Statement on the Increasing Role of Co-operatives in Recent Global Economic Crisis

oleh Suroto Kakaroto pada 09 Maret 2010 jam 0:53

ICA Regional Assembly pass a Statement

Statement on the Increasing Role of Co-operatives

in Recent Global Economic Crisis

International Co-operative Alliance (ICA) that represents the global co-operative community, since 1895, and presently consisting of more than 800 million individual members has issued an open letter to the Governments of the G8 expressing the shock and serious concern on the Global Economic Crisis triggered by the melting down of some of the giant global financial structures.

It is a fact that vast amounts of taxpayers’ money has been committed by many Governments to control the impact of economic crisis created on account of predatory speculative practices of corporate giants. The chain reaction of the financial disorder has started seriously impacting the regional economy of Asia Pacific in the form of business losses, retrenchments, liquidity crunch etc. thereby making weaker segments of the society more vulnerable and fragile than before.

Considering the deterioration of the situation day by day, WE, the representatives of ICA member co-operatives from the Asia Pacific region, apprehend that the crisis may engulf our region also and accordingly take the note of negative growth of economy with likely serious repercussions on the stability of the global economy.

Co-operatives being the value-based enterprises with unique blend of economic and social responsibilities soaked with a different ethos that employ 100 million people across the world need to be considered as a preferred option to stimulate the economic growth.

Co-operatives worldwide have been known as secure, stable and sustainable models of business enterprises owned and controlled by the people who in pursuit of their common economic need pool their resources for common good.

Co-operatives being different form of business models as compared to the capital-intensive corporate structures are not linked with stock markets because they rely on members’ funds for a realistic value; and are not subject to manipulation and greed since the members of their communities control them.

Co-operatives are the businesses where the profits are not just distributed to their shareholders, but are returned to those active members who transact with the business of the co-operative, thus keeping the wealth generated by local businesses in the local community for the good of the local environment and families.

Co-operatives do have the inherent features of being modest and realistic in planning the growth of the business with manageable control on costs and aspirations giving them a greater power of resilience.

In order to contain ill effects of the global economic recession, WE the representatives of co-operatives from the Asia Pacific region strongly recommend that significant role of co-operatives in the process of economic recovery should be given due recognition by the policy makers at global and national level and therefore urge upon the governments to establish good partnership with co-operatives to protect economically vulnerable population so as to minimize the impact of global economic meltdown at the ground level.