Principles of Cooperation - ICA 1934


ICA 1934 Principles
The cooperative movement was spread out to various countries like Germany, Denmark, Canada, Sweden, China, Japan, Russia, Israel, India and so on.  The application of Rochdale pioneers’ principles as such in all types of cooperatives became difficult.  Different countries were felt the adoption of the principles of cooperation difficult task.  With the establishment of socialistic state called Russia, the co-operators of the world began to think of cooperatives on ideology ground.  Similarly, advanced technology was influencing the producers and methods of organisation in the cooperatives.  These two factors namely ideological and technological necessitated the co-operators to reformulate the cooperative principles of Rochdale pioneers.
In 1934, the International Cooperative Alliance was asked to appoint the special committee to examine and formulate the principles of cooperation.  After a thorough analysis, the committee submitted the report in 1937 with the title on ‘The present application of Rochdale Principles of Cooperation’.  The committee divided principles of Rochdale Pioneers into two categories viz., essential and non-essential principles.
Essential principles:
1.    Open membership
2.    Democratic control
3.    Limited interest on share capital
4.    Patronage dividend
Non-Essential principles:
1.    Cash trading
2.    Education of members
3.    Political and religious neutrality

The 8th principle viz., supply of pure and unadulterated goods was omitted. The main reason was it can be applied only in consumers cooperatives. Many countries enacted separate law to protect the interest of the people from the unfair practices such as under weighment, higher price, adulteration, and others.

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