the story of the ilo’s promotion of cooperatives recommendation, 2002 · pdf...

The Story of the ILO’s Promotionof Cooperatives Recommendation, 2002 (No.193)

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Cooperatives Unit

International Labour OfficeRoute des Morillons 4CH-1211 Geneva 22SwitzerlandTel. +41 22 799 7095Fax +41 22 799 8572

[email protected] www.ilo.org/coop

For information, please contact :

International Labour Standards Department

International Labour OfficeRoute de Morillons 4CH-1211 Geneva 22

SwitzerlandTel. +41 (0)22 799 72 49Fax +41 (0)22 799 67 71

[email protected]/normes

There is a renaissance of interest in cooperatives, as democratically owned and controlled enterprises, in achieving socially inclusive sustainable development.

In June 2002 the International Labour Conference adopted the Promotion of Cooperatives Recommendation, 2002 (No. 193).

This report sets out to answer some key questions on the standard:

• Has it played a role in the revival of cooperative enterprises around the world?

• Has it managed to provide a practical and contemporary framework for the development of new cooperative legislation and policies?

• How many countries have used it in revising and reforming their cooperative legislation and policies?

In addition, the report provides an overview of:

• The reasons as to why an update to an earlier standard on cooperatives was needed;

• The process towards the adoption of the new standard;• How Recommendation No. 193 has been used since its adoption; and • The impact it has had on legislation, policies and practices around

the world.

The Story of the ILO’s Promotion The Story of the ILO’s Promotion of Cooperatives Recommendation, 2002 (No. 193)of Cooperatives Recommendation, 2002 (No. 193)

A review of the process of making ILO Recommendation No. 193, its implementation and its impact

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The story of the ILO’s Promotion of Cooperatives Recommendation, 2002 (No. 193). A review of the process of making ILO Recommendation No. 193, its implementation and its impact twelve years after adoption / International Labour Office. – Geneva: ILO, 2015

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The Story of the ILO’s Promotion The Story of the ILO’s Promotion of Cooperatives Recommendation, of Cooperatives Recommendation,

2002 (No. 193)2002 (No. 193)A review of the process of making

ILO Recommendation No. 193, its implementation and its impact

INTERNATIONAL LABOUR OFFICE • GENEVA

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Table of ContentsTable of Contents

Foreword viiAcknowledgements ixAbbreviations xi

Introduction 1

1 The ILO and cooperatives: A brief history (1920s–1980s) 3 A The early years of ILO’s engagement with cooperatives 3 B. ThefirstILOstandardoncooperatives:Co-operatives (DevelopingCountries)Recommendation,1966(No.127) 8

2 Towards a new Recommendation: The story of a participatory process 13 A Meeting of experts 13 B Governing Body decision 14 C. Thelawandpracticereportof2000andthereasonsfortherevision 15 D. MemberStatequestionnaire 17 E. DraftingoftheRecommendation 18 F. The2001ILCdebateandtherevisedRecommendation 18 G. Thedebateatthe2002ILC 20

3 Implementation and impact of Recommendation No 193: ILO’s contribution to creating a favourable environment 23

A. Introduction 23 B. InternationalandregionalimplementationofRecommendationNo.193 throughpartnershipsandinstruments 27 C. Nationalimplementation:Review,revisionandadoption of cooperative laws and policies 34 D. International,regionalandnationalcapacitybuilding 37 E Trends 44

Conclusions and lessons learnt 45 KeypublicationsonRecommendationNo.193(2002) 49

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The Story of the ILO’s Promotion of Cooperatives Recommendation, 2002 (No. 193)The Story of the ILO’s Promotion of Cooperatives Recommendation, 2002 (No. 193)

Annexes 51

Annex I: R193–PromotionofCooperativesRecommendation, 2002(No.193):RecommendationconcerningPromotionofCooperatives 51

Annex II: Extract:ILOCo-operatives(DevelopingCountries) Recommendation,1966(No.127) 61

Annex III:ConcertedactiontakentopromoteRecommendation No.193duringthefirstthreeyears(2003–2005) 63

Annex IV: Highlightsfromcapacity-buildinginitiatives undertakenbetween2006and2014usingRecommendationNo.193 72

Annex V: SpecificimpactsofRecommendationNo.193ontheactivities of employers’ and workers’ organizations 77

List of boxes and charts

Box1. DrGeorgesFauquet,thefirstChiefoftheILOCooperativeBranch 7

Box2: Cooperativeprinciples 17

Box3: SelectedICAmeetingswithpolicy-makersaddressingpolicyandlaw 39

Box4: DisseminationandtranslationofRecommendationNo.193 41

Box5: Selectedpublicationstoassistintheimplementation ofRecommendationNo.193withregardtopolicyandlaw 42

Chart1 PolicyandlegislationinfluencedbyRecommendationNo.193 byregionduringtheperiod1997–2014 35

Chart2 Internationalcapacity-buildingeventsbystakeholder 38

Chart3 Jointlyorganizedinternational/regionalcapacitybuilding bystakeholdergroups 40

Chart4 Nationalcapacity-buildingeventsorganizedbyregion 41

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ForewordForeword

There is a renaissance of interest in the cooperative enterprise model as a way toachievesociallyinclusivesustainabledevelopment.ThisisborneoutbytheoutcomedocumentoftheRio+20Conference‘Thefuturewewant’.Theresil-ienceofcooperativeenterprisestotherecentfinancialandeconomiccriseshasadded to the appeal of cooperatives as democratically owned and controlled formofbusiness, rooted incommunities.Fromitscreationin1919, theILOhasrecognizedtheimportanceofcooperativesasameansofpursuingitsman-datetoachievesocialjusticeandfullemployment.TheILOremainstheonlyspecializedagencyoftheUnitedNationswithanexplicitmandateoncooper-atives.CentraltoILO’smandateisasystemofinternationallabourstandardsthatpromoteopportunitiesforwomenandmentoobtaindecentandproductivework,inconditionsoffreedom,equity,securityanddignity.

AnILOinternationallabourstandardthathasbeenprovedhighlyrelevantfortherevivalofcooperativeenterprises inmanypartsof theworld is thePro-motionofCooperativesRecommendation,2002(No.193).Thisinternationalpolicyinstrument,adoptedbytheInternationalLabourConferencemorethanadecadeago,hasprovidedapractical,contemporaryframeworkforthedevel-opmentandrevisionofcooperativepoliciesandlegislationinmorethan100countriesworldwide.

ThepresentpublicationhighlightshowtheRecommendationNo.193isbeingused,anditsimpactonthelaws,policiesandpracticesofcountries.Thepubli-cationalsoprovidesabriefaccountoftheILO’sengagementwithcooperativedevelopment

Thispublication is the thirdproductofapackageoncooperative legislationthatalsoincludesILO“GuidelinesforCooperativeLegislation”(alreadyinitsthirdedition),andthe“PromotingCooperatives:AnInformationGuidetoILORecommendationNo.193”(secondedition).ThepackageisILO’scontributiontothelegalframeworkpillaroftheBlueprintforaCo-operativeDecade,devel-oped by the international cooperative movement

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Intended as a reference for lawmakers, co-operators, workers’ and employers’ organizations, researchers and students alike, we hope that this new publica-tion provides valuable insights into the process of developing an international standard through social dialogue in action and the benefits of its application.

Cleopatra Doumbia-Henry Peter PoschenDirector Director International Labour Standards Department Enterprises Department

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AcknowledgementsAcknowledgements

This publication was prepared by the ILO’s Cooperatives Unit, headedby Simel Esim. It is based on background papers by Hagen Henrÿ and Huseyin Polat. Valuable information and contributions were provided byMariaElenaChavezHertig,MathieudePoorter,NatanElkin,JosephFazzio,IrmaGodoy,SatokoHoriuchi,WaltteriKatajamäki,ManuelMariño,BrunoRoelants, Jürgen Schwettmann, Guy Tchami, Gabrielle Ullrich, ValentinaVerze, and Igor Vocatch. Richard Cook from Book Now Ltd provided editorialsupport.

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AbbreviationsAbbreviations

ACOPAM AppuiCoopératifetAssociatifauxInitiativesdeDéveloppementàlabase(CooperativeandOrganisationalSupporttoGrassrootsInitiatives)anILOprogrammeimplementedin1978–1999

ACT/EMP BureauforEmployers’Activities(ILO)

ACTRAV BureauforWorkers’Activities(ILO)

CEACR CommitteeofExpertsontheApplicationofConventionsandRecommendations(ILO)

CICOPA InternationalOrganisationofIndustrial,ArtisanalandServiceProducers’Cooperatives(asectoralorganizationoftheICA)

COPAC CommitteeforthePromotionandAdvancement ofCooperatives

COOPAFRICA CooperativeFacilityforAfrica(anILOprogramme)

COOPNET HumanResourceDevelopmentforCooperativeManagementandNetworking(anILOprogramme)

COOPREFORM StructuralReformthroughImprovementofCooperativeDevelopmentPoliciesandLegislation (anILOprogramme)

FAO FoodandAgricultureOrganizationoftheUnitedNations

ICA InternationalCo-operativeAlliance

ICFTU InternationalConfederationofFreeTradeUnions

IFAP InternationalFederationofAgriculturalProducers

ILC InternationalLabourConference

ILO InternationalLabourOrganization

ILO COOP CooperativesUnit

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INDISCO Inter-RegionalProgrammetoSupportSelf-RelianceofIndıgenousandTribalPeoplesthroughCooperativesandotherSelf-HelpOrganisations(anILOprogramme)

IOE International Organisation of Employers

ITUC InternationalTradeUnionConfederation

IYC UnitedNationsInternationalYearofCooperatives(2012)

MoU MemorandumofUnderstanding

OHADA Organisationpourl’HarmonisationenAfriqueduDroitdes Affaires (Organisation for the Harmonisation of BusinessLawinAfrica)

SYNDICOOP PovertyReductionamongUnprotectedInformalEconomyWorkersthroughTradeUnion-CooperativeJointAction (aprojectofILOCOOPwithACTRAV,ITUCandtheICA)

UN UnitedNations

UNDP UnitedNationsDevelopmentProgramme

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IntroductionIntroduction

More than 12 years have passed since the International LabourConference(ILC) adopted the Promotion of Cooperatives Recommendation (No.193).1 WhywasitnecessarytoupdatetheearlierCo-operatives(DevelopingCoun-tries)Recommendation,1966(No.127)?Howdidtheprocesstocompletetherevisiongo?HowhasitbeenusedbytheILOmemberStatesandotherstake-holders?Whathasbeenitsimpact?Whatcanwelearnfromtheeffortsoverthepast13yearstopromotecooperatives?

RecommendationNo.193isaninternationalinstrumentthataimstoguideILOmember States in the design and implementation of favourable cooperativedevelopmentpoliciesandlegislation.Itsetsoutaseriesofmeasuresthat,takentogether,canenablecooperativestocontributetotheeconomicandsocialwell-being of their members and of society at large It provides some basic technical inputsoncooperativepolicyandlegislation,stressingtheneedforalevelplay-ingfieldforcooperativesandotherbusinessorganizations.Italsounderlinestheneedtocreatemoreawarenessandunderstandingofthecooperativeformofenterprise,sothatpeopleareabletochoosewhichbusinessmodelbestsuitstheirneeds,andcallsforaconcertedefforttoimprovethedocumentationofthecontributionsmadebycooperatives.Furthermore,itincludesspecialprovisionsto strengthen the relationships between cooperatives and employers’ and work-ers’organizations,aswellasrelationshipsbetweencooperativesthemselves.

ThisreviewoftheprocesstowardstheadoptionandimplementationofRec-ommendation No.193 looks at its general contribution to the creation of afavourableenvironmentforthedevelopmentofcooperatives,includingapar-ticular focus on cooperative policy and legislation. This publication is not,however,intendedtosingleoutpolicyandlegislationasthemostimportantele-mentsoftheRecommendation,asadequatecooperativepoliciesandlegislationareonlyoneofthemanypromotionalmeasuressuggestedbytheRecommen-dation.Successofcooperativeenterprisesrequiresthatthegroundiswelllaidthroughacoherentdesignandconcertedimplementationofvariousmeasures.

1 Recommendation concerning the promotion of cooperatives, 2002 (No.193) is available inNORMLEXdatabaseundertheheading“Instruments”at:www.ilo.org/normlex

www.ilo.org/normlex

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SincetheadoptionofRecommendationNo.193in2002,publicawarenessoftheimportanceofcooperativepolicyandlegislationinsupportingthedevelopmentof cooperatives has been increasing The fact that cooperatives are weathering theturmoilofthefinancialandlabourmarketsrelativelywell–forthesecondtimeintheirmodernhistory–hascontributedtothisincreasedinterest.2 Also importantwasthedeclarationandobservanceoftheUNInternationalYearofCooperatives(IYC)in2012,whichdrewadditionalattentiontothesignificanceofcooperativepolicyandlegislation.CooperativelegislationandpolicyreformoftenfiguredinnationalplansofactionthatwereestablishedfortheIYC.3 The ICA’sBlueprintforaCooperativeDecadealsohasidentifiedlegislationasoneofitsfivebuildingblocks.

Within the ILO, the role of cooperatives has been recognized on severalinstances since the adoption ofRecommendationNo.193. The 2009Global JobsPact4recognizesthatcooperativesprovidejobsfromverysmallbusinessesto large multinationals. Several Conclusions adopted by the InternationalLabour Conference emphasise the role of cooperatives. These include theConclusionson thepromotionof sustainable enterprises in2007;5 theyouthemploymentcrisisin2012;6andachievingdecentwork,greenjobsandsustain-abledevelopmentin2013.7

Interesthasledtoaction,andthispaperreviewswhatactionshavebeentakentopromoteRecommendationNo.193.However,italsodescribesthecontextsoftheseactions,byfirstprovidingabriefaccount8 of the engagement of the ILO withcooperativedevelopmentandthehistoryofRecommendationNo.193.Italso presents information and an analysis of implementation processes related to cooperative policies and legislation

2 J.Birchall andL.H.Ketilson:Resilience of the cooperative business model in times of crisis (Geneva,InternationalLabourOffice,2009).

3 UnitedNationsGeneralAssemblyResolutionA/RES/64/136.4 InternationalLabourOffice(ILO).2009.A Global Jobs Pact,InternationalLabourConference,98thSession,Geneva,2009.Availableathttp://www.ilo.org/ilc/ILCSessions/98thSession/texts/WCMS_115076/lang--en/index htm

5 InternationalLabourOffice(ILO).2007.Conclusions concerning the promotion of sustainable enterprises, International Labour Conference, 96th Session, Geneva, 2007. Available at http://www.ilo.org/ilc/ILCSessions/96thSession/WCMS_093970/lang--en/index.htm

6 InternationalLabourOffice(ILO).2012.The youth employment crisis: Time for action,ReportV,InternationalLabourConference,101stSession,Geneva,2012.Availableathttp://www.ilo.org/washington/areas/youth-employment/WCMS_175421/lang--en/index.htm

7 International Labour Office (ILO). 2013. Sustainable development, decent work and greenjobs, ReportV, International Labour Conference, 102nd Session,Geneva, 2013.Available athttp://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_207370.pdf

8 Formore details see:H.Henrÿ: “The contribution of the ILO to the formation of thePublicInternationalCooperativeLaw” in:S.KottandJ.Droux(eds):Globalizing social rights. The International Labour Organization and beyond. ILO Century Series (Basingstoke, PalgraveMacmillan,2013)pp.98–114.

http://www.ilo.org/ilc/ILCSessions/98thSession/texts/WCMS_115076/lang--en/index.htm

http://www.ilo.org/ilc/ILCSessions/98thSession/texts/WCMS_115076/lang--en/index.htm

http://www.ilo.org/ilc/ILCSessions/96thSession/WCMS_093970/lang--en/index.htm

http://www.ilo.org/washington/areas/youth-employment/WCMS_175421/lang--en/index.htm

http://www.ilo.org/washington/areas/youth-employment/WCMS_175421/lang--en/index.htm

http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_207370.pdf

http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_207370.pdf

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1.1. The ILO and cooperatives: The ILO and cooperatives: A brief history (1920s–1980s)A brief history (1920s–1980s)

A. The early years of ILO’s engagement with cooperatives

Albert Thomas and the creation of the Cooperative Branch

TheILOrecognizes the importanceofcooperatives inarticle12of itsCon-stitution, which provides for consultation with co-operators includingemployers,workersandagriculturists through their recognized internationalorganizations 9

ILO’sinterestincooperativescanbetracedbacktoAlbertThomas,thefirstDirector of the InternationalLabourOffice (theOffice).He hadworked fortheFrenchcooperativemovement,andatthetimeofhisnominationhewasasittingInternationalCo-operativeAlliance(ICA)Boardmember.Whilehav-inggreatrespectforthetripartismoftheILO(withgovernments,employers’organizations and workers’ organizations of the member States being the con-stituentsoftheILO),heknewthatalargeproportionoftheeconomicandsocialactorsweremissingfromthisstructure.Attemptsinthe1920stoturntheILOintoaquadripartitestructure,byincludingcooperativeorganizations,failed.10 However,byaunanimousdecisionoftheGoverningBody,takenatitsThirdSession(March1920)inviewof“thecloserelationswhichexistbetweentheproblemsoflabourandthoseofco-operation”,11theCooperativeServicewascreated within the ILO 12Itsrolewasto“givecarefulattentiontothestudyofdifferentaspectsofco-operationwhichareconnectedwiththeimprovements

9 “TheInternationalLabourOrganizationmaymakesuitablearrangementsforsuchconsultationas it may think desirable with recognised non-governmental international organizations,including international organizations of employers, workers, agriculturists and cooperators.”Article 12(3) of the ILOConstitution. http://www.ilo.org/public/english/bureau/leg/download/constitution.pdf

10 InternationalLabourConference,ForthSession(1),Geneva,1922,p.1023.11 InternationalLabourConference,ThirdSession(1),Geneva,1921,p.565.12 The entity currently responsible for cooperatives at the ILO is the Cooperatives Unit (ILOCOOP),previouslycalledCooperativeOrganisationsService;Cooperative,RuralandRelatedInstitutionsBranch;CooperativeBranch;andCooperativeProgramme.

http://www.ilo.org/public/english/bureau/leg/download/constitution.pdf

http://www.ilo.org/public/english/bureau/leg/download/constitution.pdf

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of the economic and social conditionsof theworkers”.13 It was to act as an internationalcentreforcooperativeresearch,documentation,informationandadviceaswellas to liaisewithcooperativeorganizations.TheCooperativesUnit isoneof the fewbranches tohavesurvived thevarious reformsof theOfficeduringitscloseto100years’history.

The ILO’s Inter-Cooperative Relations Committee

The Correspondence Committee on Co-operation was established by theILO in1923,during the17thSessionof theGoverningBody.TheCommit-tee’smemberswereexpertsappointedbythemostqualifiedcooperativeswithrespecttotheCommittee’sfunction.TheestablishmentoftheCommitteerep-resentedanimportantcontributiontotheILO’sworkoncooperation,bothintheoreticalandpracticalterms.Moreover,itallowedtheICAtobeinformedabouttheagendaoftheILC.

In 1931 the Correspondence Committee on Cooperation became the Inter-national Committee on Inter-Cooperative Relations. The creation of thisCommitteeresultedfromactiontakenbyAlbertThomasduringtheInterna-tionalCooperativeCongress inGhent,Belgiumin1924,andfromthe jointinitiative of the ICA and the InternationalConfederation ofAgriculture asa consequenceof a resolution adoptedby the InternationalEconomicCon-ferencein1927.ThomasturnedthisCommitteeintoaninstrumentthroughwhichhecouldgiveasmuchimpetusandinfluencetothecooperativemove-mentastotheILO.Itspurposewastwofold:(a)topromotethedevelopmentofmoralandeconomicrelationsbetweentheconsumers’andtheagriculturalcooperativeorganizations,and(b)toactasaliaisonbodybetweenthecooper-ativemovementasawholeandtheILO.ItsChairmanwasalwaystheDirectorof the ILO, and its secretariatwas provided by theCooperativeService of the ILO

The creation andwork of thisCommittee characterized the diversity, unityandcontinuityofactionthatThomasdeployed,notonlyintheILO,butalsowithintheFrenchandinternationalcooperativemovements.TheILOhadthusestablishedastronglinkwiththecooperativemovement.TheCommitteewasdisbandedin1938.

