SUSTAINABLE LIVELIHOOD PROMOTION THROUGH CO-OPERATIVE MODEL: A STUDY OF NAGSHANKAR CO-OPERATIVE RUPAK DAS1 ABSTRACT Co-operative Movement in Assam has entered into a new phase of organizational and functional development ever since the implementation of Assam Co-operative Societies Act, 1949. The societies played an important role in the development of agriculture, banking, credits, diary, fishery, non farm sectors through various co-operative models. Sustainable livelihood got a new impetus when the United Nation Conference on Environment and Development advocated it as a broad goal for poverty alleviation. In India over the years, successive governments vied for sustainable development without much success. Several cooperatives were formed in urban and rural areas, but the co-operative in the village Nagshankar demonstrated the possibility of co-operation. This paper highlights the success story demonstrated by Nagshankar in promoting sustainable livelihood based on the principle of co-operation in that area. The study has been conducted with the objective to look into the impact of co-operative on rural livelihood. Primary data have been collected using an interview schedule from the household for the fulfillment of the objectives. It has been found from the study that people in the area to a great extent have been benefited from the society and also gave their invaluable suggestion to strengthen the cooperative movement particularly in rural areas of the country Key Words: Sustainable livelihood, Co-operative, Nagshankar. 1. INTRODUCTION 1.1 Sustainable Livelihood The concept of livelihood has been central to development practitioners thinking and practice over the past decade; it evolves through a period of time. Livelihood perspectives start with how different people in different places live (Scoones, 2009). A variety of definitions are added in the literature, it is said to be a set of economic activities, involving self employment or wage employment to keep a person meaningfully occupied in a sustainable manner with dignity, carried out repeatedly and become a way of life (Dattaet. al., 2009). A livelihood comprises of people, their capabilities and their means of living, including food, income and assets. A livelihood is sustainable when one can cope with, and recover from, stresses and shocks and maintain or enhance its assets and capabilities while not undermining the existing resource base. It has the objective to enhance capabilities, improve equity and increase social sustainability (Chambers & Conway, 1991). The idea was first introduced by the Brundtland Commission on Environment and Development formally known as the World Commission on Environment and Development (WCED), and the United Nations Conference on Environment and Development in 1992, advocated that it is a broad goal of poverty eradication (Krantz, 2001). WCED defines sustainable livelihood as adequate stocks and flows of food and cash to meet basic needs. Security refers to secure ownership of, access to, resources and income earning 1
Research Scholar, Department of Business Administration, Tezpur University, Email:
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activities, including reserves and assets to offset risk, ease shocks and meet contingencies. Sustainability refers to the maintenance or enhancement of resource productivity on a long term basis. A household may be enabled to gain sustainable livelihood security in many ways through ownership of land, livestock or trees, fishing, hunting or gathering, stable employment with adequate remuneration or through varied repertoires of activities. In 1991, Robert Chambers and Gordon Conway modified the same and proposed a composite definition, and aptly defined a livelihood comprises the capabilities, assets (stores, resources, claims and access) and activities required for a means of living. A livelihood is sustainable which can cope with and recovers from stress and shocks, maintain or enhance its capabilities and assets, and provide sustainable livelihood opportunities for the next generation; and which contributes net benefits to other livelihoods at the local and global levels and in theshort and long term (Chambers & Conway, 1991).1British Department for International Development (DFID) adapts a version of Chambers Conway's definition of livelihoods. DFID proposed a livelihood framework; it is a tool to improve our understanding of livelihoods, particularly the livelihoods of the poor. 2 Fig1:Sustainable Livelihoods Framework
Source: Sustainable livelihood guide sheet DFID, 1999 Sustainability of livelihood strategies of individual or households depends on access, use, and development of different types of assets (Woodhouseet. al., 2000).2Access to possession and accessibility to productive capital determines ones livelihood (DFID, 1999). 3 These assets are the basis on which livelihoods are built and in general, the greater and more the asset base the higher and more durable the level of social security (Carney, 1999).4
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Chambers, R., & Conway, G.,R., (1991). Sustainable rural livelihoods: practical concepts for 21 st century. Institute of Development Studies (IDS). 2 Woodhouse,P.,Howlett, D., &Rigby,D.,(2000). A Framework for research on sustainability indicators for agriculture and rural livelihoods. Department for international development research project,UK 3 . DFID, (1999). SustainableLivelihoods guidance sheets, 94 Victoria Street, London. 4. Carney,D., (1999). Sustainable livelihoods approaches: Progress and Possibilities for change. Department for International Development working paper.
