www.ilo.org/caribbean Caribbean Cooperative Management Training Programme WHAT IS A COOPERATIVE ENTERPRISE For the English-speaking Caribbean In preparing this training module, several ILO training packages were used, including My.COOP (Managing your Agricultural Cooperatives), SYB (Start Your Business) and SIYB (Start and Improve Your Business). Caribbean Cooperative Management Training Programmes IMPORTANT ORGANIZATIONS International Cooperative Alliance The International Co-operative Alliance (ICA) is an independent non-governmental organization established to unite, represent and serve cooperatives worldwide. Founded in London in 1895, it was based there until 1982 when it relocated to Geneva, Switzerland. The ICA provides a global voice and forum for knowledge, expertise and coordinated action for and about cooperatives. The ICA’s members are international and national cooperative organizations from all sectors of the economy including agriculture, banking, consumer, fisheries, health, housing, insurance and workers. The ICA represents close to 1 billion individual members. These statistics are calculated from the subscription formula on the ICA's 272 member organizations from 94 countries (as of 20 October 2013). On this basis, the global representative body for cooperatives is one of the largest non-governmental organizations in the world today by the number of people it represents, according to available figures. The ICA holds a consultative status in the General Assembly of the United Nations (ICA, n.d.). Immediately after its founding, the ICA adopted the Rochdale Cooperative Principles (with a few changes) as the basis for all cooperatives worldwide. These principles have been revised three iii times since then, the latest being in 1995 when its General Assembly also adopted a definition and a values statement to go with the principles (see section 2.2 of this Module). Many countries have included these principles in their cooperative legislation. International Labour Organization The International Labour Organization (ILO) is the only United Nations organization with a clear mandate to work on cooperatives. It has been serving the ILO constituents and the cooperative movement since its establishment in 1920, just a year after the ILO was founded in 1919. Over the years the Cooperatives Unit has specialized in helping the ILO improve its policies and legal infrastructures for cooperatives and build the capacity of national cooperative apex organizations through technical cooperation projects, training and consultancy services. The ILO has an important policy instrument in the Promotion of Cooperatives Recommendation, 2002 (No. 193), which has been used by more than 75 member States as a guideline in formulating new policies and laws or in revising the existing ones. This Module, along with the subsequent Modules 2 and 3 in this package, is an example of such adaption for the region. The ILO views cooperatives as important in improving the living and working conditions of women and men globally, as well as making essential infrastructure and services available even in areas neglected by the state and investor-driven enterprises. WHAT IS A COOPERATIVE ENTERPRICE Copyright © International Labour Organization 2017 First published 2018 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. 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Caribbean Cooperative Management Training Programmes: What is a Cooperative Enterprise/ International Labour Organization, Office for the Caribbean - Port of Spain: ILO, 2017 English Edition ISBN: 978-92-2-131553-7 (print) 978-92-2-131554-4 (web pdf) iv ILO DWT and Office for the Caribbean The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. 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Visit the ILO Office for the Caribbean’s webpage:www.ilo.org/caribbean Design: Simone Rudder (DPI) Caribbean Cooperative Management Training Programmes ACKNOWLEDGEMENTS The Caribbean Cooperative Management Training Programme modules is a result of the technical support received from the Cooperatives Unit of the International Labour Office (ILO) and the United Nations Development Programme (UNDP) and adapted from materials prepared by Tim Dyce and Associates, Sydney Education and Development Consultants based on ILO’s Start and Improve Your Business materials. The following experts from the Caribbean contributed significantly to the revision of this document: □ Mr. Nathaniel Adderley, Director of Cooperatives, The Bahamas; □ Ms. Mariet Canoville, Commissioner of Cooperatives, Dominica; □ Mr. Melvin Edwards, Development Cooperators International, St. Lucia; □ Ms. Vinette Gregory, Department of Cooperatives, Jamaica; □ Mr. Nigel Matthew, NEM Leadership Consultants, Trinidad and Tobago; □ Mr. Nigel R. Mohammed, Director, Assiniboine Credit Union, Canada; We also wish to thank the Cooperative Unit of the ILO in providing technical support during the development of the materials. In particular, support in reviewing, validating and adapting the draft v materials for everyday use by the cooperative movement throughout the Caribbean: □ Mr. Sam Mshiu □ Mr. Waltteri Katajamaki □ Mr. Guy Tchami □ Mr. Husevin Polat □ Ms. Coumba Diop WHAT IS A COOPERATIVE ENTERPRICE GLOSSARY OF TERMS Autonomous – existing or acting separately from other things or people Capital – money, property, etc. used to start a business Democratic – based on a form of government in which the people choose leaders by voting: of or relating to democracy) Dividend – an amount of profits paid out to people who have ownership (shares) in a company Equitable – just or fair; dealing fairly and equally with everyone Patronage – money and support that is given for buying goods and services from a business Share – any of the equal parts into which the ownership of a property or business is divided vi Surplus – an amount (such as an amount of money) that is money than the amount that is needed Caribbean Cooperative Management Training Programmes TABLE OF CONTENTS IMPORTANT ORGANIZATIONS iii International Cooperative Alliance International Labour Organization ACKNOWLEDGEMENTS v GLOSSARY OF TERMS vi TABLE OF CONTENTS vii 1.0 INTRODUCTION 1 1.1 Purpose of the module 1 2.0 THE COOPERATIVE IDENTITY 3 2.1 Definition of a Cooperative 4 2.2 Global recognition 4 2.3 International cooperative values and principles 4 2.4 Cooperative advantages 8 vii 2.5 How a cooperative differs from other forms of business 9 2.6 Is the cooperative model right for you? 11 3.0 HISTORY OF COOPERATIVES 13 3.1 The birth of a movement 14 3.2 The Rochdale principles 14 3.3 Evolution of the international cooperative principles 15 3.4 Cooperatives in the modern marketplace 15 3.5 Milestones in the history of cooperatives 16 4.0 COOPERATIVES IN THE CARIBBEAN 18 4.1 The Caribbean cooperative movement 19 4.2 The importance of cooperatives in the national economy 20 4.3 Some challenges of cooperatives in the Caribbean 21 4.4 ILO’s support to cooperatives in the Caribbean 21 5.0 DIFFERENT TYPES OF COOPERATIVES 22 5.1 Consumer cooperatives 23 5.2 Producer cooperatives 25 5.3 Worker cooperatives 27 5.4 Coops serving vulnerable groups 28 WHAT IS A COOPERATIVE ENTERPRICE 5.4.1 Housing cooperatives 28 5.4.2 Financial cooperatives 30 5.4.3 Multi-stake holder cooperatives 31 5.4.4 New generation cooperatives 31 6.0 YOUTH AND COOPERATIVES 32 7.0 WOMEN AND COOPERATIVES 35 7.1 Benefits to women 44 7.2 Gender definitions 45 8.0 GOVERNANCE OF COOPERATIVES 41 9.0 LEGAL FRAMEWORK 43 9.1 International standards 44 9.2 Other laws 45 9.3 Roles of Members, Directors and Committees 46 10.0 COOPERATIVES AND CULTURE 48 10.1 The nature of cooperatives 49 viii 10.2 Fusing the old and the new 50 10.3 Challenges of cooperatives 50 TEST YOUR KNOWLEDGE 56 BIBLIOGRAPHY 59 Caribbean Cooperative Management Training Programmes 1 INTRODUCTION 1 WHAT IS A COOPERATIVE ENTERPRICE