Challenges And Opportunities For The Ica - Pauline Green_sofia Annual Meeting

Cooperatives Europe Annual Meeting Speech Dame Pauline Green Co-President

Colleagues and friends At the Regional Assembly in October 2002 in Lisbon, you did me the great honour of electing me as President of ICA Europe. As a result of that position, I joined the Board of the International Co-operative Alliance as the Vice President for the Europe Region of the ICA, alongside the other three Vice Presidents for the Americas, the Asia Pacific Region and for Africa. The European and global work has been a fascinating and stimulating part of my job for the last seven years and I want to thank you all very much for having given me the opportunity to represent European co-operatives. I have learnt so much and made so many good friends and colleagues during that time, and I hope that I have been able to make some contribution to the development of our model of business. At the end of September this year, I will retire from my full time post as Chief Executive of Co-operativesUK the apex body for all co-operatives in the United Kingdom. The Board of Co-operativesUK has asked me to complete my elected term of office in the ICA at regional and global level, which I am delighted to do. However, it does mean that at the Annual Meeting of Co-operatives

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Europe next year, I will be retiring from the Board and the Co Presidency. However, some of you may already know that I am to be nominated by the UK movement as their candidate for the election of President of the ICA that will be held at the General Assembly in Geneva in November this year for the coming 4 year term. Should I be successful in that election I will, of course, be continuing my relationship with the global ICA, and in particular, will be pleased to remain in close contact with developments in Cooperatives Europe which is very close to my heart. Cooperatives Europe can, and is working because, in planning for its launch in 2004/5, the Board of ICA Europe and that of our partner CCACE representing the business sectors, were clear that our key strategic role was to lobby the European institutions and work with the governments of non EU countries in our region to try and maximise our influence on the policy and funding regimes which could help to grow our model of business across our region. You heard earlier that some significant success has been created in this core role, although much still remains to be done. It is also the case that after four years since coming together as Cooperatives Europe, firstly through an informal platform and then as an incorporated body, we have now had time to test the structures, governance and operational procedures that we established in our constitution and see if any revisions are necessary. 2

The Board meeting last evening asked me to report back to you that it has decided to review our performance and look to see if we need to make any changes to our constitution and operating practices. If so, the Board will have time for appropriate consultation in order that any reforms requiring member approval are fully worked up and can be introduced at the Annual Meeting next year. I am also authorised to tell you that in order to facilitate the election of Co Presidents and Directors it is our intention to hold a full Regional Assembly in April next year in Moscow at the invitation of our Russian colleagues. It will be held on 19/20/21st April 2010. The key changes and development of Cooperatives Europe were driven by the Board with a clear eye on two things. Firstly, the modern trading environment in which our cooperative businesses are working, and the need to use our influence in whatever way we can to support and bring added value to their work. And secondly, the new global order in which we are now operating. A global order that has seen power settling in three key seats of political and economic power in the world. Despite the desperate plight of its financial system, its housing market and manufacturing industry, and unemployment the United States remains the key economic and political power house in the world. The 3

European Union has grown in importance as the global market developed, and has more than justified the aspirations of its founding fathers by bringing sovereign states together to keep the European economy in a key place in the world economy. Thirdly, the new economies of China, India and Brazil are blazing the trail for the so called ‘developing economies’ and have rightly won a place at the top table. As a result of these considerations, it is right that Cooperatives Europe should develop a new way of working, be imaginative, innovative and make ourselves the sort of organisation that our members can rely on to give them what they want for the next 20 years. In the co-operative movement, it is sometimes hard to think ahead. We have a great historical tradition, a fine heritage of which we can be proud. But if we are to pass that on, we have to find ways to work that reflect the forward looking, radical approach of our forefathers. Co-operatives Europe has made the first stab at some new thinking and different and more appropriate working practices. The International Co-operative Alliance whose central office is based in Geneva, has also been carrying out a root and branch reform of its constitution, structure and subscription formula to make it better able to meet the changing world environment. It has been a mammoth effort which has been tried several times in the last 30 years and failed each time. In 2008 we succeeded, and at a Special General Assembly of Members in Rome in 4

June 2008 we overwhelmingly adopted a new constitution, and a new subscription formula. It is now starting to work as a global body valuing its regions and using the skills and knowledge that exists amongst its regional staff as a key component in its decision making. And now it is also seeking to bring the sectoral specialists closely into that discussion and debate, so that every part of the movement is working to the same set of global priorities. If we can harness all our movement’s best thinking, we are in a position to take our case to the global bodies that have the global strategic influence just as the European institutions have for this region. It is now time to lift our eyes from Rule books and balance sheets and start looking outwards to what we want and expect from our global body. What is the unique role that the ICA can perform for co-operative businesses around the world? We need visibility in the World Bank, in the United Nations General Assembly, its Economic and Social Forum as well as the International Labour Organisation. And we need to have access to the key decision-makers in all three of the world’s key political and economic venues, Washington, Brussels and either China, India or Brazil. We need to be present in the corridors of power in the United Nations. We need to be lobbying national representatives and UN officials to ensure that the co5