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Table-1: Elements of Sustainable Livelihoods Framework Livelihood Vulnerability Transforming Structure/ Livelihood Assets Context Processes Outcome Human Capital Shocks Levels of Laws More income Government Natural Capital Trends Private Policies Stronger Voice Sector Financing Seasonality Culture Reduced Capital Vulnerability Social Capital Institutions Improved Food Security Physical More Sustainable Capital use of natural resource base Source: Sustainable livelihood guide sheet DFID, 1999 Table-2: Components of livelihood assets Livelihoods Assets Human Capital
Components Skills, knowledge, ability to labour, good health, physical capability
Natural Capital Financing Capital
land, soil, water, air forests fisheries, trees etc. savings, credit, and income from employment, trade and remittances
Social Capital Physical Capital
Networks, social claims, socialrelations, affiliations, associations Infrastructure, such as roads, water & sanitation, schools, ICT; bicycle, livestock, equipment
Source: Sustainable livelihood guide sheet DFID, 1999 More recently leading proponent Ian Scoones of Institute for Development Studies (IDS) proposed a modified definition and aptlytermeda livelihood comprises the capabilities, assets (including both material and social resources) and activities required for a means of living. A livelihood is sustainable when it can cope with and recover from stresses and shocks maintain or enhance its capabilities and assets, while not undermining the natural resource base5 (Scoones, 2009).
________________________ 5 Scoones,L., (2009). Livelihoods perspectives and rural development. The Journal of Peasant Studies
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1.2 Co-operative International Co-operative Alliance defines co-operative as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise; it is based on the values of self help, self responsibility, democracy, equality, equity and solidarity It is based on the principle of voluntary and open membership, democratic member control, members participation, autonomy and independence, education, training, co operation among members, concern for community. According to Business Dictionary co-operative is a firm owned, controlled, and operated by a group of usersfor their own benefit. Each member contributes equity capital, and shares in the control of the firm on the basis of one-member, one-vote principle (and not in proportion to his or her equity contribution). A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly and democratically controlled enterprise. A co-operative (also co-operative; often referred to as a co-op) is a business organization owned and operated by a group of individuals for their mutual benefit. Co-operatives are defined as autonomous associations of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through jointly owned and democratically controlled enterprises. A co-operative may also be defined as a business owned and controlled equally by the people who use its services or by the people who work there.A co-operative is a legal entity owned and democratically controlled by its members. Members often have a close association with the enterprise as producers or consumers of its products or services, or as its employees. The Indian Co-operatives Societies Act,1912 defines co-operatives in sec 4 as “Society which has its objective the promotion of economic interest of its members in accordance with cooperative principle”.Assam Co-operative Society Act, 2007 aptly remarked co-operative Society is a people’s institution formed by them voluntarily based on self help and mutual aid for their common need as well as for socio economic upliftment. Co-operative is a state subject, should be registered under Assam Co-operative Societies Act 2007. 2. REVIEW OF LITERATURE India, being the land of villages, its future lies in the hands of its villagers. It is an important unit in organization of Indian social life. In India, more than 68.84% of the people live in the villages, whereas in Assam 85.90 % of people live in rural area (Census report 2011).Cooperatives cover more than 97%of Indian villages, run by members (farmers, community based organization) and some by the government.Co-operative society comes into existence with the aim of improving the welfare of the rural community as a whole based on the principle of cooperation. It has able to provide livelihood ever since the formation of co-operatives through heterogeneous co-operative models like dairies, fisheries, PDS, banking, handlooms, consumer stores etc contributing significantly to rural development (Kaur, 2014; Dubey et. al.,2009). The study by Chakrabarty and Ghosh (2009) reveals that the rural co-operative has been able to improve the living standard of the rural people and accelerated the process of rural development in remote India. People organized themselves to help each other for their own benefit, believing in the philosophy of “all for each and each for all”. A rural co-operative society comes into existence with the aim of improving the welfare of the rural community as a whole. Chloupkova et. al., (2002) stated that inclusive network cooperation based on trust and regular face-to-face interaction i.e., positive social capital has been one of the crucial means by which small farmers have managed to survive, which is considered to be key livelihood assets as per the guidance Page | 4
