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Co-operatives in Africa: where do we come from. Develtere P. & Pollet I. HIVA - KU Leuven. ILO Research Conference, Addis Abeba, 13-15 March 2006. Who are we?. Pollet Ignace and Develtere Patrick, University of Leuven, Belgium Teigist Lemma, consultant, Ethiopia

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Co operatives in africa where do we come from l.jpg

Co-operatives in Africa: where do we come from

Develtere P. & Pollet I.

HIVA - KU Leuven

ILO Research Conference, Addis Abeba, 13-15 March 2006


Who are we l.jpg
Who are we?

  • Pollet Ignace and Develtere Patrick, University of Leuven, Belgium

  • Teigist Lemma, consultant, Ethiopia

  • Fredrik Wanyama, Univ. Maseno, Kenya

  • Anthony Tsekpo, Univ. of Ghana

  • Herment Mrama, consultant, Uganda

  • Sanda Maman Sani, consultant, Niger

HIVA - KU Leuven


Who are we3 l.jpg
Who are we?

  • Joao G. Mendonça, consultant, Cabo Verde

  • Mohamed A. Aal, Cairo University, Egypt

  • Anselm Enete, Univ. of Nigeria

  • Jan Theron, Univ.Cape Town, South Africa

  • Jean D. Nyamwasa, consultant, Rwanda

  • Abdou Ndao, Institut Fondamental d’Afrique noire, Senegal

HIVA - KU Leuven


Overview l.jpg
Overview

  • Traditions

  • Literature – hypotheses

  • 15 country-rapid survey

HIVA - KU Leuven


Why look at co operative traditions l.jpg
Why look at co-operative traditions?

  • The co-operative sector was introduced by the colonial authorities – not “home grown”

  • Path dependency: legacy

    • Export crops

    • Co-operative culture

    • Co-operative structures and networks

    • Position in society and economy….

  • Has been modified to some extent

HIVA - KU Leuven


The five traditions l.jpg
The five traditions

  • Unified model tradition

  • Social economy tradition

  • Social movement tradition

  • Producers’ tradition

  • “other: South Africa, Egypt, Ethiopia – sui generis”

HIVA - KU Leuven


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The kick-off

  • British colonies:

    • Protest against middlemen

    • Cooperative legislation: “constructive cooperativism” (1940s)

  • French colonies:

    • Sociétés indigènes de prévoyance (1910)

HIVA - KU Leuven


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The kick-off

  • Belgian colonies

    • Co-operatives for colonists

    • Indigenous co-operatives from 1921

    • “public co-operatives”

  • Portuguese colonies

    • Corporatist state: rural extension work

    • Big export-oriented farmers

HIVA - KU Leuven


The systems l.jpg
The systems

  • British:

    • Ordinances, Acts,…one size fit all

    • Registrar: register, supervise, audit, arbitrate, dissolve

    • Not registered “protest co-operatives” (e.g. Uganda African Farmers’ Union)

    • Later: national unions

  • French:

    • French “liberal” legislation

    • Different departments – animation rurale

    • Resistance to national unions

HIVA - KU Leuven


The systems10 l.jpg
The systems

  • Belgian

    • Non-competitive

    • Paternalist: economic + education

    • State interventionist: e.g. prices

    • NGO’s en trade unions

  • Portuguese

    • Metropolitan legislation

    • Restrictive and state interventionism

HIVA - KU Leuven


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Post-colonial evolutions

  • populist-nationalist strategies:

    • same pattern

    • more state intervention

    • integrated in single/dominant party system

    • new co-operative models

    • co-operatives without co-operators

    • co-operatives in patron-client system

HIVA - KU Leuven


Effects legislation l.jpg
Effects: legislation

  • Until 1990s: laws inspired by “tradition”

    • Unified model: accent on registration/control

    • Social Economy model: liberal & diverse

    • Social Movement model: liberal & diverse

    • Producers’ model: agricultural co-operatives

  • in addition: integration in national development strategy

HIVA - KU Leuven


Effects co operative support agencies l.jpg
Effects: co-operative support agencies

  • Unified model:

    • Registrar or Commissioner

    • Co-operative Colleges

  • Social economy model:

    • Different ministries

    • INADES,...

  • Movement: NGO (e.g. Iwacu in Rwanda)

  • Portuguese: Ministry of Agriculture

HIVA - KU Leuven


Effects co operative networks l.jpg
Effects: co-operative networks

  • Unified Model:

    • Federations

    • Apex bodies

    • International Co-operative Alliance

  • Social Economy Model:

    • Federations or Unions

    • Francophonie

HIVA - KU Leuven


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Effects: co-operative networks

  • Social Movement Model:

    • trade unions and farmers’ unions

    • NGO’s en associations

  • Portuguese:

