Ufa is the largest city of the Russian Federation. It lies on the bank of the mighty Belaya (White) River, which flows through the country. For many centuries, it was a centre of trade, finances and culture with the most famous city wall in the world: the city wall of Ufa. During the period of the Mongol Empire, their biggest city was also located here, Bashnarkot.
In the early days, Ufa was a thriving metropolis along the river banks, but as time changed things got gradually changed with the coming of motor vehicles and steel industry. But till present day, the co-operative UFA is active in providing housing to the homeless, giving them proper homes and an opportunity to live a normal life. The homeless people were also offered a job in the steel plants or in some big construction companies. A large number of students from different countries opt for this job, which further increases its popularity.
However, a major part of Ufa’s income is garnered through a special property known as ufa property which has a patronage dividend attached. The property is owned by the co-operative, but under the management of an elected board. The board decides how much of the income will go to the dividend and how much will be channeled into other projects. Besides, it is also decided what proportion will be kept in the ownership of every member of ufa.
Generally, a certain percentage of ufa income will go into the equity of each member and they are entitled to a certain percentage of that equity as their annual income. They get this share because they have chosen to become a part of ufa and they have no option to leave. As a matter of fact, there are very few people who wish to quit the association even when they are being served with legal notices. But the flip side of this is that if they don’t give the required contribution in time, the case can be filed against them and the court can levy a fine or take away their membership share.
Another way by which the income is channeled is through the patronage dividend. This is actually the most common practice in Ufa. When a person becomes a member of ufa, they are given a card with an emblem on it. The card contains the symbol of a cross and hence the members are identified as the ones who are in direct relation to the patronage dividend.
If the members live in Ufa houses, the income is channeled into their monthly house payments and they are entitled to a small portion of that income as their annual membership dividend. It means that for every five hundred dollars of investment share equity, ten dollars of the patronage dividend is fixed. Thus, for all those who have a regular monthly income from employment, they are entitled to a percentage of that monthly income in relation to the total amount of income they receive. It is actually a great system and has been working pretty well for a long time now.