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Union Budget ignores Cooperative Sector

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Union Budget ignores Cooperative Sector

Posted on 13 April 2012 by Dipak Kumar

By Mohan Mishra, Director, NCUI

It is disheartening to note that the Union Budget 2012-13 had nothing for the Indian Cooperative Movement rather it reaffirms the facts that the government is blind to the sector despite this sector having made remarkable progress.

It has done quite well in the field of rural credit, fertilizer, dairy, sugar, consumer, fisheries, labour, housing, distribution of agriculture inputs, marketing, storage etc. It is not surprising that the Union Budget has ignored the sentiments and hopes of 6 lakhs cooperative societies with a membership of over 25 crores with 100% coverage of rural areas.

In a bid to achieve the elusive 4% farm growth, the Union Budget 2012-13 has proposed Rs. 1 lakh crore increase in Agriculture Credit target for 2012-13 while proposing 18% high in allocation to agriculture sector to Rs. 20208 crore.

There is a clear cut thrust on the Second Green Revolution, with the focus on irrigation. It has proposed a 13% jump in allocation to irrigation to Rs. 14242 crore. Agriculture cooperatives will play a pivotal role for the success of Second Green Revolution in order to achieve food self-sufficiency as well as developing the rural infrastructure.

The agriculture in the country has more than 90,000 primary agriculture cooperative societies handling credit, supplies of agriculture inputs, marketing and storage activities. The higher allocation of the resources for the cooperative in these areas is the need of the hour and proactive government support otherwise it will be a distance dream to witness the Second Green Revolution in the country with sustainable and inclusive growth.

The Finance Minister said in his budget speech, that he proposes to raise the target for agriculture credit in 2012-13 to Rs. 5,75,000 crores. However, the interest rate on crop loans for those farmers who pay on time has been kept unchanged at 4% and there is also proposed allocation of 10,000 crore to NABARD for refinancing regional rural banks to disburse short term crops loans to small and marginal farmers.

The NABARD has to play a proactive role for strengthening the cooperative rural credit institution in the country and identify new area and initiative for cooperatives in financial inclusion. The Kisan Credit Card will be also modified to use them through ATM. It will boost agriculture credit available to the farmers provided the cost of funding of ATM machines is born by NABARD.

The outlay under Rashtriya Krishi Vikas Yojna (RKVY) has also been raised by over 17% to Rs. 9217 crore. The cooperative can focus in the areas of development of major crops, machanisation, soil health, horticulture, integrated paste management, practices, marketing development, extension service etc. through participation in the RKVY scheme.

 

The budget allocation for bringing green revolution in Eastern India have also been increase by Rs. 1000 crore. The Eastern India can show good results in the green revolution by strengthening the PACS in the cooperatively under developed region. This will not only strengthens the agriculture activities but also creates the job opportunities through cooperative enterprises for the local area and reverse the migration by making rural living more attractive.

The budget also proposes a national mission on food processing to provide thrust to the sector. The marketing, processing and consumer cooperatives will have ample opportunities to strengthen its activity by diversifying in food processing sector which is a sun rise sector of Indian economy.

We know that three fourth of the India population depends upon agriculture and allied activities and there is a continuous fall of share of agriculture in India’s GDP since 1991. It has been felt that the rural population has not been given its due share from the countries rapid economic growth due to callus attitude of the policy maker towards cooperative sector. We are not hesitant to say that unless due recognition is being given to cooperative it will be difficult to revive agriculture and rural India in future.

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CITIES AND CLIMATE CHANGE

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CITIES AND CLIMATE CHANGE

Posted on 24 August 2011 by Dipak Kumar

By Dr.M.L.Khurana

Climate change today is one of the most serious problems facing humanity, effects of which long-term, global and even life threatening. The problem is not only environmental but it is encompassing social and economic issues within, which need to be addressed without delay.

Climate change refers to sustained changes in the earth’s climate – including temperature, precipitation, wind and weather patterns. Global warming refers to the rise in the average temperature on the Earth’s surface. Carbon dioxide levels are higher than at any time in the past which has been caused by human activities such as the burning of fossil fuels (oil, gas and coal), indiscriminate use of natural resources and their wastage and destruction of forests and natural biomes. The recently concluded International Conference on Climate change hosted by the University of Copenhagen have made alarming predictions from some of the world’s leading scientists that sea levels could raise by one metre or more by the end of the century.

Projections for the 21st century indicate that the earth’s average temperature will rise by anything between 1.4 and 5.8 degree Celsius. The ten warmest years on record have all occurred since 1990. Without coordinated and immediate action across the globe, the earth’s climate will reach a critical ‘tipping point’ beyond which dangerous climate change will occur which would not be reversible, may be making human survival difficult.

There would be rise in the sea level which would eventually result in displacement of people. For instance, one metre rise in sea level would displace about 7 million people in India alone. The Gangotri glacier in the Himalayas is the source of water for the perennial river Ganga. This glacier like many others all over the world has also felt the impact of climate change. Studies carried out in the past few years have shown that the glacier is retreating at a speed of about 30 metres every year. If warming continues, it will melt rapidly, releasing large volumes of water but once this source begins drying, there may be dry periods with very little water flowing in the river.

The future impacts of climate change, identified by the Government of India’s National Communications (NATCOM) in 2004 include:

?    Decreased snow cover, affecting snow-fed and glacial systems such as the Ganges and Bramhaputra. 70% of the summer flow of the Ganges comes from melted ice.

