There is an old adage that “if some thing isn’t broke, it doesn’t need fixing”. But the AP government is exactly attempting to do the same through its proposal for amending the Mutually Aided Cooperative Societies (MACS) Act, 1995. For some of you who might not be familiar with what is happening in the field of cooperatives, a little backgrounder.

One of the disquieting features of Indian politics and public policy is the colossal damage done to the rural and agricultural sector by successive governments, all in the name of the people. If the explicit objective is to undermine the rural agriculture-dependent population, our governments could not have done a more thorough and effective job!

The call of the prime minister to depoliticise, debureaucratise, democratise and professionalise the cooperatives has come not a day too soon. From Gorwale committee (1950’s) to Khusro committee (80’s) and now the Task Force on cooperatives led by Jagdish Capoor, there is no dearth of expert bodies and reports on the role and health of cooperatives. As usual, what is lacking is resolute action. The state of cooperatives is a classic illustration of bad governance affecting economic institutions.

“Live only in a village that has a money lender, a physician and a perennial river …” is the ancient wisdom of Sumati Sataka. Ever since money replaced barter economy, money lending at a fair rate has become the essence of modern life. Everyone needs to borrow to tide over a contingency or to invest in a venture.