Bridging the gap between black and white co-ops will define the role they will play in the future of the economy, reports Meshack Mabogoane
The co-operative movement, long viewed as an ideal vehicle for blending elements of the market economy, democratic participation and collective ownership, may become a major factor in the drive for broadening equity and increasing empowerment in the economy.
And given the existence of one of the most developed agricultural co-operative sectors in the world, a widespread tradition of stokvels and burial societies in black communities and the spirit of social partnership in economic development, the potential for co-ops in South Africa is enormous.
A co-operative indaba was recently held in Johannesburg with the International Co-operative Alliance’s (ICA), the world co-op apex body, support.
Delegates from 30 local emerging co-operatives and the Agricultural Co-operative Business Chamber (an affiliate of the South African Agricultural Union) gathered together with international observers to deliberate the establishment of a South African national Co-operative Forum.
The formation of an interim structure, consisting of co-ops from divergent traditions, was a major breakthrough. ICA’s Africa director, Vincent Lubasi, played a major role in brokering the reconciliation between the well-established and the emerging co-ops. The skewed distribution of resources and experiences, running on racial and sectorial lines, was the major bone of contention. The largely white agricultural co- ops were initially reluctant to merge, fearing submergence.
Though black co-ops have a long history, their fate paralleled the overall situation of their communities. White co-ops have received huge support from the state, mainly through the Land Bank. It was only in the last decade that black co-ops began to emerge with the assistance of overseas development agencies and activist trade unions as part of resistance. They became a major feature of the structure of non governmental organisations (NGOs).
The main challenge facing the new body is to bridge the gap between the highly-organised, huge and mainly white agricultural co-ops and the fragmented, small and largely black co-ops in the other sectors.
Another challenge revolves around funding. Without this, co-ops would remain in the margins. However, the role of the government in aiding co-ops has been a critical factor.
Experiences given at the conference were varied. Though there was a general acceptance that the underdeveloped state of local non-agricultural co-ops called for state or private donors, caution was called for in ensuring that the state did not take a hegemonic role.
The evolution of co-ops was mixed. Without massive state assistance, the agricultural co-ops would not have taken off, both among white farmers and in the former Bophuthatswana. Yet much of the initiative and organisation was left to the co-ops.
In contrast, in Zambia and many Third World countries, the state took the initiative in forming co-ops. This created an artificial and welfare situation which saw a highly inflated and dependent co-op membership.However, when state support was withdrawn in the wake of the World Bank initiated structural adjustment programmes these co-ops disintegrated.
The apparent failure of co-ops in Third World and former Soviet countries is in sharp contrast to the solid record of co-op successes in the developed capitalist world, dispelling the myth that co-ops are socialist devices.
Co-ops in Western countries have a large stake in the economy. A third of the Canadian gross domestic product is generated by co-ops and they dominate the retail trade; they contributed heavily in the development of the Israeli and north Spain (Basque province) economies; and major banks in Japan and France are co- ops.
The challenges of rural development, housing provision and economic empowerment in South Africa — if they are to be community-based initiatives — give the co-op movement a chance. The legacy of self help, the success of agricultural co-ops and a government committed to democratic participation, even in socio-economic developments, are conducive to such prospects.
But the real uptake of the co-operative movement will depend on major organisational development to prime a network of co-ops, government involvement through an encouraging legislation and technical assistance.