Written by: Gandulam Chuluu, MEL Specialist, EMIRGE Mongolia I became a member of EMIRGE Mongolia team quite recently, in March 2017. Straight away, I got immersed into the activities, which our team conducts for the program-supported co-operatives as well as dairy and vegetable sector stakeholders. My role in the project is as a Monitoring, Evaluation & Learning Specialist. In this role, I would like to share my knowledge of an activity that is facilitating how different co-operatives are learning and collaborating with each other. This activity is playing an important role not only within the EMIRGE co-operatives in Mongolia, but also in global co-operative development. The activity is the “Co-operators’ World Club,” initiated by the EMIRGE Mongolia team in August 2016. At the time, there were no any other similar set-ups in Mongolia, and there was a need for such a club in order to provide continuous flow of information and knowledge, and thus, to support the smooth development of the EMIRGE-supported co-operatives. The Club provides a lasting opportunity for the co-operatives to share their experiences, exchange ideas and best practices. On the other hand, through the Club, the EMIRGE team is organizing discussions on the co-operatives’ challenges, on improving the governance and leadership, increasing the efficiency of cooperative businesses, and other capacity building activities. The Club members meet on the monthly basis in Ulaanbaatar in a venue provided by EMIRGE. Any member of the EMIRGE co-operatives can attend it, but from the experience so far, mostly the co-operative leaders or the most active co-operative members regularly join the Club meetings. Sometimes, members of a certain co-operative takes turns, so that the coverage is even and they can substitute the members busy at the co-operative’s site. Each monthly meeting is being held under a specific agenda related to the co-operative development, which is covered by using interactive facilitation tools, such as active knowledge exchange, case presentations and group discussions. Many crucial co-operative development subjects, such as expanding membership, motivating existing members, conducting efficient all members’ and Board of Directors’ meetings, financial regulations and reporting, creating transparency and resolving internal disputes have been discussed at the Club. In addition, each Club meeting has a sub-topic discussed, which is not necessarily directly linked to the cooperative development, but, nevertheless, the Club members are interested in. As an example, as a person with the public health background, I had an opportunity to present about the nutrition basics and organize a small interactive trivia game on it, which the Club members clearly enjoyed. I believe that the Club is a valuable platform that is presented as an informal and friendly environment where the members can freely exchange not only their knowledge and experience, but also are giving each other much needed advice. In many occasions, the Club members discussed together the challenges faced by a certain co-operative and would come jointly to a good solution. I observed that the Club members also are attracted by the welcoming atmosphere. What is more, the Club helps to create a really effective network among all the program co-operatives, and they continue to interact outside the meeting room to visit each others’ sites to exchange and sell products. The Club is a successful activity and the members have further plans to develop the Club. For example, they created their own logo and EMIRGE is supporting the Club in its branding and promotion among local communities and outside co-operatives. Also, Club members are considering establishing the Co-op World Club’s branches at local sites.