?    Erratic monsoon with serious effects on rain-fed agriculture, peninsular rivers, water and power supply.

?    Drop in wheat production by 4-5 million tones, with even a 1ºC rise in temperature.

?    Rising sea levels causing displacement along one of the most densely populated coastlines in the world, threatened freshwater sources and mangrove ecosystems.

?    Increased frequency and intensity of floods. Increased vulnerability of people in coastal, arid and semi-arid zones of the country.

?    Studies indicate that over 50% of India’s forests are likely to experience shift in forest types, adversely impacting associated biodiversity, regional climate dynamics as well as livelihoods based on forest products.

India is home to a third of the world’s poor, and climate change will hit this section of society the hardest. Set to be the most populous nation in the world by 2045, the economic, social and ecological price of climate change will be massive. Although not an emitter historically, India currently has one of the fastest growing economies in the world. With a government target of 8% GDP to achieve developmental priorities, a share of one sixth of the global population, and changing consumption patterns, India’s emissions are set to increase dramatically.

Growing at an almost breakneck pace, and guzzling coal, gas and oil in large quantities, we are today, the fourth largest emitter of greenhouse gases worldwide. Although our per-capita emissions are among the lowest in the world, our growth rates imply that the past is no predictor of the future. The most recent IPCC report suggests that India will experience the greatest increase in energy and greenhouse gas emissions in the world if it sustains a high annual economic growth rate. The International energy Agency predicts that India will become the third largest emitter of greenhouse gases by as early as 2015.

India imports large quantities of fossil fuels to meet its energy needs, and the burning of fossil fuels alone accounts for 83% of India’s carbon dioxide emissions. Nearly 70% of our electricity supply comes from coal.

The following Tables provide a snapshot of vulnerabilities to climate change hazards in the four mega cities. The aim is not to assess definitively the vulnerability but instead to identify a set of data to understand the vulnerabilities in the four cities of analysis.

Table 1 : Vulnerability to Climate Change

City Pop. Pop. In 2020 Land Area Sq.Km Density Total Slum Population % of slum population Share of migrants in total population Population in dry lands (000) Population LECZ (000) Per Capita water availability (M3) Per capita Water 2035
Delhi 12.79 25.83 1295 11050 1851231 18.7 16.4 16.800 (100%) - - -
Greater Bombay 16.37 25.97 484 29650 6475440 54.1 15.15 - 8.056 (46%) 277 101
Calcutta 12.22 18.54 531 23900 1485309 32.5 6.23 - 14000 (88%) 243 102
Chennai 6.42 8.88 414 14350 819873 18.4 6.64 2.358

(30%)

2.855 (36%) 224 113

Source: Slum Population, Census of India 2001.

Table 2: Climate Change Risks

City Delhi Mumbai Calcutta Chennai
Major risks of climate change Raising intense rain fall, heat waves, cold waves, increased droughts, water scarcity Coastal flooding, cyclones, sea level rise, increased rainfall, increased malaria risks Tidal upsurge, cyclones, flooding and water logging. Sea level rise, costal flooding, cyclones, landslides, tsunami, drought, salinity intrusion
Predicted Climate change +1.5 to 2.5° Air temperature, Central Range +15 to + 35 percent precipitation Central range. Annual average temperature increase 1.75° and 1.25°C by 2050 BAU, average annual decrease in precipitation 2%for the A@ and an increase of 2% for the B2 scenario (Sherbinin et al 2009) Not available Not available

Source: Centre for Climate Systems Research, Columbia University

Effect on Cities due to Climate Change

Cities are home to half the world’s population and this population is steadily growing both due to population growth and migration.  Cities world over consume over two-thirds of the world’s energy and account for more than 70 percent of global CO2 emissions. The  effects of climate change will be strongly  felt in cities. Many of the world’s major cities are at risk of flooding from rising sea levels. Heat-trapping urban landscapes (buildings and paved surfaces) can raise the temperatures and lower the air quality dangerously through the Urban Heat Island effect. In cities of the developing world, one out of every three people lives in a slum, making them particularly vulnerable to the health and environmental risks posed by climate change. The vulnerability of human settlements in the slums or mismanaged urban areas particularly will increase. Also the climate change may worsen the access to basic urban services and the quality of life in cities. Most affected are the urban poor – the slum dwellers in developing countries.

Climate change is likely to increase the present climate hazards these cities are facing and it is typically associated with vulnerability and hazard exposure. It is important to understand the different pathways through which climate change can impact the urban residents and increase their vulnerability to climate related risks. The four megacities mentioned in the table above are particularly vulnerable to the impacts of climate change for three reasons. First, a large and growing proportion of people at risk from climate change lives in the four megacities of India.  Secondly, these urban centers in India are the engines of growth and successful national economies depend on the well-functioning and resilient urban centres. This provides an important economic rationale for addressing the current urban vulnerabilities to extreme weathers and expanding protection from likely future changes. Thirdly, very little attention has been given to the vulnerabilities of low income population in urban centres in India. For example populations living in the slum areas are most vulnerable to the impact of climate change. An Expert Committee set-up by the Ministry of Housing and Urban Poverty Alleviation  to look into various aspects of slum Census in its report has stated that India’s slum population is projected to rise to 93.06 million by 2011 and expected to cross 100 million by 2017.  These people will be most adversely affected due to climate related impacts. Till now most of the attention has been given to the rural population’s adaptation to the impacts of climate change.

