While celebrating the 68th National Cooperative Day, there is a need to seriously discuss the achievements, challenges and future strategies of this sector. In the journey of the past seven decades, the cooperative sector has contributed significantly to the rural and urban economy of Nepal.

The role of cooperatives in agriculture, finance, production, job creation, expansion of financial access and socio-economic empowerment is significant. However, in recent years, financial irregularities, weak administrative structure, lack of regulation and behavior contrary to the basic principles and values ​​of cooperatives have started to raise questions on the cooperative campaign itself. Some have even raised the debate that 'has the justification of cooperative campaign in Nepal ended?'. 

However, the rationale of the cooperative has not ended, rather it has been seen that it needs to be strengthened according to the new era. Due to the recent financial crisis and challenges in the banking system, the need to facilitate the financial access of common citizens is increasing. In this situation, it seems inevitable to make the government-cooperative partnership more effective in order to strengthen the cooperative sector .

To make the regulation of cooperatives transparent, responsive and effective, the government should focus on policy reform and developing a strong regulatory system. It is also necessary to pay as much attention to its promotion. That is why the slogan of the 68th Cooperative Day has also been decided: Decent Cooperative: Samunnat Samaj.

A cooperative that builds a culture of transparency and accountability by faithfully following the principles, values, and legal system while focusing on the interests of its members can be called a dignified cooperative. This slogan has been decided for the reason that the future cooperatives should be dignified and such culture should be created in the cooperative campaign.

It means that society can be freed from the threat of scarcity, poverty, violence, oppression and crime only if cooperatives are decent and a better society can be built. The next goal of the campaign is to solve the challenges seen in the cooperative and redefine its role to contribute to a better society and sustainable development. 

In view of Nepal's current economic situation, budget deficit, increasing expenses and challenges of resource management, it has become inevitable to draw the attention of the state and campaign towards making the role of the cooperative sector effective . It is necessary to encourage cooperatives to create jobs by involving them in the productive and service sectors without limiting them only as financial institutions. By promoting small, small and medium industries through

cooperatives and connecting them to indigenous production, the concept of 'first choice product of Nepal' should be carried forward as a campaign. Also, by making maximum use of digital technology, the transparency and credibility of cooperatives should be enhanced and distortions and discrepancies seen in it should be eradicated.

In order to strengthen the cooperative movement in this difficult time, it is necessary to strengthen policy advocacy by maintaining unity among campaigns. The government should address the current need to protect cooperative principles and values, adopt a modern management system, create cooperative-friendly policies in collaboration with the government, and make members aware through financial literacy.

If the cooperative sector is promoted effectively, Nepal's economy will be able to take a significant leap towards self-sufficiency through cooperatives. Population growth in hilly and mountainous districts has been negative. If cooperatives can be promoted as a strong economic model to create service facilities and opportunities in the mountains and hills, the deserted villages can be used as a source of production and income. 

Nepal's economic crisis and the role of the cooperative sector

Nepal's economy is now in serious trouble. Out of the budget of 18 and a half billion, 15 billion rupees are being spent to fulfill mandatory obligations. In the situation where the liability of expenditure is increasing more than the income, Finance Minister Bishnu Paudel has accepted the fact that he has to take a loan and take care of the staff in this situation, only  Not only is it an indicator of failed budget management, but it is also a sign that the overall economic scenario of the country is falling apart . Meanwhile, the future of the cooperative sector, which is providing financial access to millions of citizens, is becoming uncertain from a micro level.

The government's laxity, the inaction of the regulatory institutions and the lack of a solid strategy for cooperative reform, this sector was getting weaker . Now, the government has created a National Regulatory Authority to address the problem. It will be developed as another government base and it is sure to become another battleground for the cooperative movement.

Not realizing the necessary discussion and interaction with the stakeholders while deciding some policy rules is a shameful issue in the democratic system. The problems that have appeared in the cooperative sector in recent years are not limited to internal weaknesses or the selfishness of some individuals. It seems that the misunderstanding and wrong administrative process of the policy-making level bodies, regulatory institutions and bureaucracy are creating more and more problems. 

