Genesis Objectives Functions, Duties and Powers Constitution of the Executive Committee Constitution of Sub Committees Fund Operation Sub Committee Sources of Fund Finance & Financing Promotional & Developmental Role Major Achievements Organizational Structure Contact Address

GENESIS ::

National Cooperative Development Board (NCDB) was formed in August 1991 as ad hoc basis by His Majesty the King in accordance with the decision of the Council of Ministers. The Board was initially entrusted the responsibility of revising the cooperative legislation and designing a strategy for revitalizing the cooperative movement so as to make it self-reliant and people managed.

More specifically, the main tasks of NCDB included the following:

1. formulate cooperative policies;
2. work out a new cooperative legislation;
3. help set up the structure of the cooperative movement from bottom to top;
4. coordinate the activities of cooperatives in different sectors; and
5. establish necessary infrastructures required for facilitating the process of cooperative development.

Subsequently in October 1992, the permanent status of NCDB was confirmed by an Act of Parliament with the main functions to assist the government and cooperative movement on policy matters, to help organize technical and financial assistance to the cooperative movement and to serve as a coordinating body between the government and cooperative movement.

OBJECTIVESl ::

Section 3 of the National Cooperative Development Board Act, 1992 defines the objective of the Board as follows:

"The National Cooperative Development Board has been established at the national level with the objective of assisting in the development of different types of cooperative societies and unions by formulating policies and relevant plans for the economic and social development of the lower strata of people in accordance with the cooperative principles."

FUNCTIONS, DUTIES AND POWERS ::
As specified in Section 6 of the National Cooperative Development Board Act, 1992, the function, duties and powers of the Board are as follows:

a) To assist Government of Nepal in formulating plans and policies concerning cooperative development;
b) To facilitate the implementation of cooperative polices;
c) To create and maintain a cooperative development fund with a view to providing cooperatives with loans or grants for development purposes;
d) To participate in the share capital of cooperative societies, unions or banks;
e) To stand surety for cooperatives;
f) To extend technical assistance to cooperatives;
g) To bring coordination between cooperatives and other related government as well as nongovernmental agencies/Organizations, and thereby, encourage cooperatives to expand their business services;
h) To facilitate joint investment of Government of Nepal, cooperative and other national as well as international organizations for the industrial development in the cooperative sector;
i) To conduct the required studies and research work for cooperative development; and
j) To carry out all other functions as may be deemed necessary for promoting the cooperative movement.

CONSTITUTION OF THE EXECUTIVE COMMITTEE ::

The Executive Committee of the Board is the main body chaired by Hon'ble Minister for Agriculture and Cooperatives. The committee comprises of 22 members of which more than half are non-official representatives. The formation of the executive committee is as follows :

CONSTITUTION OF SUB COMMITTEES ::

According to the National Cooperative Development Board(operations) Bylaws, 1992, there is the provision of two sub committees. Formation of the said sub committees is as follows :

Program Sub Committee :

Fund Operation Sub Committee :

SOURCES OF FUND::

NCDB receives the fund to make its activities from both internal as well as external sources. Internal source is mostly generated by fixed assets including shopping complex situated in Kathmandu valley. For external fund, the Board has the following sources :

FINANCE & FINANCING ::

To nurture cooperatives through the financial and technical assistance of soft loan, NCDB has created a separate "Cooperative Development Fund." Although modest in financial terms, the fund aims to support viable cooperative projects and it has supported various cooperative projects in micro level like oil processing, cellar mill, godown construction, installation of chilling vat, cattle feed industry, iron and leather work, carpet industry, tea garden, shopping complex etc.

In the initial period the government had contributed NRs. 2.5 million to the fund and every year the Board contributes some amount to strengthen the fund. The Board's financial assistance is not individual beneficiary oriented but is meant for institutional development of cooperatives to create common facilities like godowns. Processing unit and other income generating assets as also to equip them with equity and margin money and thus provide services to their members.

PROMOTIONAL & DEVELOPMENTAL ROLE ::

NCDB is involved in planning, promoting, coordinating and financing of cooperative development programs at the national level. It, therefore, provides financial and technical support to the cooperative institutions of the farmers and other weaker sectors associated with agriculture and nonagricultural sectors. Its strategy is to strengthen and develop these institutions for serving the farmers and other members in the rural areas to maintain sustained growth of their incomes.
The Board's promotional and development role is distinctly reflected in the following spheres of its operations:

MAJOR ACHIEVEMENTS ::

The Board, since its inception, has extended its activities in the field of formulation of cooperative legislation, policy guidelines, studies, feasibility studies and other educational, media and promotional activities. Such activities are as follows.

