GK Question

Answer: True

Article 43B cooperative societies directive: (a) Text: State shall endeavor to promote voluntary formation, autonomous functioning, democratic control, professional management of cooperative societies, (b) 97th Amendment context: Added to strengthen cooperative movement; later partially struck down by Supreme Court (2021) regarding State Legislature's power over cooperatives, but Article 43B remains valid, (c) Key principles: (i) Voluntary formation: Cooperatives formed by free association of members, not state compulsion, (ii) Autonomous functioning: Cooperatives manage own affairs, free from excessive government control, (iii) Democratic control: One member, one vote; elected management accountable to members, (iv) Professional management: Balance democratic governance with professional expertise for efficiency, (d) Applications: (i) Agricultural cooperatives: AMUL (dairy), IFFCO (fertilizers) demonstrate successful cooperative models, (ii) Credit cooperatives: Primary Agricultural Credit Societies (PACS) provide rural credit, financial inclusion, (iii) Consumer cooperatives: Retail cooperatives ensure fair prices, quality goods for members, (e) Challenges: (i) Political interference: State governments may undermine cooperative autonomy through appointments, regulations, (ii) Capacity gaps: Cooperatives need training, technology, governance reforms for professional management, (iii) Federal balance: 97th Amendment struck down provisions on State Legislature's power over cooperatives; balance between Union framework, State implementation remains contested, (f) Illustrates democratic economics: Article 43B operationalizes Gandhian vision of self-reliant, democratic economic organizations; balance between autonomy, accountability, professionalism essential for realizing constitutional vision of inclusive, participatory economy.