Cooperators from around the world gathered online on 26 May for an event titled ‘Strengthening the Role of Cooperatives in achieving the targets of SDGs and Economic Democracy’ organised in the framework of the G20 events.
The session, organised by ICA’s member in Indonesia, the INKUR Federation, highlighted the role of cooperatives in areas of wealth distribution, poverty and citizen’s education. The issue of governance was a focus, as case studies were shared of cooperatives that have been successful in running sustainable businesses which support the United Nations’ Sustainable Development Goals (SDGs).
INKUR Federation is leading the cooperative engagement in the G20 this year, and organised the event in collaboration with the ICA under the framework of the G20 Development Working Group. The event shared best practices of cooperatives in the G20 countries and in developing countries in promoting economic democracy and social justice.
ICA Director General, Bruno Roelants, opened the event, explaining that cooperatives’ impact on development is particularly important because “they are embedded in their communities”, adding that cooperatives have survived World Wars and recessions and continue to reinvent themselves. Mr Roelants highlighted the role of the internationally agreed set of standards which form the Cooperative Identity in supporting the work of cooperatives.
“It's really high time that cooperatives be recognised as key actors in local, national, regional and global sustainable development - economic, social and environmental, including in global forums like the G20”, Mr Roelants added.
#G20Indonesia Sherpa Ah Maftuchan said the C20 group would present a set of concrete recommendations for the G20 and invited cooperatives to contribute to the discussion and advocacy processes. “Let’s work beyond the principles”, he said, adding that the C20 working groups had already made several recommendations regarding issues such as providing opportunities for vulnerable workers and promoting sustainable finance. “I’m confident that ICA and INKUR can contribute more to our C20 campaign. Let’s work together to achieve out recovery post pandemic.”
The Global Head of Public Affairs at Mondragon Corporation in the Basque Country and President of CICOPA, the ICA sectorial organisation for cooperatives in industry and services, Iñigo Albizuri Landazabal, gave a presentation on governance in cooperatives with Mondragon as the focus. Mr Landazabal highlighted SDG 8, which is quality employment, as being the bedrock that can support all the other SDGs, “because it enables people’s economic empowerment and gives them a role in their communities. Mondragon implements a 1 to 6 salary ratio for its workers, meaning that there is a limit on income inequality baked into the cooperative”. Mr Landazabal explained how cooperative governance works at Mondragon, saying “it is not easy. But, in our case, all the governance is based on trust and solidarity… it's based on workers and the owners.”
Next to speak was Giuseppe Guerini, President of CECOP, the regional organisation of CICOPA, who spoke about cooperatives’ role in digital democracy and financing for development, and highlighted a number of successful examples of cooperatives using digital toward sustainable development in the fields of healthcare, education, transport and mobility and access to digital infrastructure.
Mr Guerini also said that a number of emerging technologies are a good fit for the social economy’s needs and aims, such as blockchain.“Such technology would appear to be particularly suitable and useful to establish a decent level of trust, in the context of an increasingly globalised economy, where wealth is concentrated in the hands of few companies or individuals.”
Speaking on economic democracy was the Managing Director of Kenya Union of Savings & Credit Co-operatives George Ototo, who gave a presentation on how coops, including Savings and Credit Cooperatives and agricultural producers’ coops, are helping to reduce poverty and build resilience in developing countries. He explained how the existence of coops leads to the economic empowerment of both members and the communities they operate in, sharing the example of Githunguri Dairy Farmers Co-operative Society in Kenya which said has created a trickle down effects for its surrounding communities, such as more children going to school and a healthier local population.
Savitri Singh, the Executive Director of the National Centre for Cooperative Education and International Relations at National Cooperative Union of India, spoke about what is needed to create enabling environments for cooperatives so that they can help to build national economies and implement the SDGs. Ms Singh stressed that, “we need political will for creating an enabling environment,” and shared insights from India, where she said this political will currently exists.
A new Ministry of Cooperatives was recently created at the central government level in India, and is “taking a lot of interest, focusing on cooperative development”, explained Ms Singh. The Indian government has even adopted a slogan, ‘prosperity through cooperatives’.
As well as support through government policy, Ms Singh highlighted the role of cooperative education institutions and apex bodies in creating an enabling environment for coops, and ended by highlighting a lack of recognition of coops from national governments, even those who are providing enabling environments for coops.
Looking ahead, Eva K. Sundari from the INKUR Federation laid out the way forward for cooperatives as key drivers for sustainable development. Drawing on the examples shared in the session and others, Ms Sundari said, “if we have shown that we can make it at the micro level, then it is time for us to...create a cooperative economy. Not only cooperative businesses, but a cooperative economy.”
Ms Sundari referenced a paper from the ICA and ILO which calls for the UN to include coops in the indicators, targets and funding mechanisms for the SDGs, states that national, regional and international cooperative organisations should enhance their advocacy roles, and encourages coops to proactively engage in development discussions at all levels.
Echoing the last point, Ms Sundari emphasised the need for coops to “play more significant roles, not only as passive participants” in all possible forums, adding: “We can do much better than we do, but we have already started.”
The Chair of the ICA G20 Working Group, Howard Brodsky, closed the session highlighting "we are an incredible force. #G20Indonesia slogan resonates well for us: we are stronger together as people, as #coops, and together #CoopsBuildABetterWorld. By their very nature, #coops are inclusive, care for the community...very little business can say that".
Watch the full session here: https://youtu.be/bk6QB_aoD7Y
What is the ICA G20 Working Group?
The ICA created a cooperative working group for its members to engage in the G20 Engagements Groups, particularly the B20 and C20, with the aim to enhance the participation and recognition of cooperatives' contribution to sustainable development by the world's largest economies.
The International Cooperative Alliance has been participating in the G20 Engagement Groups since 2014, having representatives in the taskforces and contributing actively to the discussions and preparation of documents.
Find more information about Cooperatives' Participation in the G20 Discussions here.
