Cooperatives in general are considered to be in crisis, dominated by self-centered and short-sighted outsiders seeking power. The Primary Agricultural Cooperatives (PACs) in India, which were considered to be the nucleus of rural life, have lost their values and character and appear to have nothing to do with the people whom they were intended to benefit. This is due to: the PACs' failure to recycle credit effectively; their failure to become self-supporting; and intervention and interference in the form of State partnership. The three factors are closely interrelated.