Question

"Cooperatives have received a setback during the recent past." Justify the given statement with valid explanation.

Hint:

Revival of cooperatives needs policy reform, financial aid, and strict governance to make them efficient contributors to rural development.

Answer 1

Cooperatives in India, especially in the agricultural and credit sectors, have experienced setbacks in recent years due to multiple factors:
Lack of Professional Management: Most cooperatives are managed by individuals who may not possess adequate professional or technical knowledge, resulting in poor functioning and inefficiency.
Political Interference: Excessive political influence in cooperative operations has led to mismanagement and misuse of funds.
Inadequate Financial Support: With limited capital and insufficient government support, many cooperatives struggle to sustain operations or upgrade their infrastructure.
Poor Governance: Weak regulatory mechanisms and lack of transparency have reduced public trust in cooperatives.
Urban Preference and Privatization: The shift in focus towards privatization and urban-centric development has led to the neglect of rural cooperative structures. These challenges have hindered their effectiveness, reducing their role in uplifting rural communities.