HISTORY OF CO-OPERATIVE
MOVEMENT
INTERNATIONAL CO-OPERATIVE YEAR - 2012
PRESENTED BY:
Advocate B. R. BORNAK
M. Com., M. A., LL. B., G.D.C.& A., D.L.L., D.J.M.C., D.C.A.
ADVOCATE – HIGH COURT - MUMBAI
ORIGIN OF WORD COOPERATION :
•The term cooperation is derived from the Latin word
cooperari,
where the word co means 'with'
and operari means 'to work'.
•Thus, cooperation means working together.
•So those who want to work together with some common
economic objective can form a society which is termed as
“cooperative society”.
•Cooperative society works on the principle of self-help as
well as mutual help.
ORIGIN OF COOPERATIVE MOVEMENT:
ROBERT OWEN (1771–1858):
•Born In 1771 At Newtown.
•In Early Days Worked As A Laborer In Factories And Shops.
• Invented Small Spinning Machines.
•Married To The Only Daughter Of The Owner Of The New
Lenark Mills Glasgow.
•After Death Of His Father-in-law, Became Owner Of The Mills.
•Reduced Working Hours And Increased Wages of Workers.
• Abolished Child Labour.
•Formed Colony In New Harmony England On Mutual Help Basis.
• Fathered The Cooperative Movement.
•Inspired The Rochadale Pioneers.
THE ROCHDALE PIONEERS:

At The End Of 1843, 28 Poor Weavers Joined Together To Form
The Rochdale Equitable Pioneers Society At Rochdale England.

They are Known As Rochdale Pioneers.

Set Out The Rochdale Principles In 1844, Which Have Highly
Influenced The Cooperative Movement.

Initially The Society Organized A Grocery Store.

A Venture Rapidly Prospered And Also Established Between
1850 And 1855 A Flour Mill, A Shoe Factory, And A Textile Plant.

Its Principles Proved As The Basic Code Of The Consumer
Cooperative Movement Since That Time.
COOPERATIVE MOVEMENT IN ENGLAND:

England is Birthplace Of Co-operative Movement.

Robert Owen and Rochdale Pioneers initiated this movement in England.
Before Industrial Revolution: Agricultural Co-ops:
 Primary - Three Categories:
1) Societies Supplying Farm Equipments;
2) Marketing Societies;
3) Service Societies.
 Central Level - Agricultural Central Co-operative Association (ACCA)-1956.
 National Level - National Federation: Co-operative Union Limited – 1869.



After Industrial Revolution:
Consumer Co-operatives - To Protect workers From Capitalistic Economy .
Problems Of Unemployment, Exploitation Of Workers.
Other Types Of Co-operatives In Uk:
Cooperative Bank, Credit Union & Coop Savings Bank
Co-operative Wholesale Society
Building Cooperative
Agricultural Cooperative
Housing Cooperative
Worker Cooperative
Mutual Insurance
Retailers' Cooperative
Social Cooperative
Utility Cooperative
Co-operative Party - The Co-operative Party Now Has A Permanent
Electoral Pact With The Labour Party
WORLD COOPERATIVE MOVEMENT
















FRANCE: Banking, Consumer
GERMANY: Banking, Agriculture
BELGIUM: Agriculture
AUSTRIA: Farming, Service, Marketing.
ITALY: Social, Health, Work integration.
DENMARK : Agriculture
FINLAND: Farming, Service, Marketing.
NORWAY, AND SWEDEN: Dairy, Farming, Animal Husbandry
SWITZERLAND: Consumer, Super markets
ISRAEL: Farming
MALAYSIA:BANKING, HOUSING, CONSUMER, TRANSPORTATION, AGRICULTURE,
SMALL-MEDIUM INDUSTRY, DEVELOPMENT & SERVICE.
Japan: Consumer, Agriculture.
Korea: Agriculture, Finance/Banking.
TAIWAN: Agriculture, Marketing.
Thailand: Irrigation, Farming, Animal Husbandry, Dairy, Rubber, Police
Patrol.
Singapore: Super market, Credit, Service
COOPERATIVE
MOVEMENT
IN
INDIA
CO-OPERATIVE MOVEMENT IN INDIA
HAS PASSED INTO TWO PHASES:
1)Co–operative movement in
pre-independence era.
2)Co-operative movement
post–independence era.
in
BACKGROUND

Cooperative Movement In India Is More Than 100 Years Old.