13 InternationalLabourConference,ThirdSession(1),Geneva,1921,p.565.

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1. The ILO and cooperatives: A brief history (1920s–1980s)1. The ILO and cooperatives: A brief history (1920s–1980s)

Georges Fauquet and Maurice Colombain

In1929–1930Thomaspersuadedtheagriculturalcooperativesnot toformacentralinternationalorganizationrivallingtheICA,buttocreateaspecialcom-mitteewithintheInternationalCommissionofAgriculture.InthiscommitteeheunitedtherepresentativesoftheICAwiththoseoftheagriculturalcooper-atives.In1924,inareportpresentedtotheGhentCongresswithDrGeorgesFauquet,Thomasurgedcooperativesocietiestoform,everywherewheretech-nicalconditionsallowed,labourlimitedpartnershipsamongtheiremployees.InlinewithThomas’proposal,DrFauquet,togetherwithFrenchcooperators,establishedanassociationinParistopromoteworkercooperatives.14

BetweenthetwoWorldWars,researchandinformationgatheringanddissem-inationweretheILO’smainactivitiesinthefieldofcooperation.Aprogrammeofpracticalactivity(technicalcooperation)wasinitiatedin1932.Thefirstcoop-erativetechnicalassistancemissionwasundertakenbyILOstaffattherequestof theMoroccanGovernment.Between1932and1947,MauriceColombain,thenthechiefoftheCooperativeBranch,providedadviceonapolicyforthedevelopment of cooperatives in Morocco

Cooperatives in territories

The26thSessionoftheILC,heldinPhiladelphiain1944,adoptedtheSocialPolicy inDependentTerritoriesRecommendation, 1944 (No.70).Article 45insection14concentratesoncooperativeorganizations,stressingthenationaldevelopment of cooperatives 15 The Recommendation stressed the need foradequatelegislationcoveringallformsofcooperatives.Itunderlinedtheneedforassistanceanddevelopmentofcooperativesocieties,includingcooperativeorganizationsofworkersforthepromotionofhealth,housingandeducation,tobeacceptedaspartoftheeconomicprogrammeofcompetentauthoritiesindependent territories

Advisory Committee on Co-operation

InMay1946theILOGoverningBody,atits98thSession,decidedtoestablishtheAdvisoryCommitteeonCo-operation.AtitsFirstSession,inGenevainOctober1949, thenewCommittee studiedanumberofquestions, including

14 R.Louis:Labour cooperatives – Retrospect and prospects(Geneva,1983),pp.5–6.15 ILO Social Policy in Dependent Territories Recommendation, 1944 (No.70). Available inNORMLEXdatabaseundertheheading“Instruments”at:www.ilo.org/normlex

www.ilo.org/normlex

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thepossibilitiesforcooperativeactioninlessdevelopedcountries.Initsrec-ommendations,theCommitteeemphasizedtheneedforastudyofcooperativelaw,tohelpthegovernmentsofthecountriesconcernedtoestablishorimprove“a legal framework adapted to the special conditions of development of theco-operativemovement”.16

ItwaslatersuggestedthattheCommitteeshouldbeenlarged.TheILOGov-erning Body decided that the Committee should henceforth function as aCorrespondence Committee, fromwhich panels ofmembersmight be con-venedforconsultationonspecificsubjectsfromtimetotime.TheCommitteewasdissolvedin1953,butitleftbehindsomeusefulresolutionsandconsulta-tions on cooperative development

Technical assistance programmes with cooperatives

Duringtheperiod1949–1953,theILO’sactivitiesinthefieldofcooperationthrough cooperatives intensified. In fact, thiswasoneof themajor subjectsin ILO’s technical assistanceprogramme.Projects ranged fromgeneral sur-veys and the overall planning of administrative and promotional machinery tomeasuresconcerningspecificactivities,suchascooperativebanking,con-sumer cooperatives, industrial cooperatives and cooperative education andtrainingschemes.TheILO’sefforts,whethermadealoneor incollaborationwithotherinternationalorganizations,underlinedthepotentialroleofcooper-ationineconomicandsocialdevelopment,andprovideddirectbenefitstothecooperativemovementinmanycountries.

Cooperatives in regional conferences and the work of technical committees

CooperationalsofiguredfrequentlyontheagendaorinthediscussionsofotherorgansoftheILO.Thusthe26thSessionoftheILCin1944includedspecificreferencestothedesirabilityofencouragingcooperativeorganizations.17 ILO RegionalConferencesinAsia(1947and1950)andtheNearandMiddleEast(1947)bothadoptedseparateresolutionsconcerningcooperativedevelopmentintheirrespectiveregions.Theyalsoincludedreferencestothevalueofcoop-erativeactioninotherresolutionsoneconomicrequirementsforsocialprogress

16 ILO Advisory Committee on Co-operation, First Session, Geneva, 17-22 October 1949.ReportoftheCommittee,AnnexI:Resolutiononco-operationandILOactionforsocialandeconomicprogressinless-developedcountries.Availableat:http://www.ilo.org/public/libdoc/ilo/1949/49B09_37_engl pdf

17 InternationalLabourConference,26thSession,Philadelphia,1944.Availableat:http://www.ilo.org/public/libdoc/ilo/P/09616/09616%281944-26%29.pdf

http://www.ilo.org/public/libdoc/ilo/1949/49B09_37_engl.pdf

http://www.ilo.org/public/libdoc/ilo/1949/49B09_37_engl.pdf

http://www.ilo.org/public/libdoc/ilo/P/09616/09616%25281944-26%2529.pdf

http://www.ilo.org/public/libdoc/ilo/P/09616/09616%25281944-26%2529.pdf

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andconditionsoflifeandworkofprimaryproducers.TechnicalCommitteesoftheILO,suchasthePermanentAgriculturalCommittee,theCommitteeofExpertsonSocialSecurityandthePermanentMigrationCommittee,consid-eredcooperativeactivitiesasrelevantsubjectsintheirrespectivedomains.

Box 1. Dr Georges Fauquet, the first Chief of the ILO Cooperative Branch

The ideas of Dr Fauquet form a transition between the preceding school of thought and the socialist philosophies of cooperation. Fauquet’s main contributions to cooperative studies span a number of years:1924 Collaboration with Albert Thomas on his report before the Ghent Congress of

the ICA, “Relations between the different forms of cooperation”;1927 Article on the main types of cooperative relations that exist between

producers and consumers of agricultural products, in the Annals of Collective Economy;

1933 Article in the Mélanges Edgard Milhaud;1934 Report to the International Institute of Cooperative Studies;1935 First edition of the book Le secteur coopératif, which contains the preceding

two chapters.

Various of his articles written between 1932 and 1946 were gathered in a volume under the title Regards sur le movement coopératif, published in 1949. This volume also included the notes of his lecture in 1939 on the moral value of cooperation, which he defended and demonstrated better than anyone else. His other contributions are of interest chiefly in connection with the problem of unity of cooperation under its various forms; the integration of cooperatives; the distinctions between enterprise and association; cooperation taken as a service enterprise; and the moral nature of cooperation.

At the ICA’s 19th Congress, held in Paris in 1954, Dr Fauquet was awarded the ICA Jubilee Triennial Prize for his eminent qualities of mind and character and his precious contributions to cooperative thought. A remarkably life-like portrait of Dr Fauquet was presented to the headquarters of the Alliance in the name of the French and Swiss Cooperative Movements. A cooperative centre was opened under his name in Rabat, Morocco in 1952, following the mission of the then Chief of the Cooperative Branch, Maurice Colombain (G. Fauquet Centre for Studies and Cooperative Action of Morocco).

Sources: P. Lambert: Studies in the Social Philosophy of Co-operation (Brussels, Société Générale Coopérative, 1963) pp. 105–108; W.P. Watkins: International Cooperative Alliance 1885-1970 (London, ICA, 1970), pp. 276–277; ILO Cooperative Information No. 3/70, p. 80.

Meetings of panel of experts

In1953andin1962theCorrespondenceCommitteeonCooperationorganizedmeetingsofapanelofexpertstodiscussandreviewrecenttrendsanddevelop-mentsinthecooperativemovementaroundtheworld.Theroleofsuchexpertmeetings was to advise the Director General of the ILO in the preparation of subjectsrelevanttotheILC.

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Atits157thSessioninNovember1963,theGoverningBodyoftheILOdecidedtoincludethe“RoleofCooperativesintheEconomicandSocialDevelopmentoftheDevelopingCountries”amongtheitemsontheagendaofthe49thSes-sionoftheILC(1965).

In1964 theOfficewent througha reorganization.Asa result, the functionsoftheCooperative,RuralandRelatedInstitutionsBranchoftheSocialInsti-tutions Development Department were changed to include investigatingquestions related to agrarian reform, land settlement, agricultural organiza-tions, government services related to the social and occupational protectionof ruralpopulations, indigenousand tribalpopulations, and the institutionalaspectsofoverallruraldevelopment,includingcommunitydevelopment.

Duringtheyears1964–1965theILOhadasmanyas80expertsoncoopera-tivesworkingin40differentcountries.

B. The first ILO standard on cooperatives: Co-operatives (Developing Countries) Recommendation, 1966 (No. 127)

Adoption of the Recommendation

ILCReportsVII(1)andVII(2),The role of cooperatives in the economic and social development of developing countries,were discussed at the 49th and50thSessionsof theILCin1965and1966.Subsequently, theCo-operatives(DevelopingCountries)Recommendation,1966(No.127)wasadoptedby317votestozero,withsixabstentions.

TheILCalsoadopted tworesolutionson thesubjectofcooperation throughcooperatives.Thefirstdrewattentiontotheneedforinternationalcooperativebanking,toincreasetheavailabilityoffinancialaidfrominternationalsourcesfor cooperative development The second invited the international bodies con-cerned tocollaborate to thegreatestextentpossible,bothamongthemselvesandwithmemberStates, toaidandencourage thecooperativemovement indevelopingcountries.

TheadoptionofRecommendationNo.127markedadecisivestepforcoopera-tivepolicyandlegislation,particularlyasitwasadoptedatatimeofintensifyingtechnicalcooperationwithdevelopingcountries.

ICA Congress and discussions on the impact of Recommendation No. 127

The year 1966was of special importance to the cooperativemovement; inadditiontotheadoptionofRecommendationNo.127,the23rdCongressofthe

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ICAreviseditsCooperativePrinciplesforthesecondtime.Asaresultoftherevision,twonewprinciples,cooperationamongcooperativesandtheneedforcooperativestoprovideeducationandtrainingtotheirmembers,wereadded.

InOctober1968apanelofexpertsoncooperativesdiscussednon-conventionalformsofcooperatives,thereasonsunderlyingtheestablishmentofcooperativeenterprisedevelopment centres indeveloping countries and the influenceofRecommendationNo.127. Themeeting concluded that a framework for theILO’s cooperative development policy had been established, but that itwastooearlytoassesstheconsequencesofsuchafarreachingRecommendation.However,overthefollowing25years,theILOorganizednofurthermeetingsofexpertsonthissubject.Instead,theILO’sCooperativeBranchconcentratedits efforts on the implementation of technical cooperation projects for cooper-ative development

OnDecember1968theUNGeneralAssemblyadoptedaresolutionrecogniz-ing the role of the cooperative movement in economic and social development TheresolutionrequestedtheILOandotherconcernedUNagenciestoincreasetheirsupportforthecooperativemovementinorderforittobeabletobettercontributetowardseconomicandsocialdevelopmentofdevelopingcountries.

The impact of Recommendation No. 127

Asformercoloniesgainedtheirindependence,mainlyduringthe1960s,andin line with the policies suggested for the first UN Development Decade,launched in 1961, development of and through cooperatives gained impor-tanceattheinternationallevel.Cooperativeswereseenasimportantmeanstoachievingglobaldevelopmentgoals.In1966thenowlegallybindinghumanrightsinstrumentswereadopted.OneofthesewastheInternationalCovenantonEconomic,SocialandCulturalRights,whichreflectstheprinciplesofthefirstUNDevelopmentDecadeandemphasizesmatterswhicharecommontothedefinedobjectivesofcooperatives,i.e.that“developmentconcernsnotonlyman’smaterialneeds,butalsotheimprovementofthesocialconditionsofhislifeandhisbroadhumanaspirations”.18

Recommendation No.127 was used intensively by technical cooperationprojectsfromthe1960suntilthelate1990stotrainnotonlycooperativeman-agersandboardofdirectors,butalsosupervisors,consultantsandgovernmentofficials.InparticularthedefinitionofcooperativesgivenintheRecommen-dationwasusedtochangethemindsetofgovernmentofficialsabouttherole

18 UnitedNations:United Nations Development Decade: Proposals for Action(NewYork,1962).

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of government in cooperative development 19Thisdefinitionwasalsoadoptedbyseveralcooperativelaws.InTanzania,forinstance,theCooperativeSoci-etiesActof1982waslargelyinfluencedbythewordingofRecommendationNo.127.20

Startinginthe1970s,ILOtechnicalcooperationprogrammesassistedcooper-ativestobecomeself-reliantinmanagingtheirbusinessesandprovidedadviceto governments on cooperative policy and legislation These programmes includedMATCOM(MaterialsandTechniquesforCooperativeManagementTraining),COOPNET(HumanResourceDevelopmentforCooperativeMan-agement andNetworking) andCOOPREFORM (StructuralReform throughImprovementofCooperativeDevelopmentPoliciesandLegislation).ToworkinconjunctionwiththeCOOPNETandCOOPREFORMprogrammes,theILOdeveloped a third inter-regional programme, INDISCO (The Inter-regionalProgrammetoSupportSelf-RelianceofIndigenousandTribalCommunitiesthroughCooperativesandotherSelf-HelpOrganizations).Thiswasdesignedto assist indigenous and tribal peoples to organize in cooperatives for theirself-reliance. COOPREFORM and INDISCO worked together to developculturallysensitivecooperativeby-lawsforindigenousgroupsusingRecom-mendationNo.127.21

Chapter IIIofRecommendationNo.127,on the implementationofpolicies forcooperativedevelopmentandcooperativeeducationandtraining,providedthebasisforthistechnicalcooperation.InAfrica,oneofthelongest-lastingandlargerILOtechnicalcooperationprogrammes,ACOPAM(Cooperativeand Organizational Support to Grassroots’ Initiatives), supported the for-mulation of national policy reforms and legislation on rural cooperatives,using Recommendation No.127, in addition to supporting national strate-giesonfoodsecurityandtheestablishmentofcerealbanks.22 The Food and AgricultureOrganizationof theUnitedNations (FAO)also referred to theRecommendation, particularly in its training programmes for agriculturalcooperativesand landreformin the1970sand1980s, someofwhichwere

19 TheRecommendationNo.127 defines a cooperative as “an association of personswhohavevoluntarilyjoinedtogethertoachieveacommonendthroughtheformationofademocraticallycontrolledorganisation,makingequitablecontributionstothecapitalrequiredandacceptingafairshareoftherisksandbenefitsoftheundertakinginwhichthemembersactivelyparticipate”.

20 H.H.Münkner:Comparative study of cooperative law in Africa (Marburg,MarburgConsult,1989),p.109.

21 A jointCOOPREFORMand INDISCOworkshop organized inBaguio city, thePhilippines,in partnership with the Cooperative Development Authority (CDA), in 1993, assisted therepresentativesofsevenmajorindigenousgroupsinthedesignofspecificby-lawstomeettheirculturalneeds,usingRecommendationNo.127.

22 A. Mossige and E. Whist: Evaluation of ACOPAM (Oslo, NORAD, 2002). Available at: http://www.norad.no/en/tools-and-publications/publications/publication?key=165438

http://www.norad.no/en/tools-and-publications/publications/publication?key=165438

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organized jointlywith the ILO and theUnitedNationsDevelopment Pro-gramme(UNDP).23

OneimportantimpactofRecommendationNo.127wasontheILO’seffortstostrengthenitsfieldstructurewithregardtosupportingcooperativedevelopmentintheearly1970s.Inordertoreinforcelocaldevelopmentthroughcooperativesand “give practical impact toRecommendationNo.127, the resources of itsRegularBudgetestablishedasystemofregionaladvisersoncooperativedevel-opment for each region;Asia,LatinAmerica,Caribbean,EastAfrica,WestAfricaandArabStates”.24

Inthespiritofthetimes,ILORecommendationNo.127hadconsolidatedthesplittingoftheworldofcooperativesintothreeparts:cooperativesinindustrial-izedeconomies,thoseincentrallyplannedeconomies,andthoseindevelopingcountries.However, following the structural adjustment programmes of theBrettonWoods institutions in the 1980s,25 and with the radical geopolitical changesat theendof thatdecade, thisclassificationwas increasinglycalledintoquestion,aswellasthewaycooperativepromotionshouldbeaddressed.

23 FAO:FAO, the first 40 years(Rome,1985).24 J.Fazzio:“TheILOandcooperatives–Ninetyyearsofpartnershipforamoredecentworldforworkingpeople”,inCOOP News(No.1,2009).

25 For the effects of structural adjustment programmes on cooperative development policies, seethecollectionofarticlesin:B.HarmsandA.Kückelhaus(eds):Co-operative development and adjustment in Anglophone Africa, (Feldafing, Deutsche Stiftung für internationaleEntwicklung,1997).

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2.2. Towards a new Recommendation: Towards a new Recommendation: The story of a participatory processThe story of a participatory process

A. Meeting of experts

Bytheearly1990stheILOhadnotheldanycomprehensivediscussionsoncooperativessincetheadoptionoftheCo-operatives(DevelopingCountries)Recommendation, 1966 (No.127). In view of emerging developments, in1993and1995theILOorganizedtwomeetingsofglobalcooperativeexperts.These meetings were intended to assess developments of relevance to the ILO mandateand,accordingly,todebatetheneedforrevisionandreplacementoftheILORecommendationNo.127byanewinstrument,inwhichcooperativelegislationwouldhavegreaterimportance.26

Themeetingin1993focusedontheanalysisofILORecommendationNo.127,the roleofhuman resourcedevelopment in theeconomicviability,efficientmanagement and democratic control of cooperatives, and the role of coop-eratives in the promotion of employment and income. The 1995 meetinghighlightedcooperative legislation, inparticular the impactof labour laws,industrial relations and international labour standards on cooperatives andcooperativelegislation,aswellastheregulatoryroleoftheState.

Based on the recommendations of thesemeetings of experts, itwas deter-minedthatanewinstrumentshouldbedeveloped,andthatitshouldaddressthefollowingaspects:

26 ILO:Final report: Meeting of experts on cooperatives [cooperative law] (Geneva, 1993);A.Shah (ed): Structural changes in cooperative movements and consequences for cooperative legislation in different regions of the World(Geneva,1993);ILO(ed):The relationship between the state and cooperatives in cooperative legislation (Geneva, 1994); ILO: Cooperative organization and competition law, Report on a round table held at theKolleKolleCentre atVaerlose/Copenhagen (Geneva,1995); ILO:Labour law and cooperatives. Experiences from Argentina, Costa Rica, France, Israel, Italy, Peru, Spain and Turkey (Geneva, 1995); ILO:Meeting of experts on cooperative law[relationshipbetweencooperativelawandlabourlaw],Final Report(Geneva,1996).

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� Universality –Anewstandardshouldincludedevelopedaswellasdevel-opingcountries,becausecooperativesare importantplayers ineconomicand social life and in civil society

� Self-sufficiency –Cooperativesworkbestwhentheyareleastdependentonpublicsupervisionandfinance.

� Identity – Cooperatives are organizations established and managed byworkingpeopleforcleareconomicandsocialpurposes.Althoughthepub-lic authorities have the right and obligation to register and regulate anybusinessenterpriseororganization,cooperatives shouldnotbe regulatedas parastatal entities

� Human resources –Cooperatives requireproperly trainedmembersandelectedexecutiveofficerstoensuretheyhavethebeststandardsofinternalmanagementandthebusinesscapacitytocompeteinopeneconomies.

� Legal framework –Thereshouldbeafavourablelegalenvironmentfortheestablishment and operation of cooperatives as people’s organizations At thesametime,thelawshouldnotbeintendedasameansofpublicutiliza-tion and administration of cooperatives

� Basic values and principles – Cooperatives are a unique form of busi-ness and social organization, guided by certain values and principles.ThesearebestdescribedintheICA’sStatement on the Cooperative Identity andshouldbeduly recognizedby the ILOmemberStates.Theseprinci-plesincludevoluntaryandopenmembership,democraticmembercontrol,member economicparticipation, autonomyand independence, education,trainingandinformation,cooperationamongcooperativesandconcernforthe community.

B. Governing Body decision

Followingthetwomeetingsofexperts,discussionswereheldwiththeILO’ssocial partners, namely employers’ and workers’ representatives, in orderthat the cooperative proposal could be included in the Governing Body’sagenda.Forthispurpose,severalconsultationswereheldwiththePresidentoftheGoverningBodyanditsEmployers’andWorkers’groups.TheCoop-erativeBranchundertookcontinuouslobbyingactivitieswiththeGoverningBodymembersbeforeandduringtheGoverningBodymeetingsin1998and1999.TheBranchworkedcloselywiththeinternalILOunits, includingtheBureau forEmployers’Activities (ACT/EMP) and theBureau forWorkers’

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2. Towards a new Recommendation: The story of a participatory process2. Towards a new Recommendation: The story of a participatory process

Activities(ACTRAV),toreachthesocialpartners.Inaddition,contactswereestablished and technical meetings were held with the International Organi-sationofEmployers(IOE)andtheInternationalConfederationofFreeTradeUnions(ICFTU)toconvinceemployersandworkersabouttheneedforanewstandardoncooperatives.TheICA,whichparticipatedinallexpertmeetings,contacteditsmemberorganizations,particularlythoseindevelopedcountries,andrequestedthemtocontacttheirgovernmentsandaskthemtosupporttheinitiative of a new cooperative standard at the ILO Governing Body meetings TheEmployers’groupintheILOGoverningBodyincludedrepresentativesfromcooperativeenterprises,whowereparticularlycontactedandasked totalktoothermembersoftheGoverningBodyinordertoconvincethemaboutthe proposal

InMarch1999,atits274thSession,theILOGoverningBodydecidedtoplacean item regarding the promotion of cooperatives on the agenda of the 89thand90thSessionsoftheILC,withaviewtoarevisedstandardbeingadoptedin2002.TheGoverningBodyfeltthatthedevelopmentofanew,universallyrecognizedstandardcouldenablecooperativestomorefullydeveloptheirself-help and employment-generating potential and address a number of currentsocio-economicissues,includingunemployment.27

C. The law and practice report of 2000 and the reasons for the revision

Followingtheabove-mentioneddecisionoftheGoverningBody,theCooper-ativeBranchpreparedthefirstlawandpracticereport.Thisreport,producedin2000,presented the reasoning foranddiscussionsabout thenewRecom-mendation.AquestionnairetobesenttotheILOconstituentswasannexedtothereport.ThereportexplainedwhyRecommendationNo.127neededtoberevised.Inparticular,ithighlightedthefollowingissues:

� ThefocusofRecommendationNo.127waslimitedtodevelopingcountries.Universal standardswould better enable cooperatives to address a num-berofcurrentsocio-economicproblems.TheywouldalsobetterreflecttheCooperativePrinciples,asadoptedbytheICA(seebox2).

