Co-operatives and poverty reduction
In his interview, Johnston Birchall talks about
his new research project funded by the UK Economic and Social Research
Council and how it links up with the “Co-operating out of
Poverty” Campaign.
Q. What is the project all about?
It is a two year study of ‘The role and potential of
co-operatives in poverty reduction’. Based at Stirling University
in Scotland, we have funding from the UK Economic and Social Research
Council as part of a wider programme investigating ‘non-governmental
public action’. I will be working on it part time and Richard
Simmons will be full time. The UK Co-operative College is working
with us as a consultant to the project, so we can draw on the expertise
of its staff who is working in the same area. We have to report
in June 2008, but hope to get some interim findings out sooner than
that.
Q. Having written two books on the subject, do you feel you
have anything more to say?
Yes, there is a lot more to say, because the books were based
on desk research and the project is really giving us the opportunity
to get out and put the arguments in the books to the test. Also,
we have come across some important new ways of looking at the subject.
I am keen on using a framework developed by Stephen Smith of George
Washington University on poverty traps, while Richard wants to use
network theory to help us understand why some co-ops are more effective
than others.
Q. What kind of research will you be doing?
We have a case study approach, which means we choose three
countries and study their co-operative sectors in depth. Our objective
is in fact to answer three main questions: To what extent do co-operatives
contribute to poverty reduction? Do they, as membership-based organisations,
have organisational comparative advantages compared to NGOs, local
government, and private businesses? To what extent is the co-operative
sector involved in national poverty reduction strategies? If it
is not involved, why not?
Q. Why did you choose Vietnam, Sri Lanka and
Tanzania?
Because they all have traditional co-op sectors that are being
reformed but that need strengthening, they all have national level
government strategies for combating poverty and – this is
most important - they have co-operative organisations that want
to enter into partnerships with us.
Q. What research methods will you use?
We have three methods. First we will interview 30 to 40 people
in each country who we call ‘key informants’. They will
not be just co-op people but government officials and politicians,
people who run NGOs and business people. We want to get a rounded
view of the co-op sector from people in the know. Second, we will
work with our partners in each country to do a sample survey of
co-operative leaders and managers, so that we get the voice of co-operators
coming through. Third, we will identify good case studies of co-operatives
that seem to have overcome poverty traps, and investigate them to
see how successful they have been, and why.
Q. The project has been going for several months
already. What have you achieved so far?
We have been to Vietnam, Sri Lanka and Tanzania, and secured
the goodwill and co-operation of the co-operative apex organisations,
government officials and academics. We have realised we cannot do
all the research ourselves, but have to form partnerships with local
organisations. In Vietnam we are going to work with the Vietnam
Co-operative Alliance, in Sri Lanka with the credit co-op movement,
SANASA, and in Tanzania with the University College of Co-operative
and Business Studies at Moshi. Of course, we will be working with
other organisations as well, but there are our three main partners.
Q. How does the project fit into the joint
ILO-ICA ‘Co-operating out of poverty’ Campaign?
Its findings should give more depth to the campaign’s
message, because it will increase our understanding of just how
co-ops and similar membership-based organisations can reduce poverty,
and also of what can be done to help them have a greater impact.
It should also provide lots of case study material, particularly
on the way co-ops help people escape poverty traps.
Q. What happens when the project ends?
We know that co-operative statistics are not adequate at the
moment, and we hope to work with co-op apex organisations to improve
their statistical base. In the long run, we need to strengthen the
case for the importance of co-ops and other membership-based organisations
in poverty reduction. The only way to do this is to collect good
statistics about the impact of co-op businesses on the livelihoods
of members.
We are also applying for funding to extend our current work further,
adding more case study countries to make it really comparative.
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