cooperative environment

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Paramjit Sharma Cooperative Environment in India

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Page 1: Cooperative Environment

Paramjit Sharma

Cooperative Environment in India

Page 2: Cooperative Environment

Paramjit Sharma

Cooperative Environment

The Process Of Change

Paradigm Shift

Page 3: Cooperative Environment

Paramjit Sharma

Coop.Env-position after Independence

•Village Panchayat•Village Cooperative•Village School

3 Pillars ofRural Life

1st FYP-Coop were an indispensable instrument of plannedEconomic action

Page 4: Cooperative Environment

Paramjit Sharma

Coop-matter of state policy

1st

Step

•Set Targets for Numbers•Imposed Uniform Pattern•Structure & Activities•Enact Laws•Frame Rules,Impose Bye Laws•Create Supportive Adm Set Up

RegistrationSupervisionInspection

Blue Print Approach To Coop Development

Page 5: Cooperative Environment

Paramjit Sharma

Coop-matter of state policy

2ndStep

State’s Decision To Financially Support

Share ContributionProvide SubsidiesConcessions &Guarantees

Page 6: Cooperative Environment

Paramjit Sharma

Coop-matter of state policy

3rdStep

•State Accorded Priorities•Even Monopolies•Issued Preferential Licenses for Agro•Agency for procuring Ag. Produce•Distribution Of Ag. Inputs•Distribution Of Consumer Goods

Became Sarkari Sahkari

Page 7: Cooperative Environment

Paramjit Sharma

Coop Environment-as a result of

State SponsorsState ProtectionState Agent

State

State State•Protected Coop from Competition•Provide Easy Capital•Helped Gaining Profits

Coops BecameComplacent

Page 8: Cooperative Environment

Paramjit Sharma

Coop Env- result of Complacency

Coop Leaders & Managers Gradually Became Oblivious Of their obligation To Coop Members &

Their Role & Place in Governing & Managing Coops

Created Culture Of Indifference Towards Market

Blunted Skills & Capabilities of Coop Leaders & Members To Effectively Lead & Manage

Page 9: Cooperative Environment

Paramjit Sharma

Coops-emerging environment

Collapse of Centrally Planned Economy

Free Enterprise- liberalisation

Market Driven Economic System

Structural Adjustments

Page 10: Cooperative Environment

Paramjit Sharma

Structural Adjustments-1st phase

Focus on Deflationary Measures

Solving Balance Of Payments

Decreasing Budget Deficits

Devaluing the Currency

Resulted into RecessionUnemployment

Page 11: Cooperative Environment

Paramjit Sharma

Structural Adjustments-2nd phase

Focused To Promote ProductionStimulating Economy Through Deregulation PrivatizationIncreasing EfficiencyPrivate Sector May

•Expand•Hire Manpower•Lead To Ec. Growth•Increase Tax Revenue•Reduce Fiscal Crises

These Changes

Too Failed

Page 12: Cooperative Environment

Paramjit Sharma

Structural Adjustments-3rd phase

Reforms With Human Face

•No Quick Sol. To Economic Problems

•Social Concern Were Important

•National Consensus Necessary

•Social Dimensions

3rd Phase Included Elements Of Two Phases

Page 13: Cooperative Environment

Paramjit Sharma

Change In Env-consequences

•Wooing Foreign Capital•MNC’s Welcomed•Level Playing Conditions For All•Gradually Dismantling Prioritization•Disinvestments of PSU’s•Slowly Doing Away with-Subsidies…•Reducing Role in Agr,Services•Created –ve Impact On Coops

Page 14: Cooperative Environment

Paramjit Sharma

Coops-Future Implications

Declining Financial Support

Curtailing Registrar’s Role

Facing Competition

New Way of Capital Mobilization

New Opportunities due to DisinvestmentsIncrease in Corporate Power-community look for coopsVast Section Affected By Reforms may Form Coops

Declining Financial Support

Curtailing Registrar’s Role

Facing Competition

New Way of Capital Mobilization

New Opportunities due to Disinvestments

Increase in Corporate Power-community look for coopsVast Section Affected By Reforms may Form Coops

Page 15: Cooperative Environment

Paramjit Sharma

Coops-options available

•Increase Size & Vertical Integration•Market Friendly & Members Friendly•Value Based Mgt. Practices•Develop & Train HR-Members,Leaders, Staff•Forge Strategic Alliances•Encourage Members Participation –Services•Develop & Retain Symbiotic Relations With Govt•Improving Business Efficiency Contd…..

Page 16: Cooperative Environment

Paramjit Sharma

Coops-options available

•Improving Business Efficiency

Professional ManagementBoard CompositionEmpower Ex.ManagementTrainingReducing Cost To Meet CompetitionManaging Resources-Members, Leaders

Page 17: Cooperative Environment

Paramjit Sharma

Coop Sustainability-prof approach

Clear Coop PolicyCoop Identity –Part Of ActDe-recognize Pseudo Coops

PromotingSubsidiary

Organisations

Support At•Local•Regional•State•National•International

•Trained Board•Restructure Role Of Reg•Role Of Federal Org

Page 18: Cooperative Environment

Paramjit Sharma

Coop-Stressing Membership Advantages

Services Commitment Education

Successful Coops of Future will Be One’s That Do it BEST

Page 19: Cooperative Environment

Paramjit Sharma

Re-positioning- few questions

How To Preserve Coop Identity?Identifying The Effects on Different Coops Due To ReformsHow To Draw Support-Contingency Plan?How To Achieve Sustainable Autonomy?Re-Defining the Role Of Registrar?Suggesting Suitable Governance StructureStrengthening the Base-Primaries

Page 20: Cooperative Environment

Paramjit Sharma

Coops-choice for the future

1Continue

2 Change Identity

3 Changeenvironment

Capital crisisCredibilityManagerialideology

GraduallyDie

FormCoop

Company

Tackling Crises

LosingIdentity

Develop &

Compete

Page 21: Cooperative Environment

Paramjit Sharma

Coops-choice for the future

1Continue

Capital crisisCredibilityManagerialideology

GraduallyDie

CreditNPA,FUNDS

DCCB’SSec-11BR Act

SugarProduction

loansHousingMissed

Opportunities

MarketingWeak

Primaries

CONSUMERSLost Govt.Support

Page 22: Cooperative Environment

Paramjit Sharma

Coops-choice for the future

3 Changeenvironment

Tackling CrisesDevelop

&Compete

CAPITAL•Generate Internally•Explore New Ideas

Managerial•Professionalism•Develop H Resource

Ideology•Definition•Values•Principles•Strengthening •People•Cooperative •Collaborations

Credibility

•Image

•Technology

•Need based

•Governance

Page 23: Cooperative Environment

Paramjit Sharma