Relationship between government and cooperatives

 Cooperation is a natural urge of human,  ideally cooperation should be evolved by people  and the inspiration  for its survival and growth should come with the fold. The  application of cooperation to business dates back to a particular time in history, the industrial revolution of 18th century in Britain which brought about the  of machinery and other labour saving devices to industry in general, the level of unemployment increased and income among the working class reduced. unable to buy goods and services at the market prices which where high, the working class realized  that there salvation lied in mutual action, this led to some plans and subsequently establishment of their own stores to supply their needs at reasonable prices.

The Rochdale experience was the first successful attempt in establishing a cooperative business in 1844. When some desperately poor working class people established it. Their success an inspiritation and guidance to cooperation to this day..

The principle in which most cooperative adhere to :
Democratic control , Patronage Returns , Limited refund on capital , strickly cash trading, open membership, Strict neutrality from religion and politics, Education of members,  Sales at market price.

like any other business entity , Cooperstive  operate within communities.  towns, states and countries and therefore amendable to some laws and government control. The governments have some elected appointed officials (people) standing to represen t the interest, and the desires of those who have chosen them. they serve this function by bringing out policies and programmes designed to reflect the interest and aspiration of the people.

It is then necessary that a relationship exist between the government and cooperatives. That relationship that exist between government and their societies comes form of attitude , policies and programme put in place by government to reegulaye, organize and coordinate the activities of cooperative society so that the objective of forming it does not derail. The relationship have been diverse for a long time and at different times , it started when  cooperative movement were agitated  for reforms that would encourage and promote cooperative activities, to when government felt that they could offer some supporting service to the movement because of its attendant usefulness and gains to the overall economy and to when government realize that the movement need some legal backings and encouragement and still to when it became government business.
The degree involvement between government and cooperatives society is determined by the nature of the country and greatly depends too on the economic system in each of these countries , the level of development and various experiences of people in these countries

   FIVE TYPES OF RELATIONSHIP CAN BE IDENTIFIED BELOW:

® Government takes no interest in cooperative society apart from the normally cooperation extended to other business as regard providing the legal frame work for its operation

® Government takes some degree of interest in the promotion of cooperative society through the seminars provided to them along side  seeing them as a form of business identity.

® Government takes no interest and its policies do not encourage the  establishment of cooperative societies but other forms of business exist

® Government takes active interest and partakes in organizing and controlling the enterprise, it had even found it worthy to establish a department in a revelant ministry to be headed by director or commissioner , and cooperative head by director or commissioner, and cooperative laws that would govern their activities of cooperatives are made.

® Government takes active interest  in inspecting and auditing all statutory books and records of the cooperative societies.

  In developing countries like Nigeria with low level of development. high rate of illiteracy , pervasive poverty , availability  of so many economic problems, and low level of cooperative education. All these have made it abundantly necessary for government to promote and supervise cooperative societies.
In this direction the government appoints an officer with the duties of assisting and guilding the growth of cooperative firms by ensuring that proper legal frame work is in place throuvht the provision of cooperative laws and regulation called Model Bye- laws. The government officers ensure the strict compliance to these byelaws by the cooperative management committee.