Review of Co-op Laws in Afghanistan (1997)

This document has been made available in electronic format
by the International Co-operative Alliance (ICA)
Part II - Review of Co-operative Laws - Afghanistan (1997)
Source: Co-operative Laws in Asia and the Pacific
by G.K. Sharma (pp.31-35)
Review of Country Laws
No information is readily available whether there were any local
initiatives to promote co-operatives in Afghanistan. It is a
land-locked country with staunch tribal society - literacy rate
is very poor. Being staunch Muslims they are not easily
influenced by external factors. Even the British Raj in India
could not influence much on the life of Afghans. The initiative
with regard to co-operatives seems to have come from the
Government only in the sixties. According to the ILO/TAP/
Afghanistan/RS Report in 1965 we find a reference some years back,
the Government of Afghanistan had asked an expert to study and
report on the possibility of organising cooperative credit societies
in the country. The expert suggested that a cooperative law should
be enacted.
Another expert in the following years prepared a draft law on
Co-operation.  This draft was based on the existing laws prevailing
in various Indian states, the basis of which had been the Indian Act
of 1912."
The co-operative law was first time approved by the Cabinet  on
August 26, 1974  and by the King on October 30, 1974.  It became
operative from November 23, 1974 from the date of its publication
in the official gazette.  The law has 51 articles divided in 13 chapters.
It is a short, simple law which can be easily understood by any person
and does not need the help of experts to interpret it.  Some of the
important provisions in this law chapterwise are as under:
Chapter I
It contains only two articles.  Article two deals with definitions
and defines a co-operative as under:
`Co-operative' an association of persons who have voluntarily
joined together to achieve a common social and economic end through
the formation of a democratically managed and controlled organisation.
`Primary Co-operative': a cooperative formed by at least eleven