Cooperative Financial Institutions and the Financial Crisis

[Emma Allen]

Dear Business Fights Poverty,

I would like to be in contact with colleagues who have an interest in cooperative financial and/or insurance institutions, in order to discuss how these institutions, in both developed and developing countries, are being affected by the financial crisis.

look forward to receiving your reply

Many thanks

emma
ILO EMP/COOP COOPAfrica

[Mark Trotter]

Hi Emma

I waited to see if anyone responded because I do have an interest in the Mutuals and Insurance/assurance industries plus mirco-finance options around the world, but I also add to that the LETS projects and social economic activities so if you want to drop me a line feel free to do so.

Currently writing a micro enterprise qualification that includes managing zero finance options or base rate plus 1% as a maximum lending vantage.

Take care

[Emma Allen]

Hi Mark!!!
This seems interesting - who has contracted the work, what is the objective and who is the target auidence???
some of the responses that i've outlined below might be interesting for you!!
thanks for the thoughts!!
emma

[Mark Trotter]

HI Emma

No one has contracted the work, the objective is to create finance for the project groups I work with and to create a self sustaining investment programme with very little capital.

I have been working in micro businesses for over 15 years and with Co-ops and community businesses for 20 plus, With zeroinvestment I have worked on 30 successful sme's that have become sustainable employers in communities suffering lack of investment high level of worklessness and low skills. I am just looking at how I develop that work in other areas and for proects who require some capital to start.

The discussion is interesting

Regards

[Emma Allen]

Hi Carlos,
thanks for the thoughts!!!!
We have an idea - that a strong social economy can help to mitigate the impact of crisis, particularly cooperative financial institutions - which include things like credit unions and building societies. For instance, research from the IMF findsd that cooperative financial institutions tend to be more stable in times of crisis, as their investment patterns use the capital of members in ways that best serve their long term needs and interests . Cooperative financial institutions may have a lesser tendency to invest in high risk financial markets when compared to other forms of commercial banks. They can therefore help to mitigate the impact of financial crisis, especially in the short-term. Cooperatives in other sectors of the economy will most likely be impacted in the similar ways that other S&M enterprises are..

any ideas?????????

thanks
emma

[akshay]

At the time of financial crises we need to come together united and try to solve the problems which are responsible for such a hazard. We need to overcome it. It is meant to bring calm to the population and markets and display government strength and stability. As a large number of people spend their money in movies, making films, sports, nowadays even many clubs offer backgammon for fun where people lose a large sum of money there in such stuffs which should be minimized as the world is going through a phase where a little wastage of money could be matter of remorse..!

[Emma Allen]

Indeed, distribution of wealth and inclusive development is an overwhelming challenge. This is actually one of the factors motivating my question - what development strategies can provide a sustainable path to development. Cooperatives are interesting as this model of business obliges the enterprise to progress the economic, social and cultural needs and aspirations of its members. This means that the work of cooperatives can indirectly increase social protection available to their members, which is especially important in contexts with underdeveloped social protection systems in times of financial crisis. Indeed, the some of the first cooperatives emerged in order to mitigate the impact of economic hardship of industrialisation on members and their households.

[Katrina Reynolds]

Hi Emma,

I think that cooperatives are a good solution to including and protecting it's members in times of economic hardship, although particularly in the case of a worker's cooperative there is still the problem of enabling all members particularly working for organisations in developing countries to join cooperatives and giving complete democratic power to members of cooperatives. I am particulary talking about the case of large businesses that are bound by Anglo-American law and structure.