HISTORY OF CO-HISTORY OF CO-OPERATIVE MOVEMENTOPERATIVE MOVEMENT

INTERNATIONAL 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

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 :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 ORIGIN OF COOPERATIVE MOVEMENT:MOVEMENT: ROBERT 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.

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

They are Known As They are Known As Rochdale Pioneers.Rochdale Pioneers.

Set Out The Set Out The Rochdale Principles In 1844, Which Have In 1844, Which Have Highly Influenced The Cooperative Movement.Highly Influenced The Cooperative Movement.

Initially The Society Organized A Initially The Society Organized A Grocery Store.Grocery Store.

A Venture Rapidly Prospered And Also Established A Venture Rapidly Prospered And Also Established Between 1850 And 1855 A Between 1850 And 1855 A Flour Mill, A Shoe Flour Mill, A Shoe Factory, And A Textile PlantFactory, And A Textile Plant..

Its Principles Proved As The Basic Code Of The Its Principles Proved As The Basic Code Of The

Consumer Cooperative Movement Since That Time.Consumer Cooperative Movement Since That Time.

THE ROCHDALE PIONEERS:

COOPERATIVE MOVEMENT IN COOPERATIVE MOVEMENT IN ENGLAND:ENGLAND:

England is Birthplace Of Co-operative Movement.England is Birthplace Of Co-operative Movement.

Robert Owen and Robert Owen and Rochdale Pioneers initiated this movement Rochdale Pioneers initiated this movement in England.in England.

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

After Industrial Revolution:After Industrial Revolution: Consumer Co-operatives - To Protect workers From Capitalistic Economy . Consumer Co-operatives - To Protect workers From Capitalistic Economy .

Problems Of Unemployment, Exploitation Of Workers.Problems Of Unemployment, Exploitation Of Workers.

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

Co-operative Wholesale Society

Building Cooperative

Agricultural Cooperative

Housing Cooperative

Worker Cooperative

Mutual Insurance

Retailers' Cooperative

Social Cooperative

Utility Cooperative

Co-operative Party - The Co-operative Party Now Has A Permanent Electoral Pact With The Labour Party

WORLD COOPERATIVE MOVEMENT FRANCE: Banking, Consumer FRANCE: Banking, Consumer GERMANY: Banking, AgricultureGERMANY: Banking, Agriculture BELGIUM: Agriculture BELGIUM: Agriculture AUSTRIA: Farming, Service, Marketing.AUSTRIA: Farming, Service, Marketing. ITALY: Social, Health, Work integration. ITALY: Social, Health, Work integration. DENMARK : AgricultureDENMARK : Agriculture FINLAND: Farming, Service, Marketing.FINLAND: Farming, Service, Marketing. NORWAY, AND SWEDEN: Dairy, Farming, Animal HusbandryNORWAY, AND SWEDEN: Dairy, Farming, Animal Husbandry SWITZERLAND: Consumer, Super marketsSWITZERLAND: Consumer, Super markets ISRAEL: FarmingISRAEL: Farming MALAYSIA:MALAYSIA:BANKING, HOUSING, CONSUMER, TRANSPORTATION, AGRICULTURE, BANKING, HOUSING, CONSUMER, TRANSPORTATION, AGRICULTURE,

SMALL-MEDIUM INDUSTRY, DEVELOPMENT & SERVICE.SMALL-MEDIUM INDUSTRY, DEVELOPMENT & SERVICE. Japan: Consumer, Agriculture.Japan: Consumer, Agriculture. Korea: Agriculture, Finance/Banking.Korea: Agriculture, Finance/Banking. TAIWAN: Agriculture, Marketing.TAIWAN: Agriculture, Marketing. Thailand: Irrigation, Farming, Animal Husbandry, Dairy, Rubber, Police Thailand: Irrigation, Farming, Animal Husbandry, Dairy, Rubber, Police

Patrol.Patrol. Singapore: Super market, Credit, Service Singapore: Super market, Credit, Service

COOPERATIVE COOPERATIVE

MOVEMENT MOVEMENT

IN IN

INDIAINDIA

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

1)Co–operative 1)Co–operative movement in pre-movement in pre-independence era.independence era.

2)Co-operative 2)Co-operative movement in post–movement in post–independence era.independence era.

BACKGROUNDBACKGROUND Cooperative Movement In India Is More Than 100 Years Old.Cooperative Movement In India Is More Than 100 Years Old.

During British Rule Money Lenders was the only source for During British Rule Money Lenders was the only source for farmers to raise funds.farmers to raise funds.

They Used To Charge 37% To 76% Interest to farmers.They Used To Charge 37% To 76% Interest to farmers. In protest Strong Agitation By Farmers.In protest Strong Agitation By Farmers.

In 1892 Sir In 1892 Sir DerrickDerrick Nicholson Was Directed To Study Problem Of Nicholson Was Directed To Study Problem Of Farmers And Give Suggestions.Farmers And Give Suggestions.

He Suggested To Establish Agriculture Credit Bank On the Line He Suggested To Establish Agriculture Credit Bank On the Line Of One Established By Mr. Raiffeisen In Germany.Of One Established By Mr. Raiffeisen In Germany.

