Global

Cooperative
Issues

Global Issues in Cooperatives

PARAMJIT SHARMA
 Global
Cooperative
Relevance of Issues
Cooperatives

Credit Movement to farmers

Largest Human Force after UNO
Collective Farming
Consumers Cooperatives
Contribution of Democratic Institutions
Cooperatives. Transparent Organizations
Concern For Community
Dairy/Sugar/Housing…..Coops
Alleviation of Poverty
Creation of productive
employment
PARAMJIT SHARMA
 Global
Cooperative
Global Issues in Cooperatives Issues

1 Initiatives by ICA
2 Basil –ii initiatives
3 New Models of Cooperatives
4 Global Agencies Assisting Cooperatives
5 Cooperatives Mergers

PARAMJIT SHARMA
 Global
Cooperative

1 Initiatives by ICA Issues

1 Global HRD Networking

2 300 Global Cooperative Organizations
3 Global Trading Organization
4 Global Accounting Standards
5 Global Warming
6 Global Cooperative Governance
7 Global Employment
8 International Cooperative Banking Association

PARAMJIT SHARMA
 Global
Cooperative
Issues

Global Network for Cooperatives

Human Resource Development

Global HRD Networking for Cooperatives

GHRD Portal – phase 1

GHRD portal – phase 2

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 Global
Cooperative
Issues

PARAMJIT SHARMA
 Global
Cooperative
Issues

Methodology

1 Structure
2 Type
3 Country
4 Turnover
5 Assets
6 Date Founded
7 Membership

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 Global
Cooperative
Issues

1 Formulation of Coop International Trade Organization

1 Registration

2 Membership

3 Capital

4 Location

5 Objectives &
Activities

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 Global
Cooperative
Issues

1 Formulation Of a New Coop International Trade Organization

Registration

New International Cooperative Trade

Organization may be Registered

PARAMJIT SHARMA
 Global
Cooperative
Issues

1 Formulation Of a New Coop International Trade Organization

Capital

Capital Requirements for the new

Organization may be Estimated to
Fulfill its Block and Working
Capital Needs

PARAMJIT SHARMA
 Global
Cooperative
Issues

1 Formulation Of a New Coop International Trade Organization

Location

It may be located at any of the

Countries with Liberal Trade
Policies having at least Regional
Centers at five Continents

PARAMJIT SHARMA
 Global
Cooperative
Issues

1 Formulation Of a New Coop International Trade Organization

Objectives of ICTO
To facilitate Global Inter Cooperative trade

To provide information about demand in Global Market

To manage better prices for Commodities to Coops

To facilitate global e-trading to cooperatives

To network cooperatives for technology transfer

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 Global
Cooperative
Issues

2 Membership

Global
Cooperatives in

•Agricultural
•Marketing
•Consumers
•Industrial
•Sugar
•Spinning
•Handicraft
•Handloom etc
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 Global
Cooperative
Issues -Membership

Americas Africa

International Cooperative
Trade Organization
(ICTO)

Asia
Europe
Oceania
Oceania
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 Global
Cooperative
Issues

3 Global Trading

At Present there is no Cooperative Organization

at International Level which can Network Coop
Trading Organizations and facilitate them
to Export/Import their products…………

Therefore, there is a need for

International Cooperative Trade Organization (ICTO)

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 Global
Cooperative
Issues

4 Cooperative Online Trading

ICTO
Portal
www.globalcto.coop

Creating a Global Portal

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 Global
Cooperative
Issues -Membership

Online
Americas Members Africa

ICTO
Online Portal
Members www.globalcto.coop

Asia
Europe
Oceania
Oceania
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 Global
Cooperative
Issues --Home Page

Home Page

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 Global
Cooperative
Issues --Home Page

About Us
(ICTO)

Mission
Vision
Activities
Membership

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 Global
Cooperative
Issues Member’s Profile

•About Us (Members)
•Business Sector
•Products Importing/
Exporting
•Pricing Module
•Quality Module
•Certification/Rating
•Products Requirements
•Trading Tenders
•Location
•Bankers
•Supply Chain
•Miscellaneous
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 Global
Cooperative
Issues Member’s Profile

•About Us (Members)

Name
History
BOD’S
Financial Results

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 Global
Cooperative
Issues Member’s Profile

Business Sector

•Agriculture
•Industrial
•Handloom
•Handicraft
•Dairy
•Processing
•Consumers
•Software
•Hardware
•Electronics…. etc

PARAMJIT SHARMA
 Global
Cooperative
Issues Member’s Profile

Products Importing/
Exporting

Sugar
Pulses
Fruits
Vegetables
Flowers
Computers
Garments
Ceramics
Cotton
Fertilizers……..etc
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 Global
Cooperative
Issues Member’s Profile

•Certification/Rating

Organizational Rating
Products Rating
Financial Credibility
Certification
World Ranking

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 Global
Cooperative
Issues Member’s Profile

•Location of Members

Continent
Country
City
Population
Infrastructure
Airport
Seaport
PARAMJIT SHARMA
 Global
Cooperative
Issues

Search Engine
Organization Nafed

Country India

Business Type Agri Marketing

Commodity Onion

Import

Export To Sri Lanka

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 Global
Cooperative
Issues

Service Providers--Registration

•Bankers
•Transportation
•Raw Materials
•Labour
•Warehousing
•Telecommunication
•Manpower
•Marketing
•Legal Matters etc

