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79th ICA International Co-operative Day
7th UN International Day of Cooperatives
"The Cooperative Advantage in the Third Millennium"

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The Cooperative Advantage - FAO´s Perspective

green ball FAO and Cooperatives green ball FAO study on Coop Capital Formation in Kenya
green ball FAO-ICA Collaboration green ball Agricultural Cooperative Development: A Manual for Trainers
green ball FAO Support to NEDAC green ball FAO Assistance
green ball The Gender Dimension green ball Continued collaboration with COPAC

The World Food Summit Plan of Action stipulates that:

FAO has always acknowledged the key role that rural cooperatives play in agricultural and rural development. In its 1996 World Food Summit Plan of Action, FAO also emphasizes the need for governments in cooperation in private sector and non-governmental organizations, to:

In FAO's view, as a generic term, "civil society organization" embraces a vast, heterogeneous and multifaceted "set of relational networks", and includes trade unions, self-help associations, cooperatives, women's groups, development and advocacy NGOs, and informal groups alike. However, given this great heterogeneity, priorities have to be set and FAO thus pays special attention to membership-based, representative self-help organizations of farmers, fisherfolk and foresters, in particular their genuine cooperatives. These cooperatives, in spite of many failures and shortcomings, are traditional organizations of mainly the poorer segments of society which have the potential to play an important role in developing a strong "social capital" in rural areas that is regarded as a pre-requisite for food security and sustainable development.

Yet the enabling environment within which rural cooperatives must operate today is markedly different from that which existed a decade ago. Structural adjustment programmes, a decline in donor financing of government budgets deficits and market liberalization has opened once-protected agricultural co-operative markets and led to a dramatic fall in government financial support to agricultural co-operatives. The consequence of these three factors has plunged agricultural co-operatives into an increasingly competitive business-environment, while at the same time creating a capital shortage crisis that many agricultural co-operatives are finding very difficult to handle. Therefore, if cooperatives are to demonstrate the "cooperative advantage" their business efficiency, including through Internet connectivity, need to be increased so that they can compete more effectively in global markets. Membership need to be promoted through improving the quality of cooperative business services offered to members and by giving them more a sense of ownership through their participation in the decision making process. Member investment in the cooperative business also needs to be encouraged and increased to finance growth. Cooperative laws and policies have to be changed to facilitate the process.

Converting these concepts into activities and outputs, FAO focuses its cooperative assistance programmes on three technical areas:

(Commitment Three, Objective 3.5)


FAO-ICA
Collaboration

After a meeting between Mr. Jacques Diouf, Director-General of FAO and the new President of the International Cooperative Alliance, Mr. Roberto Rodrigues, a Memorandum of Understanding has been prepared to ensure cooperation between FAO and ICA by consultation, exchange of information and coordination of efforts in fields of common interest, in accordance with the objectives and principles of FAO and ICA, with particular reference to the promotion of cooperative principles and methods in the areas of food, agriculture, fisheries and forestry, and related areas. The Memorandum of Understanding was signed by the Director-General of FAO and the President of ICA on the occasion of the FAO Conference in November 1999.

FAO Support to NEDAC

The Gender Dimension

FAO provides continued technical and financial support, also through its Regional Office for Asia and the Pacific (RAP) in Bangkok, to the Regional Network for the Development of Agricultural Cooperatives in Asia and the Pacific (NEDAC). NEDAC was established with the assistance of FAO and has been supported by both FAO Headquarters and the Regional Office. Recent milestones of the FAO assistance include the following:

