ICA RESEARCH CONFERENCE - HA NOI, VITNAM

ICA Regional Research Conference in Hanoi, Vietnam ICA-AP Regional Research Conference

2nd December, 2008

First Announcement and Call for Papers

Dear Co-operative colleagues and researchers in Asia-Pacific Region,

We have pleasure in announcing that the next Co-operative Research Conference for the Region will be held at the Melia Hotel, Hanoi, on 2nd December, 2008.

The theme of the Conference will be: " Strengthening Cooperative Advantage under the Competitive Environment " with the following sub themes;

Co-operative advantage in doing business

Co-operative advantage from the Membership perspective

Co-operative advantage from the Human Resource perspective

Co-operative advantage from the institutional perspective

Co-operatives, since they are organizations based on specific principles, have built in advantages। The contemporary situation calls for using these advantages to the benefit of the members as well as the movement. We need to explore how we can further strengthen the cooperative advantage, to survive and thrive under global and competitive market conditions. Research related to exploring ways and means of strengthening co-operative advantage, empirical studies highlighting cases of use of cooperative advantage, studies that focus on specific sectoral co-operatives, comparative studies across sectors, regions or countries are welcome.

You are all kindly requested to prepare an abstract of your paper and send it to reach us on or before 31 May, 2008। All abstracts should be prepared in A4 MS Word format (Times New Roman, Size 12 font, single-spaced) and no more than 500 words in length.

Author(s) full title, name, address, organization and email address should be included at the end of the abstract। We would expect to receive the full paper of your presentation latest by 31 August, 2008.

Like in the past, we would try to coordinate with the Consumer Co-operative Institute of Japan to provide a small number of scholarships to selected presenters.

We also propose to set up a Regional Research Committee and would look forward to the support of all participants.

Your abstracts should be sent to Mr. P. Nair at ICA-AP (nair@icaroap.coop) with a copy to Mr. Akira Kurimoto, Coordinator of the Research Group (akira.kurimoto@jccu.coop)

Looking forward your active participation and awaiting your response, Sincerely yours, Akira Kurimoto Coordinator ICA AP Co-operative Research Group

INTERNATIONAL COOPERATIVE ALLIANCE, GENEVA - NEWS

General Assembly ICA Extraordinary General Assembly, 5-6 June 2008, Rome, ItalyOfficial meeting documentation information now available http://www.ica.coop/calendar/ga2008/ including:• Meeting Documentation, Part 1 Includes GA Agenda, Motions, Restructuring Report and Subscription Simulations, Voting Information, ICA Board Election information।• Meeting Documentation, Part II Includes proposed amendments to the ICA Rules, Policies, Procedures and Standing Orders, information on "requests for speak", additional delegate information including shuttle bus schedules to and from hotel to the meeting venue and gala dinner. Recent News ICA Africa Members' Forum Published Yesterday The ICA Africa Members' Forum, recently held in Nairobi, Kenya, was a milestone in reaffirming ICA's position as the representative organisation of co-operatives in Africa which focuses on a member-centred and driven approach to the revitalisation of the regional co-operative movement. One outcome of the Forum was a resolution reaffirming members' commitment to support ICA Africa. The meeting proposed a line of action and consultation that will form the basis of the new four-year strategy plan that will be submitted to the Regional Assembly for Africa for adoption. The Regional Assembly for Africa will be held in November 2008 in Abuja, Nigeria and will address the theme "Revitalising Member Commitment and Involvement for Improved Sustainability of African Co-operatives," For more information: imbsen@ica.coop New to GA 2008 - 5-6 June 2008, Rome, Italy Published Yesterday Official Meeting Documentation Part 11 now available - including proposed amendments to ICA Rules and By-laws. ICA appeal for co-operators hit by earthquake in China Published 05/21/2008 The ICA is calling on ICA members and co-operatives from around the world to show their co-operative solidarity and come in aid of co-operators victims of the recent earthquake in China. See press release >>> ILO launches new grant scheme to promote co-operatives in Africa Published 05/21/2008 The International Labour Organisation (ILO) announced the launch of the CoopAfrica Challenge Funds to support projects up to US$150,000. Co-operative organisations, institutions that provide technical expertise for co-op development and co-operative training institutions will be eligible to apply. The deadline for the first call for proposals is 15 June 2008. See description of funds or contact coopafrica@ilo.orgCoopAfrica is a partnership programme implemented by the ILO and funded by the U.K. Department for International Development (DFID) to support the development and promotion of co-operatives in Africa. Partners include ICA, UK Co-operative College, International Trade Union Confederation, COPAC, and the African Union. Co-ops under threat in the European Union Published 05/14/2008 The European Commission is currently examining unfounded claims that co-operatives are accorded preferential treatment which disguise state aid and leads to uncompetitive practice. The legal cases from Spain, Italy and France currently being examined by the European Commission are challenging national co-operative laws and tax rules which ultimately attack the co-operative specificities and thus the co-operative model of enterprise. Cooperatives Europe is spearheading a petition, addressed to the European Commission, "Hands Off our Co-ops! - They compete fairly", and is encouraging members of co-operatives to sign online. See more information on the Cooperatives Europe website (http://www.coopseurope.coop/spip.php?article561) and the petition (http://www.gopetition.com/petitions/hands-off-our-coops.html) New to IHCO - Japanese reconstruction in Java and ICA Extraordinary Assembly Published 05/6/2008 News in English and Spanish about HCA-JCCU funding to rebuild a public health clinic and a local economic development clinic in Sidomulya village in the Bantul district of Java, Indonesia and the ICA Extraordinary Assembly. Garry Cronan has left the ICA Published 05/3/2008 Garry Cronan has left the ICA. We thank him for his contribution to theICA and in particular to the Global 300 Project. ICA wishes him all thebest in his future endeavours. Garry can be contacted atgarrycronan@bluewin.ch.View News Archive Featured Articles Boletín de la ACI Febrero/Marzo 2008 Published 05/19/2008 Printer Version ICA Digest Issue 61 April/May 2008 Published 04/25/2008 Digest ICA Digest Issue 61, April/May 2008, is now available. The focus is on the restructuring of the ICA - a watershed moment offering the real prospect of a renewed vision and structure into the future. there is a report on the Extraordinary General Assembly In June and the ICA strategy on climate change. Regional news includes a special report from ICA's Americas regional and an interview with the Regional Director. There are further details about the ICA's EXPO 2008 in Lisbon, Portugal in October and a report on a Co-operatives Europe submission to the European Commission. There is a feature interview with Carolyn Hoover - Chief Executive Officer of dotCooperationLLC - discussing how information is the backbone to a strong and relevant global Co-operative Movement. Full Story Visit Site Printer Version Global 300 List 2007 Released Published 10/29/2007 GA 07 The International Co-operative Alliance has just released The Global 300 list 2007 - The world's major co-operatives and mutual businesses. The Global 300 list is the second ranking of the largest co-operatives and mutual businesses in the world. The first preliminary listing of the largest 300 co-operatives and mutual businesses was released by the ICA at the Forum for a Responsible Globalisation in Lyon, france in October 2007. The 2007 list has expanded the range of data collected and the depth of analysis. Revenue was used as the criteria for selection and ranking. US currency was used with local currencies converted into USD. Full Story Visit Site Printer Version The Global 300 and Corporate Social Responsibility Published 10/23/2007 GA 07 The Global 300 Project has been enhanced by the International Co-operative Alliance this year by the release of a separate and complementary report of Corporate (or rather Co-operative) Sociaql Responsibility principles and their practice by co-operatives. Co-operative principles in particular the ICA's Statement of Co-operative Identity are the basis for most co-operative operation throughout the world.Some of the best examples of CSR performance are to be found among Global 300 co-operatives and mutuals. The report provides detailed case study examples of current practice across the various CSR streams - giving the flavour of what some co-operatives are currently doing.It is not an exhaustive sample of all that the co-operative is doing. Full Story Visit Site Printer Version Featured Member Site Credit Union National Association (CUNA) The Credit Union National Association (CUNA) is based in Washington, D.C. and Madison, Wisconsin and is the premier national trade association serving credit unions in the USA. In partnership with state credit union leagues, CUNA provides many services to credit unions - including representation, information, public relations, continuing professional education and business development.