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The Co-Operatives Principles Are Key for Democracy, Social Justice and Peace Building in Kenya9/24/2017 Written by: Mark Matabi, Co-operatives Specialist / Country Lead, EMIRGE Kenya The 2017 general elections have had twists. After the nullification of the August 8th 2017 presidential elections, repeat presidential elections will be held on 17th October 2017. The Supreme Court annulled the presidential poll results on the basis of ‘illegalities’ and ‘irregularities’. Before, during, and after the elections, Kenya is characterized by cases of political tensions and chaos in parts of the country. A key lesson from these occurrences, is the unpassed test of the spirit of democracy, social justice and peace building. The immensity of ‘steam’ thereof, seriously threatens to ‘choke’ the nationhood and socio-economic activities. This connotes a citizenry whose aspirations are dampened by the current nation’s value systems. One thing that seriously needs redress in Kenya, to end periodic electoral malpractices and political tensions and violence, are community structures to nurture democratic and societal values that re-define citizens’ principles. Just as the ‘Nyumba Kumi’ initiative has helped to curb community-level insecurity, co-operative societies are such community structures – to promote authentic democracy, social justice and peace. How? It is in the annals of Kenya’s history how the co-operative and labor movements played a critical role in the country’s independence. The independence brought tears of joy and not anguish. Peace, Love, Unity and ‘Harambee’ (self-help) became the country’s slogan. Subsequently, the country’s history has shown that the slightest interference with co-operative and labor movements deteriorates the slogan and the spirit thereof. The results have been growing tribalism (and even nepotism and clannism), corruption, intolerance, tension, violence, and many more social ills; not only at the national, but also at the regional and community levels. Co-operative structures, principles, and values can remedy these ills. How? Firstly, co-operatives are democratic business organizations equally owned and controlled by a group of community members by common-bond admission – all are co-operators, period. Membership is none discriminatory – no tribe or region is greater than the other. One member one vote – and no dead voter or voting by proxy during the election of leaders or policy. Because co-operatives are democratically owned by community members, co-operatives keep much of their money and jobs in their communities. Much of co-operative’s money is not stuffed in foreign banks; jobs are created for people living in the co-operative community – youth, women and people living with disability. Secondly, co-operatives offer achievable and practical solutions, to many economic, environmental and social problems that can be implemented right now. ‘Manifestos’ shouldn’t just impress the electorates, but should also be achievable and practical, based on the strategic plan or vision of the co-operative, and economic factors. Thirdly, co-operatives are an empowerment means for self-help and solidarity of members. Co-operative leadership builds infrastructure, such as the industrial parks. They promote community empowerment rather than giving hand-outs among its populace, to attract votes. Everyone has a gift and should therefore engage in co-operative community and business building. This should be the path of Kenya’s politics. Fourth, co-operative members equally share the burden in hard times and equally share benefits in good times. The co-operative’s populace is not ‘forced’ to share grief in hard times – to pray or even sympathize with ‘our leader’. Co-operatives emphasizes the need to genuinely embrace the shared leadership and ‘citizenry’. Fifth, co-operatives strive to make members’ lives, communities and economies more just, equitable and democratic. The leaders are transparent about what they borrowed or generated and how they used it for the co-operative’s sake, they do not lie or engage in cheap public relations, and they do not disfranchise members nor offer skewed development on perceived voting patterns. It cannot happen, because members are well educated and informed on their rights and responsibilities as shareholders. Sixth, co-operatives are more resilient in economic downturns and in impoverished communities. Being viable and just alternatives for meeting social and economic needs, co-operatives do not shut down, or lay off, or fail to pay workers. Instead co-operative members pull together to work out solutions – without castigating fears or intimidating others. Furthermore, leaders do not ‘loot’ the co-operative through shady ‘solution’ deals such as importation of raw materials, and privatization of co-operative businesses, without following the by-laws. Finally, co-operatives are an international movement. There are thousands of co-operatives around the world making significant impact locally and globally. Co-operatives are implementing sustainable development goals, and undertaking actions that positively impact neighbors, and the whole globe. A true co-operator is made to use the ‘head’ and not the ‘belly’ to think, talk and act. Social and political injustices and tensions thereof are fueled by the ‘belly’ values. Community structures like co-operatives instills ‘head’ values of, ‘I am because WE are, and since WE are, therefore I am’, as postulated by Kenya’s own Theologian, John Mbiti. If this rings a bell on ways and means of promoting democracy and/or ending tribalism, corruption, tensions and violence in Kenya, then the roots of co-operatives in the