October 19, 2017NP | ENG

Cooperative and Rural Economy of Nepal



By Yugal Kulung 24-09-2016. sumer cooperative society was registered in 1844 in Great Britain by Robert Owen and it was the first cooperative in the global history of cooperatives. In Nepal the concept of cooperative existed since long time in the form of Guthi, Parma, Dharmabhakari, Manka, Khala (Newar), Sangchep (Kirat) etc. A cooperative society established in 2013 in Bharatpur was the first cooperative in Nepal.

The meaning of cooperative said to be as self help as well as mutual help. It is a joint enterprise of people who are not standing on their own legs and therefore came together not with a view to getting profit but overcoming disability arising out of want of adequate financial resources (Dr. H.N Kumzou)

The objective of cooperative society is to create conducive environment for the establishment of cooperative societies based on membership following cooperative principles and values to fulfill the needs of their members. To collect small and scattered amount of resources from the members at local level to create an economic force and to invest those resources for their own economic, social and cultural development of the marginalized people living in the country.

The cooperative movement in the beginning emphasized self help in order to accelerate economic development of the rural people. At present the status of cooperative in Nepal is seen as below.

They are 15 types of cooperatives operating in Nepal. Roughly they are 24000 primary cooperatives, 15 central cooperatives, 1 national cooperative bank with a total shareholder of 3500000 lacs, 200000 people are engaged of whom 80% working voluntarily (Bijesh Mishra, Economic Implication of Cooperative Movement in Nepal 27 January 2013).

Acts and policies concerning cooperatives promulgated by the government of Nepal at different times have emphasized improvement of rural economy. However most of the cooperatives are seen to have been established in the urban areas and few in the rural areas. Even these few cooperatives operating in the rural areas have not been able to include most of the people living below the poverty line. The reason for these might be that the poor lots could not be inspired /motivated for joining the movement and taking benefit from it.

The cooperative movement in Nepal has been 60 years old now however it has not yet reached the poor people in the way the movement has expected to serve rural communities. This is unfortunate that most of the Five Year plans of Nepal and including the constitution of Nepal have given priority to the implementation of cooperatives in order to a lift livelihood of poor people. It has been nevertheless unsuccessful. In the days to come government authorities concerned with cooperative must give priority to the effective implementation of policies concern with cooperatives and carry out strong monitoring.  




By Yugal Kulung   2016-09-25