Co operative movements in nepal

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Cooperative movement play very crucial role for economic development of the country.

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Co operative movements in nepal

  1. 1. Co-operative Movements in Nepal Sunil K . Mahato1
  2. 2. Content  Meaning and concept  Historical background  Types of Co-operative in Nepal  Current scenario of Co-operative in Nepal  Conclusions and suggestions2 Sunil 8/5/2012
  3. 3. Meaning and concept  “Cooperative society is the form of organization in which persons voluntarily associated together as human being on the basis of equality for the promotion of economic interest of themselves” .(H. Calvert)  “Cooperative is self –help as well as Mutual help. it is a joint enterprise of those who are not stand on their own legs and therefore ,came together non with a view to get profit but to overcome disability arising out of the want of adequate financial resources”.(Dr. H.N Kumzou)  Co-operative is a movement of helpless against the Capitalism exploitation as it is a joint effort for Sunil3 not only one but for all 8/5/2012
  4. 4. History of Cooperative Movement  First Cooperative Mr .Robert Owen established a “consumer cooperative society in 1844 which was the first registered cooperative in the global history. Objective of 1st cooperative • To save the poor from economic exploitation of rich • To eliminate middleman • To serve members4 8/5/2012
  5. 5. What is philosophy of cooperative?  To serve common people  Mutual Cooperation  Self help  Protection from Capitalism  Voluntary association  Equality by Members  Equal Voting rights  Democratic values  Capital can be converted into loan  One vote for all shares5 8/5/2012
  6. 6. History of Cooperatives in Nepal  Traditional forms of Cooperatives:  Guthi, Manka, Khala,  Institutional Cooperative Development :  Cooperative Movement started in Nepal /India 1954  Rapti valley Development project by USAID 1954  First Cooperative Society in Bharatpur 2013  First National plan period (1956-60) developed 13 Saving and credit Cooperative Societies for the rehabilitation of the flood Victims(Rapti)6 8/5/2012
  7. 7. Types of Co-operative In NepalObjective Number Capital Savings Investm Total Total of ent income Expendit Cooperat ure iveSaving and 8888 7,278,58 42,930,6 48,885,5 3,862,72 1,806,72credit 1 49 74 4 8Multipurpose 3465 922,740 12,805,7 48,885,5 640,386 495,490 38 74Dairy 1687 132,746 111,149 9,163,27 685,460 589,894 7Agro 2964 542,257 1,252,49 121,365 925,798 472,963 6Electricity 222 18,737 10,324 2,379,11 11,677 14,005 3Others 758 242,961 777,182 45,264 196,399 298,4137 Sunil 8/5/2012Vegetable of 182 2,985 9163 773,150 14,026 10,316
  8. 8. ContdScience and 82 68,512 77,189 78,,015 643,546 639,326TechnologyCoffee 66 766 652 748 1,559 232Health 50 32,203 24,885 444,678 25,684 29,157Tea 75 8,349 5,189 8100 5,741 5,367Herbal 38 2,289 392 751, 1,120 1,221Beekeeping 41 418 422 682 87 127Total 19,724 9,360,530 58,045,13 61,549,46 7,023,580 4,372,739 9 9 Sunil8 8/5/2012
  9. 9. Current scenario of Co-operative in Nepal  In Nepal 13 types of cooperative operate  According to the department Cooperative annually Cooperative operate and mobilize over annually over 100 billion ,Which accounts for Rs 61.54 billion investment ,58 Saving and 9.36 billion share capital  This sector also provide direct employment to more than 50 thousands while in indirectly to more 100,000 job opportunities in different fields  While it may normal to have 4000,to 5000 Cooperatives in the capital9 Sunil 8/5/2012
  10. 10.  Although there are 31 commercial and 88 development banks ,79 finance and 21 Microfinance companies which cater to about 30 percent of the population ,unfortunately they are being over banked and 70 percent still do not have access to finance  Many cooperative suffer from unsound investment in risky areas ,where there are no returns  Most cooperative lack professional management and plagued by the lack adequate knowledge ,principles and practices of cooperatives10 8/5/2012
  11. 11.  “people are more attracted to cooperative because the returns are higher and they provide high level services by going to the clients house  The interest rates are high so if u take loan and investment in other project then you will have difficult to gets returns11 8/5/2012
  12. 12. Example if you have take 2,00,000 Loan from the cooperative then u pay 22 % interest and u also pay the different kinds of feeLoan intere Loan Aawh Memb Organization Valuat Othe Total Loan developmentamou st fee an ershi fee ion r fee fee sharnt fee p fee fee e 44,00 200 2000 2000 2000 2000 2000 5420 0 012 8/5/2012
  13. 13. Cooperative Act 204713 8/5/2012
  14. 14. Conclusions and suggestions  Cooperative movement has been very Successful in Many Countries like Bangladesh and Kenya  The Government has announce to celebrate cooperative year 2012  Many cooperative Suffer from unsound investment in risky areas where there are no returns  While presently Many retired bankers are also involved in cooperative  Most Cooperative lack professional management and are plagued by the lack of adequate knowledge ,principles and practices of14 cooperative Sunil 8/5/2012
  15. 15.  The Cooperative Movement has dramatically evolved after enactment of the cooperative Act 195415 8/5/2012
  16. 16. Suggestions  The government and central bank should take the initiative and prepare guideline to follow or even implement cooperatives under the NRB.  The government should formulated the new cooperative act by replacement the cooperative act 2047  The government should formed the separate Ministry of cooperative to smooth functioning  In Nepal the Buffalo and vegetables or fruits Cooperative needs rather than the Saving & Credit Cooperative  Government should recognized good cooperative and reward where as the bad ones must be given a time or framework to improve Sunil16 8/5/2012
  17. 17.  Encourage to form the Cooperative rural areas rather than the valley or city based  Provide the training and guideline from the smooth functioning of the cooperative  The department of cooperative change their attitude17 8/5/2012
  18. 18. Thank you18 8/5/2012

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