Saving and Credit Cooperatives: A New Conceptual Approach

This paper identifies the problems faced by credit and saving cooperatives and ways to resolve them. As per the paper, the problems faced by the credit and saving cooperatives are:

• Lack of clarity on the nature and aim of the cooperative;
• Lack of clarity on structure and operating principles;
• Failure to initiate projects for increasing revenues.

Further, the paper discusses:

• Problems in understanding the nature of the credit and saving cooperative:
  • An imported product that is not designed for local requirements;
  • Interest accrual on savings at the end of the working year;
  • The principle of share capital in the credit and saving cooperative.
• The problem of surplus in the credit and saving cooperative;
• The factors to consider for fixing the remuneration of the manager;
• The credit and saving cooperative as a system for financing production:
  • Different forms of credit for agricultural production;
  • The essential triangle of production (ETP).

Finally, the paper suggests solutions for each of the above mentioned problems. The paper re-emphasizes the importance of the saving and credit cooperatives to the economic progress of nations throughout the world.