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 Global
Cooperative
Issues

Discussion Forum

Feedback

FAQ’s Other
Features
Advertisement

Global Tenders

News & Events

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 Global
Cooperative
Issues

“Let us decide to have a New Beginning for Cooperatives”

through

1) Initiating the process of Registering ‘ICTO’

2) Developing portal www.globalcto.coop for

Online Cooperative Trading

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 Global
Cooperative
Issues

Global Cooperative Accounting Standards

International Accounting Standards

Indian Accounting Standards
International Cooperative Accounting Standards

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 Global
Formation of International Cooperative
Issues
Cooperative Banking Association

1 Organization to assist Coop Banks

2 To improve the value of services to members…
3 to work on development issues and collaborations
4 to identify 100 top banking organizations
5 develop promotional and educational Material

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 Global
Cooperative
Issues

Basil-ii initiatives

PARAMJIT SHARMA
 Global
Cooperative
Issues

Top 10 concerns of bankers

1. Complex Financial Instruments

2. Credit risk
3. Macro economy
4. Insurance
5. Business continuation
6. International regulation
7. Equity markets
8. Corporate governance
9. Interest rates
10. Political shocks

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 Global
Cooperative
Regulatory developments – Issues

Basel II

• Complex Financial Instruments

• Credit risk
• Macro economy
• Insurance
• Business continuation
• International regulation
• Equity markets
• Corporate governance

• Interest rates

• Political shocks
PARAMJIT SHARMA
 Global
Basel II – Three Pillars Cooperative
Issues

Minimum Capital Charges: Minimum capital requirements based on market,

credit and operational risk to (a) reduce risk of failure by cushioning against
First Pillar
losses and (b) provide continuing access to financial markets to meet liquidity
needs, and (c) provide incentives for prudent risk management (¶¶ 40-718)

Supervisory Review: Qualitative supervision by regulators of internal bank

Second Pillar risk control and capital assessment process (¶¶ 719-807), including supervisory
power to require banks to hold more capital than required under the First Pillar

Market Discipline: New public disclosure requirements to compel improved

Third Pillar
bank risk management (¶¶ 808-822)

PARAMJIT SHARMA
 Global
Cooperative
Issues

Minimum
Risk-weighted
Capital = 8% of Exposures
Requirement

Operational
Market Risk Credit Risk
Risk
Potential that a bank Risk of direct or
Risk of losses in on
borrower or indirect loss resulting
and off balance
counterparty will fail from inadequate or
sheet positions
to meet its failed internal
arising from
obligations in processes, people
movements in
accordance with and systems or
market prices
agreed terms external events

No Change Major New element

Changes added

Basel II – Encompasses enterprise risk

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 Global
Cooperative
Issues

International Agencies Assisting

Cooperatives

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 Global
INTERNATIONAL DEVELOPMENT Cooperative
AGENCIES Issues

ILO
*ESTD-1919 FAO
*RECOM-127/193 *ESTD-1943
*COOP. AGR. DEV.
*NPA-1969 WOCCU *DIST. OF FOOD &
*TURIN CEN. *ESTD-1984 AGR. PRODS.
*MATCOM *WORLD CREDIT
UNION
*COPNET *PROMOTE EC. &
SOCIAL DEV.
*UNDERTAKE DEV.
PROJECTS
ICA *INTEGRATE COPAC
CREDIT *PROMOTE AID TO COOPS
*ESTD-1895
COOPS. *UNDERTAKE STUDIES
*FOUR REG. OFFICES
*STRUCTL. DEVELOPMENT
*PRINCIPLES
*PREP. COUNTRY
*CORD.INT. AGENCY
STATUS REPORTS
*TRG. &DEV.
*ADVOCACY
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 Global
Cooperative
Issues

Cooperative Mergers

PARAMJIT SHARMA
 Global
Cooperative
Issues
Cooperative Mergers

1 Coop Norden
2 Coop Group
3 Saraswat Bank

PARAMJIT SHARMA
 Coop Norden 2002 – aGlobal
Cooperative

Cooperative group Issues

Coop
FDB KF
NKL

38%
20% 42%
Coop
Norden AB

100% 100% 100%

Coop Coop Coop

Norge AS Danmark A/S Sverige AB

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 Coop Norden Global
Cooperative
Issues

• Turnover to consumers around 76 billion SEK

• Including retailing in local cooperatives
the turnover is near 100 billion SEK
• Substantial share of everyday commodities
market;
Sweden 24%, Denmark 38%, Norway 25%
• 1 100 shops (plus 1 900 in local cooperatives)
• 26 000 employees
(plus 25 000 in local cooperatives)

PARAMJIT SHARMA
 Global
Cooperative
Issues

2 Cooperative Group

Retails and Wholesale Societies merged

In 1998 to form a cooperative group

PARAMJIT SHARMA
 Global
Cooperative
Issues

3 Saraswat Bank

Rs 25000 Cr turnover in 2011

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 Global
Cooperative
Issues

New Models for Cooperatives

PARAMJIT SHARMA
 Global
Cooperative
Issues

New Areas for Cooperative Development

Traditional Areas Other Areas New Areas

CREDIT Rural Electrification Baby Sitting

CONSUMERS Collective Farming Health Care
HOUSING
Coop Companies Car Sharing
SUGAR
DAIRY
Floriculture Education
FISHERIES Tourism Funeral Service
TRANSPORT Social Forestry Social Security
INDUSTRIAL New Generation Water Preservation
MARKETING Utility Coops Environment Preservation
TRIBAL Processing Regenerative Energies
WORKERS Insurance

PARAMJIT SHARMA
 Global
Cooperative
Issues

PARAMJIT SHARMA