Editorial p. 2 Cooperative Social Balance: an efficient tool for cooperatives in the 21st century p. 3 Advocacy work of the cooperative movement in the Americas p. 4 Parliamentarians support the cooperative movement p. 6 Developing countries will contribute almost half of global growth p. 7 By 2020 cooperatives could be the fastest‐growing enterprise model p. 8 Join the global network of cooperatives p.9 The US Electric Cooperative experience and the challenges ahead p. 10 Inside ELECTRICITY, ENVIRONMENT AND TECHNOLOGY: THE U.S. ELECTRIC COOPERATIVE EXPERIENCE Martin J. Lowery, National Rural Electric Cooperative Association (page 10) ADVOCACY WORK OF THE COOPERA- TIVE MOVEMENT IN THE AMERICAS The declaration of 2012 as International Year of Cooperatives provides a plat‐ form to show that cooperatives are a tool for social cohesion and inclusion. (page 4) DEVELOPING COUNTRIES AND THEIR CONTRIBUTION TO GLOBAL GROWTH According to a UN report, after a year of fragile and uneven recovery, global eco‐ nomic growth started to decelerate on a broad front in mid‐2010. (page 7) JOIN THE GLOBAL NETWORK OF CO- OPERATIVES The International Co‐operative Alliance has launched its Membership Campaign 2011: “Together we can make it possi‐ ble”. (page 9) Charles Gould: “By 2020 cooperatives could be the fastest‐growing enterprise model” (page 8) Interview to Luis Rubeo, from the Network of Cooperative Parliamentarians in the Americas (page 6) COOPERATIVE SOCIAL BALANCE: AN EFFICIENT TOOL FOR COOPERATIVES IN THE 21 ST CENTURY (page 3) More organizations obtain ICA‐Americas certification ICA-Americas Newsletter Issue Nº 9 // May 2011 ICA-Americas Newsletter is an e-publication of the International Co-operative Alliance for the Americas [email protected]Phone: + (506) 2296 0981 Fax: + (506) 2231 5842 PO BOX: 6648 -1000 San José, Costa Rica
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Editorial
p. 2
Cooperative Social Balance: an efficient tool for
cooperatives in the 21st century
p. 3
Advocacy work of the cooperative movement
in the Americas p. 4
Parliamentarians support
the cooperative movement p. 6
Developing countries will
contribute almost half of global growth
p. 7
By 2020 cooperatives could be the fastest‐growing
enterprise model p. 8
Join the global network
of cooperatives p.9
The US Electric Cooperative
experience and the challenges ahead
p. 10
Inside
ELECTRICITY, ENVIRONMENT AND TECHNOLOGY: THE U.S. ELECTRIC COOPERATIVE EXPERIENCE Martin J. Lowery, National Rural Electric Cooperative Association (page 10)
ADVOCACY WORK OF THE COOPERA-TIVE MOVEMENT IN THE AMERICAS The declaration of 2012 as International Year of Cooperatives provides a plat‐form to show that cooperatives are a tool for social cohesion and inclusion. (page 4)
DEVELOPING COUNTRIES AND THEIR CONTRIBUTION TO GLOBAL GROWTH According to a UN report, after a year of fragile and uneven recovery, global eco‐nomic growth started to decelerate on a broad front in mid‐2010. (page 7)
JOIN THE GLOBAL NETWORK OF CO-OPERATIVES The International Co‐operative Alliance has launched its Membership Campaign 2011: “Together we can make it possi‐ble”. (page 9)
Charles Gould: “By 2020 cooperatives could be the
fastest‐growing enterprise model” (page 8)
Interview to Luis Rubeo, from the Network of Cooperative Parliamentarians in the Americas (page 6)
COOPERATIVE SOCIAL BALANCE: AN EFFICIENT TOOL FOR COOPERATIVES IN THE 21ST CENTURY (page 3)
More organizations obtain ICA‐Americas certification
ICA-Americas Newsletter Issue Nº 9 // May 2011
ICA-Americas Newsletter is an e-publication of the
International Co-operative Alliance for the Americas
Several ICA‐Americas member organizations in different
countries are developing actions to have an effective
influence on their governments and parliaments as a
means of placing cooperative issues on national
agendas. These are good times for cooperatives. The UN
declaration of 2012 International Year of Cooperatives
provides a platform for the movement to show the
general public cooperatives are a tool for social cohesion
and inclusion and that the coop business model has an
important role to play in years to come.
