Although there has been a culture of cooperation in Nepal since time immemorial, the establishment of modern cooperatives took place in B.C. The Bakhanpur Loan Cooperative Society of Chitwan was established in 2013 BS. B.S. The Bakhanpur Loan Cooperative has been formed with the assistance of the United States Agency for International Development (USAID) to provide vacant land through the Raptidun Multipurpose Development Project and to provide capital for the flood victims through the cooperative system. From consumer cooperatives established in Britain in 1844 to end the exploitation of garment workers to savings cooperatives set up in France and Germany to free the poor from high-interest rates, cooperatives set up to help flood victims in Nepal have the same objective - to help those in need. Looking at the history of the establishment of cooperatives, cooperatives can be considered autonomous institutions established for the solution of humanitarian problems in mutual cooperation all over the world.

1. Sixty-Five Years of Nepalese Cooperative Movements and Current
Situation
Dr. Gyanendra Prasad Poudel, Chairman Cooperative Research and
Study Center Nepal
Contact No. 9851202607
Email: pgyanendrapd@gmail.com

2. Introduction
 Although there has been a culture of cooperation in Nepal since time immemorial, the establishment of modern cooperatives took place in B.C. The Bakhanpur Loan Cooperative Society of
Chitwan was established in 2013 BS. B.S.
 The Bakhanpur Loan Cooperative has been formed with the assistance of the United States Agency for International Development (USAID) to provide vacant land through the Raptidun
Multipurpose Development Project and to provide capital for the flood victims through the cooperative system.
 From consumer cooperatives established in Britain in 1844 to end the exploitation of garment workers to savings cooperatives set up in France and Germany to free the poor from high interest
rates, cooperatives set up to help flood victims in Nepal have the same objective - to help those in need.
 Looking at the history of the establishment of cooperatives, cooperatives can be considered as autonomous institutions established for the solution of humanitarian problems in mutual
cooperation all over the world.

3. Nepalese Cooperative Movement
Traditional Cooperative Movement
Since the culture of cooperation has existed in Nepal since time immemorial, at that time there were various social, cultural and religious institutions and arrangements for
socio-cultural cooperation in Nepali society.
Goothi, Manka Goothi, Shi: Goothi, Sana Goothi, Parma, Dharmabhakari, Dhikuri etc. are some of the forms of traditional cooperatives.
Modern Cooperative Movement
Bakhanpur Savings and Loan Cooperative has been established in Chitwan district on April 6, 2013 on the basis of an executive order to provide capital to the flood-affected
people through cooperative system through Raptidun Multipurpose Development Project with the support of USAID. It is considered as the first modern cooperative in
Nepal.
Nepal's cooperative movement, which started in 2013, has completed a period of 65 years. The cooperative sector has been established as the third pillar of the economy
along with the public and private sectors.

4. Development of cooperative movement in Nepal
Year No of Coop
Coop Member
Share (‘000) Deposit
(‘000)
Loan
(‘000)
Emplo
yment
Female Male Total
2019/20 29886 4092394 3215068 7307462 94105016 477961146 426262311 88309
2016/17 34512 3213514 3092067 6305581 73178715 302164513 274154363 60517
2015/16 33599 3086318 2944539 6030857 71357882 295727802 289825041 56475
2014/15 32663 2281935 2824985 5100370 63059914 202420535 188078439 57854
2013/14 31177 2100137 2456513 4555286 61186201 172529350 154631604 54143
2012/13 29526 1953273 2398732 4352005 33451296 158162704 133827326 52003
2011/12 26501 1934551 2709902 4647549 27095151 139543971 134383307 39572
2010/11 23301 1449348 1692233 3141581 20225139 117295228 116835814 16502
2009/10 19724 897768 1240580 2138348 9360530 58045139 61549469 N/A
2008/09 15813 631454 1212305 1843759 8959172 29308434 30024625 N/A
2007/08 11302 608810 1182649 1791459 3638018 29001800 29873174 N/A
2006/07 9720 412447 847300 1259447 1045563 19517518 24147747 N/A
Source: Department of Cooperative

5. Development of cooperative movement in Nepal
0
5000
10000
15000
20000
25000
30000
35000
No. of Cooperatives
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
No of Cooperative Members
No. of Total Members No. of Female Members No. of Male Members
0
50000000
100000000
150000000
200000000
250000000
300000000
350000000
400000000
450000000
500000000
Capital Mobilization through Cooperatives
Share (‘000) Deposit ('000) Loan ('000)
16502
39572
52003 54143
57854 56475
60517
88309
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2019/20
Employment Generation by Cooperatives
Source: Department of cooperative