    • national unions of farmers

    • Organizaçao cooperativista dos Povos de Lingua Portuguesas

HIVA - KU Leuven


Effects international support l.jpg
Effects: international support

  • Unified model: ICA, WOCCU,..anglophone world

  • Social Economy model: francophone world

  • Social Movement model: NGOs, unions

  • Producers’ model: CoopAfrica, INSCOOP

HIVA - KU Leuven


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Literature - hypotheses

  • Earlier findings:

    • UNRISD (1969-71)

      • Alien models: compulsion

      • Weak performance & limited impact

      • Perpetuation of dependencies

HIVA - KU Leuven


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Literature - hypotheses

  • Top-down approach (Oakley & Marsden, 1984)

  • Engineered economic and social change (Cernea, 1985) – methodology of intervention (Verhagen, 1986)

  • Donors weak in institution building (WB, 1986)

  • Clientelism and patronage (Holmén, 1990)

  • Cooperative sector – no cooperative movement (Develtere, 1994)

HIVA - KU Leuven


Literature hypotheses19 l.jpg
Literature - hypotheses

  • Porvali (1993) – Hussi (1994)

    • Ghana, Kenya, Niger, Nigeria, Senegal, Uganda

    • Significant support, short term project objectives

    • No viable, self-managed organisations

    • Inappropriate policy framework

    • Coops as extension of govt ànd projects

HIVA - KU Leuven


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Policy Conclusions Worldbank (1993)

  • Reduce role of government agencies

  • Simplify legal requirements

  • Cooops must be free to determine their own lines

  • Sufficient returns for trading

  • Not subject to imposed price controls

  • Adequate share capital contributions

  • Movement-based support organisations

HIVA - KU Leuven


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Hypothesis: market environment

  • liberalisation = increased competition, efficiency & effectiveness

  • But also: production increase & higher prices for farmers

  • Coops bring institutional framework for market relations

HIVA - KU Leuven


Hypotheses members l.jpg
Hypotheses: members

  • Members motivation = access to money, decent income (not: training, policy debate)

  • Participation of women is weak – serves to legitimatise and perpetuate inequalities

  • Low presence (of credit coops) in rural areas

  • Members profile = social stratification outside the coops

  • Cost of participation too high for bottom-poor

HIVA - KU Leuven


Hypotheses employment l.jpg
Hypotheses: employment

  • Primarily employment supportive role

  • Workers’ coops have as much difficulty to survive as SME

  • Workers coops work if (a) ideological support and (b) market orientation

HIVA - KU Leuven


Hypotheses poverty reduction l.jpg
Hypotheses: poverty reduction

  • Coops have welfare-enhancing capability for small traders and producers because of (a) market information; (b) reduction of transaction costs; (c) pooling risks, (d) more bargaining power

  • Coops can shorten the marketing chain and eliminate inefficiencies: income gains!

HIVA - KU Leuven


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Hypothesis: social protection

  • High demand for emergency loans

  • Coop and mutual insurance = strong positive effect on health service consumption

HIVA - KU Leuven


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Rapid Survey

  • 15 countries:

    • Burkina Faso, Madagascar, Zimbabwe, Moçambique, Tanzania

    • Niger, Senegal, Nigeria, Egypt, Ethiopia, Kenya, Uganda, Rwanda, South Africa, Cabo Verde

HIVA - KU Leuven


Legislation l.jpg
Legislation

  • Changed in the 1990s

  • Except: Egypt, Moçambique, Senegal, South Africa

  • Credit unions in coop legislation in english-speaking countries

HIVA - KU Leuven


Government involvement l.jpg
Government involvement

  • Personnel assigned: 10 to 900

  • Functions:

    • Information gathering

    • Promotion

    • Registration

    • Audit and control

    • Technical assistance and training

HIVA - KU Leuven


Number of coops l.jpg
Number of coops

  • > 50.000: Nigeria

  • > 10.000: Egypt, Kenya, Burkina

  • 5.000 – 10.000: Eth., Uganda, Tanzania

  • 1.000 – 5.000: Sen. , Niger, Zimbabwe

  • < 1.000: Madagascar

  • ?: Moçambique, South Africa

HIVA - KU Leuven


Number of coops30 l.jpg
Number of coops

  • Not all are ‘active’

  • Not all are part of federation or apex

  • Pre-coops?

  • Self-help groups?

  • Same for members!

HIVA - KU Leuven


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From evidence to support…

  • Evidence: WHAT?

  • Success: WHEN?

  • Support: HOW?

HIVA - KU Leuven


Evidence what l.jpg
Evidence: WHAT?

  • From cooperative sector to social economy?:

    • Liberalisation of laws: catering for coops and other types of associations

    • Also from social economy to coop?

      • Cf. task force in Rwanda

      • Cf. new law in Ghana caters for farmers’ groups

      • Coop advantage: Liability – raising money – scope & growth

HIVA - KU Leuven


Slide33 l.jpg
WHAT?

  • Insurance coops

    • Capitalisation problem: Uganda

    • ‘old’ insurance coop in South Africa

    • Insurance coops as commissioners

    • CIC Kenya (owned by coops)

HIVA - KU Leuven


Slide34 l.jpg
WHAT?