sheet of Department for International Development (DFID, 1999).Social development norms of cooperation in villages and neighborhoods, community oversight in the management of projects, or non-discrimination against women and minorities in education and health, human interaction, relations between people are one of the key dimensions of UNDPs Sustainable Development Goals (SDGs) which replaces the earlier Millennium Development Goals (MDG) at Rio, in 2012. The United Nations Conference on Environment and Development (UNCED) advocated for the achievement of sustainable livelihoods as a broad goal for poverty eradication. It stated that sustainable livelihoods could serve as an integrating factor that allows policies to address development, sustainable resource management, and poverty eradication simultaneously (Krantz, 2001). Co-operatives provide education and training to their members, elected representatives, managers, and employees so that they can contribute effectively to the development of their cooperatives. Chloupkova et.al., (2002) stated that co-operative movement imparts the members of scientific possibilities through training and the establishment of social control mechanism, so that none of members were cheated that assist in building human capital which is a another key to livelihood assets. This holistic approach helps members from the clutches of capitalists from being exploited. Co-operatives work for the sustainable development of their communities through policies approved by their members. Heavy fines were imposed for everyone breaking this rule. Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures. Cooperation among members is an underlying postulate of co-operatives. Co-operatives without cooperation are just like ship without navigator. Putnam (1993) defines it is the trust that facilitates cooperation and coordination for mutual benefits. The unity or agreement of feeling or action, especially among individuals with a common interest, mutual support within a group which helps in building social link between individual as defined by Stanisavovna (2015). Thus, provides a strong pillar for socio-economic development of the society and the members as well. 3. OBJECTIVE OF THE STUDY The study is undertaken to analyze the livelihood assets created by co-operative society and thereby ensuring sustainable rural livelihood and suggests necessary recommendation so as to promote the society model for rural livelihood. 4. RESEARCH METHODOLOGY The study is descriptive in nature and based on primary and secondary data. Primary data has been collected from the respondents through the use of Interview Schedule and data are collected through interviewing 50 co-operative members usingPurposive sampling technique and secondary data in the form of annual report and final account of the Samiti has been used for analysis of the study.A dichotomous set of questions were asked for the study. 5. LIMITATION The study has been confined to one co-operative only with limited number of samples. The study may not be generalized to Assam as a whole. Firm livelihood could not be incorporated due to time constraints. 6. SIGNIFICANCE OF THE STUDY The study will help the policymakers, planners and development practitioners in rural development. The study findings will provide facts which can be useful in preparation Page | 5
intervention projects and the course of action to be undertaken to overcome the challenges of unemployment, poverty and sustainable livelihood. The study will also provide a baseline for other researchers and will contribute to the existing literature AN OVERVIEW OF HOLISTIC APPROACH TO LIVELIHOOD PROMOTION Off-Farm Livelihood:The NagsankarSamabaiSamiti Ltd (NSSS) Experience Fig:2 Glimpse of NagshankarSamabaySamity
NagshankarSamabaySamiti LTD. (NSS) Non-farm activities (manufacturing, services and trading) often create alternate and more remunerative livelihoods for people, and are the fastest growing sectors for employing rural people (Dutta et. al.,2009).The capacity of land to support livelihoods is limited. An increasing number of people must therefore find livelihoods off the farm. It was registered under the State Co-operative Societies Act of Assam with the objective to promote the livelihood of members, farmers and local people under the areas of the societies. This is done through various activities by providing savings and credit, transportation, input supply and marketing, PDS items like MMAY,APL rice, BPL rice, Mid-day meal, Sk oil (Kerosene)etc and Non PDS items like fertilizer, hardware, retail consumer good, other commodities .
