An ICA Policy for Co-operative Development
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This document has been made available in electronic format
by the International Co-operative Alliance ICA
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August, 1996
Source : An ICA Policy for Co-operative Development, Studies and
Reports, ICA, London, 1983, 28 pp. Hard copy available in French,
German, Spanish and Russian.
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An ICA Policy for Co-operative Development
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I. The Need for Co-operation...
In these times of unfulfilled hopes and aspirations, the
challenge to the world co-operative movement is greater than
probably ever before.
The arms race continues with unprecedented vigour, whereas
production for civilian purposes is declining. The gap between
rich and poor countries is widening, and so is the gap between
the privileged and the disadvantaged population groups in most
countries.
In the Third World, more than thirty per cent of the labour
force is unemployed or underemployed. The number of people
living in absolute poverty is approaching one billion. It is
estimated that 40,000 children die each day from starvation or
diseases aggravated by undernourishment.
These few data illustrate to what extent the world economy has
been distorted and social injustices have been sharpened. This
crisis has most severely hit the least developed countries and
the poorest strata of the population.
The prospects for improving the conditions are dark, as long
as large parts of the world's resources are wasted on
conflicts and unproductive armaments. Even under present
circumstances, however, it would be possible to alleviate much
suffering, to increase production and to pursue social justice
by vigorous efforts to bridge the gaps between rich and poor
countries. To this end, development strategies have to be
reconsidered.
It has not proved possible for the large strata of the
population in rural areas and in urban slums of developing
countries to acquire a considerable and lasting improvement in
their living conditions through investment policies which
increase the wealth of the rich and in the hope that it will
`trickle down' to the poor. Nor are the limited benefits that
can be given to people through centrally administrated social
policies sufficient.
Economic and social progress must, to a large extent, grow
from grassroots levels by active involvement of the
disadvantaged groups themselves. Such popular participation in
development efforts can and should be facilitated by
appropriate legislation, by measures for increasing
productivity, e.g. land reform, and by other forms of `help to
self-help'.
The United Nations' Assembly has stated that `the
establishment and growth of co-operatives is one of the
important instruments for full economic, social and cultural
development of all members of the society'. It has also
stressed `the important role that co-operatives play in the
socio/economic development of developing countries' (see
Appendix 1). There is a great and growing need for truly
democratic, economically efficient co-operative movements in
the world of to-day and to-morrow.
Governments and Co-operators of Developing countries are
expressing their interest in making full use of co-operative
working methods and practices.
II. Through Co-operatives
The International Co-operative Alliance is the non-
governmental organization representing the world co-operative
movement with its 360 million individual members. In this
capacity, it is the unique authority for formulation of co-
operative ideology and development policies at the global
level.
In pursuance of the resolutions adopted by the 27th ICA
Congress in Moscow 1980 and by the ICA Central Committee
meeting in Rome 1982, this document endeavour to formulate a
policy for the ICA in its task to assist co-operative
development efforts in the Third World.
This policy covers the period up to the year 2000. There are
two reasons for choosing this time span:
a) The United Nations Organization has set a number of
socio/economic targets for the year 2000. Such targets
include adequate nutrition, health for all, and other
social benefits. It is understood that they can only be
achieved by popular participation and self-help. The co-
operative movement has a significant role to play in this
development process.
b) The Laidlaw Report to the Moscow Congress dealt with
policies and developments up to the year 2000 with
special emphasis on the contribution of the co-operative
movement to development efforts.
III. ICA Support to Co-operative Development
1. Objectives
a) The basic objective of the ICA policy on co-
operative development is the establishment and
growth of independent democratic and viable co-
operative organizations, in which men and women
participate on equal terms. These organizations must
be capable of serving their members efficiently and
contributing to economic growth and social equity in
their respective communities and/or countries.
b) The ICA policy shall aim at strengthening
collaboration between co-operative organizations of
various types and in different countries, thereby
promoting the growth of international solidarity,
which is the foundation of a constructive peace.
c) The ICA shall endeavour to influence public opinion,
national authorities and international organizations
ins order to stimulate the growth of a favourable
atmosphere for co-operation, promote the enactment
of appropriate co-operative legislation and enlist
the support of government and international
organizations for the development of co-operative
movements.
2. Fields of action
a) Food and Nutrition: Social emphasis in economic
development in the Third World must be given to
increased food production in combination with more
efficient systems of food distribution and improved
knowledge of food processing and utilization.
