What Is a Cooperative? Meaning, Types & Benefits in Nepal
A cooperative is one of the most important pillars of Nepal’s economic and social development. From saving and credit groups to agriculture and dairy cooperatives, millions of Nepalis depend on cooperatives for financial inclusion, employment, and community growth.
What Is a Cooperative? (Simple Meaning)
A cooperative is a member-owned and member-controlled organization formed by people with common economic, social, or cultural needs. Members voluntarily come together to pool resources, share risks, and benefit collectively.
Unlike private companies, cooperatives work on the principle of “one member, one vote”, not based on how much money someone invests.
Simple definition:
A cooperative is an organization owned and managed by its members for their mutual benefit.
Meaning of Cooperative in Nepal
In Nepal, cooperatives are recognized as a key economic sector, alongside the public and private sectors. The Constitution of Nepal acknowledges cooperatives as a foundation for inclusive and sustainable development.
Cooperatives in Nepal operate under:
-
Cooperative Act, 2017 (2074 BS)
-
Cooperative Rules, 2018
-
Supervision by federal, provincial, and local authorities
They play a vital role in:
-
Rural development
-
Poverty reduction
-
Women empowerment
-
Financial access for underserved communities
Core Principles of Cooperatives
Cooperatives in Nepal follow internationally recognized principles:
-
Voluntary and Open Membership
-
Democratic Member Control
-
Member Economic Participation
-
Autonomy and Independence
-
Education, Training, and Information
-
Cooperation among Cooperatives
-
Concern for Community
These principles ensure transparency, trust, and long-term sustainability.
Cooperative vs Bank: Key Difference (Brief)
| Feature | Cooperative | Bank |
|---|---|---|
| Ownership | Members | Shareholders |
| Voting Rights | One member, one vote | Based on shares |
| Primary Goal | Member benefit | Profit |
| Focus | Community | Commercial |