This PPT tells about the brief history of cooperatives and how cooperatives are acting as a resilient model

1. By
By
Dr. SURESH BABU.S
Assistant Professor & Head
PG Department of Cooperation
Government Arts College (Autonomous)
Salem -636 007
drsureshbabu2009@gmail.com
7305202878

2. Schema for today’s Presentation
 Cooperatives : Evolution and Development
 What is a Cooperative?
 Uniqueness of Cooperatives & Coop. Management
 Cooperatives: Facts and Figures
 Repercussion of COVID-19 on World Business and
Indian Economy
 Resilient Model Cooperatives around the world
 Why Cooperatives are termed as Resilient Model?
 Best Practices of Cooperatives around the world
 Q & A
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3. Cooperation: Evolution and Development
 Cooperation has been the very basis of human
civilization
 History conveys us that man cannot successfully live by
himself and for himself alone.
 Working together is as old as human society
 Since the beginning of the human society, men have
cooperated first in foraging and then in hunting, later
in agriculture and still in manufacturing and service
industry.
 The spontaneous cooperation that flow from social
feeling, coupled with the economic rationale of
synergistic effect of collective action, has led to the
genesis of formal cooperation.
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4. Cooperative Idea in Ancient Times
 Instances of cooperative efforts were found in the
ancient Egyptian Era (craftsmen and artisans
association) , Babylonia (cooperative associations for
agricultural leases), Ancient Greeks (burial benefit
societies), China during Hon Dynasty (first money
lending society and savings association), Roman Era
(Craftsmen organisations), Barbaric age (farming
operations).
 In the Vedic literature there were references to the
existence of guilds for wood workers, potters,
fishermen, basket makers, barbers, garland makers
etc., (V.D. Mahajan), joint family system, chit fund
and the The Nidhis in south India.
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5. The Genesis of Modern Cooperative Doctrines
 History records that the modern cooperative movement
is the by-product of Industrial Revolution which took
place in about 1750 AD.
 Robert Owen (Father of Cooperation), Dr. William King,
Charles Fourier, Charles Gide, Raiffeisen, Dr. James peter
warbase are the common heritage cooperative thinkers.
 The first successful cooperative society, namely
“Rochdale Equitable Society” was formed by the famous
pioneers of England.
 The idea of cooperation was taken and cooperatives were
started to suit fields like agriculture (Denmark),
agricultural credit (Germany), Labour cooperatives
(Italy) and agricultural credit (India).
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6. What is a cooperative?
 Cooperatives are people centered enterprises
 Cooperatives bring people together in a democratic and
equal way.
 As businesses driven by values, not just profit,
cooperatives share internationally agreed principles
 cooperatives around the world are allowing people to work
together to create sustainable enterprises
 Cooperatives allow people to take control of their economic
future
 Profits generated are either reinvested in the enterprise or
returned to the members.
 The cooperative movement is far for being a marginal
phenomenon, at least 12% of humanity is a cooperator of
any of the 3 million cooperatives on earth. 6

7. Uniqueness of Cooperation
 Values: Self-help, Self-responsibility, democracy, equality,
equity and solidarity
 7 principles: Voluntary and open membership, Democratic
member control, Member Economic Participation,
Autonomy and Independence, Education, Training and
Information, Cooperation among cooperatives and
Concern for Community
 International Year of Cooperatives : The UN declared the
year 2012
 International Cooperative Day: Celebrated annually on the
first Saturday of July since 1923.
 Cooperative Flag: In 1925, ICA has adopted the beautiful
seven coloured (VIBGYOR) pattern of rainbow horizontal
stripes as its International Flag, the flag of cooperation,
progress and peace. 7

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9. Uniqueness of Cooperative Management
 Normative Character
 Complex Aims System
 Superior Value Structure
 Distinct Economic Process
 Democratic Control
 Harmony with Macro policy of State
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10. Cooperatives: Facts and Figures
 1 billion cooperative members
 12% of people on earth is a cooperator
 3 million cooperatives on earth
 Cooperatives provide jobs or work opportunities to 10%
 300 largest cooperatives generate 2,034.98 billion USD - 100
(Americas: USA-85) +149 (Europe: France-38) +41 (Asia-
pacific: Japan-18 and India only 2)
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11. Repercussion of COVID-19 on World Business
 The COVID-19 has forced many businesses to close
 Unprecedented disruption of commerce in most
industry sectors
 Wholesalers and retailers face many short-term
challenges
 Companies especially start-ups, have implemented an
indefinite hiring freeze.
 The COVID-19 outbreak is likely to cause bankruptcy for
many well-known brands in many industries
 At the same time, online communication, online
entertainment, online shopping and other online
related business are seeing unprecedented growth.
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12. Consequence of COVID-19 on the Indian Economy
 The Indian economy has been experiencing significant
slowdown over the past few quarters.
 In the third quarter of the current fiscal, the economy
grew at a six-year low rate of 4.7%.
 Tourism, hospitality and aviation are among the worst
affected sectors
 Consumption is also getting impacted due to job losses
and decline in income levels.
 Widespread fear and panic leading to postponement
of consumers purchasing decisions.
 Repercussion of Covid-19 has also made the financial
market extremely volatile, leading to huge crashes and
wealth erosion. 12