ICA-Americas Newsletter // Issue Nº 9 // May 2011 4
Senators Tim Johnson (D‐S.D.) and Thad Cochran (R‐
Miss.), along with 26 additional co‐sponsors, have intro‐
duced a resolution designating the year of 2012 as the
‘‘International Year of Cooperatives’’ and recognizing the
critical role that cooperatives play in the economy, both
nationally and worldwide. The resolution notes that coop‐
eratives operate in every industry sector and improve the
quality of lives of Americans, regardless of party affilia‐
tion, geography or demographics.
Senate Resolution 87 calls for the creation of a national
committee and “encourages highlighting the positive im‐
pact of cooperatives and developing new programs at na‐
tional and international levels”.
Thanks to the great efforts of those who contacted their
senators, this is a bipartisan proposal with 18 Democrats
and 10 Republicans as co‐sponsors. It is also a great edu‐
cational opportunity. When senators’ offices get calls
from multiple sectors on this same issue, it catches their
attention and helps them understand that cooperatives
are a broad‐based movement with support throughout
the nation.
With a federal election on May 2, the Canadian Co‐
operative Association (CCA) launched a campaign in April
to ensure that parties and candidates were aware of the
issues of importance to the co‐operative sector.
CCA created an election page on its website where co‐
operators were able to send an email to the candidates in
their ridings, or to the party leaders. The email asked can‐
didates to support the International Year of Co‐operatives
and three proposed 2012 legacy projects: a Co‐operative
Investment Plan, a co‐operative development fund fi‐
nanced jointly by the government and the co‐op sector,
and a permanent and expanded Co‐operative Develop‐
ment Initiative.
CCA also developed a non‐partisan election platform con‐
taining 13 recommendations dealing with a wide range of
issues of interest to CCA and its member organizations.
Copies of the election platform were sent to candidates,
and CCA posted their responses on the website.
The 8,500 co‐operatives and credit unions with over 17
million members in Canada contribute over 150,000 jobs
and are worth over $330 billion in assets.
COOPERATIVES IN CANADA LAUNCHED A CAMPAIGN TO RAISE AWARENESS ON COOPERATIVE ISSUES
SENATORS RECOGNIZE THE VITAL ROLE COOPERATIVES PLAY IN THE ECONOMIC AND SOCIAL WELL‐BEING OF THE UNITED STATES
ICA-Americas Newsletter // Issue Nº 9 // May 2011 5
Interview to Argentinean senator,
Luis Rubeo, about the Network of
Cooperative Parliamentarians in
the Americas.
Aiming at knowing the scope and objec‐
tives of this Network, ICA‐Americas News‐
letter interviewed Luis Rubeo, who is the
Secretary of the Advisory Council of the
Latin‐American Parliament.
How did parliamentarians receive the idea
of the creation of this Network?
It was received unanimously favorably dur‐
ing the last Latin‐American Parliament Con‐
gress, where I presented ICA‐Americas ini‐
tiative.
How is the Network integrated nowadays?
It is integrated by its founding members, the seventeen
parliamentarians from six countries (Argentina, Brazil, Co‐
lombia, Mexico, Paraguay and Peru) that took part in the
VI Meeting of Cooperative Parliamentarians in the Ameri‐
cas which was part of the XVII ICA‐Americas Regional Con‐
ference. At present we are waiting until ICA‐Americas sets
the grounds in terms or organization, planning and infra‐
structure.
What are the main benefits of taking part of a network
of this kind?
The benefits are numerous and varied. Cooperatives, par‐
liamentarians and the society as a whole will benefit from
this collaborative work. It will speed up all the processes
that need to be promoted to reach our objectives: popu‐
lar and participatory freedom within the democratic sys‐
tem
Which are the main objectives of this Network?
The objectives are endless. The first objective is the har‐
monization of the cooperative legislation in the Americas.
We also look for the promotion of the cooperative move‐
ment in order to obtain a favorable environment for its
growth and development..
We want to work for the consolidation of equality with
regards to the opportunities provided by the State. This
includes norms, productive measures, industrialization,
internal trade and exports, in which the cooperative
world must participate. It is a key component to
strengthen all the issues regarding progress and happi‐
ness of all nations.
Also, our goal is to have equal opportunities when it
comes to presence in the mass media. The legislation
should prohibit any kind of limitation which hinders the
presence of cooperatives in newspapers, radios, televi‐
sion. Cooperatives work for the defense of equal rights,
decent housing, education, healthcare and collective se‐
curity.
What are the difficulties this network may encounter?