Challenges Ahead

In the last few years several measures relating to environmental issues have been introduced. They have targeted increasing significantly, the capacity of renewable energy installations; improving the air quality in major cities (the world’s largest fleet of vehicles fuelled by compressed natural gas has been introduced in New Delhi); and enhancing afforestation.  Other similar measures have been implemented by committing additional resources and realigning new investments, thus putting economic development on a climate-friendly path.

At the local level UN-HABITAT strives to help cities in developing countries to address climate change and, at the national, regional and global levels, to raise awareness and to help counterparts to build the capacities needed to enable cities and local governments to address climate change effectively. Cities have the potential to influence the causes of climate change and they have the solutions to advance climate protection. The success of adaptation critically depends on the availability of necessary resources, not only financial, but also knowledge, technical capability, institutional resources and tools. UN-Habitat’s Cities and Climate Change Initiative (CCCI) seeks to enhance the preparedness and mitigation activities of cities in developing and least developed countries. It emphasizes good governance, responsibility, leadership and practical initiatives for local governments, communities and citizens. Building on UN-HABITAT’s long experience in sustainable urban development, the Cities and Climate Change Initiative helps counterparts to develop and implement pro-poor and innovative climate change policies and strategies

Steps to be taken by the Cities

Cities have greater responsibility now and must play a key part in finding solutions to this problem. The solution to this problem has to be directed towards the local  and regional needs but certain basic steps that can be taken are :

  • increasing the energy efficiency of their infrastructure such as buildings, outdoor lighting, and transportation systems;
  • using resources more effectively for example through advanced waste management;
  • producing clean energy at the district-level as well as sourcing clean energy from large-scale

suppliers;

  • encouraging  and engaging the young generation and making them aware of the

consequences of the climate change;

  • implementing bold steps to reduce greenhouse gas emissions that others may follow; and
  • Celebrating special days like independence day or republic day or festivals like Diwali and

holi by either planting saplings or cleaning their immediate surroundings or taking out small processions to encourage others to join .

A similar step has been taken by housing cooperatives at the local level which is encouraging people to take positive steps for environment upgradation under the overall umbrella of the National Cooperative Housing Federation of India (NCHF), a nationwide organisation, the housing cooperatives are contributing in improving the environment of the dwelling place of an individual and thereby contributing in some way in the global challenge faced by humanity.  There are more than 100,000 housing cooperatives with a membership of about 70 lakhs.  These members can play a major role in joining hands with the National Action Plan by doing a simple task of planting at least one tree per member. Thus, there may be at least 70 lakh additional trees planted with the various housing cooperatives in India.  This will be extremely helpful in cleaning the environment and combating the challenge of global warming.

An appeal was issued by NCHF to all the state apex housing federations, district housing federations, primary housing cooperatives as well as other cooperative institutions to play an effective role in protecting environment.  All the 70 lakh members of housing cooperatives have been requested to join hands in protecting the nature and consequently helping the mankind to breathe fresh air; they have been urged to plant at least one sapling each for the cause.  NCHF Secretariat has received encouraging response regarding the appeal of tree plantation from housing and other cooperatives in various States.  Some of the cooperatives are proactive enough in conducting awareness programmes on global warming and benefit of planting trees, while others are contributing their bit by undertaking plantation in collaboration with the State Governments and NGOs.

With only such small efforts we can bring great changes. Although we may not be able to reverse the damage already done but we can surely stop any further damage so that our future generations be able to have a good living.

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Roadblocks before Cooperatives

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Roadblocks before Cooperatives

Posted on 11 June 2011 by Dipak Kumar

By Daman Prakash

It is now increasingly recognized that the co-operative system in India has the capacity and potentiality to neutralize the adverse effects emerging from the process of globalization. After economic liberalization under the new economic environment, co-operatives at all levels are making efforts to reorient their functions according to the market demands.

The failure of the public sector in several cases is a worrisome trend. Privatization has also failed to make an impact in the rural areas. Therefore there is great hope on the co-operative sector.

The paper examines the causes of slow progress and highlights the emerging role and challenges of the co-operative sector. In comparison to the step-motherly treatment of the past, co-operatives are now considered an important plank of development. The government is committed to co-operative development.

The co-operatives have inherent advantages in tackling the problems of poverty alleviation, food security and employment generation. Co- operatives are also considered to have immense potential to deliver goods and services in areas where both the state and the private sector have failed.

Co-operation in a vast country like India is of great significance because:

• It is an organization for the poor who wish to solve their problems collectively;

• It is an institution of mutual help and sharing;

• It softens the class conflicts and reduces the social cleavages;

• It reduces the bureaucratic evils and follies of political factions;

• It overcomes the constraints of agricultural development;

• It creates conducive environment for small and cottage industries.

Slow Pace of Growth in Co-operatives

Despite its rapid growth, the overall progress of Co-operative Movement during the last 100 years is not very impressive. Some of the principal road-blocks have been the following:

Government Interference: The Co-operative Movement in India was initiated in 1904 under the auspices of British government. Right from the beginning the govt has adopted an attitude of patronizing the Movement. Co-operative institutions were treated as being a part and parcel of the government administrative set up. The govt interference thus became an essential element in the working of these institutions.

As a result people’s enthusiasm for the Movement did not grow. After attainment of Independence in 1947 some healthy changes in the attitude of the govt did take place. It was not given proper importance that it deserved in any Plan. Even today quite often co-operative societies are imposed upon the people. Though this increases in the membership of co-operatives, the spirit of co-operation cannot flower fully. Neither it grew according to any plan nor did it become a people’s Movement. It just grew very slowly and that too haphazardly. It turned out to be a State-driven institution.

Mismanagement and Manipulation: The essence of the Co-operative Movement is that it gives the farmers the status of shareholders and assures them agricultural, educational and other facilities. Co-operative institutions are small institutions owned by a small number of members. A hugely large memberships turns out to be mismanaged unless some secure methods are employed to manage such co-operatives. Over the years, this truly democratic idea got corrupted and farmers with larger holdings grew more powerful thereby altering the power structure of the co-operatives. In the elections to the governing bodies money became such a powerful tool that the top posts of chairman and vice-chairman usually went to the richest farmers even though the majority of members were farmers with small or medium-sized holdings.

Co-operatives do not enjoy level-playing field vis-à-vis private retail chains in the country. It is well-known that business houses cannot be run on bureaucratic lines.

Board members need to learn to take quick, appropriate and member-cum-customer friendly decisions. Traditional type of business of co-operatives must be conducted by competent and professionally-qualified personnel.

Lack of Awareness: People are not well informed about the objectives of the Movement, rules and regulations of co-operative institutions. Unfortunately, no special efforts have been made in this direction. People look upon these institutions as means for obtaining facilities and concessions from the govt. Lack of education,dirty local politics, caste-ridden elections to the offices of co-operative societies, bureaucratic attitudes of the govt officers at the lower rank are some of the hurdles in spreading the correct information about the Co-operative Movement and in educating the members abut its true character and vital role in the society. It has been observed that a large number of members are not aware of the existence of byelaws, their rights and duties and the roles of office-bearers and management staff of the co-operative. Studies have shown that almost 90-92% of members of PACS in Uttar Pradesh have never seen copies of the byelaws of their own co-operatives.

Inadequate Role of Promotional Institutions: To create awareness among co-operative members and general public, the promotional institutions like the National Co-operative Union of India and the state Co-operative Unions/Federations must take a stronger lead to implement member education programmes. Field studies have shown that the educational instructors and field projects are getting ineffective due to:

[i] lack of programming for them;

[ii] lack of funds; [iii] inadequate supply of support material; and,

[iv] lack of trainers training programmes.

At present 40 field projects do not have any funds to carry out field activities, nor do they have any support material and work programmes. Also, much of the responsibility rests with the co-operatives themselves. They need to allocate some funds for the education and orientation of their members. The scope of central-level co-operative education fund needs to be revisited so that interested co-operative institutions and specialized agencies are able to generate training and educational materials.

Restricted Coverage: The Co-operative Movement has also suffered on account of two important limitations on its working. One is that the size of these societies has been very small. Most of these societies are confined to a few members and their operations extended to only one or two villages. As a result their resources remain limited, which make it impossible for them to expand their means and extend their areas of operations. Two, most of the societies have been single purpose societies. Such societies are unable to assess a total view of the persons seeking help, nor can they analyze and solve problems by themselves. The help these societies render thus can not be adequate. By assessing the persons and the problems only from one angle, these societies neither help properly the person nor make an optimal use of their resources. Under these circumstances it has not been possible for these societies to make much progress.

Functional Weakness: The Co-operative Movement has suffered from inadequacy of trained personnel. Lack of trained personnel has been caused by two major factors: [i] there has been a lack of appropriate institutions for training of personnel; [ii] unsatisfactory working of co-operative institutions qualified and experienced personnel did not feel attracted or motivated. The functioning of the co- operative societies, too suffer from several weakness. Some of these are, not being careful of the need of credit-seekers or their repaying capacity at the time of granting loans, making no adequate provision for repayment of loans, unsatisfactory accounts keeping, factional politics in the management, lack of co-ordination among various divisions of the co-operative structure, too much dependence on outside sources of finance, lack of and untimely auditing and inspection.

Thus there are several pitfalls. Poor infrastructure, lack of quality management, over-dependence on government, dormant membership, non-conduct of elections, lack of strong human resources policy, neglect of professionalism, etc. are the limiting factors. Indian co-operatives are also unable to evolve strong communication and public relations strategies which can promote the concept of co-operation among the masses.

Misconceived Concentration of Power: Although cooperatives are democratic business institutions, yet the distribution and exercise of power at the Board level is a matter of concern. In general, the principal task of the Chairman of the Board is to conduct the meeting and assist in formulating logical business proposals and take appropriate decisions. The chief executive of the cooperative is given the task of implementation of such decisions. In many cases it has been found that the Chairman, due to self-interest, assumes both roles as leader of the organisation as well as that of the executor of the decisions taken. They become executives reducing the chief executive/managing director to execute the orders from the Chairman. Such a situation generates manipulation and serves self-interest.

In a large number of small cooperatives, Chairmen are the bosses and the managers are mere clerks. To insulate the cooperative from such a situation, a careful study of byelaws is of great relevance where the rights and duties of chairmen and managers are clearly defined. It becomes necessary for cooperative enterprises to develop a proper chart of duties.

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Cooperatives ills: Managing Committee is monopolized by a few

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Cooperatives ills: Managing Committee is monopolized by a few

Posted on 23 April 2011 by Ajay Jha

Dr Daman Prakash


For the development of any socio-economic institution, like a cooperative, some of the fundamental requirements are: enlightened and well-informed members, objective and honest leadership, member participation in organisational and business aspects, professionally-qualified management personnel, belief in the philosophy and concept of Cooperation, and a close interaction with the members of the community. The universally-accepted Principles of Cooperation not only lay guidelines for management of cooperatives but are also based on certain basic values and ethics.

