Global Cooperative IssuesGlobal Issues in Cooperatives PARAMJIT SHARMA Relevance of Global Cooperative 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 Issues in Cooperatives Global Cooperative Issues 1 Initiatives by ICA 2 Basil –ii initiatives 3 New Models of Cooperatives 4 Global Agencies Assisting Cooperatives 5 Cooperatives Mergers PARAMJIT SHARMA 1 Initiatives by ICA Global Cooperative 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 PARAMJIT SHARMA Global Cooperative Issues PARAMJIT SHARMA Global Cooperative Issues Methodology 1 Structure 2 Type 3 Country 4 Turnover 5 Assets 6 Date Founded 7 Membership PARAMJIT SHARMA Global Cooperative Issues 1 Formulation of Coop International Trade Organization 1 Registration 2 Membership 3 Capital 4 Location 5 Objectives & Activities PARAMJIT SHARMA 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 PARAMJIT SHARMA Global Cooperative Issues 2 Membership Global Cooperatives in •Agricultural •Marketing •Consumers •Industrial •Sugar •Spinning •Handicraft •Handloom etc PARAMJIT SHARMA Global Cooperative Issues -Membership Americas Africa International Cooperative Trade Organization (ICTO) Europe PARAMJIT SHARMA Asia Oceania Oceania 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) PARAMJIT SHARMA Global Cooperative Issues 4 Cooperative Online Trading ICTO Portal www.globalcto.coop Creating a Global Portal PARAMJIT SHARMA Global Cooperative Issues -Membership Americas Online Members Africa Online Members ICTO Portal www.globalcto.coop Europe PARAMJIT SHARMA Asia Oceania Oceania Global Cooperative Issues --Home Page Home Page PARAMJIT SHARMA Global Cooperative Issues --Home Page About Us (ICTO) Mission Vision Activities Membership PARAMJIT SHARMA 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 PARAMJIT SHARMA Global Cooperative Issues Member’s Profile •About Us (Members) Name History BOD’S Financial Results PARAMJIT SHARMA 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 PARAMJIT SHARMA Global Cooperative Issues Member’s Profile •Certification/Rating Organizational Rating Products Rating Financial Credibility Certification World Ranking PARAMJIT SHARMA Global Cooperative Issues Member’s Profile •Location of Members Continent Country City Population Infrastructure Airport Seaport PARAMJIT SHARMA Global Cooperative Issues Search Engine Organization Country Business Type Nafed India Agri Marketing Onion Commodity Import Export PARAMJIT SHARMA To Sri Lanka Global Cooperative Issues Service Providers--Registration •Bankers •Transportation •Raw Materials •Labour •Warehousing •Telecommunication •Manpower •Marketing •Legal Matters etc PARAMJIT SHARMA Global Cooperative Issues Discussion Forum Feedback FAQ’s Advertisement Global Tenders News & Events PARAMJIT SHARMA Other Features 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 PARAMJIT SHARMA Global Cooperative Issues Global Cooperative Accounting Standards International Accounting Standards Indian Accounting Standards International Cooperative Accounting Standards PARAMJIT SHARMA Formation of International Cooperative Banking Association Global Cooperative Issues 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 PARAMJIT SHARMA 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 PARAMJIT SHARMA Regulatory developments – Basel II Global Cooperative Issues • • • • • • • • Complex Financial Instruments Credit risk Macro economy Insurance Business continuation International regulation Equity markets Corporate governance • Interest rates • Political shocks PARAMJIT SHARMA Basel II – Three Pillars Global Cooperative Issues First Pillar Minimum Capital Charges: Minimum capital requirements based on market, credit and operational risk to (a) reduce risk of failure by cushioning against losses and (b) provide continuing access to financial markets to meet liquidity needs, and (c) provide incentives for prudent risk management (¶¶ 40-718) Second Pillar Supervisory Review: Qualitative supervision by regulators of internal bank risk control and capital assessment process (¶¶ 719-807), including supervisory power to require banks to hold more capital than required under the First Pillar Third Pillar Market Discipline: New public disclosure requirements to compel improved bank risk management (¶¶ 808-822) PARAMJIT SHARMA Global Cooperative Issues Minimum Capital Requirement = 8% of Risk-weighted Exposures Market Risk Risk of losses in on and off balance sheet positions arising from movements in market prices Credit Risk Potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms Operational Risk Risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or external events No Change Major Changes New element added Basel II – Encompasses enterprise risk PARAMJIT SHARMA Global Cooperative Issues International Agencies Assisting Cooperatives PARAMJIT SHARMA INTERNATIONAL DEVELOPMENT AGENCIES Global Cooperative Issues ILO *ESTD-1919 *RECOM-127/193 *NPA-1969 *TURIN CEN. *MATCOM *COPNET FAO WOCCU *ESTD-1984 *WORLD CREDIT UNION *PROMOTE EC. & SOCIAL DEV. *UNDERTAKE DEV. PROJECTS *INTEGRATE CREDIT COOPS. *ESTD-1943 *COOP. AGR. DEV. *DIST. OF FOOD & AGR. PRODS. ICA *ESTD-1895 *FOUR REG. OFFICES *PRINCIPLES *CORD.INT. AGENCY *TRG. &DEV. *ADVOCACY PARAMJIT SHARMA COPAC *PROMOTE AID TO COOPS *UNDERTAKE STUDIES *STRUCTL. DEVELOPMENT *PREP. COUNTRY STATUS REPORTS Global Cooperative Issues Cooperative Mergers PARAMJIT SHARMA Cooperative Mergers Global Cooperative Issues 1 Coop Norden 2 Coop Group 3 Saraswat Bank PARAMJIT SHARMA Coop Norden 2002 – aGlobal Cooperative Cooperative group Issues Coop NKL 20% FDB 38% Coop Norden AB 100% 100% Coop Danmark A/S 100% KF 42% Coop Norge AS Coop Sverige AB PARAMJIT SHARMA 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 PARAMJIT SHARMA Global Cooperative Issues New Models for Cooperatives PARAMJIT SHARMA Global Cooperative Issues New Areas for Cooperative Development Traditional Areas CREDIT CONSUMERS HOUSING SUGAR DAIRY FISHERIES TRANSPORT INDUSTRIAL MARKETING TRIBAL WORKERS PARAMJIT SHARMA Other Areas Rural Electrification Collective Farming Coop Companies Floriculture Tourism Social Forestry New Generation Utility Coops Processing Insurance New Areas Baby Sitting Health Care Car Sharing Education Funeral Service Social Security Water Preservation Environment Preservation Regenerative Energies Global Cooperative Issues PARAMJIT SHARMA