Organisations run by cooperatives should be part of the global economy to protect it from downturns as the 'company' structure is susceptible to economic collapse as indicated in the recent recession.
“The increased tendency of governments to corporatise organisations should be checked as the company structure is not the only model for growth and they are susceptible to economic collapse,” Pauline Green, president of International Co-operative Alliance, said here.
While corporates’ major focus is on profits, cooperatives give it back to the community empowering the local people, she added.
On the subject, H D Deve Gowda, a former prime minister and chief of Janata Dal (Secular) party, said, “We had a long history of cooperative movement which should be strengthened."
He noted that while corporates had reported losses during the global recession, there was no impact of recession on the cooperatives globally.
Cooperative movement in India has a long history dating back to the Independ-ence movement. However, cooperatives in the country have been facing a tough challenge in recent times due to the politicisation of cooperatives, poor govern-ance and lack of profession-als in the management.
“We should replicate the model of IFFCO which has prospered due to a profes-sional management,” Gowda said.
The United Nations has declared 2012 as the Year of Cooperatives. According to analysts, this is expected to aid the growth of coopera-tives in the world.
Speaking during the event, S K Jakhar, IFFCO chairman, said, “India is the largest democracy in the world where cooperatives operate in every village. There is almost no sector left untouched by the coopera-tive movement in India.” He also said that cooperatives should be encouraged to create employment opportunities on a larger scale.
