ORIGIN AND DVELOPMENT OF CO-OPERATION
INTRODCUTION
Co-operation is a practical economic system of transacting business based on all that is best in human nature. It is a happy golden mean between Capitalism and Socialism. On the one hand it applies a great brake on all anti social ills, such as greed, selfishness, personal aggrandizement and on the other it avoids the tendency to drab uniformity, regimentation and bureaucratization.
Co-operation is one of the Economic miracles of the last century. It is a voluntary and democratic association of human beings, based on equality (of control and opportunity) and equity (of distribution) and mutuality for the promotion of their common interests as producers or consumers.
Co-operation has been known and practiced in this Country in various forms since ancient times. The Joint Family Systems which is very old and exists still today is one instance of indigenous Co-operation. Another form of Cooperation is the Panchayat, which is based on the Principle of Community Self-Help. Then true are Chit funds commonly found in South India, which are based on the Principle of Mutual Association and Mutual Confidence and Honest dealings. The 'Nidhis' prevalent in South India provide a further instance of Mutual Credit Association. India provides a natural soil for the development of Co-operative Institutions.
The Co-operative Movement has made rapid strides and progress in India. The need for its expansion has grown so much now and it has been able to acquire a place in the Five Year Plans in India. Every sector of our economy now needs to be run on Co-operative lines. The Government too has realized that it is through evolving and efficient Co-operative mechanism and developing the Co-operative Movement, the Nation can achieve the desired goals as envisaged in the Plans and the pledge to establish a Co-operative Common Wealth in India.
Now in Kerala, no Sector is left from the purview of Cooperatives. In every Sector of the economy there are Cooperatives which is one of the reasons for the development of the State. Not only is that it also an instrument for solving the problems of the rural poor. Co-operation serves as an organizational instrument for the economically weaker producers-farmers, artisans or workers - and consumers for strengthening themselves and protecting themselves against the exploitation by the stronger.
ORIGIN
Co-operation is derived for the Latin Word" Co-operation ". 'Co' means "with" and 'Co-operari' means "to work". Cooperation means Working Together with others for a common purpose.
Some People of the Church viz., Pope and Monks thought that Co-operation is Christianity applied to business
that is not merely a way of life but "Heaven Realized on Earth". Usually involved in such assertion is the idea that selfishness finding expression through profit motive is unchristian and that Co-operation is the embodiment of unselfishness and service to humanity.
MEANING
Aristotle, a Philosopher of Ancient Greece, recognized the social nature of man when he said, "Man is a Social Animal". Man cannot lead a happy and contented life if he lives in isolation. Therefore, there is a great need for Co-operation, which can be considered as the basic principle underlying human life.
The Primitive concept of Co-operation was related more to cultural, religious and social aspects. Co-operation was not pursued as a type of business, it was a way of life. In Primitive Society, Co-operation had become an integral part of man's life, it was inherent in the Society itself. The Modern concept of Co-operation is all together different from the primitive one.
"It denotes a special method of doing business"
-T.N. Hajeela
The word Co-operation literally means Works Together or act together. Sociologists see this Movement as the potentialities of bringing about a social transformation.
According the Sociologists Co-operative Movement is an instrument for establishment social harmony through the removal of class struggle.
Economists are of opinion that Co-operative is a means of countering the exploitation of weakness sections by conferring on them a better economic status.
In a legal sense, Co-operation signifies special privileges and concessions conferred by law on its members.
DEFINITION
To give a dean cut Definition on the term Co-operation is difficult because it performs very many functions.
The important Definitions of Co-operation are as follows:
According to the Socialist Co-operative School, Cooperation is a weapon for the development of socialist though and the realization of firms or households for business purpose and economic institution through which economic activity is conducted in the pursuit of economic objectives.