operative model of business is on their agenda and is part of the solution to the world’s economic problems. When the world financial system was collapsing around our ears, you may recall hearing talk of a new world economic order that placed transparency, proper regulation and protection of the investment of individual citizens at its heart. A new world order that prioritised values in business, that ended the get rich quick culture, and the bonus frenzy of senior financial and business personalities. Then it all went just a little bit quiet on that front in recent weeks as talk started to grow of the green shoots of recovery in the world’s key economies? And now just yesterday the World Bank issued a gloomy forecast that sent share markets into decline once more. But, it is all too easy now for major governments to slip back into thinking that the panic is over and all they have to do is to hold their nerve a little longer, and they will be able to return to ‘business as usual’ and folk will go back about their lives again and all will be well. The trouble is that millions of people are already unemployed, yet further millions have lost their homes, livelihood and life expectations as a result of this recession. That won’t be repaired in a hurry. Jobs won’t be created in a moment, homes will not be re purchased easily with the tighter control of credit, nor will the lives ruined be fixed overnight. For some their current situation will be a life sentence. The economy should not be allowed to return to ‘business as usual’. 6

The pressure must be kept on. And the promotion and development of our model of business must be a factor in the recovery, and in working up a new economic order to ensure that this sort of crisis never happens again. The role of the ICA is to drive our message into the hearts and minds of decision-makers at global level. How do we fight poverty in the world? – by creating new co-operative jobs so that families can pay for their own needs with dignity. How do we fight preventable deaths and illness – by creating health co-ops that provide advice, treatment and support for those in need. How do we campaign against homelessness - by creating co-operative housing schemes and providing homes. How do we provide good healthy food? – by creating agricultural co-ops that empower families to feed themselves, and secure an income to build a future. This isn’t just wishful thinking or rhetoric. We are doing it across the world. We have a magnificent network of grass roots co-operative partners around the globe with whom we can work. And we have the specialist cooperative partners in the mature movements who can provide the expertise co-op to co-op. We have the perfect delivery vehicle. We just need to sell it better!

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This October, the General Assembly of the United Nations will discuss whether to hold an International Year of the Co-operative. These international years come and go, and most of us are probably not even aware of them. I for one was very sceptical of the Year of the Co-operative. I still am. What could it achieve? Who would pay for it? Would it be worthwhile the energy and the inevitable expenditure? Despite my doubts, it seems that we are likely to have it anyway. It will only be worthwhile colleagues if we are able to pursue a couple of high level strategic demands that will really make a difference for our movement worldwide. It was after all International Year of Microcredit that was the launch pad for the microcredit movement which has served families and communities in the developing world so well. Imagine, if you will for just a moment, a time when the World Bank, the UN programmes, the European Union, its development fund, its legislation and funding regimes automatically place co-operatives in their plans and aspirations for activities around the world as a matter of course. Imagine how our business model would not just thrive with such automatic public recognition, but be able to support greater numbers of local communities, children and families, provide homes, jobs, training and education, dig wells, provide electricity like the US electric co-ops have been doing in Bangladesh and so much more. So, this isn’t just wishful thinking or rhetoric, it can happen. 8

The ICA can be part of making it happen. What else should the ICA be doing? Well it needs to see how at global level it can enhance member added value services, and in particular business services and support at the appropriate level. That appropriate level may mean giving additional constructive support and help to the global sectoral bodies to help those that have never really learned how to operate effectively, but whose global role could be useful to members. It could mean pushing support down to the regions with their closeness to the active membership, and supporting with the dissemination of good quality data and information about co-operative and competitor performance where it is available. This too isn’t just wishful thinking or rhetoric, we have proved it in Cooperatives Europe where it is actually happening. And, of course, the ICA must continue to improve the professionalism of its administration and services. It is developing a new global database. This should make the collection and collation of data on members much quicker and simpler, and more informed. But there is still much to do if they are to be a vehicle for the dissemination of best practice and information about the global movement.

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At the same time, the ICA needs to continue the process of regionalisation and decentralisation that was started in Oslo in 2003. This process is as critical to the success of the ICA as is the lobby of the global institutions. It is the regions who have access to members, who know most of them locally and have a named contact within each. So it is both sensible and efficient of resources to have strong effective regions to carry out very local and regional work. All of this adds up to a big agenda. But is it just another case of wishful thinking and rhetoric? I don’t think so. I am of the view that when we all lift our eyes up from our quite natural concentration on the work and demands of our own co-operative day job, and look what we could and should do together, and what our priorities should be, the world is our oyster. Colleagues, Cooperatives Europe has been at the forefront of changing the culture and working practices of the global organisation. We have driven the process of decentralisation, and created a European body that now has profile and visibility within the European institutions. Cooperatives Europe was instrumental in securing the formula that led to the successful reform of the ICA rules and subscription. The IC A is now ready to take on its new role and this is the time to do it.

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It has been frequently said that this global crisis presents us with a co-operative opportunity. Working together we can maximise that opportunity and be part of a new era in co-operative development across the world. Ends

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