Co-Operative Movement Has Come to Be Developed in Various Fields

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Co-Operative Movement Has Come to Be Developed in Various Fields Section I CHAPTER-I; INTRODUCTION 1.1 Introduction and Concept o f Co-operation 1.2 Definitions o f Co-operation 1.3 Principles o f Co-operation 1.4 Types of Co-operatives 1.5 Background o f Urban Co-operative Banks 1.6 Concept o f Administration. C h a p te r - 1; In t r o d iic t io ii !•! Introduction and Concept of Co-operatloE;- C0"0perati0n is a special mode o f doing business. It does not aim at enriching its votaries at the expenses o f others; nor does it endeavor to benefit others by doing out charity to them. Its object is to promote the economic welfare o f its constitiients through self and mutual help. The co-operative method can apply to almost all fomis o f economic activities. It has tried successfully in such a wide range o f schemes as production, distribution, banking, supply, marketing, housing and so on. No country however, has attempted co-operation as an omnibus cure all , at once; each has shaped co-operative business to suit its particular needs. In England co-operation was introduced at first time in the world as the form of co-operative consumers’ society. In India, co-operation ■ was first introduced as a remedy for rural indebtedness and only much later did it gradually embrace other forms. ‘"Co-operative is not an end but a means to an end. It is tool like a hammer or atomic energy. The tool itself has no ethics. The co-operative like a hammer or atomic energy may be used for good or evil ends. When co-operative moveriient remains true to the idealistic principles, ■ moral people walk along by its side, hand in hand, but when co-operators become selfish, greedy, grasping and dominated by profit motive, it must be condemned.” ^ Prime Minister Pandit Nehru said, “The Co-operative principle is not some thing which is a way of credit or marketing. It is a way o f life. If you make it a way of life, you not only attempt to solve the country’s problems, but also help in the solution of international problems.” 1.2 Definitions of Co-operation: It has so far not been possible to define co-operation precisely because the movement was bom out of adversity. The circumstances, which gave rise to adversity, however, have been different in different countries. Different definitions have been given by different authorities in the context of the circumstances in which the movement took its birth in their respective countries. Often-qnoted defmitions:- Mr. Calveit defines it as “A form of organization wherein persons voluntarily associate together as human beings on the basis of equality, for the promotion of economic interests of themselves. Mr. M T Herrick defined co-operafion as, “Co-operation is the act of persons voluntarily united for utilizing reciprocally their own forces, resources or both under their mutual management to their common profit or loss.”'* According to the co-operative planning committee (1946), “Co-operation is a form of organisation in which persons voluntarily associate together on a basis of equality for the promotion of their economic interests.” Those who come together have a common economic aim, which they cannot achieve by individual isolated action because of the weakness of the economic position of large. This element of individual weakness is overcome by the pooling of their resources, by making self help effective through mutual aid and by strengthening the bonds of moral solidarity between them.”^ According to James Peter Warbasse, “Co-operation is a way of life whereby people unite democratically in the spirit of mutual aid to get the largest possible access to the things and services they need.”*’ Mr. Vaikunthlal Mehta, a veteran co-operator of India, describes Co- ' operation as follows, “Co-operation is only one aspect o f a vast movement which promotes voluntarily association having common needs that combine together for the achievement of common economic ends.”^ To be brief, the term o f co-operation in its special sense, which has been considered in the present study, may be described as a special form of doing business, not in the traditional profit economy sense that in such a business, persons with common needs associate together to pursue their common interests and achieve their common objects through self help and mutual help/Association o f persons is the very basis o f co-operation provided the association is worked for the mutual benefit o f those forming the associations, which are controlled by the associates themselves. It differs completely from other forms o f business organisations, in the sense that the cooperating members so not seek to satisfy their common needs at the price of injury to others or by exploitation. Co-operation thus suits the poor more than the rich. The rich, however, are not precluded fi'om coming within its fold. However, persons desirous to co-operate must have a common objective and urge, to fulfill it they must be prepared to work selflessly on the principle o f “Each for • all and all for each.” ^ 1“3 Priiiciples of Co-operatlom: Co-operative principles are those practices, which are essential to the achievement o f the co-operative enterprise or movement. “The principles o f co-operation are normally traced to Rochdale pioneers who established their EQuitable Society in 1844, though their origin goes back to Robert Owen and Dr. William Kind of Brighton and to some o f the letopian Socialists. The Co-operative principles, though revolutionary in character, were never stridently announced from the pulpit or the platform and though of deep philosophical in port, they were enunciated in any weighty tone of a learned philosopher. They were simply the rules of business recorded in the proceedings of a small consumer society of a handful of weavers who came together for providing common mutual services. However, herein lays the secret of the profound combination of vision and realism in the principle of co-operation when seen together as a totality. More than a century has elapsed since the principles were first enunciated; through the years they have been examined and commented upon, refurbished and rebumished, but their original statement remains almost unaltered in all the essential aspects. Co-operative principles were reformulated by a commission appointed by the International Co-operative Alliance in 1964 under the Chairmanship of D. G. Karve of India with Mr. A. Bonner of England, Mr. A. Harvard of USA, Prof. D. R. Henzler of Germany and Prof. I. Istanov of USSR as members. It submitted its report in 1966, the commission laid down the essential principles of co-operation. The principles of co-operation include :- (I) Open and Voluntary Association: It is purely a “Voluntary Association”. There is no compulsion for any body to join and quit it. As such, the membership of a co-operative organisation is always open to all irrespective of differences of caste, creed, color, community, reach, poor and race. There is no discrimination in co-operation. They may join it at their sweet-will for achieving the common economic goal. On the other hand, they may also quit its membership of their won wish. Prof H. Calvert rightly said that. unless such a freedom is given tOi the people, a truly co-operative spirit cannot be developed amongst the members.” (IBPemocratic Maaagemeiit: ■ The base of. co-operation is democracy and democratic management. Every user of a service rendered by a co-operative can be its member. In a co-operative organisation, people do not come together based on capital So that, capital could not be allowed to retain the control of its affairs as happens in joint stock companies. In a joint stock companies principle of 'one share one vote’ is followed and so that every member has right to vote in proportion to the number of shares he holds. Due to this only a few persons control the management of the concern and those who hold a small number of shares have no voice in its affairs. But in a co-operative society, ‘one member one vote’ principle is followed and accordingly every member gets right to give only one vote, irrespective of the number of shares held by him and so he has an equal voice in the management of their common affairs. Thus in the true sense, a co­ operative society is governed by the human beings. It should be noted that it is an association of persons and not of capital. (in) Self-help aad Mntiial Help: This principle implies self-fmancing and self-management by the co­ operatives. The members of co-operative organisation associate together with a view to promote the economic interest of their own. It is purely their own organisation and they, work on the principles of “Self-help through mutual help.” The motto of these societies is “Each for all and all for each”, working on this motto, members help each other. It is an organisation of persons who are financially weak. Their resources are so merge that they are unable derive any benefit and improve their economic conditions. Hence, in order to convert their weakness into strength, they pool their resources and then work together for mutual benefit. It is the genius of the Co-operative. movement to have recognized values of self-help and mutual help than united in a single effort. (IV) A Spirit of* Serviee or No-profit Motive; “Co-operation is not merely business, but a spirit of service which evokes loyalty, fellowship and a corporate feeling.” Therefore, a spirit of , service is the real base of co-operative organisation.
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