Mc Legan Committee Defines co-operation in their words 'The Theory of co-operation is very briefly, the an isolated and powerless man can, by association with others and by moral development and mutual support obtain, in his own degree, the material advantage available to wealthy or powerful persons and whereby develop himself to the fullest extent of his natural abilities. By the union of forces, material advancement is secured and by united action self reliance is fostered and it is from the inter-action of their influences that it is hoped to attain the effective realization of the higher and more prosperous standard of life which has been characterized as "better business", "better farming" and "better living" .
Sir. Horace Plunket, the Founder of Irish Co-operation, sums up the Theory and Practice of Co-operation in Three famous maxims "Better Farming", "Better Business" and "Better Living”.
"Co-operation as a way of life whereby people unite democratically in the spirit of - mutual aid to get the largest possible access to the things and services that they need".
-I.P. Warbase
Co-operation is the act of poor persons voluntarily united for utilizing reciprocally their own forces, resources or both under their mutual management to their common profit or loss."
-Herrick,
In the words of Robert Owen, Charles Guide etc., (Common Wealth School) believed in substituting Capitalism by Co-operation so that the society may be restructured and refashioned.
The Co-operative Enterprise or Yard Stick School view Co-operative Society as an economic instrument for the maintenance and furtherance of the economic interests of its members.
Lenin observes: "Co-operative Societies can help the transformation from Capitalism to Socialism and finally to Communism”.
The basic idea behind Co-operation is "Self Help and Mutual Help" and Mutual Aid and “Each for all and all for each”.
The self help made effective by organization is called Cooperative Society. The Co-operative society is defined by law as an organisation which has as its object" the promotion of the economic interest of its members" or "the promotion of thrift, self-help and mutual aid among agriculturists and other persons with common economic needs, so as to bring about better living, better business and better methods of production.
The definition of Co-operative Society has varied according to time, place and persons, resulting in different views. Based on the above definitions, it is clear that there are certain attributes or features of Co-operation.
FEATURES OF CO-OPERATION
Co-operation is a special method of doing business. Now co-operation enters all fields of study. Just like that of other ventures, co-operation is a venture which possesses the following features.
They are:
1. An Association of Persons
A Co-operative Society comes into existence when a group of individuals join hand and form an association.
2. An Enterprise or undertaking
Though a Co-operative lays stress on ethical standard, it is basically an enterprise. It is run by members themselves at their own cost and at their own risk.
3. Voluntary Association
An individual is free to join the Society and resign from his membership of the Society at his will and discretion.
4. Service Objective
The main object of co-operative society is to serve its members rather than to earn profits..
5. Democratic Management
The Co-operative Society follows the cardinal principle of democracy Le, one man one vote. The affairs are handed by the Board of Directors. The capital does not get any special treatment over human being in co-operation.
6. Equity
No discrimination among members is made on the grounds of religious faith, political ideology, educational qualifications and so on.
7. Norms of Social Justice
There is no class division among capitalists and working class in Co-operation.
8. A part of Socio-economic Movement
The Co-operative movement is viewed as a constituent part of the overall socio-economic movement of the country.
9. It is based on proportionality or equality
The surplus is distributed not according to share taken but according to the proportion of business operation a member has effected with the society.
10. It is a Universal Movement found in all countries of the world.
IMPORTANCE AND GROWTH
Co-operation brings together Peoples and Nations and facilitates peaceful co-existence. According to J.S. Mill, a Classical Economist, Co-operation transforms human life from a conflict of class struggle for opposite interests to a fair rivalry in the pursuit of the common good of all OS. Mill, Principles of Political Economy, 1976). The Modern Scholars viewed Cooperation as “a Special Method of Doing Business" (T.N. Hajeela, Principles, Problems and Practice of Co-operation (Delhi: 1981) P.I). Again the Modern concept is that Cooperation is established to perform certain specific functions. It is found in Local, Regional, National and International levels covering different areas. Now Co-operative Societies are established in all spheres of our economy. In the Primary Sector, there are Co-operatives for Farming, Marketing, Processing, Fishing and Dairying. In the Secondary Sector, we have Industrial Co-operatives and in the Tertiary Sector, we have Co-operative Banking. In addition to these, there are Consumer Co-operatives, Housing Co-operatives, Labour Cooperatives, Women's Co-operatives, Employees Co-operative Societies and Societies for Scheduled Caste and Scheduled Tribes.