country must be retraced and embraced. Promotion and strengthening of the co-operative societies in the country need serious re-examination and consideration under the new government(s). The USAID/EMIRGE program in Kenya is such a co-operative development initiative, empowering youth, women and people living with disabilities in Kenya’s rural and informal settlements, to address community love, peace, unity and prosperity. Let us create an environment for co-operative development and promote co-operatives for nurturing democracy, social justice and peace building in the countries and communities! Written by: Mark Matabi, Co-operatives Specialist / Country Lead, EMIRGE Kenya The Greek philosopher, Heraclitus, in wisdom is remembered by his startling quotes about change – ‘change is the only constant thing in life’; and “no man ever steps in the same river twice, for it is not the same river and he is not the same man”, because be it the man or the river, they are constantly changing. In the today’s rapidly changing world, exhibited by emerging socio-economic challenges, the role of a development change agent cannot be underestimated. Global Communities, through the USAID funded Enabling Market Integration through Rural Group Empowerment (EMIRGE) Program in Kenya, is playing the role of a change agent in the co-operative movement. It is on the verge of re-writing the history of co-operative movement in the country. The co-operative movement in Kenya has a long history from the colonial to post-colonial to post multi-party democracy era, to today’s new constitutional dispensation. From the production to housing and financial focus, these activity sectors have, doubtlessly, over the years put the country on the global co-operatives map – being number one in Africa and number seven in the world. But today, the emerging youth and employment trend challenges, are definitely about to define the status of the country’s co-operative movement. This is because, the previous sectors of focus in Kenya, are either stagnating or slowly collapsing or metamorphosing to other business models. Such cases include, the delay in return on investment for housing co-operatives, increasing loan defaults in savings and credit co-operatives or transformation to microfinance institutions, and lowly performing agricultural sector for agricultural producer co-operatives. What next? It is being appreciated that as Kenya moves to the league of ‘middle income’ countries, based on Country’s Vision 2030 blueprint, the economic sector is slowly and firmly settling on the bedrock of growing service industries – for employment creation and income generation. But such service industries, with greater composition of workers, are still characterized by the concentration of wealth in hands of few (who are not accountable to the communities), low job qualities, and wide wage disparities. By their nature, principles and values, the co-operatives can address these gaps in service industries. How? In a Kenya under new constitutional dispensation, the co-operative movement is now a devolved function of the county level of government. This is the gap that Global Communities’ EMIRGE Program is filling. First, by spearheading the development of County Model Legal, Regulatory and Policy Framework; and lobbying for the adoption of the same by the respective County Governments. Secondly, by conducting research on the structural, relational and cognitive dimensions of co-operatives as significant social capital organizations in the country. Thirdly, by piloting workers co-operatives in building and construction, beauty and wellness, and corporate branding and marketing service industries. To greater extend, these industries are dominated by women and youth, from the informal settlements of urban areas, starting with Nairobi, the Capital City. The worker co-operatives’ momentum is on, in Kenya. The push by Global Communities’ EMIRGE Program is in the right direction, to make the greatest difference, to bring about the inevitable co-operatives change, and to re-write the history of co-operatives movement in the country. Global Communities Country Director, Kimberly Tilock, presenting draft Model County Co-operative Law to Chair Council of Governors, Hon. Peter Munya, September 5,2016 Written by: Mark Matabi, Co-operatives Specialist / Country Lead, EMIRGE Kenya USAID funded Enabling Market Integration through Rural Groups Empowerment (EMIRGE) program in Kenya, has highlighted key lessons on co-operatives development. With the objective of market linkages to ensure co-operatives’ engagements, capitalization, and sustainability; the facilitation of the horizontal or vertical linkages is stifled by co-operatives management practices. This is a clear indication that Kenya’s co-operatives movement is in crisis of co-operative management due to inadequate knowledge sharing and weak regulatory framework. The democratic participation and engagement of the respective members in their co-operative economic activities is still minimal, besides the nominal share contributions. Co-operative members have limited knowledge of their rights, roles and responsibilities. This leaves the management leaders to make unchecked decisions, and undertake only self-aggrandizement activities. With Kenya’s corruption index surging high, at 154 out of 178 globally, co-operatives are not an exception to the expression of this menace that is eroding the co-operative principles and value. If you check the co-operatives’ financial statuses, the book values are not the real values. Additionally, the issues of unprogressive founder syndrome and negative tribalism, clannism and nepotism compromises co-operatives’ management. Some leaders ‘turning’ co-operatives into private or family businesses. This has been exhibited by chaos during some co-operatives’ annual general meetings. Furthermore, co-operative leaders have inadequate life skills, hence stifling the member engagements in co-operative activities. The results are mistrust among (old and new) co-operative members and leaders; and the negative perception of co-operative business models among potential members. In such case, youth and women still shy away from embracing the co-operative business model. Eventually, co-operatives seem to be facing capitalization challenges for meaningful and sustainable co-operative businesses. This in turn makes the co-operatives unable to have a competitive edge or comparative advantage over other forms of businesses among the smallholder, informal producers, and service providers in the current competitive and capitalistic environment. To survive, Kenya’s co-operatives are quickly becoming ‘company’ and ‘partnership’ model businesses, faster than anyone could imagine. Exacerbating this crisis further, are the co-operative officers’ structure and inadequacies. The co-operative staff turnover is increasing, as many officers retire. At a point, the growth of the movement was not commensurate with government co-operative staffing. Today, the county governments are to manage county co-operative officers, who are now being appointed from respective counties and sub-counties, many of whom are inexperienced. In promotion of the co-operatives this could be good. However, in the regulation of co-operatives there are likely to be cases compromise, partialities and indecisiveness among the officers in handling co-operative leadership and management issues. Hence, compromising the internal co-operative leadership and management. In short, the co-operators, promoters and regulators have been unable to manage the exponential growth of the Kenya’s co-operative movement. Therefore, there is need for a concerted effort to build the capacity of co-operative members and leaders on good management practices and corporate governance. This will position co-operatives as a critical business model for a collaborative economy. Models of internal co-operative by-laws, service charters and operational policies for human resource and financial management should be developed and reviewed on a regular basis by co-operative movement stakeholders. Every co-operative should be supported in developing, reviewing and operationalizing periodic strategic business plans. Additionally, in the wake of the technological advancement era, co-operatives should be supported in developing and operationalizing secured technology for enhanced integrated management and financial systems. Just as we need the law for co-operatives development, we need technology for active member participation. Integrated online operations by co-operatives will not only improve trust between members and their leaders, it will also encourage economic participation. In relation to co-operative officers, there should be a rotating inter-county governments’ co-operative staffing system, to regularly rotate the officers with supervisory mandate of co-operatives. Furthermore, the co-operative should enlist credible co-operative private consultants and auditors to work with co-operatives in the respective counties, as service providers. Such service providers should work closely with development organizations that promote the co-operative business model in target communities. The co-operative principles and values should be intensely re-inculcated into Kenya’s co-operative movement, to abate the co-operative mismanagement. Written by: Mark Matabi, Co-operatives Specialist / Country Lead, EMIRGE Kenya A product and its’ features reflect the maker’s spirit, to make it function in different locations. Japanese cars manufactured for Europe may not have the exact features as those made for the African market, even with the same intent of functionality. This is the same with co-operatives. My journey into the co-operative movement, as a promoter and advocate, has been characterised by the passion and purpose of learning and information sharing. While growing in the co-operative profession, one of the issues I have been consistently fascinated by, is what really forms a co-operative business model, and how various types of co-operatives form in different societies. The question I always endeavour to answer is, “What is the co-operative image and identity in different geographical areas?” Initially, my thinking was like those of medieval cosmologists who held that the earth was flat. I remember some years back, on my very first international assignment as a co-operatives development advisor to one of the Southern Africa countries, I carried a box full of co-operative materials from Kenya, ‘as reference to teach them about real co-operatives’. Surprisingly, I never used it, but was able to support the development and strengthening of organisational and business structures and systems for 187 agriculture and marketing co-operatives in less than three years. I later learned what my unconscious secret was, effectively outlined in Ernesto Sirolli's TED talk, “Want to help someone? Shut up and listen!” (https://www.youtube.com/watch?v=chXsLtHqfdM) This is key to being a co-operative specialist! Simply put, promoters of co-operatives should endeavour to internalise the environment in which they are promoting the co-operative business model, for rural socio-economic empowerment and development. |
AboutThis blog is authored by professionals working in various parts of the developing world to strengthen co-operatives. Archives
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