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Presented by Sherlock Allen

DEPARTMENT OF CO-OPERATIVES AND FRIENDLY SOCIETIES CO-OPERATIVE SYMPOSIUM & EXPO: JULY 18 & 19, 2012. MUTUALS AND CO-OPERATIVE TYPE ENTITIES PROVIDING SOCIAL PROTECTION AMIDST CHALLENGES OF SUSTAINABILITY. Presented by Sherlock Allen

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Presented by Sherlock Allen

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  1. DEPARTMENT OF CO-OPERATIVES AND FRIENDLY SOCIETIESCO-OPERATIVE SYMPOSIUM & EXPO:JULY 18 & 19, 2012

  2. MUTUALS AND CO-OPERATIVE TYPE ENTITIES PROVIDING SOCIAL PROTECTION AMIDST CHALLENGES OF SUSTAINABILITY Presented by Sherlock Allen July 18, 2012

  3. OBJECTIVES • Definition of Co-operatives • Sharing the 7 Co-operative principles • Co-operation is a cornerstone of all social development effort so far unearthed • A deeper appreciation of the evolution of the Co-operation business model; • Discussion of issues in the prevailing Economic and Regulatory Environment • Identifying new Horizons For Growth & Expansion;

  4. DEFINITION MUTUAL SOCIETIES: Organizationsowned by their members and managed for their members benefits. In some jurisdictions they may include entities such as; BuildingSocieties, Friendly Societies, Industrial & Provident Societies, Credit Unions Lodges, Burial Schemes and Community Based Organizations. A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. (ICA definition statement) Classic

  5. DEFINITION Mutual Enterprises are autonomous association of persons united voluntarily, primarily to satisfy their common needs, and not to make profit or provide a return on capital. They are accountable to those whose needs they are created for. They are managed in accordance with solidarity principles by members who participate in the governance structure. European Commission (2012)

  6. COMPARISON OF DEFINITIONS The European Commission’s (EU) definition though more expansive, compares favourably with the classic definition. Both focusing on the autonomy of members, governance of the Societies, and primary objectives of Mutual Societies (membership needs and not for profit).

  7. The Co-operative Principles (Obj 2) • 1st Principle: Voluntary and Open Membership • Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious

  8. 2nd Principle: Democratic Member Control • Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organised in a democratic manner.

  9. 3rd Principle: Member Economic Participation • Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.

  10. 4th Principle: Autonomy and Independence • Co-operatives are autonomous, self-help organisations controlled by their members. If they enter to agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.

  11. 5th Principle: Education, Training and Information • Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation.

  12. 6th Principle: Co-operation among Co-operatives • Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.

  13. 7th Principle: Concern for Community • Co-operatives work for the sustainable development of their communities through policies approved by their members. Adopt a school Support a charity Highlight the elderly

  14. Historical Perspectives (0bj :3) AFRICAN ROOTS • For over 8,000Years,Co-operativism was the main mode of Cocoa production practised and it permeated village life throughout West Africa–Ghana, Nigeria, Cote D’Ivoire, Senegal • In traditional African culture, money was not a major issue: work came first, e.g. farm labour was provided on rotation; • “The Chiefs and Elders were the Board of Directors of each tribe” [James Nyamakeh[CaribDE-January 2012]. • CO-OPERATIVE CREDIT UNIONS EVOLVED FROM AFRICAN FORMS OF MUTUALITY THAT SURVIVED PLANTATION SLAVERY 1650-1838;

  15. SUGAR,SLAVERY & SURVIVAL • Exclusion from the money economy and from access to official trading encouraged retention of African forms of co-operation through „mutual help‟ and „survival savings‟. • e.g.The Saturday Night and Sunday Markets, • Maroons; Self-Help “Jollification”events; • POST EMANCIPATION ERA(1838-1938)especially as a result of access to lands (e.g. freehold villages), • Women Traders with complex trading interrelationships were central to the emerging sub-culture –Higglers, Turnhands, Hucksters, Rivendaises, Traffickers. • From Bartering to Money to “throwing hand” in Mutual Savings: Susu, Partners, Partnerhand, Boximoney…..