  • FAO provided technical and financial support for the organization of the NEDAC Workshop on Financial Viability of Agriculture Cooperatives, held in Comilla, Bangladesh, from 20-23 May 1998
  • FAO sponsored the "FAO-NEDAC Training of Trainers Workshop on Agricultural Cooperative Development" held at the University of the Philippines Los Baños, College of Public Affairs, Laguna, Philippines, from 26 to 30 October 1998. (See separate box)
  • NEDAC Genaral Assembly was held, with FAO support, in Manila, Philippines, 8-12 November 1999
  • NEDAC Executive Committee Meeting was held at the FAO Regional Office for Asia and the Pacific (RAP), Bangkok, Thailand, 8-9 March, 2000
  • The FAO Regional Offcie for Asia and Pacific (RAP) sponsored and co-organised the NEDAC "Round Table Meeting on Globalization and Liberalization - Challenges and Options for Agricultural Cooperatives" held in Bangkok, Thailand, January 2001.
The world over, statistics show that women's participation in cooperatives is low, especially in rural cooperatives. Cooperatives have tended to be synonymous with "men's" cooperatives. Rural women's participation in agricultural cooperatives and their decision-making processes needs be increased, particularly in view of the important activities women carry out in the strive for food security through agricultural production, and the impact cooperatives have through its importance in their village life.

Cooperative law often condones such discrimination by providing that the head of the family attends meetings: the fact that the wife is often de facto - or even de jure - head of the family is not always seen as enough reason for her to participate. When cooperative laws are revised, all provisions which make for gender discrimination should therefore be weeded out to avoid aggravating the problems faced by women in their attempts to be integrated into the participatory cooperative structures.

In addition, with greater freedom to decide on the types of business to conduct through a cooperative, the way is open for the development of activities of specific interest to women such as small cooperative mills, food storage and preservation, production of household necessities like soap and clothing, small animal raising and handicrafts. More stress should also be laid on cooperatives' social function by organizing services which would relieve women from certain of their tasks: child care services or drudgery-reducing activities, or assist with organizing marriages and other ceremonies.

FAO Study on Cooperative Capital Formation in Kenya

This study on "Capital Formation and Kenyan Farmer-Owned Cooperatives" was carried out in collaboration with the Turku School of Economics and Business Administration, Turku, Finland and thanks to extra-budgetary financing received from the Government of Finland. Field research was conducted in Kenya during 1998 and focused on an in-depth examination of capital formation and investment behaviour in a sample of eight cooperatives within Kenya's dairy and coffee sectors. In January, 1999, FAO, in collaboration with the ICA Regional Office for Eastern and Southern Africa, held a sub-regional workshop in Moshi, Tanzania to discuss the findings and conclusions of this study and to come up with recommendations for follow-up action in the sub-region in which government and movement representatives from Ethiopia, Kenya, Tanzania, Uganda and Zambia participated. In late 1999, FAO published and distributed to COPAC members a summary report of the findings and recommendations of the study, and in early 2000, the final detailed report on the study was published by Turku School of Economics and Business Administration, Those interested in receiving a copy of the full report should contact: Dr. Pasi Malinen Business Research and Development Centre, Turku School of Economics and Business Administration, PO Box 110, FIN-20521, Turku, Finland.

Agricultural Cooperative Development: A Manual for Trainers

Globalization, trade liberalization, deregulation and changes in political and economic paradigms have led to major changes in the political, social and economic environments within which agricultural cooperatives operate. The decline of government assistance and growing competition from the private sector are now forcing cooperatives to re-assess their performance and seek ways and means to improve their business efficiency in providing better member services In the framework of its cooperative training of trainers programme aimed at helping developing countries and countries in transition transform their agricultural cooperatives into genuine self-help organizations, FAO has published in English an innovative manual geared to encouraging greater membership participation, improving management and familiarizing political and administrative decision-makers with new cooperative development approaches. The training manual is composed of seven modules, as follows:

  • Understanding Cooperatives,
  • Participation & Learning,
  • Communication
  • Organizational Development,
  • Cooperative Management,
  • Tools for Planning and Organizing Cooperative Activities,
  • Participatory Appraisal, Monitoring and Evaluation.
Throughout these modules, the manual deals with ways in which trainers and promoters of cooperatives can support cooperative members and management in the development of their cooperative organizations. Its objectives are:

