'Co-ops should be part of global financial system'

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. Presently, Bangalore is hosting the three-day International Cooperative Alliance in which over 20 nations are showcasing their products.

On the subject, H D Deve Gowda, former PM, said, “We had a long history of cooperative movement which should be strengthened.”

“While corporates had reported losses during the global recession, there was no impact of recession on the cooperatives globally,” he added.

Cooperative movement in India has a long history dating back to Independence. However, cooperatives in the country have been facing a tough challenge in recent times due to the politicisation of cooperatives, poor governance and lack of professionals in the management.

“We should replicate the model of IFFCO which has prospered due to a professional management,” Gowda said.

In the meantime, the United Nations have declared 2012 as the Year of Cooperatives. As per analysts, this is expected to further the growth of cooperatives 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 cooperative movement in India.”

He also said that cooperatives should be encouraged to create employment opportunities on a larger scale.