Unit 2 (Cooperative Development).pdf

# B.com - II - Semester-I - Co-operative Development ## Unit-2: Development of World Co-operative Movement - Consumer co-operative movement in England - Credit Co-operative movement in Germany - Dairy co-operative movement in Denmark - Agricultural co-operative movement in Israel ### Consumer Co-...

# B.com - II - Semester-I - Co-operative Development ## Unit-2: Development of World Co-operative Movement - Consumer co-operative movement in England - Credit Co-operative movement in Germany - Dairy co-operative movement in Denmark - Agricultural co-operative movement in Israel ### Consumer Co-operative Movement in England - England - Birthplace of co-operative movement - **Robert Owen** - Father of Co-operative movement. - 1844 - First consumer co-operative store started in England. - 1844 - 28 Weavers as members with a capital of 28 pounds. - Within a year the number has gone to 74. - 1888 - 1223 members with a capital of 3. utakh pounds. - Consumer co-operative movement in England can be explained with the help of following points: - Commencement of co-operative movement in England. - Robert Owen - Chief promoter of co-operative movement - Efforts for creating alternatives for capitalism. - Rochdale consumer stores - Legal provisions - Retail societies - Co-operative wholesale society - Agricultural Co-operation. ## Credit Co-operative Movement in Germany - Germany is the birthplace of credit co-operative movement in the world. - 19th century - Germany was facing the problem of drought and poverty. - People were being squeezed by German moneylenders. - In order to give relief to the German farmers, **Schulze (1808-1883) and Raiffeisen (1816-1888)** set up Co-operative credit societies in Germany. ### Schulze (1808-1883) - German politician and economist. - Founder of world's 1st credit union. - Founder of German Progress Party. - 1848 - Entered into parliament and joined left centre. - 1848 - Acting as the president of commission of inquiry into condition of labourers partisans. - 1847 - Formed 1st co-operative society of footwear manufacture and made available the raw material at a reasonable price. - Member of 2nd chamber in 1848-1849 but gave up public appointments in 1851. - 1856 - Published a book on principles of co-operation where he explained theories of co-operation. - 1859 - More than 200 centrally organized banks were formed and organized under his directions. - 1861 - Became member of progressistparty. - 1867 - 1st co-operative act for Germany was drafted. - 1879 - Act made applicable to all co-operative societies in Germany. - 1889 - Act made applicable to entire Germany. ### Raiffeisen (1816-1888) - Herman mayor and co-operative pioneer. - Born 30/03/1818. - Left school at the age of 12 and entered into military at the age of 17. - An eye injury compelled him to resign from military in 1842. - 1st Co-operative lending bank was founded in 1864. - 1st Rural central bank was formed in 1872. - In 1881, a printing house was been created which carries his name. - Credit co-operative movement in Germany can be explained with the help of following points: - Commencement of Credit Co-operative movement - Starting ofSchulz banks. - Development of Raiffeisen societies - Situation during world war-i - Division of Germany and co-operative movement ## Dairy Co-operative Movement in Denmark - Denmark - Agricultural country. - Co-operative movement started due to encouragement from Danish people. - A small country having geographical area about 43000 square kilometers. - Though agricultural land is limited, nearly 75% of land is cultivable. - Denmark uses to export agricultural products in return for import of industrial goods. - Out of total export, 50% share is from agricultural products, but only 6% of population is dependent on agriculture. - Stages in development of cooperatives in Denmark: - Economic backwardness of farmers. - Consumer societies - Dairy co-operatives - Features of Dairy co-operatives in Denmark: - Denmark was an agrobased country, but due to stiff competition by Americans, It has diverted to dairy business. - Out of total exports, total diary production 60% is exported to England and Germany. - Farmers and milk producers have established primary milk producers' societies at a local level and these societies perform the activities of milk processing in addition to milk collection. - Membership is open to milk producers within a juriy. - Members of the society do not require to pay any entry fee or contribute to share capital. - Members of the dairy co-operative society are required to enter into a contract with a society for a period of 15 to 20 years. - Profits earned by a society are equally distributed among the members in proportion to their business with the society. - Members are bound to sell the sellasie milk to the society only. - There is no intervention by government in the administration of dairy Co-operative societies. - Dairy Co-operatives provide special efforts for education and training to their members w.r.t business and methods. ## Agricultural Co-operative Movement in Israel - 1948 - Israel came into existence as an independent country. - Comparatively small county in geographical sphere. - Area of cultivable land was small, and there was a problem of water supply for agricultural purposes - Farmers have no other option than to go for co-operative farming because the ownership of land was vested with government - Features of agricultural Co-operatives in Israel: - Moplim of Co-operative farming in 1948. - Land can be obtained form government or Jewish Foundation fund. - Co-operative farming activities such as agricultural work, production, processing, marketing, residential facilities are commonly shared by members. - Out of the society's total income, members are paid annual allowances. - Israeli farming had adopted the policy of exporting latest technique to other developed counties. - Co-operative farming conduct their activities on principles democracy. ### Different types of agricultural Co-operatives in Israel: 1. **Kibbutzim:** - A village having a population of 200 to 2000. - 269 such villages. - Villagers are considered as the members of the society - Members are working on co-operative farming together. - All the needs such as food, clothing, shelter, education, and health are provided according to the needs of members. 2. **Moshavim:** - Palestine saw the development of communal villages called as Moshavim. - Marketing and major farm products purchase would be done collectively but personal lives were entirely private. - Moshavim are more in numbers as compared to Kibbutzim. - 1st moshav was established in 1921, it was a labor society. - It is like a village where in 60 to 120 families are participating. - There were 411 moshav in existence. 3. **Communal Moshav:** - 3rd important type of society in Israel. - This society provides for agricultural and non agricultural sector Jobs and opportunities. - All the members are paid annually. - In Israel, 102 such societies are operating. 4. **Regional organization:** - Also called as secondary service cooperatives. - Provide services as collection of agricultural produces, classification, grading, processing, packing, storage, transportation, finance. - In Israel, "Tunwa" established as a manufacturing marketing society in 1926.