Transcript Document

Overview and Coop Movement
• Articles 43&44 of Constitutional Law especially
dedicated to cooperatives: A sublime statutory
-Cooperatives activity to ensure full employment
-Providing work possibilities and opportunities for
those who are able to work but have been denied
- Preventing the Government sector from becoming
the sole and only employer
-Preventing the Government sector from large-sizing
• Over 130 thousand cooperative societies
• Coming from almost all economic sectors &
• Currently hold 7.5% of GDP
• Membership size: Around 52 million
• Creating 1,240 thousand job opportunities =
over 6% of the total employment
• Most successful coops come from
consumption, credit, health, various
subsectors of agriculture, handicrafts, mining
and industry
• Cooperative sector includes two parts:
a) State bodies
- Ministry of Cooperatives (30 Administration Generals in
provinces, over 200 cooperative offices in townships)
-CDB, newly established
- CIGF, newly established
b) Movement
- Iranian Chamber of Cooperatives (ICC)
- Cooperative societies and unions
Policy of the Government
• Outline Policies of Article 44, declared in 2003 by the Supreme
Leader, to boost Cooperative share in GDP to 25% through
privatization by the end of the 5th plan
1- Increasing share of cooperative sector in national economy up to
25% by the end of the 5th Five-Year Development Plan (2014)
2- Government’s effective measure in establishment of cooperatives as
means for productive employment for the unemployed
3- Government support for establishment and development of
cooperatives through various methods including allocation of tax
relief and credit facilities by all finance institutes, and avoiding any
kind of extra charges on cooperatives compared with private sector.
4- Removing restrictions on cooperatives in all sectors including
banking and insurance
5- Establishing Cooperative Development Bank with state-owned
6- Government support to facilitate cooperatives’ access to end
7- State’s good governance through policy making and regulatory
monitoring rather than intervention in the executive and
managerial practices of cooperatives
8- Development of technical/vocational trainings and other supports
required for enhancing cooperative efficiency and empowerment.
9- Introducing flexible and diverse methods for increasing capital and
issuing shares in cooperative sector; taking required measures for
establishment of new versions of cooperatives in the form of public
companies with the ownership of each stakeholder limited as to a
certain extent as predefined by law.
10- Government support for cooperatives in proportion to
the membership size
11- Establishment of nationwide cooperatives to cover the
first three lower income deciles of society for poverty
12- Allocating of 50% of shares during privatization to lowincome deciles through cooperatives with preferential
rate and installment.
13- Allocation of 30% of the income, earned through
privatization, to nationwide cooperatives in line with
poverty eradication.
Latest Developments and Initiatives
within the last 3 years
• “Adalat” (Justice) Shares Distribution: 40% of state
companies subject to privatization to be distributed to 6
lowest income deciles
• Mehr National Cooperative Housing Plan: households with
no residence of their own (about one and half million
individuals) should be given the chance to possess
accommodation within a three-year period by membership
in Mehr Housing Cooperatives under government
Cooperative Development Bank CDB): a state bank with
an initial capital of USD 500 million; It aims to provide
cooperatives, especially the newly established ones, with
ad-hoc supportive measures and credit lines
Latest Developments and Initiatives
within the last 3 years
• Cooperative Investment Guarantee Fund (CIGF):
aims for guaranteeing and insuring banking facilities
rendered to cooperatives, cooperatives' investments and
holds an initial capital of USD 120 million
• 110 Translation movement
to keep up with the newest in theory and practice of
the coop world
to make grounds for idea producers share their
theoretical and experiential views more effectively
Future Plans and Policies
Provision of more effective participatory
solutions to make people self-help, thus,
paving the ground for boosting coop sector to
Concerns to be addressed
• Cooperation among cooperatives
• Better financial and social inclusion
For complete facts and figures please see: