KV Network

Failed Co-operatives

Failed Co-operatives
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Co-operatives can have far reaching impact as they can provide answers to specific needs of underdeveloped areas like that of Jammu and Kashmir. But the co-operative movement needs support from the development community to reach its potential.

As we say there is strength in numbers and the co-op movement’s founding principles can benefit the development work.

The success of co-op movement in many parts of the globe remind us that co-operatives are much more than our local shop, or a troubled bank. They are a dynamic people centred business model operating in more than 100 countries. Co-operatives come in all shapes and sizes and all sectors of the economy.

In developing countries 75% of Fair trade products are from farmers’ co-operatives. In the 1950s and 60s, co-operatives, particularly in Africa, were seen as major players in development, loaded down with expectations, as well as government interference. As a result, many failed, and co-operatives were written off by most development agencies.

In recent decades, co-operatives have made a comeback. We know that co-operatives can and do make major contributions to millennium development goals. They can generate income for their members and also offer a range of benefits – depending on why they are set up. In meeting their members needs co-operatives enhance incomes and secure livelihoods for their members and their communities.

The role of co-op movement getting secured recognition forced the world body, United Nations to announce 2016 as the year of UN International Year of Co-operatives. The UN’s Food and Agricultural Organisation sees co-operatives as key to feeding the world; the International Labour Organisation as a way of organising in the informal economy.

However, the co-op movement has not been able to make its presence in Jammu and Kashmir. The co-op movement was initiated by Maharaja Pratap Singh in 1914 A.D for providing relief to the small agriculturist class so as to improve the agricultural productivity by getting rid of private money lenders.

This Co-operative movement spread its tentacles in many other spheres, ie apart from agriculture, in education banking, housing, labour and transport sectors with the motive of bringing green revolution by means of self sufficiency in food production, white revolution, blue revolution, Golden revolution and Yellow revolutions.

However, the co-op movement did not flourish owing to various political interferences and bad decisions. The co-operative institutions failed to make a mark as they were subject to loots and mis-appropriations by the political class and being fully protected by the political elite they were not questioned at all.

Even the audit wing of the Co-operative department proved so deficient and incapable that, it never dared to surface huge bungling, swallowing institutional share capital as well as the business turn over resultantly burdening the government and the share holders of the societies with heavy debts and losses.


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