Global Cooperative Issues
Global Issues in Cooperatives
PARAMJIT SHARMA
Relevance of
Global Cooperative Issues Cooperatives
Credit Movement to farmers Largest Human Force after UNO Collective Farming Consumers Cooperatives Contribution of Democratic Institutions Cooperatives. Transparent Organizations Concern For Community Dairy/Sugar/Housing…..Coops Alleviation of Poverty Creation of productive employment PARAMJIT SHARMA
Global Issues in Cooperatives
Global Cooperative Issues
1 Initiatives by ICA 2 Basil –ii initiatives 3 New Models of Cooperatives 4 Global Agencies Assisting Cooperatives 5 Cooperatives Mergers
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1 Initiatives by ICA
Global Cooperative Issues
1 Global HRD Networking 2 300 Global Cooperative Organizations 3 Global Trading Organization 4 Global Accounting Standards 5 Global Warming 6 Global Cooperative Governance 7 Global Employment 8 International Cooperative Banking Association
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Global Cooperative Issues
Global Network for Cooperatives
Human Resource Development Global HRD Networking for Cooperatives GHRD Portal – phase 1 GHRD portal – phase 2
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Global Cooperative Issues
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Global Cooperative Issues
Methodology 1 Structure 2 Type 3 Country 4 Turnover 5 Assets 6 Date Founded 7 Membership
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Global Cooperative Issues
1 Formulation of Coop International Trade Organization
1 Registration 2 Membership 3 Capital 4 Location 5 Objectives & Activities PARAMJIT SHARMA
Global Cooperative Issues
1 Formulation Of a New Coop International Trade Organization
Registration New International Cooperative Trade Organization may be Registered
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Global Cooperative Issues
1 Formulation Of a New Coop International Trade Organization
Capital Capital Requirements for the new Organization may be Estimated to Fulfill its Block and Working Capital Needs
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Global Cooperative Issues
1 Formulation Of a New Coop International Trade Organization
Location
It may be located at any of the Countries with Liberal Trade Policies having at least Regional Centers at five Continents
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Global Cooperative Issues
1 Formulation Of a New Coop International Trade Organization
Objectives of ICTO To facilitate Global Inter Cooperative trade To provide information about demand in Global Market To manage better prices for Commodities to Coops To facilitate global e-trading to cooperatives To network cooperatives for technology transfer PARAMJIT SHARMA
Global Cooperative Issues
2 Membership Global Cooperatives in •Agricultural •Marketing •Consumers •Industrial •Sugar •Spinning •Handicraft •Handloom etc PARAMJIT SHARMA
Global Cooperative Issues
-Membership
Africa
Americas
International Cooperative Trade Organization (ICTO)
Asia
Europe PARAMJIT SHARMA
Oceania Oceania
Global Cooperative Issues
3 Global Trading
At Present there is no Cooperative Organization at International Level which can Network Coop Trading Organizations and facilitate them to Export/Import their products………… Therefore, there is a need for International Cooperative Trade Organization (ICTO)
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Global Cooperative Issues
4 Cooperative Online Trading
ICTO Portal www.globalcto.coop
Creating a Global Portal PARAMJIT SHARMA
Global Cooperative Issues
Americas
Online Members
Online Members
Africa
ICTO Portal www.globalcto.coop
Asia
Europe PARAMJIT SHARMA
-Membership
Oceania Oceania
Global Cooperative Issues
Home Page
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--Home Page
Global Cooperative Issues
About Us (ICTO)
Mission Vision Activities Membership PARAMJIT SHARMA
--Home Page
Global Cooperative Issues
•About Us (Members) •Business Sector •Products Importing/ Exporting •Pricing Module •Quality Module •Certification/Rating •Products Requirements •Trading Tenders •Location •Bankers •Supply Chain •Miscellaneous PARAMJIT SHARMA
Member’s Profile
Global Cooperative Issues
•About Us (Members)
Name History BOD’S Financial Results
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Member’s Profile
Global Cooperative Issues
Business Sector •Agriculture •Industrial •Handloom •Handicraft •Dairy •Processing •Consumers •Software •Hardware •Electronics…. etc PARAMJIT SHARMA
Member’s Profile
Global Cooperative Issues
Products Importing/ Exporting Sugar Pulses Fruits Vegetables Flowers Computers Garments Ceramics Cotton Fertilizers……..etc PARAMJIT SHARMA
Member’s Profile
Global Cooperative Issues
•Certification/Rating
Organizational Rating Products Rating Financial Credibility Certification World Ranking PARAMJIT SHARMA
Member’s Profile
Global Cooperative Issues
•Location of Members
Continent Country City Population Infrastructure Airport Seaport PARAMJIT SHARMA
Member’s Profile
Global Cooperative Issues
Search Engine
Organization
Nafed
Country
India
Business Type
Commodity
Agri Marketing Onion
Import Export PARAMJIT SHARMA
To Sri Lanka
Global Cooperative Issues
Service Providers--Registration
•Bankers •Transportation •Raw Materials •Labour •Warehousing •Telecommunication •Manpower •Marketing •Legal Matters etc PARAMJIT SHARMA
