Cooperative Movement and Socio-Economic Development

During the closing ceremony of the National Cooperatives Congress at the World Trade Centre on July 26, Prime Minister Datuk Seri Anwar Ibrahim stated that the government wants wider public participation in the cooperative movement. He also encouraged federal and state government agencies to set up cooperatives and urged the more than 15,000 cooperatives across the country to collaborate with the government in making Malaysia a more sustainable and productive nation.

The congress was organised by Angkatan Koperasi Kebangsaan Malaysia Berhad (Angkasa). With its 7.2 million members, Angkasa recorded revenue totalling RM64.6 billion last year, with share capital and fees amounting to RM17 billion, and asset generation worth RM165.9 billion.

I was part of the UMK-AURA team, a cooperative research academy, appointed by Angkasa, to gather inputs and feedback from the cooperatives grassroots. In a period of less than six (6) months, together with Angkasa, we organised 26 series of engagements involving more than 4,000 various stakeholders.
 
The biggest challenge was synthesising all the inputs into eight (8) resolutions, presented to the Prime Minister by the President of Angkasa. Throughout the process, we learned about the noble philosophy, principles, and values of cooperatives, and how the movement can play a significant role in uplifting the socio-economic status of the country, in tandem with the Malaysia Madani’s framework.   
 
Philosophy of the Cooperative Movement
 
The cooperative movement is founded on the belief that collective effort and mutual support can lead to greater economic and social benefits for individuals and communities. This philosophy is rooted in the idea that people can achieve more together than they can alone. Cooperatives are based on democratic control, member participation, and the equitable distribution of benefits, which ensure that the interests of all members are prioritised over individual profit motives.
 
Principles of the Cooperative Movement
 
The International Cooperative Alliance (ICA) outlines seven principles that guide the cooperative movement globally:
 
1.     Voluntary and Open Membership: Cooperatives are open to all individuals willing to accept the responsibilities of membership without discrimination.
 
2.     Democratic Member Control: Cooperatives are democratic organisations controlled by their members, who actively participate in setting policies and making decisions.
 
3.     Member Economic Participation: Members contribute equitably to, and democratically control, the capital of their cooperative. Surpluses are used for the cooperative’s development, benefiting members in proportion to their transactions.
 
4.     Autonomy and Independence: Cooperatives are autonomous, self-help organisations controlled by their members. Agreements with other organisations or governments are made under conditions that ensure democratic control.
 
5.     Education, Training, and Information: Cooperatives provide education and training for their members, elected representatives, managers, and employees to contribute effectively to the development of their cooperatives.
 
6.     Cooperation among Cooperatives: Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
 
7.     Concern for Community: Cooperatives work for the sustainable development of their communities through policies approved by their members.
 
Values of the Cooperative Movement
 
Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. Ethical values such as honesty, openness, social responsibility, and caring for others are also fundamental to the cooperative movement. These values foster a sense of community and collective responsibility, encouraging members to work together towards common goals.
 
Impact on Socio-Economic Development
 
Cooperatives can significantly improve the socio-economic status of a country by:
 
1.     Promoting Economic Inclusivity: Cooperatives provide opportunities for individuals, particularly those from marginalised or low-income backgrounds, to participate in economic activities and access essential services. This inclusivity helps reduce poverty and income inequality.
 
2.     Enhancing Local Economies: By pooling resources and sharing profits equitably among members, cooperatives can stimulate local economic development. This can lead to job creation, improved livelihoods, and sustainable economic growth.
 
3.     Empowering Communities: Cooperatives empower members by giving them a voice in decision-making processes. This democratic participation fosters a sense of ownership and accountability, leading to more effective and responsive governance.
 
4.     Fostering Social Cohesion: Cooperatives build strong social networks and promote solidarity among members. This social cohesion can enhance community resilience and collective problem-solving abilities.
 
5.     Encouraging Sustainable Practices: Many cooperatives prioritise sustainable development and environmental stewardship. By adopting eco-friendly practices and promoting the responsible use of resources, cooperatives contribute to long-term environmental sustainability.
 
6.     Providing Education and Skills Development: Cooperatives invest in the education and training of their members, equipping them with the skills and knowledge needed for personal and professional growth. This investment in human capital can lead to higher productivity and innovation.
 
Conclusion
 
The cooperative movement, with its philosophy of collective effort and mutual support, underpinned by democratic principles and values of equity and solidarity, offers a powerful model for socio-economic development. By promoting inclusivity, empowering communities, and fostering sustainable practices, cooperatives can play a pivotal role in improving the socio-economic status of a country, creating a more equitable and resilient society.
 
Despite its promising benefits, much work remains to be done. The burdens rest on the shoulders of Kementerian Pembangunan Usahawan dan Koperasi (KUSKOP) and its agencies, Angkasa, Suruhanjaya Koperasi Malaysia (SKM), and Institut Koperasi Malaysia (IKMa), to ensure members of the cooperatives movement in Malaysia understand the philosophy, and follow the principles and values of cooperatives, for them to deliver the results.  

Image – New Straits Times

Leave a Reply

When the Trump administration threatened to impose steep tariff hikes—25% on imports from Canada and Mexico, which is now paused,...
Will-The-U.S.-Quietly-Be-Isolated-After-Trumps-Tariff-Hikes-Threats
In a landmark decision that sparked global discussion, President Donald Trump formally announced the United States’ withdrawal from the World...
dg_dr-tedros
The PKB delegation was led by the esteemed Mr. Badrudi bin Haji Hamid, Administration and Finance Manager PKB, alongside prominent...
WhatsApp-Image-2025-01-22-at-9.23.49-AM-980x1307-1
Here’s what ArosliWealth, a user in X wrote about it based on what he knows. He mentioned a rumour going...
Are-The-Rumours-True-Is-Petronas-About-To-Retrench-Its-People
A high-profile delegation from Permodalan Kedah Berhad (PKB), led by its dynamic Chief Executive Officer, Mr. Mohd Azad bin Jasmi,...
WhatsApp-Image-2025-01-06-at-11.05.24-AM-1080x577-1
South Korea’s tourism industry faces a significant setback as the nation grapples with political turmoil following President Yoon Suk Yeol’s...
korea-travel
South Korea has been plunged into political turmoil as authorities imposed a travel ban on President Yoon Suk Yeol following...
south-korea-travel-ban
Chinese firms operating in the European Union are facing increasingly difficult business conditions, according to Reuters marking the fifth consecutive...
eu-flag
Travel safety can quickly become a hot topic when political events disrupt normal life, and South Korea recently found itself...
martial-law
Displaced families in Lebanon began their long journey back home on Wednesday morning according to CNN , marking a hopeful...
checking-temperature-of-refugee-child-2023-11-27-04-58-51-utc
The West Bank has long been at the center of the Israeli-Palestinian conflict, a region with deep historical, religious, and...
trump-win-copy
In an unprecedented move, the International Criminal Court (ICC) has issued arrest warrants for high-profile figures on both sides of...
Bombing In Gaza