Islands of Successful Cooperatives

Studies carried out by the International Cooperative Alliance [ICA], a world association of cooperatives with over 220 Member-Organisations representing over 1 billion individual cooperative members from 99 countries in its membership, under its Global-300 Cooperatives, have concluded that enlightened membership coupled with professionally-qualified management have made these institutions strong. Some of the conclusions of the study are as follows:

Sunvalley Potatoes of Idaho of USA; Sun Maid Raisin Coop of USA; Sunkist Growers’ Coop of USA; SYSCO Corporation of USA [US$42 billion turn-over]; A-COOPS of Japanese Agricultural Cooperatives; Kibbuz of Israel; IFFCO of India.

Total revenue of studied cooperatives was over 1 trillion USD [Rs 50 lakh crore]; 14% growth rate and 10th largest economy of the world; 30% of list are in agricultural and food sectors; 20% more employees than all MNCs put together [100 million] [10 crores]; 90% Swiss retail business by cooperatives; World’s largest banks are cooperatives [France, Holland, Japan]; 28 from out of 300 top cooperatives are from Asia-Pacific Region: Japan-14, India-04 [Markfed-Andhra Pradesh, AMUL, IFFCO, NAFED], Singapore-02, Korea-02, China-01, Australia-03, New Zealand-02.

The Indian Cooperative Movement is the largest in the world with the following landmarks: 600,000 cooperatives – 60% agricultural; 100% villages covered; 30% of national population in membership; World’s largest cooperative credit structure; World’s largest HRD sector [Coop Member Education & Employees’ Training]; Highest number of national business and promotional federations [23]; World’s largest production and distribution network [IFFCO & AMUL]; Coop-Ice-creams enjoy 45% market share; Almost 50% of world sugar production through cooperative sugar mills; Govt support to coops through official agencies e.g., NCDC.  The former IFFCO Chairman was elected to the Board of ICA-global.

Though the spread of cooperatives in India is wide, yet there have been instances of gaps in their levels of development. It has been noticed that the islands of successes are mostly due to two important factors: [a] Enlightened membership and their satisfaction from the services provided, and [b] Management and community leadership. Provision of services and encouragement by leadership to participate in the affairs of their cooperatives, members develop a sense of belonging with their cooperatives and hence they carry out their business with their cooperatives.

With a view to identify members’ awareness on their role in their cooperatives a survey was carried out in two states [Uttar Pradesh and Punjab] on 2500 members. A summary of findings from field studies carried by IFFCO Foundation is given below:

-Less than one-fourth members participate in General Body Meetings;

-Managing Committee is monopolized by a few;

-Untrained and underpaid secretaries and managers;

-Majority of PACS suffer from high overdues;

-Majority of members have not seen/read the byelaws;

-Members sell their farm produce outside, not through their cooperative;

-PACS most do fertiliser business only;

-Fertiliser supplies are inadequate and some times untimely;

-Control of District Administration on fertiliser distribution;

-Business development plans are not properly prepared and implemented;

-No linkages with existing self-help groups;

-Upper tier cooperatives/federations often compete with their own affiliates.

Lack of participation by the members is mostly due to ineffective leadership and the services provided by cooperatives. Cooperatives should realise that they are there because of the members and they can prosper if members feel satisfied with the services. The organisational and management leaders have, therefore, an important role in the development of cooperatives which can help improve the livelihood conditions of smallholder farmer-members.

Besides organising member education and training programmes for primary cooperatives, IFFCO Foundation also conducts training programmes for members and office-bearers of self-help groups. It is emphasised that cooperatives and self-help groups are no doubt two separate institutions but their objectives are the same and both of them work for the upliftment and improvement of livelihood conditions of members. A SHG is a sub-system of a cooperative.

Action Points for Future Growth of Cooperatives

Based on the studies carried out by IFFCO Foundation and the suggestions made by cooperative members and leaders, the following steps need to be taken:

-           Business diversification of PACS to strengthen cooperatives and their business. Cooperatives can undertake insurance and micro-credit activities, commodity trading, distribution of agri-inputs e.g., seeds, farm chemicals, farm machines, irrigation, and agro-processing;

-           Promotion of Self-Help Groups as sub-system of cooperatives. Both the institutions can compliment and supplement each other. Lessons can be learnt from the states which have successfully implemented coo-SHG legislation e.g., Orissa State;

-          Promotion of proper leadership through education, training and awareness programmes;

-           Replicating the successes of PACS e.g., Malkanoor in Andhra Pradesh, Kheri in Punjab and Rau Cold Store in Indore, Madhya Pradesh;

-           Scaling-up successes e.g., dairying, sugar, and not to remain content with their existing achievements;

-           Undertaking extensively farm guidance and support services to farmers by using their cooperative institutions;

-           Preparing realistic business development plans and training of managers in the process of implementation and evaluation;

-           Preventing business federations from competing with their own affiliates. They should rather supply and assist their member-societies;

Genuine, honest and forward-looking leaders with full belief in the concept of cooperative enterprise, who can create a strong team of professional managers and enlightened members, are the key to the success of cooperatives.

