COOPERATIVE LEGISLATION IN LAOS PDR BY B.D.SHARMA, SENIOR CONSULTANT ICA DOMUS TRUST, NEW DELHI, INDIA

SOCIO – ECONOMIC FEATURES OF LAOS PDR LOCATED IN CENTRE OF INDOCHINA PENINSULA LOCATED IN CENTRE OF INDOCHINA PENINSULA LAND LOCKED AND MOUNTANEOUS LAND LOCKED AND MOUNTANEOUS TOTAL AREA : 236,800 SQ KMS : ONLY 20% CULTIVABLE: 47% FOREST COVER TOTAL AREA : 236,800 SQ KMS : ONLY 20% CULTIVABLE: 47% FOREST COVER CLASSIFIED AS LEAST DEVELOPED COUNTRY CLASSIFIED AS LEAST DEVELOPED COUNTRY –46.1% OF POPULATION BELOW POVERTY LINE –90% OF THE POOR LIVE IN RURAL AREAS –POOR INFRASTRUCTURE –LIFE EXPECTANCY – 53 YEARS; HOWEVER ADULT LITERARCY RATE : 53% –POOR HEALTH FACILITIES: 90% POPULATION LACK ACCESS TO BASIC HEALTH –LOW DENSITY OF POPULATION: 19 PERSONS PER SQUARE KM 92% OF POPULATION ARE RURAL : 67% OF THEM ARE ENGAGED IN SUBSISTENCE AGRICULTURE OUTSIDE MARKET MECHANISM 92% OF POPULATION ARE RURAL : 67% OF THEM ARE ENGAGED IN SUBSISTENCE AGRICULTURE OUTSIDE MARKET MECHANISM SHARE OF AGRICULTURE IN GDP – 50% SHARE OF AGRICULTURE IN GDP – 50% SHARE OF INDUSTRIAL SECTOR IN GDP – 22% SHARE OF INDUSTRIAL SECTOR IN GDP – 22% SHARE OF SERVICE SECTOR IN GDP – 27% SHARE OF SERVICE SECTOR IN GDP – 27%

ECONOMIC DEVELOPMENT POLICY LAOS PDR WAS ESTABLISHED IN 1975 LAOS PDR WAS ESTABLISHED IN 1975 ADOPTED CENTRALISED ECONOIC PLANNING WITH DOMINANCE OF STATE SECTOR ADOPTED CENTRALISED ECONOIC PLANNING WITH DOMINANCE OF STATE SECTOR INTRODUCED NEW ECONOMIC MECHANISM (NEM) I.E MARKET ORIENTED ECONOMY WITH 5 ECONOMIC SECTORS : STATE; PRIVATE; MIXED; SMALL FARMERS’ MANAGEMENT; AND JOINT VENTURE IN 1986 INTRODUCED NEW ECONOMIC MECHANISM (NEM) I.E MARKET ORIENTED ECONOMY WITH 5 ECONOMIC SECTORS : STATE; PRIVATE; MIXED; SMALL FARMERS’ MANAGEMENT; AND JOINT VENTURE IN 1986 EIGHT MAIN PRIORITIES OF ECONOMIC DEVELOPMENT EIGHT MAIN PRIORITIES OF ECONOMIC DEVELOPMENT i.INCREASE IN FOOD PRODUCTION ii.PRODUCTION OF CASH CROPS iii.REDUCTION IN SHIFTING CULTIVATION iv.DEVELOPMENT OF INFRASTRUCTURE v.DEVELOPMENT OF HUMAN RESOURCES vi.RURAL DEVELOPMENT ; FOCAL SITES vii.INTERNATIONAL BUSINESS viii.EXPANSION OF SERVICE SECTORS

