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HAPPY BHUTAN YOUTH COOPERATIVE

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Mon, 18/05/2009 - 11:41am — yagnas

Dear cooperatives,
I m Sangay Rinchen a young man of 26 from a country called Bhutan, in the eastern Himalayas of ASIA. I m an agricultural extension by profession but now I m working as a Graphic designer in the ministry of agriculture, in the information section at the Ministry head office for the last two years of my service

Ever since my young age and school days I have a desire and mind of doing something different for the society and for the world as a whole. I m an artist by birth and also has a lot of other skills in communications, creativity and most of all I have an open mind and heart to readily accept and listen to someone ideas and initiatives. My experience as a scout leader, class leader and group leaders during my schooling have added me a lot of other social and personal understandings about day to day issues and lifestyle in the society. Therefore I m sociable and friendly to almost everyone regardless of statues, health, race, religion and wealth

There are many proposals and ideas in my mind for quite a long period of time. There are few which can benefit a lot of people.
This particular idea of coop was into my brain when I been to Malaysia for a short course in Cooperative desktop publishing and study tours to different parts of coop society in Malaysia. After that almost everyday I been browsing through the net about cooperative and its benefits to the people and in the society.

At the same time there are lot of students, drop outs and trained and unemployed youths skilled yet roaming in the market for many years without knowing themselves what to do or where to go. And many other social and economic problems are arising due to youth unemployment in my country where philosophy of Gross national Happiness has born.

So as a youth and a close friend of many of them and foreseeing the scope of cooperative in a broader sense I couldn’t not just stand and watch them going away with their life in vein. Therefore I have written and proposed this cooperative proposal with a help of recourses and references from many cooperative society sites and publications.

I would appreciate if any generious people could look into my proposal.
therefore i would like to extend my heartfull welcome to anyone intersted to help me build this youth cooperative in my country.

My email id id is yagnas@moa.gov.bt

Thanking you

Yours sincerely
Sangay Rinchen
BHUTAN
00975-17723844 / 77249164 fax 00975-344520

Comments

Wed, 17/02/2010 - 9:46am — william

however we would like to

however we would like to request you to give us some clue in starting a cooperative banking considering the population strength and consumers at present. we also would like to know if in anycase we can do a partnership venture with you.we also would like to pronounce to u that we have at the moment gained a lot of supports from political bodies, buericraits, gorvernemt organisatuions and individuals.
i would appreciate if you could send us the reply at this email...yagnas@moa.gov.bt or infact reply to us in the same bog that i have here in ICA
--------------------------
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Fri, 29/05/2009 - 12:30pm — Anjan Dasgupta
Anjan Dasgupta's picture

HAPPY BHUTAN YOUTH COOPERATIVE

Dear Sangay,
You can address me by my name "Anjan". My apologies for delayed response as I was on a vacation with my family to Sikkim and without net connectivity.

I have been reading with high regard article about the King, People, Bhutan country and the importance given to the index of Well-being. The four pillars of GNH- promotion of sustainable development, preservation and promotion of cultural values, conservation of the natural environment, and establishment of good governance should be a model for all countries. Microfinance and co-operatives can play a major role in promoting GNH through inclusive growth.

I could suggest the procedure for setting-up a Co-operative Bank viewing the laws in India. I am not very sure of the Banking laws in Bhutan. I am sure it will be much more flexible than in India.

In India we have the Co-operative Societies act under which the society is formed and incorporated. The act covers all aspect of formation, administration, management, elections etc. We also have the Banking Regulation act, administered and monitored by the Reserve Bank of India (the Apex bank in India) covering the Banking aspect of the Urban Co-operative Bank. There are entry point norms for grant of license by Reserve Bank to do banking business. The norms include minimum share capital requirement and minimum membership requirement. In case you are interested, the same can be seen in the RBI website www.rbi.org.in.

Bhutan may not have any such requirements.

Please check-up your local laws relating to registration of Co-op Societies. As a start-up you require to register it as co-operative society. Make a bye-law covering the normal requirement and clauses (If required, I can send a model bye-law based on India's laws). The bye-laws will detail-out name, object, management, election, powers of management and CEO, borrowing power etc.

Essentially the Co-operative Society will avail deposit and lend to its members.

Schemes for deposit need to be formulated with terms, interest rate.

Lending schemes will similarly be formulated. The loan appraisal process should be properly structured and document/security ensured so that there is no default or overdues.

To start the process membership will have to be garnered.

Membership comprises of two components

Share amount – Can specify a minimum amount

Admission fees-Can be a percentage of share amount say 2%

Initially it may seem difficult but once it gets going, it becomes simpler. Once the society has been registered, memberships are in place you may approach banks with a detailed proposal for borrowings. You may submit to them a projected financials. I am not sure if your Government also funds co-operatives to encourage them, this could be another source for funding

With the funding from share, admission fees, deposits, borrowings (if possible) etc, the lending operations can be commenced. Workout the cost of funds, cost of operations and an expected return on capital and the fix-up the lending rate. It is essential to break-even early.

Please note co-operatives lend only to its members and while lending, a percentage of loan (say 5%) is taken as share contribution. Further to make the scheme more viable the lending schemes can be linked to deposits where the repayment includes a deposit element. This will ensure a comfortable cash position for further lending.

Like I told before, Microfinance is a safe mode of lending. You can adopt the systems of Micro-lending. Also ensure that lending is in small amount to large number of individuals. It is unsafe to give a large loan to few individuals.

Most of all, put into place proper book-keeping, controls and systems in place.

This in nutshell is the basic framework. There is no need for partnership as co-operatives are self-sustaining organization if run properly and transparency maintained.

Feel free to contact me for any further assistance.

Regards

Anjan Dasgupta
India

Mon, 25/05/2009 - 4:37am — yagnas
yagnas's picture

Cooperative Banking/microfinancing

My dear sir,
thank you so much for ur wonderful suggestions. infact we are really previledged to have your suggestions, a suggestions of a man from a country where Bhutan at the moment gained full trust and endless support. India we consider as our secound home. we believe in your way of life and phylosophy of living and infact much in doing a business.

however we would like to request you to give us some clue in starting a cooperative banking considering the population strength and consumers at present. we also would like to know if in anycase we can do a partnership venture with you.

we also would like to pronounce to u that we have at the moment gained a lot of supports from political bodies, buericraits, gorvernemt organisatuions and individuals.
i would appreciate if you could send us the reply at this email...yagnas@moa.gov.bt or infact reply to us in the same bog that i have here in ICA

we look forward to your fast reply.

Fri, 22/05/2009 - 2:46pm — Anjan Dasgupta
Anjan Dasgupta's picture

HAPPY BHUTAN YOUTH COOPERATIVE

Dear Sangay
I admire your vision, thoughts and project. I would suggest one project at a time. Multiple activities may create complications.

I would also suggest a start-up co-operative banking if the laws of Bhutan so permits. I have been heading a Co-operative Bank in Sikkim a hilly state in the North-East India with economy and topography similar to Bhutan. The problems are similar. Trust me, if the youth are harnessed with opportunities and finance they can give you awesome results.

We had clubbed Banking with Microfinance with great results in developing the marginalised. In fact my bank and got the national award for its successful schemes and performance.

I have recently shifted to one of the most backward and under-developed states in India viz Bihar to bring about development through Microfinance/Livelihood development through Microfinance++.

Bhutan needs Co-operative Banks/Microfinance institutions to bring about development at the bottom of the income pyramid. People with a vision like you can be a catalyst to bring about this development.

Anjan Dasgupta
Bihar/India

Anjan Dasgupta
India