...Question 1(a) “Cooperatives and other forms of organizations are established to serve the public”. In view of this statement, explain their notable similarities and differences. The International Labour Organisation defines cooperatives thus; A “Cooperative is an association of person usually of limited means, who have voluntarily joined together to achieve a common economic, end through the formation of a democratically controlled business organisation, make equitable contribution to the capital required and accepting a fair share of risks and benefits of the undertaking". Hubert Calvest (1972) defines the Cooperative as a form of organisation wherein persons voluntarily associates together as human beings on the basis of equality for the promotion of the economic and social interests of themselves." Cooperatives have unique characteristics which differentiate them from other forms of business organizations particularly partnerships and limited liability companies. The following are the characteristics of cooperatives. Voluntary association: Everybody having a common interest is free to join cooperative society. There is no restriction on the basis of caste, creed, religion, colour, etc. Anybody can also leave it at any time after giving due notice to the society. That is specialty of any cooperative society. There should be a minimum of 10 members to for cooperative society but there is no maximum limit for the membership. This characteristic is similar to other forms...
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...HISTORY OF COOPERATIVES IN THE PHILIPPINES Source: Cooperative Development Authority A Filipinos traveling in Europe during the later part of the 19th century must have been impressed with the success of a new economic movement in effecting a gradual metamorphosis of the economic and social life of the people ion those countries. At the turn of the century, Filipinos, in increasing number, traveled and studied abroad and brought home with them new ideas. It was this group of Filipinos who were in close in contact with the new economic movement in Europe. Two names worthy of note were Dr. Jose P. Rizal and Teodoro Sandiko. Rizal, after his side trip to Sandakan, Borneo in 1892, requested Governor Despudol that he and some relatives and friends be permitted to move to that place and found a colony under the cooperative plan of Robert Owen. Instead, he was arrested for treason and banished to Dapitan, Zamboanga del Norte. In Dapitan, Rizal had his ideas in cooperation partially fulfilled. He put up a school for the poor community on a purely cooperative basis. He also established a cooperative store with the help of his pupils. One noteworthy group organized by Rizal was the La Sociedad de los Abacaleros (Society of Abaca Producers). This functioned for only one year. Rizal returned the members share capital without any loss. Teodoro Sandiko, in his travels in Europe, must have had a close contact with the cooperative movement in Germany where he came across with the Raiffeisen...
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...ABSTRACT Introduction Credit cooperatives play a very vital role in the socio-economic life of Filipinos. They act as an important driver in the development of the country’s economic and social conditions. Cooperatives are more urgently needed in society among social groups with less income and resources than by those with sufficient resources. Thus, cooperatives have proved to be effective instruments for the advancement of the working classes and the less fortunate segments of the society. Financial cooperatives such as credit cooperatives help to alleviate poverty in the Philippines. By making reserve funds, these cooperatives help to lessen members’ burden in search for immediate cash assistance such as medical emergencies or unforeseen expenditures. They promote savings, thriftiness and future investments and expense like education plan. Financial cooperatives also provide the necessary funding to their members such as micro-financing loans to small and medium enterprises that later on will generate additional jobs and profits, and grant loans that will help farmers increase agricultural production. A credit cooperative also promotes significant involvement to the growth of its members and community whereas Filipinos had appreciated that the real essence of fulfillment can only be achieved by promoting common good of others, particularly to the less fortunate members of the cooperative. These people have also realized the meaning of collective effort and cooperation...
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...Credit cooperatives play a very vital role in the socio-economic life of Filipinos. They act as an important driver in the development of the country’s economic and social conditions. Cooperatives are more urgently needed in society among social groups with less income and resources than by those with sufficient resources. Thus, cooperatives have proved to be effective instruments for the advancement of the working classes and the less fortunate segments of the society. Financial cooperatives such as credit cooperatives help to alleviate poverty in the Philippines. By making reserve funds, these cooperatives help to lessen members’ burden in search for immediate cash assistance such as medical emergencies or unforeseen expenditures. They promote savings, thriftiness and future investments and expense like education plan. Financial cooperatives also provide the necessary funding to their members such as micro-financing loans to small and medium enterprises that later on will generate additional jobs and profits, and grant loans that will help farmers increase agricultural production. A credit cooperative also promotes significant involvement to the growth of its members and community whereas Filipinos had appreciated that the real essence of fulfillment can only be achieved by promoting common good of others, particularly to the less fortunate members of the cooperative. These people have also realized the meaning of collective effort and cooperation to uphold general level...
