Cooperative Quandary

The cooperative model, alongside Community Forest User Groups, is one of Nepal’s few success stories recognised internationally. Both initiatives have proven their resilience in contributing to Nepal’s socioeconomic development. Yet the recent turbulence in Savings and Credit Cooperatives (SACOS) underscores the consequences of diverging from core cooperative principles. With more than 34,000 cooperatives and 6.5 million members, the sector stands at a tipping point, contributing around 3 per cent to Nepal’s economy but burdened by severe challenges.