  • to broaden the trainers´ view of their role, and ways in which they can react to circumstances, and to increase their confidence in their own capabilities. In short, to increase their competence.
  • to help the trainer become an effective facilitator and moderator. That is to say, someone who can offer new methods for dealing with problems and tasks, assist in solving conflicts, draw attention to alternatives and assist in the more effective operation of the cooperative.
  • to equip the trainer with tools to act as a resource person, providing information to the cooperative organization, its members, leaders and managers.
  • to familiarize the trainer with participatory techniques which involve all parties concerned with the future of cooperative organizations.
  • to support the trainer in the various tasks of raising awareness among cooperative promoters, members, decision-makers, leaders and managers of their problems/constraints as well as in their potential/capabilities, without taking the initiative away from them.
The manual will guide trainers through the process of training by providing a standard structure in each module, including the following units: Objectives of the unit, Key learning points, Teaching strategy, and Reference information. A range of examples and exercises are also given.

The English version of the training manual has been published and is now being disseminated. The French version of the Manual has been prepared and is being printed for publication. At the same time, the Spanish version has also been prepared and field tested. In addition, a computer presentation on the use of the Manual has also been prepared.

FAO has assisted in:

  • Capacity building for Promotion of Cooperative Small Farmer and Women Group Activities in Thailand (implementation in progress)
  • Capacity-building for agricultural cooperative development in Yemen (1999, completed)
  • Developing agricultural producers' unions in Turkey (1999, completed)
  • Comparative policy and programme development in Vietnam (1998, completed)
  • Preparing for the restructuring and institutional strengthening of the cooperative sector in Morocco (1998, ongoing)
  • Analyzing the potential role of cooperatives and rural finance in an EU accession environment (1998, ongoing)
  • Organizing a national workshop on training of trainers in cooperative membership development in Slovenia (1997, completed)
  • Revitalizing the Regional Network for the Development of Agricultural Cooperatives in Asia and the Pacific (NEDAC) (1997)
  • Training of trainers in cooperative development in Ethiopia (1996, 1997, completed)
  • Enhancing farmers' participation in cooperative development in Tanzania (1996, completed)
  • Conceptualizing and applying the "Systèmes de gestion appropriés des coopératives de petits exploitants agricoles (GACOPEA)" training approach in Burkina Faso (1996, completed)
  • Strengthening the capacity of the Office de Développement de la Coopération (ODCO) in Morocco (1996, completed)
  • Agricultural cooperative building and training in the North of Thailand (1995-96, completed)
  • Strengthening cooperatives' role in horticultural development in Madhya Pradesh, India (1995-96, completed)
  • Developing a new cooperative system in agriculture in Vietnam (1995, completed)
  • Organizing an international workshop on cooperative legislation in China (1994, completed)
  • Promoting cooperative "recon-version" programmes in the MERCOSUR countries in Latin America (1994, ongoing)
  • Strengthening the capital base of rural cooperatives in India, Tanzania, Kenya and Guatemala (1993, ongoing)
  • Testing small group- and cooperative-based participatory training approaches in collaboration with the Cooperative College, Moshi, Tanzania (1992-95, completed)
  • Developing new legal policies encouraging healthy independent rural cooperative growth in Ethiopia, Guinea, Tanzania, Vietnam and India (1990-96, completed)
  • Building sub-village self-help groups in the framework of its People's Participation Programme in Ghana, Kenya, Lesotho, Nicaragua, Pakistan, Sierra Leone, Sri Lanka, Tanzania, Thailand, Zambia and Zimbabwe (1982 1997, completed)
  • Organizing series of workshops on the problems and strategies of the transformation of agricultural cooperatives in the transitional economies of Central and Eastern Europe (1992-95, completed)

Collaboration with COPAC

FAO, one of the founding members of the Committee for the Promotion and Advancement of Cooperatives (COPAC), which also hosted the COPAC Secretariat between 1971 and 1996, continues to provide its technical and financial support for the operation of this unique international cooperative organization. The World Food Summit Plan of Action and FAO's new policy puts a strong emphasis on the importance of building new partnerships, networks, and coalitions among governmental and non-governmental organizations for sustainable agricultural and rural development and food security. COPAC is considered one of the best examples of successful networks at international level, which was established far before the issue became such a high priority on the global agenda.