� Thestatusofcooperativesindevelopingcountrieshadchangedsincethe1960s–theywerenolongerseenastoolsofgovernment.

27 ILO: Report of the Committee on the Promotion of Cooperatives, International LabourConference, 90th Session, Geneva, 2002. Available at http://www.ilo.org/public/english/standards/relm/ilc/ilc90/com-cood.htm

http://www.ilo.org/public/english/standards/relm/ilc/ilc90/com-cood.htm


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� The introduction of themarket economy in former communist countriesleftbehindstateenterprisesthatcarriedthecooperativenamebutdidnotadhere to cooperative principles and structures.

� The economic situation in industrialized countrieswas characterized bychangesinthestructuresofcooperativeenterprisesandtheintroductionofnewformsofcooperatives,aswellasincreasingprivatizationofcoopera-tivesupportservices.

� Recommendation No.127 underemphasized the business orientation ofcooperative enterprises

� Recommendation No.127 did not consider the changing political, eco-nomicandsocialrealities,includingthoserelatedtostructuraladjustmentprogrammes 28

The law and practice report was a compilation of evidence explaining why a new cooperative policy framework was needed and highlighting the potential ofcooperatives.Thereportalsopointedoutprerequisitesforsuccessofcoop-eratives–thesewerepresentedunderthefollowingsubheadings,whichweretakenintoaccountwhenstructuringthenewRecommendation:

� Cooperativeentrepreneurshipandmanagementskills;

� Governmentpolicyandcooperatives;

� Cooperativelegislation;

� Cooperativesupportservices;

� Theroleofthesocialpartners;

� Structuralchangewithincooperatives;and

� International cooperation

In conclusion, the law and practice report proposed that RecommendationNo.127 be revised to provide an appropriate framework for the promotionof cooperatives in the 21st century. That framework should be universal inits application, emphasize the position of cooperatives as privately owned

28 ILO:Promotion of Cooperatives,ReportV(1),InternationalLabourConference,89thSession,Geneva,2001.

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member-controlledorganizationsandrecognizetheneedforthemtofunctionwithinacompetitiveenvironmentandtosustaintheir identity,havingadis-tinctive role as economic enterprises and within civil society 29

Box 2: Cooperative principles

• Voluntary and open membership• Democratic member control• Member economic participation• Autonomy and independence• Education, training and information• Cooperation among cooperatives• Concern for community

Source: ICA (http://ica.coop/en/whats-co-op/co-operative-identity-values-principles)

D. Member State questionnaire

AquestionnairewassenttogovernmentsofILOmemberStatestobereturnedtotheILOby1June2000.Inaccordancewitharticle12,paragraph3oftheILOConstitutionandarticle39oftheStandingOrdersoftheILC,Governmentmembersareinvitedtoconsultthemostrepresentativeemployers’andwork-ers’ organizations as well as cooperative organizations 30 The questionnaireaddressedthefollowingissues:

� Formoftheinternationalinstrument: Whetheranewinternationalinstru-mentoncooperativeswasneededand,ifso,whetheritshouldtaketheformofaRecommendation.

� Preamble:Whethertheinstrumentshouldincludeapreamblereferringtocertain labour standards.

� Objective, scope and definition:Whether the instrument should seek topromotethepotentialofcooperatives;whetheritshouldapplytoalltypesandformsofcooperativesinallsectors;whetheritshouldincludeadefini-tionofcooperatives,orwhetheritshouldbelefttonationallaws;whetherthe instrument should encourage strengthening of cooperative identityonthebasisofcooperativeprinciples;andwhethertheinstrumentshouldencouragemeasuresenablingcooperativestorespondtotheneedsofdis-advantaged groups.

29 ibid 30 ibid

http://ica.coop/en/whats-co-op/co-operative-identity-values-principles

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� The roles of governments, employers’ and workers’ organizations andcooperative organizations and the relationships between them:Whethercooperative organizations should be invited to establish an active part-nership with employers’ and workers’ organizations and development agencieswiththeaimofcreatingafavourableclimateforthedevelopmentof cooperatives

� The policy framework for cooperatives:Whether the instrument shouldrecommend the promotion of voluntary and independent cooperatives asoneoftheobjectivesofnationaleconomicandsocialdevelopment;whethercooperativesandotherenterprisesorsocialorganizationsshouldbetreatedonequalterms;andthetypesofmeasurethatshouldbeincludedinmemberStates’policies.Measuresfor implementingpoliciesfor thepromotionofcooperatives(including:(a)legislationand(b)theestablishmentofsupportservicesforcooperatives).

� Internationalcooperation:Whethertheinstrumentshouldrecommendthatmemberstakeappropriatemeasurestofacilitateinternationalcooperation.

E. Drafting of the Recommendation

TheOfficereceivedrepliesfromatotalof99memberStates,withthemajor-ity of replies suggesting that the new instrument should take the formof aRecommendation.Thiswouldnotbeopen toratification,butwouldprovideguidanceonpolicy,legislationandpracticeforILOmemberStates.Itwouldensureflexibilityandthepossibilityofadaptationtodifferentlocalconditionsandcircumstances.TheOfficethenpreparedthefirstdraftRecommendation,takingintoaccounttherepliesreceivedfromthememberStates.

F. The 2001 ILC debate and the revised Recommendation

TheCommitteeonthePromotionofCooperativeswassetupbytheILCatitsfirstsittingon6June2001.TheCommitteewasoriginallycomposedof173members (80Governmentmembers, 35 Employermembers and 58Workermembers).ThecompositionoftheCommitteewasmodifiedseveraltimesdur-ing the Session

TheEmployers’groupagreedwiththereasonsforreplacingRecommendationNo.127.Itconsideredthatcooperativesshouldnotbetreatedmorefavourablythanotherformsofenterprise.Thereshouldbealevelplayingfieldandthisshouldfeatureinthenewinstrument.Althoughtherewasclearlystillaroletobeplayedbygovernments,thelevelofpresenceforeseeninRecommendationNo.127wasnolongerappropriate.

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TheWorkers’groupconsidered that thenewinstrumentshoulddealwithanumber of questions of principle.Most importantly the instrument shouldbe truly universal, covering all countries, since the cooperative form ofenterprisecouldbehelpful in societyacrossall levelsofdevelopment.Theinstrumentshould“nottrytofixwhatwasnotbroken”,anditshouldincor-poratethoseelementsofRecommendationNo.127thatwerestillvalid.Theinstrumentshouldalsopromotetheapplicationofbestpracticelabourstand-ards in cooperatives

Twenty-two government representatives expressed their opinions about theneedforanewinstrument,pointingoutthatitshouldbeuniversal,viableandflexible.Theneedtominimizetheregulatoryroleofgovernmentwasempha-sized.CooperativedevelopmentexperiencesfromtheCaribbeanandAfricancountriesweresummarized,highlightingtheroleofcooperativesinemploy-mentcreationandpoverty reduction.The importanceofequal treatmentofcooperatives was also highlighted

TheICArepresentativesparticipatingintheCommitteemeetingasobserversconsidered that four basic but fundamental points should be considered bytheCommittee.First,thedefinitionshouldrefertotheICA’sStatement on the Cooperative Identity,asitclearlynotedtheautonomousnatureofcooperativesanddefinedcooperativevaluesandprinciplesandtheroleofcooperativesinpromotingeconomic,socialandculturaldevelopment.Second,theautonomyofcooperativesmustbeguaranteed.Inthisregard,theroleofgovernmentistocreate and maintain an enabling environment for cooperative development and notnecessarilytopromotecooperatives,asthatmightgivetooactivearoletogovernment.Third,cooperativesshouldhaverealequalitywithothertypesofassociationsandenterprises.Finally,cooperativesshouldbeforeveryoneandshouldnotbelimitedtospecificgroupsofpeopleorsectorsoftheeconomy.

In response to theGovernment group, theWorkers’ groupnoted that thereseemedtobeabroadconsensusontheneedforanewuniversalstandard,onthe importanceofcooperativeautonomyandindependence,andontheroleofcooperativesindevelopment.Therealsoseemedtobestrongsupportforapplyinginternationallabourstandardstocooperatives,aswellasaconsensusthatcooperativesshouldnotbethesubjectofdiscriminationandthatspecialmeasuresshouldbetakentosupportcooperativedevelopment.TheWorkers’groupaddedthattheICAprincipleswouldneedtobetakenintoaccountintheCommittee’sdiscussion.31

31 ILO: Provisional record, International Labour Conference, 89th Session, Geneva, 2001.Available at http://www.ilo.org/public/english/standards/relm/ilc/ilc89/pdf/pr-18.pdf

http://www.ilo.org/public/english/standards/relm/ilc/ilc89/pdf/pr-18.pdf

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TheEmployers’groupstressedtheimportanceofasimple,flexibleandwork-ableinstrumentandhadbeenencouragedbythefactthatmostGovernmentmembersseemedtoprefer that thenewinstrument take theformofaRec-ommendation.Theproposedconclusions,whichincludedthattheformoftheinstrumentshouldbeaRecommendation,weresenttotheILCforapprovalon21June2001.Afterdiscussion,thereportwasadopted.

G. The debate at the 2002 ILC

Afterthedebateatthe2001ILC,governmentswereinvitedtosend,aftercon-sulting the most representative employers’ and workers’ organizations andnationalcooperativeorganizations,anyamendmentsorcommentson the text,andtoinformtheOfficeonwhethertheyconsideredtheproposedtexttobeasat-isfactorybasisfordiscussionbythe2002Conference.TheOfficereceivedrepliesfrom56memberStatesand,basedonthese,preparedtheseconddraftreport,whichwassubmittedtothe90thSessionoftheILCasReportIV(2B).Onthebasisofthisreportandthediscussionatthe89thSession(2001)oftheILC,asec-onddiscussionentitled“Promotionofcooperatives”washeldattheILCin2002.

TheEmployers’groupstartedbylisting“fiveguidinglights”.First,theinstru-ment should be universal, to ensure itswidest possible acceptance. Second,it should contain simple language and its intentions should be clear. Third,it should not become a charter of workers’ rights and international labourstandards,sincethebodyofexistingILOConventionsandRecommendationsalreadyapplied toworkers incooperatives.Fourth, it shouldnotaccordanyspecial privileges to cooperatives, but rather it shouldpromote a level play-ingfieldonwhichcooperativesandotherformsofbusinesscouldcompeteonequalterms.Fifth,itshouldpromotetheroleofcooperativesinjobcreationandsustainabledevelopment.

TheWorkers’groupindicatedthatthedraftinstrumentneededtoaddressthethreecomponentsofcooperatives:theenterprise,itsmembersanditsworkers.Ontheenterpriseaspect,theinstrumentshoulddealwithissuessuchaslegalandtaxpoliciesandaccountingandauditregulations.Onmembers,itshouldcontainguidanceonissuessuchascooperativevalues,includingautonomyandindependence, democraticmember control,member economic participation,voluntaryandopenmembership,etc.Onworkers,itshouldaddresssuchissuesasdecentwork,internationallabourstandardsandtheILODeclarationonFun-damentalPrinciplesandRightsatWork.Theinstrumentwouldbeunbalancedand inappropriate if it did not address all three components

Twenty-fourgovernmentrepresentativestookthefloortospeakaboutthepro-posedtextandtoaddressthecommentsoftheEmployers’andWorkers’groups.

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ThePresidentoftheICA(theICAparticipatesintheILCandtheGoverningBody as a special observer with the right to speak to any ILO body or at their meetings) said that theproposedRecommendationwasvery important.TheICAhopedthatthenewinstrumentwouldprovidealong-termpolicyreferenceframeworkforILOmemberStates;thatitwouldbeglobalinnatureandscope;thatitwouldhavetheflexibilitynecessarytoaddresstheneedsofalltypesofcooperativesinallsectorsofactivity;andthatitwouldfocusonensuringthatenablingconditionsexistedforcooperativestofunctionandthrive.TheICAconsidered that the internationally recognized definition of cooperatives aswellasthetextofitsStatementontheCooperativeIdentityshouldbeincludedin the instrument.Thiswouldprovideamorecomprehensiveunderstandingofcooperatives.Thestatementhadbeenagreeduponbycooperativesfromawiderangeoftraditionsandsectors,eachhavingspecialneedsandpriorities.Itwasauniversalstatementthatreflectedthediversityofthemovementwhilepinpointing the essence of the cooperative enterprise 32

Concludingthegeneraldiscussion,theChairpersonindicatedthatthereseemedtobeaconsensusthataninstrumentwasnecessary,thatitshouldberesults-ori-ented and that many members had promised to work together to achieve this in a spirit of fair play

Afterthegeneraldiscussionwasconcluded,theCommitteeproceededtoadoptthe proposedRecommendation, paragraph by paragraph, and in its totality.At the endof theCommitteework, theDirector-Generalof the ILOvisitedtheCommitteeandcongratulatedthemembersontheirachievement.Hewasparticularly pleased that the result reflected a truly tripartite effort to reachconsensusbasedonmutualcomprehension.Heconsideredcooperativesaveryeffective instrument for promoting the DecentWork Agenda. Cooperativescouldalsomakeaverypositiveeconomicandsocialcontributiontoglobaliza-tion,giventheiremphasisonparticipation.

TheVice-ChairpersonoftheEmployers’group,inthelastsessionoftheCom-mittee, indicatedthat thediscussionsintheCommitteehadnotalwaysbeeneasy.Hewasthereforegladthataconsensushadbeenreachedonaninstrumentthatwasworkableandcouldbeimplementedacrossgeographical,philosoph-icalandideologicaldivides.Afterlengthydiscussions,particularlyaboutthePreambleand the levelplayingfield, including thephrase“equal treatment”andthewording“nolessfavourable”,theCommitteereachedagoodcompro-mise. The proposedRecommendationwould indeed help to ensure that thebenefitsofglobalizationareshared.

32 ILO:Provisional record,InternationalLabourConference,90thSession,Geneva,2002.

Following this, the Vice-Chairperson of the Workers’ group said that theinstrument highlighted the distinctive social sector, a sector that combinesentrepreneurialspiritwithasocialsoul,andthattheinstrumentwouldmakeatimelyandfittingcontributiontothesearchforsocialjusticeandeconomiceffi-ciency.InthePreamble,hesaid,itlaidsomesignificantfoundationstones.Headded“itquotesthoseringingwordsfromtheDeclarationofPhiladelphiathatproclaimthatlabourisnotacommodity,anditrecognizesthatstrongerformsofhumansolidarityarerequiredatnationalandinternationalleveltoaddresstheequitabledistributionofthebenefitsofglobalization”.33

On20June2002, in its90thsession, the ILCadopted thenewRecommen-dation by an overwhelmingmajority (with 436 votes in favour); only threedelegatesabstained.TheresultisaRecommendationthatrootscooperativesinthewiderframeworkofDecentWorkandsocialdevelopment.

33 ILO: Report of the Committee on the Promotion of Cooperatives, International LabourConference, 90th Session, Geneva, 2002. Available at http://www.ilo.org/public/english/standards/relm/ilc/ilc90/com-cood.htm



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3.3. Implementation and impact Implementation and impact of Recommendation No. 193: of Recommendation No. 193: ILO’s contribution to creating ILO’s contribution to creating a favourable environmenta favourable environment

A. Introduction

PromotionofCooperativesRecommendation,2002(No.193)hashadaninflu-encenotonlyonpolicy and legislation specific to cooperatives, but alsoonwider policies and legislation that apply to cooperatives.However, trackingdirect cause and effect is difficult unless there is detailedknowledgeof theprocessesofreview,revisionandadoptionbehindthesepoliciesandpiecesoflegislation Efforts to track these links are made even more complicated by the multitudeofstakeholdersinvolved.Thesestakeholdersincludenotonlythosespecificallyaddressedby theRecommendation–governmentsandworkers’,employers’ and cooperative organizations – but also development agencies,non-governmentalorganizations,traininginstitutions,socialenterprisesandawide range of other actors Often many different stakeholders are involved in providinginformation,trainingandtechnicalsupportconcerningthedevelop-mentofcooperativeswithinasinglecountry.

Whengoing through this review, it shouldbeborne inmind that thatwhileRecommendationNo.193mayinfluencepolicyandlegislation, thisdoesnotnecessarilytranslateintofullimplementationoftheRecommendation.Despitetherelativelyhighnumberofcountriesreportingreviews,revisionsandnewcooperativelaws,theworkundertakentofullyreflectRecommendationNo.193isincompleteand,eveninthesecountries,furthereffortstodisseminatetheRecommendation,engageincapacitybuildingandprovidetechnicaladvisoryservices are needed

To improveunderstandingof the influenceofRecommendationNo.193andidentifyfurtheractionstopromoteitsimplementation,thisreviewfocusesonpolicyandlegislation,and:

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1. identifiesregionsandcountriesinwhichtherehasbeenareview,revisionoradoptionofcooperativepolicyorlegislation,indicating,wherepossible,whethertheILOplayedaroleinprovidingadvisoryservices;

2. reports on thewide range of capacity-building activities undertaken andthepartnershipsthatareinplace,whichplayanimportantroleinbuildingknowledgeandexpertiseonthecontentandapplicationofRecommenda-tionNo.193;

3 identifiestrendsinimplementation;and

4. drawslessonsforfutureaction.

The new ILO standard on cooperatives began to have an influence severalyearsbeforeitwasadoptedin2002asRecommendationNo.193.Therefore,thereviewtakesintoconsiderationactivitiesgoingbackto1997,aperiodoffiveyearsprior to theadoptionof theRecommendation.This is justifiedbythe fact that inDecember 1996 theUNGeneralAssembly passed a resolu-tion “requesting theSecretary-General to ascertain, in cooperationwith theCommitteeforthePromotionandAdvancementofCooperatives(COPAC),thedesirabilityandfeasibilityofelaboratingUnitedNationsguidelinesaimedatcreatingasupportiveenvironmentforthedevelopmentofcooperatives”.34 In 1997COPACpreparedareportonguidelinesongovernmentpolicyconcern-ingcooperatives.Italsoheldaconsultationmeetingatwhich22cooperativeexpertsreviewedtheinitialworkundertakenandprovidedcommentsandsug-gestions.Theexpertswereprovidedwithaseriesofdocumentstoassisttheirdiscussions, includingtheICAStatement,RecommendationNo.127, theUN Guidelines for Consumer Protection,theCooperative Guidelines of the Inter-nationalRaiffeisenUnionandProposal for a Review of ILO Recommendation No. 127 of 1966. The report of themeeting and the ensuing documents hadan impact on policy and legal reviews of the time and related to the key legal featuresofwhatbecameRecommendationNo.193.Andin2001,beforeRecom-mendationNo.193hadbeenadopted,theUNreleaseddraftguidelinesaimedatcreatingasupportiveenvironmentforthedevelopmentofcooperatives.35

The ICAhas been a partner of the ILO since the foundation of the ILO in1919.Astherepresentativeorganizationofcooperatives,withadirectmem-bershipofover200cooperativeorganizationsinover85countriesaroundtheworld,ICAplayedaspecialroleinthepreparatorystagesofRecommendationNo.193,initsnegotiationthroughitsmembershipandmoredirectlyduringthesessionsoftheILCin2001and2002.ItcontinuedtoplayanimportantroleintheimplementationoftheRecommendationafteritsadoption.Forexample,

34 UN:UnitedNationsResolutionA/RES/51/58,12December1996.35 UN:DocumentA/RES/56/114(A/56/73-E/2001/68;Res/56),2001.

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3. Implementation and impact of Recommendation No. 1933. Implementation and impact of Recommendation No. 193

cooperativepolicyandlegislationfeaturedinanexpertforumatthe2001ICAGeneralAssembly,wheretherevisionofRecommendationNo.127wasspe-cifically discussed. Further, this ICAGeneralAssembly passed a resolutionentitled Cooperative Policy and Legislation,whichspecificallycommittedtheICAtocollaboratingwiththeILOintherevisionofRecommendationNo.127while endorsing the Guidelines for Cooperative Legislation. ItfurthercalledoneachICAmemberorganizationtomakecontactwiththeirgovernmenttoensurethattheyareawareoftheinitiativestakenbytheILOandtheUNwithregardtocooperativesandthattheysupportthefollowing:

1. the definition of a cooperative as “autonomous associations of personsunited voluntarily to meet their common economic, social, and culturalneeds and aspirations through a jointly-owned and democratically-con-trolled enterprise”;

2. therecognitionof theICAcooperativevaluesandprincipleswithspecialemphasisonthefactthatco-operativesareautonomous,self-helporganiza-tionscontrolledbytheirmembers;

3 governmentalpolicies shouldcreateenablingenvironments toenable thegrowth of cooperatives taking into consideration the special character of theco-operativemodelofenterprise,itsgoalsandcontributionstotheeco-nomicandsocialdevelopmentoflocalcommunitiesandcountries;

4. governmentsshouldincollaborationwithcooperativeorganizationsiden-tify and remove obstacles that persist and do not allow cooperatives to competeonarealequalfootingwithotherformsofenterprise.36

This review further includes reported events held immediately prior to theadoptionofRecommendationNo.193 that dealtwith cooperative legislationunder theassumption that thedraftRecommendationwouldpass its seconddebatebytheILCin2002withoutmajorchanges,atleastasfarascooperativepolicy and legislationwere concerned. This includes, for example, the ICAGeneralAssemblyof2001,forwhichtheICAhadpublishedtherevisedversionof the Framework for Cooperative Legislation37 as Guidelines for Cooperative Legislation,38whichtheGeneralAssemblyoftheICAwastoendorse.39With

36 ICA:Cooperative Policy and Legislation,Resolutionadoptedon17October2001bytheICAGeneralAssemblyinSeoul,Korea.

37 OriginallypublishedasCanevas de législation coopérative(Geneva,BIT,1997).InadditiontoanEnglishversiontheOfficeandothershaveproducedversionsinArabic,Chinese,Portuguese,Russian,andSpanish.