During British Rule Money Lenders was the only source for
farmers to raise funds.

They Used To Charge 37% To 76% Interest to farmers.
In protest Strong Agitation By Farmers.


In 1892 Sir Derrick Nicholson Was Directed To Study Problem Of
Farmers And Give Suggestions.

He Suggested To Establish Agriculture Credit Bank On the Line
Of One Established By Mr. Raiffeisen In Germany.
CO-OPERATIVE MOVEMENT IN PRE-INDEPENDENCE ERA:

In 1901:
Second Famine Commission Recommended:
To carry out Development activities and
setting up of new institution like co-operative societies.
Government had accepted many of the recommendations.

The Co-operative Credit Societies Act, 1904.

“ The Cooperative Credit Societies Act 1904” - Beginning of Cooperative
Movement In India.
Main Objective Was To Make Farmers Free From The Clutches Of Money Lenders.
This Was Beginning Of Agriculture Credit Cooperative In India.
Co-op. movement was officially set up and recognized.







ACT OF 1904 SUGGESTED TWO MODELS OF CREDIT SOCIETIES:




i)
One for rural areas and Other for urban areas.
Due to this Act a number of Co-operative Societies grew up in
rural areas.
But they could not function
Government reluctance.
effectively
because
of
ACT 1904: MAJOR DEFECTS:
There was no provision for setting up of Non credit Co-operative Societies in
rural areas.
ii) No special Central agency was created for financing and supervising the activities
of these primary societies.
iii) The division of the Credit Co-operative Societies into two types rural and urban
stood as a barrier since no specific arrangements could be done for either due to
the overlapping nature of societies.

Co-operative Societies Act, 1912:

To overcome defects of Act of 1904 a comprehensive Co-operative Societies
Act was passed in 1912.

It was named as “The Co-operative Societies Act, 1912” and in real sense a
good effort was made to spread co-operative movement in all sectors of the
Indian Economy.

“ The Cooperative Societies Act 1912” - New Act Was Passed For Setting Up
Non-agriculture Credit Cooperative Societies In India.

In spite of this effort the movement could not achieve much more.

In 1919 a Commission headed by Montegue Chelmsford was appointed to
study the reasons and suggest certain measures for Reforms.

They Recommended For Transferring The Subject “Cooperation” To State (At
That Time Province) Governments.
And Thus It Was Made State Subject.
Co-operative Movement during 1919 to 1929 was Defines as ‘ Unplanned
Developement’ by Ramdas Pantalu.


In 1928-29 the world experienced worldwide economic depression.
The prices of agricultural commodities fell down to a great extent.
unemployment along with other economic crisis grew up.
There was no way to repay the loan.
This brought many co-operative societies in to a standstill position.
The Reserve Bank of India was set up on the basis of the
recommendations of the Hilton Young Commission. The Reserve Bank of
India Act, 1934 was passed and the RBI commenced operations on April
1, 1935.
The Bank began its operations by taking over from the Government the
functions so far being performed by the Controller of Currency and from
the Imperial Bank of India, the management of Government accounts and
public debt.
 The bank took some initiatives to recognise co-operative movement.
It established a separate department for a co-operative credit.
It helped to keep the movement alive which was gradually decaying.
In 1937, Congress Government came to power.
They made Efforts to organise and extend the movement.
However Much progress could not be done.
 Outbreak of Second World War 1939 to 1945.
Ministry resigned.
British Government again took charge.
War gave a boost to co-operative societies.
Sudden increase in demand and prices of agricultural products and other food
grains.
Farmers got extra economic gains.
Non credit societies grew up.
Working capital of co-op. societies also increased.
Number of Different types of co-operatives increased rapidly.
The co-operative movement gathered momentum.
 The all India Co-operative planning Committee in 1945 also worked a lot in this
direction.
Co-operative movement in Post independence
Era:




For the first
development.
3
years
no
significant
Mainly due to partition and absence of
concrete program.
Importance was given to strengthen cooperative structure.
Various provisions were made through Five
Year Plans.
IN INDIA COOPERATIVE HAS SIGNIFICANT CONTRIBUTION
IN THE FOLLOWING AREAS:
1. AGRICULTURE CREDIT
2. AGRICULTURE DISTRIBUTION
3. AGRICULTURE MARKETING
4. AGRICULTURE SERVICE
5. AGRICULTURE BASED INDUSTRY
6. ALLIED AGRICULTURE SECTOR.
7. DAIRY, FISHERY, ANIMAL HUSBANDARY, POULTRY ETC.
8. SUGAR, TEXTILE ETC. PRODUCTION ACTIVITIES.
9. BANKING, CREDIT, CONSUMER SOCIETIES.
10. CO-OPERATIVE HOUSING.
11. MINING CO-OPERATIVES.
AND SO MANY …
CO-OPERATIVE MOVEMENT IN MAHARASHTRA

