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WHERE TO NOW, COOPERATIVES?

Besting new challenges, via Webinar’s Post Covid-19 Response of Cooperatives in Asia-Pacific

In the Philippines, guided by the credo of of Cooperativism With Compassion, individual cooperatives have extended their help to the communities they serve through their donation of relief goods and food packs for both front liners and marginalized communities. Ditto with federations which, in partnership with the Philippine Cooperative Center, the unifier of cooperatives in the country, have pooled their financial resources towards the purchase and donation of PPEs (Personal Protective Equipment) to various government and privately-owned hospitals and medical centers. PCC, in another partnership with federations and in response to the request of the Cooperative Development Authority (CDA), organized relief operations for the indigenous people in Zambales province through the distribution of sacks of rice, fresh produce and food packs.

In Iran, which has one of the highest cases of Covid-19 in the world, the Iran Chamber of Cooperatives mobilized its movement through directives that include the shift in production of clothing manufacturers’ cooperatives to that of face masks and PPEs for the medical staff; the production of detergents and disinfectants by petrochemical industry cooperatives; the preparation of health items and distribution for free to medical centers and communities; and the distribution of basic food packages to workers in workers’ cooperatives.

In India, the IFFCO (Indian Federation of Farmers’ Fertilizer Cooperatives), which is the world’s biggest of its kind and serving more than 36,000 cooperatives, carried out – under its Coming Forward For The Nation program – the distribution of scarves, face masks, soaps, hand sanitizers, hand gloves, vitamin C tablets and ration kits.

Different countries with different cultural backgrounds and socio-political set-ups. But whatever the differences may be, each shares one common denominator: the quick response of the cooperative movements in their respective countries towards helping reduce the perilous and lethal risks triggered by the Covid-19 pandemic. Thanks to the Webinar Forum, Post Covid-19 Response of Cooperatives in Asia-Pacific, initiated and sponsored by the International Cooperative Alliance/Asia-Pacific (ICAAP), cooperators from different parts of the region presented their different modes for coping with this pandemic through the abovementioned presentations while, at the same time, devising strategies on how the movements in their respective countries, as well as on a global scale, will move forward post Covid-19.

New norms in conducting meetings

For his part, Mr. Balu Iyer, Regional Director, ICAAP, who moderated this online conference, noted how this pandemic has changed the scenario with new terminologies and trends such as ‘online meetings which have drastically changed behaviors under the new norm called social distancing. “While the Asia-Pacific region’s response to the pandemic has been done well, the impact on businesses has been severe. Yet let us also note that in times like these, cooperatives are essential.”

It is indeed very difficult to give definite answers as to stop-gap measures on how businesses can cope, as each of the presenters had that common denominator – that the pandemic has drastically affected different kinds of businesses. Yet let us be confident that there is always light at the end of the tunnel. Co-operators will always remain steadfast; and given the opportunity – combined with their inner strength, will-power and determination – will continuously seek and find solutions to any problems that come their way.

Online communication is the new norm among the movement, as Melina Morrison of Coops Australia best sees it. She stressed: “This means creating and disseminating information on how cooperatives can respond to the pandemic through multichannel communications and online technology. Then there are videos produced for members on how they respond, via a coop resiliency report, with their reactions; plus the need for more education and training online.”
With Australia being esteemed globally for its quality agricultural produce, Ms. Morrison observed the need to enhance and advocate more agricultural activities, which suffered due to export losses. “Member cooperatives can advocate funding for air freight to deliver these produce,” she added.

The need for lobbying that cooperatives be expressly included in the stimulus package of the government was what Dr. Gary Leonardo, Chairperson of the Philippine Cooperative Centre (PCC) emphasized—considering the potent force that it is in the Philippines, with 11 million members, comprising 16 percent of the country’s population who are 20 years old and above.

“Philippine cooperatives are in a survival mode; yet they have done a lot during this pandemic as they have provided assistance to members and communities; distributed PPEs and food packs for frontliners; supported the farmers from the Northern part of the Philippines by purchasing their vegetables for distribution to indigenous communities in one province in the North and to needy coop communities in the National Capital Region,” he stressed. “

At the same time, the movement has lobbied Congress for the following measures that include:
• Credit cooperatives to be reclassified as essential businesses and for these to be allowed to operate during the lock down period
• For CDF (Cooperative Development Fund) to provide assistance to needy communities outside a coop’s sphere of operations
• The distribution of ICPRs even if a General Assembly has not been adopted
• Extending the deadline with the CDA for submission of compliance reports and
• Deferring the holding of GA’s.”

As part of the Lobbying process, the PCC Chair brought the need for expressed inclusion of cooperatives in the different modes of assistance under the stimulus package of a pending bill in Congress:
• Wage subsidies
• Regulatory relief for MSMEs
• Regulatory relief for businesses
• Bridging loans for MSMEs
• Interest-free loans from government banks
• Guarantee fund for MSMEs
• Assistance to MSMEs by the Department of Trade and Industry (DTI)
• Bailing out critically impacted businesses and
• Enhancement in facilities relating to health, education, food/agriculture and creative industries.

