An Assignment

On the topic of

2010

Co-operative Society in Bangladesh and its Future Perspectives

Submitted to..

Submitted by

Mr. Md. Shahriar Parvez

Course Instructor: FINANCIAL INSTITUTIONS(FIN403) ID # 09120280 Lecturer, School of Business City University Programs: BBA Batch: 20th

(Md. Mehedi Hasan)

8/25/2010

Reference: The classes of honorable sir Mr. Md. Shahriar Parvez. One of my favorite guys Mr. M.M.
Hasan who served me by serving some rare information of his organization which helped me to prepare this assignment. And from some texts regarding Co-operative Societies, websites, yellow pages, newspapers and some magazines.

Acknowledgements: I want to show my respect and honor to my honorable sir Mr. Md. Shahriar
Parvez who makes the lessons very easy to understand in the classes. I find him very friendly in the classes and any where with my lessons. One of my favorite guys Mr. M.M. Hasan who served me by serving some rare information of his organization which helped me to prepare this assignment who deserves regret

Scopes:
I have a laptop that assures power supply without any disturb and even during the unrest situation of power in country.

Lacking:
Laptop may give me nonstop power supply, but in this late summer working without any air since disturb of electricity is so tough. Again unavailability of internet and proper information cause sufferings for me.

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Contents:
A Brief Introduction of Co-operative Society Definition of Co-Operative Organization History of Co-operative Society Co-operative Society in Bangladesh History of Co-operative Society in Bangladesh Importance of Co-operative Organizations in Bangladesh Model of Co-Operative Society for Changing Days Lacking To Achieve the Poverty Alleviation Goal Conclusions

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A Brief Introduction of Co-operative Society

Co-operative means the alien efforts. Since it origin from the mutual co-operation its other name is co-operation. Each other, unity is strength, self reliance is main base etc are its slogan. To go ahead with alien effort the main thinking of originate co-operative organization. After the industrial revolution in capitalist society the classification basing on property is noticed. As a result the lower income class including occupied, businessmen and others classes of people fall into an economic unrest. To quit from such type of situation co-operative organization originates. Although the concept co-operative society starts in sense during the last part of 1700s but it get physical shape at the start of the industrial revolution. In 1752 US president Bengemin Franklin formally establishes co-operative organization for first time. In Britain co-operative organization formally starts in 1844. At that time in Rochled of Britain 28 weaver starts this type of business only with 28 pound capital in hand. The definition of co-operative society is hidden in its name. (Co = mutual, operative = supportive) = supporting or helping each other. Therefore, when some people of same class, pattern and manner decide to be alien in order to help or support each other and do some financial activities then it is called co-operative society. There are uncountable examples in this world that proves and shows many people specially neglected have changed their days by having under the shade of co-operative society.

Definition of Co-Operative Organization

Co-operative means the alien efforts. In simple words, to make economic welfare of salves with alien force is called the Co-operative Organization. In fact, some individuals of lower income class willingly establish a business organization according to the Co-operative Act, with unity, equal right and cooperation that is called Co-operative Organization. International Labor Organization(ILO): an association of persons usually of limited means who have voluntarily joined together to achieve a common economic end through the formation of a democratically controlled business organization making equitable contribution of the capital required and accepting a fair share of risk and benefit of the undertaking.

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History of Co-operative Society

To quit from neglect co-operative organization originates. Although the concept co-operative society starts in sense during the last part of 1700s but it get physical shape at the start of the industrial revolution. In 1752 US president Bengemin Franklin formally establishes co-operative organization for first time. In Britain co-operative organization formally starts in 1844. At that time in Rochled of Britain 28 weaver starts this type of business only with 28 pound capital in hand. Simultaneously in Germany farmers co-operative society and in France producers cooperative society was formed.

Co-operative Society in Bangladesh

Although there are many co-operative societies in Bangladesh, the main objective of this is not found. Nowadays it is not seen that the deprived and low income class are forming cooperative society. Rather it is said that the power holders form it to raise their power in order to use the power in negative ways. Most of the cooperative societies are now Multipurpose or Social welfare cooperative societies. Where the organizations fail to achieve and follow their main objectives and purposes how will be they able to achieve multi purposes. Again, by forming cooperative society those cant do their own welfare how will be they able to make the welfare of the society? Only a very few cooperative societies are seen in Bangladesh those are successful. Bangladesh Milk Producers Cooperative Union Ltd.(Milk Vita), Uttora Finance and Investment etc are renounced.

The revolution of co-operative society can change the life of the people of Bangladesh. The nonprofit method is not found here. But there are some organizations (co-operative society) that
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have still been showing their successful steps in the field. I will discuss about some examples of successful co-operative societies and show that how one co-operative society can be successful and what adjustment should those organizations bring and show some of their lacking and a model of future co-operative society that can help Bangladesh and Bangladeshis to change their lives.