6. Opportunities in Cooperative Sectors
 The constitution itself recognizes cooperatives as an important pillar,
 More than 7.3 million people are involved in cooperatives.
 Cooperatives can be established with a minimum of 15 members and can be incorporated as much as possible and can be operated in any area and situation as there is no limit of
capital.
 Involvement of cooperatives in agriculture, herbs, tourism, production, distribution and service sectors, Opportunities for member capacity building and leadership development,
Development of collaborative and collective spirit,
 Maintaining financial relations at the local level and making good use of labor power,
 Utilization of local resources, means and ships and natural resources,
 The presence of cooperatives at every local level, in remote areas and in backward classes and communities,
 Increased participation of women and almost all communities in society,
 Increasing the role of cooperatives in achieving sustainable development goals,
pgyanendrapd@gmail.

7.  With the establishment of national and international access through cooperative networks, there is
ample potential for market expansion,
 Development, expansion and promotion of cooperative entrepreneurship,
 Financial literacy, financial inclusion and mediation through cooperatives can be successfully
accomplished, Identification of new areas and development and use of technology through
research in cooperatives,
 Through cooperatives, it is possible to establish the socialist economic system envisaged by the
constitution,
 As the members are investors as well as consumers, the products of the cooperative are likely to
expand easily,
 Since a person values ​​members more than capital on the basis of one vote, even a weaker
member can be proud of his or her own organization, including his or her self-esteem.
 There is an opportunity to promote import substitution and export by increasing production
through cooperatives.
Opportunities in Cooperative Sectors

8. Challenges of Cooperative Sectors
 Lack of effectiveness and uniformity in registration, operation, monitoring and regulation of cooperatives,
 To increase the efficiency of the Cooperative Department, State Cooperative Department and local level regulatory bodies,
 There is policy ambiguity in the mobilization of cooperative capital in the productive sector and it has not been possible to increase the investment of cooperatives in the rural areas.
 The contribution of cooperatives in the productive sector has not been increased and the products of cooperatives are facing problems of storage and marketing.
 Unable to use cooperative system in comparatively profitable industries and businesses, Unions could not be commercialized, leading to political manipulation and interference.
 Lack of Cooperative Friendly Laws and Challenges to Timely Modification, Implementation and Unification of Cooperative Acts, Policies, and Programs at Local, State and Federal
Levels,
 There is difficulty in solving the problems of the cooperatives that have become problematic at risk and the problem management cooperative management committee has not been able
to function.
 Cooperatives have not been formally studied and researched,

9.  To make cooperatives technology friendly and to take them to new areas in a timely manner,
 Lack of study, research and training in the cooperative sector and inability to publicize the good things it has done,
 In the cooperative sector, there is still a lack of adherence to the values, norms and principles of cooperatives and ensuring good governance and transparency and failure to develop a cooperative
culture.
 Lack of clear legal system to make financial transactions from financial cooperatives and cooperative banks systematic, secure, reliable and risk free.
 The volatile financial market has affected cooperative transactions,
 Delays in innovation and creativity, which are important for the transformation of society, Lack of skilled manpower to work in the cooperative sector and inability to attract the youth,
 It is necessary to run the program in partnership with the government, private sector and cooperative sector (PPCP model) but it has not been possible to do so.
 It is challenging for the cooperative sector to establish itself as the third pillar of the economy as guaranteed by the constitution and to play a leading role in building a socialist-oriented
economy.
Challenges of Cooperative Sectors
pgyanendrapd@gmail.

10. Current Situation of Cooperatives
province
No of Cooperatives
Members
Employ
ment
Share (‘000) Deposit (‘000) Loan (‘000)
Female (‘000) Male (‘000) Total (‘000)
Prov 1 4737 500 435 935 20,685 8,200,287 41,210,043 38,952,915
Madhesh 4153 252 303 555 10,843 2,365,246 23,199,641 15,051,198
Bagmati 10418 1457 1260 2717 33,892 51,406,428 214,662,206 199,864,724
Gandaki 2671 642 475 1117 7,638 22,050,967 86,074,572 88,378,061
Lumbini 3755 577 322 899 6,989 5,822,297 59,963,768 40,806,804
Karnali 1967 272 133 405 4,534 1,918,073 8,868,179 7,925,249
Sudurpaschim 2060 319 224 543 2,815 2,015,088 10,443,497 11,499,585
Under Fed. department 125 73 63 136 913 326,629 33,539,241 23,783,774
Total 29886 4019 3288 7307 88,309 94,105,016 477,961,146 426,262,311
Source: Department of cooperatives

