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Co-operatives in Fiji

The recent lengthy media coverage by The Fiji Times of the Fijians Helping Fiji Co-operative Ltd (FHFCL) is a wake-up call for responsible members of coop.fiji or Fiji National Co-operative Federation referred to in the 1996 Act as the National Co-operative Federation (NCF). The new name changed from the Fiji Co-operative Union Ltd (FCUL) has not been used widely, although enacted. Needless to say that support for co-operatives has somewhat lost momentum until the American version Americans Helping America (AHA) under FHFCL conduit emerged.

For those of us who lived with co-operatives from our villages, later in urban centres and practised co-operatives throughout our working life, the introduction of FHFCL is a wake-up call. Flagships of co-operatives in Fiji; are Cane Farmers’ Co-operative Savings & Loans Association Ltd (CCSLA), Fiji Teachers’ Union (FTU) Thrift and Credit Co-operative, Rewa Dairy Co-op, Natures’ Way, MIW Farming and other medium and smaller co-ops. Collectively they have assets with an estimated value of over a billion Fiji dollars. In 2008 coop.fiji had a total of 443 co-ops — consumer, consumer marketing, agricultural product and marketing, savings and loans, land purchasing/holdings and others. Membership stood at 20, 376 (2008 Regional Revitalisation Conference Report page 45).

The Fiji Government-sponsored Regional Asia Pacific, International Co-operative Alliance (AP/ICA) Pacific Revitalisation Conference on July 7-9, 2008 was at what is now the Novotel Conference Centre, Lami. It was the last noteworthy Pacific co-op gathering including Australia, NZ, Malaysia, Japan, South Korea, India, PNG and Fiji. Other Pacific Islands could not attend because of a breakdown in communication by the then Co-op Department. ILO participated through what now appears to be the defunct Integrated Human Resources Development Program (IHRDP).

The then Interim Minister for Industry, Trade, Tourism and Communication, Tom Ricketts, said at that conference: “It is hoped that in years to come, co-operatives will grow not only in size, but also in the range and coverage of their activities more so to find a favourable policy environment” (ibid: 40).

Cynically, one may say that government was not serious then as the military had just taken power with interim ministers. Realistically an institution like government is only serious and legitimate if it acts on their recorded speeches especially policy matters. USP was approached to put in a paper to suggest a “favourable policy environment” mentioned above.

The paper was rejected by the PSC members who were consumed with other matters in 2010. It is understood by co-op members in Fiji that amendments to the 1996 Act have been stalled although Minister Faiyaz Koya, who is now responsible mentioned last year, the need to amend the Act and to be debated in Parliament. We the ordinary members of coop.fiji/NCF/FCUL await the Bill anxiously because it affects more than 100,000 citizens ie the individual members and their families.

The mixing of data on co-ops and SMEs needs to be clarified by the ministry responsible in Parliament and at an opening occasion on SMEs in Suva, reported on TV1. It highlighted the serious deficiency of knowledge and details about co-operatives in Fiji which were established in 1947.

Two that come to mind which have survived are the Lutu Co-op and one at Matuku in Lau. Both very isolated at the time.

Needless to say billions of dollars have been invested on co-op development since 1947. The loss of $F20 million in the mid and late 70s was tried by Judge Tikaram in the High Court. Surely it shows the funds that were invested but mismanaged through lack of experiences at middle and senior management.

The news of AHA and FHFCL daily lately raises queries. Is it registered in Fiji? Does it have an export/import licence? Is AHA affiliated to the AP/ICA? (ICA has a billion members world-wide). The reports by The Fiji Times raise many more questions.

“The 2015 (Monitor Co-op) edition’s 6.9 per cent increase in the figures for the world’s largest 300 co-operative and mutual businesses is a great tribute to the growing strength of our sector of the global economy. These figures are based on the 2013 results, and represent the fourth year in a row of consistent growth ie from 2010 to 2013 — the years in which the financial collapse and global recession still dominated.

“This is a remarkable achievement for a model of business that is not present on the world’s stock markets and is often invisible to the economic commentators and political leaders. No wonder that one billion world’s citizens have chosen to invest some part of their life in a co-operative,” (Dame Pauline Green, president of the International Co-operative Alliance, at the release of the 2014 Monitor (Monitor Co-op).

Numerous papers and books have been published on co-operatives in Fiji. Given the policy of Government to employ expatriates for permanent secretaries and CEOs it might be possible to bring in experts for co-operatives. It seems that again the cynic will say Fijians cannot manage co-operatives.

Thus it might be argued that FHFCL had gone to the USA for help. Which in this view is unnecessary because we know ourselves better than anyone else from another country. But of course some believe globalisation must not be mixed with ethnic cultures or be kept separate from businesses and capitalism.

One of the reasons for introducing co-ops in Fiji is because of our cultures and our introduction to democratic processes since 1947. Obviously the latter (democracy) did not work because no real connection was made by politicians to the national processes of elections and policy making, hence the coups by the younger enthusiasts of society, largely immature and ill-educated.

The 2008 report mentioned above stated these principles of co-operatives at the outset:

* Voluntary or open membership;

* Democratic control by members;

* Limited interest on capital;

* Fair distribution of profits following an adequate provision for reserve funds;

* Promotion of cooperative education; and

* Collaboration with other co-operatives at local, national and international levels.

In short, truthfulness, trustworthiness, transparency and democracy being the essence of good governance which includes (or central to) accountability and responsiveness” (ibid: 07).

As a practitioner of co-operatives from an early age in Fiji at my village in the Vueti Natewa Co-op, Natewa Bay 1960-80 (deregistered), Mucunabitu Iron Works Contractors Co-op Limited (1983-2015) and now extended to MIW Farming after 32 years, perhaps the above could be useful to readers and the understanding of co-operatives in Fiji. We are always interested in any discussion of co-operatives and its promotion in our country because it works.

Vinaka vakalevu.

t The views expressed are those of the author and not of this newspaper.