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4.    PRESENT COOPERATIVE LAWS IN SELECTED COUNTRIES

4.1     Present cooperative laws of the region are primarily the product of a period where cooperatives are extensively supported by the Governments, and used for government planned development programs. Since the introduction of market economy and globalization of trade, government support to cooperatives is constantly declining. However, no perceptible changes are made in the cooperative laws and Government-Cooperative relationship. The Governments continue to exercise their control over cooperatives, including interference in cooperative's day to day affairs in many countries. The cooperative leadership continues to look towards government for guidance and financial support, more than towards their members. If the Government and cooperative leaders do not change this attitude, both, the cooperative idea will not survive long as a structural force. Cooperatives must compete and justify their existence by showing efficiency, better services and competence. Changes in the existing cooperative legislative structure in some countries are imperative. With their hands and feet tied under the existing laws, in many cases, cooperatives will not be able to compete and stand with the market forces. Therefore there is need to examine the various existing cooperative laws in the countries in the present context, and bring the necessary changes about so that the cooperatives are able to play an effective role to serve their members and the needs of the societies at large, in matters such as environment protection, food security, gender integration etc.

4.2     In Asia at present there are two types of Cooperative Laws prevailing, viz (i) a Common Law for all types of cooperatives and (ii) Sectoral Laws. With the exception of Japan and South Korea in all Asian Countries there is one common law for all types of cooperatives. In Japan and South Korea different laws regulate the different types of cooperatives, and different ministries control cooperatives. For example, there are 6 separate comprehensive cooperative laws in Japan for Agriculture Coops, Consumer Coops, Fisheries Coops etc. The same is true for South Korea. In the Philippines, in the past, though there was a general cooperative law, specialized cooperatives, like Sugar and Electric Cooperatives were registered under separate statues. Now they have been brought under one common law.


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