COOPERATIVE MOVEMENT AND NEPAL

One for all and all for one

Raj K Pandey, rajkpandey2000@yahoo.com, Mobile: 98510-86884

 Conceptual Framework

 “Cooperative society is the form of organization in which

person voluntarily associate together as human being on
the basis of equality for the promotion of economic
interest of themselves”. (H. Calvert)
 “Cooperative is self-help as well as mutual help. It is a
joint enterprise of those who are not stand on their own
legs and therefore, came together not with a view to get
profit but to overcome disability arising out of the want of
adequate financial resources”. (Dr. H.N. Kumzou)
 ” Cooperative is a movement of helpless against the
capitalism and exploitation as it is a joint effort for not only
one but for all”. (Raj Kumar Pandey)
Raj K Pandey, rajkpandey2000@yahoo.com, Mobile: 98510-86884
 HISTORY OF COOPERATIVE MOVEMENT

First Cooperative:

 Mr. Robert Owen established a “Consumers’

Cooperative Society” in 1844 which was the first
registered cooperative in the global history.

Objective of 1st Cooperative:

 To save the poor from economic exploitation of rich;
 To eliminate middlemen; and
 To serve members.

Raj K Pandey, rajkpandey2000@yahoo.com, Mobile: 98510-86884

 What is philosophy of cooperative?
 To serve common people
 Mutual cooperation
 Self-help
 Elimination of profit
 Organization of economically weak
 Elimination of middlemen
 Self production and/or collective purchase
 Protection from capitalism

Raj K Pandey, rajkpandey2000@yahoo.com, Mobile: 98510-86884

 ….Continued….

 Voluntary association
 Unrestricted membership
 Collectively owed fund
 Equality by members
 Service oriented (No profit)
 Democratic values
 Equal voting rights
 One vote for all shares
 Case basis (No credit)
 Capital can be converted into loan
 Open for re-investment

Raj K Pandey, rajkpandey2000@yahoo.com, Mobile: 98510-86884

 Major Attributes of the Cooperative

 None transferable shares

 The share investment is not capital but loan
 Interest is given to the loan (Investment)
 Investment can be withdrawn at any time as loan
 Loan can be re-invested as payment of credit
 No provision of profit sharing/dividend
 Some benefits from government e.g. tax exemption
 Voluntary and open membership to all
 Autonomy and independent operation
 Neutrality of politics, religion, cast, ethnicity, sex

Raj K Pandey, rajkpandey2000@yahoo.com, Mobile: 98510-86884

 Kinds of cooperatives
 Producers Cooperative
 Marketing/Sales Cooperative
 Consumers cooperative society
 Housing Cooperative Society
 Cooperative Farming Society
 Cooperative Credit Society

Advantages of the cooperative

 Consumers Control; Members’ Need Based; No Need

of Stock; Management Expenses Savings; No Publicity
Required; Government Facility

Raj K Pandey, rajkpandey2000@yahoo.com, Mobile: 98510-86884

 Disadvantages

 Small scale business due to low level of capital

 Limited (operation, membership, area, mgmt, money)
 Due to Guaranteed market management inefficiency
 Due to transparency in operation no privacy
 Low level of motivation in management, members, etc
 Suitable only for small and medium size enterprises

 Why Slow Development of Cooperatives?

 Government’s breast feed, bottle feed and spoon feed

 Favoritism, Nepotism and Petticoatisam
 Unlimited liability and vested interest of capitalists

Raj K Pandey, rajkpandey2000@yahoo.com, Mobile: 98510-86884

 History of Cooperatives in Nepal

Traditional Forms of Cooperatives:

 Guthi, Purma, Dhikurs, Manka: Khala, Dharma Bhakari

 Institutional Cooperative Development:

 Cooperative movement started in Nepal/India: 1954

 Rapti Valley Development Project by USAID 1954
 First Cooperative Society in Bharatpur 2013
 First National Plan Period (1956-60) developed 13
Saving and Credit Cooperative Societies for the
rehabilitation of the flood victims (Rapti=?)

Raj K Pandey, rajkpandey2000@yahoo.com, Mobile: 98510-86884

 Cooperative Movement in Nepal

 2010 Establishment of Cooperative Development

 2016 Nepal Cooperative Act 2016 enacted
 2017 Establishment of Cooperative Dev. Fund
 2018 Published Nepal Cooperative Policy/Procedures
 2018 Established Sajha Cooperative
 2018 Established Sajha Yatayat
 2019 Established Cooperative Training Center
 2020 Established Cooperative Bank (Saving Organization)
 2024 Saving Organization merged into ADB of Nepal.
 2025 Established Sajha Prakashan
 1992 Cooperative Act 1992

Raj K Pandey, rajkpandey2000@yahoo.com, Mobile: 98510-86884

 Cooperative Act 1992
 At least 15 persons can jointly establish Industrial one
 At least 25 person can jointly establish other types
 5 cooperatives can establish district one
 15 district cooperative can establish national one.

Cooperative Formation Process: (1992 Act)

 Apply to Office of Register, Cooperative Department

 Mention proposed name, address, objectives, area of
operation, liability, total capital, disposable shares
 Include 2 copies of Article of Association, attested
copies of promotes’ citizenship and tax clearance;
registration fee deposited voucher at Central Bank
Raj K Pandey, rajkpandey2000@yahoo.com, Mobile: 98510-86884