38 H.Henrÿ:“GuidelinesforCo-operativeLegislation”,inReview of International Co-operation (2001,Vol.94,No.2),pp.50–105(inSpanish:“Lineamientosparalalegislacióncooperativa”,in Revista de la Cooperación Internacional(2001,Vol.34,No.2),pp.67–152;alsoinTemas 2 de Cooperativismo y Economía Solidaria,Bogotá,AsociaciónColombianadeCooperativas,2005).

39 ICA:Review of International Co-operation(2002,Vol.95,No.1),pp.42ff.(45).

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minorchanges,theseGuidelineswerepublishedbytheILOasasecondeditionof its Guidelines on Cooperative Legislation inEnglishandFrench,in2005and2007,respectively,andin2012theILOreleaseda thirdrevisededition.Thus,notonlydidtheILCintegratethemainpartsoftheICAStatementintoRecommendationNo.193, but the ICA had earlier endorsed a document oncooperativelawwhichtookaccountofthefutureRecommendationNo.193,asfar as policy and legislation are concerned

Finally, this review includes information contained in two previous reportsontheimplementationofRecommendationNo.193.In2006,apaperentitledRec. No 193 on the Promotion of Cooperatives: Activities carried out since its adoption in June 2002waspreparedbytheILOCooperativeBranch,whichinparticularrevieweddisseminationactivities.In2010theILOundertookasur-veyprovidingafirstappreciationoftheimplementationofRecommendationNo.193.The survey report,General Survey concerning employment instru-ments in the light of the 2008 ILO Declaration on Social Justice for a Fair Globalization,40was discussed by theConferenceCommittee on theAppli-cationofStandards,41andwasthensubmittedtothe99thSessionoftheILC,which endorsed it

TheILODeclarationonSocialJusticeforaFairGlobalization42 was adopted bytheGoverningBodyin2008.Ithighlightedthepromotionofemploymentasoneofitsfourstrategicobjectives.ShortlyaftertheCommitteeofExpertsontheApplicationofConventionsandRecommendations(CEACR)prepared the General Survey concerning employment instruments. Thiswas the firsttime themeasures adopted bymember States on the provisions of Recom-mendationNo.193wereexaminedbythesupervisorybodiesoftheILO.ThesurveyquestionnairewassentouttoallILOmemberStatesontheroleofthemostimportantinstrumentsrelatedtoemployment,RecommendationNo.193beingoneofthem.Forthispurpose,thequestionnaire,approvedbytheILOGoverning Body, encouragedmember States to provide information on theestablishmentofpolicyandlegalframeworksfavourable to thedevelopment

40 See ILO:General Survey concerning employment instruments in the light of the 2008 ILO Declaration on Social Justice for a Fair Globalization,Reportof theCommitteeofExpertson the Application of Conventions and Recommendations (articles 19, 22 and 35 of theConstitution),Report III (Part1B), InternationalLabourConference,99thSession,Geneva,2010, paragraphs 437–510. Available at: http://www.ilo.org/ilc/ILCSessions/98thSession/ReportssubmittedtotheConference/WCMS_123390/lang--en/index.htm

41 Available at: http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---normes/documents/publication /wcms_145220 pdf

42 ILO2008: ILO Declaration on Social Justice for a Fair Globalization. InternationalLabourConference,97thSession,Geneva2008.Availableathttp://ilo.org/global/meetings-and-events/campaigns/voices-on-social-justice/WCMS_099766/lang--en/index.htm

http://www.ilo.org/ilc/ILCSessions/98thSession/ReportssubmittedtotheConference/WCMS_123390/lang--en/index.htm

http://www.ilo.org/ilc/ILCSessions/98thSession/ReportssubmittedtotheConference/WCMS_123390/lang--en/index.htm

http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---normes/documents/publication/wcms_145220.pdf

http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---normes/documents/publication/wcms_145220.pdf

http://ilo.org/global/meetings-and-events/campaigns/voices-on-social-justice/WCMS_099766/lang--en/index.htm

http://ilo.org/global/meetings-and-events/campaigns/voices-on-social-justice/WCMS_099766/lang--en/index.htm

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of cooperatives 43 A total of 108 member States responded to the Survey,providing information on the role of cooperatives in the establishment and developmentof income-earningactivitiesandsustainableanddecent jobsinnumerouscountries.

In 2010 the CEACR reconfirmed the importance of the RecommendationNo.193asanemploymentinstrumentprovidingaframeworkforthecreationandmaintenanceofcooperatives,whichcreatejobsandcontributetoincomegeneration.Furthermore,theCEACRemphasisedthedemocraticstructureofcooperatives, as well as the importance of combating pseudo-cooperatives,whicharecreatedfortaxevasionorlabourlawavoidancepurposes.Finally,theCEACRnotedthatpoliciesandprogrammesdesignedtopromotecooper-ativesshouldenhancecooperative-specificmanagement,marketingskillsandgood governance 44

TheCommittee for the RecurrentDiscussion on Employment endorsed theCEACRconclusionsoncooperativesinILC2010.TheCommitteeencouragedthe governments of member States to target their assistance for the creation of decentemploymentandincomeopportunitiesforvulnerableanddisadvantagedgroups,includingthroughcooperatives,SMEsandlabour-intensiveinfrastruc-tureinvestments.Italsoemphasizedimprovedproductivityandsocialprogressthrough enhancing and expanding accessibility of vocational and entrepre-neurshiptraining,especiallyforcooperatives.FortheOffice,theCommitteerecommended that strengthening its work on cooperatives and social economy foremploymentcreationshouldbeamongitspriorities.45

B. International and regional implementation of Recommendation No. 193 through partnerships and instruments

AnumberofkeyelementsofRecommendationNo.193havebeenincludedinotherinternationalandregionalinstrumentsoncooperatives.Thishascreatedamultipliereffect,increasingtheeffectivenessoftheRecommendation.

A major impetus for the implementation of Recommendation No.193 hascomefromthepartnershipsinwhichILOhasbeenengaged,manyofwhichexistedpriortoitsadoption.Thevariouspartners’activitieshaveincludedthe

43 ILO: General Survey concerning employment instruments in the light of the 2008 ILO Declaration on Social Justice for a Fair Globalization,ReportoftheCommitteeofExpertsontheApplicationofConventionsandRecommendations(articles19,22and35oftheConstitution),ReportIII(Part1B),InternationalLabourConference,99thSession,Geneva,2010

44 Ibid 45 ILO.2010.Report of the Committee for the Recurrent Discussion on Employment, ProvisionalRecordNo.18,InternationalLabourConference,99thSession,Geneva,2010.

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disseminationof theRecommendation throughawareness raisingand/or theintegrationofthekeyelementsoftheRecommendationNo.193intotheirownpolicystatementsandinstruments,andalsoitsimplementationthroughcapac-ity-buildingactivities,includingtechnicaladvisoryservices.

ICAmemberorganizationsfromanumberofcountrieswereincludedinthedelegationsofILOconstituents–governmentsandworkers’andemployers’organizations–atthe2001and2002ILCs,wheretheyplayedadirectrolenotonlyinthedraftingofRecommendationNo.193,butalsoinitsimplementationafter adoption

Moreover,theILOandICAsignedaMemorandumofUnderstanding(MoU)inFebruary2004tofurtherstrengthentheirexistingpartnership.TheMoUmadeaspecialreferencetothepromotionandimplementationofRecommendationNo.193.TheDirector-GeneraloftheILOandthePresidentoftheICAstartedtomeetregularly(onceayear)from2004onwardstodiscusstheimplemen-tationresultsoftheMoUaswellastheimpactoftheRecommendationontheICAmemberorganizations.In2007,duringameetingtoreviewprogressontheimplementationoftheMoU,thepartiesfurtheragreedtoconcentratetheirjointeffortsonfourareas,oneofwhichwascooperativepolicyandlegislation.

ManyICAinitiatives,atbothglobalandregionallevels,relatespecificallytopolicyand legislation, including resolutions,declarations,policydocuments,capacity building and technical advice. The ICA’s regionalministerial con-ferences held in Africa, in Asia-Pacific and in the ICA Americas regionalmeetingsofcooperativeparliamentariansestablishedin2003andthenetworkof cooperativepromotional, regulatoryand supervisoryorganizations estab-lishedin2007allspecificallyaddressedRecommendationNo.193,resultinginanumberofcommitmentsanddeclarationsbyministerswithresponsibilitiesforcooperativesandbyparliamentarians.Inaddition,theICAhasenteredintoagreements with other institutions to implement Recommendation No.193,includingtheMay2012agreementbetweenICAAmericasandtheLatinAmer-icanParliament(Parlatino),inwhichbothpartiesreaffirmtheimportanceofRecommendationNo.193andcommittoitsapplicationandevaluation.46

ICAalsoestablishedaGlobalLegislativeWorkingGroupinthe1990s.In2001this was transformed into a LegislativeWorking Group of the ICA Board,

46 Acuerdo de Cooperación entre El Parlamento Latinoamericano (PARLATINO) y la Alianza Cooperativa Internacional para las Américas (ACI-Américas), 29 May 2012, paragraph7.2, “Reafirmar la importancia de laRecomendación 193 de laOIT sobrePromoción de lasCooperativas incidiendo en su efectiva aplicación y evaluación de las políticas públicas – anivelnacional,regionalylocal–queenesemarcoseinstrumenten”.Availableat:http://www.aciamericas.coop/IMG/pdf/convenio_parlatino-aci_americas.pdf

http://www.aciamericas.coop/IMG/pdf/convenio_parlatino-aci_americas.pdf

http://www.aciamericas.coop/IMG/pdf/convenio_parlatino-aci_americas.pdf

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whichbroughttogethercooperativeleadersandexpertsincooperativelegis-lation.In2012theICAestablishedacooperativelawcommittee,accordingtoarticle30ofitsstatutes.

TheILO’spositionasafoundermemberofCOPAC,whichhassupporteditscooperativepromotionanddevelopmentactivitiessince1968,hasalsohadanimpacton the implementationofRecommendationNo.193.Since itsofficialfoundationin1971,COPAChasbroughttogetherthemajorinternationalactorsin the promotion of cooperatives as members or associates It also was key to establishing the Guidelines on Cooperative Legislation,whichincludespe-cificreferenceandrecommendationsregardingpolicyandlegislation.ILOwasabletoincludeissuesofcooperativepolicyandlegislationontheagendasofCOPAC’smeetings and integrate these in the events organized byCOPAC,suchasexpertmeetingsorganizedindividuallyandincollaborationwiththeUN,andmeetingsof cooperativedevelopment agenciesheld in2003,2004,2005,2006and2010,wherepolicyandlegislationwerediscussed.

In addition, COPACmembers individually and jointly also played roles inimplementingRecommendationNo.193.Duringtheperiodunderreview,thefollowingorganizationsweremembersorcollaboratorsofCOPACascooper-ativedevelopmentpartnersof the ILOCooperativeBranchand tookpart inpromotingtheRecommendation:

� FoodandAgricultureOrganizationoftheUnitedNations;

� InternationalCo-operativeAllianceanditsfederations;

� InternationalFederationofAgriculturalProducers;

� InternationalCooperativeandMutualInsuranceFederation;

� InternationalUnionofFood,Agricultural,Hotel,Restaurant,Catering,TobaccoandAlliedWorkers’Associations;

� SwedishCooperativeCentre;

� WorldCouncilofCreditUnions;

� UnitedNations;

� Co-operativeCollege,UK;

� GermanCooperativeandRaiffeisenConfederation,Germany;

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� LegaNazionaledelleCooperativeeMutue,Italy;

� CanadianCooperativeAssociation;and

� OverseasCooperativeDevelopmentCouncil,USA.

In2015,COPACmembershipconsistsofILO,FAO,ICA,theUNandtheWorldFarmers’Organization(WFO).

AnumberofinitiativesthatCOPACmembersundertookareworthyofmen-tion.Theseallincludedspecificreferencestopolicyandlegislativereviewsintheirownreports,meetings,resolutionsandpolicydocuments,eitherechoingRecommendationNo.193orspecificallycitingtheinstrument.

The UN mobilized support for the implementation of RecommendationNo.193, creating awareness, building knowledge and capacity and takingpolicy decisions on cooperative legal policies These actions had an impact notonlyontheUNmemberStates,butalsoonothercooperativestakehold-ers.Forexample,startingin1996,theUNadoptedanumberofresolutionsoncooperativesthatcallongovernmentsto“keepunderreview,asappropriate,the legal and administrative provisions governing the activities of coopera-tives”.47Inaddition,aspartofthepreparationanddisseminationofthe2001UNGuidelinesaimedatcreatingasupportiveenvironmentforthedevelop-mentofcooperatives,anumberofexpertgroupmeetingswereheldwhichfeaturedpolicyandlegislationontheagenda.TheUNGuidelinesincluderel-evantelementsofRecommendationNo.193andhavebeencitedasthebasisforreviewingandrevisingcooperative legislation,especiallyfollowingthedeclarationoftheUNInternationalYearofCooperatives2012(IYC)in2009.TheIYCdeclarationincludedtheestablishmentofappropriatepolicyasoneofitsaims;morespecifically,it“encourage[s]Governmentsandregulatorybodies to establish policies, laws and regulation conducive to cooperativeformation andgrowth”.48Anumberof countries report havingundertakenrevisions of their policy and legislation as part of their observance of theIYC.

ThepartnershipbetweenILOandFAOhasbeen,andcontinuestobe,anave-nuefortheimplementationofRecommendationNo.193.TheILO–FAOMoUsignedin2004specificallysetsoutpolicycoherenceandpromotingcoherent

47 See:A/RES/51/58of12December1996;A/RES/56/1143of19December2001;A/RES/58/131of 22December 2003;A/RES/60/132of 16December 2005;A/RES/62/128of 18December2007;A/RES/64/136of19December2009.

48 http://social.un.org/coopsyear/objectives-of-the-year.html

http://social.un.org/coopsyear/objectives-of-the-year.html

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normativeinstrumentsinitsobjectivesandmentionsjointactionconcerningcooperatives as one of the areas of collaboration 49

Cooperative organizations involved in cooperative development outside oftheirowncountriesalsoplayedanimportantroleinpromotingandimplement-ingRecommendationNo.193,ofteninpartnershipwiththeILO.Forexample,the German Cooperative and Raiffeisen Confederation (DGRV) partneredwith the ILO in implementing the Recommendation No.193 in Africa andtheAsia-Pacificregion,whiletheSwedishCooperativeCentresupportedICAinitiatives,particularlyintheAmericasandinAfrica,toimplementRecom-mendationNo.193throughpolicyandlegislativereform.TheILOalsoenteredintoanMoUin2007withoneofthenationalcooperativeorganizationsinItaly,LegaNazionaledelleCooperativeeMutue(Legacoop),whichis involvedinnationalandinternationalcooperativedevelopment.TheMoUspecificallysetsout collaboration on the implementation ofRecommendationNo.193.50 The guidelinespreparedbyagroupofAmericancooperativesoncooperativelegalreform,CLARITY,alsousedRecommendationNo.193asabasis.51

OthernoteworthyregionalinstrumentssupporttheimplementationofRecom-mendationNo.193intheareaofpolicyandlegislation,aredescribedbelowasperregion:

Africa

TheOrganisationpourl’HarmonisationenAfriqueduDroitdesAffaires(orOrganisation for the Harmonisation of Business Law in Africa; OHADA)adoptedauniformcooperativelawin2010(Acte uniforme relatif aux sociétés coopératives)forits17memberStatesinWestandCentralAfrica.52 The ILO supportedtheideaoftheelaborationofsuchauniformactaspartofthebusi-ness laws ofOHADA since 1997,when the ideawas first discussed on theoccasionofacooperativelawreformactinBurkinaFaso.

InadditiontotheILO,anumberofinternationalorganizations,includingtheICAandsomecooperativemovementsfromtheNorth,steppedinandplayedadecisiveroleincreatinganewgenerationofcooperativelaws.The1995ICA

49 http://www.fao-ilo.org/fileadmin/user_upload/fao_ilo/pdf/ILO_FAO_MoU_2004.pdf 50 Protocollodiintesatral’OrganizzazioneInternazionaledelLavoroelaLegaNazionaledelleCooperativeeMutue,4July2007.

51 CLARITY:Enabling cooperative development: Principles for legal reform (USAID,2006).52 OHADAmemberStates include:Benin,BurkinaFaso,Cameroon,CentralAfricanRepublic,Chad, the Comoros, the Congo, Côte d’Ivoire, Equatorial Guinea, Gabon, Guinea, GuineaBissau,Mali,Niger,SenegalandTogo.

http://www.fao-ilo.org/fileadmin/user_upload/fao_ilo/pdf/ILO_FAO_MoU_2004.pdf

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Statement on the Cooperative IdentityandRecommendationNo.193hadcata-lysing effects on efforts to change the relationship between government and the cooperative sector and the concomitant new legislative framework The ILO’s CooperativeBranchassistedanumberofnationalgovernmentsinformulatingmodern,comprehensivecooperativedevelopmentpolicies.53

Several workshops were organized in partnership with the ICA RegionalOfficeandtheAfricanRegionalOrganizationofICFTUtopromotetheRec-ommendationNo.193inAfricancountriesbetween2003and2012.TheILO’sCOOPAFRICA programme used the Recommendation No.193 extensively toimprovepolicyandthelegalenvironmentforcooperativesinsevencountriesinEasternandSouthernbetween2007and2012.

To build capacities among different groups of workers and entrepreneurs,includingthoseintheinformaleconomy,RecommendationNo.193wasusedextensively during the implementation of several other technical cooper-ationprogrammes.Between2004and2006, the ILO,with the ICAand theICFTU,implementedtheSYNDICOOPprogramme.Thisprogrammeaimedtostrengthenthecapacityoftradeunionsandcooperativestoworktogetherto organize workers in the informal economy to improve their working condi-tions.Itwasfirstlaunchedwithco-fundingfromtheNetherlandsinEastAfrica(2004–2006)andwaslaterreplicatedinSouthAfricawithco-fundingfromtheFlemishRegionalGovernment.54

TheAfricanUnionalsoreferredtoRecommendationNo.193initsworkonpoverty reduction and sustainable development. At its summit in Ouaga-dougou in 2004, the African Union explicitly mentioned the developmentof cooperatives as akey requirement for poverty reduction and sustainable development 55

RecommendationNo.193hasalsobeenusedby theICARegionalOffice inAfrica and other cooperative development partners of the ILO when imple-menting programmes on capacity building, advocacy and networking forcooperativesintheregion.OneexamplewastheEnablingEnvironmentPro-ject,fundedbytheCanadianCooperativeAssociation,whichaimedtoimprovethepolicyandlegalenvironmentforcooperativedevelopmentinEastern,Cen-tralandSouthernAfrica.56

53 P.Develtere,I.Pollet.I.andF.Wanyama(eds):Cooperating out of poverty: Renaissance of the African cooperatives in the 21st Century(Geneva,ILO,2008).

54 I. Pollet:Cooperatives in Africa: The age of reconstruction - synthesis of a survey in nine African countries,CoopAFRICAWorkingPaperNo.7(DaresSalaam,ILO,2009).

55 ibid 56 ibid

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AspecialreferencetoRecommendationNo.193wasmadeintheSouthAfricanCooperativeAmendmentActof2013,whichisalignedwithRecommendationNo.193,supportedbytheSouthAfricanGovernment.57

Americas

TheFrameworkLawonCooperativesinLatinAmerica(Ley marco para las cooperativas de America Latina)providespolicy-makerswithageneralizedcooperativelawthatcoversalltypesofcooperativesandcanbeusedforguid-anceforupdatingnationallaws.58Itcontains102articlesandisorganizedintochapters,beginningwithgeneralprovisions,rulesonstatutes,members,eco-nomicset-up,socialbodiesandcooperativeintegrationaswellasdissolutionand liquidation. The framework includes chapters that specifically addresspublicauthoritiesresponsiblefortheoversightofcooperativesaswellascoop-erativepublicpolicy.TheILOwasrepresentedonthecommissionestablishedbyICAAmericastoupdatetheoriginal1988frameworklaw.Afterawidecon-sultationprocess,involvingparliamentariansandgovernmentrepresentatives,anewversionwasendorsedin2008bycooperativesoftheregion.

