Consumer's cooperatives in third world strategy for development

Caught in the vicious circle of inflation, scarcity of essential commodities, rampant malpractices like short-weighment, adulte ration and arbitrary hiking of prices in the market place, many third world countries have initiated steps to organise consumers' cooperatives. The primary objectives, while doing so are two fold; to ensure proper distribution of essential articles at fair prices on regular basis; and to create a socially informed in strument for effectively intervening in the market place in the interest of the consumer.

Many developing countries fear witness to this approach and the above expectations among their rulers. Though, it needs to be pointed out, that the performance of consumers' cooperatives, barring in a few isolated pockets, has been dismal, massive support and assistance from the governments notwith standing.

Several committees, working groups and experts have gone into the causes of their tardy performance and have suggested suitable remedial measures. These have been known for years now both to the cooperative leaders as well as the government administrators and planners. Only the will to implement these suggestions has been lacking.

The reasons for halting growth of the consumers, coope ratives in the third world countries are (i) non-viable units at the base level; (ii) dependence on rationed, controlled and low margin yielding commodities, (iii) limited assortment in shops; (iv) weak wholesale organisations; (v) dispersed deci sion making powers and lack of integration between the whole sale and the retail level units; (vi) shortage of essential com modities and failure of the procurement agencies to supply com modities regularly at fair prices, and (vii) lack of trained personnel, The remedies are equally well known, These are (1) opening of large retail outlets; (i) diversification and enlargement of assortment, (u) strengthening of the wholesale organisations and pooling of purchases (iv) setting up of own consumer industries and manufacturing units for mass consumption goods; (v) training of staff; (vi) creation of consultancy cells to improve the performance of the retail units; and (vii) profe ssionalisation of Management.

The fact however is, that the consumers' cooperatives can succeed only if certain pre-conditions obtain in the socio-econo mic environments. The first pre-condition relates to the effective intervention by the state by (a) direct and indirect participation in the production, procurement and distribution functions atleast in so far as essential commodities are concerned, (b) enactment of such legislations as may help in breaking monopolies, contro lling restrictive trade practices and protecting the interests of the consumer by strict enforcement of existing legislations like Anti-Adulteration Act, Weights and Measures Act etc. The second pre-condition relates to the development of an effective and wide spread consumer movement with a strong lobby and firm organisational base. Without these two essential pre conditions, it is un-likely that the consumers' cooperatives can ever make any dent in the market.

Another aspect that has to be kept in view is that the consumers' cooperatives can succeed only as a well integrated System. A system that includes production, wholesaling, ware housing and retailing and which is preceived as an alternative to the existing distribution system in the developing countries. It is not meant to be a substitute but a countervailing force against the private trade. The word alternative implies that the con sumers' cooperatives must aim at to capture an increasingly large share of the retail trade in different types of commodities (say 20%). The trading policies, the assortment policies and the pricing policies must all reflect and flow from this primary objective. This has not been the case so far. A cooperative shop is just another retailer in the market.