CO-OPERATIVE & POVERTY REDUCTION Presentation by: ROBBY TULUS Former Regional Director International...

CO-OPERATIVE & CO-OPERATIVE & POVERTY REDUCTIONPOVERTY REDUCTION

CO-OPERATIVE & CO-OPERATIVE & POVERTY REDUCTIONPOVERTY REDUCTION

Presentation by:

ROBBY TULUS

Former Regional DirectorInternational Co-operative

Alliance

7th Asia- Pacific Co-operative Ministers’ Conference

New Delhi, February 2-6, 2004



CO-OP & POVERTY REDUCTION: CO-OP & POVERTY REDUCTION: Past & PresentPast & Present


Shifts in Anti-poverty strategies:

• 1970s: Piece Meal or Band Aid Development Strategy

• 1980s – 1990s : Structural Adjustment Program (SAP)

• 2000s: Poverty Reduction Strategy Paper (PRSP)



1. 1970s: Anti-Poverty program used “Band-Aid” development approach

2. Co-ops became conduits for Anti-Poverty Programs

3. Dependency syndrome and beneficiary mentality created

4. Senegalese Proverb:

“He who wants to help nine poor risks to become the tenth.”

CO-OP & POVERTY CO-OP & POVERTY REDUCTION: Past & REDUCTION: Past &

PresentPresent

CO-OP & POVERTY CO-OP & POVERTY REDUCTION: Past & REDUCTION: Past &

PresentPresent 1970s

• SELF HELP WAS ABSENT : Co-operative Development was essentially based on a top-down approach.

• Government’s original role as enablers (regulators & educators) changed to become users and managers of co-op enterprises.





STRUCTURAL ADJUSTMENT PROGRAM (SAP) – 1980s 1990s

Developed in 1980s by the Bretton Woods Institutions for debt repayment and new loan qualifications.

Focus was on Export-led growth, privatization, liberalization and efficiency of the free market.

STRUCTURAL ADJUSTMENT PROGRAM (SAP) – 1980s 1990s

SAP also became the main impetus during 2nd, 3rd and 4th Co-operative Ministers Conference in Jakarta (1992), Colombo (1994) and Chiangmai (1997)

Weakness of the SAP approach became clear after the Financial Crisis, esp. during 5th Conference in Beijing

Trickle-down economics did not work.

STRUCTURAL ADJUSTMENT PROGRAM (SAP) – 1980s

1990s

STRUCTURAL ADJUSTMENT PROGRAM (SAP) – 1980s

1990s

Contributed towards increased social & economic disparity

Increased poverty despite IMF & World Bank claim that SAP will reduce poverty

Happened at a time when social safety nets were being dismantled





POVERTY REDUCTION STRATEGY PAPER

POVERTY REDUCTION STRATEGY PAPER

Emergence of a new rethink about Poverty Reduction

Conceptualized in September 1999 during Annual Meeting of WB/IMF

Core principles are conducive for achieving Millennium Development Goal (MDG) of the UN.





CORE PRINCIPLES OF PRSP

Country driven Results-Oriented Comprehensive Partnership-Oriented Based on a long-term

perspective

INVOLVEMENT OF CO-OPS IN PRS

PRS deals with common issues relevant to developed & developing countries

Common issues: sustainability, inclusiveness, good governance, people’s well-being (a better life)



Co-ops are not just “for the poor”

Co-ops develop around an economic opportunity(usually due to a market weakness)

Co-op model is a way people choose to exploit that opportunity

Poor and less poor have a product to contribute – co-ops provides the self-help tools.





CO-OPERATION AMONG CO-OPS Successful co-ops in developed Asian

countries can help struggling ones in developing countries. Why?

Best practice of IFFCO, NACF, NTUC Income etc. demonstrates that government support is important at the outset.

However, success happens if professionalism have developed, and members are confident and more self reliant and ask government to withdraw support (e.g. Equity at IFFCO).

CO-OP OUTREACH WITH NETWORK PARTNERS

CO-OP OUTREACH WITH NETWORK PARTNERS

CO-OP MUST work together with other sectors: government, private, and CSOs in implementing PRS;

Build on best practices in PRS:e.g. SANASA, Amul Dairy, Fertilizers co-ops, SEWA, CUs in Indonesia & Thailand etc.






