The Hindu : `Different from MNCs'

Online edition of India's National Newspaper
Tuesday, Feb 03, 2004

National

National

`Different from MNCs'

By Our Special Correspondent

NEW DELHI, FEB. 2 . The President of the International Cooperative Alliance, Ivano Barberini, today said cooperative societies were different from multi-national companies in that they were "responsible" and "ethical" and linked to the community.

Speaking to The Hindu on the sidelines of the four-day Seventh Asia-Pacific Conference of Cooperative Ministers here today on `Establishing Supporting Cooperative Legislation and Policy for Sustainable Cooperative Development,' Mr. Barberini said that in the era of liberalisation, cooperatives had to compete with other businesses.

"The cooperative legislation is to ensure that they keep firm the cooperative identity and have the tools to compete in the market."

He said that in the global competition, cooperatives took active part in local communities and local development much better than MNCs, with a stronger commitment and social responsibility. However, everywhere cooperatives had to face a very difficult challenge to carry out their social role for which they must perform at the same level, if not better, than the best companies in the business.

Understanding the entrepreneurial character of cooperatives was the fundamental basis for any discussion on their role in local markets and local developments. "Our role is to promote the international references established by the General Assembly of the ICA and adopted by the International Labour Organisation. The enabling legislation is based on democratic principles and fundamental rights represented by the national constitutions."

Mr. Barberini said cooperatives needed a favourable environment for their development. State control must respect the autonomy and independence of cooperatives.

The draft Joint Declaration of the Conference recognises that cooperatives serve the economic interests of people and takes note of the fact that enabling legislations have to be matched by supportive government measures.

The draft declaration calls upon Governments to hasten the process of legislative and policy reforms for the autonomy and independence of cooperatives, for creating a favourable environment for the balanced and sustained growth of the cooperatives in all sectors of the economy to ensure the socio-economic development of the people.

The declaration would be finalised and adopted at the New Delhi conference, which ends on February 5. In the meantime, the Cooperative Ministers would visit several cooperatives in different States.

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