COOPERATIVES - THE "RIGHT" TO INFORMATION

RIGHT TO INFORMATION ACT AND COOPERATIVES

Dr. M.L.Khurana, Secretary General,

International Co-operative Housing Foundation for Asia & the Pacific.

‘Information’ plays an important role in shaping the life of every individual. We need one or the other information in every aspect of our life. In a democratic set-up it assumes greater importance as elected representatives govern the country and citizens who elect them and also pay taxes have every right to know how they are governed and how their money is spent.

Information, therefore, is the life-blood that sustains political, social and business decisions. Earlier, the Government and Public authorities used to control "information " and it was not shared with people. But today with globalization, achievements in information technology and the important role played by media and social activists people have become more enlightened and want transparency in the functioning of public authorities.

Article 19(a) of the Indian Constitution includes the right to freedom of speech and expression which indirectly increases the participation of Indian citizens in the functioning of the Government and simultaneously allows them to seek information from the Government and the concerned public authorities.

Similarly, it is stated that in the introduction of the Right to Information Act, 2005 (RTA) that democracy requires an informed citizenry and there shall be transparency of functioning so as to withhold corruption and to hold the Government and their instrumentalities accountable to the governed.

Definition of ‘information’

Information is derived from a Latin word ‘formation’ and ‘forma’ which means giving shape to something.

The Encyclopedia ‘Britannica’ defines information as “facts and opinion provided and received during the course of daily life; one obtains information directly from other living beings; from mass media, from electronic data banks, and from all sorts of observable phenomena in the surrounding environment”. It further states that information organized according to some logical relationships is referred to as a body of knowledge, to be acquired by systematic exposure or study.

As per RTA-2005 ‘information’ means any material in any form, including records, documents, memos, e-mails, opinions, advices, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body which can be accessed by a public authority under any other law for the time being in force.

The Assam State Right to Information Act, 2001 states that ‘information’ ‘means and includes information relating to any matter in respect of the affairs of the administration or decisions of the State Government or a Public Authority but does not include any such information the publication of which has been prohibited by any law for the time being in force or by any notification issued by the State Government from time to time under this Act.

The Goa Right to Information Act, 1997 states that ‘information’ means any material or information relating to affairs of the State or any local or other authorities constituted under any enactment passed by the Legislative Assembly or a Company, Corporation, Trust, firm, Society or a Cooperative Society, or any organization funded or controlled by the Government or executing any public work or service on behalf of or as authorized by the Government.

The J&K Right to Information Act, 2004 defines it as any document or information relating to the affairs of the State or a public body.

The Karnataka Right to Information Act, 2000 defines it as information relating to any matter in respect of the affairs of the administration or decisions of a public authority.

The Rajasthan Right to Information Act, 2000 defines ‘information’ as any material or information relating to the affairs of the State or a public body.

In simple words ‘information’ means the knowledge about the affairs relating to the State or its authorities. Right to Information means:

Right to information means to have access to knowledge or facts which is held by or is under the control of any public authority and includes the right to: (i) inspect works, documents and records, (ii) Take notes, extracts or certified copies of documents or records,

(iii) Take certified samples of material (iv) Obtain information in the form of diskettes, floppies, tapes, video cassettes or

in any other electronic mode or through printouts.

Importance of RTA

The right to information is a fundamental right flowing from freedom of speech and expression guaranteed under Article 19(a) of the Constitution. The RTA has, therefore, set-out a practical regime to right to information for citizens to have access to information under the control of public authorities. This has been done to promote transparency and accountability in the working of every public authority. The Right to Information Act is, therefore, very important for strengthening democracy ensuring transparency and accountability in the actions of public authorities and it enhances the quality of life of people and their participation in governance. Enactment of RTA-2005 In order to promote openness, transparency and accountability in the administration of the public authorities and enhance the quality of life of citizens and their participation in the governance and strengthened their involvement in the decision making, the Government of India enacted the Freedom of Information Act,2002. The Act could not be brought into force because of various reasons. TheNational Common Minimum Programme of the present Government committed to make the Information Act more progressive, participatory and meaningful repealedthe Freedom of Information Act, 2002 and replaced it by a new legislation ‘Right to Information Act, 2005’ by including various suggestions of the National Advisory Council. The emphasis on enacting the new legislation was to provide an effective framework for effectuating the right to information recognized and implied under Article 19 of the Constitution of India.

