VAE 311: Principles and Techniques of Veterinary and AH Extension (2+1)

REVISED CO-OPERATIVE PRINCIPLES

• With the eventual growth in science and technology and diversification in cooperative business, it was felt that the Rochdale principles needed some modification, clarifications and adjustments.
• Consequently the International Cooperative Alliance (ICA) appointed a sub committee in 1934 for this purpose.
• The committee in its report (1937) classified these principles into two broad groups as follows:

Essential principles	Non essential principles
Open membership	Political and religious neutrality
Democratic management	Cash trading
Limited interest on capital	Education to members
Payment of dividend in proportion to transaction

• These principles did not leave enough scope for interpretation and understanding. Accordingly, the ICA again appointed a commission in 1964 and this commission submitted its report in 1966. It had two characteristic features.
• Firstly it did not classify the principles as essential and non-essential and secondly the principles were explained as accurately as possible. These principles were again revised by the ICA which was adopted at the 1995 Congress and General Assembly of the International Co-operative Alliance, held in Manchester to celebrate the Alliance's Centenary.
• The reformulated principles were as follows.
• Voluntary and open membership
  • Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
• Democratic member control
  • Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions.
  • Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organised in a democratic manner.
• Member economic participation
  • Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative.
  • Members usually receive limited compensation, if any, on capital subscribed as a condition of membership.
  • Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.
• Autonomy and independence
  • Co-operatives are autonomous, self-help organisations controlled by their members.
  • If they enter to agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.
• Education, training and information
  • Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives.
  • They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation.
• Co-operation among co-operatives
  • Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.
• Concern for community
  • Co-operatives work for the sustainable development of their communities through policies approved by their members.