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ICA’s 50 Years Commemorative Volume released

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ICA’s 50 Years Commemorative Volume released

Posted on 16 April 2011 by Dipak Kumar

By Daman Prakash

History tells the truth. History is a narration of how the events had moved and what role the leaders and people had played. History is authentic, if not distorted. History highlights the achievements, and documents how these achievements were realised. History tells where one had faltered and how the events shaped the destinies. History also assesses the means and the ends. It also charters the course of action for the future. History is pious, it is an itihas. We, in India, cherish our two important epics – Ramayana and Mahabharata, and we continue to recount the events and worship those who played an important role in preserving religion and ethics and upholding the principles. History upholds the virtues of organisations which had upheld the principles which had laid sound foundations for a purposeful life.

ICA – a thriving international organisation

The International Co-operative Alliance, established in 1895, is an organisation which upholds the principles of good conduct and high order in society, especially for those who considered themselves weak. Union is strength and good conduct and social behaviour are the hallmarks of this great international autonomous organisation. The ICA survived many odds in its life since its birth – two World Wars, upheavals of economic depression, transformation of economic systems, tormentations of financial crisis and several other roadblocks. But the pioneers of freedom, social justice, equitable distribution of wealth, protection of interests of consumers and producers, and international economic development, continued to guide the destinies of the organisation to an extent that it is recognised all over the world – by the grassroots members, international community and strong economic entities.

Today we find the ICA and co-operatives in all corners of the world. Over one billion people from 90 countries through 240 Member-Organisations are associated with it. One-sixth of world population professes its faith in the ‘Co-operative way of Life’. Asia-Pacific represents nearly 60% of the world co-operative population, and in these Asia-Pacific countries there are 71 Member-Organisations from 25 countries. ICA’s 300-Global Survey of world’s largest co-operatives has found that 25 co-operatives belong to this Region.

ICA in Asia-Pacific

Immediately after the World War-II, leaders from Asia Pacific and representatives of economically developed nations agreed to provide technical support to co-operatives in developing countries. Asia-Pacific region was chosen to be the arena of co-operative development. They agreed to provide this technical support to the Co-operative Movements through the instrument of the ICA Regional Office which was established on November 14 1960 and inaugurated by Pandit Jawaharlal Nehru, Prime Minister of India, on his birthday, who wanted to ‘convulse India with co-operation’ and create a Co-operative Commonwealth. Untiring efforts of Dr Mauritz Bonow, of Sweden, President of the ICA, and his intensive discussions with co-operative leaders in Asia and outside Asia, brought in technical and financial support not only from the Swedish Co-operative Movement but also from other development partners. The ICA Regional Office became a reality, and since then, it had never looked back. It continued to act as a vibrant transmittal channel between the developing and developed Movements and a strong platform for mutual co-operation and collaboration.

ICA ROAP’s Golden Jubilee

The ICA-AP celebrated its Golden Jubilee, with the release of the publication “50 Years of ICA in Asia-Pacific – Serving Co-operatives.” The book was presented to the Hon’ble President of India to mark the 50-years milestone of the ICA. In all its technical programmes which included human resource development, international co-operative trade and technical assistance, transfer of technology, safeguarding the Principles of Co-operation, interaction with governments, providing platforms for co-operatives through Ministers’ Conferences and Co-operative forums, involvement of women and youth in co-operatives, and interaction with international organisations, over 16,000 cooperators had taken part in over 600 events held in all countries of Asia-Pacific. Despite facing several housing problems in New Delhi and financial constraints, it has continued to progress. The Bahai House and the Bonow House were the pivotal points for strengthening the fabric of co-operative fraternity. Movements and governments from India, Japan, Korea, and China have contributed liberally to ICA’s development programmes.

It is very fascinating to write an account of all the events that had taken place in the life of this organisation. It is a difficult task too, especially when the office was moved three to four times to different locations in Delhi. That resulted into a tremendous loss of assets, material and information. It is laborious to go through the gamut of documents and photographs and other material. Despite all the odds the publication contains information of all vital aspects of this wonderful organisation. The credit of putting all the events goes to the ICA Regional Director, Dr Chan-Ho Choi and Dr Daman Prakash, ICA advisor, who had spent over 40 years working with the organisation.

In his statement made on the occasion of the release of the book, Dr Prakash said: “I happened to be the oldest among those who had served the ICA until 2002 since my joining the organisation in 1962. I feel very proud that I was given this honour and opportunity … I had heard the shrill echos of thrill and joy in the meeting room of the ICA Regional Office at Bahai House when IFFCO, Consumer Federation and Sugar Federation were born. I had the pleasure of serving co-operative stalwarts like Chaudhary Brahm Perkash, Mr Bertil Mathsson, Dr SK Saxena, Mr Alf Carlsson, Mr PE Weeraman, Mr GK Sharma, Mr JM Rana and others. I had seen Shrimati Indira Gandhi and Shri Rajiv Gandhi and many other top political leaders from the Region participating in ICA’s activities. For me, while working on this material, it was like enjoying the replay of a fantastic film.” He further said: “I venture to state that history is truth, it is divine and lays guidelines for the future. History helps formulate visions and sets indicators for future achievements. The ICA is now reckoned as the Pole Star of co-operatives in the Asia-Pacific Region. India has been the host to ICA and I pray this will continue to be so in the future as well.”

The book has been dedicated to all grassroots members of co-operatives, men and women, young and old, to decorate their lives with the spirit of Co-operation. Copies of the publication can be obtained from the ICA Regional Office, New Delhi.

