Kerala's Cooperative Societies: Establishment, Growth, and Implications

 

Kerala, a state on India's tropical Malabar Coast, has always held a unique sociopolitical space within the subcontinent. One significant aspect of its socioeconomic structure is the robust presence of cooperative societies. This blog delves into the establishment of these societies, their relationship with the people, and how they contrast with traditional banking. Additionally, we'll touch upon the issues of political corruption associated with some of these societies.

1. Establishment of Kerala's Cooperative Societies:

The cooperative movement in Kerala can be traced back to the early 20th century. Influenced by the global cooperative movement and aimed at curbing the exploitation by middlemen and money lenders, the state saw the establishment of its first cooperative society in 1914.

2. Relationship with the People of Kerala:

Empowerment and Financial Inclusion: The cooperative societies played a pivotal role in bringing financial services to the doorsteps of rural populations. They assisted farmers with better agricultural practices, loans, and marketing support.

Employment Generation: Many societies, especially the ones involved in dairy, handloom, and other small-scale sectors, have provided employment opportunities to locals, aiding in rural development.

Social Initiatives: Cooperative societies in Kerala have always been more than just about business. They have actively taken up educational and healthcare initiatives, thus directly impacting and uplifting the local communities.

3. Development and Growth:

The cooperative sector in Kerala has seen multifaceted growth. From agricultural credit societies, they diversified into sectors like banking, dairy, hand loom, housing, healthcare, and more. The Kerala State Cooperative Bank and the multitude of primary cooperative societies are testimony to the massive outreach and impact these institutions have created.

4. How Cooperative Societies Differ from Traditional Banks:

Decentralized Model: Cooperative societies function on a decentralized model where the members, who are also the customers, have a say in the management and decision-making processes.

Objective: Unlike commercial banks that operate for profit, cooperative societies are more inclined towards the welfare of their members. The profit is often redirected to the community, ensuring holistic growth.

Local Focus: Cooperative societies are deeply rooted in local communities, understanding their unique needs and challenges, and tailoring their services accordingly.

5. Political Corruption and Cooperative Societies:

The Intricate Relationship between Politics and Cooperative Societies in Kerala

Kerala's unique socio-political landscape, marked by active participation from its citizens in various movements and causes, has made the state a point of study for many political analysts. A significant intersection exists here between politics and cooperative societies.

1. Political Control over Cooperative Societies:

Major political parties, especially in regions like Kannur and Calicut, exert considerable influence over cooperative societies. It's often observed that these societies, which were primarily established to empower communities, have been used as tools to consolidate political power and influence.

2. The 'Communist Gramam' and its Dependency on Societies:

In areas like Kannur, the idea of a 'Communist Gramam' or 'Communist Village' is deeply intertwined with cooperative societies. A large part of the local population is either employed in these societies or depends on them for loans. The dependency on the cooperative for their livelihood makes them susceptible to the political influences governing these institutions.

3. The Dark Side of Dependency:

As mentioned, in places where the cooperative societies are deeply influenced by political parties, there is an unspoken obligation for the members to align with the political ideals of the controlling party. Deviation from these ideals or any form of dissent can have severe repercussions:

·         Job Security: Members or employees who voice opinions against the party line or act contrary to its interests might face threats of job termination.

·         Loan Repayment: Those who have taken loans from these societies might be pressurized to repay them immediately if they go against the wishes of the dominant political faction.

4. Implications of Such Control:

This interplay between politics and cooperative societies can lead to:

·         Suppression of Dissent: The fear of repercussions ensures that members do not voice dissenting opinions, leading to a suppression of free speech and democratic values.

·         Economic Pressures: The threat of immediate loan repayments can put undue economic pressure on families, leading to distress and financial instability.

·         Loss of Original Vision: The core principle behind the establishment of cooperative societies was community development and welfare. Political interference detracts from this noble cause, turning these institutions into tools for political gains.

Conclusion:

The dynamic between politics and cooperative societies in Kerala, especially in areas like Kannur and Calicut, raises crucial questions about the true essence of cooperatives and the role of politics in community welfare. While political parties might argue that their involvement ensures the smooth functioning and development of these societies, the inherent risks and potential misuse of power cannot be ignored. It's vital for the citizens, governing bodies, and civil society to recognize these challenges and work towards ensuring that the true spirit of cooperative societies remains untainted.

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