Rural Credit Co-Operatives as a Key to Rural Sustainable Development in the Liberalized India

Abstract

In the Globalized World, it is not just the competition, but the principles of co-operation which takes the economies into win-win situation and rise the Standard of Living of the masses and total output in the world. The Global Mutual Co-operation of the economies can change the face of the world and poverty can be completely eliminated from the world. The cooperative system is huge success at many pockets of the world.

The Direct Institutional Credit for Agricultural and Allied Activities has been on rise in absolute terms year after year, it was Rs.818 Crores in 1970-71 which increased to Rs.41828.4 Crores by 2001-02. The share of credit by cooperatives to total credit for agriculture and allied activates was 90.93 in 1970-71 which gradually declined to 59.05% by 1980-81 and by 1990- 91(pre globalization) it declined to 47.30% and marginally increased to 50.24% in 1991- 92(Globalization), which increased to 56.51% in 1993-94, from which again it is gradually declining and reached to 43.52% by 2001-02(post Liberalisation). It appears among other problems that the gradual shrinking of cooperative loan to Agriculture and allied activities has aggravated the problems of farmers in India.

The cooperative system in order to gear up to the globalized world may have to take the Expert in each specialized field, which has to be hired or has to be observed within the cooperative society so that the technical and managerial expertise is used by the Cooperative society, Merger and amalgamation of cooperative societies to withstand the competition and liquidating the weak Cooperatives.

All India Cooperative Service can be initiated so that a trained band of individuals will guide the cooperatives in India. The marginal and small farmers, rural artisans should be covered to the maximum in the cooperatives either through the Cooperative societies or through linkages with the Self Help Groups or NGOS.

Strengthening the Cooperative credit institutions is the only feasible way to have the good growth in agriculture and there by strengthen and sustain the nine percent growth in India. The Cooperative system has succeeded in all the places when implemented properly including the United States of America. If Cooperatives are restructured and redesigned to the changing economic scenario, the success is already written on the forehead of cooperatives in India.

Keywords: Rural, Credit, Co-operatives, Sustainable Development, Liberalized