8TH ASIAN CO-OPERATIVE MINISTERS' CONFERENCE - 2007

• The main purpose of the Ministers’ Conference on Co-operative Legislation and Policy that is organized every 4th year is to understand the priorities of the Governments and assert the advantages of co-operatives in building national economy.
  The main objectives underlining the conference include:
  • developing conducive and progressive co-operative policies and enactment of proactive legislation reforms;
  • enabling co-operatives to adapt with the fast changing global scenario;
  • creating a platform at international level for governments & movements to discuss key issues hindering the development of co-operative sector.
  The 8th Ministers’ Conference was concluded with the following declaration: • Noting the multi-dimensional impact of globalization on the socio-economic lives of peoples of Asia and Pacific and their institutions particularly cooperatives; • Taking note that while globalization and liberalization of national economies has resulted in enhanced economic growth and prosperity, its gains have not been equitably distributed among the people particularly the poorer and more vulnerable sections of the community; • Appreciating the desire of the Cooperative Movement to participate in the developmental process in harnessing the gains of globalization aimed at poverty reduction, employment generation and equitable national development ; • Realizing the importance of proactive cooperative legislation and enabling policies for creating conducive environment for development of cooperatives; • Appreciating the role of ICA to continuously facilitating the dialogue between the Cooperatives and the Governments to enhance the role of cooperatives for the economic growth and prosperity in the region. We, the participants of the 8th Ministers Conference on “Cooperative Legislation and Policy” held at Kuala Lumpur, Malaysia from 12-15 March 2007: Urge upon the Governments to catalyze the process of re-orienting the Cooperative Legislation and Policy to strengthen apolitical and autonomous character of cooperatives and to provide a positive level playing field to cooperatives to enable them to compete in the globalize market. Call upon the Cooperative Movements to contribute effectively in the process of economic development, amongst others, by organizing small producers including farmers, workers and protecting consumers through self-help mode and also ensuring increased participation of women and youth in the cooperatives. Exhort Cooperatives and Governments to strengthen management capacity, participatory governance and fair business relationship for ensuring healthy functioning of cooperative system through innovative strategies. Calls upon Cooperatives and Governments in the region to periodically review the efficacy/effectiveness of Cooperative Legislation and Policy as well as to introduce appropriate reforms considering the dynamic changes and trends emerging in their respective national economies. Recognizing cooperatives are an important and significant sector of the national economy effectively contributing to its development, we affirm our support for the Cooperative Movement as a sustainable and efficient institution through: 1. Encouragement of cooperative entrepreneurship by inculcating entrepreneurial spirit and skills among the members, leaders and managers of the cooperatives through education and training. 2. Attainment of economies of scale and strategic business alliances among cooperatives both domestically and internationally. 3. Role clarity among different tiers to enhance impact of the Cooperative Movement and 4. Harnessing the gains of the fair globalization and liberalization for the benefit of members. The conference witnessed intense deliberations among the participants and culminated with the group reports on the expectations of the co-operatives from the government and that of the governments from the co-operatives. The group reports and the interventions by Hon’ble Ministers have formed the basis for the set of following recommendations for the consideration and adoption at the level of the governments and co-operatives: 1. Clear Policy on the Co-operatives: a. There should be a consistent national policy, recognizing the distinct character of co-operatives as private self-help organisations, operating according to their own rules. Such policy should allow co-operatives to work in all fields of human endeavour and open co-operatives for all citizens. b. The legislation on co-operatives may be amended only after adopting a conducive national policy on the development of co-operatives. c. Government’s co-operative development policy should be expressed in clear terms in writing, either in a policy paper or a preamble to the co-operative law. d. There should be a periodical review of policy and law. The co-operative movement should be invited to participate in policy-making and law-making processes. e. The policy statement should define what a co-operative is (as what co-operatives are recognised) and what is the role of government vis-à-vis co-operatives. f. The role of co-operative apex bodies as legitimate representatives of the interests of affiliated societies and their members should be recognized. g. Based on the principle of subsidiary, the government should allow the self-regulation of the co-operative sector as a mechanism to strengthen the self-reliance of co-operatives within the legitimate legal framework. In that spirit, government should authorize apex co-operative organizations to regulate (not control) the affiliated primary co-operatives. h. Governments should introduce support measures for co-operatives, where appropriate, for the activities that meet specific social & public policy initiatives e.g. livelihood creation for the disadvantaged section of the society, tax benefits, soft loans, access to public works programs and special procurement provisions. i. Since the co-operatives combine business and moral values together with ideal governance structure hence should be the most preferred choices in more holistic socio economic development of a country and also in guarding the globalization process. j. Considering the size and capacity of the co-operative movements in the developing and emerging market economies, co-operatives must diversify into innovative sectors like infrastructure building, service industry, disaster mitigation and preparedness, formal schooling, education and health care. 2. Political neutrality a. The principles underpinning the co-operatives stress independence of co-operatives, which implies among other things that co-operatives should stay aloof from party politics. b. The issue of political neutrality of co-operatives means that; co-operative office should not be used as a stepping stone for pursuit of political careers; co-operatives should not be used as instruments for the implementation of political programs and; co-operative leaders should not be used for political aims. c. Co-operatives must use their weight as a socio-economic movement to lobby for favourable framework conditions like the UK, the cradle of co-operative democracy, there is a Co-operative Party working together with the Labour Party and in Italy and Belgium co-operative groups are organised along the lines of political party programs to build an alternative economic force to lobby for favourable legal, economic and social framework conditions for this sector of “social economy”. 3. Drafting Co-operative Law: a. The relationship between government and co-operatives must be defined in the co-operative law. Each has to be given its role. Clear limits have to be set regarding government’s powers, especially the power to control and make amendments under the law. b. Type of law: Co-operative law is organisation law, which has to offer a reliable and lasting legal framework for co-operatives. It should be avoided to mix provisions of organisation law with elements of tax law and regulations for the promotion of co-operative development. c. Format of law: The options are one general law for all co-operatives or several special laws for different types of co-operatives. In case of several laws, they should follow a similar basic concept. d. Relations between law, regulations and by-laws: It is important to find the right dose of regulation, avoid over regulation and leave room for autonomy to adjust the provisions of the law to local requirements in the by-laws of individual societies. The right dose of regulation and autonomy means: Co-operatives must be given autonomy to make by-laws within the boundaries set by the law. Such boundaries are justified if they protect -the special character of co-operatives as a type of organisation, members’ interests, the rights of creditors and the interests of the general public. e. Law can serve as a checklist to determine - how far autonomy of co-operatives can go and how far restrictions of autonomy are justified. f. Legal drafts-persons: When drafting co-operative legislation, it is essential to bring the text of the law within reach of the ordinary citizen and co-operator. This means that the law has to be worded in clear and simple terms and avoid heavy technical language (law for citizens not law for lawyers); to avoid high level of abstraction but rather use examples and to avoid cross-references to other laws and within the law. Legal drafts-persons should work in collaboration with specialists from the co-operative movement and should take part in preparatory discussions to learn about the subject matter they are asked to regulate. 