Global Cooperative Issues

Global Issues in Cooperatives

PARAMJIT SHARMA

Relevance of

Global Cooperative Issues Cooperatives

Credit Movement to farmers Largest Human Force after UNO Collective Farming Consumers Cooperatives Contribution of Democratic Institutions Cooperatives. Transparent Organizations Concern For Community Dairy/Sugar/Housing…..Coops Alleviation of Poverty Creation of productive employment
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Global Issues in Cooperatives

Global Cooperative Issues

1 Initiatives by ICA 2 Basil –ii initiatives 3 New Models of Cooperatives 4 Global Agencies Assisting Cooperatives 5 Cooperatives Mergers

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1 Initiatives by ICA

Global Cooperative Issues

1 Global HRD Networking 2 300 Global Cooperative Organizations 3 Global Trading Organization 4 Global Accounting Standards 5 Global Warming 6 Global Cooperative Governance 7 Global Employment 8 International Cooperative Banking Association

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Global Cooperative Issues

Global Network for Cooperatives

Human Resource Development Global HRD Networking for Cooperatives GHRD Portal – phase 1 GHRD portal – phase 2

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Global Cooperative Issues

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Global Cooperative Issues

Methodology 1 Structure 2 Type 3 Country 4 Turnover 5 Assets 6 Date Founded 7 Membership

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Global Cooperative Issues

1 Formulation of Coop International Trade Organization

1 Registration 2 Membership 3 Capital 4 Location 5 Objectives & Activities
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Global Cooperative Issues

1 Formulation Of a New Coop International Trade Organization

Registration New International Cooperative Trade Organization may be Registered

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Global Cooperative Issues

1 Formulation Of a New Coop International Trade Organization

Capital Capital Requirements for the new Organization may be Estimated to Fulfill its Block and Working Capital Needs

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Global Cooperative Issues

1 Formulation Of a New Coop International Trade Organization

Location

It may be located at any of the Countries with Liberal Trade Policies having at least Regional Centers at five Continents

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Global Cooperative Issues

1 Formulation Of a New Coop International Trade Organization

Objectives of ICTO
To facilitate Global Inter Cooperative trade To provide information about demand in Global Market To manage better prices for Commodities to Coops To facilitate global e-trading to cooperatives To network cooperatives for technology transfer
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Global Cooperative Issues

2 Membership Global Cooperatives in •Agricultural •Marketing •Consumers •Industrial •Sugar •Spinning •Handicraft •Handloom etc
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Global Cooperative Issues

-Membership

Americas

Africa

International Cooperative Trade Organization (ICTO)

Europe
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Asia Oceania Oceania

Global Cooperative Issues

3 Global Trading

At Present there is no Cooperative Organization at International Level which can Network Coop Trading Organizations and facilitate them to Export/Import their products………… Therefore, there is a need for International Cooperative Trade Organization (ICTO)

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Global Cooperative Issues

4 Cooperative Online Trading

ICTO Portal www.globalcto.coop

Creating a Global Portal
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Global Cooperative Issues

-Membership

Americas

Online Members

Africa

Online Members

ICTO Portal www.globalcto.coop

Europe
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Asia Oceania Oceania

Global Cooperative Issues

--Home Page

Home Page

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Global Cooperative Issues

--Home Page

About Us
(ICTO)

Mission Vision Activities Membership
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Global Cooperative Issues

Member’s Profile

•About Us (Members) •Business Sector •Products Importing/ Exporting •Pricing Module •Quality Module •Certification/Rating •Products Requirements •Trading Tenders •Location •Bankers •Supply Chain •Miscellaneous
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Global Cooperative Issues

Member’s Profile

•About Us (Members)

Name History BOD’S Financial Results

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Global Cooperative Issues

Member’s Profile

Business Sector •Agriculture •Industrial •Handloom •Handicraft •Dairy •Processing •Consumers •Software •Hardware •Electronics…. etc
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Global Cooperative Issues

Member’s Profile

Products Importing/ Exporting Sugar Pulses Fruits Vegetables Flowers Computers Garments Ceramics Cotton Fertilizers……..etc
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Global Cooperative Issues

Member’s Profile

•Certification/Rating

Organizational Rating Products Rating Financial Credibility Certification World Ranking
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Global Cooperative Issues

Member’s Profile

•Location of Members

Continent Country City Population Infrastructure Airport Seaport
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Global Cooperative Issues

Search Engine

Organization Country
Business Type

Nafed India Agri Marketing Onion

Commodity Import Export
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To Sri Lanka

Global Cooperative Issues

Service Providers--Registration

•Bankers •Transportation •Raw Materials •Labour •Warehousing •Telecommunication •Manpower •Marketing •Legal Matters etc
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Global Cooperative Issues

Discussion Forum Feedback FAQ’s Advertisement Global Tenders News & Events
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Other Features