There is ample evidence that land reform,
supplemented with other means, can substantially
increase productivity. In total, 600 million people
in the rural areas of the developing world lack
access to the land. As productivity in small labour-
intensive farms is usually considerably higher than
in the large estates, redistribution of land would
be an effective means of increasing food production,
especially if combined with agricultural co-
operatives, fishery co-operatives, productive and
workers co-operatives, supported by saving and
credit institutions. Development of the fishing
industry is of great importance for the supply of
food.
b) Urbanization and the Co-operative Movement: It is
estimated that by the year 2000, more than half of
the population in the Third World will live in urban
communities. Due to the fact that migration from
rural areas is added to the natural population
increase, the growth of the cities is very rapid.
The production of dwellings, water and sewage
systems, as well as the installations of transport
facilities, schools, retail stores, etc... do not
keep up with escalating needs. Consequently a great
and growing majority of the population will have to
live in slums and shanty-towns.
Slum improvement is one of the urgent policy areas
in developing countries. This is a field where `help
to self-help' is especially important and where
there is a large scope for co-operative activities,
not least in the fields of consumer credit and
housing co-operation.
c) Employment and Industry: Co-operative organization,
particularly in small and medium-scale industrial
enterprises, offers a viable alternative to other
forms of industrial organization. It is particularly
appropriate to the application of labour-intensive
productive techniques. Therefore, it is important to
promote industrial producers' co-operatives, both in
rural and urban areas. Industrial co-operatives in
urban areas can offer income-generating
opportunities for both men and women. Such co-
operatives in rural areas can contribute to the
provision of industrial products and at the same
time reduce the migration into the cities.
d) Savings, Credit and Insurance: Development is not
only a question of mobilizing human resources. It is
also necessary to mobilize capital and to ensure a
minimum degree of security against the risks of
life. It is true that in many developing countries
the State provides a certain amount of capital to
co-operatives, in the form of grants and loans.
Other sources of credit should also be identified.
However, if a co-operative organization is to stand
on its own feet and attain the necessary self-
reliance, it has to raise a considerable part of the
capital required from among its own members.
Savings and credit co-operative societies, which
have played and will continue to play an important
role especially in strengthening the economic
security of their members, at the same time provide
capital for co-operative investments. Co-operative
banks can make decisive contributions to the
establishment and expansion of co-operative
organizations in a financially sound way. The same
is true of co-operative insurance societies.
e) Other types of Co-operatives: There is a great
number of other co-operative organizations, for
instance in the fields of handicrafts, processing,
health and welfare services. Well managed they all
satisfy important needs of the members and of the
community.
In this context, it is essential to mention the
innumerable associations which are voluntary,
democratic, self-help organizations formed in order
to satisfy specific needs of their members - but
which do not meet all the requirements for
registration as co-operative movement. It may be a
group which digs a well, acquires a hand pump and
elects a person to be responsible for the
maintenance of the pump. Such `pre-co-operatives'
have been organized in great numbers by people -
often among the poorest groups of the population -
who join hands in solving common problems, be it in
urban slums (e.g. sewage disposal) or in rural areas
(irrigation, transport).
These self-help groups are natural allies of the co-
operative movement. There should be good
opportunities for many of them to develop into
formal co-operative organizations, given access to
the necessary guidance and training. In all
circumstances, however, the future will call for a
great variety of co-operatives of all sizes as well
as of pre-co-operatives.
3. Priorities
a) Development towards Self-reliance: in most
developing countries. governments pursue an active
policy for the promotion of co-operative
organizations in the frame of their own development
plans. Their objectives are the growth of self-
reliant co-operative movements. In order to achieve
this goal, weaning procedures should be designed,
which are acceptable to all parties. They should be
in the form of time-bound plans for the transfer of
functions - i.e. related to education and training -
from state institutions to the movement. Such
procedure shall be promoted and supported by ICA as
a matter of high priority.
b) Democracy: A co-operative organization can ret€democratic way. This pre-
supposes not only an effective democratic
organization, but also - and no less indispensable -
an enlightened membership. One of the high
priorities for ICA shall be to encourage and assist
member organizations in their endeavour to organize
an effective and committing member education. Its
resources have been very limited, but measures have
been taken to increase the capacity in order to
better meet the needs of member organizations. In
educational activities stress should be laid on the
involvement of women - a largely untapped resource
in co-operative democracy.
c) Involvement of Women: In a true co-operative
democracy men and women participate on equal terms.
