Promoting Grassroots Democracy, Addressing Community Conflicts & Reducing Terrorism

Self Help: U.S. CDOs have a strong track record in highly conflict-ridden countries by organizing an array of self-help economic activities. Cooperatives build solidarity and just civil societies, representing the American and universal ideals of freedom, tolerance and generosity. Because we are not primarily engaged in relief, cooperative development organizations can assist USAID in quick-starting the development process. Our approach provides for grassroots, democratic governance, local control and ownership. U.S. cooperatives firmly believe in encouraging the capacity of individuals and groups to drive their own development, and do not rely on relief or outside donors to realize a better future.

Emphasis on Markets & the Economy: U.S. cooperatives emphasize markets; financial systems controlled by members and communities; and participation in economic activities in which cooperative members invest -- even if very little -- and share in the risks and returns of a group business. We design programs where there are no handouts and insist on user fees/in-kind contributions. Cooperatives can help monetize the economy and mobilize secure savings, not just distribute micro-credits.

Economies of Scale: For small producers, cooperatives are essential to achieve economies of scale from the farm to market. This role is crucial to achieve the equity in agricultural development central to sustained economic growth. Cooperatives do this by aggregating volumes sufficient to compete for markets, purchase inputs and attract professionals. By establishing remunerative markets, cooperatives encourage and support farmer investments in modern technology and in producing in commercial quantities and quality to meet market demands.

Grassroots Democracies: Whether through cooperatives or associations, we design programs from the ground up, centered on group businesses that can be profitable. We do not see cooperatives as non-profit entities, or ways for donors to put money into the hands people. Finally, we believe that members must define their own needs and have a personal stake in the group business. Cooperative development builds and creates economic cooperation in fractured societies with participation open to all including women, ethnic minorities and those practicing different religions. Cooperatives have been particularly effective at building economic and social ties across religious and ethnic barriers, and mainstreaming poor and discriminated groups into the conventional economies.

Microenterprise in Muslem Countries: U.S. cooperative development organizations uniquely have a strong record for quickly dispersing microenterprise loans in Muslem countries despite Islamic injunctions against charging interest to cover the costs of programs. These on-going programs can be immediately ramped up to demonstrate America’s commitment to grassroots, self-help economic development to the poor and disillusioned. The methodologies are refined and can be quickly adapted for other countries.

Group Businesses: Through group businesses that are democratic and have cross ethnic memberships, large numbers of farmers and low-income people can enter mainstream economies, such as exporting coffee, natural foods, cheese and other non-traditional products. Cooperatives have perfected development approaches that organize low-income people into associations and successful businesses and link them to world markets.

Representing America: U.S. based cooperatives represent the “best of America” with over 120 million members, many of whom support overseas programs through national trade associations and other broad-based cooperative organizations. Through worldwide affiliations with Europe, Japan, Canada, and developing and market transition countries on every continent, cooperatives can be part of people-to-people coalitions against terrorism and in support of more just societies.

U.S. cooperatives have the largest communications network of rural Americans to enlist them in a long-term struggle that will require a heightened understanding of U.S. global engagement. Some 10,000 farmers and other volunteers have directly participated in cooperative development work overseas. They bring a unique perspective of “people-to-people diplomacy” and can talk about the importance of foreign assistance to community networks including churches and service clubs. With 80 million members, credit unions can provide focused messages on savings and credit needs in poor and frontline countries that Americans and Congressional leaders understand and support.

For more information, click on the following links:

Cooperatives in Confict and Failed States
by Ted Weihe, OCDC
Click here to read the paper.

Cooperatives: An Investment in Democracy and Economic Growth
by ACDI/VOCA
Click here to read the article.

Cooperatives and Associations: Critical Tools in Crisis Recovery
by Susan G. Schram, ACDI/VOCA
Click here to read the article.

Lessons from CLUSA’s Civil Society Program in Guinea
To read the article, go to http://www.usaid.gov/gn/democracy/news/clusa/article.htm.

CLUSA Credit Intermediation Successful in Maritime Guinea
To read the technical article go to http://www.usaid.gov/gn/democracy/news/031222_clusa_ics/technicalarticle.htm
To read the lessons learned, go to http://www.usaid.gov/gn/democracy/news/031222_clusa_ics/lessonslearned.htm

Rural Electrification
NRECA International promotes democracy and fosters a positive image of the US in developing countries through the development of electricity cooperatives that provide reliable electricity service to areas that have been historically underserved by traditional service providers. Electric cooperatives are fundamentally democratic in nature and serve as a foundation for community development and participation. Rural electrification has a direct and quantifiable economic benefit to people in these areas. A recent World Bank study on rural electrification and development in the Philippines concluded that benefits attributable to energy savings for lighting and entertainment, increased income due to higher levels of education, improved home business productivity, and value of added leisure time amounted to from $50 to $80 per household per month.