co-operatives and msmes after covid-19

CO-OPERATIVES AND MSMEs

AFTER COVID-19

ROBBY TULUS

WEBINAR: CO-OPERATIVES AND MSMES AFTER COVID-19 FRIDAY, 8 MAY 2020

Stark reminder that assault

on humanity and nature has

serious consequences


Fall-out of Pandemic:

❖ Close to $10 trillion dollars, around one-eight

of global GDP

❖ Skyrocketing unemployment everywhere

❖ Profound and pervasive impact on global mental

health – anguish, fear, pain, distress, loneliness


❖ Time for Wall Street devotees to think “beyondprofit” alone (no longer a case of “Benign Neglect”)

❖ Time to put human and nature-related impacts firmly onto their risk map

❖ Ensure the government stimulus can help define a new economic trajectory that is more sustainable.

❖ Stronger environmental measures to be structurally incorporated into the new post-COVID economic order.


CO-OPS AS HUMANIZING AGENT

TIME TO PUT CO-OPERATIVES BACK ON THE WORLD MAP AS HUMANIZING

THRUST, AGENT AND DRIVER

REMEMBER THE THEME OF THE INTERNATIONAL YEAR OF CO-OPERATIVES

2012:

”Cooperative enterprisesBuild a Better World”


COVID-19: TIME FOR REFLECTION

John Restakis: Humanizing the Economy – Corporate

capitalism and free market system is undermining the

foundations of healthy societies, caring communities,

and personal wellbeing.

Nathan Schneider: CO-OPERATIVES often emerge

during moments of crisis not unlike our own,

putting people in charge of the workplaces, credit

unions, grocery stores, healthcare, and utilities

they depend on.


HUMANIZING ACTIONS TAKEN BY CO-OPS WORLDWIDE:

1) HYGIENE MEASURES, Home Deliveries, Catering, Insurance(LEGACOOP Italy )

2) TELEWORK: postponing face to face exchanges (ACE Hardware US, Open Co-op UK, Pellervo Finland)

3) INCREASE PAY throughout lockdown & paid special leave (Foodstuffs in New Zealand ).

4) PAY CUT by higher-paid workers (FC Barcelona Co-op Spain )

5) NEW EMPLOYMENT OPPORTUNITIES in Retail Sector (Co-op Group, UK)

6) PANDEMIC IMPACT ANALYSIS of member co-ops (BCCM Australia, JA Zenchu, Japan)

7) inForMation eXCHanGe, loBBYinG, Frontline WorKers’ Help (WOCCU, ACCU)


ACTIONS TAKEN BY CO-OPS IN ASIA PACIFICCOUNTRY COVID-19 ACTION

AUSTRALIA Facilitating coop collaboration, recording and archiving the activities of Australian

cooperatives (BCCM), Facilitating communication and knowledge sharing (Capricorn

Society)

INDIA Food distribution (NAFED), Infrastructure for isolation wards (NCUI)

Financial assistance; distribution of protective gear and hygiene essentials (IFFCO &

NAFSCOB); Moratorium on loan instalments (NACARD)

Social assistance to migrant labourers (Uralungal LCCS)

Distribution of medical supplies and food; Production and donation of medical supplies

and other initiatives (SEWA)


ACTIONS TAKEN BY CO-OPS IN ASIA PACIFIC

COUNTRY COVID-19 ACTION

INDONESIA Support PPE for frontline medical workers (LSP2I); Loan restructuring & rescheduling,

interest reduction, capital support for SMEs (Obor Mas); Loan Interest repayment only

(KKS)

3 task forces established: 1). Medical equipment for frontline workers at hospitals, 2).

Date collection of cooperatives affected by COVID-19 (business, livelihood,

employment), 3) Mobilization of social solidarity funding - for Islamic Social Fund

during Holy Ramadan to help vulnerable people (DEKOPIN)



IRAN Production of masks, isolation gowns; social assistance through cleansing and

disinfection of public amenities; online education services; distribution of PPE to

hospitals (Rah-e-Roshd)

JAPAN Facilitating information sharing and compensation requests (HeW Coop, JCCU)

KIRIBATI Preventive measures only (no cases in Kiribati)

KOREA COVID-19 Social Healing Project in “special disaster Zones”– KRW 4.9 million to

support underprivileged; Increasing sales of food staples; increasing mask & meal

distributions (iCOOP)

MALAYSIA US$230,000 contributed to government; US$116,000 allocated to cooperatives

affected by the outbreak (ANGKASA).

