Co-operative Background

Co-operative movement is more than 100 years old and has been successful in India and many countries globally. Co-operative is a form of an organization in which members (ex. farmer, handloom weaver) with very limited resources can join together and collectively strive to achieve their economic goals. The key underlying principles which drive the co-operative model are mutual help and collective bargaining.

There are many successful co-operative organizations that we come across every day. As economic enterprises and self help organizations, they play a significant role in uplifting the socio-economic conditions of the members and the local community. They act as an extremely important means for the integration of communities and their sustainable economic development.

The recent changes in the world economic conditions such as unstable financial systems, economic disparity and unstable food supply has forced the world to look at alternate economic models of development and co-operatives are at the forefront of these models. Economists and governments worldwide are looking into the reasons for the success of the co-operative model and ways for further developing and leveraging the success of this model. At the same time, the advent of globalization and increased competition due to liberalization raises many challenges for the co-operatives.

The dynamic global business environment demands a professional management structure, stronger marketing skills and integrated end-to-end processes. Today, co-operatives are also required to adhere to local or country and cooperative specific standards and governmental environment regulations. The fact that most of the co-operatives still do not have basic information technology (IT) capabilities is a major obstacle to meet the above challenges.

The United Nations General Assembly has declared 2012 as the International Year of Cooperatives, highlighting the contribution of cooperatives to socio-economic development. Read more...