Property Rights, Incentives and Performance of Cooperative Training Institutes In India

The paper attempts to find determinants of variation in performance of the 19 institutes of cooperative management (ICM) representing the in-housetraining facilities within the cooperative sector in India by examining the distribution of property rights and incentives. The property rights are so distributed that there is a mismatch between the rights of residual claimants and of residual controllers. As a result, there is a clear efficiency loss and under-utilisation of capacity across ICMs. The performance of ICMs is measured through two indicators of demand and two indicators of supply of training. The paper finds that the supply of training in the ICM system in India is largely governed by the availability of training equipments like the number of PC, OHP, library books, and the qualitative aspects of labour input such as the average research papers, cases, and notes produced by faculty, and number of sessions conducted by guest faculty. The demand for training is not determined by the felt need of cooperatives, but by clients’ perception of the training infrastructure, facilities and capability of ICMs as well as the image and experience of ICMs in conducting paid programmes.