4. Contents of Co-operative Law (Issues to be dealt with in co-operative legislation) a. Definition of co-operative society: The law has to give a clear definition of co-operatives. This can be done by using the generally accepted definition of co-operative society as contained in the ICA Statement of Co-operative Identity. b. Formation of co-operatives: The law has to provide the tools to determine what is a genuine (bone fide) co-operative e.g. pre-registration audit, need for approval before registration, need to meet certain minimum standards like minimum number of founder members (not too few, not too many, depending on type of co-operative and circumstances). c. Formation procedures: The requirements to be met before registration should be spelled out in the law, reflecting registration policy. Minimum capital requirements vary from case to case. Therefore, the amount of capital required to start a co-operative should not be fixed in the law, but rather be assessed on a case-by-case basis during pre-registration audit. Bureaucratic obstacles should be avoided. d. By-laws: The minimum contents of the by-laws have to be defined in the law. However, autonomy is needed to adjust the general provisions of the law to the needs of the specific case. This autonomy should not be unduly restricted by making the law too comprehensive, by detailed regulations or by compulsory model by-laws. e. Membership, acquisition and termination, rights and obligations: It should be taken into consideration that members are the crucial part of co-operatives. Active membership must be mandatory and members’ interests need to be the driving force behind genuine co-operatives. Interventions must be spelled out to enhance the ability of co-operative leaders to make membership meaningful, in particular to offer a co-operative advantage (membership value, benefits exclusively for members) and to attain member-oriented effectiveness. f. Equal status of members should be a basic co-operative rule. The importance of active membership, conditions of eligibility, provisions of associate members and transactions with non-members etc must be clearly explained. g. Business with non-members should not be a barrier for growth. But of course, free riders should not be encouraged. In this regard co-operatives should be prudent enough and maintain their specific profile even while dealing with non-members. h. Governance: Leadership of elected and democratically controlled office-bearers being a valuable asset and distinctive feature of the co-operative must be protected by the law. Co-operative law must set the framework for election of trustworthy leaders, standards of good governance, accountability and liability of office-bearers by defining - conditions for eligibility to co-operative leadership posts, the term of office (to be fixed in the law or left to be fixed in the by-laws), powers and duties of office-bearers and their liability, remuneration of services (whether paid or honorary, unpaid services), transparency by submitting data and reports to the general meeting, to auditors and to the general public, sanctions against illegal and corrupt practices, member control and minority rights. i. The relationship between elected directors with professionally qualified and employed managers must be dealt with in the law, laying down what should be the rule and what could be exceptions, setting out who decides the policy and who executes the policy. j. Audit and supervision: In co-operatives, regular annual or bi-annual audit is a must. The law should regulate, who carries out the audit (specially trained co-operative auditors cum advisers or certified public accountants), the scope of the audit (only financial audit or also management audit, audit of member-oriented effectiveness and social audit) and the scope of supervisory powers of the government agency in charge of administering the co-operative law (inspections at any time, inspections during audit or in case of inquiry). k. Rules against demutualization: The law should not allow transforming indivisible co-operative capital, accumulated over the years from undistributed surplus, into divisible capital that may be distributed among the current members by transformation of co-operatives into companies or by dissolution. Either such decisions should not be allowed at all or only if a quorum of two thirds or three quarters of all members attend the special general meeting convened for that purpose and vote with a two-thirds or three quarters majority. l. Merger, dissolution and liquidation: Standard regulations can be used taking into consideration the need of protecting minority rights and the rights of creditors. m. Women Participation: Women’s role in society is an issue that reaches far beyond co-operative law. Usually, equal rights of women are guaranteed in the constitution. These rights have to be respected by all laws including co-operative law. For co-operative development policy and co-operative law this means that all rules and provisions have to be avoided, which discriminate against women, e.g. in conditions of admission to co-operatives as members. 5. Globalization & Co-op Advantages: a. In the era of globalization the co-operatives must see it as an opportunity for all the co-ops to highlight and capitalize the CSR aspect of co-operatives evidently distinguishing them with other corporate structures thereby giving them a competitive edge. b. Co-operatives must adopt universally acceptable standard code of co-operative governance (being more effective than corporate governance) and co-operate globally to protect the interests of most vulnerable section of the society and must incorporate it as one of the guiding principles of co-operatives in the ICIS. c. Governments should move forward with proactive approach towards serving the interests of poor by creating a harmonious society through co-operatives duly protecting the livelihood of informal sector in rural and urban areas and attaining uniform growth of the society. d. Governments must involve co-operatives in the WTO round of negotiations on critical issues bothering the small producers, consumers and farmers. e. Requirement of the World Trade Organization and Agreement on Agriculture necessitates examination of issues such as market access, domestic support, export subsidy, trade related aspects of intellectual Property Rights, sanitary and phytosanitary measures including specific Agreements on varied commodities. f. Co-operatives at international level must consider the option of setting up “International Co-operative Joint Purchase Union” to transact the procurement and supply of processed farm produce, consumer goods, services etc. in different countries since it will substantially reduce the costs and improve the profit margins. g. To increase competitiveness of the co-operatives due to structural distinction in the market oriented economy, ICA must create an International Co-operatives’ Commercial Site on its website as hyper link for maintaining a knowledge bank to bring harmony in the co-operative laws of different countries, undertake structural advancements, innovative diversifications and promotion of international trade activities of co-operatives. h. In order to spread uniform benefits and advantages of globalization, there is a need to establish International Co-operative Bank to financially back up the developing co-operative economies in the world and more so in the terrorism vulnerable and disaster prone countries. 6. Contradictions and Dilemmas: a. Government expectations and co-operative autonomy: Government expects co-operatives to carry out their operations in line with government’s policy. Government is expected not to interfere in co-operative affairs, except when co-operatives ask government for assistance. b. Democracy and efficiency: In the event there are no persons with the required qualifications among the members to take on the leadership the option of inducting external directors to join the co-operative to train and groom leaders inside the co-operative movement may be tried. c. Co-operatives and poverty alleviation: Poverty is not only a problem of lacking resources but also of lacking ability to cope with change. Part of the answer is capacity building. Another means to help may be to provide promoters/development entrepreneurs with capital assistance. If co-operatives are involved in poverty alleviation campaigns, it has to be clear who pays the extra (social) cost: the members, if they so desire or the agency asking co-operatives to become active in this field. d. Who can promote co-operatives? Promoting co-operatives requires special skills that have to be learned. Therefore, promoters of co-operative development must be trained for their work and need special service conditions to be motivated for their difficult and challenging task. Offering suitable service conditions for co-operative promoters may be more important than offering a suitable co-operative law without an efficient service to administer the law. Co-operatives should be encouraged to enter into strategic smart partnership with private sector in a win win situation to leverage on respective strengths. e. Limits of co-operative autonomy: There is a need to find the right balance of guidance and supervision of co-operatives on the one hand and autonomy required by voluntary self-help organisations on the other. 7. Conclusions: a. Co-operative development should interest every government because co-operatives are a worldwide known and tested form of mobilising people and their resources for their own development. b. When co-operators help themselves by pooling their resources and working together for their own benefit, they create wealth, employment, knowledge and a sense of solidarity and thereby, indirectly, contributing to the development of the country as a whole. Therefore, co-operatives should be officially recognised as desirable and useful organisations having their own distinct character. c. As locally rooted organisations, directed by democratically elected leaders, co-operatives can become a nucleus of local development in favour of both the poor and the better off. Trust in elected leaders and member/user control is an asset, giving co-operatives an edge over commercial business. d. An appropriate legal framework can help to elect competent and trustworthy leaders and to hold them accountable. Provision of regular audit by specially trained auditors can enhance transparency and restrict corruption in co-operatives. e. Co-operative law has to define the boundaries within which co-operatives can work according to their own rules, principles and by-laws, allowing what is beneficial and prohibiting what is detrimental or potentially dangerous. f. Where government’s co-operative development policy and co-operative laws are made in a participatory process and reviewed from time to time in partnership with the elected representatives of the co-operative movement, the chances of creating an conducive environment for co-operative development are good. g. Strong and vibrant co-operatives can compliment the efforts of governments in the development of a nation by actively contributing in drafting the public policy and regulating the advocacy work. Co-operative sector must build its capacity to influence legislation & public policy (protection of vulnerable section of the society by involving women & youth in co-op ventures / actions) through active participation in the dialogue with government and lobbying with concerned ministries. h. Co-operative legislation must be in line with the ICIS and contain provisions on timely conduct of elections, maximum time limit for super session of a managing committee, independent and professional audit, uniform tenure of managing committee, regular and timely conduct of general body meetings, right of a member for access to information, compulsory system of filing returns and provisions for offences and penalties. i. Acculturation and training programmes for co-operators should be geared towards inculcation of entrepreneurial values as well as best practices in management, finance and governance. This will encourage co-operatives to be more business like, efficient and strategic in identifying new value additive features for the benefits of their members. j. Co-operation among co-operatives should be enhanced, especially through vertical integration with absolute role clarity so as to improve the bargaining power and flexibility of the co-operatives to operate globally. k. The trade between co-operatives at domestic and international levels should be encouraged through e-trade, e-commerce, e-auction, e-network and also by organizing regular trade fairs, expositions, participation in international gala trade events and the governments must help co-ops to showcase their strength through policy support.