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The Context NSSS is a Gram Panchayat Samabay Samiti (GPSS) established in 1973 in Sootea Community Development (CD) block of Sonitpur district, Assam, under the Assam Cooperative Society Act, 1949. The operational area is confined to 4 nearest village Panchayats viz. Uttar Nagsankar, Dakhin, Nagsankar, Pub Nagsankar and Madhya Nagsankar. By and large it is known as local institutions addressing local needs, employing local talent, and led by local leaders. Profile of the area Fig:3Location Map of Sonitpur District
Table-3 List of Villages under NSSS Gaon Panchayat Villages (60) Pub Nagshankar Balijan,SalaiKhaiti , Nlr 60/102 Gdcbm. Co., Monaibagisa,Diplonga, Tangia, 41/49 MonaiBagicha, 67/57 MonaiBagicha, M.C. Bagicha, Chenga Mari,Diplonga, TanganaJhar, MonaiBagicha, Na-Duar Reserve Forest, Hokajan, Diplonga, Ban Gaon, Tangia, Patarbasti, TanganajharKaibarta, 97/148 M.C. Bagicha, Monaibagisa, 14/9 Diplonga, 33/3 Diplonga, 15/7 Diplonga, Chenga Mari, 17/56 M.C. Bagicha Madhya KataniBasti,PathakaKuri,Sadai Bora, Bebejia,Habidoloni, Bhuyan Nagshankar Para,Chengamari, Dikarai Pam, SolalSonar,Nal-Tali DakshinNagshankar Batia Roka, GosainChapori Uttar Nagshankar
Nag-SankarGaon,Metera,
GosainChapori,ChamarDoloni,
No.2 Tezalpati, No.1 Tezalpati, Nlr365/639 DikariBagicha, Nlr 277/470/Dikarai, Nlr121/221 DikariBagicha, DikariBagisa(Nlr), No.3 Balijuri,No.1 Balijuri, No.2 Itakhola, Tengabasti, Hatipati, D.C. Bagicha, No.2 Balijuri, No.1 Itakhola, Nlr64/93 DikariBagicha,Nlr 42/42 DikariBagicha, Nlr66/107 DikariBagicha Source :Local Government Directory
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Table-4: Share Capital Stakeholders Amount of Shares (Rs) Authorized Capital 2,50,000 Govt. share 1,36,000 Individual Share 65,675 Others 24,090 Total paid up capital 2,25,765 Source: Annual report of NSS LTD. for the year 2013-14 Table-5: Demographic Profile of the Area Total population (Sootea Community Development Block) Population under NSSS No. of Village No. of Gaon Panchayat Male Female Population of ST Population of SC Percentage Male Percentage Female Source: Census report 2011 and Local govt. directory
1,24,909 52,560 60 4 26,679 25,881 5,545 2,207 50.76% 49.23%
Figure-4 Functional Structure of the Society Members Chairman Management Committee Elected Member Secretary Assistant Secretary Employee The tribal population of India constitutes around 8%, whereas the Sootea block constitutes nearly 11 % of its total population in that area and a sizeable number of low caste populations(Census of India, 2011). The members are primarily consists of farmers, agricultural labour.In 1973, when NSS first started working in Sootea CD block, the village suffered from poor access to fertilizer, hardware items, absence of a savings base, poor access to institutional agricultural credit jeopardized agriculture and livestock productivity as a whole that lead to low agro-productivity, poor access to marketing and consumer goods because of lack of bargaining Page | 8
power, social unrest etc. Besides, the rural populace has to travel along 12-15 km to access to the bare necessities of life. Most of them, therefore, migrate to nearby towns for subsistence. NSSS’s intervention was therefore aimed at addressing the issues and started the operations with that objective. Table -6: Gender profile No. of Male members of the society 5,497 No. of Female members of the society 97 Source: Annual report of NSS LTD. for the year 2013-14 THE INTERVENTION ACTIVITIES: PDS and Non PDS items NSSS started with objective the promotion of economic interest of its members in accordance with co-operative principle. It has core activity of dealing in PDS items like MMAY, APL rice, BPL rice, Mid-day meal, Sk oil (Kerosene) etc with the help of agent. As the local people had to travel 12-15 km for necessary goods, the intervention was call by members of the society, gingerly it ventures into Non PDS items like hardware (rod, cement, black ware, nail etc ) Fertilizer (urea, potash, Diammonium