The word cooperative means working together and with others for a common purpose. • Government has adopted cooperatives as an effective instrument of socio-economic change. They are organised under joint management on democratic methods to improve their domestic and business conditions and capital collection. Ownership is not enough Cooperative ownership per se can promise little or no benefit to members, such benefits only arise when collective power in the marketplace is exercised on the member's behalf. As a result, they sell their products to the middlemen at a lower price against optimum price. Cooperation exists at many levels and takes place between individuals and organizations as well as between states and countries. Elimination of middlemen. A cooperative society is a voluntary organisation of individuals who are mostly workers and small producers. The cooperative movement has contributed significantly to the development of rural areas. The wealthier class of that time was putting a lot of pressure on the less privileged class. The Cooperative Society Project is a nonprofit initiative begun in 2015. Creating a habit of savings and formation of capital: Cooperative society creates the curiosity of caving money in the lower level people of the society which has a great positive impact on the entire country. To get rid of such kind of malpractice cooperative society takes steps strongly. The profit in it avoids going to the capitalists. Robert Owen, a social reformer of England, worked to improve the lives of the working class. Super-mount cooperative markets have been opened in the cities to provide goods at reasonable and low prices by the cooperative society. In this way, the middlemen are eliminated through this committee, benefiting the members of the society. Large public sector cooperatives like NAFED, KRIBHCO, IFFCO, etc. The cooperatives came under regional government. Since its members are mostly of low-income groups, capital can be raised in limited quantities. The feeling of brotherhood and a tendency to work together has grown among the members of these societies. Cooperatives often arise because the market fails a particular group of consumers and employees. Even after working hard, they were not getting the full results of their hard work. The share of profit is distributed equally at a fixed rate, and the rest is put into social development works. In Cooperative society members are provided with better good and services at reasonable prices. What are the Types of Cooperative Societies? The society also provides financial help to its members < the concessional rates. A cooperative society enjoys perpetual succession. Although business is done for the members, it is not possible to refuse the members. Procurement is done directly from the producers, hence the profit of middlemen is reduced. Every year on the first Saturday of July, the Palestinian ministry of labor hosts a celebration of cooperatives and their importance in Palestinian society. Cooperative businesses have lower failure rates than traditional corporations and small businesses, after the first year of startup, and after 5 years in business. Thus, cooperatives are those institutions which are formed for mutual assistance of its members. Importance Of Cooperative Society. The cooperative movement is mainly the movement of the poor. Cooperative Agriculture: Its objective is to increase the size of arable land by forming a cooperative society by a group of farmers. NCERT Book Class 12 Sociology - Indian Society PDF, NCERT Book Class 11 Sociology Understanding Society PDF, Advantages and Limitations of Forecasting, Importance and Limitation of Coordination, Vedantu Without active co-operation of fellow beings, a man cannot lead a happy and comfortable life. Ans: The three advantages of a cooperative society are: It provides a good salary and position to its employees. A co-operative society is an association and at the same time it is a business organization. The cooperative movement was able to reach only 20 percent of the population of such a populated country. Membership of a co-operative society is voluntary. Most of the populations in developing countries are less rich. This is appropriate at a place where neither more capital is required nor more technical knowledge. The funds and time required is minimal to get the society registered. Too much dependence on the government also led to its failure. New cooperative banks were opened at the union, central and regional levels. Q3. Cooperative organisations are formed to serve their members. Cooperative organisations are formed to serve their members. A cooperative society is a type of business formation. The importance is as follow: Creation of strong unity and self-realization: “Unity is strength” is the key point of cooperative society. To protect the interest of weaker sections, the co-operative society is formed. All rights reserved. With regard to economic and social development, cooperatives promote the “fullest participation of all people” and facilitate a more equitable distribution of the benefits of globalization. The weaker sections of the society can create such organisations to protect themselves from exploitation through modern means of production and distributions. The society has provided many facilities for these works. Members can get easy loans from the government. They were initially successful, but later, due to mismanagement, corruption and lack of experience, these types of markets could not work satisfactorily in most cities. Lack of supervision and management of the committees, as well as of the training programs, limited the movement. Cooperative societies encourage the habit of savings and thrift among their members. A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned enterprise". OBJECTIVES OF CO-OPERTIVE BANK • To introduce people to join it as members and shareholders with a minimum efforts. ‘Cooperative Society’ is intended to help each other. Various kinds of professional persons can be united with a view to establishing the large scale of business as well as can be ensured their oven prosperity also national prosperity as well. Lander Cooperative Society: Its purpose is to provide financial assistance to poor and middle-class people in the form of loans. Address these deficiencies putting a lot of new projects which remove unemployment others for a good salary and to... And handed over to cooperatives instead of the committees, as well of. 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