Current Co-operative Issues
ICA addresses a wide range of subjects that have specific relevance to
the co-operative development, growth and successfulness.
Climate Change
ICA is committed to promoting sustainable development in accordance with the 7th Co-operative Principle, "Concern for Community." In recognition of the urgency of the problem and the need to make a significant and appropriate contribution to the cause of reducing future climate change impacts, the ICA has taken the following actions:
International Accounting Standards
The Co-operative Identity has been recently challenged by the International
Accounting Standard Board (IASB). Their intention is to adjust their
provisions with regard to the treatment of shares in co-operatives for
accounting purposes. ICA is particularly concerned that co-operative
shares hitherto regarded as equity will be regarded as debt. This is
a serious issue as it fundamentally challenges the whole basis of ownership
in a co-operative enterprise. If accepted, the change will have a negative
impact on co-operative balance sheets and considerably complicate co-operative
enterprises' access to finance, thus threatening their viability as enterprises.
(Note: Changes to International Accounting Standards in many cases will
be reflected at the national level.)
ICA mobilised its members to lobby the IASB and continues to work on
accounting issues through an IAS Working Group established in December
2004. Members of the working group include representatives from the European
Association of Co-oprative Banks, Japanese Consumer Co-operative Union,
the New Zealand Co-operatives Association and Co-operatives UK. Its objectives
include:
- ensure that coordination is continued in order to achieve an acceptable
solution to the problems of IAS 22 and IAS 32;
- examine ways of improving coordination within the global co-operative
movement in dealing with the International Accounting Standards Board;
- meet with the International Accounting Standards Board at the highest
level in order to improve their understanding of the special nature
of co-operative enterprise;
- agree with the International Accounting Standards Board on a method
of corresponding and liaising in future which avoids the difficulties
of the past, and;
- report to the ICA board in September 2005 on the conclusions of the
working group.
Documents related to the IAS lobbying efforts:
ICA Comments on perpetual instruments and puttable or mandatorily redeemable instruments, 15 June 2009 (pdf)
- ICA Comment on the International
Accounting Standards Board (IASB) discussion paper "Financial Instruments
with Characteristics of Equity", 5 September 2008 (pdf)
- ICA Comments on the
European Financial Reporting Advisory Group (EFRAG) discussion
paper "distinguishing between liabilities and equity" and its potential
impacts on co-operative businesses, 28 July 2008 (pdf)
- ICA Comments on the United
States Federal Accounting Standards Board (FASB) "Equity and Liabilities
Preliminary Views" document, 30 May 2008 (pdf)
- ICA Comment on
the International Accounting Standards Board (IASB) Exposure Draft
of a Proposed IFRS for SMEs, December 2007 (pdf)
- Declaración
del Seminario Internacional sobre Impacto de las Nuevas Normas Internacionales
de Contabilidad en las Cooperativas, 22 de noviembre 2005, Buenos
Aires (Argentina) (pdf in Spanish only)
- "Lobbying
activities in the field of IFRS: the views of the European Association
of Co-operative Banks", September 2005 (pdf)
- Result of
the IAS 32 / D8 consultation, September 2004 (pdf)
- Letter
to ICA Members on International Financial Reporting Interpretation
Committee (IFRIC) interpretation on dealing with co-operative shares,
13 August 2004 (pdf)
- European Association
of Co-operative Banks Guidelines, July, 2004 (pdf)
- Japanese
Consumer Co-operative Union (JCCU) Appeal to the IASB Decision 20
April 2004
- ICA
Press Release: Accounting Standards Threaten Co-operative Identity,
20 November 2003 (pdf)
- NCBA Hails
Deferral of Rule Reclassifying Co-op Member Equity as Debt; Decision
Heads Off Chaos in Co-op Accounting, November, 2003 (pdf)
- Note on 'What are
co-operative shares?', October, 2003 (pdf)
- Note concerning
the application of IAS 32 to co-operatives, 2003 (pdf)
- Letter to ICA
Members on IAS 32, November, 2003 (pdf)
Gender
The ICA has clear mandate to address gender issues as its Rules stipulate
that one of the ICA's objectives is "to promote equality between men and
women in all decision-making and activities within the co-operative movement".
In order to provide guidance to ICA structures and member organisations
on how to implement gender equality, the ICA adopted "ICA
Strategy for Promoting Gender Equality: Proposals for Progress" (pdf) following
a series of actions to create awareness and collect statistical information
on the participation of women in Movement.
Although ICA has worked on the issues of women and co-operatives since
its foundation and through its Women's
Committee and now Gender Equality Committee, in 1995 it adopted a
resolution, "Gender
Equality in Co-operatives" which established gender equality as a global
priority for the ICA and called on members to establish action plans
to address the issue. In 1996 the ICA President asked members to provide
information to evaluate the level of implementation of the resolution
(gender disaggregate statistics on membership, information on women's
participation in power structures and decision-making, and copies of
any plans/policies for achieving gender equality). It was this year too
that gender disaggregate statistics were first formally requested from
ICA membership.
In 1997, a report went to the ICA Board summarising the information collected
and suggesting elements for inclusion in a strategy. The Board tabled
the report and agreed to re-examine ways of implementing the resolution.
The ICA Board also reviewed proposals to the ICA General Assembly for
changes to the ICA Rules and Standing Orders from a gender perspective.