  16. Historical Perspectives For British Islands (obj 4) 1793: Act ( 33, Geo.III., c.54) passed; “For encouragement and relief of Friendly Societies”; giving Friendly Societies authority to make Rules not repugnant to the Laws. Securing by voluntary subscriptions of members; separate Funds for mutual relief of members in sickness, old age and infirmity. What we do today is not because we are bright . We inherited it

  17. Historical Perspectives Cont’d 1795: Act amended to include Benevolent & Charitable Institutions (35, Geo. III., c. 111) 1809: Act amended (49, Geo. III., c. 125) to give power to Justices to enforce observance of Rules and compel payment of arrears due to a Society 1819: Act amended (59, C-co. III., c. 128); encouraging people to make provision out of their own labour, instead of relying on parochial relief. 1829: Act amended (10, C-co. IV., c. 56); permitting collection of registration fee (1 guinea)

  18. Historical Perspectives cont’d • 1834: Act amended (4 & 5, Will. IV., c. 40); giving Societies authority to set table of fees. • 1840: Act amended (3&4, Vict., c. 73); restricting privilege of stamp duty and of investment not exceeding ₤200. • 1846: Act amended (9 & 10, Vict., c. 27); office or Registrar of Friendly Societies constituted (certify Rules, issue certificate of registration transfer properties, settle disputes, administer oaths, receive returns of Assets & Liabilities).

  19. Historical Perspectives cont’d Further amendments • 1852 • 1853 • 1854 • 1855 • 1858 • 1860 • 1866 • 1870

  20. Historical Perspectives cont’d • 1875: New Act passed (38 & 39, Vict., c. 60); permitting registration of Societies with branches (controlled by the central body). • Further amendments: 1876; 1879; 1882; 1883; 1885; 1887; 1894; 1895; 1896

  21. HISTORICAL PERSPECTIVE: Jamaica Mutual Aid Societies presented alternatives or helpmate to the economic crisis experienced. They also provided poor relief, funeral expenses, and assistance during illness, old age, disability and distress. Most Mutual Aid Societies as they were called were initially organized by churches and played basically the same role as they did in Britain. The British also exported Freemasonry to Jamaica.

  22. HISTORICAL PERSPECTIVE: Jamaica These Freemason offered assistance to members of the various Lodges, and was an organization of the upper class income gentlemen of the island as members. Friendly Societies a form of Mutual Aid quickly spread in Jamaica and by 1903 some twenty five Friendly Societies were registered. It must be noted however that just as how the Freemason Lodges attracted middle and income earners, the Mutual Aid Societies catered to the labourers and was attractive because of the savings component that they offered.

  23. HISTORICAL PERSPECTIVE: Jamaica The Friendly Societies Act & Regulations of 1966 facilitate registration under three (3) types • Friendly Societies • Benevolent Societies • Specially Authorised

  24. HISTORICAL PERSPECTIVE: Jamaica

  25. HISTORICAL PERSPECTIVE: Jamaica The Movement has grown significantly in numbers and to date there are approximately 350 societies registered; they no longer fall under the or other interested factions, but are under regulation and supervision of the Department of Co-operatives & Friendly Societies

  26. SOCIOLOGICAL IMPORTANCE: USA • 1735: First Mutual Society recorded in the US; Charleston, SC. Was liquidated in 1740 as a result of a fire which destroyed its offices. • 1752: Benjamin Franklyn founded the Philadelphia Contributionship Mutual Insurance Company; oldest continuing Mutual Society in the USA.

  27. Jamaican Statistics 2010 • 46 CUs, 955,762 (43%) members • US$550M Savings 120 Producers and Service CO-OPs

  28. SOCIOLOGICAL IMPORTANCE: USA • In the nineteenth & early twentieth century, immigrants to Chicago and other major cities formed Mutual Associations to meet theirs and their communities needs; such as insurance and home mortgages. • These immigrants, who were primarily Europeans came from communities that had strong local organizations that performed comparable functions back home.

  29. SOCIOLOGICAL IMPORTANCE: USA • During the Great Depression, Mutual Benefit Societies assisted the members in surviving the hard economic conditions. • In the aftermath of World War II, some of these Societies raised funds to assist in the reconstruction process in their homeland. • They also acted as agents of Americanization; participating in traditional cultural and sporting activities

  30. SOCIOLOGICAL IMPORTANCE: USA • Fraternal Orders were an enormous social force among American working people in the first half of the 20th Century; nearly as significant as Labour Unions. • They were diverse; self-selecting members by geography, ethnicity, religion and by character (Odd Fellows). • They had very strong & distinct hierarchical structures.

