Revitalising the co-operative sector in the North
The Jaffna Managers Forum recently presented a set of proposals to the Northern Provincial Council (NPC) Chief Minister C.V. Wigneswaran on the role of the co-operative society and what should be its future direction.
The proposals emerged after the forum organised a series of discussions on the co-operative sector which in the period prior to the war was an important foundation for the social and economic development of the North.
“The co-operative is an ideal form of economic organisation to ensure the participation of people. Co-operatives are inherently democratic and have the potential to ensure the dignity of workers including women and other marginalised sections of society. The co-operatives are also best suited to ensure sustainable and environmentally sound development, whether it is through the utilisation of local natural resources or the untapped labour in the region. Since workers determine their own working conditions, women including the large number of widowed and single women, who are also involved in care work in their homes can contribute to local co-operative production by accommodating their duration, location and conditions of work,” the proposal said.
The revitalisation of the co-operative sector will require political, social and economic leadership and it is hoped that the NPC will seize this opportunity. First, it would require the reconsolidation of co-operative identity, which was strong in decades past, but has suffered considerably with the war. People should nurture the importance of local production and distribution and that requires leadership committed to constructing the co-operative identity and the sector as a whole. Second, any form of local production is also shaped by the broader legal and economic policy frameworks and there needs to be leadership to shape legal and economic governance. Third, while co-operative production requires less capital than other forms of production, there nevertheless needs to be leadership committed to finding the necessary capital, whether it is from the national coffers, donor assistance or sources such as the Diaspora, the proposal said.
The NPC in working towards the revitalisation of the co-operative sector should address women’s needs as they are the most affected by the war. Moreover, the broader entry of women into co-operative production and the work force can contribute greatly to the Northern economy. In this context, there needs to be provisions and support for organising women-led co-operatives. Furthermore, co-operative members and employees should be encouraged to increase women’s membership. Local production by women should be promoted and avenues for export should be found. The NPC can make provisions to purchase goods for Provincial Council services from women’s co-operatives. The NPC should consider the formation of a special unit led by a woman within the Co-operative Department to ensure the sustained focus to engender women’s co-operatives.
“… the revitalisation of the co-operative sector with the democratic participation of workers and the sustainable use of natural and human resources requires the leadership of the NPC. The NPC should focus on rejuvenating co-operative identity, shape the legal and economic framework for co-operatives and find the necessary inputs of capital to energise the co-operative sector,” it said
The following proposals and recommendations were submitted:
1. The NPC should re-visit the co-operative sector in the Northern Province and make necessary statutes to liberalise the sector from government control as far as possible in order to stimulate peoples initiatives by looking afresh at the following draconian and unnecessarily bureaucratic acts:
- Co-operative Employees Act No. 12 of 1972
- Co-operative Societies Law no 5 of 1972
and the subsequent amendments
2. The NPC should urgently consider creating an advisory body to recommend Provincial statutes for existing and new co-operatives to function without unnecessary bureaucratic and inefficient state controls. This advisory body can be served by legal experts and experts with a proven success record in managing co-operatives with accountability.
3. The Co-operative Development Department and the Co-operative Employees Commission should undertake vigorous organisation development studies and reorganise in order to play only an effective facilitator role.
4. The consumer co-operatives such as MPCS should re-position itself in the new economic situation. The practicability of reviving the MPCS needs to be studied.
5. Encourage and facilitate the new producer co-operatives to build on the success of other producer co-operatives. Production of fishing nets, canning fish for local and export market etc. can be formed with assistance from NPC and/or Diaspora Tamils.
6. Facilitate formation of new owner co-operatives to provide services as well as production in a sustainable, environmentally friendly and cost effective manner to contribute to the Northern economy and people. Such owner co-operatives require minimum capital inputs and can provide marketing, distribution and a range of other essential services unavailable at present.
7. NPC should promote and organise cooperative training and education including in technology, market research, environmentally friendly methods of production and distribution of high quality products, accountability, democratic practice and good governance.
8. Encourage co-operatives where women can earn a livelihood by working flexible hours from or near their homes while providing care in their homes. Co-operative members and employers should be encouraged to increase the membership of women in co-operatves. Purchasing and export of products and services by women’s co-operatives should be encouraged and facilitated.
9. The NPC should consider forming a special women’s unit led by a woman within the Co-operative Department to coordinate and focus on development of women’s co-operatives.