Kerala is predominantly and agricultural State with 46 percent of the workers engaged in agriculture and allied activities. The total agricultural credit disbursed through Cooperative Societies during 2003-04 amounted to Rs. 386.21 Crores.
In Kerala, the Co-operative Credit Structure includes Kerala State Co-operative Bank with its 14 District Banks and 1648 Primary Agricultural Credit Societies and the Kerala State Agricultural and Rural Development Bank witl1 its 59 affiliated Primary Agricultural Development Banks. In the distribution of Short term and Medium Term agricultural credit, Kerala follows a Three-Tier System. At the apex level there is the State Co-operative Bank having 15 branches. At the Distract level, there are District Co-operative Banks, one each for a District and 1452 Villages in Kerala covered by Primary Credit Societies/Banks. The membership of the Primary Credit Societies were 143.18 lakhs in 2003-04 and covered 197.111akhs of the weaker sections of the community.
Considerable attention was given during the past few decades to build the Primary Agricultural Credit Societies into stable institutions. It is essential for distributing loans to small farmers in rural areas. "The Primary Agricultural Credit Societies have continued to remain the weakest link in the entire Co-operative Structure." (Report of the Banking Commission, 1972)
The main problem that an Agricultural Credit Society faces is the heavy over dues. The Reserve Bank of India appointed a Study Team to examine the over dues of Cooperatives in 1972. They submitted the Report in 1974. According to them, lack of will and discipline among the cultivators to repay loans was the principal factor responsible for the prevalence of over dues in Co-operatives. Defective lending policy pursued by Co-operatives, the apathy of the management in taking quick action against recalcitrant members and absence of favourable climate were other contributing factors (RBI Report on Currency and Finance, 1973-74).
OBJECTIVES OF CO-OPERATION
Self help made effective by organization is called Co-operative Society.
The main objectives of co-operatives are:
Ø Elimination of Middlemen
The first and foremost objective of co-operative society is to remove the middlemen in different fields, who take away the gains that should have gone to the real beneficiaries.
Ø Raising Economic Status of the Poor
The most basic aim of a Co-operative society is to raise the standard of living of the poor.
Ø Removal of the Ills of Capitalism
The basic cause of the ills of capitalism is the profit motive. This leads to exploitation, class struggle, economic inequality and unfair competition. These evils adversely affected the interests of workers and gave birth to Co-operative Movement. Therefore, the aim of Co-operation is to restrict the amount of profit and provide better service to its members.
Ø Raising Moral Standards of its Members
Co-operative movement wishes to direct human life towards goodness by raising their moral standards.
Ø Increasing the Prosperity of the Whole Community
A Co-operative society aims at bring about the welfare of not a particular individual but of the whole community.
Ø Abolition of Social Inequalities
The feeling of 'high' or 'low' among members of the community act as a cause of social tensions, the removal of which is the goal of the co-operative movement.
Ø Political and Religious Neutrality
As far as possible, a co-operative remains aloof from political parties and religious groups.
Ø Development of Corporate Life
A Co-operative aims at providing a corporate life to the weaker sections of the community.
BENEFITS OF CO-OPERATION
The benefits of co-operation are studied under Three broad categories viz.,
1) Economic Benefits
2) Social Benefits; and
3) Educational Benefits.
1. Economic Benefits
The following are the Economic Benefits derived out of Co-operative Form.
They are:
Ø The substitution of profit incentive in business by that of service of service to the community.
Ø A more equitable distribution of wealth.
Ø A break up of monopolistic tendencies.
Ø Increase in purchasing power and real wages to individuals. .