Global Cooperative Issues
Discussion Forum Feedback FAQ’s Advertisement Global Tenders News & Events PARAMJIT SHARMA
Other Features
Global Cooperative Issues
“Let us decide to have a New Beginning for Cooperatives”
through 1) Initiating the process of Registering ‘ICTO’ 2) Developing portal www.globalcto.coop for Online Cooperative Trading
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Global Cooperative Issues
Global Cooperative Accounting Standards International Accounting Standards Indian Accounting Standards International Cooperative Accounting Standards
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Formation of International Cooperative Banking Association
Global Cooperative Issues
1 Organization to assist Coop Banks 2 To improve the value of services to members… 3 to work on development issues and collaborations 4 to identify 100 top banking organizations 5 develop promotional and educational Material
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Global Cooperative Issues
Basil-ii initiatives
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Global Cooperative Issues
Top 10 concerns of bankers
1. Complex Financial Instruments 2. Credit risk 3. Macro economy 4. Insurance 5. Business continuation 6. International regulation 7. Equity markets 8. Corporate governance 9. Interest rates 10. Political shocks PARAMJIT SHARMA
Regulatory developments – Basel II
• • • • • • • •
Complex Financial Instruments Credit risk Macro economy Insurance Business continuation International regulation Equity markets Corporate governance
• Interest rates • Political shocks PARAMJIT SHARMA
Global Cooperative Issues
Basel II – Three Pillars
First Pillar
Second Pillar
Third Pillar
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Global Cooperative Issues
Minimum Capital Charges: Minimum capital requirements based on market, credit and operational risk to (a) reduce risk of failure by cushioning against losses and (b) provide continuing access to financial markets to meet liquidity needs, and (c) provide incentives for prudent risk management (¶¶ 40-718)
Supervisory Review: Qualitative supervision by regulators of internal bank risk control and capital assessment process (¶¶ 719-807), including supervisory power to require banks to hold more capital than required under the First Pillar
Market Discipline: New public disclosure requirements to compel improved bank risk management (¶¶ 808-822)
Global Cooperative Issues
Minimum Capital Requirement
=
8% of
Risk-weighted Exposures
Market Risk
Credit Risk
Operational Risk
Risk of losses in on and off balance sheet positions arising from movements in market prices
Potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms
Risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or external events
No Change
Major Changes
New element added
Basel II – Encompasses enterprise risk PARAMJIT SHARMA
Global Cooperative Issues
International Agencies Assisting Cooperatives
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INTERNATIONAL DEVELOPMENT AGENCIES
ILO
FAO
*ESTD-1919 *RECOM-127/193 *NPA-1969 *TURIN CEN. *MATCOM *COPNET
ICA *ESTD-1895 *FOUR REG. OFFICES *PRINCIPLES *CORD.INT. AGENCY *TRG. &DEV. *ADVOCACY PARAMJIT SHARMA
Global Cooperative Issues
WOCCU *ESTD-1984 *WORLD CREDIT UNION *PROMOTE EC. & SOCIAL DEV. *UNDERTAKE DEV. PROJECTS *INTEGRATE CREDIT COOPS.
*ESTD-1943 *COOP. AGR. DEV. *DIST. OF FOOD & AGR. PRODS.
COPAC *PROMOTE AID TO COOPS *UNDERTAKE STUDIES *STRUCTL. DEVELOPMENT *PREP. COUNTRY STATUS REPORTS
Global Cooperative Issues
Cooperative Mergers
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Cooperative Mergers
1 Coop Norden 2 Coop Group 3 Saraswat Bank
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Global Cooperative Issues
Coop Norden 2002 – aGlobal Cooperative Cooperative group Issues Coop NKL
FDB
20%
38%
KF 42%
Coop Norden AB 100% Coop Norge AS
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100% Coop Danmark A/S
100% Coop Sverige AB
Coop Norden
Global Cooperative Issues
• Turnover to consumers around 76 billion SEK • Including retailing in local cooperatives the turnover is near 100 billion SEK • Substantial share of everyday commodities market; Sweden 24%, Denmark 38%, Norway 25% • 1 100 shops (plus 1 900 in local cooperatives) • 26 000 employees (plus 25 000 in local cooperatives)
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Global Cooperative Issues
2 Cooperative Group Retails and Wholesale Societies merged In 1998 to form a cooperative group
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Global Cooperative Issues
3 Saraswat Bank Rs 25000 Cr turnover in 2011
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Global Cooperative Issues
New Models for Cooperatives
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Global Cooperative Issues
New Areas for Cooperative Development Traditional Areas
Other Areas
New Areas
CREDIT CONSUMERS HOUSING SUGAR DAIRY FISHERIES TRANSPORT INDUSTRIAL MARKETING TRIBAL WORKERS
Rural Electrification Collective Farming Coop Companies Floriculture Tourism Social Forestry New Generation Utility Coops Processing Insurance
Baby Sitting Health Care Car Sharing Education Funeral Service Social Security Water Preservation Environment Preservation Regenerative Energies
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Global Cooperative Issues
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