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COOPERATIVE LEGISLATION IN CAMBODIA

COOPERATIVE LEGISLATION IN CAMBODIA. A CASE STUDY. BY B.D.SHARMA, SENIOR CONSULTANT ICA DOMUS TRUST, NEW DELHI, INDIA. SOCIO – ECONOMIC FEATURES. AGRICULTURAL COUNTRY : LARGE AGRICULTURAL PLAINS SURROUNDED BY WOODED MOUNTAINS AGRICULTURE EMPLOYS 75% OF LABOUR FORCE

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COOPERATIVE LEGISLATION IN CAMBODIA

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  1. COOPERATIVE LEGISLATIONINCAMBODIA A CASE STUDY BYB.D.SHARMA, SENIOR CONSULTANT ICA DOMUS TRUST, NEW DELHI, INDIA

  2. SOCIO – ECONOMIC FEATURES • AGRICULTURAL COUNTRY : LARGE AGRICULTURAL PLAINS SURROUNDED BY WOODED MOUNTAINS • AGRICULTURE EMPLOYS 75% OF LABOUR FORCE • SHARE OF AGRICULTURE IN GDP – 41% • SHARE OF INDUSTRY IN GDP – 17% • TOTAL LAND AREA – 181035 SQ KM • TOTAL POPULATION – 12.5 MILLION • 90% KHMER; 5% VIETNAMESE; 1% CHENESE & 4% OTHERS • 36% POPULATION BELOW POVERTY LINE

  3. POLITICAL SITUATION • TWO DECADES OF TURMOIL • 1993 – CONSTITUTIONAL MONARARCHY WAS ESTABLISHED • PRINCIPAL POLITICAL PARTIES • CAMBODIAN PEOPLES PARTY (CPP) • FUNCIPEC

  4. ECONOMIC DEVELOPMENT POLICY • FIRST SOCIO – ECONOMIC DEVELOPMENT PLAN (1997-2000) • ESTABLISHED PRIORITIES OF DEVELOPMENT • INCREASE AGRICULTURAL PRODUCTION • STRENGTHEN BASIC INFRASTRUCTURE • DEVELOP POLITICAL AND ECONOMIC INTERNATIONAL RELATIONS • FORMULTED DEVELOPMENT VISION “THE DEVELOPMENT VISION OF ROYAL GOVT. IS TO HAVE SOCIALLY COHESIVE, EDUCATIONALLY ADVANCED AND CULTURALLY VIBRANT CAMBODIA WITHOUT POVERTY, ILLITERACY AND DISEASE” • SECOND SOCIO-ECONOMIC DEVELOPMENT PLAN (2001-2005) – STRATEGIC PRIORITIES • SUSTAINABLE ECONOMIC GROWTH WITH EQUITY WITH LEADING ROLE TO PRIVATE SECTOR • IMPROVED ACCESS OF THE POOR TO EDUCATION, HEALTH, WATER, POWER, CREDIT, MARKET, TECHNOLOGY • SUSTAINABLE USE AND MANAGEMENT OF NATURAL RESOURCES & ENVIRONMENT • IMPROVED GOVERNANCE SYSTEM & ENVIRONMENT

  5. HISTORY OF COOPERATIVE MOVEMENT IN CAMBODIA • ESTABLISHMENT OF OFFICE OF ROYAL COOPS IN 1956 • BY 1966 – 512 COOPS IN RURAL AREAS • 1957 -79 COOPS TRANSFORMED INTO ‘COLLECTIVES’ ON CHINESE MODEL • 1979 -1989 SOLIDATIRY GROUPS FOR GROUP FARMING • 1993 PRIVATISATION OF LAND • 1999 GOVT TAKES DECISION TO PROMOTE COOPS IN AGRICULTURE SECTOR • 2001 AGRICULTURAL DEVELOPMENT COMMUNITY LAW • FARMERS’ ORGANISATIONS WITH OPTIONS TO CONVERT INTO COOPS • 2001 ROYAL DECREE ON AGRICULTURAL COOPS ISSUED • 2003 PROCLAIMATION NO 547 SIGNED BY MINISTER OF AGRICULTURE ON ORGANISATION AND WORKING OF COOPS

  6. IMPORTANT FEATURES OF ROYAL DECREE ON COOPS • COVERS THREE KINDS OF AGRICULTURAL COOPS • AGRICULTURAL COOPERATIVE • UNION OF AGRICULTURAL COOPERATIVES • PRE-AGRICULTURAL COOPERATIVE • DEFINITION OF AGRICULTURAL COOPERATIVE • “PRIVATE LEGAL ENTITY WHOSE CAPITAL ARE VARIABLE AND WHICH HAS FULL LEGAL COMPETENCE, SELF FINANCING, SELF CONTROL” • “AGRICULTURAL COOPERATIVE IS A COMMERCIAL ENTERPRISE, WHICH IS DEMOCRATICALLY MANAGED BY ITS MEMBERS….” • MINIMUM MEMBERSHIP : 30 PERSONS WHOSE PRIME BUSINESS IS AGRICULTURE OR RELATED SERVICES • PARTICULARS OF BYE LAWS SPECIFIED IN THE ROYAL DECREE (ARTICLE 4) • PROVISION TO DEAL WITH DELIQUENT MEMBER (ARTICLE 10) • PROVISIONS REGRDING OBLIGATIONS: AND RIGHTS OF AGRICULTURAL COOPS AND MEMBERS (ARTICLES 6 TO 9) • ROLE OF VARIOUS MANAGEMENT ORGANS OF COOPS • GENERAL MEETING (ART. 11, 12, 13) • BOARD OF DIRECTORS (ART. 14 & 15)

  7. IMPORTANT FEATURES OF ROYAL DECREE ON COOPS • SELF REGULATION • CREATION OF BOARD OF AUDITORS (ART. 17) • JOINT RESPONSIBILITY OF BOARD AND MANAGER FOR ANY ACT OF OMISSION AND COMMISSION (ART. 16) • VOLUNTARY DISSOLUTION, MERGER & DIVISION OF COOP (ART. 24, 25, 26, 27) • DISPUTE SETTLEMENT • CREATION OF ARBITRATION COMMITTEE BY MINISTER OF AGR, FORESTRY & FISHERY (ART. 28) • CAPITALISATION OF COOPS (ART 20, 21, 22) • CREATION OF FUNDS • RESERVE FUND (ART. 23) • CONTRIBUTION OF 20% OF SURPLUS AFTER TAX PAYMENT • PROFITS FROM BUSINESS TRANSACTIONS WITH NON – MEMBERS • FUND FOR TRAINING & EDUCATION BY CONTRIBUTING 3% OF NET SURPLUS • UNION OF AGRICULTURAL COOPS • ANY TWO OR MORE COOPS: CAN FORM UNION (ART. 29) • FUNCTIONS OF UNION (ART. 30) • PRE-AGRICULTURAL COOPS (ART 31 TO 48) • CONVERSION OF PRE-AGRICULTURAL COOPS INTO FULL AGRICULTURAL COOPS AFTER 3 YEARS (ART 49) • PRE-AGRICULTURAL COOPS CANNOT EXIST FOR MORE THAN 3 YEARS • ENABLING PROVISION FOR FARMERS’ ORGANISATIONS TO BECOME PRE-AGRICULTURAL COOPS OR AGRICULTURAL COOPS

  8. Thank You

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