Policy Analysis in the Parliamentary Finance Committee

Rasani_Shrestha

Author: Rasani Shrestha, Daayitwa Winter Fellow 2015 under Hon Uday Shumsher Rana, Member of Legislature Parliament of Nepal

There are more than 31000 cooperatives in Nepal which have employed more than
50,000 people. With the increase in employment opportunities and its number, the need for
modifications in the Cooperatives Act 2048 has been recognized to further enhance the potential
of cooperatives towards economic development of Nepal. Thus, to address the issues that have
emerged until now and strengthen the cooperatives sector, the Cooperatives Act 2048 is in
process of Amendment. This policy analysis paper aims to assist in the amendment process. The
analysis is focused on four issues: Cooperative Bank, Membership in Primary Cooperatives,
Debt. Recovery Tribunal, and Jurisdiction of Cooperatives. Desk and field research were carried
out to gather information about finance and goods based cooperatives of Lalitpur Sub-
Metropolitan City and Chapagaun Village Development Committee. The paper proposes
recommendations to maintain decentralization, transparency of membership mechanism,
compliance with comprehensive directives, and options for expansion of jurisdiction. Moreover,
the paper has highlighted the need for proper representation of goods based cooperatives, which
was alienated in the Cooperatives Act 2048 and the new Ordinance of Cooperatives Act 2071.

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