• Formulation of Cooperative legislation and policy guidelines
  The most significant achievement after the creation of NCDB is the enactment of the Cooperative Act in may 1992, which has recognized the underlying principles of cooperation and ensured the operational autonomy of cooperatives.
  
  As the new legislation is expected to encourage people's initiative and participation in cooperative processes, the NCDB has also formulated a draft policy guidelines designed to effect a sustainable growth as well as constructive role of the cooperative sector in the national economy.
  
• Formulation of model bylaws and Cooperative personnel policies
  The Board has assisted the government in formulating the cooperative rules and has also formulated model bylaws for different types of cooperative.
  
  Similarly, NCDB has through a special task force comprising cooperators, employees of cooperatives and experts in cooperative personnel management conducted a study on cooperative personnel policies and formulated to facilitate the cooperatives in adopting with suitable modifications.
  
• Strengthening Agricultural Cooperative
  In the initial stage of its establishment, NCDB launched a special campaign to scrutinize financial situation and resolving the problems concerning compulsory savings, doubtful debts, unreconciled accounts, financial misuse and so on of the agricultural cooperatives and strengthen them. The study provided a clear picture of almost all of the then existing agricultural cooperatives and steps to implement the recommendations of the study had already been taken.
  
• Feasibility Reports and Management Studies
  Board, since its inception in 1992, has been conducting a number of studies, feasibility studies, management studies and other kinds of studies as demanded by the cooperative societies and unions. Up to the year 2000-2001, the Board has conducted 25 feasibility studies, 15 studies, 3 impact studies and 10 other kinds of studies. Some of the major studies conducted by the Board are as follows :
  
  

  A.	Food security program in Mustang, Dolpa and Bajhang district.
  B.	Integrated Cooperative Development Program in Nawalparasi district.
  C.	Amliso (Bamboo grass) Production and Marketing in Ilam an Jhapa districts.
  D.	Ginger Production and Marketing in Salyan district.
  E.	Institutional Marketing of coffee in Gulmi district.
  F.	Goat rearing activities and Marketing in Gahahu district.
  G.	Cardamom Production and Marketing in Panchthar district.
  H.	Status and Problems of Finance Cooperatives in Kathmandu valley.
  I.	Impact study of NCDB financial assistance cooperative projects.

  
  
• Publications/Radio Program/TV Program
  To make the cooperative members and masse at large aware about the activities of cooperatives, the Board has, since a long time, been publishing newsletter. The newsletter covers a wide areas of activites undertaken by cooperatives including general assembly, cooperative activities, training, workshop, seminar, business activities, study visit, partnership program etc.
  
  Likewise, the Board has been involved in Radio and TV Program and transmitting and broadcasting various activities of cooperatives under "Krishi Karyakram" (Agriculture Program) jointly with the Department of Agriculture.
  
• Education/ Training/ Seminar/ Workshop/ Conference/ Study Visits
  NCDB organizes educational camps, training, seminar, workshop, conference and study visits regularly to provide contemporary knowledge about cooperative development, to help develop silled manpower in the cooperative sector and to provide a common forum for discussion of various cooperative activities, programs and policies etc. at the central, regional and local level. So far the Board has organized 29 educational camps, 40 trainings, 1 conference, 78 seminars and 3 workshops.
  
• Membership of professional Organizations
  To keep the constant relationship, interaction and up gradation of the development, information and activities of cooperative movement and managerial development in the relevant fields, the Board continued its institutional membership of several important professional organizations working at national as well as international fields. They are:
  
  - Regional Network of Development of Agricultural Cooperatives (NEDAC), Bangkok, Thailand.
  - Center for International Cooperation and Training in Agricultural Banking (CICTAB), Pune, India.
  - Management Association of Nepal (MAN), Kathmandu, Nepal.
  
• COOPERATIVE DEVELOPMENT PROJECT
  The Board has always been emphasizing the need for developing primary cooperatives as multipurpose entities to provide a package of services to the rural community. It is with this motive, NCDB completed the scheme of Integrated Cooperative Development Project in Nawalparasi district of western region. The project helped selected cooperative societies and unions strengthen marketing and promotional activities of such cooperatives of the said district.
  
• ORGANIZATIONAL STRUCTURE
  The Co-chairperson is the chief executive position of the NCDB supported by the Member Secretary, also an executive position. Below the Member-Secretary are the Directors who coordinate the functions of two divisions namely Management Development and Planning and Promotion. The Board has a total 43 employees of which 14 are officer level and remaining are non-officer level. The organizational structure of the Board is as follows :

ORGANIZATIONAL STRUCTURE OF NATIONAL
COOPERATIVE DEVELOPMENT BOARD

Contact Address:

NATIONAL COOPERATIVE DEVELOPMENT BOARD
National Cooperative Development Board
Pulchowk, Lalitpur, Nepal