Article 43B of the Indian Constitution is a significant addition to the Directive Principles of State Policy (DPSP). Introduced by the 97th Constitutional Amendment Act, 2011, it reflects the growing importance of co-operative societies in fostering economic development, social empowerment, and grassroots democracy in India.
This Article places a constitutional obligation upon the State to facilitate the growth and development of the co-operative sector, recognizing its potential to uplift various segments of society, particularly in rural and semi-urban areas, by promoting self-help and mutual aid.
Original Text
The State shall endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies.
Detailed Explanation
Article 43B, inserted into Part IV of the Constitution, is a Directive Principle of State Policy. As such, it is not directly enforceable by any court, but the principles laid down in it are fundamental in the governance of the country and it shall be the duty of the State to apply these principles in making laws. This article specifically directs the State to take steps towards promoting co-operative societies based on certain core principles.
The article outlines four key aspects that the State must endeavor to promote:
- Voluntary Formation: This implies that the establishment of co-operative societies should be based on the free will and consent of individuals coming together for a common purpose, rather than being imposed or mandated by the government. It emphasizes the bottom-up nature of the co-operative movement.
- Autonomous Functioning: Co-operative societies should be able to function independently without undue government interference in their day-to-day operations, decision-making, and management. Autonomy allows them to respond effectively to the needs of their members.
- Democratic Control: The management and governance of co-operative societies should be democratic. This typically means that control rests with the members, who elect their representatives to governing bodies, and decisions are made based on democratic principles like ‘one member, one vote’.
- Professional Management: The article also stresses the need for professional management of co-operative societies to ensure efficiency, transparency, and sustainability. This encourages the adoption of sound business practices and skilled leadership.
By including this directive, the Constitution recognizes the co-operative sector as a distinct form of organization that needs constitutional support to flourish on sound democratic and professional lines, thereby contributing effectively to the national economy and social well-being.
Detailed Notes
- Part IV of the Constitution (Directive Principles of State Policy).
- Inserted by the 97th Constitutional Amendment Act, 2011.
- Not directly enforceable by courts.
- Principles fundamental in the governance of the country; State’s duty to apply in law-making.
- Directs the State to endeavour (make an effort) to promote specific aspects of co-operative societies.
- Key aspects to be promoted:
- Voluntary formation: Based on the free will of individuals.
- Autonomous functioning: Independence from undue external interference.
- Democratic control: Governance by members, typically through elected representatives (‘one member, one vote’).
- Professional management: Efficient, transparent, and sustainable operations through skilled personnel and sound practices.
- Aims to strengthen the co-operative movement in India.
- Reflects the constitutional recognition of co-operative societies as a vital sector.
- Complements the Fundamental Right to form co-operative societies (Article 19(1)(c), also amended by the 97th Amendment).
- Promotes principles of self-help, mutual aid, and collective action.
Additional Comments
- The 97th Amendment Act, 2011 gave constitutional status and protection to co-operative societies. It also amended Article 19(1)(c) to include the right to form co-operative societies as a fundamental right and added a new Part IXB to the Constitution dealing with co-operative societies.
- Article 43B, being a DPSP, provides a directive for policy-making, while the changes in Part III (Article 19) and the new Part IXB provide enforceability and detailed provisions for the governance of co-operatives.
- The insertion of this article underscores the government’s intention to support the co-operative sector as a means for inclusive growth, poverty reduction, and empowering marginalized sections.
- It highlights the need to professionalize the management of co-operatives to ensure their viability and prevent mismanagement, which has been a challenge for many co-operative institutions.
- The implementation of this directive requires appropriate legislative and administrative measures by both the central and state governments, as co-operative societies fall under the State List (List II) of the Seventh Schedule.
Summary
Article 43B is a Directive Principle of State Policy introduced by the 97th Amendment Act, 2011, requiring the State to strive towards promoting co-operative societies. The core principles the State should foster are voluntary formation, autonomous operation, democratic governance by members, and efficient professional management. This directive aims to strengthen the co-operative sector’s ability to contribute to economic development and social well-being by ensuring they function independently, democratically, and professionally.