Synopsis Cooperatives like village panchayats are institutional agencies for achieving social cohesion. In a country whose economic structure has its roots in the village, cooperation is something more than a series of activities organised on cooperative lines; basically its purpose is to evolve a system of cooperative community organisation which touches upon all aspects of life. Cooperation, therefore, means an obligation towards all families in the village community and the development of resources and of social services in the common interest of the village as a whole. This is the underlying approach in setting cooperative village management on the main direction of reorganisation in the rural economy.