The Function and Role of Co-operatives in Providing

Elderly Care Ritsumeikan University/Consumer Cooperative

Institute of Japan (CCIJ)

Kohei Yamaguchi

Outline of Presentation

• Background of social welfare policy in Japan

• Introduction of long-term care insurance system and organizational environment change

• Co-op’s action to the change

• Problems and future prospects

Background and change of social welfare policy in Japan

1945 ～　 after WW2; “Relief of the poor” first

1960s ～ Service expanded with high-economic growth; formation of “men bread-winner model”

…Depending highly on family and corporation

1980s ～ Recognized the need of elderly care

…services expanded sharply by private initiatives

2000 Long-term care insurance system started

Long-term care insurance system

Change of elderly care by LTCI >Standardization of services

not depending on the care by family but certified professionals.

>Introduction of market mechanism

private firms, co-ops, and non-profit organization can be a service provider.

Elderly care and Consumer Co-op

1970s Emergence of Consumer Co-op

1980s “Kurashi-no tasukeai-no kai”(elder support group by co-op members) start and expand

… 74 co-ops: 66,377 members(FY2003)

2000 ～ Become Service Provider Organization of LTCI. …45 co-ops: \ 6.5B (FY2002)

Elderly care and Consumer Co-op(2)

Why Co-op provides elderly care?

>mutual help is important part of Co-ops.

>severe lack of service provider; LTCI scheme needs non-profit organizations and Co-ops.

>services of municipalities are not enough; need of variety services

Elderly care and Consumer Co-op(3)

Two directions / strategies;

(a)Kurashi-no Tasukeai-no Kai + Provider of LTCI

>major Co-ops like Co-op Kobe and Co-op Kanagawa takes.

>key advantages; many experienced / skilled worker

(b)Development & Supporting Workers Collective

>Seikatsu Club Co-op and Green Co-op.

>traditional co-op supporting new/small co-ops

Workers Collective as Social Enterprise

Social enterprises are;

“business but not for-profit; profits brings to local communities and business itself”

Dilemmas

• As elderly care become more important business and making actual result, the Co-operative advantages are getting lost.

• Introduction of market mechanism in the LTCI scheme; many co-ops lose their identities.

>What is the key advantages of Co-ops?

Role of Co-operatives

Elderly care’s structural problems;

>Information gap between provider and beneficiaries

>Provider dominance

Role of Co-ops are;

>Bridging the gap / Empowering their members through business and mutual help.

Thank you

kouhei.yamaguchi@jccu.coop