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Mr Tom R Ricketts, Minister for Industry, Tourism, Trade and Communications International Cooperative Alliance (ICA) Asia/Pacific Regional Conference on Cooperative Development Raffles Tradewinds Convention Centre July 7-9, 2008 Lami9.00am Mr. Shil Kwan Lee, Regional Director of the International Co-operative Alliance, Asia Pacific Region (ICA-AP); Distinguished Guests, Participants; Ladies and Gentlemen Ni sa Bula Vinaka and a very Good Morning to you all. I’m pleased to be here this morning and to be part of this regional conference. Firstly, I wish to extend a special welcome to Mr. Shil Kwan Lee and delegates from Asian countries who are here to help us facilitate this important conference to ‘Revitalize the Co-operative Movement in Fiji and the Pacific Sub-region’. Bula Vinaka and welcome to Fiji. I also thank the organisers, resource personnel and all the participants who have come to take part in this forum which discuss ways to revitalize the cooperative sector in our sub- region. Last month our Cabinet approved the review of the co-operatives movement as part of the strategies to revitalize the sector. This is in line with the rationale that if co- operatives are to develop into strong and self supporting businesses, the emphasis of government should be towards unifying and strengthening the large number of co-operatives which already exist rather than attempting to establish a new ones. Research clearly indicates that the co-operative movement in Fiji and the Pacific sub-region, in particular the consumer and marketing sector is a fragmented collection of co-operatives societies. In the case of Fiji, the vision is to strengthen the co-operative sector to be the engine of growth for economic activities in the rural areas with the goal of a 10 per cent economic contribution to GDP by 2020. This conference could not be staged at a better time as it reinforces recent initiatives to reconstruct the cooperative image. The Department of Co-operatives in conjunction with the IHRDP programme began the process last year when a similar conference was held in this very place to discuss strategies to promote the co-operative way of doing business. A vision statement including new strategies was developed and I’m advised that this will form the framework to guide the revitalization process in the future. I understand that international development agencies like ILO have also developed fresh mandates to revitalize the cooperative sector in developing countries including those in the Pacific. Hence, this conference is timely in that regard. In Fiji the co-operative dream inspired our earlier leaders to give co-operatives a prime place as part of Fiji’s economic development after independence. They envisioned a Fiji, with the co-operative movement as a basic activity in every village. This dream was unfortunately overtaken by the advent of globalization. The cooperative movement failed to adapt to this. In spite of the once large national movement, there are many challenges that face this sector and these will have to be addressed. There is, for example, a great degree of variability in the spread and depth of coverage of the co-operative movement. In some provinces, districts and villages one notices the presence of cooperatives whereas in others, they are no where to be seen. Many places, unfortunately, have co-operatives only on paper, with a complete absence of the co-operative spirit. Even where they exist, their financial and business strength varies substantially. This leads one to pose the question – why do co-operatives not succeed and blossom in a society like Fiji? Why is the performance of co-operatives so variable across activities, across sectors, and across divisions? The answers to these questions form the basis of your discussion for future action. The region is part of a globalized world where the winds of free trade blow stronger than ever before. Co-operatives cannot be insulated from these changes. They face tough competition from the private sector. To survive and grow amidst these fast changes co-operatives are required to reorient themselves, by improving their efficiency, effectiveness and adaptability to fast-changing economic and social conditions. They will have to develop professionalism of a very high order, sharpen their core competencies and devise market driven business strategies appropriate to their circumstances. They need to meet the requirements of their core clients - farmers, growers, artisans, weavers and producers. These core clients include women, who need the support of the co-operative movement to become full and equal partners in all processes of economic development. I am pleased to note that the range of these concerns will be comprehensively covered in your discussions during the conference. Problems faced by ailing co-operatives have been researched and documented. They are unable to generate internal resources to a sufficient degree to sustain themselves. Over the years, they have developed a dependency on the government whose support has been limited by resource constraints. Given the need to raise resources as viable business enterprises, there is need for co-operatives to work on sound commercial and financial principles and take full advantage of new technologies of financial systems if they are to remain viable entities. Co-operatives have also suffered through a lack of autonomy. Over the years, policies and legislations have been out of tune with the cooperative spirit of autonomy, maximum self-reliance and transparency. Independence and autonomy have to be promoted within co-operatives to enable them to evolve into efficient, professional democratic organizations. No distortions of these fundamental principles should be allowed to occur. In the interest of healthy growth of co-operatives, democratic management should be restored, both in their management and business affairs to reform the co-operative system and restore to it its place of pride. In order to meet the changes taking place in the external environment, co-operatives also need to equip themselves internally so that they have the capacity for managing change. A critical area is leadership development, where substantial efforts are needed both by individuals and co-operative institutions. Leadership requires selfless service and dedication to the co-operative cause with a focus on the development of grassroots organization. There is also a need for professionalism. Leadership and professionalism both require high quality human resources. Unfortunately, this is the weakest and probably the most neglected area. Successful co-operatives the world over are professional organizations run on sound managerial principles. It would be prudent for all co-operatives in the Pacific Sub-region to invest adequately and appropriately, in human resources. Capacity building will be the heart of the processes of change which the co-operatives will have to deal with. Another weak link in the cooperative movement is corporate governance and internal and external accountability. Never before has the need for restoring customer confidence in the co-operative sector been felt more acutely than at present. Co-operatives have to now devise a system of co-operative corporate governance for ensuring relevance as well as performance. The definition of corporate governance implies conducting business in accordance with the well being of all the stakeholders’ desires. This generally leads to value generation, while keeping intact the basic rules of equity and participation. In spite of the winds of economic change and the challenges that are now on the horizon, co-operatives continue to have relevance. They are a mechanism for enlisting the participation of the public in economic processes of direct relevance to them and for ensuring equitable distribution of benefits. They continue to be important social and economic institutions, which give a voice to the voiceless. In order to continue to have this validity, members must be seen to be performing the above functions with efficiency and dedication. Co-operatives must succeed as they are the only viable way of reaching out into the rural areas where the poor and marginalized live and for whom the corporate world has limited answers. Agriculture continues to be an important sector of our economy hence, the co-operative system providing vital support services, is crucial for the transformation of our agriculture. It is visible at all stages of the agricultural production chain i.e. production, processing, marketing and credit. It is active in the fields of savings, input provision, agro-processing, storage, marketing, dairy, fishery, land purchasing and many other social and economic activities. In short, co-operatives provide immense possibilities for future development. Co-operatives must succeed if the poor and marginalized are to prosper. We hope that in years to come, co-operatives will grow not only in size, but also in the range and coverage of their activities. The provision of external support coupled with the internal changes that co-operatives need to make, will ensure that co-operatives continue to perform the historic and relevant role expected of them in the social and economic transformation of our nation. Finally, I wish to acknowledge the role of ICA, IHRDP and the Dept of Co-operatives for initiating this conference. I’m certain that this forum will discuss and recommend measures required to improve the efficiency and the viability of the co-operative sector. To the participants, I encourage you to strengthen your networks to benefit the co-operative movement as a whole. I wish you all a good and productive meeting. To our international guests, I hope you will enjoy your visit to Fiji and wish you a safe return home. Again, I thank all those involved in the organising and facilitating of this important conference and sincerely wish you all, the very best in your deliberations and endeavours. Thank you and Vinaka Vakalevu. -End- |
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