CO-OPERATIVE MOVEMENT IN PRE-INDEPENDENCE CO-OPERATIVE MOVEMENT IN PRE-INDEPENDENCE ERA:ERA:

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

The Co-operative Credit Societies Act, 1904.The Co-operative Credit Societies Act, 1904. “ “ The Cooperative Credit Societies Act 1904” - Beginning of Cooperative The Cooperative Credit Societies Act 1904” - Beginning of Cooperative

Movement In India. Movement In India. Main Objective Was To Make Farmers Free From The Clutches Of Money Main Objective Was To Make Farmers Free From The Clutches Of Money

Lenders. Lenders. This Was Beginning Of Agriculture Credit Cooperative In India.This Was Beginning Of Agriculture Credit Cooperative In India. Co-op. movement was officially set up and recognized.Co-op. movement was officially set up and recognized.

ACT OF 1904 SUGGESTED TWO MODELS OF CREDIT ACT OF 1904 SUGGESTED TWO MODELS OF CREDIT SOCIETIESSOCIETIES::

One for rural areas and Other for urban areas.One for rural areas and Other for urban areas.

Due to this Act a number of Co-operative Societies grew up Due to this Act a number of Co-operative Societies grew up

in rural areas.in rural areas.

But they could not function effectively because of But they could not function effectively because of

Government reluctance.Government reluctance.

ACT 1904: MAJOR DEFECTS:ACT 1904: MAJOR DEFECTS:

i)i) There was no provision for setting up of Non credit Co-operative Societies in rural There was no provision for setting up of Non credit Co-operative Societies in rural areas.areas.

ii) No special Central agency was created for financing and supervising the activities ii) No special Central agency was created for financing and supervising the activities of these primary societies.of these primary societies.

iii) The division of the Credit Co-operative Societies into two types rural and urban 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 stood as a barrier since no specific arrangements could be done for either due to the overlapping nature of societies.the overlapping nature of societies.

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

Act was passed in 1912.Act was passed in 1912.

It was named as “The Co-operative Societies Act, 1912” and in real sense a 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 good effort was made to spread co-operative movement in all sectors of the Indian Economy.Indian Economy.

“ “ The Cooperative Societies Act 1912” - New Act Was Passed For Setting Up The Cooperative Societies Act 1912” - New Act Was Passed For Setting Up

Non-agriculture Credit Cooperative Societies In India.Non-agriculture Credit Cooperative Societies In India.

In spite of this effort the movement could not achieve much more. In spite of this effort the movement could not achieve much more.

In 1919 a Commission headed by Montegue Chelmsford was appointed to In 1919 a Commission headed by Montegue Chelmsford was appointed to study the reasons and suggest certain measures for Reforms.study the reasons and suggest certain measures for Reforms.

They Recommended For Transferring The Subject “Cooperation” To State (At They Recommended For Transferring The Subject “Cooperation” To State (At That Time Province) Governments. That Time Province) Governments.

And Thus It Was Made State Subject.And Thus It Was Made State Subject. Co-operative Movement during 1919 to 1929 was Defines Co-operative Movement during 1919 to 1929 was Defines

as ‘ Unplanned Developement’ by Ramdas Pantalu.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 Co-operative movement in Post independence Era:independence Era:

For the first 3 years no significant For the first 3 years no significant development.development.

Mainly due to partition and absence of Mainly due to partition and absence of concrete program.concrete program.

Importance was given to strengthen co-Importance was given to strengthen co-operative structure.operative structure.

Various provisions were made through Various provisions were made through Five Year Plans.Five Year Plans.

IN INDIA COOPERATIVE HAS SIGNIFICANT CONTRIBUTION IN INDIA COOPERATIVE HAS SIGNIFICANT CONTRIBUTION IN THE FOLLOWING AREAS:IN THE FOLLOWING AREAS:1. AGRICULTURE CREDIT1. AGRICULTURE CREDIT2. AGRICULTURE DISTRIBUTION2. AGRICULTURE DISTRIBUTION3. AGRICULTURE MARKETING3. AGRICULTURE MARKETING4. AGRICULTURE SERVICE 4. AGRICULTURE SERVICE 5. AGRICULTURE BASED INDUSTRY5. AGRICULTURE BASED INDUSTRY6. ALLIED AGRICULTURE SECTOR.6. ALLIED AGRICULTURE SECTOR.7. DAIRY, FISHERY, ANIMAL HUSBANDARY, POULTRY ETC.7. DAIRY, FISHERY, ANIMAL HUSBANDARY, POULTRY ETC.8. SUGAR, TEXTILE ETC. PRODUCTION ACTIVITIES.8. SUGAR, TEXTILE ETC. PRODUCTION ACTIVITIES.9. BANKING, CREDIT, CONSUMER SOCIETIES.9. BANKING, CREDIT, CONSUMER SOCIETIES.10. CO-OPERATIVE HOUSING.10. CO-OPERATIVE HOUSING.11. MINING CO-OPERATIVES.11. MINING CO-OPERATIVES.AND SO MANY … AND SO MANY …

CO-OPERATIVE MOVEMENT IN CO-OPERATIVE MOVEMENT IN MAHARASHTRAMAHARASHTRA

In 1919 a Commission headed by Montegue Chelmsford was appointed to study 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 the reasons behind failure of co-operative movement in India and to suggest certain measures for Reforms.certain measures for Reforms.