PAKISTAN HOUSING COOPERATIVES TO HOST NEXT INTERNATIONAL CONFERENCE

Captain (Rtd) Farooqi, Vice President of the ICHFAP and a leading Co-operator involved with Housing Cooperatives in Pakistan has indicated that Pakistan may be willing to host an International Co-operative Housing Conference in LAHORE, PAKISTAN in October / November 2008. Further information will be made available through this site and other modes to Co-operators (and their spouses) who may wish to participate in the Conference whilst the spouses have a look at the wonderful Moghul City of Fountains and Gardens of age old Moghul Empire. And of course enjoy the shopping. Captain Fartooqi is available at E mail { m_a_farooqi@hotmail.com}

THE RIGHT HONOURABLE PRIME MINISTER OF MALAYSIA - ASIAN CO-OPERATIVE MINISTERS' CONFERENCE

SPEECH BY THE RIGHT HON'BLE PRIME MINISTER OF MALAYSIA AT THE ASIA PACIFIC CO-OPERATIVE MINISTERS' CONFERENCE YB DATO’ SERI MOHAMED KHALED NORDINMINISTER OF ENTREPRENEUR AND CO-OPERATIVE DEVELOPMENT, MALAYSIA MR. IVANO BARBERINI PRESIDENT, INTERNATIONAL CO-OPERATIVE ALLIANCE, EXCELLENCIES AND DISTINGUISHED GUESTS, LADIES AND GENTLEMEN. I AM PLEASED TO BE ABLE TO JOIN YOU AT THIS CONFERENCE, WHICH MARKS THE FIRST TIME THAT MALAYSIA HAS BEEN GIVEN THE HONOUR OF HOSTING THE ASIA-PACIFIC CO-OPERATIVE MINISTERS’ CONFERENCE. I WISH TO COMMEND THE MINISTRY OF ENTREPRENEUR AND CO-OPERATIVE DEVELOPMENT, THE VARIOUS GOVERNMENT AGENCIES, AND THE INTERNATIONAL CO-OPERATIVE ALLIANCE (I.C.A.) FOR SUCCESSFULLY ORGANISING THIS EVENT. COOPERATIVES IN THE ASIA PACIFIC REGION PLAY A LEADING ROLE IN THEIR RESPECTIVE COUNTRIES. INDEED, ASIA-PACIFIC CO-OPERATIVES COMPRISE A MEMBERSHIP OF 530 MILLION PEOPLE, WHICH ACCOUNTS FOR 66 PERCENT OF THE TOTAL GLOBAL CO-OPERATIVES MEMBERSHIP. THESE CO-OPERATIVES ARE INVOLVED IN VARIOUS ECONOMIC ACTIVITIES, INCLUDING AGRICULTURE, BANKING, CREDIT, HOUSING, TRANSPORT, HEALTHCARE AND MANY OTHERS. THESE IN TURN NOT ONLY PROVIDE OPPORTUNITIES FOR INCOME GENERATION THROUGH EMPLOYMENT AND BUSINESS, BUT ALSO REDUCE THE COST OF CONSUMPTION AND TRADE FOR MEMBERS. SUCH IS THE APPEAL OF THE CO-OPERATIVE CONCEPT THAT VARIOUS GOVERNMENTS HAVE ADOPTED CO-OPERATIVES AS IMPORTANT VEHICLES FOR SOCIO-ECONOMIC DEVELOPMENT. IN MALAYSIA, WE HAVE LONG REGOGNISED THE ROLE OF CO-OPERATIVES IN THE NATIONAL DEVELOPMENT AGENDA. IN MY VIEW, THE CO-OPERATIVE MOVEMENT HAS A LOT TO OFFER THE PEOPLE OF THE ASIA-PACIFIC REGION. THE BASIC CO-OPERATIVE VALUES OF HONESTY, INTEGRITY AND TRUSTWORTHINESS, TRANSLATED INTO PRINCIPLES THAT EMPHASISE THE DISTINCT IDENTITY AND WAY OF DOING BUSINESS OF CO-OPERATIVES, SHOULD STAND OUT AS AN EXAMPLE FOR THE REST OF THE BUSINESS COMMUNITY. I AM PLEASED TO NOTE THAT MOST GOVERNMENTS IN THIS REGION HAVE RECOGNISED THE IMPORTANCE OF CO-OPERATIVES, AND HAVE PROCEEDED TO CREATE APPROPRIATE POLICY AND LEGISLATIVE FRAMEWORKS FOR THE DEVELOPMENT OF THIS SECTOR.LADIES AND GENTLEMEN. THE THEME FOR THIS YEAR’S CONFERENCE, WHICH IS ENTITLED ‘FAIR GLOBALISATION THROUGH CO-OPERATIVES’, IS AN APPROPRIATE TOPIC TO BE DISCUSSED, AS IT ADDRESSES THE CURRENT ISSUE OF CONCERN TO MANY ASIA-PACIFIC COUNTRIES, PARTICULARLY THE DEVELOPING NATIONS. THROUGHOUT THE LAST 20 YEARS, WE HAVE WITNESSED THE EMERGENCE OF GLOBALISATION AS AN IMPORTANT PHENOMENON THAT HAS AFFECTED THE LIVES OF ALMOST ALL THE PEOPLES OF THIS REGION.5. SUCH EFFECTS OF GLOBALISATION HAVE BEEN EXTENSIVELY DOCUMENTED. THE ISSUE THAT STANDS BEFORE THE CO-OPERATIVE MOVEMENT AND THE GOVERNMENTS OF THE REGION IS HOW WE ADDRESS THE POLITICAL, ECONOMIC AND SOCIAL IMPACT OF GLOBALISATION, IN OUR QUEST TO IMPROVE THE QUALITY OF LIFE OF OUR MEMBERS AND SOCIETY. IT IS INTERESTING TO NOTE THAT ONE IMPORTANT ASPECT OF GLOBALISATION IS THE HIGH ECONOMIC GROWTH RATES ACHIEVED BY DEVELOPING ECONOMIES, WHICH HAS AVERAGED SOME 7 PERCENT PER ANNUM OVER THE LAST 25 YEARS. THIS HAS BEEN ACHIEVED LARGELY THROUGH BETTER INTEGRATION WITH THE GLOBAL ECONOMY, RESULTING IN A COUNTRY’S GROSS DOMESTIC PRODUCT (G.D.P.) INCREASINGLY BEING ASSOCIATED WITH EXPORTS AND IMPORTS, AND WITH A COUNTRY’S EXPORT SECTOR BECOMING AN INCREASINGLY CRITICAL GROWTH DRIVER. MOREOVER, THE SYSTEMATIC REDUCTION OF BARRIERS TO TRADE AND INVESTMENT, AS WELL AS THE RAPIDLY FALLING COSTS OF TRANSPORTATION AND INFORMATION AND COMMUNICATIONS TECHNOLOGY (I.C.T.), HAVE ALL COMBINED TO RAISE THIS LEVEL OF INTEGRATION. IT IS THESE COMBINED EFFECTS THAT HAVE MADE THE GLOBAL ECONOMY AN INCREASINGLY IMPORTANT SOURCE OF GROWTH. HENCE, IT IS MY WISH THAT CO-OPERATIVES