2. Content
Meaning and concept
Historical background
Types of Co-operative in Nepal
Current scenario of Co-operative in
Nepal
Conclusions and suggestions
2 Sunil 8/5/2012
3. Meaning and concept
“Cooperative society is the form of organization in
which persons voluntarily associated 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
non with a view to get profit but to overcome
disability arising out of the want of adequate
financial resources”.(Dr. H.N Kumzou)
Co-operative is a movement of helpless against
the Capitalism exploitation as it is a joint effort for
Sunil
3 not only one but for all 8/5/2012
4. History of Cooperative
Movement
First Cooperative
Mr .Robert Owen established a “consumer
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 middleman
• To serve members
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5. What is philosophy of
cooperative?
To serve common people
Mutual Cooperation
Self help
Protection from Capitalism
Voluntary association
Equality by Members
Equal Voting rights
Democratic values
Capital can be converted into loan
One vote for all shares
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6. History of Cooperatives in Nepal
Traditional forms of Cooperatives:
Guthi, Manka, Khala,
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)
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7. Types of Co-operative In Nepal
Objective Number Capital Savings Investm Total Total
of ent income Expendit
Cooperat ure
ive
Saving and 8888 7,278,58 42,930,6 48,885,5 3,862,72 1,806,72
credit 1 49 74 4 8
Multipurpose 3465 922,740 12,805,7 48,885,5 640,386 495,490
38 74
Dairy 1687 132,746 111,149 9,163,27 685,460 589,894
7
Agro 2964 542,257 1,252,49 121,365 925,798 472,963
6
Electricity 222 18,737 10,324 2,379,11 11,677 14,005
3
Others 758 242,961 777,182 45,264 196,399 298,413
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Vegetable of 182 2,985 9163 773,150 14,026 10,316
9. Current scenario of Co-operative in
Nepal
In Nepal 13 types of cooperative operate
According to the department Cooperative
annually Cooperative operate and mobilize over
annually over 100 billion ,Which accounts for Rs
61.54 billion investment ,58 Saving and 9.36
billion share capital
This sector also provide direct employment to
more than 50 thousands while in indirectly to
more 100,000 job opportunities in different fields
While it may normal to have 4000,to 5000
Cooperatives in the capital
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10. Although there are 31 commercial and 88
development banks ,79 finance and 21
Microfinance companies which cater to about 30
percent of the population ,unfortunately they are
being over banked and 70 percent still do not
have access to finance
Many cooperative suffer from unsound
investment in risky areas ,where there are no
returns
Most cooperative lack professional management
and plagued by the lack adequate knowledge
,principles and practices of cooperatives
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11. “people are more attracted to cooperative
because the returns are higher and they provide
high level services by going to the clients house
The interest rates are high so if u take loan and
investment in other project then you will have
difficult to gets returns
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12. Example if you have take 2,00,000 Loan from the cooperative
then u pay 22 % interest and u also pay the different kinds of fee
Loan intere Loan Aawh Memb Organization Valuat Othe Total Loan
development
amou st fee an ershi fee
ion r fee fee shar
nt fee p fee fee e
44,00 200 2000 2000 2000 2000 2000 5420
0 0
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14. Conclusions and suggestions
Cooperative movement has been very Successful
in Many Countries like Bangladesh and Kenya
The Government has announce to celebrate
cooperative year 2012
Many cooperative Suffer from unsound
investment in risky areas where there are no
returns
While presently Many retired bankers are also
involved in cooperative
Most Cooperative lack professional management
and are plagued by the lack of adequate
knowledge ,principles and practices of
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cooperative
Sunil 8/5/2012
15. The Cooperative Movement has dramatically
evolved after enactment of the cooperative Act
1954
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16. Suggestions
The government and central bank should take the
initiative and prepare guideline to follow or even
implement cooperatives under the NRB.
The government should formulated the new
cooperative act by replacement the cooperative act
2047
The government should formed the separate Ministry
of cooperative to smooth functioning
In Nepal the Buffalo and vegetables or fruits
Cooperative needs rather than the Saving & Credit
Cooperative
Government should recognized good cooperative and
reward where as the bad ones must be given a time
or framework to improve
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17. Encourage to form the Cooperative rural areas
rather than the valley or city based
Provide the training and guideline from the
smooth functioning of the cooperative
The department of cooperative change their
attitude
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