History of Co-operative Society in Bangladesh

A dairy plant having the capacity of handling 2000 liters of milk per day was established at Lahirimohanpur,in the district of Pabna(now Sirajgang district) established in the year 1946.The name of the organization was National Nutrients Co. Ltd. With the target to sell the processed milk and milk products in Kolkata (India) as the city had railway link. But the idea could not be materialized due to the partition of India during independence in the year 1947.Afterwards Eastern Milk Products Ltd. emerged under the brand name of Milk Vita with the dairy products viz. milk, butter and ghee (boiled milk fat)etc under private ownership. In year 1965 first Eastern milk producers co-operative society Union Ltd was formed by the Government patronization. But the economic condition of the organization did not stable and there was no alternative but to hand it over to Co-operative Marketing Society. The project envisaged the purchase of milk from the individual poor, marginal and landless milk producing farmers under the fold of Primary Milk Producers Co-operative Societies with fair price and guaranteed market, transportation service of the milk to the rural plants for preliminary processing and onward transportation to the main production plants for final processing of market milk and other products with the brand name Milk Vita. In the year 1972, soon after independent Bangladesh FAO, UNDP and DANIDA provided technical and financial assistance to establish a sustainable co-operative dairy development program. At initial level involved 4300 very poor and landless households in remote rural areas and provided complete package of milk production enhancing technologies, rural skill and capacity for milk collection, processing, marketing system. Thus the two tier milk vita cooperative dairy complex has grown into a successful commercial dairy enterprise.60, 000 farmers have organized 400 primary village milk producers co-operatives having processed and distributed to all the major cities of the country.41.32 million liters of milk surplus to their
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household requirement and earned Tk.696.85 million (US$12.04MILLION) and per capita increased to 1.91 liters in a day while per capita and earning raised ten times in a day.

Importance of Co-operative Organizations in Bangladesh

Creation of unity and awareness Awakening working zeal and enthusiasm Establish large scale of business Teaching morality Development of skills Creating habit of savings and formation of capital Creating loan facilities Reducing malpractices of middlemen Solution to unemployment problem Poverty alleviation

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Model of Co-Operative Society for Changing Days

I dream for a Bangladesh that is self reliant, where the poverty and hunger will be no more in my motherland. To make my dream true I started to think about the road map. I tried to find a person who also dreams for a Bangladesh without poverty and hunger. I found a role model in front of me. This is Dr. Mohammad Younus who has already got the famous Nobel Prize for his contribution on poverty alleviation through the invention of Micro Credit. But another question arose in my mind that is it in fact successful to poverty alleviation. I dont think so. I think it could not successful for some reasons:

The people of Bangladesh are very poor. As a result after taking Micro Credit (MC) they spend those to meet up their basic needs before they could invest it in a profitable business or other sector.

The rate of interest against the MC is too high that hinders the poverty alleviation process. The most of the people of Bangladesh are illiterate and are not skilled. As a result they cannot utilize the money of MC in proper way. The monitoring system of MC provider organizations doesnt assure the proper utilization of money.

Dr. Md. Yunus The Fighter for Poverty alleviation

Since the main purpose of MC is to make the poor people at least sufficient, high rate of interest is hindering the process.

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Again the current trend of cooperative organizations is not up to the mark. Their Multi Purpose system fails to show successful operation of cooperative society. Lacking To Achieve the Poverty Alleviation Goal: We are the Bangladeshis by born hard working but we have the lacking of proper knowledge. Again we waste half of our manpower leaving them into house, those are women. So first of all we have to assured the proper use of our manpower. We have the lacking of unity. Over population is also a problem. We have the lacking of skill too. We have the lacking of capital. We have lacking of knowledge regarding business and the scope of business. We have the unemployment problem though it may be a positive aspect of being successful in cooperative society. We have to make the cooperative society as a practice among our 80,000 villagers.

To bring an economic revolution in Bangladesh we have to overcome the above factors. Those may be overcome through forming potential cooperative societies and some of them have to overcome before we have formed the cooperative society. Model: To make the economic revolution we have to make sure that the each and every village of Bangladesh is in the shade of cooperative society, each and every person (especially lower income class) is a member of a cooperative society and each and every community is united. Each village will form a cooperative society that will work as the village government and those will not think about their own benefit only but they will think about and cooperate to the neighboring cooperating society. Each village cooperative society will have some branches and inter link among the village cooperative societies in a particular area (like union/upojila).
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o Farmers branch o Women branch o Include professionals o Including businessmen o Producers branch o Micro credit branch o And many other branches that is required as per village structure.

Every cooperative society will involve its own manpower and other resources and export its surplus to the other cooperative societies that will solve the unemployment problem. By utilizing each inches of land production is to be boomed up. By creating social forests maintain ecological balance By reducing extra costs through a systemic way making capital by saving paisa by paisa. Making opportunity of large scale of business Making sure the right price of the produced goods (it is seen that a product that an end user is purchasing by TK50 but the producer especially farmers are getting TK6-8 per unit)

Making sure the sell of the produced goods Using own produced products as much as possible Making sure the social welfare Contributing on the communication system, health, family planning and sanitation development

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We have to make sure the unity and the intension of cooperation among the members

Making the population as wealth by making them skilled Making sure the education for all Making sure the deprived are benefited Creating an positive image among the members Making sure the own welfare, the social welfare will be assured automatically

Overall every cooperative society will have to have a goal to make every village developed individually considering the villages as the country.

Conclusions:
Therefore, if the above conditions can be followed properly I can promise that the economic revolution of the people of Bangladesh will be ensured. I dont know any law or any system. I know to make welfare of all anything can be sacrificed and anything can be done. The above system is just from my point of view, their may be argument and there may be other comments. But I think that through this way it can be alleviated the poverty problem of Bangladesh and we will be able to make Bangladesh as a developed country.
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