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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

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
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
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
Overview
  • Traditions
  • Literature – hypotheses
  • 15 country-rapid survey

HIVA - KU Leuven

why look at co operative traditions
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
The five traditions
  • Unified model tradition
  • Social economy tradition
  • Social movement tradition
  • Producers’ tradition
  • “other: South Africa, Egypt, Ethiopia – sui generis”

HIVA - KU Leuven

the kick off
The kick-off
  • British colonies:
    • Protest against middlemen
    • Cooperative legislation: “constructive cooperativism” (1940s)
  • French colonies:
    • Sociétés indigènes de prévoyance (1910)

HIVA - KU Leuven

the kick off8
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
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
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

post colonial evolutions
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
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
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
Effects: co-operative networks
  • Unified Model:
    • Federations
    • Apex bodies
    • International Co-operative Alliance
  • Social Economy Model:
    • Federations or Unions
    • Francophonie

HIVA - KU Leuven

effects co operative networks15
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
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

literature hypotheses
Literature - hypotheses
  • Earlier findings:
    • UNRISD (1969-71)
      • Alien models: compulsion
      • Weak performance & limited impact
      • Perpetuation of dependencies

HIVA - KU Leuven

literature hypotheses18
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
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

policy conclusions worldbank 1993
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

hypothesis market environment
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
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
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
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

hypothesis social protection
Hypothesis: social protection
  • High demand for emergency loans
  • Coop and mutual insurance = strong positive effect on health service consumption

HIVA - KU Leuven

rapid survey
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
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
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
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
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

from evidence to support
From evidence to support…
  • Evidence: WHAT?
  • Success: WHEN?
  • Support: HOW?

HIVA - KU Leuven

evidence what
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
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
WHAT?
  • The counting question!
    • Individuals or households? Depends on system of production
    • Also burial societies? Edir?

HIVA - KU Leuven

slide35
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
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
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
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
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
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
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
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
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
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
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
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
Editing process
  • Translation french – english
  • HIVA does Editing = shorten, subtitles, amendments,…
  • Researchers do last reading of their text (approval)

HIVA - KU Leuven

the book
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
The book
  • Publisher: ILO or…
  • 1000+ copies
  • End of the year
  • Launching

HIVA - KU Leuven

the net
The net
  • ICA Research Committee
  • Codesria
  • Scientific journals
  • The Cooperative Facility for Africa

HIVA - KU Leuven

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