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Assignment On Cooperative Society
Assignment On Cooperative Society
In some countries, e.g. Finland and Sweden, there are specific forms of incorporation for
cooperatives. Cooperatives may take the form of companies limited by shares or by
guarantee, partnerships or unincorporated associations. In the UK they may also use the
industrial and provident society structure. In the USA, cooperatives are often organized as
non-capital stock corporations under state-specific cooperative laws. However, they may
also be unincorporated associations or business corporations such as limited liability
companies or partnerships; such forms are useful when the members want to allow
Neither of which may be allowed under local laws for cooperatives. Cooperatives often
share their earnings with the membership as dividends, which are divided among the
members according to their participation in the enterprise, such as patronage, instead of
according to the value of their capital shareholdings.
Cooperatives are dedicated to the values of openness, social responsibility and caring for
others. Such legal entities have a range of social characteristics. Membership is open,
meaning that anyone who satisfies certain non-discriminatory conditions may join.
Economic benefits are distributed proportionally to each member's level of participation in
the cooperative, for instance, by a dividend on sales or purchases, rather than according to
capital invested.
The United Nations has declared 2012 to be the International Year of Cooperatives (IYC)
Cooperation dates back as far as human beings have been organizing for mutual benefit.
Tribes were organized as cooperative structures, allocating jobs and resources among
each other, only trading with the external communities. In alpine environments, trade could
only be maintained in organized cooperatives to achieve a useful condition of artificial roads
such as Viamala in 1472. Pre-industrial Europe is home to the first cooperatives from an
industrial context. Robert Owen (1771 - 1858) was a social reformer and a pioneer of the
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cooperative movement. In 1761, the Fenwick Weavers' Society was formed in Fenwick,
East Ayrshire, Scotland to sell discounted oatmeal to local workers. Its services expanded
to include assistance with savings and loans, emigration and education. In 1810, Welsh
social reformer Robert Owen, from Newtown in mid-Wales, and his partners purchased
New Lanark mill from Owen's father-in-law David Dale and proceeded to introduce better
labour standards including discounted retail shops where profits were passed on to his
employees. Owen left New Lanark to pursue other forms of cooperative organization and
develop co-op ideas through writing and lecture. Cooperative communities were set up in
Glasgow, Indiana and Hampshire, although ultimately unsuccessful. In 1828, William King
set up a newspaper, The Cooperator, to promote Owen's thinking, having already set up a
co-operative store in Brighton. The Rochdale Society of Equitable Pioneers, founded in
1844, is usually considered the first successful cooperative enterprise, used as a model for
modern co-ops, following the 'Rochdale Principles'. A group of 28 weavers and other
artisans in Rochdale, England set up the society to open their own store selling food items
they could not otherwise afford. Within ten years there were over 1,000 cooperative
societies in the United Kingdom. Other events such as the founding of a friendly society by
the Tolpuddle Martyrs in 1832 were key occasions in the creation of organized labor and
consumer movements.
Co-operative in Indo-Asia:
The history of co-operative movement in Indo-Asia has passed into two phases. They are:
• Co-operative movement in pre-independence era.
• Co-operative movement in post-independence era.
In 1892, Derrick Nicholson, tried to find out ways and means to establish institutions so as
to help the agricultural sector. He gave the suggestions for setting of co-operative societies.
Within that decade, India faced a terrible famine in 1899. In 1904, the Co-operative
Societies Act was passed, which was an official recognition to the co-operative movement.
Later it was widened under the Act of 1912. The aim was to help the rural farmers and
artisans by providing short term and long term loans. These credit societies were organized
on the basis of two models, one for rural area and other for urban area. For the farmer
these were organized on Reinfusion Model while for the latter it was Schulze Delitzxch
Bank Model. Due to this Act a number of Co-operative Societies grew up in rural area, but
they could not function effectively.
After the first world war, following the classic review of the Maclagan Committee on co-
operative in 1915 with far reaching constructive proposals, the transfer under the
Government of India Act 1919 of co-operation to the control of Provincial Governments
took place. This gave the respective provincial Governments to shape the movement in
view of the need of the individual province. The movement made rapid expansion till 1930.
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Within five years there was an increase of 36,000 co-operative societies. In the year 1928
we saw a world wide economic depression. The prices of agricultural commodities fell
down to a great extent and unemployment along with other economic crisis grew up. The
creditors had no way to repay the loan. This brought many co-operative societies in to a
stand still position. In year 1937, the popular Congress Government came to power in
several states. The popular leasers took much more initiative in organizing and extending
this movement. But much progress could not do due to outbreak of Second World War.
During this time, the ministry resigned. It was left in the hands of British Government again.
