Role of cooperatives in entrepreneurship development

Dr. Forqan Uddin Ahmed :
Co-operative movement in Bangladesh has passed its century on its way. In initial stage though it functioned with agriculture only, now it is working with economic spheres. Considering its competency and effective utility in post-independent Bangladesh Co-operative Society is constitutionally recognized as on the most important sectors of the economy. Truly Co-operative is established as a social issue. And for this reason the man who contributed much is Dr. Akhter Hamid Khan. With the hope of being benefited from the principals of cooperative, the Department of Cooperatives (DoC) was established as an attached department under the Ministry of Local Government, Rural Development & Cooperatives. It was established as the principal government organization responsible for facilitating economic growth and poverty reduction effort to the government. But, it is unfortunate the department has failed to play its responsible role in generating employment opportunities and alleviating poverty in the country.
The Department of Cooperatives (DoC) and cooperative societies under the regularity body are now involved in irregularities like other institutions of the government. Especially, most of the cooperative societies established under the government patron are now inactive although they have huge properties. There is an allegation that a section of people is misappropriating the properties, and the common co-operators are not being benefited from the societies. But if we had made the sector effectively functional and free from corruption it would have reduced dependency on foreign aid and contributed to a sustainable economy, creating huge employment opportunities and alleviating poverty in the country.
A study reveals that there are about two lacs cooperatives in the country and of them, 50 percent of cooperatives are dysfunctional due to the various limitations of regulatory and supervising bodies and internal problems of the cooperatives. The existing organizational design of most of the cooperatives does not conform to the basic principles of human resources management of a sound institution. The cooperatives are generally headed by a committee of elected members, who are not necessarily professionals. The cooperatives will have to evolve sound personnel policies encompassing proper manpower planning and assessment.
There are other problems which need to be addressed and solved with the initiative of the government. Co-operative society stands upon its members’ unity and support. But in practice we see a regular inequity and dispute among its low-class members. Sacrifice and sincerity among members are prerequisites for success of co-operative. But practically there is serious want of members having a mentality of help and sacrifice. Proper training can let our talents out. But in Bangladesh, for want of effective training facility, the skills of members cannot grow. As we know Corruption entered every single part of our society, the co-operatives are not free from it by means of cheating the illiterate members by powerful individuals. And nepotism in providing loans and other spheres inhibit its growth. Development of co-operatives requires proper government patronization-providing economies within its policy, planning, training etc. But in Bangladesh government pays less concentration about co-operatives. Equal participation of male and female members could enrich our co-operative sectors. But in Bangladesh women participation is neglected in comparison to men.
All farmers and labors including small entrepreneurs will be united under the umbrella of cooperative to face the aggregation of corporate globalization. All the poor of the world and cooperative organisations should be brought under five-tier cooperative structure in a bid to face corporate globalization and increase cooperation among the organizations of different countries. Cooperative organizations will be built up in all the sectors of economy. Through the idea of cooperative philosophy, a responsible and harmonious world will be built up against the consuming culture of corporate capitalism. It is essential to urge the respective government to perform all the development activities through the Public-Cooperative Partnership. Again, it is to call the respective government to enact cooperative-friendly laws including a provision that will help the cooperative societies increase cooperation with the cooperative societies of other countries. We appeal to the respective government to create a social fund for the development of cooperative sector.
In order to bring vibrancy in co-operative sectors the necessary remedial measures must be taken such as equal participation of male and female can ensure effectiveness of Co-operative society. The registration of inactive co-operative societies should be rejected. Government’s proper monitoring is essential but it should not be exaggerated. Government should provide duty free facility for import and export through co-operative should keep allotment in the national budget for the development of various co-operative societies and should provide loan at low interest to the members of Co-operative society. Government should occupy illegally occupied and misdeed Co-operative likes union multipurpose, central union multipurpose and Destiny. Bureaucratic and political influence in the co-operative enterprises must be terminated to ascertain the existence of the principle ‘Freedom and Autonomy’. Government should conduct Co-operative awareness programmer especially in rural area.
Employment generation and poverty alleviation need to be focused to build up a self-reliant Bangladesh through the cooperatives movement. So, building up an honest and skilled administration is necessary in every cooperative to achieve the desired result. There are problems and prospects and so a lot of challenges in future will have to be faced in this sector. In Cooperatives, there are ample scope of human resource development and entrepreneurship which will lead to self-employment and poverty alleviation. The government should take proper initiatives in a bid to increase public-cooperative partnership in different development activities and enacting laws to boost the country’s cooperative sector.

(The writer is former Deputy Director General, Bangladesh Ansar & VDP).