Asia and the Pacific

In 2003, a regionalworkshopwas organized in Singapore at the request ofand inpartnershipwith ICFTU-APRO (AsiaPacificRegionalOrganization)fortradeunionandcooperativerepresentativesfromAsia-Pacific.Inpartner-shipwith the ICARegionalOffice forAsiaand thePacific inNewDelhi,atwo-dayregionalworkshopwasorganized in2004 inBangkok,Thailand todiscuss Recommendation No.193 and its implementation. Twenty-five par-ticipants from government and cooperative organizations from several Asian countriesattendedtheworkshop.TheRecommendationwaspresentedatsev-eralmeetingsheldintheAsia-Pacificregionbetween2003and2010,inIndia(ICAMinisterialConference),Thailand(ICARegionalAssembly),Indonesiain2005,thePhilippines,Mongolia,VietnamandSriLanka.

Europe

European Council Regulation No.1435/2003 establishes a legal statute for a European Cooperative Society (SCE), which makes a reference to

57 Preamble to the South African Cooperative Amendment Act, 2013, Government Gazette, 5August2013.

58 Availableat:http://www.aciamericas.coop/IMG/pdf/LeyMarcoAL.pdf

http://www.aciamericas.coop/IMG/pdf/LeyMarcoAL.pdf

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Recommendation No.193. An SCE may be established by natural personsresiding in or by legal entities established in at least two different EU Member States 59ThepurposeoftheRegulationistoguaranteeequaltermsofcompeti-tionbetweencooperativesocietiesandcapitalcompanies.Italsocontributestothedevelopmentofcross-borderactivitiesbycooperativesocieties.The2004CommunicationfromtheCommissiontotheCouncilandtheEuropeanPar-liament,theEuropeanEconomicandSocialCommitteeandtheCommitteeoftheRegionsonthepromotionofcooperativesocietiesinEuropesuggestwaysinwhichthewiderpromotionofcooperativesacrossEuropemaybeencour-aged.In2012,theEuropeanParliamentadoptedaresolutionontheStatuteforaEuropeanCooperativeSocietywithregardtotheinvolvementofemployees,whichalsomakesareferencetoRecommendationNo.193.

C. National implementation: Review, revision and adoption of cooperative laws and policies

Intheperiodfrom1997to2014,RecommendationNo.193helpedinthereview,modificationorinitiationofnewcooperativelawsandpoliciesin97(52.4percent)of the185ILOmemberStates.Ifonlytheperiodafter theadoptionoftheRecommendationisconsidered,thenumberstillreaches86countries.ThedifferencerelatesmoretothewaythatpoliciesandlawsareformulatedandlesstoRecommendationNo.193inparticular.TheILOandotherstakehold-ers continue to carry out activities supporting policy and legislative reforminmany countries. For example, inSouthAfrica,RecommendationNo.193hasinfluencedchangesinlawandpoliciesovermanyyears.Initialadvisoryserviceswereprovidedby the ILO in2004and furtheractivitieshavebeenundertaken nearly on a yearly basis. These activities have covered variousaspects of cooperative legislation and policy, such as determination ofwhocanbeamemberofacooperative (legalvs.moralpersons), taxation issues,andmodificationof legislation toallow fornew formsofcooperativesor toprovideclarificationofthelabourrelationsofworker-membersinworkercoop-eratives(the“boguscooperative”issue).SouthAfricaisnottheonlycountrywherecooperativelawandpolicyreformhasbenefittedfrommultipleactivities(capacitybuilding,technicaladvice,independentreviews,etc.)overtheyears.Mexico,Paraguay,Peru,Poland,Romania, Serbia, Swaziland,Trinidad andTobago,Turkey,UgandaandVanuatuareamongthecountrieswheretheILOhasbeenparticularlyinvolved.Oftenchangestoexistingpoliciesandlawsaremade incrementally and over time in response to both political and adminis-trative constraints

59 See: http://europa.eu/legislation_summaries/employment_and_social_policy/social_dialogue/l26018_en.htm

http://europa.eu/legislation_summaries/employment_and_social_policy/social_dialogue/l26018_en.htm

http://europa.eu/legislation_summaries/employment_and_social_policy/social_dialogue/l26018_en.htm

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Chart 1Chart 1 Policy and legislation influenced by Recommendation No. 193 by region during the period 1997–2014

Europe & Central Asia21% Africa

38%

Americas20%

Arab States4%

Asia-Paci�c17%

List of countries by region with policy and legislation influenced by Recommendation No. 193 during the period 2002-201

Africa Americas Arab States Asia-Pacific Europe and Central Asia

Benin* Argentina Jordan* Australia Belgium*

Burkina Faso* Bolivia* Lebanon* Bangladesh* Bosnia-Herzegovina*

Burundi* Brazil* OPT* Bhutan* Bulgaria

Cameroon* Canada Cambodia* Croatia*

Central African Rep Colombia* China* Czech Republic

Chad* Costa Rica* Fiji* Georgia

Comoros Ecuador India* Greece*

Congo* El Salvador Indonesia* Hungary*

Dem Rep of Congo* Haiti* Japan Kyrgyzstan*

Côte d’Ivoire Honduras Laos* Moldova*

Egypt* Mexico* Malaysia Norway*

Equatorial Guinea Paraguay* Mongolia* Poland

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Africa Americas Arab States Asia-Pacific Europe and Central Asia

Ethiopia* Peru* Philippines* Romania*

Gabon Trinidad & Tobago* Thailand Russian Federation

Ghana Uruguay Vanuatu* Serbia*

Guinea* Vietnam* Slovakia

Guinea-Bissau* Sri Lanka Tajikistan*

Kenya* Turkey

Lesotho* Ukraine

Liberia

Mali

Malawi

Mauritius*

Morocco*

Mozambique*

Namibia*

Niger

Nigeria*

Rwanda

Sao Tome & Principe

Senegal

Sierra Leone

South Africa*

South Sudan*

Swaziland*

Tanzania*

Togo

Uganda*

Zambia*

Zimbabwe*

* Countries in which the ILO provided advisory services

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TheILOwasactiveinthemajorityofcountriesthathavebenefittedfromtheimplementationofRecommendationNo.193.Ithasprovidedtechnicaladvi-sory services at the national level – including assistance in policy and lawformulation,evaluationandcommentaries,andcapacitybuildingintheformofseminarsandworkshops.Ithasalsoconductedregionalcapacity-buildingactivities,creatingawareness,promotingunderstandingofthecontentofRec-ommendationNo.193andbuildingknowledgeandexpertise.Inanumberofcountries,theILO’spartnershipwiththecooperativemovementenabledjointactivitiestobeundertaken.TheparticularlysignificantroleoftheICAinthiscontextshouldberecognized.

Therearemanyothercountrieswherecooperativepoliciesandlawsareintheprocessofrevieworhavebeenreviewed,revisedoradopted.Althoughno specific evidence links these initiatives specifically to the implemen-tation of Recommendation No.193, some cite other policy documents ashavinginfluencedtheirprocesses.TheseincludetheUNGuidelinesaimedat creating a supportive environment for the development of cooperatives,theFrameworkLawonCooperatives inLatinAmerica, theOHADAUni-formActonCooperatives,andtheresolutiondeclaringtheUNInternationalYearofCooperatives.ThesepolicydocumentsrefertothekeylegalfeaturesofRecommendationNo.193, and therefore it has alsohad an influenceoncooperative policy and legislation in countries such as Antigua and Bar-buda, Bahamas, theDominican Republic, Republic ofKorea, Philippines,St. Vincent and the Grenadines, United Kingdom and the United States.If thesecountrieswere included in thecount, theoverallnumberofcoun-tries inwhichRecommendationNo.193has been implementedwould rise to115.

D. International, regional and national capacity building

A total of 108 global and regional capacity-building events related to theimplementationofRecommendationNo.193andconcerningcooperativepol-icyandlawhavebeenidentifiedfortheperiodbetween1996and2002.Theimpactoftheseeventsintermsofbuildingupthecapacityofnationalstake-holdersisdifficulttomeasurewithinthescopeofthisreview.However,andaselaboratedfurtherbelow,thecommitmentofmajorcooperativestakeholdersinthepromotionofRecommendationNo.193indicatesasignificantimpactonits national implementation across regions

TheactivitiesreportedundercapacitybuildingshouldbeunderstoodinthewidersenseofsharingknowledgeandbuildingexpertiseonthecontentandapplicationoftheRecommendation.Theseactivitiesincludetechnicalsemi-narsandtrainingcourses,conferencesandworkshops,andmulti-stakeholder

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meetings,alldealingwithcooperativepolicyand/orlegislationandtheimple-mentationofRecommendationNo.193.

Theanalysisofcapacity-buildingeventsrevealsthattheILOandtheICAwerethemainpromotersofRecommendationNo.193inAfrica.IntheAmericas,promotion was more balanced between the different stakeholders, while inAsiaandthePacifictherewasstrongICAcollaborationwithgovernments.InEuropeandCentralAsia,nationalandregionalcooperativeorganizationswerethemainbodiesinvolvedincapacity-buildingactivities,butothercooperativestakeholders,suchasILOsocialpartners(regionalandnationalemployers’andworkers’organizations),universitiesandresearchcentres,werealsoinvolved,among which ILO social partners played an important role

Chart 2Chart 2 International capacity-building events by stakeholder

Jointly organized44%

ILO16%

ICA17%

Government6%

Cooperativeorganizations

10%

Others8%

It is also useful to highlight the different types of stakeholders that wereinvolvedinthepromotionofRecommendationNo.193throughtheorganiza-tion of capacity-building events.As pointed out above, inAsia andAfrica,regionalorganizationsofemployers’andworkers’Organizations, ITUCandIOEplayedanimportantroleinpromotingtheRecommendationamongtheirmember organizations, and they also used the Recommendation in capaci-ty-buildingactivitiesrelatedtocooperativesfortheirmembers.

EventsorganizedsolelybytheILOprimarilytooktheformoftrainingcoursesorworkshopsoncooperativepolicyandlegislation.Theseincludetrainingcourses

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organizedattheILO’sInternationalTrainingCentreatTurin(bothinFrenchandEnglish)since2003,aswellasthoseorganizedbyCOOPAFRICA,anILOCooper-ative Branch regional technical cooperation programme and the ILO Academy onSustainableEnterpriseDevelopment.OtherILOeventswithacooperativepolicyandlawcomponentweremostlyinter-regionalresearchconferences.

Activities undertaken by the ICA to promote Recommendation No.193includedengaging indiscussionsoncooperativepolicyand lawduringcon-ferencesandassembliesorganizedattheglobalandregionallevels,includingduring its statutory meetings (general and regional assemblies) since 2001.VariousmeetingsoftheglobalcooperativelegislationcommitteeoftheICA,meetingsofministersinchargeofcooperativesheldinAfricaandAsia-PacificandmeetingsofnetworksofparliamentariansandpromotionalinstitutionsintheAmericasregionalsoallspecificallyaddressedRecommendationNo.193and its application

Box 3: Selected ICA meetings with policy-makers addressing policy and law

ICA African Ministerial Conferences8th Ministerial Conference, Maseru (Lesotho), 2005 9th Ministerial Conference, Nairobi (Kenya), 2009 10th Ministerial Conference, Kigali (Rwanda), 201260

ICA Asia-Pacific Ministerial Conferences7th Ministerial Conference, New Delhi (India), 2004 8th Ministerial Conference, Kuala Lumpur (Malaysia), 200761

9th Ministerial Conference, Bangkok (Thailand), 201262

ICA Americas Encuentro de Parlamentarios Latinoamericanos (Meeting of Latin American Parliamentarians) 63

I Encuentro: Declaración Puerto Rico 2003II Encuentro: Declaración Argentina 2004III Encuentro: Declaración México 2005IV Encuentro: Declaración Perú 2006V Encuentro: Declaración San José 2008VI Encuentro: Declaración Buenos Aires 2010VII Encuentro: Declaración de Panamá 2012

60616263

60 See: http://api.ning.com/files/BqP6Z2gyvdpA3pLSNe0mn*7qewhIG*hX-Y0NG7awBBGJbtv8 yVj*D-slLh27LIB5WD-DKZ-HhTsJSKRCSU9yTHzx*p-a7cEc/10th_Min_Conference_Recommendations_and_resolutions_1_.pdf

61 See:http://ica-ap.coop/icanews/recommendations-8th-ministers’-conference-malaysia62 See:http://www.cpd.go.th/cpd/cmconference/download/110455/Joint_Declaration_of_the_9th_Ministers_conference.pdf

63 See:http://www.aciamericas.coop/IMG/pdf/sistematizacionencuentrosparlamentarios.pdf

http://api.ning.com/files/BqP6Z2gyvdpA3pLSNe0mn%2A7qewhIG%2AhX-Y0NG7awBBGJbtv8%20yVj%2AD-slLh27LIB5WD-DKZ-HhTsJSKRCSU9yTHzx%2Ap-a7cEc/10th_Min_Conference_Recommendations_and_resolutions_1_.pdf



http://ica-ap.coop/icanews/recommendations-8th-ministers%E2%80%99-conference-malaysia

http://www.cpd.go.th/cpd/cmconference/download/110455/Joint_Declaration_of_the_9th_Ministers_conference.pdf

http://www.cpd.go.th/cpd/cmconference/download/110455/Joint_Declaration_of_the_9th_Ministers_conference.pdf

http://www.aciamericas.coop/IMG/pdf/sistematizacionencuentrosparlamentarios.pdf

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Themajorityoftheinternationalcapacity-buildingeventswerejointlyorgan-izedbycooperativestakeholders,halfofwhichwereorganizedby the ILOandtheICAthroughCOPACactivities.TheseincludeCOPACannualboardmeetings(since2003)andglobalandregionalmeetingsofcooperativedevel-opmentagencies(2004,2005,2006,2010),whereCOPACmembersdiscussedandsharedprogressabout the implementationofRecommendationNo.193.COPACalso facilitated cooperation among itsmembers for the elaborationof theUNGuidelines throughaconsultationmeeting(1997),aswellas thepreparationandcoordinationactivitiesoftheUNInternationalYearofCoop-eratives through UN expert meetings (2002, 2006, 2009, 2011 and 2012).Othercapacity-buildingeventsjointlyorganizedbytheILOandtheICAwereinternationalconferences focusingon thepromotionand implementationofRecommendationNo.193.

Chart 3Chart 3 Jointly organized international/regional capacity building by stakeholder groups

Cooperative organizations,governments and others

13%

ILO, ICA and COPAC50%

ILO,cooperative

organizationsand governments

4%

Others,ILO and ICA

6%

ILO andCooperative

organizations8%

ICAand governments

19%


13%


ILO,cooperative


4%

Others,ILO and ICA

6%

ILO andCooperative

organizations8%

ICAand governments

19%


13%


ILO,cooperative


4%

Others,ILO and ICA

6%

ILO andCooperative

organizations8%

ICAand governments

19%

COPAC member organizations, ITUC and IOE, national and local gov-ernments, cooperative organizations, universities and research centres allhosted a variety of regional and inter-regional conferences andworkshopsthatwereeitherdedicated toor includeddiscussionsoncooperativepolicy and law

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Box 4: Dissemination and translation of Recommendation No. 193

Recommendation No. 193 was provided to all ICA member organizations and all ILO field offices. An explanatory background paper and generic presentation was prepared in English, French and Spanish, and provided via CD-ROM to all ILO field offices and some 35 cooperative development partners. The information was updated twice for further dissemination.

Recommendation No. 193 has been translated to 36 national and vernacular languages: Amharic (Ethiopia), Arabic, Arabic (Palestinian version), Bulgarian, Chinese, Czech, Danish, Dutch, English, French, Finnish, German, Greek, Hebrew, Hindi, Hungarian, Icelandic, Bahasa Indonesia, Italian, Japanese, Korean, Lithuanian, Mongolian, Norwegian, Polish, Portuguese, Portuguese (Brazilian), Romanian, Russian, Serbo-Croatian, Sinhalese, Spanish, Swahili, Swedish, Thai, Turkish, Vietnamese. Commentaries in English, German, Greek, Russian, Japanese and Polish, among other languages, are also available.

ThepromotionofRecommendationNo.193 at thenational levelwasmainlyundertaken through technical training sessions and seminars focusing oncooperativepolicyandlaw.Thesewereinitiativesofuniversitiesandresearchcentres, national cooperative organizations and national governments. Inaddition, in somecountries inAsia-PacificandAfrica, technicalcooperationprojects funded by donor agencies aimed at strengthening cooperatives and/oremploymentcreationthroughcooperativesusedRecommendationNo.193,amongothertrainingmaterials,incapacity-buildingactivitiesforcooperativerepresentativesandpolicy-makers.

Universities and research centres were responsible for 62 per cent of con-ferences and workshops, with a minor focus on cooperative policy anddevelopment, whereas national cooperative organizations and governments

Africa8%

Arab States2%

Asia-Paci�c12%

Americas18%

Europe &Central Asia

60%

Chart 4Chart 4 National capacity-building events organized by region

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heldpracticalworkshopsontheimplementationofRecommendationNo.193.Sectoralandnationalcooperativeorganizationsalsoorganizedanumberofmeetingsthatincludedinformationsessionsoncooperativepolicyandlaw.

The geographical distribution of national capacity-building events confirmsthat technical training events and research conferences on cooperative pol-icyandlawpredominantlytookplaceinEuropeandCentralAsia,organizedmostly by universities, research centres and national cooperative organiza-tions.IntheAmericas,aswellasintheAsia–Pacificregion,bothcooperativeorganizations and governments took the initiative in organizing seminars and technicalworkshopsspecificallyaddressingcooperativepolicyandlaw.

Withregardtoothercooperativestakeholders,andinparticulartheILOandtheICA,bothprovidedtechnicalexpertisetoalimitednumberofeventsfocus-ingoncooperativepolicyandlawandtheimplementationofRecommendationNo.193atthenationallevel.

Finally,anumberofmanuals,guides, reportsandother toolswerepreparedbytheILO, theICAandothercooperativestakeholders toassist inbuildingcapacity on the policy and legal aspects of promoting cooperative in line with RecommendationNo.193.Aselectedlistisgiveninbox5.64

Box 5: Selected publications to assist in the implementation of Recommendation No. 193 with regard to policy and law

Framework for cooperative legislation (1998), ILOGuidelines for cooperative legislation (English 2005 and 2012; French 2006 and 2013, Spanish 2000 and 2013, Arabic 2014, Russian 2015), ILOUnder the COOPREFORM programme, which supported ILO member States in revising their cooperative policies and legislation, the ILO commissioned in 1996 a paper entitled Framework for cooperative legislation.64 After its revision (1998), the paper was presented to and endorsed by the ICA General Assembly 2001 in Seoul. Based on this revised version, the Guidelines for cooperative legislation (2005) were jointly released by the ILO and COPAC. This was meant to be a checklist of items to be considered when amending or making a cooperative law. The added value of this second edition is in line with the adoption of Recommendation No. 193. It considered matters related to cooperative law not only in countries of the South, but in all ILO member countries. The third edition of these ILO-COPAC guidelines (2012) was produced to incorporate new developments that impact on the development of cooperative law, including the general trend towards harmonization of law, the emergence of international regulations that directly impact enterprises, new regional cooperative legislation and regional framework laws, as well as innovation in the

64 OriginallywritteninFrench,thisworkingpaperhasbeentranslatedtoArabic,Chinese,English,Portuguese,Russian,SpanishandTurkish.

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cooperative form of enterprise itself. The third updated edition of the guidelines has been translated into French, Spanish, Arabic and Russian.

Promoting cooperatives: A guide to ILO Recommendation 193 (2004 and a second revised edition in 2014), ILO-ICA-UK Cooperative CollegeThis joint publication of ILO-ICA-Cooperative College of the United Kingdom aims to provide guidance and knowledge about Recommendation No. 193 and how it provides a basis for laws and policies on cooperatives. This guide targets both cooperators and ILO constituents (governments and employers’ and workers’ organizations) in order to promote the role of the ILO and its system of international Conventions and Recommendations and to raise awareness on the need to promote cooperatives. A revised second edition, called Promoting cooperatives: An information guide to ILO Recommendation No. 193 was published in 2014.

Third critical study on cooperative legislation and policy reforms in the Asia Pacific region (2004), ICA Asia and PacificFourth critical study on cooperative legislation and policy reforms in the Asia Pacific region (2012), ICA Asia and PacificThe Third Critical Study assessed the outcome of reforms initiated in countries following the adoption of Recommendation No. 193 and the UN Guidelines (2001) and highlighted matters which warranted intervention of governments. The Fourth Critical Study was commissioned as part of the related activities to the 9th ICA Asia Pacific Cooperative Ministers’ Conference (27–29 February 2012, Bangkok, Thailand) on “Enabling Cooperative Legal Environment and Policy for Sufficiency Economy”.

Enabling cooperative development: Principles for legal reform (2006), Cooperative Law and Regulation Initiative (CLARITY), USAThis first report of the Cooperative Law and Regulation Initiative (CLARITY)65 offers to cooperative movements worldwide a set of nine core principles as a valuable tool for evaluating and reforming cooperative laws and regulations. This report is the result of workshops, research and consultations with cooperative development organizations and other cooperative stakeholders on cooperative law reform in various countries. The report is available in Arabic, English, Kiswahili, Mongolian, Portuguese and Spanish.

Cooperative policy and law in East and Southern Africa: A review (2010), by Jan Theron, CoopAFRICA Working Paper No. 18, ILOThis paper presents a comparative analysis of the policies regarding cooperative development and cooperative legislation for the countries of East and Southern Africa. It argues that there is a complex interaction between policy and law within national boundaries, and also between countries within the region. The benefit of a comparative analysis is that it develops a regional perspective regarding the policy and legislative framework, in order to identify common problems with this framework and to stimulate debate as to how countries in the region can collaborate in strengthening the position of cooperatives.