ICA shall assist in the attainment of this objective
by influencing public opinion and by supporting
programmes that aim at raising the status of women,
e.g., by means of literacy campaigns, nutrition
education, income generating projects for women,
developing of thrift and loan societies. In all
these fields co-operation has proved to be an
effective instrument of change.
d) Education and Training: It has been both the faith
and the experience of co-operators that education
and training is necessary for healthy co-operative
development. Co-operative education is a basic
principle of co-operative action and it is essential
that education and training programmes should
continue to be accorded the highest priority and
adequate provision for this should be included in
all development projects. In particular, education
and training programmes for members as well as
committee and board members at field level are vital
for good co-operative performance. Without this, the
desired level and quality of popular participation
in the control of independent co-operatives cannot
be expected.
e) Professional Management: Another matter of high
priority is staff training. Too often, and not only
in developing countries, co-operatives fail because
of bad management. Co-operative organizations can
grow and improve their services only through the
professionalisation of management. Therefore, an
efficient system of co-operative staff training is a
vital necessity.
f) Promotion of Effective Personnel Policy: In order to
retain skilled staff, co-operative organizations
must establish comprehensive personnel policies,
including adequate recruitment and training,
competitive salary systems, job security and career
possibilities.
f) Promotion of National and Apex Organizations: The
promotion of national and apex organisations is an
important part of the development of an autonomous
co-operative movement. The main burden of promoting
the establishment and growth of local co-operative
societies will be carried by these unions or
federations.
h) Research: It is necessary that due attention is
given to the examination of needs for technical
assistance, project identification, feasibility
studies, monitoring and evaluation of co-operative
development programmes. These elements should be
included in all ICA supported projects, including
seminars and conferences. These elements should be
included in all ICA supported projects, including
seminars and conferences. ICA should, moreover, take
an active part in the search for innovative models
of development programmes.
4. Principles
ICA, as well as its member organizations, shall in their
promotion of co-operative development, be guided by the
Principles established by the Rochdale Pioneers in 1844,
reformulated by the 23rd ICA Congress in 1966 and contained in
the article 8 of the `Rules of the International Co-operative
Alliance'. (See Appendix 2).
5. Resources for Aid
a) Movement to Movement Aid: A considerable part of co-
operative development efforts takes the form of
Movement-to-Movement assistance. This has mainly
been given by movements in industrially developed
countries to co-operative organizations in
developing countries.
More and more, however, contacts and exchanges of
experiences are organized between movements in the
Third World as well. ICA should be in the forefront,
giving ideas and inspiration for co-operative
progress in the fields of action mentioned under
point 2. It is important for ICA to encourage
bilateral aid-activities among member organizations
and to collaborate with other international
organizations, especially within the UN system. It
is essential that ICA can play a co-ordination role
in relation to bilateral programmes and that it
receives all relevant information to that end.
b) ICA Regional offices: The activities of the three
ICA Regional Offices - which now exist in South East
Asia, in East, Central and Southern Africa, and in
West Africa - are devoted to co-operative
development. These activities include, inter-alia,
the:
- co-ordination of co-operative development
efforts within the region, and promotion of
exchanges of experiences.
- organization of regional seminars and
conferences on specific subjects; great
importance must be attached to project
identification, formulation, preparation and
evaluation.
- promotion of the establishment and development
of national co-operative apex organizations,
based on local co-operatives.
- support of programmes aiming at the involvement
of women in co-operative democracy; for this
purpose each Regional Office shall have in its
staff a specialist on women's programmes.
Within the time span covered by this policy document
-i.e. before the year 2000 - ICA shall endeavour to
respond to the requests from other regions to open
regional offices, provided that the necessary
financial resources are secured.
c) Auxiliary Committees: The ICA Auxiliary Committees
represent an important resource, especially in
fields of knowledge and experience, which shall be
fully utilized in the development of ICA supported
programmes. This resource should be used for
technical advice for recruitment and for specialist
training. Such assistance is already given by
several Auxiliary committees, e.g. in the fields of
insurance, banking, agriculture, trade, and
participation of women.
There is considerable need for expansion of such
activities, not least in the development of inter-
co-operative trade, at national, regional and global
levels. It is also important that national, regional
and global co-operative economic institutions be
developed.
d) ICA Co-operative Development Fund (CDF): The Co-
operative Development Fund was established in order
to provide means for ICA support urgent development
projects. In view of the increased challenges to the
international co-operative movement and more
substantial resources should be available for
innovative pilot projects. Examples of such efforts
could be mentioned: projects for greater involvement
of women in co-operative activities, for the
transformation of pre-co-operatives into regular co-
operative organizations, for the establishment of
income-generating co-operatives and the creation of
income generating projects for the poor. Increased
efforts should therefore be made in order to obtain
larger and more widely spread contributions from the
ICA member organizations to the CDF.
e) Government Development Agencies: In a few countries,
governmental bilateral agencies give substantial
financial assistance - partly through ICA - to co-
operative programmes in developing countries. In
view of the vital importance of people's
participation in the development process, it is
important that governmental agencies for bilateral
aid - wherever they exist - are made aware that the
International co-operative Movement can effectively
utilize financial contributions to the ICA for the
attainment of genuine development.
