From UPSC perspective, the following things are important :
Prelims level : Creation of new ministry
Mains level : Cooperatives in India
The Union Government has created a new Ministry of Cooperation with an aim to strengthen the cooperative movement in the country.
With the creation of the Ministry of Cooperation, there will now be a total of 41 central government ministries. Several of these ministries also have separate departments and organizations under them.
What defines a Cooperative?
- A cooperative is “an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned enterprise”.
- Cooperatives are democratically owned by their members, with each member having one vote in electing the board of directors.
Ministry of Cooperation
- The ministry has been created for realizing the vision of ‘sahkar se samriddhi’ (through cooperation to prosperity).
- The NGO Sahakar Bharati, whose founder member Satish Kashinath Marathe is a part-time director on the RBI board, says it was the first to pitch for the creation of a separate ministry for the cooperative sector.
- It will provide a separate administrative, legal and policy framework for strengthening the cooperative movement in the country.
- It will help deepen cooperatives as a true people-based movement reaching up to the grassroots.
- The ministry will work to streamline processes for ‘ease of doing business’ for cooperatives and enable the development of multi-state cooperatives (MSCS).
Why need such Ministry?
- In our country, a Co-operative based economic development model is very relevant where each member works with a spirit of responsibility.
- This creation has signalled its deep commitment to community-based developmental partnerships.
Second new ministry created so far
- The Ministry of Cooperation is the second ministry to be created since 2019 after the Modi government came to power for the second time.
- Soon after taking charge, the government had created the Jal Shakti ministry.
- However, it was not altogether new as the Ministry of Cooperation.
- It was created by integrating two existing ministries dealing with water — Water Resources, River Development and Ganga Rejuvenation, and Drinking Water & Sanitation ministry.