International handbook of cooperative law, edited by Dante Cracogna, Antonio Fici and Hagen Henry (2013) This handbook offers a unique comparison of cooperative laws in more than 30 countries, representing all regions worldwide. The first part sets the analytical and conceptual framework used for understanding, studying and assessing cooperative laws from a transnational and comparative perspective. The second part focuses on cooperative law harmonization. The third part provides an overview of more than thirty national cooperative laws. The final part highlights trends and prospects and provides a comparison of these national cooperative laws, thus building a comparative cooperative law doctrine.

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E. Trends65

Anumberofgeneralobservationscanbemadeontheinformationrelatedtopolicyandlegislativechanges:

� RecommendationNo.193hasinfluencedpolicyandlegislationinallregions,thusconfirmingitsuniversality.Theimplementationconformstotheneedsthatitaddressesincountriesaroundtheworld–fromtheso-calleddevelop-ingcountriestothehighlyindustrializedcountries.

� Where there have been reviews, revisions or new formulations of coop-erative policy and legislation, the key legal features ofRecommendationNo.193are thosemostcommonlyaddressed.Inparticular, thisrelates totheissueoflegalpersonality,autonomy,newsectorsandnewtypesofcoop-eratives, equal treatment of cooperativeswith other forms of enterprise,particularlywithregardtoaccesstoappropriatesupportiveorpromotionalmeasures.

� Therehasbeenamoveawayfromtheadoptionofnewlaws.Instead,moreemphasis is given to ensuring the implementation of existing laws thatalready incorporate thekey legal features ofRecommendationNo.193.

� Incountrieswherecooperativepolicyandlegislativerevisionsaretakingplace,thereisatrendofisomorphizationorapproximationofcooperativeswithstockcompanies,contradictingtheessenceofILOR.193whichcallsforpolicyandlawthatrecognizesthespecificnatureofcooperatives.Thishas led to the harmonization of cooperative law and policy with other laws alsowithregardtolabourlaw,competitionandtaxlaw,accounting/pru-dentialstandards,bookkeepingrules,andauditandbankruptcyrules.This“stockcompanization”ofcooperativesispartofawiderprocessofstand-ardizingallenterprisetypesonthefeaturesofstockcompaniesandnotonlycooperatives,leadingtoalegalisomorphismofenterprisetypes.66

Regionalizationofcooperativepolicyandlegislationhasalsoincreasedduringthe period under review, as seen by the regional instruments inAfrica, theAmericasandtheEU.Thistrendcontinues,withparliamentaryinitiativesfur-theraddressingcooperativepolicyandlegislationatregionalandsub-regionallevels,includingmostrecentlyinEastAfrica.

65 CLARITY was created in 2005 by members of the United States Overseas CooperativeDevelopment Council, with support from the United States Agency for InternationalDevelopment.Formoreinformation,see:http://www.clarity.coop/about.html

66 See:H.Henrÿ:Guidelines for cooperative legislation,thirdedition(ILO,Geneva,2012).

http://www.clarity.coop/about.html

4545

Conclusions and lessons learntConclusions and lessons learnt

RecommendationNo.193hashadasignificantinfluenceonthedevelopmentofcooperativepolicyandlegislation.Over100countrieshaveinsomewayoranotherreviewed,revisedand/oradoptednewpolicyandlegislationinthelightof theRecommendation.The ILOhasbeen active in thedissemination andimplementationoftheinstrument,andthankstothewidernetworkofcoopera-tivestakeholders,RecommendationNo.193hasalsobeenusedatregionalandnational levels

TheroleofCOPACandtheICAhascreatedamultipliereffect,increasingtheimpactof theRecommendationonpolicy and legislation.There is enormouspotential for it to have even greater impact, due to the fact that theRecom-mendationhas influencedsomany international, regionalandnationalpolicydocumentsanddeclarations.Forexample, theOHADAUniformCooperativeActisbindinglawin17countries,theEuropeanUnionRegulationontheStatuteforaEuropeanCooperativeSociety(SCE)appliesin27countriesandtheFrame-workLawofCooperativesinLatinAmericaaffectsanadditional25countries.

ThestrategydocumentBlueprint for a cooperative decade,whichwasapprovedbytheICAGeneralAssemblyinManchesterin2012,referstoRecommenda-tionNo.193asoneofthemajorinternationallegalinstrumentsforcooperativestobeusedduringthedecade.Thedocumentincludesalegalframeworkasoneofthefiveprioritythemesforthedecade: identity, participation, sustainability, capital and legal framework. Ithighlightstheneedforfurtherconsiderationofeffortstosupportlegislationasfollows:

One of the great successes of the 2012 International Year is that policy-makers and regulators are finally waking up to the difference that cooperatives make and the benefits they deliver. There is much already to celebrate here. However, assistance must be provided to law-makers and regulators, if the growing enthusiasm for the cooperative form of enterprise is to be translated into the types of supportive legal frameworks that will unleash the cooperative growth that everyone will benefit from.67

67 ICA2013:Blueprint for a cooperative decade(2012),pp.24–27.

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The Blueprint further suggests that assistance should be provided for localauthoritiesdealingwithcooperativesthroughthecreationofanInternationalNetwork for registrars and regulators, and for parliamentarians, legislatorsand policy-makers through the comparative study of theway laws apply tocooperativesindifferentjurisdictions.TherelevanceandcontributionofRec-ommendationNo.193willcontinuethroughtheseefforts.

ThefutureofRecommendationNo193is importantas,despitethefact thatithasalreadyhadaninfluenceinover100countries,ithasnotyetbeenfullyimplemented.Therecontinuestobeanunder-recognitionofthecontributionof cooperatives to economic and social development and therefore too little understandingaboutthismodelofenterprise.Inthissituation,Recommenda-tionNo.193hastobefurtherdisseminatedandcapacitybuildingeffortshaveto continue to ensure there iswider compliancewith theRecommendation.PrioritymustbegiventotherequestscomingfromtheILOmemberStatesthathavenotyetusedtheRecommendationinrevisingtheircooperativepoliciesand legislation

Further,asthecooperativeformofenterpriselendsitselftonearlyallareasofeconomicactivity,itislikelythatnewchallengeswillrequirecontinuedevalu-ationofpolicyandlegislationtoensurethatthesecanaccommodatenewtypesofcooperatives,whichareactiveinnewsectors,whileensuringthereisalevelplayingfieldforallenterprisetypes.

As for the ILO, it is important to note thatmore emphasis needs to be putoncapacity-buildingactivities related toRecommendationNo.193,notonlythroughtheInternationalTrainingCentreoftheILO(ITC)trainingcourses,butalsothroughregionalandnationaltrainingseminars,someofwhichcouldbe organized as part of the technical cooperation projects It is also important tocontinuecapacity-buildingactivitiesforspecifictargetgroups,i.e.nationalcooperative apex organizations and employers’ and workers’ organizations

On thebasisof lessons learnt from the implementationofRecommendationNo.193,itissuggestedthattheRecommendationcouldbeusedasareferencepolicydocumentintheimprovementofpoliciesandlawsforothersocialecon-omy enterprises

Finally,itisalsoimportanttonotethecontributionofRecommendationNo.193totheenterprisenatureofcooperatives.Itshouldbeusedmoreintensivelyincooperative management training programmes to highlight the different gov-ernancestructureforcooperatives.

4747

Conclusions and lessons learntConclusions and lessons learnt

TimeandagainRecommendationNo.193hasprovenitsrelevancetocoun-tries in their efforts to provide a solid enabling environment for cooperative enterprises.Whilequiteanumberofyearshaspassedsince itsadoption in2002,theRecommendationcontinuestobeafunctionaltoolfordevelopmentof national cooperative legislation and policies As governments and national cooperativemovementsembarkuponcooperativelegislativereform,thetextand the spirit of the Recommendation will continue to guide the processaroundtheworld.Astheinternationalcooperativemovement’sBlueprintforaCo-operativeDecadeputsarenewedemphasisoncooperative legislation,theknowledgeofthehistoryaroundRecommendation193willhelpequipthenewgenerationsofpolicymakersandco-operatorswithcritical insights inembarkinguponrelevantreform.

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Key publications on Recommendation Key publications on Recommendation No. 193 (2002)No. 193 (2002)

The Story of the ILO’s Promotion of Cooperatives Recommendation, 2002 (No. 193)isapartofapackageoncooperativelegislation,whichistheILO’scontribution to the legislation pillar of the International Co-operative Alli-ance’s Blueprint for a co-operative decade

Thepackageincludestwootherpublications:

� Henrÿ,H.2012.Guidelines for cooperative legislation third revised edi-tion (Geneva, ILO).Available at: http://www.ilo.org/empent/Publications/WCMS_195533/lang--en/index.htm

� Smith, S. 2014. Promoting cooperatives: An information guide to ILO Recommendation No. 193 (Geneva, ILO) Available at: http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---coop/documents/publication/wcms_311447.pdf

Inaddition, thefollowingpublicationsarerecommendedaskeyreadingsoncooperative legislation in general and Recommendation No.193 (2002) inparticular.

� ICA2013.Blueprint for a co-operative decade. Availableat:http://ica.coop/en/blueprint-co-op-decade

� ILO2010.General Survey concerning employment instruments in light of the 2008 Declaration on Social Justice for a Fair Globalization Available at: http://ilo.org/global/standards/WCMS_125008/lang--en/index.htm

http://www.ilo.org/empent/Publications/WCMS_195533/lang--en/index.htm

http://www.ilo.org/empent/Publications/WCMS_195533/lang--en/index.htm

http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---coop/documents/publication/wcms_311447.pdf



http://ica.coop/en/blueprint-co-op-decade%20

http://ica.coop/en/blueprint-co-op-decade%20

http://ilo.org/global/standards/WCMS_125008/lang--en/index.htm

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AnnexesAnnexes

Annex I:Annex I: R193 – Promotion of Cooperatives Recommendation, 2002 (No. 193): Recommendation concerning Promotion of Cooperatives

Adoption: Geneva, 90th ILC session (20 Jun 2002)

PreamblePreamble

TheGeneralConferenceoftheInternationalLabourOrganization,

Having been convened at Geneva by the Governing Body of the International LabourOffice,andhavingmetinits90thSessionon3June2002,and

Recognizing the importance of cooperatives in job creation, mobilizingresources,generatinginvestmentandtheircontributiontotheeconomy,and

Recognizingthatcooperativesintheirvariousformspromotethefullestpartic-ipationintheeconomicandsocialdevelopmentofallpeople,and

Recognizingthatglobalizationhascreatednewanddifferentpressures,prob-lems,challengesandopportunities forcooperatives,and thatstronger formsofhumansolidarityatnationalandinternationallevelsarerequiredtofacili-tateamoreequitabledistributionofthebenefitsofglobalization,andNotingtheILODeclarationonFundamentalPrinciplesandRightsatWork,adoptedbytheInternationalLabourConferenceatits86thSession(1998),andNotingthe rights and principles embodied in international labourConventions andRecommendations, in particular the Forced Labour Convention, 1930; theFreedomofAssociationandProtectionoftheRighttoOrganiseConvention,1948;theRighttoOrganiseandCollectiveBargainingConvention,1949;theEqualRemunerationConvention,1951;theSocialSecurity(MinimumStand-ards)Convention,1952;theAbolitionofForcedLabourConvention,1957;the

5252


Discrimination(EmploymentandOccupation)Convention,1958;theEmploy-mentPolicyConvention,1964;theMinimumAgeConvention,1973;theRuralWorkers’OrganisationsConventionandRecommendation,1975; theHumanResourcesDevelopmentConventionandRecommendation,1975;theEmploy-ment Policy (Supplementary Provisions) Recommendation, 1984; the JobCreationinSmallandMedium-SizedEnterprisesRecommendation,1998;andtheWorstFormsofChildLabourConvention,1999,and

RecallingtheprincipleembodiedintheDeclarationofPhiladelphiathat“labourisnotacommodity”,and

Recallingthattherealizationofdecentworkforworkerseverywhereisapri-maryobjectiveoftheInternationalLabourOrganization,and

Havingdecidedupontheadoptionofcertainproposalswithregardtothepro-motionofcooperatives,whichisthefourthitemontheagendaofthesession,and

HavingdeterminedthattheseproposalsshalltaketheformofaRecommendation;

adoptsthistwentiethdayofJuneoftheyeartwothousandandtwothefollow-ingRecommendation,whichmaybecitedasthePromotionofCooperativesRecommendation,2002.

I I Scope, definition and objectives Scope, definition and objectives

1. Itisrecognizedthatcooperativesoperateinallsectorsoftheeconomy.ThisRecommendationappliestoalltypesandformsofcooperatives.

2. ForthepurposesofthisRecommendation,theterm“cooperative”meansanautonomousassociationofpersonsunitedvoluntarilytomeettheircommoneconomic,socialandculturalneedsandaspirationsthroughajointlyownedand democratically controlled enterprise

3. Thepromotionandstrengtheningoftheidentityofcooperativesshouldbeencouragedonthebasisof:(a) cooperativevaluesofself-help,self-responsibility,democracy,equality,

equity and solidarity; aswell as ethical values of honesty, openness,socialresponsibilityandcaringforothers;and

(b) cooperativeprinciplesasdevelopedbytheinternationalcooperativemove-mentandasreferredtointheAnnexhereto.Theseprinciplesare:voluntaryand openmembership; democraticmember control; member economic

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AnnexesAnnexes

participation;autonomyandindependence;education,trainingandinfor-mation;cooperationamongcooperatives;andconcernforcommunity.

4. Measuresshouldbeadoptedtopromotethepotentialofcooperativesinallcountries,irrespectiveoftheirlevelofdevelopment,inordertoassistthemandtheirmembershipto:(a) createanddevelopincome-generatingactivitiesandsustainabledecent

employment;(b) develophumanresourcecapacitiesandknowledgeofthevalues,advan-

tagesandbenefitsofthecooperativemovementthrougheducationandtraining;

(c) developtheirbusinesspotential,includingentrepreneurialandmanage-rialcapacities;

(d) strengthentheircompetitivenessaswellasgainaccesstomarketsandtoinstitutionalfinance;

(e) increasesavingsandinvestment;(f) improvesocialandeconomicwell-being,takingintoaccounttheneedto

eliminateallformsofdiscrimination;(g)contributetosustainablehumandevelopment;and(h) establish and expand a viable and dynamic distinctive sector of the

economy,whichincludescooperatives,thatrespondstothesocialandeconomicneedsofthecommunity.

5. Theadoptionofspecialmeasuresshouldbeencouragedtoenablecoopera-tives,asenterprisesandorganizationsinspiredbysolidarity,torespondtotheirmembers’needsandtheneedsofsociety,includingthoseofdisadvan-tagedgroupsinordertoachievetheirsocialinclusion.

II II Policy framework and role of governments Policy framework and role of governments

6. Abalancedsocietynecessitatestheexistenceofstrongpublicandprivatesectors, aswell as a strong cooperative,mutual and the other social andnon-governmentalsector.ItisinthiscontextthatGovernmentsshouldpro-videasupportivepolicyandlegalframeworkconsistentwiththenatureandfunctionofcooperativesandguidedbythecooperativevaluesandprinci-plessetoutinParagraph3,whichwould:(a) establishaninstitutionalframeworkwiththepurposeofallowingforthe

registrationofcooperativesinasrapid,simple,affordableandefficientamanneraspossible;

(b) promotepoliciesaimedatallowingthecreationofappropriatereserves,partofwhichatleastcouldbeindivisible,andsolidarityfundswithincooperatives;

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(c) providefortheadoptionofmeasuresfortheoversightofcooperatives,ontermsappropriatetotheirnatureandfunctions,whichrespecttheirautonomy, and are in accordancewith national law andpractice, andwhich are no less favourable than those applicable to other forms ofenterpriseandsocialorganization;

(d) facilitate the membership of cooperatives in cooperative structuresrespondingtotheneedsofcooperativemembers;and

(e) encourage the development of cooperatives as autonomous andself-managedenterprises,particularlyinareaswherecooperativeshavean important role to play or provide services that are not otherwise provided

7.(1) Thepromotionofcooperativesguidedbythevaluesandprinciplesset

outinParagraph3shouldbeconsideredasoneofthepillarsofnationaland international economic and social development

(2) Cooperatives should be treated in accordance with national law andpracticeandontermsnolessfavourablethanthoseaccordedtootherforms of enterprise and social organization. Governments shouldintroduce support measures, where appropriate, for the activities ofcooperativesthatmeetspecificsocialandpublicpolicyoutcomes,suchas employment promotion or the development of activities benefitingdisadvantagedgroupsorregions.Suchmeasurescouldinclude,amongothersandinsofaraspossible,taxbenefits,loans,grants,accesstopub-licworksprogrammes,andspecialprocurementprovisions.

(3) Special consideration should be given to increasing women’s par-ticipation in the cooperative movement at all levels, particularly atmanagement and leadership levels

8 (1) Nationalpoliciesshouldnotably:

(a) promotetheILOfundamentallabourstandardsandtheILODeclara-tiononFundamentalPrinciplesandRightsatWork,forallworkersincooperativeswithoutdistinctionwhatsoever;

(b) ensurethatcooperativesarenotsetupfor,orusedfor,non-compliancewith labour lawor used to establish disguised employment relation-ships, and combat pseudo cooperatives violatingworkers’ rights, byensuringthatlabourlegislationisappliedinallenterprises;

(c) promotegenderequalityincooperativesandintheirwork;(d) promotemeasurestoensurethatbestlabourpracticesarefollowedin

cooperatives,includingaccesstorelevantinformation;

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(e) develop the technical and vocational skills, entrepreneurial andmanagerial abilities, knowledge of business potential, and generaleconomic and social policy skills, of members, workers and man-agers, and improve their access to information and communication technologies;

(f) promoteeducationandtrainingincooperativeprinciplesandpractices,atallappropriatelevelsofthenationaleducationandtrainingsystems,andinthewidersociety;

(g) promotetheadoptionofmeasuresthatprovideforsafetyandhealthintheworkplace;

(h) providefortrainingandotherformsofassistancetoimprovethelevelofproductivityandcompetitivenessofcooperativesandthequalityofgoodsandservicestheyproduce;

(i) facilitateaccessofcooperativestocredit;(j) facilitateaccessofcooperativestomarkets;(k) promotethedisseminationofinformationoncooperatives;and(l) seektoimprovenationalstatisticsoncooperativeswithaviewtothe

formulationandimplementationofdevelopmentpolicies.

(2) Suchpoliciesshould:(a) decentralize to the regional and local levels, where appropriate, the

formulationandimplementationofpoliciesandregulationsregardingcooperatives;

(b) define legalobligationsof cooperatives in areas suchas registration,financialandsocialaudits,andtheobtainingoflicences;and

(c) promotebestpracticeoncorporategovernanceincooperatives.

9. Governmentsshouldpromote the important roleofcooperatives in trans-formingwhatareoftenmarginalsurvivalactivities(sometimesreferredtoas the “informal economy”) into legally protectedwork, fully integratedinto mainstream economic life

III Implementation of public policies for the promotion of cooperativesIII Implementation of public policies for the promotion of cooperatives

10.(1) Member States should adopt specific legislation and regulations on

cooperatives,whichareguidedbythecooperativevaluesandprinciplessetoutinParagraph3,andrevisesuchlegislationandregulationswhenappropriate

(2) Governments should consult cooperative organizations, as wellas the employers’ and workers’ organizations concerned, in the

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formulationandrevisionof legislation,policiesandregulationsappli-cable to cooperatives

11.(1) Governmentsshouldfacilitateaccessofcooperatives tosupportservices

inordertostrengthenthem,theirbusinessviabilityandtheircapacitytocreate employment and income

(2) Theseservicesshouldinclude,whereverpossible:(a) humanresourcedevelopmentprogrammes;(b) researchandmanagementconsultancyservices;(c) accesstofinanceandinvestment;(d) accountancyandauditservices;(e) managementinformationservices;(f) informationandpublicrelationsservices;(g) consultancyservicesontechnologyandinnovation;(h) legalandtaxationservices;(i) supportservicesformarketing;and(j) othersupportserviceswhereappropriate.

(3) Governmentsshouldfacilitatetheestablishmentofthesesupportservices.Cooperativesandtheirorganizationsshouldbeencouragedtoparticipateintheorganizationandmanagementoftheseservicesand,whereverfeasi-bleandappropriate,tofinancethem.

(4) Governments should recognize the roleof cooperativesand theirorgan-izations by developing appropriate instruments aimed at creating andstrengthening cooperatives at national and local levels

12. Governmentsshould,whereappropriate,adoptmeasurestofacilitatetheaccess of cooperatives to investmentfinance and credit. Suchmeasuresshouldnotably:(a) allowloansandotherfinancialfacilitiestobeoffered;(b) simplify administrative procedures, remedy any inadequate level of

cooperativeassets,andreducethecostofloantransactions;(c) facilitateanautonomoussystemoffinanceforcooperatives,including

savingsandcredit,bankingandinsurancecooperatives;and(d) includespecialprovisionsfordisadvantagedgroups.

13. For the promotion of the cooperative movement, governments shouldencourageconditionsfavouringthedevelopmentoftechnical,commercialandfinanciallinkagesamongallformsofcooperativessoastofacilitateanexchangeofexperienceandthesharingofrisksandbenefits.

