people-centred co-op societies- EDITORIAL

In this era where the Government is taking bold moves to stabilise Sri Lanka’s economy after the worst ever crisis since independence in 1948, a vital move would be the revival and modernization of the co-operatives and societies in Sri Lanka. According to the Co-operative Development Department, the co-operative societies system started in 1906 to fulfil the economic needs of rural farming community by granting loans.

Since the number of co-operative societies was increased, Co-operative Societies Ordinance No.7 of 1911 was enacted to provide guidance and observation. In the same year, the government got involved in the Co-operative movement. It has been documented that Dumbara Mitiyawatha Co-operative Society was the first co-operative society to have emerged in Sri Lanka.

The post of “Registrar of Co-operative Societies” was created with the government’s involvement. Director of Agriculture at that time was appointed to this post and held it from 1911-1930. Co-operative Department was established as a separate department in 1930. W.K.H. Campbell was the first Registrar of Co-operative Societies. The Co-operative Societies were re-organized in 1971 compatible with the economic and business scope. Accordingly, area within the authority of the society was expanded and established as a stable economic unit. 

But independent political analysts believe that with the introduction of the Executive Presidential system in 1978, the co-operative movement was degraded or marginalized with the globalized capitalist market economic policy coming to the forefront. 
It is in this backdrop that we reflect on the United Nations International Day of Co-operatives on July 2 with the theme being “co-operatives build a better world”. It will be the 100th International Day of Cooperatives. In a statement the UN says a decade on from the UN International Year of Cooperatives, which showcased the rare contribution of cooperatives to making the world a better place, this year’s CoopDay slogan — “Cooperatives Build a Better World”— echoes the theme of the International Year. 

Operating all around the world, in many different sectors of economy, cooperatives have proven themselves more resilient to crises than the average. They foster economic participation, fight against environmental degradation and climate change, generate good jobs, contribute to food security, keep financial capital within local communities, build ethical value chains, and by improving people’s material conditions and security, contribute to positive peace, the UN says. 

Co-operatives have been acknowledged as associations and enterprises through which citizens can effectively improve their lives while contributing to the economic, social, cultural and political advancement of their community and nation. The co-operative movement has been also recognized as a distinct and major stakeholder in both national and international affairs.

According to the UN, co-operatives also foster external equality. As they are community-based, they are committed to the sustainable development of their communities - environmentally, socially and economically. This commitment can be seen in their support for community activities, local sourcing of supplies to benefit the local economy, and in decision-making that considers the impact on their communities.

Despite their local community focus, co-operatives also aspire to bring the benefits of their economic and social model to all people in the world. Globalization should be governed by a set of values such as those of the co-operative movement; otherwise, it creates more inequality and excesses that render it unsustainable.

The co-operative movement is highly democratic, locally autonomous, but internationally integrated, and a form of organization of associations and enterprises whereby citizens themselves rely on self-help and their own responsibility to meet goals that include not only economic, but also social and environmental objectives, such as overcoming poverty, securing productive employment and encouraging social integration.The earliest record of a cooperative comes from Fenwick, Scotland where in March 14, 1761, in a barely furnished cottage local weavers manhandled a sack of oatmeal into John Walker’s whitewashed front room and began selling the contents at a discounted price and forming the Fenwick Weavers’ Society. 

In 1844, a group of 28 artisans working in a cotton mill in the town of Rochdale, North of England established the first modern cooperative business, the Rochdale Equitable Pioneers Society, also known as the Rochdale Pioneers. They are regarded as the prototype of the modern cooperative society and founders of the cooperative movement. The weavers in these cotton mills in Rochdale faced miserable working conditions and low wages, and they could not afford the high prices of food and household goods. They decided that by pooling their scarce resources and working together, they could access basic goods at a lower price.