Ø Reduction in cost of distribution system by elimination of unnecessary middlemen.
Ø The more accurate correlation of demand and supply.
Ø Stabilisation of employment.
Ø General improvement in employer, employee relationships.
Ø Cheap marketing and processing of farm products at reasonable prices.
2. Social Benefits
The important Social Benefits are as follows:
1. To provide a unique education in democracy, responsibility and toleration.
2. To train for political power.
Ø To evolve an industrial relationship among all.
Ø To preserve a strong friendly or family spirit and sense of pride and power this is impersonal.
Ø To secure rational construction and unifying approaches to social and economic problems.
Ø To prevent under-employment and unemployment. '
Ø To secure moral as well as physical satisfaction of pure quality, correct weight and fair dealings.
Ø To prevent exploitation of man by man.
3. Educational Benefits
The individual learn by experience gained in practical work of co-operation. Co-operation and education go hand in hand for "some times education produces co-operatives, while sometimes co-operation sponsor education." Though better education, the social and economic conditions of the member is improved.
In short, we can say that Co-operations is the noblest ideal which transforms human life for a conflict of class, struggling for decisive interests, to a friendly rivalry in the pursuit of the common good for all.
ASPECTS OF CO-OPERATION
Co-operation is essence of human beings and is as old as Adam and Eve. Co-operation is one way of conducting certain parts of the ordinary business of life and can be applied to any; form of economic activity. The success of the movement depends on the development of the co-operative spirit. The spirit here refers to the loyalty and patriotism towards the organisation. Co-operation has three-fold aspects.
They are:
Ø Economic aspects;
Ø Moral aspects; and
Ø Social aspects
Economic Aspect of Co-operation
The main basis for starting a co-operative society is the necessity of satisfying a common economic need by mutual help and mutual effort. It means that the purpose of doing some business by a co-operative organisation is for the material and economic welfare of the members. The satisfaction of their common economic needs by the co
Operative method, the members are by themselves able to improve their economic conditions and raise themselves from weakness to strength.
Moral or Ethical Aspect of Co-operation
Co-operation instils into men's minds, the idea of hope and progress and revolutionizes their outlook on life. The successful working of co-operative organizations depends on sense of brotherhood and common fellowship and elements of love and sacrifice. Co-operation returns money value for honesty and other virtues. Honesty may be a policy in other organizations, but it a necessity in co-operation, which undoubtedly exerts a strong; influence in favour of the growth of those virtues. Co-operation is religion applied to business and the very motto of co-operation is" Each for all and all for each" signified the loyalty, good fellowship, and corporate feelings. "Co-operation aims at the production of fine human beings", a declaration of Alfred Marshall at a Co-operative Congress held in 1889 reflected the greatness of moral value
of Co-operation. .
Social aspect of Co-operation
Co-operation plays an important role in social welfare. Co-operation organisation is a remedy for the present inequalities of wealth.
The main social values attributed through co-operative organizations are :
Ø To train the people to take initiative in organizing;
Ø To assume responsibility in administration and direction; and
Ø To create experts from their own ranks to carry on enterprises in their own interests
The significant result of the co-operative movement is that it teaches the people to administer their own affairs. Its social ideal is the creation of the greatest happiness of all.
In short, it can be said that co-operation is an industry where fine rational human beings are produced with the materials of honesty, loyalty, unity, quality and service
To conclude, co-operation is an economic, moral and social movement. The well-known Irish Co-operation said, "Membership of co-operative societies is a practical education in Economics fitting men for public service and by its principles, it fosters the spirit of citizenship".
1. Define the term Co-operation?
2. Explain the meaning of Co-operation?
3. State the importance and growth of Co-operation?
4. Explain the Benefits of Co-operation?
5. Briefly explain the objectives of Co-operation
6. Trace the origin and meaning of the term Co-operation 7. Explain the basic features of Co-operation
8. Explain briefly the basis of co-operation.
9. State the aspects of co-operation.
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