Some other recovery strategies that Dr. Leonardo stressed include:
• To continue lobbying for regulatory and statutory relief through the use of the General Reserve Fund (GRF) for operations
• Relaxing the Provision for Loan Losses (PLL)
• Applying any net losses to PLL instead of charging to GRF
• Extending the validity of certificates of compliance
• Virtual board meetings to be considered official; and even Virtual General Assemblies
• Maximizing the utilization of transport coops
• Transition towards digitalization, e.g. via cashless banking, digital training and telehealth
• More robust data base

“Part of the recovery strategies is the government’s Balik-Probinsya or back to rural program which will reverse the flow from urban to rural areas; this will help returnees tap economic potentials/opportunities that the countryside offers, especially in agriculture and agribusiness. This can be aided by transport coops that will be allowed to operate in order to convey these goods and commuters. This is where the principle of Cooperation among Cooperatives comes to fore, as well as the strengthening of the partnership between the government and the cooperative sector”, he graciously summed up.

From traditional to modern

Dr. Nguyen Ngoc Bao, President of the Vietnam Cooperative Alliance, noted how his country was very successful in controlling COVID-19, with one of the lowest rates of infection in both Asia and the world—for which he thanked the cohesiveness and cooperation of the Vietnamese people and its coop movement, with over 30 million members. While he admitted that there is yet a vaccine to be developed to effectively control this pandemic, he looks forward to having more exchanges with fellow cooperators regarding updates and measures on how their counterparts have devised solutions to this global dilemma.

During his presentation, Mr. Alireza Banaeifer, President of the Iran Chamber of Cooperatives admitted how the trade sanctions have drastically affected businesses and industries in his home country: the decrease in incomes of export cooperatives; the stopping of production of industrial and agricultural cooperatives due to the stopping of the import of industrial machines; and the falling demand for agricultural goods that led to the closure of restaurants.

Yet despite such setbacks, Mr. Banaeifer still looked up with confidence on the proposals the Iranian cooperative movement has undertaken, namely:
• Transforming coop business styles from traditional to modern, based on IT
• Streamlining decision-making processes and eliminating bureaucracy in organizations
• Training employees and members through e-learning, with special attention to ‘platform cooperatives’ and through the adoption of flexible working hours and
• The role of the youth due to their creative mettle, risk-taking sense and flexibility to rapidly adapt to new trends.

As Mr. Banaisaifer pointed out with a renewed sense of confidence: “Let all of us in the movement this time, be leaner, healthier and safer; this is also a time for us to be united and to adopt new ways.”

Three Indian cooperators, Drs. Chandraphal Singh, U.S. Aswanti and S. Satyanarayana, equally shared their inputs on what can be done during this lockdown. “The effect of the pandemic has hit us very hard. But we will come out stronger by following guidelines and safety measures, and by staying safe as well as taking good care of everyone during this very difficult time,” stressed Dr. Singh.

Added Dr. Aswanti: “Cooperatives have a role for a large, agriculture-based economy with a large population like India, where the movement makes sure of the availability of fertilizers, plus the safety of our farmers. Let us also give more emphasis not on what is happening, but what we in the movement can do, by taking care of sanitary arrangements, food and the safety of our members. Cooperatives will be there in the service to the nation, one for all and all for one.” Dr. Aswanti emphasized the VALUE OF PEOPLE OVER THE VALUE OF MONEY.

“With the easing of social distancing, there is also the need for the right information while, at the same time taking necessary precautions,” furthered Dr. Satyanarayana.

“It is very timely to host an online meeting at this most crucial moment,” said Mr. Li Chunseng. ICA Asia Pacific President, stressing that “despite the isolation prompted by social distancing, let the cooperatives continue their activities. Let us strengthen our voices and capabilities.

Despite the odds created by social distancing, the Webinar conferences have generated a positive impact among cooperators in Indonesia, which is the world’s largest archipelago. This is the impression of Dr. Burhanuddin Abdullah , Rektor of IKOPIN- Indonesia.

“Webinar has been of very good news for faculty members of IKOPIN, Indonesia’s only higher- level institution devoted to cooperative studies,” he proudly noted. IKOPIN is educating, training, propagandizing and preaching the concept of cooperativism in our country. Aside from benefiting online participants, Webinar has also granted the opportunity to exchange information and insights with ICA leaders like Mr. Iyer, as well as our counterparts in other Asian countries like Ms. Sylvia Paraguya of NATCCO from the Philippines.”

And, he is looking forward to more online exchanges in the near future.

Answers through solidarity: coops’ effective tools

Wishing all participants and those tuned in to this Webinar his best wishes, ICA Chairperson Ariel Guaco admitted how this pandemic has become a challenge to cooperatives and to humanity as a whole. However, despite the grim reality that social distancing has kept millions of cooperators throughout the globe physically separated, they are doing their part in combatting dilemmas triggered by lockdowns and harsh measures that many have experienced for the first time in their lives.

“At the same time, I am very much moved that, thanks through the wonders of technology, I receive daily news about cooperatives in action, of the great effects they have in taking an active role in caring for their members, with their visibility that gives answers through solidarity as that effective tool the movement can be proud of.

“Through caring for their members, the key task on how cooperatives continue to function by creating food, cooperatives are indeed here to stay. And in 2020, reaching 60 years of institutionalized intervention, is the greatest strength that cooperatives have, in its quest to generate a decent, well-lived life, to care for those in need and to distribute greater opportunities,” he graciously summed up.

The different cooperatives in the various countries do have different approaches for combatting the effects triggered by the pandemic. And this Webinar conference truly opened up our mindsets to the various means and deeds that can take place. But whatever these may be, these go beyond just digits and figures; these go towards, as the ICA President Guarco stresses with great confidence, ‘the active, enduring and timeless role that cooperatives have, in caring for their members and the communities.’

With PCC Chair Leonardo also pointing out the need for greater cooperation among cooperatives, let us also be imbibed with the credo that ‘now’s the time we all do things together, with cohesiveness, compassion and strength, under the New Normal”.

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