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 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

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

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

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

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)

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

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