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Mother Mantra for Cooperative Management

Mother Mantra for Cooperative Management

Posted on 27 January 2011 by Akshay Kumar

Dr.M.L.Khurana, Managing Director, National Cooperative Housing Federation of India

Cooperation as a principle and as a movement has a long history in India.  The concept of cooperation finds mention even in ancient Aryan scriptures.  The Rig Veda states:

“May you all have common principles,

may your hearts be in unisons,

may you all be of common mind,

So that you can work efficiently and well”.

Besides, the laws of Manu and Kautilya’s Arthashastra also refer to activities of cooperatives.  In the Bhagvat Purana individual ownership is permitted only to the extent of the requirement of food.

A strand of practical resemblance of cooperation in India can be deduced from the ancient and enduring tradition of the joint family wherein members earn and spend collectively.   India, despite being strong patriarchal society, a mother or grandmother played a pivotal role in the family.  The Cooperative principles and values are drawn from the virtues of mother who gives the family and its each aspect a definition. In Mahabharata, in reply to the Yaksha’s question, “what is weightier than the Earth?”  Yudhistera said “the Mother is weightier than the Earth.”

A mother can be termed as the most efficient management guru one can find. The cooperatives look upon her as an idol.

Value Based Education:

A child, when born is a lump of clay on the mother’s hand. She is the one which shapes the child with her virtue, education and ethos. Values provided by a mother to a child at a very tender age get so imbibed in the child’s system that he/she tends to remain with them through the lifetime.  Education has long been termed as the central element in holistic human development. Exposure to education brings one in contact with the enormous pool of knowledge that the external world awaits. The focus on history enables us to be better judge of the present.  In other words, light of education broadens the spectrum of opportunity one could get in his/her lifetime to be a better citizen and a stronger consumer.

The cooperative movement is primarily an educative and social movement, which steadily became a system of business.  Many people join the bandwagon of cooperatives in quest of goods and services, which are normally not available in the open market, at affordable price.  Ironically, they may not be aware of the ideology and principles of cooperation, their rights, duties and obligations etc. It is hence imperative for its patrons to spread the true purpose of cooperatives through intense education and training.  The importance of education was realized as early as in 1915 when the Maclagan Committee laid the strongest emphasis on the need of education both before and after the registration of cooperative.  The Committee rightly predicated that if the cooperation was to be ‘an entity of substance’ the knowledge of its principles had to be imbibed in every member.  The Cooperative Planning Committee observed that “If the Cooperative Movement is to develop on a sound basis and to expand in diverse directions it is necessary that those who comprise its vast membership are made conversant with the principles and practice of cooperation.  It is only then that they and their representatives will be able to conduct its affairs on well-ordered lines”.

Like the way a mother closely knits a family together through her constant attention, love and values. She strives to keep not only the children but all the other members of the family in best of their spirits so that they live and work collectively in a congenial integrated manner.  Similarly, Value and business ethics should be integral part of cooperative education and training so that members live and work with harmony, avoid disputes and promote integration in the cooperative.

Recently, Harvard Business School has invested USD 30 million for imparting knowledge in business ethics/values to management students.  All India Council for Technical Education, Government of India which is responsible for technical education in the country has recommended inclusion of business ethics in management studies syllabus.  Common people are now keen towards an individual development and spirituality at work apart from their job description.

Once Napoleon was asked how to make the nation great. Came his reply promptly, “Give me good mothers I will give you a good nation”.

Motivation

Have we ever thought as to who is the first person whom we remember whenever in distress? When suddenly we react against any stimulus, the first word that comes out of our throat is “MAA”(mother). A mother is omnipresent being the pillar of strength always; she need not be physically present by your side to motivate you. The very look or touch of hers can instill thousand horsepower of energy and motivation to pull through the toughest of times or situations. The very thought of her during the low phase of our lives makes things appear sunny and bright. Ibrahim Lincoln, the renowned former US President had once said that whatever he had achieved was because of his mother. Closer home, legends like Shivaji, Rana Pratap, Mahatma Gandhi always spoke very high about the contribution of their mothers in achieving enormous success, name and fame in the society.

Though the motivation activated by a mother is irredeemable, however this is the kind of motivation that is required today in cooperatives.  Human beings acting positively and responsibly are something natural; we have a unique nature, patience and compassion.  What we need is fine tuning of the qualities to cultivate and edify them.  A mother preaches that motivation comes from within. Our brain is directionless; we have to direct it the way we want. For instance, employees are generally very enthusiastic on Friday evening as compared to Monday or any other working day.  This is because we direct our mind in such a way that the anticipation of a weekend makes us feel bright and resuming work on Monday brings gloominess!

Lord Krishna motivated Arjuna not by teaching new strategies of war or new technologies.  He only changed his attitude, vision and insight towards life.  He explained him new ways of expression, a holistic self-assessment approach, and process to revamp inner endurance and how to look inward.  A mother teaches never to grieve over a challenging situation, but face the situation courageously. A failure should always be treated as one step towards success.

change of attitude and outlook is necessary for the cooperative Manager to outperform himself at every task he takes on.  The under lying key is the motivation. No one should feel lazy and should be willing to perform. They should always think that getting food for their families, respect in the civil society and happiness while working surely are the reasons to get up and get going.  We have to be the catalyst to drive the change and involved all the members at appropriate places.  This will maximize outcome and bring success to cooperatives.