Global Cooperative Issues

“Let us decide to have a New Beginning for Cooperatives”

through 1) Initiating the process of Registering ‘ICTO’ 2) Developing portal www.globalcto.coop for Online Cooperative Trading

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Global Cooperative Issues

Global Cooperative Accounting Standards International Accounting Standards Indian Accounting Standards International Cooperative Accounting Standards

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Formation of International Cooperative Banking Association

Global Cooperative Issues

1 Organization to assist Coop Banks 2 To improve the value of services to members… 3 to work on development issues and collaborations 4 to identify 100 top banking organizations 5 develop promotional and educational Material

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Global Cooperative Issues

Basil-ii initiatives

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Global Cooperative Issues

Top 10 concerns of bankers

1. Complex Financial Instruments 2. Credit risk 3. Macro economy 4. Insurance 5. Business continuation 6. International regulation 7. Equity markets 8. Corporate governance 9. Interest rates 10. Political shocks
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Regulatory developments – Basel II

Global Cooperative Issues

• • • • • • • •

Complex Financial Instruments Credit risk Macro economy Insurance Business continuation International regulation Equity markets Corporate governance

• Interest rates • Political shocks
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Basel II – Three Pillars

Global Cooperative Issues

First Pillar

Minimum Capital Charges: Minimum capital requirements based on market, credit and operational risk to (a) reduce risk of failure by cushioning against losses and (b) provide continuing access to financial markets to meet liquidity needs, and (c) provide incentives for prudent risk management (¶¶ 40-718)

Second Pillar

Supervisory Review: Qualitative supervision by regulators of internal bank risk control and capital assessment process (¶¶ 719-807), including supervisory power to require banks to hold more capital than required under the First Pillar

Third Pillar

Market Discipline: New public disclosure requirements to compel improved bank risk management (¶¶ 808-822)

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Global Cooperative Issues

Minimum Capital Requirement

=

8% of

Risk-weighted Exposures

Market Risk
Risk of losses in on and off balance sheet positions arising from movements in market prices

Credit Risk
Potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms

Operational Risk
Risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or external events

No Change

Major Changes

New element added

Basel II – Encompasses enterprise risk
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Global Cooperative Issues

International Agencies Assisting Cooperatives

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INTERNATIONAL DEVELOPMENT AGENCIES

Global Cooperative Issues

ILO *ESTD-1919
*RECOM-127/193 *NPA-1969 *TURIN CEN. *MATCOM *COPNET

FAO

WOCCU
*ESTD-1984 *WORLD CREDIT UNION *PROMOTE EC. & SOCIAL DEV. *UNDERTAKE DEV. PROJECTS *INTEGRATE CREDIT COOPS.

*ESTD-1943 *COOP. AGR. DEV. *DIST. OF FOOD & AGR. PRODS.

ICA
*ESTD-1895
*FOUR REG. OFFICES *PRINCIPLES *CORD.INT. AGENCY *TRG. &DEV. *ADVOCACY
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COPAC
*PROMOTE AID TO COOPS *UNDERTAKE STUDIES *STRUCTL. DEVELOPMENT *PREP. COUNTRY STATUS REPORTS

Global Cooperative Issues

Cooperative Mergers

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Cooperative Mergers

Global Cooperative Issues

1 Coop Norden 2 Coop Group 3 Saraswat Bank

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Coop Norden 2002 – aGlobal Cooperative Cooperative group Issues
Coop NKL 20%

FDB 38% Coop Norden AB 100% 100% Coop Danmark A/S 100%

KF 42%

Coop Norge AS

Coop Sverige AB

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Coop Norden

Global Cooperative Issues

• Turnover to consumers around 76 billion SEK • Including retailing in local cooperatives the turnover is near 100 billion SEK • Substantial share of everyday commodities market; Sweden 24%, Denmark 38%, Norway 25% • 1 100 shops (plus 1 900 in local cooperatives) • 26 000 employees (plus 25 000 in local cooperatives)

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Global Cooperative Issues

2 Cooperative Group Retails and Wholesale Societies merged In 1998 to form a cooperative group

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Global Cooperative Issues

3 Saraswat Bank Rs 25000 Cr turnover in 2011

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Global Cooperative Issues

New Models for Cooperatives

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Global Cooperative Issues

New Areas for Cooperative Development Traditional Areas
CREDIT CONSUMERS HOUSING SUGAR DAIRY FISHERIES TRANSPORT INDUSTRIAL MARKETING TRIBAL WORKERS
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Other Areas Rural Electrification Collective Farming Coop Companies Floriculture Tourism Social Forestry New Generation Utility Coops Processing Insurance

New Areas Baby Sitting Health Care Car Sharing Education Funeral Service Social Security Water Preservation Environment Preservation Regenerative Energies

Global Cooperative Issues

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