But the war itself gave a boost to co-operative societies. The war brought a sudden
increase in the prices of agricultural products and other food grains. The rural farmer got
extra economic gains. Non credit societies grew up. The working capital of co-operative
societies also increased. The number of different credit and non credit co-operatives
increased rapidly. The co-operative movement gathered momentum. The all India Co-
operative planning committee in 1945 also worked a lot in this direction.
Co-operative in Bangladesh:
Co-operative in Bangladesh has passed its century on its way. In initial stage though it
functioned with agriculture only, now it is working with economic spheres. Considering its
competency and effective utility in post-independent Bangladesh Co-operative Society is
constitutionally recognized as on the most important sectors of the economy. Truly Co-
operative is established as a social issue. And for this reason the man who contributed
much is Dr. Akther Hamid Khan. On November 06 Bangladesh observed National
Cooperative Day throughout the country every year. On the occasion of 39th National
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Cooperative Day‟s inaugurating at Bangabandhu International Conference Centre in Dhaka
city, Prime Minister Sheikh Hasina directed the local government, rural development and
cooperatives ministry "to finalise a national cooperative policy on an urgent basis to infuse
dynamism into cooperative activities," adding that her government "will do whatever is
necessary to spread the cooperative movement across the country to ensure socio-
economic and cultural emancipation of the people."
In 1904, the British government promulgated the Cooperative Societies Act, thereby
encouraging the formation of cooperative societies, especially agricultural cooperative
credit societies, all over India. An amended cooperative societies law was enacted in 1912
to make the Cooperative Movement stronger. It was further amended in 1940 by the Bengal
Legislative Council to enact the Bengal Cooperative Societies Act to make the movement
more effective. This law was in force in Bangladesh until 1984, when it was replaced by the
Cooperative Societies Ordinance. At present, all cooperative societies are regulated by
Cooperative Societies Act 2001.
According to Cooperative Societies Act 2001, we can form 29 types of co-operative society
in our country. However, various types of co-operative are functioning in our country to
meet the utmost requirements of the members. Some of them are stated below:
Now in country the numbers of this type of co-operative societies are 1168 and
members of such kind of societies are 2,44,334.
Lions share of fishermen of country are human member of this society and
organizational members it has are 91. It has share capital of 13.66 lacs taka and
savings deposit of 44.17 lacs taka.
On the other hand Bangladesh national women co-operative society is also included
in this sector. Organizational members it has are 39 with share capital of 10,000 taka
per member.
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operative society, primary MISHUK driver co-operative society. At present number of
this type of co-operative societies are 769 and human members of this co-operative
are 56,020.
Along with this four central co-operative societies are also linked with this sector. They
are: 1. Bangladesh public transport driver co-operative society, 2. Bangladesh human
holler driver co-operative society, 3. Bangladesh auto rickshaw driver co-operative
federation and 4. Bangladesh auto tempo/ porter cab/ taxi cab driver co-operative
society
Milk co-operative society: Primary milk co-operative society and Bangladesh milk
producing co-operative union (Milk Vita) are interrelated with this sector. At present
there are 1404 primary milk producing co-operative.
Milk Vita: It was formed in 1973 as a co-operative society of national range. Primary
societies under this have members of more than 70,312, share capital of 238.11 lacs
taka and saving deposit of 105.14 lacs taka.
Saving and Credit co-operative society: The co-operative credit union league of
Bangladesh, Credit co-operative and primary savings and credit co-operative society
are associated with this sector. The number of this type of societies is 2,912 and
human members it has are 3,16,817.
Bangladesh co-operative life insurance Ltd: For ensuring self development and
security of all the members of co-operative societies of the country, this co-operative
society was formed. At present 605 members.
Most of the poultry men of country are human member of this society and
organizational members it has are 75. It has share capital of 12.75 lacs taka and
savings deposit of 42.68 lacs taka.
Excluding above mention co-operative, we can form Farmer co-operative, Worker co-
operative, Freedom fighter co-operative, Water management co-operative, Flat or
Apartment owner co-operative, Shop owner and business or market co-operative,
Consumer co-operative, Multi-purpose co-operative, etc.
The united development efforts made by lower and middle class people with a view to
achieving employment opportunity and poverty reduction is the main theme of Co-
operative. Along with individual development, Co-operative helps to attain some social and
national development concerning. Though there are no specific yardsticks to measure the
success of Co-operative Society, there are some indicators by which the performance of
Co-operative Society can be seen. Primary Co-operative Society is the main basis of Co-
operative Society. Some indicators of Primary Co-operative Society are shown below by
which we can have an entire idea about previous its performance:
180000
175,839
175000
170000 168,184
165000 163,385
159,051
160000 155,995
155000
150000
145000
2006-07 2007-08 2008-09 2009-10 2010-11
In chart, we can see continuous growth in number of registered primary co-operative in last
five years. In 2010-11 fiscal year number of primary co-operative increases to 1,75,839 at
4.56%.