Positive Action:

A proverb goes, “An Idle Mind is the Devil’s Workshop.” There cannot be a more degenerative punishment than solitary confinement. Remaining inactive even for a moment for any individual is against nature’s mechanism and hence one helplessly thrives for action. Being devoid of action for a long time rusts the body. A mom is the definition of ‘action’.  She loves to do the house chores and hardly picks and chooses her favourite task; she does all the tasks with equal élan. She amazingly discovers creativity in odd jobs which otherwise are considered quite mundane. This teaches us to accept whatever work is entrusted to us and perform our action without any desire, attachment, ego and fear.  A repetitive ordinary job transforms into different and extra-ordinary one if performed with conviction and positive action.  This is one mantra that we all must have observed in our mothers while growing up.

A great combination is only achieved when positive action is coupled with positive thinking. A right attitude for an undesirable job can create a magic, however a wrong attitude even for a favourable job will destroy it.  Trying a hand at the most challenging situations makes one a strong individual rather shying away from it.

Self assessment is always better than criticizing others.  A great teamwork is achieved when each team member encourages each other to bring forward their positive contribution and brainstorm to overcome shortcomings. A child grows up into a confident adult only when a mother pats his back when he does something commendable while explains his mistakes. A guardian, manager, team leader should very well understand the fact that everybody cannot do the same thing with same result. A factor called interest comes into play. A manager has to be a psychologist in understanding likes and dislikes of an employee and should try to maximize the potential of the employee by alternating tasks that he/she does the best and those which are least preferred by the employee. If we want to extract maximum from the workers, we should not put pressure on them on action of our choice.  Action should be performed with full concentration and without any fear.  Dedication is a very vital trait to perform a duty well – while at work, performing it completely with full concentration, best of knowledge and without any fear yields shining output.   The modern Manager has to attend variety of works and on different occasions under urgency and emergency.  Setting priorities right and managing time efficiently can set standards high while performing a task.  As it is said, “Too Many Cooks Spoil the Broth”, hence one should take up one task at a time. Focusing on time and concentrating hard on the task on hand can do wonders in keeping last minute hurriedness at bay.

While taking a decision, it is advisable not to be judgemental. With a clear mind and collated inner strength one should take an informed decision. A decision taken in haste or borrowed without thinking often backfires and puts one’s credibility at risk.

Equanimity of Mind:

The balancing act requires a lot of self-control and faith in one self. Surprisingly a mother metamorphoses herself into a barometer, who helps keeping the pressure of worldly things on mind controlled. She provides us with strength to maintain balance between the opposite pairs of various feelings like honour and shame, pain and pleasure, gain and loss, joy and sorrow, success and failure.  Today’s world has become so volatile that facing upheavals at every step is not surprising.  It is therefore always advisable to be calm and composed all the time – neither to be over joyous on hearing good news nor being disheartened and sulk knowing a bad news.  On the other hand we have to sustain this volatile environment performing our assigned duties without losing our calm of mind.  It is useless to search for solutions in outside world; the effort should be to find one from within.

Conflict Resolution:

Conflict of any kind, physical or mental leads to frustration, anger, resentment, tragic consequences and waste of resources.  These disputes eat away our precious time, energy, money and vitals of human body and disturb peace and prosperity of both the parties.    These disputes can be reduced if we change our mindset and attitude towards life and start empathizing with people.

Conflict is always not negative, there is a thin line separating a constructive conflict from a destructive one. An argument, debate or a conflict if only approached with a positive mindset, can yield greater knowledge and understanding.  We should address the basic root cause of disputes and see beyond profit-loss, friendship-enmity, fame-defame.  Welfare of the society should be given importance.   We should use our energy for the good; not for ill and evil.  Positive attitude and energy help effective conflict resolution.  Though conflict is part of our life and conflict resolution is not taught in School, with experience of life skill of arbitration should be acquired to avoid a healthy conflict turning ugly. A Chinese proverb states that “Those who are capable of  meeting  Life’s Conflict can truly lead the workers”.

Helping Attitude:

With motherhood a woman evolves as an epitome of love and affection. There forward she only nurtures and preaches goodness for all.   ‘Love’s acronym can be deduced as – ‘Lenient’, ‘Obedient’, ‘Vigilant’ and ‘Efficient’.  Imbibing these adjectives into our system, we can develop lovable and affectionate attitude towards others.

Limit Desire:

Mother teaches us a great virtue to limit our desire.  Fulfillment and satisfaction is limitless. The richest may never ceases to have a desire to be even richer. A reservoir of happiness doesn’t exist. We need to relish even smallest of achievement as we never know when these small packets of happiness relinquish. Focus should be on what is next in line to achieve and how to tame the mind to be content with whatever we have.

“All sufferings are caused by human desire”. Enjoy what you have and renounce what you don’t have.  The Great people and enlightened mystics like Guru Nanak, Kabir, taught the world to limit desire and be happy whatever your life has given you.

Leadership:

Mother is the greatest manager.  She tries to keep all the members of the family satisfied and happy.  She carries in her mind a total vision and complete panorama for bringing development and prosperity to the family.  She gives security, contentment and inculcates leadership qualities in the children.  She encourages people around her to identify their interest, discover talents and invest energies towards achieving laurels in that field.  Mohandas Karamchand Gandhi was an ordinary person who eventually became ‘Mahatma’ owing to his leadership qualities received from his mother Smt. Putlibai.

Today, the cooperatives are facing enormous problems to survive in the new environment being created across the globe.  We need new generation genuine cooperatives promoted, owned and controlled by members so that they run truly on cooperative principles.  For this, we need honest and sincere leadership, employees and members.  If we relate the simple yet deep penetrated principle adopted by a mother for her loved ones, the cooperatives can sail through unscathed during the time of crisis.

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