In light of FAO's new policy of strictly linking expenditures to outputs, increasing importance is attached to the complementarities in the activities of FAO and COPAC to make sure that COPAC will produce important outputs which, without COPAC, FAO would not be able to produce. The main areas of collaboration between the Rural Development Division of FAO and COPAC are as follows:

Preparation of a typology of and lessons learnt from existing strategic alliances of cooperatives, farmers' and rural workers' organizations at grass-roots level and proposals for enhanced strategic alliances.

As a follow-up to the World Food Summit, FAO's Rural Development Division has been actively involved in the promotion of the ACC Network on Food Security and Rural Development at both international and national level. At national level, Thematic Groups on Rural Development and Food Security have been established in the framework of the Network, in which international and national public and civil society organizations work together to enhance synergies in their activities for sustainable food security. The COPAC study, completed in 2000, contributed to extending the scope of Thematic Groups' to grass-roots level by providing a series of case studies on successful examples of strategic alliances among the primary organizations belonging to the constituencies of COPAC, such as agricultural and other rural cooperatives, credit unions, farmers' and workers' organizations, trade unions.

COPAC Web Site and Databank Project Follow-up to the COPAC Open Forum on Successful Cooperative Development Models in Central and Eastern Europe

In 1998, FAO's Rural Development Division and its Sub-Regional Office for Central and Eastern Europe launched a joint project entitled "Institutional Patterns of Rural Development in the Countries of Central and Eastern Europe".
The long-term objectives of the ongoing project are to develop post-transitional institutional models of rural development for the specific conditions of the former centrally planned economies of Central and Eastern Europe. Cooperatives call for particular attention in the process of institutional transformation in the sub-region. In 1998 COPAC arranged for a series of country case studies on successful surviving and new cooperative forms for discussion at the Forum, the findings of which were consolidated in a synthesis report. In 2001, COPAC, ICA Europe and FAO collaborate with the EU TACIS project ""Promoting Co-operative Ventures for Independent Farmers" in Russia in organizing an International Conference. The main objective of the Conference will be to discuss and share the experiences gained through the implementation in Russia of the EU TACIS project. Within this broad objective, FAO and COPAC will take the opportunity to collect specific information for potential future agricultural cooperative assistance programmes in the region, with particular reference to cooperative capacity building through training.

COPAC Web Site and Databank Project

In the framework of these COPAC activities, FAO supports the establishment of an interactive databank of useful agricultural co-operative business/trade information, including agricultural market analysis and trade forecasts which could be accessed by agricultural cooperatives in developing countries, in particular in the Africa region. This interactive databank complements FAO's current efforts aimed at strengthening agricultural cooperative capital formation and investment decision-making in that region and is a logical follow-up to recommendations arising out of the recent sub-regional workshop on that topic. Furthermore, the COPAC web pages include links to FAO information on cooperatives - highlighting new publications on the Rural Administration and Cooperatives.

COPAC Open Forum: World Food Summit: Five Years Later

In November, 2001, FAO will hold a major meeting entitled World Food Summit: Five Years Later. As a parallel event, COPAC will organise a forum during the meeting to raise political will and financial resources to fight hunger by seeking support for cooperatives. Governmental enabling approaches and best practices of partnership will be presented through case studies to demonstrate the effective contribution of cooperatives in eradicating poverty and fight hunger. COPAC will also facilitate the participation of panellists and assist in ensuring that audio-visual presentations could be made.


For further information, please contact:

Rural Development Division
Food and Agriculture Organization
of the United Nations
Viale delle Terme di Caracalla
00100 Rome, Italy

Web site: http://www.fao.org/sd/ROdirect/ROhomepg.htm


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Posted: 9 June 2001