Revitalising Nepal’s Cooperative Movement: Lessons from Global Best Practices

Abstract

Purpose: The present study explores the role of indigenous cooperative practices - Guthi, Parma, and Dhikuri - in shaping Nepal’s cooperative movement and examines how global best practices can revitalise the sector in Nepalese perspective. To examine the contribution of cooperatives to inclusive development in advancing the United Nations Sustainable Development Goals (SDGs).

Design/methodology/approach: The study has adopted a qualitative and conceptual approach, drawing on a review of traditional cooperative systems in Nepal and a comparative analysis of international cooperative practices from India, Indonesia, the United Kingdom, Germany, and the United States. The study has further incorporated thematic analysis of key challenges and policy issues in Nepal’s cooperative sector.

Findings: The findings show that while traditional practices have long fostered mutual support, social cohesion, and community-based economic exchange, Nepal’s cooperative movement now faces governance weaknesses, financial mismanagement, regulatory gaps, and limited adoption of global best practices. Strengthening regulatory frameworks, professional management, and digital systems can enhance sustainability, while cooperatives can significantly advance the SDGs, particularly poverty reduction, decent work, gender equality, and institutional development.

Implications: The study emphasises the need for strengthened regulation, effective auditing, digital adaptation, and the institutionalisation of cooperative education to restore public trust and ensure long-term resilience.

Originality/value: This study uniquely bridges indigenous cooperative traditions with global best practices while highlighting the critical role of formal cooperative education in strengthening Nepal’s social economy.

JEL Classification: L31, O15, O17, P13