The government should make clear and simple policies and rules to strengthen the cooperative campaign. Bureaucracy has shown a tendency to create unnecessary complications rather than helping cooperatives. Seeing cooperatives as a source of financial irregularities or as a competitive challenger to the banking system has had a negative impact on policy making. At a time when the cooperative sector needs to be strengthened, there is a situation where mutual complexity has been created by only increasing the regulatory body.

When the cooperative sector is weak, its impact is not limited to cooperatives. It can devastate the entire economy. Most of the people belonging to cooperatives are middle class. When cooperatives fail, they lose access to finance, limit investment opportunities, and weaken socio-economic security. Cooperatives are the main means of financial inclusion in rural areas.

If cooperatives are weak, small farmers, laborers, women entrepreneurs and micro entrepreneurs are deprived of credit facilities and investment opportunities . When the cooperatives are weak, the financial resources can be used only by a limited class. Is this the socialism-oriented economy we are looking for?

Decreasing access to cooperatives stops the economic progress of the poor and middle class, which increases the inequality gap in society and weakens the country's productivity, job creation, financial stability and social prosperity . Which directly affects the government revenue, private sector, banking system.

The idea of ​​viewing the cooperative sector as a second-rate institution compared to financial institutions or limiting it to only a 'developmental financial model' is fatal for all. Since it affects not only cooperatives but also the economy as a whole, if someone thinks that 'banking sector will be strengthened by weakening cooperatives' then it will be completely wrong .

When the cooperative sector is weak, the banking system can also be affected in the long term because thousands of citizens have access to finance through cooperatives. When the country is weak, the leader, bureaucracy, private sector, media industry, all sectors are weak . If you sit in a boat and play the game of drowning only one area, eventually everyone will drown . So let's get back up and stop spitting . 

There are more than 30,000 cooperative organizations operating in Nepal, which have provided financial access by connecting more than 7.3 million Nepalis and providing direct employment to about 1 million people. It is estimated that the overall contribution of cooperatives to Nepal's gross domestic product (GDP) is above 5 percent. However, although the main objective of cooperatives is financial inclusion and economic empowerment, the government seems to have adopted a policy of discouraging cooperatives rather than encouraging them.

The trend of unnecessary restrictions on investment expansion of cooperatives is shrinking this sector . It is wrong to think that cooperatives should be limited only to savings and loans. Due to that belief, this accident happened in the cooperative today. If a comfortable environment can be created to mobilize cooperatives in industry, agriculture, production and services, then it can create the basis of economic revolution .

If not, why are the big countries like India, China, America etc. promoting the cooperative sector ? In India, Prime Minister Narendra Modi is widely promoting the cooperative sector with the slogan 'Prosperity through cooperation'.

is planning to start cooperative courses in schools and colleges and mobilize future generations through this model of collective enterprise.  America, Italy, China etc. are using cooperatives as a powerful means for rural development and economic prosperity. The role of cooperatives in Italy's tourism industry is remarkable . 

There are many successful examples of ethical cooperative management in Nepal. If the government's attention was focused on exposing and promoting it, it would have become widespread . Nepal's small farmer cooperatives are a model.

has played an important role in connecting the produce of local farmers with the market . The standard of living in the rural areas has been transformed due to the cooperatives conducting financial literacy programs and providing financial services based on good governance. 

International Year of Cooperatives 2025 and the Future of Cooperatives in Nepal

The United Nations General Assembly celebrated 2012 as the 'International Year of Cooperatives' for the first time. Based on its effectiveness, 2025 has again been declared as the International Year of Cooperatives to further strengthen the contribution of cooperatives to the Sustainable Development Goals. The International Year of Cooperatives is being celebrated in almost all countries of the world, including Nepal, with the slogan that cooperation creates a beautiful world. The announcement was made as an opportunity to highlight the global impact of the

cooperative business model. A strong platform for policy advocacy is seen as an opportunity to create international pressure to create cooperative-friendly policies .