They Recommended For Transferring The Subject “Cooperation” To State (At They Recommended For Transferring The Subject “Cooperation” To State (At That Time Province) Governments.That Time Province) Governments.

And Thus It Was Made State Subject.And Thus It Was Made State Subject. In 1925 for the then Bombay State “The Bombay Co-operative Societies Act, 1925 In 1925 for the then Bombay State “The Bombay Co-operative Societies Act, 1925

was passed.was passed. In 1956 “The States Reorganisation Act, 1956” was passed by Parliament by In 1956 “The States Reorganisation Act, 1956” was passed by Parliament by

passing passing Constitution (Seventh Amendment) Act, 1956.Constitution (Seventh Amendment) Act, 1956. THE BOMBAY RE-ORGANISATION ACT, 1960 was passed by the Bombay State THE BOMBAY RE-ORGANISATION ACT, 1960 was passed by the Bombay State

Assembly on 25th April, 1960. Assembly on 25th April, 1960. 11stst May 1960: Division of the Bombay State and formation of Gujarat and May 1960: Division of the Bombay State and formation of Gujarat and

Maharashtra States.Maharashtra States. The Maharashtra Government passed “The Maharashtra Co-operative Societies The Maharashtra Government passed “The Maharashtra Co-operative Societies

Act, 1960.Act, 1960.

AMUL – A GRAND AMUL – A GRAND SUCCESS IN CO-SUCCESS IN CO-

OPERATIVE SECTOROPERATIVE SECTOR Amul (Anand Milk Union Amul (Anand Milk Union Limited), formed in 1946, Limited), formed in 1946, is a Dairy co-operative is a Dairy co-operative movement in India. Which movement in India. Which today is jointly owned by today is jointly owned by some 2.6 million milk some 2.6 million milk producers in Gujarat , producers in Gujarat , India. India.

AMUL is based in Anand, AMUL is based in Anand, Gujarat and has been a Gujarat and has been a sterling example of a co-sterling example of a co-operative organization's operative organization's success in the long term.success in the long term.

HISTORY HISTORY

OF OF

CO-OPERATIVE CO-OPERATIVE

PRINCIPLESPRINCIPLES

In 1895 International Co-operative Alliance (ICA) Was Established.In 1895 International Co-operative Alliance (ICA) Was Established. In 1937-ICA Declared Rochdale Principles As Co-operative Principles:In 1937-ICA Declared Rochdale Principles As Co-operative Principles: Rochdale Principles:Rochdale Principles: Main Principles:Main Principles: 1) Open And Voluntary Membership, 1) Open And Voluntary Membership, 2) Democratic Management, 2) Democratic Management, 3)limited Interest On Capital, 3)limited Interest On Capital, 4) Distribution Of Surplus In Proportion Of The Transactions, 4) Distribution Of Surplus In Proportion Of The Transactions, 5) Co-operative Education, 5) Co-operative Education, 6)co-operation Among Co-operators.6)co-operation Among Co-operators. Secondary Principles:Secondary Principles: 1) Cash Transactions, 1) Cash Transactions, 2) Equal Rights And Responsibilities To Both Men And Women Irrespective Of Caste, Creed And 2) Equal Rights And Responsibilities To Both Men And Women Irrespective Of Caste, Creed And

Religion, Religion, 3) Neutrality In Political And Religious Matters, 3) Neutrality In Political And Religious Matters, 4) Service Motive – Human Service, 4) Service Motive – Human Service, 5) Limited Responsibility, 5) Limited Responsibility, 6) Publicity And Propaganda, 6) Publicity And Propaganda, 7) Thrift And Savings.7) Thrift And Savings. Co-operative Values:Co-operative Values: 1) Economic Independence, 1) Economic Independence, 2) Humanity, 3) Honesty, 4) Service Spirit. 2) Humanity, 3) Honesty, 4) Service Spirit.

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.Co-operative Principles As Suggested By Dr. D. G. Karve Commission:1) Open And Voluntary Membership, 2) Democratic Management, 3)limited Interest On Capital, 4) Minimum Profit And Its Equitable Distribution, 5) Co-operative Education, 6)co-operation Among Co-operators.These Principles Remained In Practice Upto 1995.

RECONSTRUCTED COOPERATIVE PRINCIPLES:

In The Centenary Celebration Of International Co-operative Alliance (Ica) – 16th To 23rd 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.

1) Open And Voluntary Membership, 2) Democratic Management, 3) Autonomy And Independence,4) Education, Training And Publicity Of Information, 5) Economic Participation Of Members, 6) Co-operation Among Co-operators.7) Care With Responsibility About The Society (Public).

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 COURTMOBILE NO.: 9869450525 Mail ID: advbrbornak@gmail.com

FOR ANY FURTHER CLARIFICATION….