HISTORY OF COOPERATIVE DEVELOPMENT THERE USED TO BE SOME KIND OF COOPS BEFORE 1975 THERE USED TO BE SOME KIND OF COOPS BEFORE 1975 IN 1983 GOVT FORMALLY ESTABLISHED AGRICULTURAL COOPS IN 1983 GOVT FORMALLY ESTABLISHED AGRICULTURAL COOPS BY THE END OF 1984 ABOUT 3000 AGRICULTURAL COOPS ESTABLISHED COVERING MORE THAN 66% OF FARMERS BY THE END OF 1984 ABOUT 3000 AGRICULTURAL COOPS ESTABLISHED COVERING MORE THAN 66% OF FARMERS IN 1986 COOPS WERE ABANDONED AND REPLACED BY “HOUSE HOLD ECONOMIC PRODUCTION UNITS” IN 1986 COOPS WERE ABANDONED AND REPLACED BY “HOUSE HOLD ECONOMIC PRODUCTION UNITS” THESE COOPS FAILED DUE TO: THESE COOPS FAILED DUE TO: i.TOP DOWN AUTHORITATIVE APPROACH ii.LACK OF PROPER GROUND WORK iii.INTERFERENCE OF GOVT & CORRUPTION iv.LACK OF UNDERSTANDING OF COOPS AT THE LEVEL OF FARMERS v.LACK OF COOPS FINANCE SYSTEM

PRESENT SITUATION ABSENCE OF ANY COOPERATIVE POLICY & LEGISLATION ABSENCE OF ANY COOPERATIVE POLICY & LEGISLATION EXISTENCE OF COOPERATIVE LIKE ORGANISATIONS EXISTENCE OF COOPERATIVE LIKE ORGANISATIONS i.WATER USERS’ GROUPS/WATER USERS’ ASSOCIATIONS ii.FARMERS’ PRODUCTION GROUPS

FUTURE PERSPECTIVE ICA-AP INTERVENTIONS ICA-AP INTERVENTIONS NEED FOR INTRODUCTION OF COOPERATIVE POLICY FOR DEFINING ROLE OF COOPS IN DIFERENT ECONOMIC SECTORS NEED FOR INTRODUCTION OF COOPERATIVE POLICY FOR DEFINING ROLE OF COOPS IN DIFERENT ECONOMIC SECTORS THE ROLE OF GOVT IN FOLLOWING AREAS: THE ROLE OF GOVT IN FOLLOWING AREAS: i.PROMOTIONAL ii.TECHNICAL iii.FINANCIAL iv.ADMINISTRATION v.FORMULATION OF ENABLING COOP LAW vi.OVER SEA DEVELOPMENT ASSISTANCE

FRAMEWORK FOR COOPERATIVE LAW THERE SHOULD BE ONLY ONE GENERAL COOPERATIVE LAW FOR ALL TYPES OF COOPERATIVES THERE SHOULD BE ONLY ONE GENERAL COOPERATIVE LAW FOR ALL TYPES OF COOPERATIVES COOPERATIVE LAW SHOULD MAKE PROVISIONS FOR COOPERATIVE VALUES AND PRINCIPLES COOPERATIVE LAW SHOULD MAKE PROVISIONS FOR COOPERATIVE VALUES AND PRINCIPLES TO BEGIN WITH A DECREE ON COOPERATIVES MAY BE FORMULATED. THIS DECREE CAN BE EVOLVED INTO FULL-FLEDGED COOPERATIVE LAW IN DUE COURSE TO BEGIN WITH A DECREE ON COOPERATIVES MAY BE FORMULATED. THIS DECREE CAN BE EVOLVED INTO FULL-FLEDGED COOPERATIVE LAW IN DUE COURSE THE NATURE OF COOPERATIVE LAW SHOULD BE PUBLIC AND DEVELOPMENT ORIENTED LAW THE NATURE OF COOPERATIVE LAW SHOULD BE PUBLIC AND DEVELOPMENT ORIENTED LAW FRAME WORK OF COOPERATIVE LAW: FRAME WORK OF COOPERATIVE LAW: i.PREAMBLE – INTRODUCTION ii.GENERAL PROVISIONS iii.FORMATION AND REGISTRATION OF COOPERATIVES iv.ADMISSION OF MEMBERS v.RIGHTS AND LIABILITY OF MEMBERS vi.MANAGEMENT OF COOPERATIVES vii.CONTENTS OF BYE-LAWS/INTERNAL REGULATIONS viii.CAPITAL AND FUNDS OF COOPERATIVE

FRAMEWORK FOR COOPERATIVE LAW ix.DISTRIBUTION OF SURPLUS x.AUDIT xi.PROCEDURE FOR DISSOLUTION xii.SETTLEMENT OF DISPUTES xiii.AMALGAMATION AND DIVISION OF COOPERATIVES xiv.CREATION OF FEDERATION AND UNIONS OF COOPS AT HIGHER LEVEL xv.ROLE OF GOVERNMENT xvi.REVIEW, REPEALS xvii.TRANSITORY PROVISION

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