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Growth of Co-operative members:
9200000 8,954,237
9000000
8800000 8,674,101
8600000 8,505,738
8400000 8,309,796
8200000 8,089,596
8000000
7800000
7600000
2006-07 2007-08 2008-09 2009-10 2010-11
Mass people‟s contribution into development work is the indicator of economic growth. In
chart, we can see in 2010-11 fiscal year number of co-operative member increases to
89,54,237 person at 2.23% comparing to 2009-10.
600
512.95
468.80
500
396.91
363.84
400
293.13
300
200
100
0
2006-07 2007-08 2008-09 2009-10 2010-11
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Growth of Loan disbursement and collection (in Crore TK):
1800 1,638.93
1600 1,483.15 1476.98
1400 1084.99
1200 828.48
1000 613.89 626.20 752.82 Disbursement
800
600.96 584.67 Collection
600
400
200
0
2006-07 2007-08 2008-09 2009-10 2010-11
Continuous growth of loan disbursement and collection indicate the potentiality of co-
operative. Till 2010-11 fiscal year loan disbursement and collection of co-operative
increases to TK 1638.92 crore and TK 1476.98 crore respectively.
Agro based economy: Our economy is mostly depending on agriculture. Still now
agriculture is the main source of our GNP. But we don‟t have enough technology and
scientific method to use in agriculture because of the poverty and illiteracy of the
farmers. The land for cultivation is also smaller size. In this reason, co-operative can
play good roles to improve our agricultural sector. The farmers can get the large
scale cultivation, uses of technology, supplies of seeds and fertilizer and selling
products in proper price.
Intention of family savings: Each and every family in our country is eager to
deposit money. They want to increase the savings by keep it in a profitable projects.
Co-operative is the most convenient institution for them to deposit money and get
return in a specific period of time.
Easy access to the small capital: The members of co-operatives can easily access
to the small capital they need for emergency purpose. One can‟t get the emergency
money quickly or convenient way as like as co-operative society.
Socio-cultural aspects: History and tradition is the part and parcel of a civilization.
Proper and adequate patron is absent in this case. In this case, co-operative can
play a vital roles on socialization through which they can make a move and arrange
things to happen.
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Protecting rights: Life is living that‟s why the dynamism and changes in it is also
frequent. So only the rules and regulations can‟t protect the rights of human being.
Sometime regulations are vague or obsolete. So more often we need to raise our
voice for protecting rights. Co-operative can makes it easy and strong.
High rate of unemployed people: In our country, there are a large number of
educated and illiterate people. They need support, assistance and capital. Through
co-operation they can get the chance and opportunity to find the way they are
looking for.
Get ride of middlemen exploitation: People can collect and distribute necessary
things like chemical free fruits, vegetables, meet, fish, etc at cheapest cost for their
own consumption by forming co-operative society.
Being a third world country, in Bangladesh co-operative societies can perform immense role
in order to improve the economic status of poor and middle class people. But co-operative
societies are still failed to make any positive influence in our economy, as some factors
serve negatively to its smooth functioning.
Lack of unity and collaboration: Co-operative society stands upon its members‟
unity and support. But in practice we see a regular inequity and dispute among its
low-class members.
Lack of sacrifice and earnestness: Sacrifice and sincerity among members are
prerequisites for success of co-operative. But practically there is serious want of
members having a mentality of help and sacrifice.
Inadequate training: Proper training can let our talents out. But in Bangladesh, for
want of effective training facility, the skills of members can not grow.
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Corruption and nepotism: As we know Corruption entered every single part of our
society, the co-operatives are not free from it by means of cheating the illiterate
members by powerful individuals. And nepotism in providing loans and other spheres
inhibit its growth.
Recommendation:
Reformation of district wise central co-operative bank: District wise central co-
operative banks are in need to be reformed to facilitate the implementation of rural
economic development program and structure build up. Co-operative banks are to
be allowed to perform Para banking activities that helps finding out the emerging
honest leaders.
Ensuring the well treatment of credit programs: The credit programs should be
well treated and well controlled by the government through making contemporary co-
operative law and ordinance.
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various co-operative societies. The co-operative members should be allowed to take
loans at a low interest rate.
Above mentioned Initiatives can be taken for the expansion of co-operative societies to
ensure maximum benefit for the sake of Bangladeshi citizen.
Conclusion:
References:
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• Wikipedia. Cooperative. [online] (Update 8 February 2013) Available at:
http://en.wikipedia.org/wiki/Cooperative [Accessed 9 February 2013].
• Scribd. Co-operative society, its expansion and future possibilities in context of
Bangladesh. [online] (Update 22 August 2012) Available at:
http://www.scribd.com/doc/103555619/Co-operative-Society-in-Bangladesh
[Accessed 10 January 2013].
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