Transcript Cooperatives in Conflict & Failed States

Cooperatives in Conflict &
Failed States
Presentation to AIARD
June 8, 2004
Ted Weihe
www.coopdevelopmentcenter.coop
Synopsis
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Cooperatives are: independent, memberowned & democratically governed businesses
 Members accept risks and benefits including
equity and patronage
 Built on “collective identity & shared destiny”
which is underlying factor in dealing with
conflict, monopolies & failed states
 150 year history with major growth of
cooperative networks after WWI, WWII,
Korean War & mobilization of small producers
in face of family oligarchies, usurers, &
unethical middlemen in developing world
Synopsis (2)
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Coops successful when imbedded in cultures
where violence is often present
 Create jobs for ex-combatants and
minorities/IDPs through organizing small
producers for high value markets
 Bridging institutions between ethnic &
sectarian groups for common economic
objectives
 Able to withstand violence with resilience
Examples
SE Europe: Bosnia, Montenegro,
Macedonia
 Lebanon
 El Salvador, Colombia
 East Timor, Nepal, Afghanistan
 Mozambique, Rwanda & Sudan
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Economic underpinnings of
failed states
Lack of national unity, infrastructure,&
enabling environment for private
businesses
 Lack of basic personal protections &
securities
 Poverty
 Economy controlled by warlords and
others than benefit from conflict
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Relief Agencies
Prolonged delivery of relief
 Lack of focus on self-sufficiency
 Local people must own their
reconstruction
 Relief NGOs not business or profit
oriented
 Sustainable development only occurs
when disabling aspects of relief stop
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Cooperative Difference
Take economic perspective
 Look for social cohesion and trust
bonds
 Avoid donor mentality
 Require mutual self-help
 Strengthen market linkages
 Create broad-based enterprises
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Coops & Stable Societies
Key issue: Devolving of power in stable
and just ways
 Peaceful channeling of basic needs
 Democratic management
 Pluralism and open membership
 Economic system based on heightened
levels of trust
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Coops & Stable Societies (2)
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Coop membership has stake in stability
Provide level playing field for all parties
Conduct democratic operations in which
members demand transparency
Organize around strongly felt economic
needs
Create critical mass of groups of individuals
and develop democratic leadership
Bosnia
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Created coops for minorities who were
displaced by ethnic cleanings in Srebrenica
and other towns
IPDs only willing to come back if rural jobs
exist
Traditional region of quality cheese
production
Local farmers came to Land O’Lakes and
asked to form coops (not imposed)
Coops overcame ethnic tensions with mixed
boards and employees
Montenegro
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Collapse of zadrugas (collectives) with dairy
cows distributed to 55,000 farmers
 Anti-Western attitudes due to NATO strikes in
Kosovo
 35 cooperatives formed within one year
through monetizing Italian and US feed grains
 Now have 48 cooperatives with inter-ethnic,
inter-religious and differing political views
Lebanon
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Repaired damaged infrastructure in southern,
conflict ridden area through democratic
committees
 Developed successful coops
 Socio-economic development reduced
tensions and conflicts
 Minorities able to freely express their opinions
and take part in decision making
El Salvador
Rural electrification seen as peace
dividend with peace accords
 Electrified rebel towns (Santa Marta,
Perquin)
 Electric coop formed by ex-combatants
 Coop opened membership to local
populations and became bridging
institution
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East Timor
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Coffee coops were controlled by Indonesians
With independence, reformed member-owned
coops became #1 employer, income
generator & exporter
Restored destroyed facilities and increased
production and processing with quality
controls for high value exports
Coops resettled refugees from West Timor
and monetized rural economy
Coops provide primary health care
Mozambique
Network of 75 coop associations and
714 group businesses formed as part of
recovery
 Coops reduced costs to producers for
inputs; generated high value crops
 Reduced conflicts between farmers and
cotton processing companies
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Rwanda
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90 per cent of population rural
Donors retarded recovery of coffee sector (3
yrs. of relief)
Ag coops improve market access and exports
Coops part of culture with 29% belonging to
informal insurance and savings groups
Credit unions bridge ethnic divides
Nepal
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Credit unions able to resist Maoists and
therefore are not targets like government land
banks
 Coping mechanisms include: dialogue with
guerrillas at local level, strong community
support, deposit savings in banks rapidly, &
taking savings home by directors
 Community immediately reconstructed credit
unions after any attacks
Afghanistan & Sudan
Model credit unions now being formed
in northern region of Afghanistan
 Reform coop law in southern Sudan
 Training in coop principles and practices
 Cattle marketing and dairy coops likely
to begin start-up
 SPLM prefers coop model of
development
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Conclusions
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Coops build on informal cooperation and are
capable of rapid growth after conflicts
Coops create jobs for IDPs, refugees and excombatants
Coops help minorities deal with majority and
distant markets, but need to become multiethnic to grow into successful networks
Coops bridge inter-communal groups
Coops rooted in cultures able to resist outside
oppressors or guerillas
Further Analysis
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Historical and antidotal information confirms
important role of coops in conflict
Need research to confirm hypothesis
Undertake sociological documentation on specific
impacts of coops in conflict
Build evidence on conditions where cooperatives can
be first line of defense against conflict and essential
for rapid recovery
To read paper, go to
www.coopdevelopmentcenter.coop