In this context, Crédit Agricole was established 1894 as an agricultural cooperative-based financial institution. Later, it expanded its operations across France as an agricultural cooperative financial institution. Gradually, its scope of work grew, and by 1976, it became a full-fledged banking corporation. Today, Crédit Agricole has transformed into the largest cooperative-based corporation in the world. According to the World Cooperative Monitor 2023, its annual turnover 2021 was over 117 billion dollars.
The world's second-largest cooperative-based corporation is Germany-based REWE Group. Founded in 1927, the group now operates over 3,300 supermarkets. Starting with just 17 members, the organization employed around 258,000 people by 2021. By 2023, this number exceeded 390,000. 2021 the group's total annual turnover was over 82 billion dollars.
Cooperatives are one of the major strengths of Brazil's economy. Cooperative-based initiatives play a significant role in the country's agriculture, food security, and capital organization. Brazil has the highest number of cooperatives in the world. According to the International Cooperative Alliance, in 2023, South Korea had the highest annual turnover in the agricultural sector. Spain led in the industrial sector. Germany topped in retail and insurance. Brazil is leading in the education, health, and social sectors.
In Japan, South Korea, and the United States, cooperatives have played a major role in developing agriculture and small-scale industries. These countries have seen significant changes in their agricultural sectors based on mutual assistance and financing models. The cooperative model also contributes to the growth of medium to large industries. Even today, many century-old institutions in developed countries, considered successful ventures, began as cooperatives.
The initiative to establish cooperative-based financial, market marketing, and agricultural product production institutions in Bangladesh was taken even before independence. However, few examples of success in cooperative-based models in the country still exist. Instead, the areas where such initiatives could have grown have gradually shrunk. Although there are many small cooperatives based on markets or small businesses, no effective steps have been taken to use them for building economic strength and foundations.
Analysts say that the concept of cooperatives has not advanced much in Bangladesh. There is also a lack of innovation or efforts to find new approaches. There are also management weaknesses. Moreover, the country’s existing legal framework is a major obstacle to expanding cooperative-based initiatives. There is also a lack of incentives in terms of policies.
In the 1960s, under the leadership of Dr. Akhter Hameed Khan, a group of researchers established the Bangladesh Academy for Rural Development (BARD). Through various trials and experiments, some cooperative-based models suitable for rural development were developed in the country. BARD initially took an integrated approach with nine priorities: capital formation, organization building, health, education, and employment. Experts and development workers from home and abroad were eager to come to Cumilla to learn about the ' BARD Model.'
After the country’s independence, cooperative ownership was given importance and recognized by including it in Article 13 of the Constitution. BARD operates as an autonomous institution under the Rural Development and Cooperatives Division of the Ministry of Local Government, Rural Development, and Cooperatives. In 1986, BARD received the Independence Award for its special contribution to rural development. However, despite the BARD model being available, no strong cooperative institutions have been established in the country due to a lack of proper government support and sponsorship.
Cooperative officials also admit that no further work has been done to promote the concept of cooperatives since then. No new innovative ideas were developed.
In this regard, Md Shariful Islam, registrar, and director-general of the Department of Cooperatives, told the Bonik Barta, “BARD was an idea. However, no further efforts were made to take it forward. There was no attempt to innovate from this. That’s why this idea hasn’t been fully realized. Moreover, many people don’t want to follow the rules here. As a result, people lose interest. There are also management weaknesses.”
According to the Department of Cooperatives, more than 182,000 cooperatives are currently in the country. These cooperatives involve 12.4 million people, meaning one in every 15 is involved in some form of cooperative. However, the total savings deposits in these cooperatives are only BDT 14.84 billion. The combined total of savings deposits across all cooperatives is BDT 201.34 billion.
Regarding the challenges cooperatives face at the grassroots level, AKM Masud Ali, executive director of the development organization Incidin Bangladesh, told Bonik Barta, “There needs to be an easy registration process for organizations of poor people. Otherwise, influential people end up taking leadership. Cooperatives will not succeed if they are not considered part of the economy. We must build cooperative structures for production, marketing, and transportation. Cooperatives are also far behind in skill development. If ownership equality is not ensured in a cooperative as an egalitarian organization, it will fail.”
Afzal Hossain, Executive Director of the Rajshahi-based organization Rulfao, believes that loan assistance is necessary to bring marginalized people into the cooperative practice. He says, “They have limited capital, so they are not taken seriously when they visit government offices. A cooperative cannot be formed if there are fewer than 20 people. Therefore, the law needs to be made more accessible.”
The only successful cooperative in the country is Milk Vita, and there are few ideal examples of cooperatives. The organization works solely with dairy products. However, its operations are not expanding, and the size or scope of the business is not increasing. In the fiscal year 2022-23, the organization’s product sales amounted to only BDT 2.21 billion.
The cooperative organization, Association for Land Reform and Development (ALRD), operates in 12 country districts. There are 2,363 members involved in this cooperative. Shamsul Huda, ALRD's Executive Director, told Bonik Barta, “From the beginning, there has been neglect of cooperatives here. The existing legal framework discourages cooperatives. Through control and regulatory interference, officials are unfairly benefiting. As a result, cooperatives have not had much impact on the economy over the last half-century. However, cooperatives have been successful in many Asian countries due to their cooperative-friendly legal frameworks. Strengthening cooperatives is the only alternative to reduce urban poverty. If banks prioritize cooperatives in providing agricultural loans, it will be an incentive. Cooperatives have now become essential in rural areas.”