13. Resilience & Business Resilience
Resilience was defined by most as
 the ability to bound back from setbacks
 adapt well to change, and
 keep going in the face of adversity
 agility
Business resilience is an enterprise-wide term which
encompasses
 crisis management and business continuity, and
 responds to all types of risk that an organization may face,
from cyber threat to natural disaster, and much else besides.
 ability of an organization to adapt to the new environment
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14. Resilient Cooperative Models in The World, India
and Tamil Nadu
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World (Turnover/GDP Percapita) India Tamil Nadu
Groupe Credit Agricole- France IFFCO CO-OPTEX
AMUL - India KRIBHCO AAVIN
IFFCO – India AMUL TNSC
Group e BPCE – France ULCCS TANFED
Zenkyoren – Japan Mulkanoor
Cooperative Credit
and Marketing
Society
Irulas Snake Catchers
Industrial Cooperative
Society
Nonghyup – Republic of Korea Peringandoor M TCMS
Nippon Life – Japan Saraswat Bank TUCAS
REWE Group – Germany Cosmos Bank NCMS
BVR Germany NCDC SAGOSERVE
ACDLEC- E Leclerc - France NAFED TUCS

15. Best Practices of Cooperatives around the world during
Covid -19
 French Cooperative Banks around Paris have opened up
lines of credit worth €100 million for hospitals and
healthcare centres.
 German Cooperative Banks have led on increasing the
limit for contactless payment for customers to 50 euros
– practical and helpful.
 Increasing pay for those working through the
lockdown, while asking vulnerable workers to stay
home on paid special leave (Food stuffs in New
Zealand, Calgary Coop in Canada).
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16.  Desjardins in Canada has announced a discount for car
insurance customers who are driving less in a lock-
down.
 Irish credit unions have remained open when bank
branches have closed, offering new emergency loans.
 Co-op insurers in Sweden have placed investments of
US$235 million in new bonds to finance public health
actions not just in the Baltic region but worldwide.
 Higher-paid workers deciding to take a pay-cut in
order to ensure that the lower-paid workers could get
full pay and are protected from being laid off during
the closures (FC Barcelona in Spain)
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17.  Preparing video messages, whatsapp groups, Q&As,
guidance notes, establishing online resource platforms and
organizing webinars to give HR, governance, legal, and risk
management advice to member cooperatives on the
pandemic and possible mitigation measures (SEWA
Cooperative Federation) India
 In Argentina, worker cooperatives in the IT sector have
collaborated to create an APP to allow an early self-
diagnosis of the virus. The APP will provide the necessary
indications to citizens according to the symptoms they
have.
 Ensuring front-line workers have uninterrupted access to
childcare services throughout the COVID-19 crisis, by
waiving fees financed through numerous means including
using their own funds and contributions from community
members (Midcountries Coop in the UK). 17

18. Why Cooperatives are termed as Resilient Model?
 Voluntary association
 Value based service organization
 Strong Member cum owner based
 Fully autonomous and independent body
 Democratic Setup
 Universally accepted model
 Customized service based on local needs
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19. References
 Dr.V.Kulandaiswamy, Cooperation: concept and theory, Arudra Academy,Coimbatore.2000
 Youth Social Entrepreneurship and the 2030 Agenda, World Youth Report, United Nations,
New York, 2020.
 Exploring The Cooperative Economy Report 2019, World Cooperative Monitor, International
Cooperative Alliance. 2020
 COVID- 19: How Cooperatives in Industry and Services are responding to the crisis, Social
Media: Twitter
 Colilin Mcclain, Cooperatives and wider SSE enterprises respond to COVID-19 disruptions,
and government measures are being put in place, April 2020.
 Shruthi Agarwal, Anbesh Jamwal, Sumit Gupta, Effect of COVID:19 on the Indian Economy
and Supply Chain, Research Gate, May 2020.
 Naveen Donthu, Anders Gustafsson, Effects of COVID-19 on business and research, Journal of
Business Research, Elesvier, June 2020
 Impact of COVID-19 on Indian Economy, FICCI, March, 2020
 Ed Mayo, The Power of Cooperation under COVID-19
 Transforming our world: A cooperative 2030, Cooperative Contributions to SDG 17COPAC
COOP
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