Cooperatives are the salvation of the village movement – Granger
Former President, David Granger
Former President, David Granger

CO-OPERATIVE institutions are essential, particularly to the village movement, and the supporting of small and microbusinesses, however, they must take up a strict business model that needs to be respected by its participants, if they are to survive and thrive.

These thoughts were shared by former President, David Granger, last Friday, when he addressed a question on the importance of cooperative societies in African culture, while delivering remarks at a virtual Emancipation Eve event organised by the International Decade for People of African Descent Assembly – Guyana.
Cooperatives are considered an engine for affording opportunities for those who may not be able to access financing otherwise. In Guyana, plantations bought by ex-slaves in the 1830s and 1840s are considered to be the first form of cooperatives. The buying of the plantation also marked the start of the village movement.
Immediately post slavery, the freed Africans came together and pooled their pennies, carrying them in wheelbarrows, buckets, and any available container to purchase plantations and convert same to villages, which they owned together. “Cooperativism was the salvation of village organisations. Especially for small and micro enterprises, cooperatives are ideal,” He said

Adding that: “If I want to set up a small factory I can go to the cooperatives and get loans at very low rates. I couldn’t go to the big banks and get the sort of money I need, and I need the cooperative to help me to set up those businesses for startup finance.”

Granger noted that he could not explain “in a nutshell” why the cooperative movement in Guyana declined, but pointed out that during it’s time many participants did not adhere to good business principles. “A lot of persons defaulted on their loans to the co-operative bank. People must approach those co-op institutions as business institutions, not as an organisation for giving out money, and you don’t have a sense of responsibility to pay back those loans. I know that in some co-ops people borrowed money to live, to pay light bills and pay taxes and rent. But that isn’t the purpose of co-operative society,” Granger noted.
Credit unions, box hand, co-operative societies, and penny banks are some examples of the form which co-operatives in Guyana take. However Granger noted that we must now move away from smaller examples and look at the bigger picture when we think of co-operative societies.

“We have to restart movements at village level [but]… we have to adopt strict business principles and not treat co-operatives as friendly societies. We have to move beyond friendly societies, and penny banks. The managers must be trained in business principles. Co-operatives in northern Europe are very successful,” he noted.

Co-operativism in Guyana took off in the 1970, and played a part in the country being named a Co-operative Republic, the first of it’s kind at the time. Hundreds of co-operative societies were established to support the farming, agro-processing, consumer marketing, and the transportation sector, reaching as many as 1440 cooperative societies in 1989.

However, following an assessment by the Ministry of Social Protection in 2016, it was revealed that of the 1268 cooperative societies registered, only approximately eight per cent were functioning in an accountable manner.

Many were plagued with issues of lack of accountability and transparency. Several state institutions were also set up including the Guyana National Cooperative Bank (GNCB), which was sold in 2002 to a commercial bank. There were also the Guyana Agricultural and Industrial Development Bank (GAIBANK), which was closed in the early 1990s, and there is the Kuru-Kuru Co-operative College, which still remains in operation.

Many of the institutions were set up to support persons with finances in the acquisition and ownership of land, education, homes, vehicles, business and other forms of investment. “Co-operatives are important for farming, marketing, exportation, getting raw materials and commodities, fertilisers, etc. Especially in agriculture, agriculture will always have peaks and troughs. Guyana rains never fail, every May/June the rains will come and fields will flood and farmers will find it difficult and need money to tide you over,” Granger reasoned.

“We must have a sense of responsibility because co-ops are ideal. We need to be serious about it. So let us continue to work towards that goal.”
Over the past few years there have been steps to reinvigorate cooperatives in Guyana. In 2017 the Guyana National Cooperative Union Limited was resuscitated, which is responsible for overseeing the co-operative movement in Guyana.

SHARE THIS ARTICLE :
Facebook
Twitter
WhatsApp

Leave a Comment

Your email address will not be published. Required fields are marked *

All our printed editions are available online
emblem3
Subscribe to the Guyana Chronicle.
Sign up to receive news and updates.
We respect your privacy.