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...Credit cooperatives play a very vital role in the socio-economic life of Filipinos. They act as an important driver in the development of the country’s economic and social conditions. Cooperatives are more urgently needed in society among social groups with less income and resources than by those with sufficient resources. Thus, cooperatives have proved to be effective instruments for the advancement of the working classes and the less fortunate segments of the society. Financial cooperatives such as credit cooperatives help to alleviate poverty in the Philippines. By making reserve funds, these cooperatives help to lessen members’ burden in search for immediate cash assistance such as medical emergencies or unforeseen expenditures. They promote savings, thriftiness and future investments and expense like education plan. Financial cooperatives also provide the necessary funding to their members such as micro-financing loans to small and medium enterprises that later on will generate additional jobs and profits, and grant loans that will help farmers increase agricultural production. A credit cooperative also promotes significant involvement to the growth of its members and community whereas Filipinos had appreciated that the real essence of fulfillment can only be achieved by promoting common good of others, particularly to the less fortunate members of the cooperative. These people have also realized the meaning of collective effort and cooperation to uphold general level...
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...CHAPTER ONE INTRODUCTION 1.1 INTRODUCTION Economist always say that human beings behavior are rational that is, they are classified and directed at some specific point, devoid of unnecessary emotions and sentiments. In the same line of thought when a group of persons decided to join or form a co-operative society, they do so with some rationale behind their intention and or action (Sanusi, 2003). Economics reasons constitute the major motive why people join or form co-operative. It is an attempt to improve one’s income by carrying out more economic activities or improving on the performance of the present enterprise of the individual. By so doing, the member’s economic position is increased. A tailor who joins a tailors’ co-operatives society has among other reasons the economic motive(Bog-Igwe, 2007). Co-operative action takes place when individuals pool their resources together which are often meager in an effort to obtain what is needed by all but can not be obtained by the use of an individual’s resources, talents, time, information or effort. This habit has existed since the origin of humanity, that is, since the time that human beings started living together on the basis of family unit and or in a community. Co-operation is customary and instinctive solidarity. The first co-operative act of man was when the first human family started gathering food even before agriculture was invented (Mbat, 2000). The more advanced forms of traditional co-operation is demonstrated...
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...of Philippine Cooperative Based on available sources, notably the Cooperative Development Authority, tracing the history of Philippine cooperative movement would not be complete without mentioning the name of Dr. Jose P. Rizal who, in his travels to Europe in the latter part of the 19th century, was impressed with the success of a new economic movement which transformed the economic and social life of the Europeans. After his side trip to Sandakan, Borneo in 1892, Rizal requested Governor General Despujol to allow him to move with some relatives and friends to that place and establish therein a colony under the cooperative production and marketing plan of Robert Owen, who is acknowledged as the father of world cooperation. Instead, he was arrested for treason and banished to Dapitan, Zamboanga del Norte. In Dapitan, Rizal had his ideas in cooperation partially fulfilled. He put up a school for the poor community on a purely cooperative basis. He also established a cooperative store with the help of his pupils. One noteworthy group organized by Rizal was the La Sociedad de los Abacaleros (Society of Abaca Producers). This functioned for only one year. Rizal returned the members share capital without any loss. Another name worthy to mention is Teodoro Sandiko, who in his travels in Europe, must have had a close contact with the cooperative movement in Germany where he came across with the Raiffeisen movement. He was very much impressed by this type of cooperative and he looked...
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...It is a particular form of cooperative financial institution (herein after CFI). Essentially, this not-for-profit CFI consist of a group of people who share some bond of association through their profession, social interest, political inclination, and religious affiliation, which pooled their capital together, usually on a regular basis. These savings, or commonly known as ‘shares’ are then used to provide financing to its members. Since their main purpose is to help other members (and themselves) in obtaining lower-than-market profit rate financing, they have to contend with lower-than-market profit rate return on their deposit. They primarily rely on voluntary effort to organise and administer the pooled fund. Although some of these credit unions have since hired professional managers, and received on lending, the core, self-help principles still soldier on. Some of the prime examples of Shari'ah-compliant mortgage finance provider in those region are American Finance House LARIBA, Guidance Residential, LLC (both in the U.S) and Ansar and Islamic Cooperative Housing Corporation Ltd....