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IV IV Role of employers’ and workers’ organizations and cooperative Role of employers’ and workers’ organizations and cooperative organizations, and relationships between themorganizations, and relationships between them

14. Employers’ and workers’ organizations, recognizing the significance ofcooperativesfortheattainmentofsustainabledevelopmentgoals,shouldseek,togetherwithcooperativeorganizations,waysandmeansofcooper-ative promotion

15. Employers’organizations shouldconsider,whereappropriate, theexten-sion of membership to cooperatives wishing to join them and provide appropriatesupport serviceson thesame termsandconditionsapplyingto other members

16. Workers’organizationsshouldbeencouragedto:(a) adviseandassistworkersincooperativestojoinworkers’organizations;(b) assisttheirmemberstoestablishcooperatives,includingwiththeaim

offacilitatingaccesstobasicgoodsandservices;(c) participateincommitteesandworkinggroupsatthelocal,nationaland

internationallevelsthatconsidereconomicandsocialissueshavinganimpactoncooperatives;

(d) assistandparticipateinthesettingupofnewcooperativeswithaviewto thecreationormaintenanceofemployment, including incasesofproposedclosuresofenterprises;

(e) assistandparticipateinprogrammesforcooperativesaimedatimprov-ingtheirproductivity;

(f) promoteequalityofopportunityincooperatives;(g) promotetheexerciseoftherightsofworker-membersofcooperatives;

and(h) undertake any other activities for the promotion of cooperatives,

includingeducationandtraining.

17. Cooperativesandorganizationsrepresenting themshouldbeencouragedto:(a) establishanactive relationshipwithemployers’andworkers’organi-

zations and concerned governmental and non-governmental agencieswith a view to creating a favourable climate for the development ofcooperatives;

(b) managetheirownsupportservicesandcontributetotheirfinancing;(c) providecommercialandfinancialservicestoaffiliatedcooperatives;(d) investin,andfurther,humanresourcedevelopmentoftheirmembers,

workersandmanagers;(e) further the development of and affiliationwith national and interna-

tionalcooperativeorganizations;

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(f) representthenationalcooperativemovementattheinternationallevel;and

(g) undertakeanyotheractivitiesforthepromotionofcooperatives.

V IV International cooperationnternational cooperation

18. Internationalcooperationshouldbefacilitatedthrough:(a) exchanginginformationonpoliciesandprogrammesthathaveproved

to be effective in employment creation and income generation for membersofcooperatives;

(b) encouraging and promoting relationships between national andinternational bodies and institutions involved in the development ofcooperativesinordertopermit:(i) theexchangeofpersonneland ideas,ofeducationaland training

materials,methodologiesandreferencematerials;(ii) thecompilationandutilizationofresearchmaterialandotherdata

oncooperativesandtheirdevelopment;(iii) the establishment of alliances and international partnerships

betweencooperatives;(iv) thepromotionandprotectionofcooperativevaluesandprinciples;

and(v) theestablishmentofcommercialrelationsbetweencooperatives;

(c) accessofcooperativestonationalandinternationaldata,suchasmarketinformation,legislation,trainingmethodsandtechniques,technologyandproductstandards;and

(d) developing, where it is warranted and possible, and in consultationwithcooperatives,employers’andworkers’organizationsconcerned,commonregionalandinternationalguidelinesandlegislationtosup-port cooperatives

VI Final provisionVI Final provision

19. The present Recommendation revises and replaces the Co-operatives(DevelopingCountries)Recommendation,1966.

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AnnexAnnex

Extract from the statement on the cooperative identity, adopted by the General Assembly of the International Co-operative Alliance in 1995

Thecooperativeprinciplesareguidelinesbywhichcooperativesputtheirval-uesintopractice.

Voluntaryandopenmembership

Cooperativesarevoluntaryorganizations,opentoallpersonsabletousetheirservicesandwillingtoaccepttheresponsibilitiesofmembership,withoutgen-der,social,racial,politicalorreligiousdiscrimination.

Democratic member control

Cooperativesaredemocraticorganizationscontrolledbytheirmembers,whoactively participate in setting their policies and making decisions Men and womenservingaselectedrepresentativesareaccountabletothemembership.Inprimarycooperativesmembershaveequalvotingrights(onemember,onevote)andcooperativesatotherlevelsarealsoorganizedinademocraticmanner.

Member economic participation

Members contribute equitably to, and democratically control, the capital oftheircooperative.Atleastpartofthatcapitalisusuallythecommonpropertyof the cooperative

Membersusuallyreceivelimitedcompensation,ifany,oncapitalsubscribedas a conditionofmembership.Members allocate surpluses for anyor all ofthe followingpurposes:developing their cooperative,possiblyby settingupreserves, part ofwhich at leastwouldbe indivisible; benefitingmembers inproportion to their transactions with the cooperative; and supporting otheractivities approved by the membership

Autonomyandindependence

Cooperatives are autonomous, self-help organizations controlled by theirmembers. If they enter into agreementswith other organizations, includinggovernments,orraisecapitalfromexternalsources,theydosoontermsthatensure democratic control by theirmembers andmaintain their cooperativeautonomy.

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Education,trainingandinformation

Cooperativesprovideeducationand trainingfor theirmembers,electedrep-resentatives,managers, and employees so they can contribute effectively tothedevelopmentof theircooperatives.Theyinformthegeneralpublic-par-ticularlyyoungpeopleandopinionleaders-aboutthenatureandbenefitsofcooperation

Cooperationamongcooperatives

Cooperativesserve theirmembersmosteffectivelyandstrengthenthecoop-erativemovement byworking together through local, national, regional andinternationalstructures.

Concernforcommunity

Cooperatives work for the sustainable development of their communitiesthroughpoliciesapprovedbytheirmembers.

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Annex II:Annex II: Extract: ILO Co-operatives (Developing Countries) Recommendation, 1966 (No. 127)

III Methods of Implementation of Policy Concerning Co-operatives III Methods of Implementation of Policy Concerning Co-operatives

A Legislation

10. Allappropriatemeasures,includingtheconsultationofexistingco-opera-tives,shouldbetaken:(a) todetectandeliminateprovisionscontained in lawsand regulations

whichmay have the effect of unduly restricting the development ofco-operatives throughdiscrimination, for instance in regard to taxa-tionortheallocationoflicensesandquotas,orthroughfailuretotakeaccountof thespecialcharacterofco-operativesorof theparticularrulesofoperationofco-operatives;

(b) toavoidtheinclusionofsuchprovisionsinfuturelawsandregulations;(c) to adapt fiscal laws and regulations to the special conditions of

co-operatives.

11. Thereshouldbelawsorregulationsspecificallyconcernedwiththeestab-lishmentandfunctioningofco-operatives,andwiththeprotectionoftheirrighttooperateonnotlessthanequaltermswithotherformsofenterprise.Theselawsorregulationsshouldpreferablybeapplicabletoallcategoriesofco-operatives.

12.

(1) Such laws and regulations should in any case include provisions on thefollowingmatters:(a)adefinitionordescriptionofaco-operativebringingout itsessentialcharacteristics,namelythatitisanassociationofpersonswhohavevolun-tarilyjoinedtogethertoachieveacommonendthroughtheformationofademocraticallycontrolledorganization,makingequitablecontributionstothecapitalrequiredandacceptingafairshareoftherisksandbenefitsoftheundertakinginwhichthemembersactivelyparticipate;(b) adescriptionof theobjects of a co-operative, andprocedures for itsestablishment and registration, the amendment of its statutes, and itsdissolution;

(c) theconditionsofmembership,suchasthemaximumamountofeachshareand,whereappropriate,theproportionofthesharedueatthemomentof

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subscriptionand the timeallowedfor fullpayment,aswellas the rightsanddutiesofmembers,whichwouldbelaiddowningreaterdetailintheby-lawsofco-operatives;

(d) methodsofadministration,managementandinternalaudit,andproce-duresfortheestablishmentandfunctioningofcompetentorgans;

(e) theprotectionofthename“co-operative”;(f) machineryfortheexternalauditandguidanceofco-operativesandfor

theenforcementofthelawsandregulations.

(2) Theproceduresprovidedforinsuchlawsorregulations,inparticulartheproceduresforregistration,shouldbeassimpleandpracticalaspossible,soasnottohinderthecreationanddevelopmentofco-operatives.

13. Lawsandregulationsconcerningco-operativesshouldauthorizeco-oper-atives to federate

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Annex III:Annex III: Concerted action taken to promote Recommendation No. 193 during the first three years (2003–2005)

Promoting the Recommendation

� Recommendationsenttoall240ICAmemberorganizationsandall 63ILOfieldoffices.

� RecommendationpublishedontheInternet:www.ilo.org/coop, www.coopnetaldia.org,www.coopnetupdate.org,www.copacgva.org,www ica coop and many national websites

� Recommendationtranslatedinto36languages.

� ExplanatorybackgroundpaperandgenericPowerPointpresentationpreparedinEnglish,FrenchandSpanish,andsentonaCD-ROMtoallILOexternalofficesandsome35developmentpartners;asecond,enhancedversionoftheCD-ROMsentoutin2003,thirdversiondisseminatedin2004.

� Promotionalmaterialsproduced,andsentto240ICAmemberorganizations,toalldonorssupportingCOOPprojectsandallILOHQunits,externalofficesandfieldstaff.

� ArticlesonRecommendationNo.193publishedinWorld of Work,September2003andMay2005,andinseveralnationalpublications(Finland,France,Germany,Ghana,Greece,Italy,Japan,Portugal(2),India(3),Madagascar,Mexico,Poland,Spain,Thailand(4),Turkey,theUK),plusguidesontheRecommendationproducedinEnglish,Greek,Spanish,Polish,Portuguese,IndonesianandTurkishlanguages (bypartners);

� ILOpressreleaseontheimpactofRecommendationNo.193oneyearafter its adoption

� Users’guideonRecommendationNo.193preparedbytheUKCo-operativeCollegeincollaborationwithICAandILO;officiallylaunchedinJuly2004inLondonattheHouseofCommons(Frenchtranslationavailable).

www.ilo.org/coop

www.coopnetaldia.org

www.coopnetupdate.org

www.copacgva.org

www.ica.coop

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� CourseoncooperativeentrepreneurshiponthebasisofRecommendationNo.193incollaborationwithITCTurin(heldinMarch2003);courseoncooperativepolicyandlegislation(heldinOctober2004);courseoncooperativepolicyandlegislationinFrench(heldinOctober2005).

� NewguidelinesoncooperativelegislationbasedonRecommendationNo.193,publishedjointlybyILOandCOPAC(Frenchversionprintedin2006).

� ProjectdocumentfortheimplementationoftheRecommendationdesigned

� ILOpressreleaseontheimpactofRecommendationNo.193oneyearafter its adoption

Global meetings and seminars organized

� Thirteen global meetings and conferences organized by the ILO and its partners:

� SpecialmeetingforGoverningBodyMembersandILOofficialsmembersinGeneva,November2002.

� ILOmeetingwithallICAregionaldirectorsandtheICAPresident.

� Special meeting of agencies involved in cooperative development (Stockholm,6–7March2003:11internationaland12nationalcooperativedevelopmentagenciesparticipated).

� COPACBoardmeetingoncoordinatingtheworkonRecommendationNo.193(5March2003,withFAO,ICA,IFAPandUN).

� GlobalcooperativeresearchconferenceheldinVictoria,BC(Canada),involving54universitiesfrom34countries(May2003).

� Tripartitesideeventduringthe91stILC(17June2003)toinformconstituentsabouttheprogressmadeinpromotingtheinstrument.

� KeynoteaddressbytheDirector-GeneraloftheILOattheICAGeneralAssembly(Oslo,3September2003).

� COPACOpenForumonCooperativesandtheMillenniumDevelopmentGoals,withsome30cooperativedevelopmentagencies(Washington, 27June2004).

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� ICA/LegacoopmeetingonCooperativesandGlobalization(Genoa,July2004).

� IRUGeneralAssemblyandForum(Berlin,November2004).

� COPACOpenForumonCooperativesandFairTrade,withsome 25cooperativedevelopmentagencies(Berlin,19–21January2005).

� ILO-ICFTU-FESmeetingoncooperativesandpovertyreduction (NewYork,September2005).

� CICOPAWorldAssembly“Co-operativeValues:Acompetitiveassetin aglobalisedeconomy“(Cartagena,Colombia,22September2005).

� COPACOpenForum(Colombo,January2006).

� ILObriefingvisitsto: FAO,IFAD,UN,UN-DESA,WFP,WorldBank,EuropeanCommission,EuropeanAgencyforReconstruction,DFID,Japan,Norway,SIDA,ItalianCooperation,andseveralUNDPcountryofficesFAO,IFAD,UN,UN-DESA,WFP,WorldBank,EuropeanCommission,EuropeanAgencyforReconstruction,DFID,Japan,Norway,SIDA,ItalianCooperation,andseveralUNDPcountryoffices.

� RegularmeetingsoftheICA-ICFTU-ILO(COOP-ACTRAV)coordinationcommittee(January2006).

Regional and national meetings and seminars

Thirtyregionalmeetingsheldincollaborationwithpartners:

� Africa:ICARegionalConferenceMauritius,ICAMinisterialConferencesKampalaandMaseru,BiannualPanafricanCooperativeConferenceinDakar,meetingoncooperativesandPRSP,ICARegionalConferencePraia);subregionalmeetingoncooperativeentrepreneurship(Brazzaville,July2005);subregionalconferenceonruralemployment(Bamako,October2005).

� Americas:ICARegionalConferenceAsuncion,regionalHRDmeetingSantiago,CapitalOwnershipGroupmeetingWashington,XIIICARegionalConference,BuenosAires.

� Europe:ICARegionalConferenceLisbon,ConferenceoftheCooperativeMovementsoftheCommonwealthofIndependentStates(St.Petersburg,

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October2003),ConferenceofcooperativemovementsofthetenEUAccessioncountries(Budapest,April2004);ConferenceontheSocialEconomy(Brussels,May2004);ICARegionalConferenceWarsaw,ConferenceofcooperativemovementsofSouthernEurope(Ankara,November2004);2ndEuropeanCooperativeConvention(June2005).

� Caribbean:SpecialILOmeetingTrinidadandTobago.

� Asia:Twoworkshops,AsianCooperativeDevelopmentForuminthePhilippines,ICARegionalConferenceforAsia(Philippines),ICA/ILO/ICFTUworkshopSingapore),ICAministerialconferenceNewDelhi,ICAlegalcommitteemeetingKuwait,ICAregionalconferenceChiangMai.

Forty-ninenationalconferencesandmeetingsorganizedwith, throughorbylocal partners in: Argentina, Belgium, Belize, Benin, Botswana, Burundi,Cameroon,Chile,China,Colombia,Congo(Republicof),Congo(DemocraticRepublic),CostaRica,Dominica,DominicanRepublic,ElSalvador,Ethiopia,Finland (2), France,Guinea-Bissau, Haiti, Honduras, Hungary, India, Indo-nesia, Italy, Japan, Kyrgyzstan, Laos, Madagascar, Mauritius, Mexico (2),Mongolia,Paraguay,Poland,Russia,Senegal,SouthAfrica,Spain,Thailand,TrinidadandTobago,Turkey,Uganda,UnitedKingdom(2),Zimbabwe(2).

Advisory services

Advisoryservicesbasedon thenewRecommendationprovided to42coun-tries: Benin, Bosnia-Herzegovina, Burundi, Cambodia, Cameroon, Chad,China,Colombia,Congo (Republicof),Congo (DemocraticRepublic),Cro-atia, Ethiopia, Georgia, Ghana, Guinea-Bissau, India, Indonesia, Japan,Kazakhstan,Kenya,Lebanon,Liberia,Malawi,Mexico,Moldova,Mongolia,Mozambique,Nigeria,Romania,Russia(NorthOssetia),Rwanda,SãoToméandPríncipe,Serbia,Somalia,SouthAfrica,Sudan,Tanzania,TrinidadandTobago, Ukraine, Zambia and Zimbabwe.

Selected outcomes

BoliviaBolivian cooperatives are using Recommendation No.193 to protect theirautonomy, which would be threatened by new cooperative laws.

Bosnia HerzegovinahasadoptednewcooperativelawsthatarebasedonRec-ommendationNo.193.

Burundiisabouttoadoptanewcooperativepolicypaper.

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Cameroonisabouttoadoptanewcooperativepolicypaper.

Canada (Québec)TheGovernmentoftheautonomousCanadianprovinceofQuébecadoptedinMarch2003acooperativedevelopmentpolicy statement,which isbasedonbroadconsultationsamongtheprincipalstakeholdersinvolvedincooperativedevelopment, and which shall contribute to Canada’s medium-term strat-egy“enroutetofullemployment”.ThepolicyquotesILORecommendationNo.193,whichcallsuponmemberStatesto“provideasupportivepolicyandlegalframeworkconsistentwiththenatureandfunctionofcooperatives,andguidedby the cooperativevalues andprinciples set outby the InternationalCo-operative Alliance.”

ChileTheUniversityofSantiagodeChilehasorganizedatrainingcourseonRec-ommendation No.193.

ChinaTheAll-ChinaFederationofSupplyandMarketingCooperatives,whichrep-resents160millionruralhouseholds inChina,has invitedCOOPtomakeapresentationinthenewRecommendationNo.193ontheoccasionofanationalconference on cooperative policy and law The conference agreed that the basic cooperativeprinciplesandvaluesoutlinedintheRecommendationwouldformtheconceptualbasisforChina’sfuturecooperativelegislation.Thisnewlawisexpectedtobepromulgatedinearly2006.

ColombiaTheColombiancooperativemovementusesParagraph8(1)(b)ofILORecom-mendationNo.193tocombatpseudo-cooperativesthataresetupbycompaniesto establish disguised employment relationships with former employees.ColombiahasincorporatedtheRecommendationintoitsnationaldevelopmentplan,andhasenactedanewcooperativelaw(Ley812of2003)basedontheRecommendation.

Croatia hasadoptednewcooperativelawsthatarebasedonRecommendationNo.193.

The European Commission has included references to RecommendationNo.193ina“Communication”to theEuropeanParliamentandhasincludedthe ILO in itsExpertCommitteeonCooperativeLaw.

Ethiopiahasadoptedanewcooperativedevelopmentpolicy,aswellasnewcooperative regulations based onRecommendationNo.193.

French-speaking AfricaThe“OrganisationfortheHarmonisationofBusinessLawinAfrica”(OHADA),

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whichrepresents16French-speakingcountriesinAfrica,iscurrentlyworkingwith ILO assistance on a common cooperative legal framework thatwouldtranslatetheprovisionsofILORecommendationNo.193intorevisedcoopera-tive legislation at the national level The common framework is expected to be adopted soon

GuineahasadoptednewcooperativelawsbasedonRecommendationNo.193.

Guinea-BissauInNovember2002,COOPorganizedacooperativepolicyadvisorymissiontoGuinea-Bissau,whichinitiatedaparticipatoryprocess leadingto theformu-lationofaNationalPolicyonCooperativeDevelopment,whichisfullybasedonRecommendationNo.193.This national policywas formally adopted bytheGovernmentinDecember2002.Guinea-BissauthusbecamethefirstILOmemberStatetotranslatethenewinstrumentintoanationalpolicydocument.Moreover,Government requested ILOassistance indesigningaproject thatwould support the implementation of the new policy, through cooperativedevelopmentinareassuchasagriculture,fisheries,entrepreneurshipandman-agement,micro-financeandprimaryeducation.

Hungary has drafted a new cooperative law based on RecommendationNo.193.

India (Orissa)OrissaStateinIndiahasadoptedanew,“parallel”cooperativelaw,whichismuch inkeepingwithRecommendationNo.193andprovides a soundbasisforautonomouscooperativesocieties.Thisisthefirstsuchinitiativeinatribalregionofthestate,andhasevokedmuchinterestinIndia.

India has adopted a new national cooperative development policy and a new multistatecooperativelawthatisstronglyinfluencedbythe“conclusions”ofthefirstdiscussionofRecommendationNo.193.Inaddition,theIndianGov-ernmenthas introducedadraftamendment to theConstitutionwhichwouldguarantee theautonomyofcooperatives.

JapanPartnersinJapan haveincludedRecommendationNo.193inthecurriculaofcooperativetraininginstitutionsandareusingtheRecommendationtopushfora new law on worker cooperatives

KenyaTheKenyancooperativesareusingRecommendationNo.193toprotecttheirautonomy,whichwouldbethreatenedbynewcooperativelaws.

Kyrgyzstanadoptedanewcooperativelawin2004basedonRecommenda-tionNo.193.

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Malaysia has finalized her national cooperative development policy on thebasis of Recommendation No.193.

Mauritius adoptedanewCooperativesSocietiesActin2005.

Moldova is revising its cooperative law on the basis of RecommendationNo.193.

Mongolia requestedILOassistanceinrevisingitscooperativelawinlinewithRecommendationNo.193.AnadvisorymissionwassentinFebruary2006.

RomaniaOn29August2002,COOPreceivedanurgentmessagefromtwoRomanianCooperativeFederations,askingtheILOforhelpinpreventingtheRomanianGovernmentfromadoptingan“emergencyordinance” thatwouldhavecon-siderablyreducedtheautonomyoftheRomaniancooperativemovement.ThisrequestwasaddressedtotheILObecausethecooperativefederationsconsid-eredtheordinanceaviolationofArticle2ofRecommendationNo.193.COOPthen hired a lawyer who prepared a detailed commentary on the emergency ordinance, with RecommendationNo.193 serving as the bottom line. As aresult,theadoptionoftheordinancewassuspended.

