Co-operative Movements in Nepal

Sunil K . Mahato

Content
Meaning and concept

Historical background
Types of Co-operative in Nepal Current scenario of Co-operative in

Nepal Conclusions and suggestions

Sunil

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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 Sunil 7/31/2012 not only one but for all

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 members

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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 shares
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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)
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Types of Co-operative In Nepal

Objective Number Capital of Cooperat ive
8888 3465 1687 2964 222 7,278,58 1 922,740 132,746 542,257 18,737

Savings

Investm ent

Total income

Total Expendit ure

1,806,72 8 495,490 589,894 472,963 14,005

Saving and credit Multipurpose Dairy Agro Electricity

42,930,6 49 12,805,7 38 111,149 1,252,49 6 10,324

48,885,5 74 48,885,5 74 9,163,27 7 121,365 2,379,11 3

3,862,72 4 640,386 685,460 925,798 11,677

Others
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Vegetable of

Sunil

758
182

242,961
2,985

777,182
9163

45,264
773,150

196,399
14,026

298,413
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10,316

Contd
Science and Technology Coffee Health Tea Herbal Beekeeping Total 82 66 50 75 38 41 68,512 766 32,203 8,349 2,289 418 77,189 652 24,885 5,189 392 422 78,,015 748 444,678 8100 751, 682 643,546 1,559 25,684 5,741 1,120 87 639,326 232 29,157 5,367 1,221 127

19,724 9,360,530 58,045,13 61,549,46 7,023,580 4,372,739 9 9

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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 capital
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 Although there are 31 commercial and 88

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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 cooperatives

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 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 returns

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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 fee

Loan amou nt

intere st 44,00 0

Loan fee 200

Aawh an fee 2000

Memb ershi p fee 2000

Organization development fee

Valuat Othe ion r fee fee 2000 2000

Total fee 5420 0

Loan shar e

2000

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Cooperative Act 2047

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Conclusions and suggestions

Cooperative movement has been very Successful

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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 of cooperative Sunil 7/31/2012

 The Cooperative Movement has dramatically

evolved after enactment of the cooperative Act 1954

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Suggestions
The government and central bank should take the

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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 Sunil

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 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 attitude

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Thank you

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