However, economic growth is not sufficient to reduce poverty:

The financial crisis demonstrated that the vulnerable masses slipped back into poverty

Poverty also stems from socio-political and socio-cultural factors, affecting the ability of a person to participate in decisions affecting his/her life

CHALLENGES & OPPORTUNITIES FOR CO-OPERATIVES IN ASIA

Challenges:

900 million of world’s poor live in Asia (surviving with less than $ 1/day)

Nearly one in three Asians is poor

South Asia constitutes 50% of the world’s poor, of whom 450 million live in India

PRC has 225 million poor, 55 million more than South East Asia



OPPORTUNITIES FOR CO-OPS:

1. PROMOTE GOOD CO-OP GOVERNANCE

2. SHARE BEST CO-OP BUSINESS

PRACTICES





GOOD GOVERNANCEGOOD GOVERNANCESuccessful Co-ops in Asia build pillars of good governance: transparency, accountability, risk-control, democratic.

These pillars are critical to:

Improve organizational performance Promote economic stability Facilitate growth Increase effectiveness of resource

utilization Enhance credibility of the co-op

organization





LEARN FROM CO-OP BEST PRACTICES OF :

Consumer protection: the Japanese Experience

Competitive Strength of Agricultural Sector: NACF - the Korean Experience

Preserving ICIS in era of competition: IFFCO – the Indian Experience

Business & community development model: NTUC Income – the Singapore Experience

RECOMMENDATION I:

It is recommended that the Delhi Conference confirms and advocates to the UN and other relevant Development Agencies the contribution co-operatives can make in the area of Good Governance and Business Development as value-added features in Poverty Reduction Strategies being undertaken by governments in ICA member-countries in Asia.

WOMEN EMPOWERMENT

Women suffered disproportionately from the burden of poverty

Women are systematically excluded from access to essential assets

Hence the need for empowerment to improve their status in leadership and participation in decision-making.

GREATER OUTREACH IN PRS

People-initiated and member-driven co-ops have poverty-orientation

Not only do they raise capital based on self-help, they also build human and social capital

People-initiated and member-driven co-ops have poverty-orientation

Not only do they raise capital based on self-help, they also build human and social capital

CO-OP: THE CONSCIENCE CO-OP: THE CONSCIENCE

CO-OPS stand out among civil society organizations:

They have build local, national, regional, all the way to global networks and structures

They have a universally agreed set of principles (ICIS)

They have concern for the community, and are efficient business enterprises at the same time





Government“The State”Political System

Business“The Market”Economic System

Community Organization“Civil Society” Social System

CO-OPS: “The Conscience” > Balancing Socio-Economic Systems

CO-OPERATIVE OUTREACH

ILO Regional Workshop on PRSP in November 2003 showcased co-operative advantages to deal with the poor;

Recommendation 193 is an empowering tool;

Co-ops must reach out further to the enterprising poor;

MFI & SME are modernized versions of past co-op traditions.

CO-OP OUTREACH CO-OP OUTREACH

Linking savings and loan programs with education & training activities to reduce poverty

The XINJIANG Case Study

USE OF IT for providing services among the enterprising poor in local communities: home-workers, child-care, drivers etc.





CO-OP OUTREACH CO-OP OUTREACH

This issue was addressed, and became a key recommendation at the 6th Kathmandu Conference:

The pace and depth of globalization created the urgency for public policy debates to formulate legislation & policies that supports co-op members who are being excluded.

This issue was addressed, and became a key recommendation at the 6th Kathmandu Conference:

The pace and depth of globalization created the urgency for public policy debates to formulate legislation & policies that supports co-op members who are being excluded.

CO-OP OUTREACHCO-OP OUTREACH

5th BEIJING CONFERENCE became a major landmark, urging co-operatives and governments to establish new forms of co-operation – the building of viable networks and the joint efforts to seek ODA support.

RECOMMENDATION 2RECOMMENDATION 2

It is recommended, therefore, that the Delhi Conference not only assess the progress and intensity of co-operation between the government and the co-operative movement – or the lack thereof – but also to seek a new strategy through which co-operatives can become an integral part in the PRS process being undertaken by the corresponding governments in ICA member countries.





RECOMMENDATION 3

It is recommended that the “Delhi Conference” resolves to bring about enhanced partnerships among governments, CSOs and Co-operative movements – supported by international partners such as ILO, ICFTU, FAO and other relevant partner agencies – to ascertain that the co-operative sector becomes an integral part of the PRS processes being undertaken in ICA’s current as well as potential member-countries.

THANK YOU7th Asia- Pacific Co-operative Ministers’ Conference




Successful co-ops in advanced countries have developed time-tested instruments to adopt BUSINESS efficiency and professionalism

The value of equity and equality help the poor to increase their well being: a lesson from growth-based co-operatives.





CO-OPERATIVE & POVERTY REDUCTION Presentation by: ROBBY TULUS Former Regional Director International...

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