  • The counting question!

    • Individuals or households? Depends on system of production

    • Also burial societies? Edir?

HIVA - KU Leuven


Slide35 l.jpg
WHAT?

  • Proliferation of primary societies – deficient apexes

    • Aid-lobbying coops (Ghana, Nigeria, Uganda)? opportunistic

    • Weak primaries split – sustain weak federations

    • Shift from primary agric. coops to sacco’s: imitationeffect

    • No organic link with federations

    • Deficient apexes: not new phenomenon – no democratic system of formation of sec./tert. coops

    • Federations: union + coop functions (Rwanda)

HIVA - KU Leuven


Slide36 l.jpg
WHAT?

  • Dormancy: reasons

    • Criteria: not holding annual meetings, annual audits

    • Some never started

    • Ownership problem – participation deficit

    • Leadership & Management problems

    • Viability problems (e.g. privatisation, globalisation)

HIVA - KU Leuven


Success when and why l.jpg
Success: WHEN and WHY?

  • Egypt:

    • Village Market Coop

    • Coop for workers

  • Nigeria:

    • University Women Coop

    • Uzondu coop

  • Niger: Mooriben

  • Ghana: Kuapa Kokoo

  • Senegal: housing coop

HIVA - KU Leuven


Success when and why38 l.jpg
Success: WHEN and WHY

  • Cabo Verde: Unicoop Fogo

  • Kenya: Dairy Coop

  • Ethiopia: Oromia Coffee coop

  • Rwanda: Banques Populaires

  • Uganda:

    • Teachers sacco

    • Nucafe

  • South Africa: Rooibos Coop

HIVA - KU Leuven


Key factors of success l.jpg
Key-factors of success

  • Group identity – ‘associative life’

  • Independent leadership

  • Well-articulated needs (individual and collective)

  • Vision: result orientation, realise/accept that environment has changed

  • Organisational model (coop, trust, GIE,..)

HIVA - KU Leuven


Social elements l.jpg
Social elements

  • Ownership (no external patronage)

  • Local embeddedness – social cohesion

  • Improvements in genderrelations reflected in coops

  • Significant social benefits for members

HIVA - KU Leuven


Governance elements l.jpg
Governance elements

  • Internal accountability

  • Organic links between different tiers of organisation

  • Transparency

  • Democratic governance

  • Education and training

  • Professional & qualified management staff

HIVA - KU Leuven


Economic elements l.jpg
Economic elements

  • Commodity – Value - Marketing chain

  • Market/demand oriented

  • Mixture: production, marketing, credit, insurance,…

  • Business-support to members

  • Reward of quality

  • Growth oriented (asset base, business turnover, profit,..)

  • Prof. staff acquisition and retention policies

  • Significant financial/economic benefits for members

HIVA - KU Leuven


External relations l.jpg
External relations

  • Co-operation with other coops

  • co-operative/collaborative relationship with external partners (horizontal)

  • Linkages with research centres, ngo’s, fair trade organisations,..

HIVA - KU Leuven


Hindrances to overcome l.jpg
Hindrances to overcome

  • Infrastructure

  • Loan recovery

  • Inadequate visibility of the sector as a whole

  • Gender

  • Lack of business training of members

  • Tax law

  • How to live with competition

  • “political/representational deficit” of the sector

HIVA - KU Leuven


Support how l.jpg
Support: HOW?

  • Support to coops: narrow, broad, social economy?

  • What role for secondary and tertiary structures?

  • Quality or expansion?

  • A knowledge-generation, acquisition, sharing programme or more?

  • The ‘facility’ as (a) yet another dev. partner or (b) coalition of dev. partners or (c) joint undertaking?

HIVA - KU Leuven


The papers the book the net l.jpg
The papers – the book – the net

  • Most papers are done

  • Except:

    • Paper Senegal – 31th march

    • Case study Nigeria

  • Small revisions possible: 31th march

  • To be verified by each:

    • Bibliography

    • Sources (when tables)

    • Electronic version of case-studies (full text)

HIVA - KU Leuven


Editing process l.jpg
Editing process

  • Translation french – english

  • HIVA does Editing = shorten, subtitles, amendments,…

  • Researchers do last reading of their text (approval)

HIVA - KU Leuven


The book l.jpg
The book

  • “Co-operating out of poverty – Renaissance of the African co-operative movement”

  • Ch. 1: The co-operative traditions

  • Ch. 2: The 1990s

  • Ch. 3: 11 country-reports

  • Ch. 4: Analysis

  • Ch. 5: Conclusions

HIVA - KU Leuven


The book49 l.jpg
The book

  • Publisher: ILO or…

  • 1000+ copies

  • End of the year

  • Launching

HIVA - KU Leuven


The net l.jpg
The net

  • ICA Research Committee

  • Codesria

  • Scientific journals

  • The Cooperative Facility for Africa

HIVA - KU Leuven


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