52% of Registered Cooperatives Inactive

Official figures by the Ministry of Cooperatives, Labor and Social Welfare show 106,491 or 52% of the country’s 205,455 registered cooperatives until the end of the fifth Iranian month Mordad (August 21) are either inactive or partly active. Also, 49 million people are registered as members of the nationwide cooperatives, whereas 43 million of them are active, Mehr News Agency reported. A total of 115.16 trillion rials ($3.22 billion at market exchange rates) has been invested in these cooperatives that have created 1,638,312 jobs. Cooperative refers to a firm owned, controlled and operated by a group of users for their own benefit. Each member contributes equity capital and shares in the control of the firm on the basis of one-member, one-vote principle (and not in proportion to his or her equity contribution). Article 44 of Iran’s Constitution stipulates a 25% share for Iran’s cooperatives in the gross domestic product. However, this share now barely exceeds 5%, officials say.