Govt in confusion on coops
KATHMANDU:
The experts today expressed that government has made the role of co-operatives ambiguous by giving them more importance.
“The government needs to define the relationship of co-operatives and private sector so that both can be clear on their area of work,” said registrar of the Department of Cooperatives (DoC) Sudarshan Dhakal in an interaction on role of co-operatives in Nepali economy here today.
The current fiscal year’s budget has put more emphasis on the role of the co-operatives in economic activities almost equivalent to the private and public sector which has caused quite a furore among the private sector players and the supporters of liberal economy.
“The co-operatives can play pivotal role in poverty alleviation in the grassroots level,” Dhakal pointed out, adding that the government has also recognised them as an important component to fight against poverty.
“Though government has tried to give them more responsibilities in the nation building process, Department of Co-operatives and even its the ministry is not yet strong enough,” he said, lamenting that they have little access in policy making.
There are more than 22,600 registered co-operatives at present of which credit and saving cooperatives comprise 65 per cent with about three million members.
According to the data collected by the department, the co-operatives were found to be mobilising deposits worth Rs 120 billion while their capital is about Rs 20 billion.
The two-third of the total business of co-operatives is undertaken outside the Kathmandu valley and there are only about 5,000 co-operatives in the capital with about 500,000 members.
President of Nepal Chamber of Commerce (NCC) Suresh Kumar Basnet also pointed out that the policy makers have no sense of direction regarding the economic policy.
“The government is hoping to push co-operatives in most of the sectors at present dominated by private sector like trade, transport, education, infrastructure and health,” he said, adding that co-operatives are tax free and privileged sector with government protection that can give hard times to the private sector.
He doubted the security of the investment as the government is moving from liberal economic regime to controlled one. “It will eventually lead not only to contraction in investment but also fuel capital flight,” he cautioned.
Economist Dr Chiranjibi Nepal also said that the development of co-operatives should be spontaneous and need-based not pushed by the government. “The pushed policy giving undue emphasis on co-operatives’ promotion could lead to disaster,” he said, adding that in the liberal economies like USA and Singapore also a large number of people are involved in co-operatives but spontaneously.
Chairman of Civil Group Ichhya Raj Tamang — as a representative of both private sector and co-operatives — also expressed that government itself is confused whether it wants to promote co-operatives or the private sector.
“The country needs both co-operatives for small time investment and private sector for larger projects requiring more capital,” he said, adding that government needs to find a way to tie these two sectors up through its policies.
Source: THT
The experts today expressed that government has made the role of co-operatives ambiguous by giving them more importance.
“The government needs to define the relationship of co-operatives and private sector so that both can be clear on their area of work,” said registrar of the Department of Cooperatives (DoC) Sudarshan Dhakal in an interaction on role of co-operatives in Nepali economy here today.
The current fiscal year’s budget has put more emphasis on the role of the co-operatives in economic activities almost equivalent to the private and public sector which has caused quite a furore among the private sector players and the supporters of liberal economy.
“The co-operatives can play pivotal role in poverty alleviation in the grassroots level,” Dhakal pointed out, adding that the government has also recognised them as an important component to fight against poverty.
“Though government has tried to give them more responsibilities in the nation building process, Department of Co-operatives and even its the ministry is not yet strong enough,” he said, lamenting that they have little access in policy making.
There are more than 22,600 registered co-operatives at present of which credit and saving cooperatives comprise 65 per cent with about three million members.
According to the data collected by the department, the co-operatives were found to be mobilising deposits worth Rs 120 billion while their capital is about Rs 20 billion.
The two-third of the total business of co-operatives is undertaken outside the Kathmandu valley and there are only about 5,000 co-operatives in the capital with about 500,000 members.
President of Nepal Chamber of Commerce (NCC) Suresh Kumar Basnet also pointed out that the policy makers have no sense of direction regarding the economic policy.
“The government is hoping to push co-operatives in most of the sectors at present dominated by private sector like trade, transport, education, infrastructure and health,” he said, adding that co-operatives are tax free and privileged sector with government protection that can give hard times to the private sector.
He doubted the security of the investment as the government is moving from liberal economic regime to controlled one. “It will eventually lead not only to contraction in investment but also fuel capital flight,” he cautioned.
Economist Dr Chiranjibi Nepal also said that the development of co-operatives should be spontaneous and need-based not pushed by the government. “The pushed policy giving undue emphasis on co-operatives’ promotion could lead to disaster,” he said, adding that in the liberal economies like USA and Singapore also a large number of people are involved in co-operatives but spontaneously.
Chairman of Civil Group Ichhya Raj Tamang — as a representative of both private sector and co-operatives — also expressed that government itself is confused whether it wants to promote co-operatives or the private sector.
“The country needs both co-operatives for small time investment and private sector for larger projects requiring more capital,” he said, adding that government needs to find a way to tie these two sectors up through its policies.
Source: THT
