International Cooperation

International cooperation is the procedure of coordination of different policies in the fields of production, research, commerce, etc., between two or more countries. It is the corporation of different nations over the issues of social, economic, technological, cultural, and human rights. 

International cooperation is important for a nation to deal with the different challenges of the world. 

The main aim of international cooperation is to put political effort into world peace and help economically developing countries prosper. The World Trade Organisation(WTO) is one example of international cooperation, which operates the international trade system among different nations. A nation’s government runs many international cooperation schemes to develop its production units in the global market. 

International cooperation meaning 

At the end of the nineteenth century, the relationship between most nations became more interrelated and complex. Several international organisations and general treaties came into existence in this period. The United Nations Organisation (UNO) is one of them that put many efforts into maintaining international peace in the world by eliminating nuclear weapons from different countries, putting restrictions on biological weapons, etc. There are many fields, along with world peace, in which international cooperation forms and works. The important fields of international cooperation are listed below:

1. Official Development Assistant: Popularly known as ODA, it is the service of the government of a nation that encourages the specified group for the economic development and welfare of countries in the developing phase.
2. International Development Cooperation (IDC): This cooperation is the incorporated portion of the foreign plan of action of the developed countries. IDC looks for the transportation of resources for development purposes. The movement of capital from the nations in the developing phase is excluded from the IDC.
3. Economical International Cooperation: It offers support in terms of finance for developing countries. Economic International Cooperation between the countries is the basic agreement on trade and traffic of goods.

Micro Small and Medium Enterprises (MSMEs)

Micro, small, and medium enterprises (MSMEs) is the agreement of the Government of India with MSMEs mainly dealing with the processing, manufacturing, and production of different goods. This sector contributes almost eight percent of the GDP of the Indian Economy. It provides almost 40% of the country’s total exports. The MSME sector helps in the development of the country and generates numerous employment opportunities. 

Micro, Small and Medium Enterprises (MSMEs) are considered the main power source of economic growth of a nation on the world level. International cooperation programmes provide a global market to the MSMEs to make them globally competitive. The classification of micro, small, and medium enterprises is represented in the following table:

International Schemes

The government of a nation introduces international schemes to boost the development of industries and enterprises. It helps to explore new markets (international markets) for their goods and services. The main goals of international schemes are to promote the exports and advancement of MSMEs. State Government, Central Government, MSMEs, and organisations related to MSMEs are the selected groups that are eligible to apply for the International schemes. The international schemes were introduced in 1996 in India, and the rules were revised in 2018.

The various schemes for MSMEs under the latest guidelines of international schemes (2018) of the Indian government are listed below.

• The eligible group is allowed to participate in the international exhibitions of MSMEs.
• This group is also eligible to visit the international meeting of buyers and sellers and international trade fairs to globalise its market.
• A hundred percent of economy-class airfare up to Rs 1.50 lakhs is provided to the firms.
• The officials of the government that are part of the scheme get the benefit based on their performance.
• The charge of bulk transportation of up to Rs 25,000 is provided for one MSME.
• The compensation amount is a hundred percent up to Rs 2.5 lakhs for the cost of space.
• An office-bearer gets the duty allowances up to USD 150 each day for 3 days, accounting for the event date.

Advantages of International Cooperation Schemes

Following are the advantages of international cooperation schemes.

1. International cooperation schemes help the MSMEs to compete on an international level providing them a global market to trade.
2. This scheme helps in the modernisation and advancement of equipment used in MSMEs with world-class technology.
3. The international cooperation schemes provide basic infrastructure to the MSMEs to trade at the market level.

Conclusion

Under international cooperation, a collection of cooperation or groups from different nations gather to attain a pre-defined objective. International cooperation is essential for developing production units as it provides them the global market for their business. 

The international schemes provide financial assistance to the production units of the nation to trade with international partners. The various international schemes help MSMEs participate in events at a worldwide level to explore export possibilities, advancement of technology, get admission to worldwide business networks, etc.