TAKE FULL ADVANTAGE OF THE EFFECTS OF GLOBALISATION TO STRENGTHEN THEIR ROLE IN THE NATIONAL ECONOMY. FOR EXAMPLE, THOSE CO-OPERATIVES THAT POSSESS THE RESOURCES AND CAPACITY, SHOULD SEEK TO INCREASE THEIR INCOMES BY PARTICIPATING IN THE EXPORT SECTOR. IN THIS REGARD, WE SHOULD COMMEND THE I.C.A. FOR SUCCESSFULLY ORGANISING THE INAUGURAL INTERNATIONAL CO-OPERATIVE TRADE FAIR IN TEHRAN LAST OCTOBER 2006. THIS WAS THE FIRST STEP TOWARDS THE CREATION OF A GLOBAL CO-OPERATIVE TRADE NETWORK, AIMED AT BRINGING INCREASED BENEFITS TO ALL PARTIES. GOING FORWARD, I HOPE THAT MORE EFFORTS WILL BE UNDERTAKEN TO SUSTAIN THIS INITIATIVE. MEANWHILE, THE HIGH GROWTH OF DEVELOPING ECONOMIES HAS ALSO RESULTED IN BETTER RESOURCE MOBILITY, WHICH IS REFLECTED IN THE MOVEMENT OF PEOPLE FROM RURAL AREAS TO NEW INDUSTRIAL CORRIDORS THAT HAVE SPRUNG UP IN THE URBAN CENTRES. THESE MIGRATIONS HAVE GENERALLY RESULTED IN INCREASED PRODUCTIVITY, AND IN AN OVERALL IMPROVEMENT IN THE STANDARD OF LIVING. HOWEVER, THERE IS ALSO A TENDENCY FOR INEQUALITY TO ARISE IN THESE CIRCUMSTANCES, WHICH CAN BE SOCIALLY AND POLITICALLY DISRUPTIVE. WHILE THIS MAY BE MITIGATED BY GOVERNMENTAL EFFORTS TO PROVIDE BASIC SERVICES SUCH AS HEALTHCARE, EDUCATION AND ACCESS TO INFRASTRUCTURE, THIS TASK SHOULD NOT BE LEFT TO THE GOVERNMENTS ALONE. IN THIS REGARD, I BELIEVE THAT CO-OPERATIVES, TOO, CAN PLAY A ROLE IN MITIGATING THE GROWING INEQUALITIES THAT HAVE ARISEN. AT THE NATIONAL LEVEL, CO-OPERATIVES CAN PLAY A ROLE BY IDENTIFYING SPECIFIC GROUPS THAT HAVE BEEN UNWITTINGLY LEFT OUT IN THE GROWING MOBILISATION OF RESOURCES FROM RURAL TO URBAN AREAS. THUS, CO-OPERATIVES SHOULD BE FORMED AMONG GROUPS COMPRISING YOUTH, WOMEN, PENSIONERS, AND THE PHYSICALLY CHALLENGED, AMONG OTHERS. FOR RURAL AREAS SPECIFICALLY, CO-OPERATIVES CAN PLAY A VITAL ROLE BY INCREASING THEIR INVOLVEMENT IN THE AGRICULTURAL SECTOR; AND BY PLAYING A MORE MEANINGFUL ROLE IN LOCALISED DEVELOPMENT AS WELL AS IN POVERTY ERADICATION PROGRAMS. IN THIS WAY, CO-OPERATIVES ARE ABLE TO PLAY THEIR PART IN CREATING AND SUSTAINING GROWTH IN THE RURAL AREAS, THEREBY CONTRIBUTING TO THE INCREASED INCOME OF THE RURAL POPULATION. NEVERTHELESS, CO-OPERATIVES WILL NEED TO OVERCOME SEVERAL WEAKNESSES IN ORDER TO PLAY THESE ROLES EFFECTIVELY. FIRSTLY, THERE IS A LACK OF UNIFORMITY IN THE DEVELOPMENT OF CO-OPERATIVES AMONG THE VARIOUS SUB-REGIONS AND COUNTRIES OF THE ASIA-PACIFIC REGION. THIS MEANS THAT THE APPROACH TOWARDS CO-OPERATIVE DEVELOPMENT CANNOT BE UNIFORMLY APPLIED ACROSS THE BOARD. THUS, AT PRESENT, DIFFERENT COUNTRIES WILL NEED TO USE DIFFERENT APPROACHES TO ADDRESS THE NEEDS OF THEIR RESPECTIVE CO-OPERATIVE MOVEMENTS. MOREOVER, ALTHOUGH SOME CO-OPERATIVES ARE GLOBAL IN THEIR REACH, THEY MANY NOT HAVE FULLY ADDRESSED THE EFFECTS OF GLOBALISATION THROUGH THE EFFECTIVE USE OF NETWORKING. THE CO-OPERATIVE MOVEMENT, BEING PEOPLE BASED, TENDS TO CONCENTRATE ON DOMESTIC ISSUES, AND THEREFORE FACES DIFFICULTY WHEN TRYING TO EXPAND ITS ACTIVITIES BEYOND NATIONAL BORDERS. THIS RESULTS IN CO-OPERATIVES UNABLE TO GROW IN SIZE AND OPERATION TO TAKE ADVANTAGE OF ECONOMIES OF SCALE, WHICH CAN THEN BE TRANSLATED INTO PROVIDING BETTER SERVICES TO MEMBERS AND THE COMMUNITY AT LARGE. ULTIMATELY, A SIGNIFICANT NUMBER OF CO-OPERATIVES SUFFER FROM A SERIOUS LACK OF COMPETITIVE, RESILIENT AND SUSTAINABLE BUSINESS OPERATIONS. THUS, CO-OPERATIVES MUST ADDRESS THESE CONCERNS BY UNDERTAKING SPECIFIC MEASURES THAT WILL ENSURE THEIR LONG TERM SURVIVAL AND RELEVANCE AS A SOCIO-ECONOMIC MOVEMENT. TO BEGIN WITH, CO-OPERATIVES MUST FIRST ENSURE THAT BASIC ADMINISTRATIVE REQUIREMENTS SUCH AS THE HOLDING OF GENERAL MEETINGS AND TIMELY AUDIT OF ACCOUNTS ARE ADHERED TO. NEXT, THERE MUST BE A CLEAR SEPARATION BETWEEN THE ROLES OF THE BOARD, WHICH SHOULD CONCENTRATE ON POLICY, AND THE MANAGEMENT, WHICH SHOULD FOCUS ON RUNNING THE DAY TO DAY OPERATIONS OF THE ENTERPRISE. IN THIS REGARD, CO-OPERATIVES SHOULD SEEK THE INVOLVEMENT OF SKILLED MANAGERS IN THEIR BUSINESS, AND ENGAGE MORE PROFESSIONALS IN PLANNING AND IMPLEMENTING THEIR VARIOUS PROJECTS. THE NEXT PHASE INVOLVES CO-OPERATIVES NETWORKING AMONG THEMSELVES TO LEVERAGE UPON AVAILABLE RESOURCES AND BECOMING MORE COST EFFICIENT. IN THIS WAY, CO-OPERATIVES WILL BE ADDING VALUE TO THE EXISTING CHAIN OF ACTIVITIES AS WELL AS BE ABLE TO IDENTIFY NEW VALUE CREATING ACTIVITIES. THIS CAN ONLY BE ACHIEVED IF CO-OPERATIVE LEADERS BECOME MORE ENTREPRENEURIAL IN PLANNING AND IMPLEMENTING THEIR STRATEGIES. LADIES AND GENTLEMEN. I WOULD LIKE TO POINT