In 1919 a Commission headed by Montegue Chelmsford was appointed to study
the reasons behind failure of co-operative movement in India and to suggest
certain measures for Reforms.

They Recommended For Transferring The Subject “Cooperation” To State (At
That Time Province) Governments.
And Thus It Was Made State Subject.
In 1925 for the then Bombay State “The Bombay Co-operative Societies Act, 1925
was passed.
In 1956 “The States Reorganisation Act, 1956” was passed by Parliament by
passing Constitution (Seventh Amendment) Act, 1956.
THE BOMBAY RE-ORGANISATION ACT, 1960 was passed by the Bombay State
Assembly on 25th April, 1960.
1st May 1960: Division of the Bombay State and formation of Gujarat and
Maharashtra States.
The Maharashtra Government passed “The Maharashtra Co-operative Societies
Act, 1960.






AMUL – A GRAND SUCCESS IN
CO-OPERATIVE SECTOR


Amul (Anand Milk Union
Limited), formed in 1946, is a
Dairy co-operative movement
in India. Which today is jointly
owned by some 2.6 million
milk producers in Gujarat ,
India.
AMUL is based in Anand,
Gujarat and has been a sterling
example of a co-operative
organization's success in the
long term.
HISTORY
OF
CO-OPERATIVE
PRINCIPLES





















In 1895 International Co-operative Alliance (ICA) Was Established.
In 1937-ICA Declared Rochdale Principles As Co-operative Principles:
Rochdale Principles:
Main Principles:
1) Open And Voluntary Membership,
2) Democratic Management,
3)limited Interest On Capital,
4) Distribution Of Surplus In Proportion Of The Transactions,
5) Co-operative Education,
6)co-operation Among Co-operators.
Secondary Principles:
1) Cash Transactions,
2) Equal Rights And Responsibilities To Both Men And Women Irrespective Of Caste, Creed And
Religion,
3) Neutrality In Political And Religious Matters,
4) Service Motive – Human Service,
5) Limited Responsibility,
6) Publicity And Propaganda,
7) Thrift And Savings.
Co-operative Values:
1) Economic Independence,
2) Humanity, 3) Honesty, 4) Service Spirit.
CHANGES IN COOPERATIVE PRINCIPLES:
•In 1964 Ica Appointed Dr. D. G. Karve (India) Commission For
Reconstruction Of Co-operative Principles.
•In 1966 International Conference Was Held At Vienna.
•Co-operative Principles As Suggested By Dr. D. G. Karve Commission
Were Accepted As New Co-operative Principles.
Co-operative Principles As Suggested By Dr. D. G. Karve
Commission:
1) Open And Voluntary Membership,
2) Democratic Management,
3)limited Interest On Capital,
4) Minimum Profit And Its Equitable Distribution,
5) Co-operative Education,
6)co-operation Among Co-operators.
These Principles Remained In Practice Upto 1995.
RECONSTRUCTED COOPERATIVE PRINCIPLES:
In The Centenary Celebration Of International Co-operative Alliance (Ica) – 16th
To 23rd September 1995, The Following Co-operative Principles Were Accepted As
Reconstructed Cooperative Principles As Suggested By The Study Group Under Iyan
Makforson (Dean – Arts And Commerce College – British Columbia.
1) Open And Voluntary Membership,
2) Democratic Management,
3) Autonomy And Independence,
4) Education, Training And Publicity Of Information,
5) Economic Participation Of Members,
6) Co-operation Among Co-operators.
7) Care With Responsibility About The Society (Public).
FOR ANY FURTHER CLARIFICATION….
CONTACT:
ADVOCATE B. R. BORNAK
M. Com., M. A., LL. B., G.D.C.&A., D.L.L., D.J.M.C., D.C.A.
 ADVOCATE-HIGH
COURT
 MOBILE NO.: 9869450525

Mail ID: advbrbornak@gmail.com