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Co-operatives & other systems of enterprises: Private, Trade Unionism; Public enterprises

By –Ansumala

Kumud Nirdosh

Sikandar

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A/c to J.S. Mill “co-operation transform human life from a conflict of class struggle for opposite interest to a fair rivalry in the pursuit of the common good of all”

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Cooperative is…

A/C to Dr. R. Phillips “The Co-operative association is an association of firms or households for business purposes and economic institution through which activity is conducted in the pursuit of the economic objectives.”

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Co-operative in the eyes of Law

The Indian Co-operative societies Act of 1912 Section 4(c) considers a co-operative society as,

“a society which has its object the promotion of the economic interests of its members in accordance with

co-operative principles.”

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Characteristics of Co-operative

1. It is an association of persons2. It is an undertaking;3. It is a voluntary organization;4. It is a democratic organization;5. The keynote is service and not profit;6. The basis is equality;7. It is based on proportionality or equity;8. It is a socio-economic movement9. At the service of both of the members and of

the community.

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0ther Forms of Enterprises

There are three basic forms of enterprises:

Public enterprises; Trade Unionism enterprises; and Private Enterprises.

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The private enterprise is based on the philosophy of capitalism; the public enterprise is based on the philosophy of socialism while trade unionism is based on the theory of coercion.

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Public Enterprise

Socialism is a socio-economic system in which material means of production are owned by public authority or the community and operates not for profit but for the service of the community.

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The Essential features of Public Enterprises

1. All means of production and distribution are to be owned by the state.

2. No private enterprise is permitted.3. The state takes the responsibility of

employment.4. Central planning is the chief instrument of

bringing about socialism.5. All social services like education, medical

facilities and other welfare services get top priority and become responsibility of the state.

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Cont..

6. Each individual gets fixed wages.

7. Profits go to the state.

8. Remuneration is made on the basis of each according to his ability and each according to his need.

The keynote of public enterprise is to tender social service and not to satisfy individual greed.

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Trade Unionism Enterprise

Trade unions are an essential part of the modern industrial system. They are the organized associations of workers for the promotion of their common interests.

The term trade union refers to the unification of labour for purposes of collective bargaining with the employers with a view to gaining some economic advantages.

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Cont..

Trade unions, “are the associations of employed persons for collective bargaining about their conditions of employment and for the provision of benefits, legal defense, and the promotion of their members’ interests by bringing pressure to bear on governments and parliaments and in certain cases by political action.”

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The Essential features of Trade Union Enterprise

1. Workers have the right to organize a struggle directed towards the removal of their grievances by the employers and achieving better conditions of work.

2. Trade unions are associations which fight for the cause of the workers.

3. Associations of individuals who are economically weak and need to be uplifted.

4. Trade union leaders coerce the employers to accede to their demands.

5. Employer-Employee relationship.

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Private Enterprise

Capitalism is a system of economic organization in which business and industries are organized and carried on for profit by private enterprises with a minimum of government interference.

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The Essential features of Private Enterprises

1. Individualism and personal gain as primary motives.

2. The private ownership of the means of production.

3. Private property and inheritance.4. Competition in the market as the regulator of

price and business activity.5. Freedom of contract and enterprise.6. Freedom from state interference.7. Consumer’s sovereignty.8. Limited role of government.

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Conclusion

Co-operation as an instrument of economic development of the disadvantaged, particularly in the Exploited persons emphasis during the successive plans.

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Thank You