RussiaApreparatorymeetingorganizedby the Inter-parliamentarianUnionof theCommonwealthofIndependentStates(May2002),whichreceivedtechnicalsupport fromILOMoscowandCOOP,was followed inDecember2002byaparliamentaryhearingoncooperativedevelopment in theRussianDuma.ThetextofILORecommendationNo.193wasthemainsourceofargumentsandjustificationforproposedactioninfavourofcooperatives, inparticularinruralareas.Thehearingadoptedalonglistofconcreterecommendationsaddressed to theDuma, the RussianGovernment and others, calling for acomprehensivecooperativedevelopmentprogramme.PartnersinRussiahaveincluded RecommendationNo.193 in the curricula of cooperative traininginstitutions.

Serbia and Montenegro has elaborated a new cooperative act based on RecommendationNo.193.

SlovakiaThecooperativemovementhasusedtherelevantarticlesinRecommendationNo.193 to demand the equal treatment of cooperatives with other types ofbusinesses.

South AfricaTheSouthAfricanGovernmenthasadoptedacooperativedevelopmentpol-icy and strategy based upon Recommendation No.193, and has drafted anewcooperativelawthatwaspromulgatedinJune2005.ILOisassistingthe

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governmentinproducingalay-person’sguideonthenewlaw.SouthAfricahasalso designed a cooperative development strategy to implement the new policy and legislation

Swaziland has adopted a new cooperative law based on RecommendationNo.193, and launched a country-wide popularization campaign. In January2006, Swaziland promulgated new Cooperative Regulations.

Tanzania adopted a new cooperative act in 2003, and has requested ILOassistance in designing a comprehensive cooperative reform programme to implement the legal changes

Trinidad and Tobagohassetupataskforcetodesignacooperativedevelop-mentpolicyonthebasisofRecommendationNo.193.

TurkeyTheNationalUnionofConsumers’CooperativesinTurkeyhasusedthenewRecommendationtodefendthe(existing)rightofworkersinlargerenterprisestohavetheirown,workplace-basedconsumercooperativeswhichanew,draftlabourlawthreatenedtoabolish.Thefinallypromulgatedlabouract(No.4857of22May2003)maintainsthisright.

UgandadevelopedacooperativepolicybasedonRecommendationNo.193in2010.

Ukraineapprovedanewcooperativelawon10July2003,whichisbaseduponRecommendationNo.193.

United KingdomTheDepartmentforInternationalDevelopment(DFID)hassignedastrategicgrant agreement with the British cooperative movement to enable the latter to promoteRecommendationNo.193intheUK.TheUKCo-operativeCollegehasalreadypublishedaguideontheinstrument.TheDFIDmagazineDevelop-ments(April2005,printedin500,000copies)statedthat“Themostimportantrecentdevelopmentinternationallyforco-ops,however,hasbeentheadoptionin2002bytheInternationalLabourOrganizationofRecommendation193”.

UruguayTheUruguayan cooperatives are using the stipulations ofRecommendationNo.193 for a “benchmarking exercise” to check whether the four partiesconcerned (government, employers’ organizations, workers’ organizations,cooperatives)fulfiltherolesthathavebeenspecifiedintheRecommendation.Moreover,theRecommendationhasbeenusedtodevelopanactionplanfocus-ingonthreeareas:(i)improvingtheimageofcooperatives;(ii)supporttotheformationofnewcooperatives;and(iii)developmentofcooperativeextensionservices

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Vietnam amendeditscooperativelawin2003tofacilitatetheregistrationofcooperativesinlinewithRecommendationNo.193.

ZimbabweAlmostimmediatelyaftertheadoptionofRecommendationNo.193,theILOSub-RegionalOfficeinHararepreparedaprojectdocumentforthedesignofanewcooperativedevelopmentstrategyforZimbabwe,accordingtoapartici-patorymethodologydevelopedbyCOOP.TheprojectdocumentwasapprovedbyUNDPinAugust,tenprovincialandtwonationalpolicyworkshopswereorganized betweenSeptember andNovember, and the finalized cooperativedevelopmentstrategywasapprovedby theCabinet inMarch2004,andwasofficially launched in November 2005. UNDP is considering financing therevision of cooperative legislation in Zimbabwe. A documentary video oncooperatives inZimbabwehasalsobeenprepared.

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Annex IV:Annex IV: Highlights from capacity-building initiatives undertaken between 2006 and 2014 using Recommendation No. 193

Africa68

EthiopiaIn2010,theFederalCooperativeAgencyheldconsultationswithCOOPAFRICA regardingitsproposedrevisionoftheCooperativeProclamationandtheformu-lation of a new cooperative development policy

LesothoIn2009-2010COOPAFRICA provided technical assistance for the revision of the 1999CooperativeDevelopmentPolicyandthe2000CooperativeSocietiesAct,andthepreparationofanewpolicyforfinancialcooperatives.In2010/11theGovernmentundertook,withCOOPAFRICAsupport,anassessmentofthelikelyimpactofthefirsttwomeasuresontheongoingrestructuringofthecoopera-tivemovementandtherevisionofexistingcooperatives’by-laws,whichwillhelp devise effective implementation strategies for the new policies and law It alsoharmonizedthedraftfinancialcooperativespolicywiththeCentralBank’snewfinancialpolicy.Governmentapprovalwasexpectedduring2011.

MadagascarIn2008-9COOPAFRICAprovidedtechnicalsupporttoacooperativestakeholdertask force mandated to prepare a national policy on cooperatives

MozambiqueCOOPAFRICAprovidedtechnicalsupportin2008tothenetworkofcivilsocietyorganizations that was a driving force of the cooperative legal reform The new CooperativeLaw(Lei Geral das Cooperativas)wasadoptedbyParliamenton30April2009.

SwazilandCOOPAFRICAprovidedtechnicaladviceandguidancefor theformulationofaspecialActforsavingsandcreditcooperatives(SACCOS),completedinJune2010,andcontinuestoprovidetechnicalsupportfortheongoingrevisionoftheCooperativeDevelopmentPolicyandtheCooperativeSocietiesAct.

68 COOPAFRICA support for formulation or revision of cooperative policies and legislation,COOPAFRICAfactsheet(inCooperativeEnterprisesBuildaBetterWorld,ILO2012,p.35).

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UgandaTheCooperativeDevelopment Policy, formulated in 2009withCOOPAFRICA financialsupport,wasapprovedbygovernmentinMay2010.COOPAFRICA also provided financial support in 2010 for the revision of the 1991CooperativeSocietiesAct,whichwasexpectedtobecompletedin2011.

ZambiaAttherequestoftheAttorneyGeneral,COOPAFRICA assisted with the technical revisionsoftheCooperativeSocietiesActin2009.

ZanzibarFollowingtheparticipatoryformulationofacooperativedevelopmentpolicyin 2009withCOOPAFRICA’s technical and financial support, the draft policywasvalidatedatastakeholderconventioninAugust2010andthefinaldraftwassubmittedtotheGovernmentinSeptember2010.In2010COOPAFRICA also supportedtherevisionofthe1986CooperativeSocietiesActwithasimilarpar-ticipatoryprocess.Bothdocumentsarenowbeingreviewedbythegovernmentandtheirapprovalwasexpectedin2011.

Cooperative Roadmap for Egypt69

ThecooperativemovementinEgypt,particularlytheagriculturalcooperativesector,hasage-oldlegalandstructuralproblems.Thereisnoclearandcon-sistentcooperativepolicy.Therearesevendifferentcooperativelaws,oneforeachsectoralcooperativegroupandonefortheGeneralUnion.Therearealsosix different ministries dealing with the promotion of cooperatives and pro-vidingsupportservices,includingthePrimeMinistry(fortheGeneralUnion).ThispicturemakesrelationsbetweentheStateandthecooperativescompli-catedandcreatesconfusionsandwidespreaddifferentinterpretationsoflawsand regulations.The ILOfielded a consultancymission at the end of 2012to assess the cooperativedevelopment potential andpropose a step-by-stepapproachtodevelopingamember-based,democraticcooperativemovement.ThereportpreparedbytheILOconsultantwaspresentedtoalargestakehold-ers’conferenceinJanuary2013anddiscussedindetail.ItisrecommendedinthisreportthataNationalCommitteebesetup,thefirsttaskofwhichshouldbetodraftanationalcooperativedevelopmentpolicy,takingintoaccounttheprovisions of theUNGuidelines (2001) and ILORecommendationNo.193(2002).Onthebasisofthispolicydocument,anewcooperativelawneedstobedraftedandforwardedtotheGovernmentforconsiderationandsubmittedtotheParliament.

69 H.Polat:The cooperative roadmap in Egypt: The ILO contribution to the cooperative reform process in Egypt,ILOconsultant’sreport(ILO,2013).

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Asia

The PhilippinesThe Philippine Government used Recommendation No.193 in revising theCooperativeCodeofthePhilippines,No.6938,andpreparingthenewone,thePhilippineCooperativeCodeof2008,No.9520,whichcontainsfulltextofthecooperative principles

IndonesiaThe Government of Indonesia used Recommendation No.193 (which wastranslatedintoBahasain2003)torevisethecooperativelawof1992in2012(Law17/2012).TheILOwasconsultedabouthowtousetheRecommendationin preparing the new law

Sri LankaUpon request of the Sri Lanka Government, the ILO fielded a cooperativedevelopmentconsultantin2012and2013toprepareacooperativedevelopmentframework70 and, on the basis of this framework, assist theGovernment inpreparing a national cooperative policy paper71 along with a cooperative devel-opmentprojectdocumenttobesubmittedtointeresteddonors.InpreparingthepolicypapertheILOconsultantworkedwithanationaltechnicalcommitteeestablishedbytheMinistryofCooperativesandInternalTrade.Recommen-dationNo.193was taken as a basis in drafting the policypaper.Thepaperwasfinalizedby theMinistryandsubmitted to theCouncilofMinisters forapproval

Arab Countries

Occupied Palestinian TerritoryItwasdecidedduringajointUNDP/ILOworkshopentitled“ReviewofCoop-erativeSectorinthePalestinianTerritories:ChallengesandOpportunities”72 that the ILO’s technical assistance should continue to assist in the finaliza-tionprocessofthedraftcooperativelaw,editandprintthecooperativesectorstudyanddevelopanationalcooperativepolicy.AnILOmissionwasfieldedinNovember2009duringwhichthesaidsectorreviewstudywaseditedandmade ready forprinting,73 a national cooperative policy and implementation

70 H.Polat:The cooperative roadmap: Reforming and developing cooperatives in Sri Lanka (draft ILOreport),(ILO,2012).

71 National Policy on Cooperatives(finaldraftwithILOinputs)(2013).72 NoteforthefilebyH.HenryandI.Vocath,Sept.2008.73 S.SarsourandH.Polat(eds.):The Palestinian Cooperative Movement: Problems and prospects (ILO,2010).

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strategy74wasdraftedandaprojectdocumentwasformulated(PAL-COOP:Support to Palestinian cooperatives to create employment and income to reduce poverty).TheILOconsultant’ssecondmissionwastoassisttheMinis-tryofLabourtofinalizethedraftcooperativelawwithinputsprovidedbytheCooperativeBranch.ThecooperativelawwaslaterapprovedbythePalestinianCabinet.RecommendationNo.193wasusedinpreparingboththepolicypaperand the cooperative law

LebanonAs a response to the call of the International Year of Cooperatives (2012)proclaimed by the UN General Assembly in December 2009, theMinisterofAgricultureestablishedanational committee inMarch2011 toprepareareport (strategy)for theadvancementofcooperatives inLebanon.Thestrat-egydocument prepared by the national committee summarizes the existingpolicy environment as “not favourable to cooperative development”.On thebasisofthisdraftstrategy,theMinisterrequestedtheILORegionalOfficetoprovidetechnicalassistanceinfinalizingtheprocess.TheILORegionalOfficeassignedaseniorcooperativedevelopmentconsultantandanationalconsult-anttoreviewexistingpoliciesandlaw,undertakeaquicksituationandneedsanalysis,andproposearoadmapforacooperativereformprocessinlinewithRecommendationNo.193.

ThefindingsoftheILOteamweresharedwithrepresentativesofgovernment,thecooperativemovement,NGOsanddonors inanationalconsultationandverificationmeetingorganizedon11ApriljointlybytheMinistryofAgricul-tureandNationalCooperativeFederationwhichwassupportedtechnicallybytheILO.DuringthismeetingthedraftstrategywaspresentedbytheMinistryandaproposedroadmapforreformwaspresentedbytheILOconsultant.Theparticipantsalsodiscussedandcontributed toadraftSWOTanalysisof thecooperativemovementpreparedbytheILOconsultant.Therewasageneralconsensusontheanalysisof thepresentsituationandtheproposedwayfor-ward.Finally,theILOconsultantproposedasetoftenstrategicoutcomeswithmeasurabletargetstoimplementthecooperativereformprocess,includinganewcooperativelawtobepreparedinlinewithRecommendationNo.193,withthesupportofatechnicalcooperationproject.75

74 H. Polat: Reforming the Palestinian cooperatives: Cooperative development policy and implementation strategy(ILOdraftreport)(ILO,2009).

75 H. Polat: Report on the cooperative reform process in Lebanon: Towards a cooperative development policy and a new legislation(ILORegionalOfficeforArabStates,2012).

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Europe

ICA Europe, in partnership with the EU and Italian and German coopera-tives, organized several workshops in south-eastern Europe to discuss howtoimprovecooperativepolicyandlegislation.RecommendationNo.193wasusedintheseworkshopsasaguide.InaworkshoporganizedinMontenegroin2012,forinstance,anewlegalframeworkforcooperativesinMontenegroandtheBalkanswasdiscussed.76AnEU-fundedprojectstartedin2011,whichhadthreeobjectives,oneofthembeinglegislativesupportinthepreparationofgeneralandotherrelevantsector-basedlawsoncooperativeenterprisesforruraldevelopment.77

InTurkeytheGovernmentstartedpreparinganationalcooperativedevelop-mentstrategyin2010inconsultationwiththecooperativemovement.Inthedocument,referencewasmadetoRecommendationNo.193alongwithotherinternational instruments. The strategy identified seven priorities, amongwhich improvement of cooperative legislation in line with the international instrumentswashighlighted.Thestrategypaperwascompleted,approvedbytheGovernmentandpublicizedin2012.78

Latin America

RecommendationNo.193hashadanimportantimpactonworkercooperativesinLatinAmericancountries.Severaltradeunionrepresentativescomplainedaboutthemisuseofcooperativesduringtheprocessofchangingtheownershipmodalityofcompaniesinthecaseofplantclosures.TheILOorganizedspe-cialworkshopfortradeunionrepresentativestodiscusshowtocombatpseudocooperatives.ItsimpactinArgentinawasexplainedintheCICOPAnewsletteras follows79:

Where plants are closed down, worker cooperatives reopen them. Out of 16,000 cooperatives in Argentina, half of them are worker cooperatives. They created 300,000 jobs and account for 10% of the gross domestic product (GDP). Therefore, worker cooperatives mean to recover jobs with dignity.

76 CooperativeConference:Thecaseforgatewaycooperatives inMontenegroandtheBalkans:Reflectionsanddiscussions,3July2012,Podgorica,Montenegro.See:http://ica.coop/en/events/case-gateway-co-operatives-montenegro-and-balkans.

77 Support to Comprehensive Rural Development inMontenegro through rehabilitation of theCooperativeSystem.See:http://www.euricse.eu/en/node/1941

78 Turkish Cooperative Strategy and Action Plan 2012-2016(MinistryofCustomsandTrade,2012).Availableat:http://social.un.org/coopsyear/documents/Turkish-cooperatives-action-plan2012.pdf

79 F.Silveira:“Workercooperativesrehabilitatebothemploymentanddignity”,inWork Together,CICOPAGlobalInformationMagazine(2011,No.4),p.17.

http://ica.coop/en/events/case-gateway-co-operatives-montenegro-and-balkans

http://ica.coop/en/events/case-gateway-co-operatives-montenegro-and-balkans

http://www.euricse.eu/en/node/1941

http://social.un.org/coopsyear/documents/Turkish-cooperatives-action-plan2012.pdf

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Annex V:Annex V: Specific impacts of Recommendation No. 193 on the activities of employers’ and workers’ organizations

InPart IV,RecommendationNo.193givesaspecificrole toemployers’andworkers’ organizations in promoting cooperatives. Paragraph 14 says that“Employers’andworkers’organizations,recognizingthesignificanceofcoop-eratives for the attainment of sustainable development goals, should seek,togetherwithcooperativeorganizations,waysandmeansofcooperativepro-motion”.Furthermore, theRecommendationelaborateswhatemployers’andworkers’organizations’shoulddotopromoteandsupportcooperatives.

Itwasparticularlybecauseof theseprovisionsthat theILO’ssocialpartnersIOE and ITUC started payingmore attention to their relationshipswith thecooperativemovement.Tradeunions’historicalclosenesstocooperativeshascarriedoveranewandmoreconstructiveplatform.ThehandbookpreparedbytheILOCooperativeBranchtoassisttradeunionsinpromotingcoopera-tivesfortheirmembersattractedmanytradeunionorganizersandtrainers.80 InpartnershipwiththeITUC’sregionalorganizations,theILOorganizedtworegionalworkshops,inAsiaandAfrica,respectively,toinformtheirmemberorganizationsabouttheRecommendation.InthetwoworkshopsorganizedinAsiaandAfricaabackgroundpaperwaspresentedontradeunionsandcooper-atives,81 highlighting the areas for collaboration and elaborating the provisions ofRecommendationNo193.

Paragraph9oftheRecommendation,abouttheimportantroletobeplayedbycooperativesintransformingtheinformaleconomyintolegallyprotectedwork,wastakenbytheCooperativeBranchasastartingpointtofurtherstrengthenthe trade union–cooperative partnership. A new subregional project, SYN-DICOOP,wasdesigned in2004 for fourAfricancountries toorganize theirinformaleconomyworkersthroughcooperative–tradeunionjointaction.82 A specialhandbookwaspreparedtohelptradeunionorganizers inorganizingtheinformaleconomyworkersthroughcooperatives.83

80 G.Tchami:Handbook on cooperatives for use by workers’ organizations(Geneva,ILO,2007).81 H. Polat: Background paper on trade unions and cooperatives: Some communalities and

differences,ILO/ITUCjointworkshops,Singapore2004andNairobi2009.82 SYNDICOOP–PovertyReductionamongUnprotected InformalEconomyWorkers throughTrade Union-Cooperative Joint Action, implemented in partnership with ILO COOP andACTRAV,ITUCandICAbetween2004and2006.

83 S.Smith:Let’s organize!: A SYNDICOOP handbook for trade unions and cooperatives about organizing workers in the informal economy(ILO,ITUCandICA,2006).

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InDecember 2009 a subregionalworkshopwas organized for the heads ofemployers’ organizations by thePan-AfricanEmployers’Confederation, theFederationofKenyanEmployers(FKE)andtheILO’sCOOPAFRICA programme Theobjectiveoftheworkshopwas,amongothers,toagreeonpracticalwaysofpromoting and strengthening collaboration between employers’ organizations andcooperativesinthecontextofRecommendationNo.193.84

The specific impacts of Recommendation No.193 on worker cooperativesshould particularly be highlighted. Taking the Recommendation as a basis,CICOPAprepareditsWorld Declaration on Worker Cooperatives,whichwasapprovedbytheICAGeneralAssemblyin2005.85 It was a practical adaptation foraspecifictypeofcooperative.

84 See: http://www.ilo.org/public/english//employment/ent/coop/africa/download/employers_org_coop pdf

85 Availableat:www.cicopa.coop/IMG/pdf/Declaration_approved_by_ICA_EN-2.pdf

http://www.ilo.org/public/english/employment/ent/coop/africa/download/employers_org_coop.pdf

http://www.ilo.org/public/english/employment/ent/coop/africa/download/employers_org_coop.pdf

http://www.cicopa.coop/IMG/pdf/Declaration_approved_by_ICA_EN-2.pdf

The Story of the ILO’s Promotionof Cooperatives Recommendation, 2002 (No.193)

The

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Cooperatives Unit

International Labour OfficeRoute des Morillons 4CH-1211 Geneva 22SwitzerlandTel. +41 22 799 7095Fax +41 22 799 8572

[email protected] www.ilo.org/coop

For information, please contact :

International Labour Standards Department

International Labour OfficeRoute de Morillons 4CH-1211 Geneva 22

SwitzerlandTel. +41 (0)22 799 72 49Fax +41 (0)22 799 67 71

[email protected]/normes

There is a renaissance of interest in cooperatives, as democratically owned and controlled enterprises, in achieving socially inclusive sustainable development.

In June 2002 the International Labour Conference adopted the Promotion of Cooperatives Recommendation, 2002 (No. 193).

This report sets out to answer some key questions on the standard:

• Has it played a role in the revival of cooperative enterprises around the world?

• Has it managed to provide a practical and contemporary framework for the development of new cooperative legislation and policies?

• How many countries have used it in revising and reforming their cooperative legislation and policies?

In addition, the report provides an overview of:

• The reasons as to why an update to an earlier standard on cooperatives was needed;

• The process towards the adoption of the new standard;• How Recommendation No. 193 has been used since its adoption; and • The impact it has had on legislation, policies and practices around

the world.

the story of the ilo’s promotion of cooperatives recommendation, 2002 · pdf...

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