Measures to Overcome the Challenges

7. Measures to Overcome the Challenges

The challenges before the co-operative sector are serious but not beyond solution. With honest effort by members, managements and the government, co-operatives can overcome their weaknesses and grow strongly. The main measures are:

1. Reduce political interference. Keep politics out of societies by encouraging aware members to elect committees on merit, holding clean and regular elections, and insisting that societies be run for members' economic benefit rather than as political bases. An educated, active membership is the strongest check on political capture.

2. Introduce professional management. Separate policy-making (the elected committee) from day-to-day management (trained, qualified managers and staff appointed on merit). Provide regular training to both committee members and employees so that the society is run with real business skill.

3. Strengthen the financial position. Widen membership and raise share capital and deposits; recover loans strictly and on time to cut down overdues; control expenditure; build strong reserves out of surplus; and reduce over-dependence on outside borrowing and government aid so the society stands on its own funds.

4. Educate and involve members. Through the principle of education, training and information, make members understand co-operative values and their own rights and duties, so they participate actively, attend meetings, vote wisely and remain loyal to their society. Active members keep management honest and the society democratic.

5. Improve efficiency and adopt technology. Modernise operations through computerisation and up-to-date methods, improve the quality of services and products, and plan the business properly — including sensible diversification — so the society can face competition.

6. Ensure transparency and check corruption. Maintain proper accounts, get timely and honest audits done, and keep the working of the society transparent to its members so that corruption and mismanagement are prevented and members' trust is retained.

7. Balance government support with autonomy. The government should give co-operatives helpful support and guidance while reducing unnecessary control, so that societies enjoy genuine autonomy and independence and can take their own decisions. …