OUT THAT GOVERNMENTS ARE IMPORTANT STAKEHOLDERS, AND WILL CONTINUE TO PLAY A SIGNIFICANT ROLE IN THE SUPERVISION, REGULATION AS WELL AS DEVELOPMENT OF THE CO-OPERATIVE SECTOR. HENCE, SUCH A ROLE MUST BE CARRIED OUT CAREFULLY SO AS TO ENSURE THAT THE SECTOR’S OBJECTIVES ARE ACHIEVED IN THE BEST POSSIBLE MANNER, WITHOUT UNDUE STRESS ON THE CO-OPERATIVE MOVEMENT ITSELF. IN MY VIEW, IT IS IMPERATIVE FOR GOVERNMENTS TO FORMULATE CLEAR AND SUPPORTIVE POLICY FRAMEWORKS FOR THE CO-OPERATIVE SECTOR, WHICH ARE FURTHER AUGMENTED BY A SOUND LEGISLATIVE FRAMEWORK FOR THE REGULATION AND SUPERVISION OF CO-OPERATIVES. WITH THESE MECHANISMS IN PLACE, GOVERNMENTS WILL BE ABLE TO PROVIDE THE NECESSARY SUPPORT TO CO-OPERATIVES BY WAY OF: • FIRSTLY, CREATING A CONDUCIVE ENVIRONMENT FOR THE HEALTHY DEVELOPMENT OF CO-OPERATIVES; . Secondly, MAINTAINING DEMOCRATIC TRADITIONS AND NON INTERFERENCE IN THE COMPOSITION OF THE BOARDS AND MANAGEMENT STRUCTURE *THIRDLY, PROVIDING RELEVANT SUPPORT MECHANISMS WHEN FORMULATING NATIONAL DEVELOPMENT PLANS FOR THE CO-OPERATIVE SECTOR; • FOURTHLY, RESPECTING THE AUTONOMY AND INDEPENDENCE OF CO-OPERATIVES BY ALLOWING THEM TO BE RESPONSIBLE FOR THEIR OWN ACTIONS, INCLUDING PLANNING AND ACCOUNTABILITY OF BUSINESS RISKS; AND • FIFTHLY, ABOVE ALL, ENSURING THAT THE AUTHORITIES FACILITATE AND NOT FRUSTRATE THE ASPIRATIONS OF CO-OPERATIVES IN ACHIEVING THEIR GOALS AND IN AIMING TO BE RESPONSIBLE PARTNERS IN NATIONAL DEVELOPMENT. IN MALAYSIA, THE CO-OPERATIVE MOVEMENT HAS MADE SIGNIFICANT PROGRESS SINCE IT WAS FIRST INTRODUCED IN 1922. SOME OF THIS HAS BEEN DUE TO THE GOVERNMENT’S CONSISTENT SUPPORT FOR THE GROWTH AND DEVELOPMENT OF CO-OPERATIVES IN ALMOST EVERY ECONOMIC SPHERE. THE NATIONAL CO-OPERATIVE POLICY (N.C.P.) INTRODUCED IN 2002 IS A HOLISTIC POLICY FRAMEWORK CRAFTED TO SUPPORT THE DEVELOPMENT OF THE CO-OPERATIVE SECTOR. THERE IS ALSO A COMPREHENSIVE LEGISLATIVE FRAMEWORK IN PLACE THROUGH THE ENACTMENT AND ENFORCEMENT OF THE CO-OPERATIVE SOCIETIES ACT 1993. MOREOVER, THE MALAYSIA CO-OPERATIVE SOCIETIES COMMISSION (M.C.S.C.), WHICH WILL BE ESTABLISHED THIS YEAR, WILL PROVIDE THE NECESSARY FINANCIAL AND OPERATIONAL GUIDANCE TO THE CO-OPERATIVE SECTOR, WHILE HELPING TO ENHANCE THE EXISTING REGULATORY FRAMEWORK. MY GOVERNMENT’S COMMITMENT TOWARDS THE DEVELOPMENT OF THE CO-OPERATIVE SECTOR IS ALSO REFLECTED IN TERMS OF THE INCREASED ALLOCATION UNDER THE NINTH MALAYSIA PLAN, WITH THE EMPHASIS ON DEVELOPING THE ENTREPRENEURIAL CAPABILITIES OF CO-OPERATIVES. THIS ENTAILS GREATER INVOLVEMENT OF CO-OPERATIVES IN TRADE, ESPECIALLY AT THE INTERNATIONAL LEVEL. AS A TRADING NATION, MALAYSIA MUST ALWAYS SEEK TO BE RESILIENT AND COMPETITIVE IN THE GLOBAL ECONOMY, AND CO-OPERATIVES MUST BE GIVEN THE OPPORTUNITY TO PLAY THEIR PART IN REALISING THESE GOALS. AS SUCH, MY GOVERNMENT’S MEASURES ARE EXPECTED TO BRING CO-OPERATIVES CLOSER INTO THE MAINSTREAM OF NATIONAL ECONOMIC GROWTH. WITH THESE MECHANISMS IN PLACE, IT IS MY HOPE AND EXPECTATION THAT THE CO-OPERATIVE SECTOR WILL RISE TO THE CHALLENGE AND BECOME A STRONG AND CAPABLE PARTNER, ALONGSIDE THE PUBLIC AND PRIVATE SECTORS, IN ACHIEVING THE NATIONAL OBJECTIVES SET OUT IN THE NATIONAL MISSION AND VISION 2020. LADIES AND GENTLEMEN LET ME STATE THAT MALAYSIA STRONGLY SUPPORTS THE ASIA-PACIFIC MINISTERS’ CONFERENCE, IN ENSURING THAT THE CO-OPERATIVE AGENDA IS AT THE FOREFRONT OF NATIONAL DEVELOPMENT IN THE VARIOUS COUNTRIES OF THE REGION. IT IS MY SINCERE HOPE THAT THIS CONFERENCE WILL HELP TO CHART A TIMELINE FOR MEMBER COUNTRIES TO REPORT, AT THE NEXT CONFERENCE, THE PROGRESS ACHIEVED IN IMPLEMENTING THE VARIOUS RESOLUTIONS ADOPTED HERE. IN THIS WAY, WE WILL BE ABLE TO TRACK THE COMMITMENT OF ALL PARTIES IN ENSURING THAT THE CO-OPERATIVE AGENDA CONTINUES TO BE GIVEN DUE RECOGNITION. I ALSO EXPECT THE I.C.A. TO PLAY AN IMPORTANT ROLE IN ENSURING THAT THE CONFERENCE LEADS TO CONCRETE AND REALISTIC PROPOSALS AS WELL AS IN WORKABLE ACTION PLANS THAT CAN BE MONITORED BY ALL PARTICIPANTS. AS SUCH, I WISH ALL DELEGATES A FRUITFUL AND PRODUCTIVE CONFERENCE HERE, AS WE MOVE TO CHART THE FUTURE OF ASIA PACIFIC COOPERATIVES TOGETHER. I BELIEVE THAT THE SUCCESS OF THIS CONFERENCE WILL BE REFLECTED IN MORE PROMINENT AND EFFECTIVE ROLES GIVEN TO CO-OPERATIVES IN THEIR RESPECTIVE COUNTRIES’ SOCIO-ECONOMIC DEVELOPMENT PROGRAMS IN THE YEARS TO COME. ON THAT NOTE, IT IS NOW MY HONOUR AND PRIVILEGE TO DECLARE THE EIGHTH ASIA-PACIFIC CO-OPERATIVE MINISTERS’ CONFERENCE, OPEN.THANK YOU. Pejabat Perdana Menteri http://www.pmo.gov.my/

