Comment on the role of cooperatives in rural development (UPSC CSE Mains 2021 - Sociology, Paper 2)
According to ILO, a cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
Role in Rural Development
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- Cooperatives are community-based, voluntary in nature, rooted in democracy, flexible, and have participatory involvement, which makes them well suited for economic development
- It is an association of persons and not of capital
- It generates employment and eliminates all forms of exploitation.
- It educates people the principles of equality, mutuality, and co-operation.
- As cooperatives foster economies of scope and scale, they increase the bargaining power of their members providing them, among others benefits, higher income and social protection. Hence, cooperatives accord members opportunity, protection and empowerment-essential elements in uplifting them from degradation and poverty
- They promote the “fullest participation of all people” and facilitate a more equitable distribution of the benefits of globalization.
- They provide their employees with the opportunities to upgrade their skills through workshops and courses and offer youth in their base communities short and long-term employment positions.
- Cooperatives provides agricultural credits and funds where state and private sectors have not been able to do very much.
- They provide strategic inputs for the agricultural-sector; consumer societies meet their consumption requirements at concessional rates.
- It softens the class conflicts and reduces the social cleavages.
- It reduces the bureaucratic evils and follies of political factions
- It creates a conducive environment for small and cottage industries.
- Two of the most conspicuous success stories emerging from the implementation of Cooperative model were the White Revolutionand the Green Revolution. As per data from the National Dairy Development Board, in 2019-20, dairy cooperatives had procured 4.80 crore litres of milk from 1.7 crore members,while selling 3.7 crore litres of liquid milk per day. Farm sector experts point out that cooperatives have also positively impacted post-harvest processing, storage, transportation, trade, and input procurement for a range of activities in the agricultural sector.
- The institution of cooperative marketing societies by the National Development Council (NDC), coupled with the passage of the Multi-State Cooperative Societies Act by the Parliament in 1984 enhanced the importance of the movement. By definition, therefore, cooperative societies were envisioned as a combined agglomerate of persons voluntarily coming together to meet their common economic, social, and cultural needs through a jointly-owned and democratically-controlled enterprise.
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