Regarding this last questions, I can say the difficulties may
be the same the cooperative movement has had since it
was born. The only important thing is to do our best
within our organizations. This is our challenge and I am
sure we are going to be able to respond to it.
ICA-Americas Newsletter // Issue Nº 9 // May 2011
PARLIAMENTARIANS SUPPORT THE COOPERATIVE MOVEMENT
6
ICA-Americas Newsletter // Issue Nº 9 // May 2011 7
DEVELOPING COUNTRIES WILL CONTRIBUTE ALMOST HALF OF GLOBAL GROWTH
According to a United Nations report, after a year
of fragile and uneven recovery, global economic
growth started to decelerate on a broad front in
mid‐2010 and this slower growth is expected to
continue into 2011 and 2012. The United Nations
baseline forecast for the growth of world gross
product (WGP) is 3.1 per cent for 2011 and 3.5 per
cent for 2012, which is below the 3.6 per cent esti‐
mated for 2010 and the pre‐crisis pace of global
growth.
Weaknesses in major developed economies continue to
drag the global recovery and pose risks for world eco‐
nomic stability in the coming years.
The unprecedented scale of the policy measures taken by
Governments during the early stage of the crisis has no
doubt helped stabilize financial markets and jump‐start a
recovery. However, overcoming the structural problems
that led to the crisis—and those that were created by it—
is proving much more challenging and will be a lengthy
process. This contrasts with the strong GDP growth in
many developing countries and economies in transition,
which has contributed more than half of the total expan‐
sion of the world economy since the third quarter of 2009.
The report highlights the continued challenge posed by
high unemployment rates in many economies and outlines
a number of risks and uncertainties for the economic out‐
look such as a premature withdrawal of policy stimulus,
increased exchange rate volatility and a renewed widening
of global imbalances. Against this background, several pol‐
icy challenges are discussed in greater detail, including the
optimal design of fiscal policies as well as the coordination
between fiscal and monetary policies, the provision of suf‐
ficient support to developing countries in addressing the
fallout from the crisis and the coordination of policy meas‐
ures at the international level.
North America
Experts believe that North America in 2011 will show a
growth of approximately 2.3%. Then for unemployment,
2009 was at 9.3%, 2010 slightly higher at 9.7%, and projec‐
tions by year‐end 2011 to be down at 9.6%.
South America
The region is in recovery mode after being hit by the 2008‐
2009 world financial crises although compared to other
regions of the world has come out with less dam‐
age. Overall, the GDP dropped significantly in 2009 by
3.6% with recovery improving even more dramatically in
2010 and projections for 2011 being excellent. Regarding
unemployment rates, 2009 was listed at 8.4% with 2010
seeing a small drop to 8.2%.
Central America
While some countries within Central America have seen
some economic stability such as Panama, Costa Rica, and
Nicaragua being more developed, other less developed
countries face ongoing economic challenges. Studies show
that over the next decade, 4% of Central America’s GDP
will go into infrastructure.
Caribbean
The positive economic aspect is that for 2011, the GDP is
expected to see a 3.1% increase. In 2010, the GDP saw just
a 2.1% growth and while it is expected that outside financ‐
ing will be somewhat of a challenge to secure, again the
2011 GDP is expected to rise.
Recent reports show that a 0.6% decline in unemployment
was seen in 2010. That means that unemployment rate of
8.1% in 2009 dropped to 7.5% in 2010. In addition, it is
expected that by year‐end 2011, the rate will drop as
much as an additional 0.4%.
Source: United Nations and Economy Watch
ICA-Americas Newsletter // Issue Nº 9 // May 2011 8
2012: official slogan and logo released
“BY 2020 COOPERATIVES COULD BE THE FASTEST‐GROWING ENTERPRISE MODEL”
With the approach of the United Nations 2012 Inter‐
national Year of Co‐operatives Charles Gould, Direc‐
tor‐General of the ICA talked about the plans to ex‐
ploit the opportunities which the international year
brings to the movement. “The opportunity of the
United Nations International Year of Co‐operatives
in 2012 could not have happened at a better time.
Nine years from now, cooperatives could be the
fastest‐growing enterprise model in the world” he
said.
The International Cooperative Alliance is working hard to
celebrate the International Year and to make the most of
it in terms of legacy. “The real prize here is not to see
something in 2012 but to position the cooperative brand,
to re‐launch the cooperative brand in a way that we
could build on subsequent years” Gould said in a recent
interview to ICMIF. (To watch the full interview visit
http://www.2012.coop).