CO-OPERATIVES TOURISM TO HELP ALLEVIATE POVERTY

The Role of the Cooperative Movement in Global and Sustainable Tourism By PARAMASVARAN S. Kandiah President, The International Cooperative Housing Foundation for Asia & the Pacific Deputy President, The Cooperative Union of Malaysia Limited Presented to the Meeting organised by TICA, the Cooperative Movement of Sri Lanka and the ICA Asian Regional Assembly in Colombo on 14th August 2006 It is a truism that Tourism and the urge to travel have now become the world’s largest industry and the creator of jobs across national and regional economies. It is forecast that Travel & Tourism will generate, directly and indirectly, 11.7% of GDP and nearly 260 million jobs in the world-wide economy by the Year 2020. Tourism has now been acknowledged as one of the important Sectoral Organisations of the International Cooperative Alliance. Tourism unfortunately thus far has not played a dominant role in the overall economic and social development of the Cooperative Movement since the inception of Cooperatives more than a century ago.. Somehow Tourism was left to the sidelines for such a long stretch of time. Steps now being taken in various forms to stimulate the Tourism Sector of the Cooperative Movement through the aegis of TICA and the untiring efforts of persons like Dr Maurizio Davolio and Shri Sanjay Verma of the National Cooperative Union of India need to be lauded Jobs generated by Travel & Tourism are spread across the economy - in retail, construction, manufacturing and telecommunications, as well as directly in Travel & Tourism companies. These jobs which employ a large proportion of women, minorities and young people; are predominantly in small and medium sized companies; and offer good training and transferability. Tourism can also be one of the most effective drivers for the development of regional economies. These patterns apply to both developed and emerging economies. The 1992 United Nations Conference on Environment and Development (UNCED), the Rio Earth Summit have identified Travel & Tourism as one of the key sectors of the economy which could make a positive contribution to achieving sustainable development. The Earth Summit lead to the adoption of Agenda 21, a comprehensive program of action adopted by 182 governments to provide a global blueprint for achieving sustainable development. Travel & Tourism is able to contribute to development which is economically, ecologically and socially sustainable, because it: · has less impact on natural resources and the environment than most other industries; · is based on enjoyment and appreciation of local culture, built heritage, and natural environment, as such that the industry has a direct and powerful motivation to protect these assets; · can play a positive part in increasing consumer commitment to sustainable development principles through its unparalleled consumer distribution channels; and · provides an economic incentive to conserve natural environments and habitats which might otherwise be allocated to more environmentally damaging land uses, thereby, helping to maintain bio-diversity. There are numerous good examples of where Tourism is acting as a catalyst for conservation and improvement of the environment and maintenance of local diversity and culture To a greater degree than most activities, Travel & Tourism depends on a wide range of infrastructure services - airports, air navigation, roads, railheads and ports, as well as basic infrastructure services required by hotels, restaurants, shops, and recreation facilities (e.g. telecommunications and utilities) It is the combination of tourism and good infrastructure that underpins the economic, environmental and social benefits. Travel & Tourism creates jobs and wealth and has tremendous potential to contribute to economically, environmentally and socially sustainable development in both developed countries and emerging nations. It is an ideal industry for small scale Co-operatives because it has a comparative advantage in that its start up and running costs can be low compared to many other forms of industry development. Travel & Tourism take many different forms - from a trip only a few hours away from home to long distance travel overseas. A common belief is that most travels involve large numbers of visitors from developed countries travelling by air to destinations in emerging countries. In fact, in most countries, the domestic tourism market is larger than the inbound market. Of course, the social and cultural impact of inbound visitors is often greater than that of domestic tourists. Whether tourism is domestic or international, it involves visiting a destination away from the area in which one lives and using the services available in that destination. Therefore, tourists’ requirements are for travel services to reach their destinations and once there, for services such as shelter, water, food, sanitation and entertainment. These are all areas into which small scale Co-operatives can easily venture into. What makes tourism special is that, many of these different products and services are often supplied by different operators: usually small or medium sized businesses in local ownership and which are most ideal for small scale Co-operative industries. This makes tourism a highly fragmented and diverse industry and as such co-ordinated, industry-wide action is difficult to achieve. Despite the difficulties caused by fragmentation and lengthy supply chains, there has been a steady growth in environmental good practice across the industry in recent years. There are examples of - airlines and airports reducing pollution and noise impacts; cruise liners practising marine conservation; hotels implementing energy consumption and waste disposal programs; car rental companies investing in increasingly fuel efficient fleets and railways sound proofing to dampen noise. The ICA and its world wide members can become the focus for TICA to become the global leaders forum for the Cooperative Tourism industry. TICA at global, regional and national or grouping of nations level must now set in place an extensive strategy to promote tourism as one of the main sectoral activities of the Movement as a whole both in the vertical and horizontal sphere of tourism and travel related activities whilst at the same time giving due regard to a culture of sustainable development and in this regard could follow the private sector practise of putting into place an appropriate tiered structure for its achievement. This would involve : Launching an action plan for Cooperatives to work towards : “Environmentally Sustainable Development” through a series of regional seminars to increase awareness of the conclusions, and to adapt the program for local implementation. TICA may seek affiliation to the International Hotel & Restaurant Association (IH&RA), based in Paris, which represents over 700,000 establishments in more than 150 countries. Its membership comprises some 50 national and international hotel and restaurant chains, over 110 national hotel and restaurant associations, independent hotel operators and restaurateurs, industry suppliers and 130 hotel schools. The IH&RA has offices in Asia-Pacific and Latin America. It is also the voice of the world’s hotels and restaurants and plays a global role in representing, protecting, promoting and informing the industry to enable its members to achieve their business objectives. The International Hotel Environment Initiative (IHEI), based in London, England, is a program of The Prince of Wales Business Leaders Forum. Founded in 1992 by a consortium of chief executives from 10 multinational hotel groups and IHEI is an educational charity designed to encourage continuous improvement in the environmental performance of the global hotel industry. It does this through: · raising environmental awareness in the hotel industry by promoting good practice internationally; · developing hotel-specific guidance, enabling hotels of all sizes to implement environmental programs; and · multiplying the reach and impact of IHEI by working with partners, including hotel associations, governments, NGOs, tourism bodies and businesses. The Co-operative Research Centre for Sustainable Tourism, based in Australia, was established in 1997 to enhance the strategic knowledge available to the Travel & Tourism industry through: · long-term high-quality scientific and technological research which contributes to the development of an internationally competitive tourism industry; · strengthening the links between research and its commercial and other applications; · promoting co-operative research; and · stimulating education and training, particularly in graduate programs, through active involvement of researchers from outside the higher education system in educational activities, and of graduate students in major research programs. The number of initiatives undertaken and being undertaken by individual companies is large. TICA would be proud to know that we are gathered in the country where the Kandalama Hotel of Sri Lanka has been a recipient of the “GREEN GLOBE” award, 3 years in a row, for its commitment to environmental excellence. The hotel is reputed to have undertaken measures in the following areas to ensure that its operations are more sustainable: · cultural and social - hotel employment, providing community infrastructure and development; · natural environment - soil erosion measures and planting forests; · pollution - sewage, solid waste and noise pollution reduction programs; and · environmental communication - construction of an Eco Park where all waste is treated within the park, a dry debris sorting centre, a lecture room to promote environmental awareness and a sustainable development library. The Cooperative Movement along with the public sectors, particularly national and local government, has an important role to play by setting the agenda and providing the framework in which action should take place. The regulatory environment also plays an important role in creating the conditions suitable for sustainable tourism. Self-regulation involving the agreement and co-operation of industry is always likely to be the most effective solution. Therefore, the role of Cooperatives and industry organisations in distributing information among their members and encouraging participation is essential. . The major partnerships to be formed are between: · industry and the public sector - to ensure consistency with the framework; · industry and the Cooperative Sector - to tap into the enormous resources of expertise and good will that this sector is able to generate; and · industry and the public - both travellers themselves and the people who live in the places they visit to develop more sustainable forms of tourism A broad based approach is called for - which requires Travel related Cooperatives to work with: · national governments to raise the profile of environmental and social issues within the education system; · NGOs to raise awareness of tourism issues in their work and activities and provide feedback to the Travel & Tourism industry; · development organisations to communicate with host communities to understand their needs and requirements; · local authorities to engage local people through the inclusion of tourism issues; · national and international trade associations, labour representative organisations and training providers to increase awareness and training of staff in environmental and social issues; · Publications (such as travel guides); · Journalists to raise the profile of reporting environmental and social impacts of tourism among consumers and tourism businesses; and · the Internet as a source of information for potential travellers. The Cooperative Movement has a solemn duty and a vested interest in protecting the natural and cultural resources that are the core of its tourism business. There are examples, however, from around the world where the impact of Tourism has been damaging to the local environment and people. Some of the factors which contributes to the harmful impact of tourism which can be addressed by Co-operators are: · a lack of awareness on the part of those making decisions about tourism development of the social, economic and environmental balance to be pursued in achieving sustainable development; · a lack of commitment by tourism operators and travellers to contribute to the maintenance of the local environment and culture of the host destination; · a weak institutional framework with inadequate controls can lead to tourism development which is both inappropriate and intrusive; · unfairly traded tourism, whereby local communities are unable to share in its benefits; · large flows of visitors in remote or sensitive locations can place considerable strains on local resources (particularly water) and supply systems. Travellers’ expectations of the goods and services, which should be available, can lead to these items or services, being imported from outside or local supply chains, being distorted to meet demands; and · tourism can change a destination’s cultural make-up and, if poorly developed, can increase crime, prostitution and other social problems. In order for tourism to realise its potential to achieve broad-based sustainable development, an effective partnership between Government and all sectors of the industry will be required. It is understood thast in India, that the government is pump priming local “eco-tourism” activities, which are primarily driven by local women. In Mexico, the government is kick starting village development for “eco-tourism” lodges in the Chiapas region involving the whole community. In England, the government has recently held a national consultation on sustainable tourism and, as a result, is developing a new strategy for tourism, which incorporates the principles of sustainable development as a core component. Tourism provides an essential lifeline for many coastal communities. Faced with the prospect of increasing financial hardship, more and more coastal communities have turned to tourism as a means of generating income and survival. Tourism’s impact on the coastal zone has, therefore, been largely positive. Of course, as in any area, if Tourism is not properly managed and developed, it can be harmful. The development of a sustainable tourism industry in the coastal zone offers numerous opportunities. Opportunities includes, those for nature conservation – which, given the increasing interest in high quality natural and cultural experiences, can help to reverse the decline in market share of many coastal destinations. Tourism also provides important opportunities for strengthening local industries. Where industries are in decline, tourism ventures can help supplement declining income. The following examples illustrate what can be done to make the most of the opportunities offered by tourism in the coastal zone: TICA is fully aware that Tourism has a number of advantages over other industry sectors: · it creates jobs and wealth whilst; · at the same time, it can contribute to sustainable development; · it tends to have low start-up costs; · is a viable option in a wide range of areas and regions; · is likely to continue to grow for the foreseeable future; and · the industry is, in a large part, aware of the need to protect the resource on which it is based - local culture and built and natural environment - and it is committed to these resources’ preservation and enhancement. The Cooperatives in addition to entering into the fray of tourism at all levls should also make the attempt by making a concerted effort to build up programs for sustainable development. However, it cannot do this alone. If Tourism is to continue to flourish and to contribute to sustainable development, it needs help from all fronts and essentially from the national Governments. This assistance is needed in two forms: - both positive encouragement for sustainable tourism initiatives and an understanding that policy decisions in other areas can effect Travel & Tourism. In practical terms, what this means is the following: Governments in most countries are already more than aware that Tourism is a core service sector which should always be considered when looking at policies to expand trade, increase employment, modernise infrastructure and encourage investment - at both domestic and Cooperatives should also seek Government intervention to minimise regulatory impediments and by offering appropriate investment incentives. By supporting tourism and allowing it to compete in open and fair markets, tourism’s benefits can be more easily secured. Finally, the Cooperative Movement must take the initiative to address some of the fundamental barriers to tourism growth by looking at how to expand and modernise infrastructure, to render fair services and to invest in human resource development.