phosphate (DAP),superphosphate etc) consumer goods etc, as there are hardly any hardware stores operating in the nearby area. Fertilizer sold by the society is bought from Indian Farmers Fertilizers Co-operative Ltd. (IFFCL) at a price lower than the market value, which helps them to sale the items at a much cheaper rate than the market price that not only benefits the society but the farmer as well. Agricultural productivity critically depends on the quality and timely availability of key agricultural inputs such as seeds and fertilizers, as about 75 per cent of the state’s population is directly or indirectly dependent on agriculture, while about 69 per cent of the workforce in that area is actually engage in agricultural activities (Planning Commission report, 2002). The society believes in the philosophy of “More Sale, Less Profit” Table: 7: Price list of commodities as on the month of Feb,2016 Non PDS items Purchase Selling Market Price Price Price (Rs) (Rs) (Rs) Cement (Star) 379 390 395 Rod (Per quintal) 3600 3750 3800 Black ware (Per 60 65 70 quintal) Coil (Per Quintal) 3700 3850 3890 Nail (Per kg) 50 60 65 Urea (Per Quintal) 585 710 765 DAP (Per quintal) 1787 2050 2265 SSP (Per quintal) 575 660 690 Potash (Per quintal) 1600 1750 1825 Finance and Credit Activities Finance is considered as one of the development need of human being after food, health and education. Most of the developing countries adopted micro finance as a means to provide financial services to the people excluded by the banking sector. NSSS ventured into finance activities with a noble objective to bring the local people under the umbrella of financial system Page | 9
of the country. It started Deposit Mobilization Scheme and starts accepting savings deposits from the populace. Savings is the portion of income not spent on current expenditures. Because a person does not know what will happen in the future, money should be saved to pay for unexpected events or emergencies.It helps an individual or family become financially secure provides a fixed interest rate as per the rules and regulations of the society. Currently it is providing 5 % per year to the savings bank account holders. Although, ithas started directly accepting deposits from the public but lending functions yet to be initiated by the society. Table-8: Savings Bank Profile of the Society Type No. of Account Amount Deposited Personal account 878 44,08,934 Goot 42 5,42,638 School/Mandir 62 18,31,404 Total 982 67,82,976 Source: Annual report of NSS LTD. for the year 2014-15 `In many cases, it acts as a guarantor to the loan taken by the members of the society, assists the members in getting loans from the financial institutions. It can be termed as an intermediary in the credit process. The number of savings account reaches up to 982 till Dec, 2015. People in the area call it a Ghorua Bank (Home Bank). Transportation NSS ventured into transportation operation with an aim so that finished product of the farmers can be transported into various market place.Co-operative has a fleet of two trucks which transports the produce from villages to distant market place at an appropriate time. Employment Generation The society has been able to create both direct and indirect employment in that area. Table-9: Employment Designation No. of people Official Staff 9 Non Official staff 4 Agents 48 Wage Earner 20 Total 81 Consumer Service The society also runs a retail consumer stores for the benefits of members and non members. It sells daily use materials like mustard oil, consumer goods, photocopy and other edible and non edible items. Welfare Service The society also does welfare service on a mini scale like providing scholarships to student and sportsman, blankets to poor, etc using their owned fund.
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CRITICAL ANALYSIS OF THE INTERVENTION Table: 10Socio Economic variables of the respondents Variables
Categories
Gender
Male=1 Female=2 18-30=1 31-40=2 41-50=3 51-60=4 5000=1 5000-9999=2 10000-19999=3 20000-49999=4