The Right to Information Bill, 2005 was passed by the Lok Sabha on 11th May, 2005 and by the Rajya Sabha on 12th May, 2005 and it received the Presidential assent on 15th June, 2005 following which it came on the statute Book as Right to Information Act, 2005 (22of 2005). The main aim of the Act is to introduce discipline in various functionaries in the Government administration. The Act provides practical regime to right to information to citizens to secure and access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority.

Before Central Right to Information Act, some of the States like Assam (2002), Delhi (2001), Goa (1997), J&K (2004), Karnataka (2002), Madhya Pradesh (2003), Maharashtra (2002), Rajasthan (2002), Tamil Nadu (1997) and U.P. (Code of Practice on Access to Information, Government of U.P. 2002) had enacted their own right to information Act.

The Right to Information Act, 2005 at a Glance

Section Provision Subject matter 2 Definitions

Central/State Information Commission, Information, right to information, third party and competent authority etc. defined. 3 Right to Information

All citizens shall have such right

4 Obligation of public

Strict provisions for providing information, maintenance of records etc. and publication of particulars and functions of organizations.

5 Public Information Officers Designation of Central Public Information Officers or State Public Information Officers etc.

6 Request for obtaining information Written request or through electronic mode with fee.

7 Disposal of request Within 30 days from date of request in normal cases but if the information matters the life or liberty of a person it can be obtained within 48 hours from time of request.

8 Exempted information Information affecting sovereignty of India, security, strategic, scientific and economic interest of State, forbidden information, secret information and cabinet information etc. cannot be obtained

9 Grounds for rejection Information not to be provided if it involves the infringement of copyright of an individual

10 Part information If some part of record is exempted from disclosure, then information of other part can be obtained

11 Third Party Information Submission of third party to be considered

12 Constitution of Central Information Commission Power conferred on Central Government

15 Constitution of State Information Commission Power conferred on State Government

19 Appeal Within 30 days after expiry of specified time for decision or within 30 days from date of decision the appeal can be made to Senior Information Officer

20 Penalties Rs.250 per day till application is received or information is furnished in the Central Information Commission or State Information Commission as the case may be, subject to maximum limit of Rs. 25,000. Disciplinary action can also be taken under the service rules

23 Jurisdiction of Court Court has no jurisdiction to deal with complaint, appeal etc.

24 Act not to apply to certain Government organizations Information in relation to certain organizations cannot be obtained.

There is no doubt that the Right to Information Act, 2005 showers the public with opportunities to acquire information through competent sources, however at the same time the Act seldom touches to the question that whether information furnished is adequate or not and the same is justifiable or not.

Right to Information Act and Cooperatives

In India, cooperation is a State subject and cooperatives are registered under their respective State Cooperative Societies Acts except the multi-state cooperative societies and national cooperative federations which are registered under the Multi- State Cooperative Societies Act, 2002.

The question that arises is whether the cooperatives are covered under the RTA of the concerned State in which they are registered or not. This is important and pertinent to know as it will substantially affect the working of cooperatives. Only the Madhya Pradesh Jankari Ki Swatantrata Adhiniyam 2002 (No. 3 of 2003) defines “public body” means all officers of the State Government (ii) all local authorities and statutory authorities constituted under any Act of the State Legislature for the time being in force and all companies, corporations and cooperative societies in which not less than fifty one percent of the paid-up share capital is held by the State Government……….” 2(b) This means only the cooperative societies which have 51% of the share capital contributed by the State Government are covered under the above Act. Let us see what Information Acts of different States say in this regard. The Assam Right to Information Act says that a cooperative society or any other society or a trust or any other organization or institution established under any law for the time being in force by the State Government and directly controlled or funded by it. The Goa Right to Information Act, 1997 says information means any material or information relating to affairs of the state or any local or other authorities constituted under any enactment passed by the Legislative Assembly of Goa for the time being in force or a Statutory Authority or a Company, Corporation, Trust, Firm, Society or a cooperative society,or any other organization funded or controlled by the Government or executing any public work or service on behalf of or as authorized by the Government.

