CNI News
21 August 2024
It was necessary to manage rightly and supervise strictly if the cooperative system was implemented without fail so that the system could work, economic analysts and banking experts told CNI News.
Indebtedness without being successful in implementing the cooperative system in the past was because of malmanagement, they pointed out.
If the cooperative system was activated without fail, it would be necessary to consider whether Myanmar had the same situations as those in France, Netherland and New Zealand whose cooperative systems were successful, U Htay Aung Kyi, a banking expert, told CNI News.
" First point, management must be good. Secondly, one or two points are not enough to meet the need. For example, Myanmar farmers who need capital are lent at the interest rate of 13 percent while Bangladeshi farmers are paying 4 or 5 percent. If so, would it be possible? This is just the financial sector alone. Other sectors such as management, technology, business industry structure and so on. There are six points that have to be supported at the same time." he said.
Those who were waiting in line to buy what they needed
The market economic system was used in a multi-party democratic system and there were industries in which the government could not participate.
So, to facilitate those industries, the cooperative system was appropriate, said chairman of the State Administration Council.
Cooperatives were formed and productive industries should be improved; and then he wanted the associations to establish agro-livestock based factories and workshops, he said.
Moreover, the government would support capital, technology and other requirements and cooperatives would have to produce value-added products, he added.
According to the current situation of Myanmar, if the cooperative system was animated, the black market could be bigger, said economic analysts and banking experts. Moreover, it would not be convenient if the cooperative system was used all over the country, an economic analyst told CNI News.
While collective cooperatives in Ahlone Township were selling fish at lower prices during the Covid-19 pandemic
" It won't be convenient if the cooperative system is used all over the country. It might be used in a village tract or a township. In fact, the cooperative system intends to enable SMEs to work together rather than economic improvement. SMEs don't support the economy of the country a lot. It's just less than 25 percent. The remaining 75 percent are supported by heavy industries. The heavy industries don't need to be cooperatives. It's impossible that a cooperative system will lead the country's economy." he said.
The cooperative system is used only for small enterprises in other countries; if the system was reactivated in Myanmar, it would be convenient for small enterprises only, pointed out economic analysts.
Cooperatives could produce just one percent of the GDP of Myanmar and the private sector, 70 percent and the government sector, nearly 30 percent.
