Experts slam National Cooperative Policy 2013

KATHMANDU, MAR 21:

Experts and activists from the cooperative sector have criticised the National Cooperative Policy 2013, saying it will not be able to promote cooperatives in the country. The government had introduced the policy two weeks back after a three-year homework.

The policy will not be able to promote the over 27,000 cooperatives in the country, said an expert in the sector Deepak Prakash Baskota. “There is no specific plan to regulate savings and credit cooperatives, and promote cooperatives in nation building,” he said, adding that the sector will not grow without a clear policy. The new policy is absurd, he added.

“The policy has not brought plans to regulate savings and credit cooperatives, so it will not be able to achieve development targets,” said president of Association of Multipurpose Cooperatives Surendra Bhandari. He urged the government to revise the policy and address current problems and promote entrepreneurship culture among cooperatives.

The policy has opened 17 sectors including agriculture, industries, forest-based industry, hospitals, pharmacies, tourism, insurance, and transport.

Cooperatives, till date, have not taken the initiative to establish any big industry by pooling their investments. They have been investing in non-productive sectors like real estate, housing and hire purchase, he said, adding that big cooperatives in Kathmandu have been facing financial problems due to excessive investment in land and housing.

Registrar at the Department of Cooperatives Kedar Neupane said that the policy is just a guideline for the future, so it does not have a concrete plan. “The government will develop a workplan to boost the cooperative sector in the country.”

“There are lots of areas that have been opened for investment but cooperatives are only looking at earning interests from lending,” he said. Cooperatives are not interested in investing in the productive sector, Neupane added.

Cooperatives have not been following basic norms and values, hence they are in trouble, he said. “Savings and credit cooperatives have expanded their working area beyond their members and that has been a major problem,” he said. If cooperatives limit their work within their members then problems will automatically decrease, he added.

Dakshya Paudel from National Cooperative Development Board urged the government to review the policy to make it more effective. The existing policy will not be able to usher in necessary reforms in the cooperative sector, he said.

Source: THT