By Satish Marathe
The Co Operative sector worldwide has about one billion members in over 100 countries. Across different countries, the proportion of the Co Operative membership to population varies, but is as high as 1 in 2 persons as in Finland and Singapore, 1 in 3 in Canada, New Zealand, Honduras, and Norway, 1 in 4 in the USA, Malaysia and Germany. Viewed in terms of households, Co Operative membership represents as much as 1 in 2 households in Finland and 1 in 3 in Japan.
In terms of percentage of a country’s GDP attributable to Co Operatives, the proportion is highest in Kenya at 45 per cent, New Zealand with 22 percent. Co Operatives account for over 80 per cent of milk production in Norway, New Zealand and the USA. They account for 71 per cent of fishery production in Korea, 40 per cent of agriculture in Brazil, 25 per cent of Savings in Bolivia, 24 per cent of the health sector in Colombia, 55 per cent of the retail market in Singapore, 36 per cent in Denmark and 14 per cent in Hungary.
It is estimated that Co Operatives account for more than 100 million jobs around the world.
Today as the world faces unstable financial systems, insecurity of food supply, growing inequality, rapid climate change and increased environmental degradation, it is increasingly compelled to consider the model of economic enterprise that Co Operatives offer. The Co Operative sector, especially in developing countries, also presents itself as an important element that can contribute to the realization of the Millennium Development Goals (MDGs).
The current financial crisis characterised by massive public bail-out of private, Investor – owned Banks has underlined the virtues of a member-owned Co Operative Banking system. Co Operative Banks in the form of Credit Unions, Co Operative Banks and Building Societies – by focusing primarily on the needs of their members – have displayed prudence and avoided the excessive risk-taking that plagued many large global Banks and financial institutions.
There are some 52,000 Credit Unions serving 177 million members in 100 countries under the umbrella of the World Council of Credit Unions that continue to operate and grow despite the ongoing financial crisis that began in 2008. Even the larger Co Operative Banks, such as Rabo Bank which is one of the largest agricultural Banks in the world, continues to grow from strength to strength demonstrating the value of the Co Operative Banking model.
The World Banks estimates that food demand will double by 2030 as the world’s population increases by another two billion people. There is an urgent need for developing countries to increase output of food. The solution lies in encouraging farmers to mobilise collectively in Agricultural Co Operatives that engage in the production, processing and marketing of agricultural produce and give them access to markets. Hence, Farmer Co Operatives are needed to grow in all countries. Nevertheless, Farmer Co Operatives to reach their full potential, need finance and technical support.
In rural areas, Savings and Credit Co Operatives provide access to financial services, which are lacking. Credit Co Operatives play an important role in the promotion of small and micro businesses. They bring the kind of financial “deepening” that is necessary to reach the poor for sustainable growth.