It was in 1998 that a draft Gender Strategy discussed by ICA Board at
its meeting in Tokyo (Japan), but only in 1999 did the ICA Board at is
meeting in Québec
(Canada) approve the development of an ICA Gender Strategy.
The "ICA Strategy
for Promoting Gender Equality: Proposals for Progress" was adopted
in 2000. This global strategy is coupled with regional gender strategies
to promote gender equality with ICA's member organisations and the Co-operative
Movement. More information:

Demutualisation
The ICA is committed to furthering an understanding of the role and significance of the mutual and co-operative sector and the threat of demutualisation. The Global 300 Project was established by the ICA to further this understanding. An initial list of significant publications on demutualisation has been identified. There is also a newsfeed from icanews. coop on mutuality and demutualisation.
Fair Trade
Co-operative enterprises around the world are increasingly becoming involved in Fair Trade as means to increasing their competitive edge in the market both in the consumer and producer sectors. ICA addressed the issue during the ICA Regional Assembly for Europe in Warsaw (Poland) in 2004. Through its membership in the Committee for the Promotion and Advancement for Cooperatives (COPAC) it also was a co-organiser of the COPAC Open Forum: Fair Trade and Co-operatives held in Berlin (Germany) in January, 2005 which resulted to in the creation of a website (www.fair-trade.coop) to regroup information resources on Fair Trade from a co-operative perspective. The website will shortly be available.
HIV/AIDS
HIV/AIDS has direct consequences to co-operatives. It is negatively impacting the capacity of co-operatives to be economically and socially effective organisations. Co-operatives as enterprises are being challenged as they cope with the financial and psychological consequences of the death and illness of their members, leaders, and employees. They must sustain absenteeism of their employees as they fall ill, care for the sick or attend funerals; accept low levels of participation in the governance of co-operatives as members and leaders deal with HIV/AIDS; and cope with the loss of skills and expertise.
The consequences are lower productivity, loss of income with increased costs for healthcare, and thus reduced savings and investments both for the co-operative itself, and for individual members and employees as well as people in the communities in which co-operatives operate.
It is for this reason that ICA has taken a globally proactive role to and adopted the ICA Strategy for Co-operatives Fighting HIV/AIDS (April 2004) to promote awareness and sensitise members on HIV/AIDS, its impact on co-operatives and their communities, and ways in which they could address prevention as well as care and support for those infected. This encourages co-operatives around the world to put into practice the 7th ICA Principle of Concern for Community, but also ensure that co-operatives continue to be effective economic and social organisations.
- HIV & AIDS and Co-operatives: A Training Manual
produced by ICA Asia-Pacific and the National Cooperative Union of India> with
the support of DFID India as part of the first phase of the HIV/AIDS
Awareness for Cooperatives in India.The manual is available in English,
Hindi, Telegu and Gujarati. Copies
can be requested from ICA Asia-Pacific(info@icaroap.coop)
Report : HIV/AIDS and Co-operatives, 2006:
The Co-operative College
of the United Kingdompublished a report on HIV-AIDS and
co-operatives. It echoes the strong message of the ICA
Strategy for Co-operatives Fighting HIV/AIDS that co-operatives
internationally have a role to play in the challenge of confronting
the HIV/AIDS pandemic. The report which is based on research
and materials provided by the ICA, the International Labour Office
(ILO), and Canadian Co-operative Association, addresses the issues
of why HIV/AIDS matters, why HIV/AIDS has a special impact on women
and what is the economic and social cost of HIV/AIDS on co-operatives. It
also provides examples of how co-operatives around the world are
addressing the issue.
Copies of the report are available from the Co-operative College
UK (enquiries@co-op.ac.uk).
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Legislation
The policy environment in which co-operatives exist either support or hinder the growth and success of co-operatives. Laws and administrative policies at the national and local levels must therefore take into consideration the special character of co-operatives to ensure a fair and level-playing field for the co-operative enterprise.
ICA has increasing been called on to assist members in ensuring that legislation respects the Co-operative Identity. It has provided information to Presidents, parliamentarian and the drafters of co-operative laws and policies which impact co-operatives. ICA has also provided technical input in the drafting of legislation in a number of countries, has brought together experts on co-operative legislation to identify trends and provide advisory services, and has worked with international organisations such as the International Labour Office (ILO) to provide assistance to governments and co-operative organisations. As a member of COPAC, ICA also supports efforts to make co-operative legislation easily available for consultation and to collect information resources.
Youth
ICA's engagement with youth is long-standing. ICA organises youth conferences at the global and regional levels and today has a Youth Network which links over 200 young people. In 2003 the ICA welcomed a youth representative to be a full member of the ICA Board. For more information and resources on youth and co-operatives > > >
ICA Global Youth Conferences:
- 2007 ICA Youth Conference, 14-15 October, Singapore
- 2005 ICA Youth Conference, Cartagena (Colombia)
- 2003 "Through Co-operation, Another World is Possible", Youth Conference, Oslo (Norway)
- 2001 "Enhancing the Co-operative Movement through Youth Commitment", Youth Seminar, Seoul (Korea)
- 1995 "Youth and Co-operation - The Present and the Future", Youth Seminar, Manchester (UK)
- 1985 World Conference of Youth Co-operators (4th Youth Conference), Warsaw (Poland)
- 1976 "Co-operative Education and Training for Young People", 3rd ICA Youth Conference, Moscow (Russia)
- 1973 "Opportunities for Youth in Co-operative Movements", 2nd ICA Youth Conference, Sinaia (Romania)
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