“A vision that the ICA Board is beginning to explore is
whether by the end of this decade, that is by 2020, coop‐
eratives could be the fastest‐growing enterprise model”
he said. “If we work hard, if we take advantage of the
year, if the plans are aligned, it could happen”.
According to Gould, the limits of other economic sys‐
tems, combined with the emergence of a generation for
whom technology‐aided coalescence and collaboration
are second‐nature, have made this the time for the co‐
operative message.
“I talk about the International Year frequently, not be‐
cause it is a solution to all that is wrong in the world, but
because it is a not‐to‐be‐missed opportunity for co‐
operatives everywhere to deliver a focused message at a
time ready for that message. Because the message we
will be delivering will be common among us, we will
demonstrate our scale, scope, and alignment, and can
capture the attention of people hungry for a new way”.
In a message to all ICA members, Charles Gould ex‐
plained ICA is raising funds now to ensure that “we can
seize this opportunity together”.
“We are developing the materials you will need to take
advantage of the Year ‐ key messages to promote the
Year; templates to incorporate the Year into your com‐
munications and packaging; posters to advertise the
Year; media kits to help tell the story. We are developing
the web site for www.2012.coop, where we will direct
those individuals who see the slogan in your communica‐
tions and who want to learn more. We are preparing the
stories that will ensure that the general public is exposed
to the international, multi‐sectoral dimension of co‐
operatives. And we are developing the social media
strategy that will allow us to attract especially that next
generation that is so critical to the future of co‐
operation” Gould explained.
Official slogan and logo
The official slogan and logo for the International Year
have been launched. The slogan is “Cooperative enter‐
prises build a better world” and the logo evokes the defi‐
nition of cooperative enterprises as autonomous associa‐
ICA-Americas Newsletter // Issue Nº 9 // May 2011 9
tions of persons united voluntarily to meet their com‐
mon economic, social and cultural needs and aspirations,
through a jointly owned and democratically controlled
enterprise.
Based on the slogan of the year, the logo features seven
persons working together to lift and support a cube. The
cube represents the various projects goals and aspira‐
tions upon which cooperative enterprises are built, and
the achievements that can be attained. The gender neu‐
tral figures represent the people factor central to the
cooperative model, and there are seven of them, to rep‐
resent the seven principles of the cooperative move‐
ment, i.e. voluntary and open membership, democratic
member control, member economic participation,
autonomy and independence, education, training, and
information, cooperation among cooperatives, and con‐
cern for community.
As illustrated by the logo, these seven principles work
together to allow cooperative members to achieve the
goals and desires that they would not have been able to
attain through their individual efforts.
Please go to http://social.un.org/coopsyear/documents/
IYC‐Logo‐Guidelines.pdf to review the guidelines before
using the logo as this document details proper uses and
design parameters for the logo and graphic tagline.
Defense and promotion of cooperative values and principles
Representation of the cooperative enterprise and the interests of the ICA members in multilateral organizations, as well as other global and regional institutions
Definition and promotion of the cooperative difference
Promotion and coordination of technical assistance for cooperative development
Multiple opportunities for contact among cooperatives
ICA-Americas Newsletter // Issue Nº 6 // September 2010 10 ICA-Americas Newsletter // Issue Nº 9 // May 2011 10
Key conferences by distinguished personalities of the cooperative movement
THE US ELECTRIC COOPERATIVE EXPERIENCE AND THE CHALLENGES AHEAD
Considering the complexities that we face today in a
world in which electricity plays such a critical role, four
questions may begin to clarify the boundaries of our
current and future technology opportunities:
Do we need a “smarter” electric grid?
How energy efficient can we become?
Can innovative technology solve the carbon question?
What can we do for those who have no access to elec‐
tricity?
Do we need a “smarter” electricity grid?
There are significant efficiency improvements that we
can make to the electricity delivery system. These in‐
volve reducing the need for additional generating capac‐
ity, avoiding wasted consumption of kilowatt hours and
finding ways to integrate renewable energy sources
such as wind and solar energy into the electric grid. The
economic ideal behind the building of a “smarter” elec‐
tricity grid is that we can balance supply and demand in
real time, thereby not wasting energy at either end of
the production‐consumption chain.
The first order of business is to determine whether
automation and new information technologies can
make a significant difference in improving the efficiency
of system operations and integrating renewable energy
sources. The second important consideration is whether
consumer behavior can be expected to change if more,
and more detailed, energy consumption information is
made available to them. Electric cooperatives in the
United States, with financial support from the U.S. De‐
partment of Energy, are working to demonstrate the
potential of “smarter” grid technology in these areas.
