International cooperative Day

Background:
Co-operative is a movement, a movement of participatory progress upon economic empowerment, and every year on July 6th, the world community commemorates this day. This day is the marking of the first Saturday of July since 1923.

Since 1923, the International Cooperative Organization has been celebrating Cooperative Day in July every year. The United Nations has also adopted the day since 1995. In Nepal too, in the last two decades, there has been a growing trend of taking loans in installments, forming groups at the community level, and doing business, including cooperative or microfinance and credit flow without any collaterals. From small businessmen to big corporations, they are involved in saving a certain amount of money and borrowing a large amount of money by paying small installments regularly. Cooperative refers to financial services or assistance provided to individuals or community groups who are financially marginalized, low-income, and do not have access or have less access to other financial services.

The purpose of co-operative is insurance for savings, borrowing, and risk reduction. Compared to other financial transactions, cooperative loans can be relatively expensive as loans have to be disbursed at the community level and mostly without collaterals. Despite this, many small farmers or small traders are a part of co-operatives as the service is simple, easy, and provided in the community.

Definition of Co-operative as per Co-operative Act
According to the preamble of Nepal's Cooperative Act 2048, 'the country's farmers, Kaligad, low capital and low income class, laborers, landless and unemployed or social workers can form various types of cooperative organizations and associations on the basis of mutual support and cooperation for their economic and social development. And since it is desirable to make arrangements related to operation, the law has been made.Based on the above meaning and definition, a cooperative is a united effort for economic and social upliftment through mutual support and democratic control by people with similar desires, aspirations and conditions.

Initial co-operative days in Nepal
The initial credit for cooperatives or so-called microfinance in Nepal goes to the Rural Development Bank of Eastern Nepal (Gramin Bikash Bank), which has been delivering cooperative facilities in Eastern Nepal since the mid-1990s. This bank first created a women's group, made them literate, and empowered them enough to aspire for a loan with a specific purpose of doing a certain business.

2024 ThemeThis year on July 6, cooperatives around the world will celebrate the International Day of Cooperatives with the theme "Cooperatives Build a Better Future for All."

-Suyog Dhakal