history of co-operative movement international co-operative year - 2012

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  • HISTORY OF CO-OPERATIVE MOVEMENTINTERNATIONAL CO-OPERATIVE YEAR - 2012

  • Advocate B. R. BORNAKM. 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 word cooperari, where the word co means 'with'and 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: ROBERT OWEN (17711858):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.

  • At The End Of 1843, 28 Poor Weavers Joined Together To Form The Rochdale Equitable Pioneers Society At Rochdale - England.

    They are Known As Rochdale Pioneers.

    Set Out The Rochdale Principles In 1844, Which Have Highly Influenced The Cooperative Movement. Initially The Society Organized A Grocery Store.

    A Venture Rapidly Prospered And Also Established Between 1850 And 1855 A Flour Mill, A Shoe Factory, And A Textile Plant. Its Principles Proved As The Basic Code Of The Consumer Cooperative Movement Since That Time.

    THE ROCHDALE PIONEERS:

  • COOPERATIVE MOVEMENT IN ENGLAND:England is Birthplace Of Co-operative Movement.

    Robert Owen and Rochdale Pioneers initiated this movement in England.

    Before Industrial Revolution: Agricultural Co-ops: Primary - Three Categories: 1) Societies Supplying Farm Equipments; 2) Marketing Societies; 3) Service Societies. Central Level - Agricultural Central Co-operative Association (ACCA)-1956.National Level - National Federation: Co-operative Union Limited 1869.

    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:Cooperative Bank, Credit Union & Coop Savings BankCo-operative Wholesale SocietyBuilding CooperativeAgricultural CooperativeHousing CooperativeWorker CooperativeMutual InsuranceRetailers' CooperativeSocial CooperativeUtility CooperativeCo-operative Party - The Co-operative Party Now Has A Permanent Electoral Pact With The Labour Party

  • WORLD COOPERATIVE MOVEMENTFRANCE: Banking, Consumer GERMANY: Banking, AgricultureBELGIUM: Agriculture AUSTRIA: Farming, Service, Marketing.ITALY: Social, Health, Work integration. DENMARK : AgricultureFINLAND: Farming, Service, Marketing.NORWAY, AND SWEDEN: Dairy, Farming, Animal HusbandrySWITZERLAND: Consumer, Super marketsISRAEL: FarmingMALAYSIA: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

  • CO-OPERATIVE MOVEMENT IN INDIA HAS PASSED INTO TWO PHASES:

    1)Cooperative movement in pre-independence era.

    2)Co-operative movement in postindependence era.

  • BACKGROUNDCooperative 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:In 1901:Second Famine Commission Recommended:To carry out Development activities andsetting up of new institution like co-operative societies.Government had accepted many of the recommendations.

    The Co-operative Credit Societies Act, 1904. 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: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 effectively because of Government reluctance.

    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 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.

    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.

  • In 1928-29 the world experienced worldwide economic depression.

    The prices of agricultural commodities fell down to a great extent.

    unemployment along with other economic crisis grew up.

    There was no way to repay the loan.

    This brought many co-operative societies in to a standstill position.

    The 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.The 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.

    The bank took some initiatives to recognise co-operative movement.

    It established a separate department for a co-operative credit. It helped to keep the movement alive which was gradually decaying.

  • In 1937, Congress Government came to power.

    They made Efforts to organise and extend the movement.

    However Much progress could not be done.

    Outbreak of Second World War 1939 to 1945.

    Ministry resigned.

    British Government again took charge.

    War gave a boost to co-operative societies.

    Sudden increase in demand and prices of agricultural products and other food grains.

    Farmers got extra economic gains.

    Non credit societies grew up.

    Working capital of co-op. societies also increased.Number of Different types of 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 movement in Post independence Era:For the first 3 years no significant development.

    Mainly due to partition and absence of concrete program.

    Importance was given to strengthen co-operative structure.

    Various provisions were made through Five Year Plans.

  • IN INDIA COOPERATIVE HAS SIGNIFICANT CONTRIBUTION IN THE FOLLOWING AREAS:1. AGRICULTURE CREDIT2. AGRICULTURE DISTRIBUTION3. AGRICULTURE MARKETING4. AGRICULTURE SERVICE 5. AGRICULTURE BASED INDUSTRY6. 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 MAHARASHTRAIn 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 the 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 25th April, 1960. 1st 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.

  • AMUL A GRAND SUCCESS IN CO-OPERATIVE SECTORAmul (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

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