CO-OPERATIVE ACT (REVISED) 2007 - UNCONSTITUTIONAL

Unfair of gov't grab our hard-earned funds Che Hani Ismail Jan 8, 08 4:54pm Allow us to state that several provisions in the Acts establishing the Malaysian Cooperative Commission and amending the Cooperative Societies Act 1993 are contrary to Federal Constitution.Koperasi Keretapi Berhad (KKB) had on Wednesday filed a legal action in the Kuala Lumpur High Court to challenge several of the provisions in the Malaysia Cooperative Commission Act 2007 and the Cooperative Societies (Amendment) Act 2007 which came into force on Jan 1.KKB feels it is unreasonable for its capital, which has been built up over the years for the benefit of its members as a result of good management by the members of its board, to now be taken away and used by the government without adequate compensation. The requirement for an outside body to approve the members of the board is also an unreasonable restriction on the rights of the members of KKB to manage KKB.KKB has taken this step because we feel aggrieved by several of the provisions which unreasonably restrict the following:- the fundamental liberty of members of KKB to associate under Article 10 of the Federal Constitution- the fundamental liberty of KKB not to be deprived of its property for the use of the government without adequate compensation in accordance with Article 13 of the Federal Constitution- the fundamental liberty of the officers of KKB not to be subjected to arbitrary arrest under Article 5 of the Federal ConstitutionKoperasi Keretapi Berhad is one of the earliest cooperative societies established in Malaysia. In 1923, it was formed for the benefit of employees of Malayan Railways with the name 'Railway Cooperative Thrift and Loan Society Limited' with only 98 members. As of Dec 31, 2006, the cooperative has a subscription capital of RM4,342,257.99 and fixed and current assets amounting to RM4,674,199.73 and reserve capitals of RM1,092,000 whilst its current liabilities are only RM282,185.88. Section 43 (1) of the Malaysian Cooperative Societies Commission Act 2007 (the Act) requires that all cooperative societies shall deposit their funds not immediately needed for operations or investments into the Cooperative Deposit Account while Section 42(2) of the Act requires cooperative societies to pay a percentage of their share capital, subscription capital and assets to the Central Liquidity Fund without providing for adequate compensation for the compulsory acquisition or use of the funds. Meanwhile, Section 43 (2) of the Cooperative Societies Act 1993 (as amended by the Cooperative Societies Amendment Act 2007) requires that a cooperative society shall, prior to the appointment or re-appointment of any person as a member of the board of a cooperative society, seek verification from the Malaysia Cooperative Societies Commission on whether such person satisfies the fit and proper person criteria as may be specified by the Malaysia Cooperative Societies Commission.This is inconsistent with the citizens' fundamental right of freedom of association guaranteed by Article 10 (1) of the Federal Constitution, and not excepted by Article 10 (2), 10 (3) or 10 (4) of the Federal Constitution. KKB has taken legal action to safeguard the interests of our members and their savings. We hope the government will review their decision to enforce the Act or will take the necessary steps to repeal or amend the Act so it is consistent with the requirements of the Federal Constitution.