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...Executive Summary 1. Background The urban cooperative banking sector has witnessed phenomenal growth during the last one and a half decades. Certain infirmities have, however, manifested in the sector resulting in erosion of public confidence and causing concern to the regulators as also to the well functioning units in the sector. One of the factors significantly affecting the financial health of the Urban Cooperative Banks (UCBs) is their inability to attract equity / quasi equity investments. At present, UCBs have limited avenues for raising such funds and even their share capital can be withdrawn. Against this backdrop, an announcement was made in the Annual Policy Statement for the year 2006-07 to constitute a Working Group to examine the issue of share capital of UCBs and identify alternate instruments / avenues for augmenting the capital funds of UCBs. Accordingly, a Working Group was constituted under the Chairmanship of Shri N.S. Vishwanathan, Chief General Manager-in-Charge, Urban Banks Department, Reserve Bank of India. 2. Methodology The Group deliberated on the various issues relating to its terms of reference on the basis of presentations made by its members. It also met Chairmen/ CEOs of a few medium/ large UCBs. The areas deliberated included international practices and structures for issue of bonds by cooperatives, adaptability of the provisions of Indian Companies Act, 1956 for issue of preference shares, State Government perspective on the issues...
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...REGIONAL RURAL BANKS The Narasimham committee on rural credit recommended the establishment of Regional Rural Banks (RRBs) on the ground that they would be much better suited than the commercial banks or co-operative banks in meeting the needs of rural areas. Accepting the recommendations of the Narasimham committee, the government passed the Regional Rural Banks Act, 1976. A significant development in the field of banking during 1976 was the establishment of 19 Regional Rural Banks (RRBs) under the Regional Rural Banks Act‚1976. The RRBs were established “with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto” . * Objective * Functions * Regional Rural Banks in India * Regional Rural Banks in Tamil Nadu RRBs established with the explicit objective of Top * Bridging the credit gap in rural areas * Check the outflow of rural deposits to urban areas * Reduce regional imbalances and increase rural employment generation The main objectives of setting up the RRB is to provide credit and other facilities‚ especially to the small and marginal farmers‚ agricultural labourers artisans and small entrepreneurs in rural areas. Each RRB will...
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...Working Paper 1 Micro-Credit Ratings International Limited 602 Pacific Square, 32nd Milestone NH8, Gurgaon 122 001 INDIA Telephone: +91 124 230 9497, 230 9707, 405 0739, 426 8707; Fax: +91 124 230 9520 e-mail: contact@m-cril.com ; website: www.m-cril.com Study Sponsored by Swiss Agency for Development and Cooperation Micro-Credit Ratings International Limited Table of Contents Section Background Executive Summary 1 2 3 4 Introduction The Importance of Rural Banks Recent Performance of the Rural Banking System Reforms and the Rural Banks 4.1 A huge effort to reform the cooperative system 4.2 Sensible proposals for reorienting the Regional Rural Banks but… 5 Will Reforms Enable Inclusion? 5.1 Cooperative reform – is it good money after bad? 5.2 RRB reform – has the inclusion objective been sidelined? 6 Conclusion Page v vii 1 3 7 8 8 12 15 15 17 18 M-CRIL Review of Rural Banking in India Background This study follows from the discussion of issues in the performance of Regional Rural Banks (RRBs) written by Sanjay Sinha, Managing Director, M-CRIL and published in The Economic Times (newspaper) on 17 March 2007. In relation to financial inclusion, many of the issues raised there affect the performance of cooperative banks as well as the RRBs. These issues include • The effect of government ownership of RRBs on their ability to operate efficiently and effectively to fulfil the financial inclusion mandate; the domination of (district) cooperative bank managements by government...