  31. SOCIOLOGICAL IMPORTANCE: USA • These Societies transcend classes and gave immigrants and other economically challenged classes the tools for advancing themselves, where government and the capitalist business structure were geared to keep them in their places. • Mutual Societies provided a powerful demonstration that people-based organizations could serve as an alternative method of organizing a complex modern society.

  32. SOCIOLOGICAL IMPORTANCE: USA • Along with Labour Unions, Agricultural Co-operatives, African Liberation Movements, Mutual Societies dispelled the view that economic competition was the only way for the human race to progress. • With the gradual integration of immigrants and other classes of people that were previously neglected by mainstream business enterprises, into the formal system, coupled with internal migration, the dependency on these Societies to fulfill social needs are less pronounced.

  33. SOCIOLOGICAL IMPORTANCE: CANADA • Co-operative marketing organizations began to appear in British North America in the 1840’s when British labourers attempted to establish Co-operative consumer stores similar to those in Britain. • The first bonafide Co-operative consumer store was established in Stellarton, NS in 1861. • Previously, Co-operative communities known as ‘Owenite’ community begun in Lambton County 1813.

  34. SOCIOLOGICAL IMPORTANCE: CANADA • Farmers were the first group to develop sustainable Co-operatives in Canada. • Between 1860 & 1900 farmers in Ontario, Quebec & Atlantic Canada developed more than 1200 creameries & Cheese factories to meet the needs of a rapidly growing dairy industry. • Mutual Insurance Societies were organized to provide inexpensive protection against the ravages of fire, hail and frost. • Later industrial workers & farmers formed Co-operative stores.

  35. SOCIOLOGICAL IMPORTANCE: CANADA • 1900: First Co-operative bank organized in Quebec. • 1909: The Co-operative Union of Canada was formed, as a national representative body & educational institution. • 1923: Prairie grain growers organized wheat pooling Co-operatives to gain greater control over the marketing of their produce. • 1940’s: War & postwar prosperity allowed the Co-operative Movement to gain power & prosperity.

  36. ECONOMIC IMPORTANCE: USA (Obj :5) • More than 300,000 Co-operatives in the US • 350 M members • 2 M Jobs • $3 T Assets • $654 B Revenue • $135.5 B Value added Income • $75 B Wage benefits • 79 B Patronage Refund & Dividends University of Wisconsin Center for Co-operatives: June 2009

  37. ECONOMIC IMPORTANCE: USA Commercial Sales & Marketing • Aggregate Revenue: $220 B • Total Income: $37 B • Wage Impact: $13 B • Employment Impact: 440,000 Jobs

  38. ECONOMIC IMPORTANCE: USA Financial Services • Aggregate Revenue: $400 B • Total Income: $100 B • Wage Impact: $51 B • Employment Impact: 1,133,000 Jobs

  39. ECONOMIC IMPORTANCE: USA Others • Aggregate Revenue: $57 B • Total Income: $16 B • Wage Impact: $10 B • Employment Impact: 600,000 Jobs

  40. ECONOMIC IMPORTANCE: CANADA • 9,000 Co-ops & Credit Unions • 17 M members • $330 B Assets • Employment Impact: 150,000 Jobs Canadian Co-operative Association (2012)

  41. SOCIO/ECONOMIC PERSPECTIVE: Jamaica

  42. ECONOMIC PERSPECTIVE: Jamaica

  43. ECONOMIC PERSPECTIVE: Jamaica

  44. New horizons for growth Colaborate Co-operate Cohabitate

  45. Textbook Co-operative • 40,000 grade 7 students move to grade 8 each year • A third of the books they use each year are not rental books and must be acquired • Thousands of good quality in use high school text go idle each year • Billions of dollars spent by parents to buy books that other parents have

  46. Ganja growers Inc • The product could be legalized soon • Think not just outside the box but outside the jail • Meet each year and tell what you do and listen to what others do and find new and better ways to do what you do and new things to do

  47. NOBODY UNDERSTANDS MICROFINANCE LIKE US

  48. Cautious Transition • “It is time for my generation to make way for younger people whose time has come, who are more in sync with 21stCentury realities, whose vision can have a longer scope and who can bring new energy to the enormous tasks that confront us…….. • We must not, for the sake of personal ambition, block their emergence.” [Said who?]

  49. INSPIRE & INVOLVE MORE YOUNG LEADERS AT THE TOP. BUT ARE THEY READY?adopted Adopted

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