The XVII Regional Conference of ICA‐Americas had the preservation of the planet as a central theme. The key conference “Electricity, Environment and Technology", which was delivered by Martin J. Low‐ery, focused on the U.S experience and also on the challenges cooperatives face to become more en‐ergy‐efficient.
Electricity, Environment and Technology: The U.S. Electric Cooperative Experience By Martin J. Lowery *
ICA-Americas Newsletter // Issue Nº 9 // May 2011 11
How efficient can we become?
There is a great deal of interest today in becoming more
efficient in everything that we do, and most particularly
in the use of energy. If we consider what electricity de‐
livers from an end‐use perspective, it is heating and
cooling, refrigeration, lighting and motor power. As co‐
operatives, we can advocate for higher efficiency stan‐
dards in each of these areas. In addition, we can use
technology to control the impact of these end‐uses on
the peak demand for electricity. According to recent
surveys by the federal government, electric coopera‐
tives in the United States have significantly more peak
demand control technology on‐line today than the mu‐
nicipal and for‐profit segments of the electric industry.
Among the break‐through areas that can make a major
difference in electricity consumption are energy man‐
agement systems, heat pump water heaters, geother‐
mal systems, compact fluorescent lights and light‐
emitting diode lamps. These technologies will not meet
their greatest potential unless we see global support for
their introduction. We can work together as coopera‐
tives to make that happen. Most electric cooperatives
in the United States are participants in the Touchstone
Energy Cooperatives program, bringing new ideas for
energy efficiency to their members. You can learn more
about this work at www.TogetherWeSave.coop.
Can innovative technology solve the carbon question?
Among the ideas that have recently gained momentum
in the debate regarding CO2 and global climate change
is the importance of addressing the entire carbon cycle.
CO2 at the point of combustion in a power plant or an
automobile is the focus of attention regarding current
mitigation approaches. Reforestation is also being con‐
sidered as a global opportunity. Imagine, at the same
time, that there are likely to be new and beneficial uses
of carbon that have not yet been discovered.
Researchers are looking at commercial uses of CO2, in‐
cluding transportation fuels, plastics and fertilizers. Re‐
search is on‐going to demonstrate techniques to cap‐
ture CO2 and to identify chemical and biochemical proc‐
esses that lead to new commercial products. CO2 is
already manufactured for the purpose of injection into
oil wells for enhanced oil recovery. Many additional
commercial applications are possible. U.S. electric co‐
operatives, through the
Cooperative Research
Network, are collaborat‐
ing with government and
non‐governmental agen‐
cies to identify the most
promising approaches.
What can we do for
those who have no ac‐
cess to electricity?
Over two billion people
on this earth have no
access to electricity, and
another 1.5 billion have
limited access on a daily
basis. There is much work to be done to address this
important quality‐of‐life issue. A World Bank study of
the rural electrification program in Bangladesh, a pro‐
gram supported since 1977 by the U.S. electric coopera‐
tives, identified dramatic improvements in reducing in‐
fant mortality, improving sanitation and water quality
and in expanding girls’ access to education as a direct
result of the introduction of electricity to rural commu‐
nities. We should all advocate for the creation of many
more rural electric cooperatives throughout the devel‐
oping world. For more information on the work of the
U.S. electric cooperatives globally, visit
www.nrecainternational.coop.
Cooperatives exist for one purpose, and one purpose
only – to do what is right for their members. When we
assess technology options, we do so from the unique
viewpoint of the best interest of our members – particu‐
larly stressing the cooperative values of self‐help and
self‐responsibility. This truly does put us, as coopera‐
tives, in the best position to evaluate what makes sense
and what delivers the highest value.
* Martin J. Lowery is the Executive Vice President, External
Affairs, of the National Rural Electric Cooperative Associa‐
tion of the United States, an organization of over 900 elec‐
tric cooperatives in 47 states serving 42 million people. Dr.
Lowery is also currently Chair of the National Cooperative
Business Association of the United States and a member of
the board of the Ralph K. Morris Foundation. He holds a
The International Co‐operative Alliance continues growing globally. Nowadays ICA has more than 250 mem‐
ber organizations from 93 countries that together reunite more than 800 millions cooperators around the
world.
All of your suggestions and proposals regarding the newsletter’s contents are very important for us, since our primary goal is to provide a publication enriched by your opinions.