DEVELOPMENT: Globalisation Catches Up to Cooperative Movement

By Gustavo Capdevila Reprint | | Print |

Gustavo Capdevila

GENEVA, Sep 16 1997 (IPS) - The changes in the cooperative movement brought by globalisation and the fall of the socialist regimes culminated Tuesday in the assumption of the presidency of the International Co-operative Alliance (ICA) by a non-European – for the first time in its 102 years of history.

Roberto Rodriguez, a sugar producer with the Guariba Co- operative in the Brazilian state of Sao Paulo, became president on the last day of the organisation’s general assembly in Geneva.

For reasons of political balance and due to the weight of co- operatives in the former socialist countries, for decades the ICA was presided over by Scandinavians, judged the most neutral Europeans in a bipolar world.

Since its foundation in 1895, the ICA spread throughout the world to its current membership of 770 million. But according to a delegate from Argentina, power had always remained in the hands of the “English and Swedish.”

The naming of the first president from the southern hemisphere also implied the strengthening, within the ICA, of the branch of agricultural cooperatives at the expense of consumer groups, which up to now had controlled the international movement.

The Brazilian agrarian economist said his election also entailed a recognition of the power of agricultural cooperatives, which account for close to one-third – 522 billion dollars – of rural production world-wide.

Rubens Ricupero, secretary-general of the U.N. Conference on Trade and Development (UNCTAD), told IPS that Rodriguez’ election by acclamation Tuesday clearly showed the importance of the agricultural sector, and particularly the cooperative movement within that sector.

“In my view, it is the sector where the countries of the South have the most potential in terms of foreign trade – much more so than in industry,” said Ricupero, a former Brazilian finance minister.

Rodriguez told IPS that under his leadership, the ICA would intervene in renewed negotiations on the liberalisation of trade in agriculture under the auspices of the World Trade Organisation (WTO), projected for 1999. The movement will also foster consensus positions among the parties in favour of eliminating protectionism in trade in the sector, as Latin America advocates, he added.

The presidency of the ICA will become a “guardian of the doctrine of cooperativism,” he said.

The international cooperative movement is concerned that some sectors, such as finances, interpret the doctrine according to the demands of their markets.

The ICA itself was forced to reform one of the basic principles of cooperativism, opposition to inflows of external capital, in order to face up to the new challenges posed by the era of globalisation. The movement now accepts that cooperatives “obtain capital from external sources,” but without jeopardising the democratic control and autonomy of societies.

The globalisation of the economy has left its marks in the cooperative movement, especially in many workers cooperatives, forced to close because they could not compete with sweatshops and other exploitative forms of production. Africa, where 90 percent of cooperatives pertain to the agricultural sector, was one of the areas hardest hit by the opening of markets.

Nevertheless, Bernard Wolimbwa, ICA vice-president for Africa, said the cooperative movement enjoyed a favourable outlook in the region in spite of having lost adherents in recent years. In 1994, 24 organisations from 17 countries belonged to ICA, representing 15.2 million members. Today that number has dropped to 23 organiations in 13 countries, with 12.8 million members.

At a global level, ICA membership “is growing,” especially in the Americas, said the movement’s director general, Bruce Thordarson.

Rodriguez said he would work on strengthening the identity of the cooperative movement, increase participation by women and the young, and support development in Africa.

The new president was elected by acclamation Tuesday. The ICA general assembly also designated 15 members of the board, with representatives of cooperatives from industrialised countries preserving their majority of nine to six.

Lars Hillbom from Sweden will continue to act as vice-president for Europe and Bernard Wolimbwa from Uganda for Africa, while Miguel Cardozo from Uruguay was named vice-president for the Americas and Yang Deshou from China for the Asia-Pacific region.

Although the ICA board had suggested that the general assembly incorporate the greatest possible number of women in the governing body, the assembly only approved the designation of Stefania Marcone from Italy and Rahaiah Baheran from Malaysia.