The J&K Right to Information Act says a ‘public body’ shall include “a society or a cooperative society or any other organization established under any law for the time being in force, by the Government and directly controlled or funded by it;” 2(f)(iv). The Karnataka Right to Information Act, 2000 defines “public authority” as “all local authorities, all authorities constituted by or under any Act of the State Legislature for the time being in force, a company, Corporation, trust, society, any statutory or other authority, Cooperative Society or any other organization or body funded, owned or controlled by the State Government” 2(c)(iii). The Maharashtra Right to Information Act, 2000 says “information” includes a copy of any document relating to the affairs of the State or any local or other authorities constituted under any Act for the time being in force or a statutory authority or a company, corporation or a cooperative society or any organization, owned, or controlled by the Government. 2(3). The Rajasthan Right to Information Act, 2000 says public body shall include “a society or a cooperative society or any other organization established under any law for the time being in force, by the State Government and directly controlled or funded by it”. 2(v)(d).

The Tamil Nadu Right to Information Act, 1997 says “information” includes copy of any document relating to the affairs of the Stateor any local or other authorities constituted under any Act for the time being in force or a statutory authority or a company, corporation or a cooperative society or anyorganization owned or controlled by the Government”. 2(3). The Central RTA, 2005 defines public authority as any authority of body or institution of self-government established or constituted- (a) by or under the Constitution (b) by any other law made by Parliament (c) by any other law made by State Legislature (d) by notification issued or order made by the appropriate Government, and includes

any (i) body owned, controlled or substantially financed; (ii) non-Government organization substantially financed, directly or indirectly by funds provided by the appropriate Government; 2(h)

As cooperatives are democratic, self-help organizations controlled by their members, members contribute equally to the society and democratically control the capital and actively participate in setting the policies and decision making in the cooperative, there is an in-built mechanism under the provisions of Cooperative Laws to protect the rights of its members. Therefore, the cooperatives in which there is less than 51% equity participation of the Government or which are not receiving substantial Government grant should not come under the purview of Right to Information Act of State or Centre.

Shri Suresh Pachouri, Hon’ble Minister of Statefor Personnel, Public Grievances and Pension, Government of India in moving the motion for consideration of the Bill said “………………the scope of this Bill extends to all the authorities and bodies under the constitution or any other law and inter alia includes all authorities under the Central Government, State Governments and local bodies. The non-Governmental organizations substantially funded directly or indirectly, by the public funds also come within the ambit of this Bill.”

Secondly, the 5th Principle of Cooperation which says cooperatives provide education, training and information for their members, elected representatives, managers, and employees so that they contribute effectively to the development of their cooperatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of cooperation. Each and every cooperative follows cooperative principles in its true spirits and shares the information about its functioning to their members.

The Government of India is also considering constitutional amendments to ensure democratic, autonomous and professional functioning of the cooperatives.

Thirdly, most of the Cooperative Societies Acts cover right to information where members or creditors can seek any information from their cooperatives by depositing a small amount fixed under the Act. For example, according to the Section 32 and Rule 30 of Maharashtra Cooperative Societies Act 1960 and Rules 1961 some rights have been given to members of cooperative societies to get some information. They are as follows:- every member of a society shall be entitled to inspect free of cost at the Society’s office during office hours, or any time fixed for the purpose by the society, a copy of the Act, the Rules and bye-laws, the last audited annual balance sheet, the profit and loss account, a list of the members of the Committee, a register of members, the minutes of general meetings, minutes of committee meetings and those portions of the books and records in which his transactions with the society have been recorded. A society can furnish to a member on request in writing and on payment of such fees as may be prescribed therefore, a copy of any of the documents mentioned in the foregoing sub-section within one month from the date of payment of such fees. Similarly under the newly enacted Delhi Cooperative Societies Act, 2003members or creditors can seek any information from the societies.