11. Current Situation of Cooperatives in Nepal
Province 1
24%
Madhesh
12%
Bagmati
38%
Gandaki
9%
Lumbini
8%
Karnali
5%
Sudurpaschim
3%
Under Fed.
Department
1%
Status of Employment
Prov 1
Madhesh
Bagmati
Gandaki
Lumbini
Karnali
Sudurpaschim
Under Fed.
Department
No of Cooperatives
0
500
1000
1500
2000
2500
3000
Members of Cooperatives
Female (‘000) Male (‘000) Total (‘000)
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
Capital Mobilization through Cooperative
Share (‘000) Deposit ("000) Loan ('000)
Source: Department of cooperatives

12. Socialism through Cooperative
 The constitution mentions building a socialist-oriented economy, It is difficult to build a socialist-oriented economy based on the current environment of Nepal and the
geopolitical realities of the world.
 It is not easy for the state to go straight to building a socialist-oriented economy.
 It is impossible for the private sector to move forward on the path of socialism, Through cooperatives, we can move towards building a socialist-oriented economy:
 Cooperatives can bring them into the mainstream of economic empowerment by including the marginalized sections of the society (Cooperation of groups including
Raute, Chepang, Wildlife, Mushar etc. is an example of this).
 Through cooperatives, village production can be delivered to the city and city money to the village. This inspires the village farmers to get their produce at a fair price and
the urban consumers can also consume it at a fair price.
 With only a small amount of arable land left for the farmers, it is difficult to fully mobilize and modernize and commercialize agriculture through cooperatives.

13.  To support the use of technology in inter-cooperative transactions, remittance services, arbitrage, etc. and to promote digital business by enabling cooperatives to stand as the third pillar of the economy and
increase the contribution and role of cooperatives in achieving sustainable development goals.
 To manage the required capital, to cultivate the fragmented, unused and barren lands through cooperatives and to adopt collective and cooperative farming system commercially,
 Managed settlement development, health, education, senior citizen housing, child care centers, park construction, waste management, market management, heritage and culture conservation, home stay
management, tourism promotion, utilization of local labor, ship and equipment, consumer store operation, marketing.
 To work through cooperatives in the production and service sectors including agriculture, animal husbandry, insurance and microfinance management, financial services,
 Unemployed youths should be provided with ships and training according to their interests and abilities and arrangements should be made for the use and flow of skilled manpower as per the need through
cooperatives.
 Through cooperatives, we can bring qualitative improvement in small things. The huge trade deficit can be reduced to some extent by increasing production through cooperatives at low cost, locally available
capital and use of labor, import substitution and export management.
Cooperative’s Future Direction

14. Cooperative’s Future Direction
 Cooperatives should become a means of bringing villagers production to the urban and urban capital to the village by focusing on production.
 Cooperative-Cooperative Partnership (C2C Modality), Private-Cooperative Partnership (P2C Modality), Public-Cooperative Partnership (G2C Modality) and Public-
Private-Cooperative Partnership (PPCP Model) should be prepared and implemented.
 To develop cooperative market system, Maintaining value chain through cooperatives,
 The operation process of the cooperative should be based on cooperative values and membership should be focused,
 Cooperatives should focus on fulfilling the needs of the members through business diversification,
 To bring youth targeted programs to attract the youth in cooperatives,
 Cooperatives need to be integrated into technology and technology-based cooperatives need to be developed,
 Cooperatives should be developed as a reliable means of sustainable development goals.

15. Cooperatives Urban Area
Rural Area
Cash Flow
Goods and Commodities
Rural and Urban area Linkage through Cooperative

16. Cooperative Business Model
 Cooperative - Cooperative
Partnership (C2C Business Model)
 Private - Cooperative Partnership
(P2C Business Model)
 Government - Cooperative
Partnership (G2C Business Model)
 Public-Private-Cooperative
Partnership (PPCP Business Model)

17. Cooperative Bank
Primary
Cooperatives
Cooperative Federation
Projects
Projects Projects
C2C Model:

18. G2C Model: P2C Model:
Government Projects
Cooperative Bank
Primary Co-
operatives/Federation
Private Sector
Projects
Cooperative Bank
Primary Co-
operatives/Federation

19. Public-Private-Cooperative Project Cycle:
PPCP Model
Identify of Projects
Preparation &
Feasibility study
Private and cooperative sector
Choice and agreement
Design and financial
Management
Implementation
Operation and
Follow up
Evaluation
Transfer

20. pgyanendrapd@gmail.