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...SAMPLE CHAPTERS 1-5 1 ASSESSMENT ON THE FINANCIAL SERVICES OF CAVITE METRO CREDIT COOPERATIVE IN IMUS CITY, CAVITE Rosanne Esmeralda Bordador A Research Paper submitted to the faculty members of the Department of Management, Cavite State University-Imus City, Cavite in partial fulfillment of the requirements for the degree of Bachelor of Science in Business Management. Prepared under the supervision of Dr. Jennypher N. Fenomeno. INTRODUCTION Informal types of cooperatives are as old as human history. Whenever people come together voluntarily to help one another by providing a group service, they actually had a simple form of cooperative. But the cooperative movement as we know it today had its beginnings in Europe during the modern times as a result of the Industrial Revolution. In several European countries, the first cooperatives were organized by workingman who were seeking to change the wretched conditions brought about by the new age of machine and factory production that began in England two hundred years ago, and soon after in other countries. In England, the weavers and the other workers in the textile industry were the hardest hit, and they were among the first to organize cooperatives for the purpose of improving their desperate economic and social conditions (San Gabriel, 2010). The International Co-operative Alliance mentioned that Cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural...
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...| REGIONAL DISPARITY IN AGRICULTURAL CREDIT | | | Arvind Kumar Jha | PGDMA 1206 | | ABSTRACT The Eleventh Five year plan makes specific focus on the inclusive growth of the economy. It implies that the growth process that experienced over the years were not sufficiently inclusive of all. Although there had been substantial reduction of poverty over past few decades during the five year plans, the core content of the rural poverty remained intractable. In fact, upto Ten Five year plan envisaged balanced regional development and equality and employment. But the growth of population and urban biased industrial development have left out the backward section of population and the rural sector in general un-addressed. The agricultural credit policies and the economic reform in general aim to have positive influence on the total volume of institutional credit. However, the rural banking system in India made tremendous quantitative achievement by neglecting the qualitative aspects of the credit delivery system. The inequalities in the banking system across the regions and social classes persisted. Hence, it is mandatory to understand the regional disparity in the distribution of agricultural credit. In context to Agricultural credit, Southern Region (Rs.101659 crore) dominated the other region Northern Region (Rs.69630 crore), Central region (Rs.45988 crore) Western region (Rs.61613 crore), Eastern Region (Rs.26760 crore)and Northeastern region(Rs.2436...
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...Marketing by the cooperative Zvi Galor www.coopgalor.com 1. Cooperative Marketing A marketing cooperative is set up in order to market and sell the surplus produce of its members, being such a surplus, as they cannot consume themselves. Marketing cooperatives generally sell agricultural produce, but there are also those, which sell fish produce or handicrafts. There are also other definitions of cooperative marketing. Margaret Digby defines a marketing cooperative as a system in which a group of farmers join together in order to carry out part or all of the processes involved in bringing the produce from the producer to the consumer. The Bank of India defines a marketing cooperative as a society of farmers, organized for the purpose of helping the members to market their produce, so as to obtain higher profits than is possible by way of private marketing [1]. The reasons for the establishment of such cooperatives are: When there is a surplus in production over the consumption. In order to save expenses for middlemen who benefit from the producer in various fields, such as: bad weight, very low prices and loans at high rates of interest. When the system in force is archaic, it does not meet the requirements at all, involves many middlemen or compensates very weakly for the producer's work. Thus, a marketing cooperative must offer its members a more efficient service than that in force, so that its members obtain a greater profit from their work. ...
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...CHAPTER ONE Introduction There are three basic needs of man in life, namely food, clothing and shelter. From the beginning, man has worked very hard to provide himself with shelter which protects him from adverse weather and hard climatic conditions. Of all the facets of human environment, a few influences a man’s life more than that of a house in which he seeks shelter, security, comfort and dignity. It is indeed where he begins and ends his days. Proper housing is an important need for every human being. Man’s proper utilization of his resources and economic wellbeing greatly depends on the type of accommodation he has been provided with. “a decently housed citizen is a more productive individual, a good housing scheme complimented by high environmental standard equates with less expense on public health, and less adverse social effect produces a higher gross national income figure for a country” . This is why it is generally accepted that good housing is a social index of a good government especially in developing countries like Nigeria should especially accept the provision of housing as a major social responsibility. Housing is a set of durable assets, which accounts for a high proportion of a country’s wealth and on which households spend a substantial part of their income. It is for these reasons that housing has become a regular feature in economic, social and political debates often with highly charged emotional contents(Agbola, 1998). All...
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