However, it is being observed that some elements are coming forward to seek information from the Cooperative Department regarding cooperative societies without establishing any cause of action by depositing small amount fixed under the Act. As an example, a member seeks information i.e. copies of all resolutions of General Body and Managing Committee for the last 10 years or audit report since the society is registered. He has no cause of action for seeking this information but only to harass the management of the societies. Defeated members in the election or their supporters adopt this technique and thus misuse the Information Act. Under the provisions of the Income Tax Rules, 1962 as well as the Companies Act, 1956, Books of Account are required to be maintained/preserved for a period of 6 years and 8 years respectively. Suggestions for Consideration

(i) In the above background, there is a need to modify the present States and Central Information Acts in order to regulate the public as well as Government Departments and public institutions by making provisions that person seeking information must establish cause of action before Public Grievances Commission only after which the information would be supplied to such person. (ii) Moreover, information for not more than three years old should be supplied under the Act. Cooperative societies are managed by honorary elected persons and they are short of staff due to financial restraints. Hence it is necessary to protect cooperative institutions from the vested interest of some individuals. (iii) Cooperatives being member controlled democratic organizations have laws protecting the rights of its members. The cooperatives in which there is less than 51% equity participation of the Government or which are not receiving substantial Government grant should not come under the purview of Right to Information Act. (iv) The National Cooperative Union of India should convene a National Seminar on the subject to discuss various provisions of different States and Federal Acts which adversely affects the working of cooperatives. The success of the RTA movement depends on the will of the politicians, positive attitude of bureaucrats and enlightened masses to use it only for good governance and not to mould the Act and misuse it for their vested interests or to harass somebody.

ICA CO-OP HOUSING NEWS

Community Land Trusts Conference Creating Affordable Housing

Published 05/23/2008

In conjunction with the Board meeting held in London at the end of April 2008, some ICA Housing Board members had the opportunity to attend the Community Land Trusts Conference Creating Affordable Housing, from concept to reality, organised by NewStart in association with Community Finance Solutions. In addition to a full day of presentations made by key experts, the organizers presented the results of the Community Land Trust Demonstration Programme whereby community groups have developed several pilot projects both in rural and urban England in the past two years.

• As in many developed countries, the UK is facing serious challenges with housing affordability both for the low- and middle-income families. Community Land Trusts are looked at one option to tackle this situation. Topics such availability of land and financing, appropriate legal framework, sustainable development and community engagement are at the center of the work undertaken. David Rogers, ICA Housing Board member and Executive Director of CDS Co-operatives presented a new form of shared equity housing co-operative to be developed in conjunction with a community land trust. To view his power point presentation click here. To download the conference documentation and speaker presentations visit www.clt-conference.co.uk/documentation and hit the download icon. The DVD, rural report and urban toolkits launched at the conference by the Community Finance Solutions are freely available. To receive them contact Jennifer Aird directly at:

  Jennifer Aird

  Community Finance Solutions English, Sociology, Politics and Contemporary History

  Room 214, Crescent House University of Salford

  Salford

  M5 4WT

  Phone: 0161 2954951 Email: J.Aird@salford.ac.uk

• ICA Housing Board London Site Visits

• Published 05/2/2008

• The ICA Housing Board met in London on Tuesday 29 April. CDS Coops, the host of the meeting in London, arranged for two site visits to CDS Housing Co-operatives. The first was to Sanford Housing Cooperative in New Cross and the second to St George's Church Housing Co-operative Limited in Camberwell. Click here to read about the climate change best practices being employed by the Sanford Housing Cooperative.

  The SHE project wins the National Energy Globe Award for Italy

  Published 04/16/2008 The International Jury for the Energy Globe Award 2007 has selected the SHE project, a 5-year initiative co-ordinated by Federabitazione Europe, as the national winner for Italy among a total of 853 projects from 109 nations.

