International Cooperative Day | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

International Cooperative Day was celebrated on July 6th, 2024. This annual event, observed on the first Saturday of July, aims to highlight the importance of cooperatives in promoting sustainable development, social inclusion, and economic resilience. The theme for the 102nd International Day of Cooperation, “Building a Better Future for All: Working Cooperatives,” emphasizes the critical role of cooperative models in creating a sustainable and inclusive future, aligning with the objectives of the upcoming United Nations summit.

Historical Context

The cooperative movement has a rich history originating in the early 19th century during Europe’s industrial revolution. Workers, experiencing exploitation and economic hardships, began forming cooperatives to safeguard their rights and improve their livelihoods. The Rochdale Society of Equitable Pioneers, founded in 1844 in England, is one of the earliest and most influential examples, establishing foundational principles of cooperation, including:

• Voluntary and open membership
• Democratic member control
• Member economic participation
• Autonomy and independence
• Education, training, and information
• Cooperation among cooperatives
• Concern for the community

Significance and Impact

Cooperatives operate across various sectors, such as agriculture, finance, retail, housing, health, and education. They have shown remarkable resilience, particularly during economic crises, by prioritizing member needs over profit maximization. For instance, during the 2008 financial crisis, many financial cooperatives or credit unions remained stable while traditional banks struggled. This stability is attributed to their member-focused approach and conservative financial practices.

In 2024, the celebration of International Cooperative Day offers cooperatives worldwide a platform to share their experiences, showcase their achievements, and promote cooperative models for a sustainable future. The theme, “Building a Better Future for All: Working Cooperatives,” underscores the role of cooperatives in addressing global challenges like poverty, inequality, and climate change. Globally, there are 300 million cooperative societies with 1.2 billion members, meaning 12 percent of the world’s population is part of a cooperative society. These societies provide employment to 280 million people worldwide, representing 10 percent of the global workforce.

Global Reach

Cooperatives significantly contribute to sustainable development. In agriculture, they help small farmers access markets, negotiate better prices, and improve production techniques. In urban areas, housing cooperatives provide affordable living options, ensuring decent housing for low-income families.

Examples:

• Kenya: Agricultural cooperatives have enabled farmers to diversify their crops, access financial services, and enhance their market reach, thereby improving their livelihoods.
• India: Dairy cooperatives like Amul have revolutionized the dairy industry, empowering millions of small dairy farmers and making India one of the largest milk producers globally.

Indian Perspective

India has a long and successful history with cooperatives, especially in the agricultural and dairy sectors. The cooperative movement in India began in the early 20th century with the establishment of the first cooperative societies in Maharashtra and Gujarat. The Indian government has actively supported the growth of cooperatives through policies and legislation. The National Cooperative Development Corporation (NCDC) was established to plan and promote programs for the production, processing, marketing, storage, export, and import of agricultural produce and certain other commodities based on cooperative principles.

Success Stories:

• Amul Dairy Cooperative: A model of rural development and dairy farming in India, Amul has empowered millions of small dairy farmers and made India one of the largest milk producers globally.
• IFFCO (Indian Farmers Fertiliser Cooperative Limited): One of the largest cooperative societies in the world, providing fertilizers and agricultural inputs to millions of farmers in India.
• SEWA (Self-Employed Women’s Association): A trade union of poor, self-employed women workers, SEWA promotes cooperative models for women’s economic empowerment.

Cooperatives in India have also played a crucial role in financial inclusion by providing microfinance and credit services to rural populations.

Challenges

Despite their benefits, cooperatives face several challenges:

• Regulatory environments in many countries, including India, are not always conducive to their growth, often subjecting them to stringent regulations and limited access to capital.
• There is a general lack of awareness and understanding of the cooperative model, which hinders their development and expansion.
• Internal challenges, such as governance issues and member disengagement, can also impede their effectiveness.

Way Forward

To overcome these challenges, governments should create supportive legal and regulatory frameworks that recognize and promote cooperatives as viable business entities. Access to finance should be improved through innovative financial instruments tailored to cooperative needs. Additionally, digital transformation can modernize cooperative operations, enhance transparency, and improve member engagement.

Conclusion

International Cooperative Day 2024 serves as a reminder of the significant contributions that cooperatives make to economic, social, and environmental sustainability. By adhering to principles of democracy, equality, and solidarity, cooperatives offer a unique approach to addressing global challenges. As the world seeks inclusive and sustainable solutions, the cooperative movement stands out as a powerful model for achieving shared prosperity. Through continued support, innovation, and collaboration, cooperatives can further their impact, driving positive change and fostering resilient communities worldwide.