN COOPERATIVE PRINCIPLES: • In 1964 Ica Appointed Dr. D. G. Karve (India)

CHANGES IN COOPERATIVE PRINCIPLES: • In 1964 Ica Appointed Dr. D. G. Karve (India) Commission For Reconstruction Of Co-operative Principles. • In 1966 International Conference Was Held At Vienna. • Co-operative Principles As Suggested By Dr. D. G. Karve Commission Were Accepted As New Co-operative Principles. ØCo-operative Principles As Suggested By Dr. D. G. Karve Commission: ü 1) Open And Voluntary Membership, ü 2) Democratic Management, ü 3)limited Interest On Capital, ü 4) Minimum Profit And Its Equitable Distribution, ü 5) Co-operative Education, ü 6)co-operation Among Co-operators. üThese Principles Remained In Practice Upto 1995.

RECONSTRUCTED COOPERATIVE PRINCIPLES: ØIn The Centenary Celebration Of International Co-operative Alliance (Ica) – 16

RECONSTRUCTED COOPERATIVE PRINCIPLES: ØIn The Centenary Celebration Of International Co-operative Alliance (Ica) – 16 th To 23 rd September 1995, The Following Co-operative Principles Were Accepted As Reconstructed Cooperative Principles As Suggested By The Study Group Under Iyan Makforson (Dean – Arts And Commerce College – British Columbia. ü 1) Open And Voluntary Membership, ü 2) Democratic Management, ü 3) Autonomy And Independence, ü 4) Education, Training And Publicity Of Information, ü 5) Economic Participation Of Members, ü 6) Co-operation Among Co-operators. ü 7) Care With Responsibility About The Society (Public).

FOR ANY FURTHER CLARIFICATION…. CONTACT: ADVOCATE B. R. BORNAK M. Com. , M. A.

FOR ANY FURTHER CLARIFICATION…. CONTACT: ADVOCATE B. R. BORNAK M. Com. , M. A. , LL. B. , G. D. C. &A. , D. L. L. , D. J. M. C. , D. C. A. ADVOCATE-HIGH COURT MOBILE NO. : 9869450525 Mail ID: advbrbornak@gmail. com