• The ceremonious presentation is planned prior to the international television gala for the Energy Globe World Awards on May 26 2008 at the European Parliament in Brussels. The National Awards will be presented by high-ranking representatives of the European Parliament. » Read More GROWING SUSTAINABLE HOUSING MICROFINANCE OPTIONS IN SUB-SAHARAN AFRICA

  Enhancing the relevance and scale of housing finance for the poor
• Published 03/31/2008 A workshop entitled 'GROWING SUSTAINABLE HOUSING MICROFINANCE OPTIONS IN SUB-SAHARAN AFRICA: Enhancing the relevance and scale of housing finance for the poor, is being co-organized by Rooftops Canada, Habitat for Humanity and FinMark Trust, and supported by various other funders (negotiations are still underway), will take place from 19 to the 23rd of May at the Giraffe Ocean View Hotel in Dar Es Salaam, Tanzania. This workshop of housing finance practitioners will focus on housing micro finance. The workshop will be a problem solving initiative bringing together investors, financiers, and donors of retail housing lenders; experienced intermediaries (e.g. Microvest); and retailers (Housing Micro Finance Institutions, Micro Finance Institutions and NGOs).

• Key themes will include: state of practice; relevance; scale; and linkages. The workshop will stimulate a high level of interaction, so that participants can work together to find connections, and solutions to concerns raised from the different perspectives. The workshop will also showcase successes and the potential for housing micro finance.

• Practitioners will also be invited to set up displays setting out their particular organization, how they operate in their particular context, and demonstrating current successes and challenges. Click here for the workshop information booklet and click here for the Registration Form. » Read More

  Documentary of history of Inter Cooperative Council (ICC)

  Published 03/25/2008 The History of the Inter Cooperative Council (ICC) at the University of Michigan (UM), in Ann Arbor. The ICC is a Cooperative Housing organization for students at UM.

• The first Co-op in Ann Arbor was called Michigan Socialist House (Now Michigan Cooperative House) which was founded in 1932, and was part of the first wave of Co-operative housing for Students to come out of the depression. Today, the ICC has about 600 members across 19 houses.

• Click here to view the video of the ICC. » Read More

NABARD - REFINANCING AGENCY FOR RURAL CO-OPS IN INDIA

Nabard to open liquidity facility for cooperatives

National Bank for Agriculture and Rural Development (NABARD) will open a special liquidity assistance window for cooperative credit institutions, including state cooperative banks (SCBs), to tide over any tight resource conditions arising out of implementation of the farm debt waiver and relief scheme.

NABARD of India is the refinancing agency for rural cooperative organisations. "If the cooperative banks face resource constraints in the course of implementing the scheme, we will make financing arrangement to ensure that working is not affected," NABARD executive director S K Mitra said after meeting the chief executives of SCBs. The refinancer could borrow from the market to provide assistance to cooperative entities. It has already raised over Rs 100 crore through one-year paper that carries a 9.3 per cent coupon rate.

These bodies have already availed credit and have repayment obligations. In case they find it difficult to pay the instalment, the repayment time table could be rescheduled, he added. Asked about the feedback from CEOs on the problems in implementing the scheme, Mitra said the shortage of staff could become a hurdle. Meanwhile, NABARD chairman Umesh Chandra Sarangi told the CEOs about acute incidence of distress among the farmers. This should be the exclusive concern of the credit delivery system and cooperatives, he stressed.

NABARD also asked them to work out the cash flows and credit requirements before June 30, so as to ensure fresh loans to the distressed farmers.

OVER 92,000 HOUSING CO-OPERATIVES IN INDIA

New Delhi, June 3:

The Central Government ( Centre) has told State Governments that whatever land they develop for housing, 30 per cent of it should be given to housing co-operatives at concessions.

The letter from Kumari Selja, Minister of State for Housing and Urban Poverty alleviation, comes at a time the country faces a shortage of 2.47 crore homes in urban areas.

The move is aimed largely to serve the middle class, which has been left to fend for itself with government agencies focusing on housing for the poor and private developers wooing the rich.

Kumari Selja - the Union Minister of State for Housing and Poverty Alleviation has called a meeting of State housing ministers on July 18, 2008 to discuss how to promote housing co-operatives.

The National Urban Housing and Habitat Policy, approved last year, sees an important role for the co-operatives, which provide dwellings to their members on a no-profit, no-loss basis.

There are more than 92,000 primary housing co-operatives in the country have a membership of 65 lakh, and the Housing Co-operatives have built about 25 lakh homes.

The National Co-operative Housing Federation of India is the apex body for Housing Co-operatives in India.

Dr. M. L. Khurana is the Managing Director of NCHF and is also the Secretary General of The International Cooperative Housing Foundation for Asia & the Pacific.

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.