Deferment of loan repayments by cooperatives (SKM)

SOURCE: ICA ASIA PACIFIC



MYANMAR Financial assistance, protective gear and food staples; 5 Million Kyats (CCS), 13.08

Million Kyats (16 Union Co-op Societies)

NEPAL Fund creation & financial assistance. NPR 2.5million towards the 4-C (Corona Control

Centre Co-operative) by NCF; NPR 21.17 million to Government. 1.1. Million by NCB;

Awareness campaigns; facilitating & distribution of member farm products (NACCFL)

NEW

ZEALAND

Co-operatives join Government efforts and is a key part of the economic recovery in New

Zealand (CBNZ).

PAKISTAN To be described by Ahsan Ali Thakur (ICA AP YOUTH).

PALESTINE Distribution of essential hygiene supplies, food supplies (ESDC); Food distribution to

poor families, bought produce from farmers & women co-ops and lobby government to

conducting trial shipments of agri-products to buyers in UAE & Saudi Arabia (PACU)

SOURCE: ICA ASIA PACIFIC



PHILIPPINE

S

To be described by Sylvia Okinlay Paraguya (NATCCO)

SINGAPORE Distribution of masks, facilitating collaboration between coops, support to migrant

workers (SNCF); 500,000 employees insured under Group Employee Benefits policies

will receive COVID-19 cover at no additional premium (NTUC INCOME). Supply food

and daily necessities, and pledged $240,000 to the ‘ComChest Heartstrings Buy’ to

benefit the less privileged. Pledged a donation of S$500,000 to the Lee Ah Mooi Old

Age Home, Metta (NTUC FairPrice)

SRI LANKA Social assistance, provision of food rations to needy members; provision PPE to

Hospital staff, done by special disaster relief operation committee (SANASA).

VIETNAM Facilitating export of medical equipment, i.e. masks, medical clothes and ventilators

(VCA)


TIME FOR CHANGECrisis creates opportunity

A test of “Co-operative Empathy, Leadership and Vigilance”

How to take co-op action following reflection

How to improve co-op learning with use of Digital Technology (virtual learning)

How to regulate the New Normal (government-movement collaboration)

How to sustain Networks for strengthening civil society and economic democracy

KEY WORDS: EMPATHY, LEADERSHIP, VIGILANCE, ACTION, REGULATION, NETWORKING


ROLE OF : CO-OPERATIVES GOVERNMENT STAKEHOLDERS

FIRST SHOCK: (Mar – Jul 2020)

MEMBERS’

HARDSHIP

▪ Open hotline for members’

consultation by phone

▪ Logistics (SD) - Masks/HS

▪ Digital service delivery

▪ Collective kitchen using local

products

▪ Cushion impact of COVID by

paying only interest on loans

▪ Institute regulation for savings

withdrawal limit

▪ Moratorium on loans/ Warehouse

receipts

▪ Provision of emergency health &

food services for poor coop

members

▪ Planned webinars to allow

shared services

▪ Mutual fundraising activities

to help vulnerable

communities

▪ No pointing fingers: create

interdependencies

SECOND SHOCK:(Aug – Dec 2020)

INSTITUTIONAL

HARDSHIP

▪ Consolidate internal cohesion

(Board & Staff)

▪ Write-off/restructure loans

▪ Cash flow management

▪ Harmonize staff salaries

▪ Online courses to beat

‘quarantine fatigue’

▪ Extend home delivery services

▪ Provision of subsidies for sick

workers time-off

▪ Liquidity support for co-op social

safety nets

▪ Support for women/ Youth (DV-

Boredom)

▪ Tax breaks for co-ops

▪ Soft loans to MSEs

▪ Digital capacity enhancements

▪ Conduct mutual surveys to

update social economic

conditions

▪ Webinars on risk & crisis

management

▪ Share Videos on

governance & consolidation

during organizational stress

THIRD SHOCK:

(2021 onwards)

EXTERNAL

PRESSURES

▪ Merge weak (collapsing) co-

ops to stronger ones

▪ Loan restructuring

▪ Consolidate “spin offs”

▪ Investing in Pandemic

Resilience /future disasters

▪ Avoid Complacency

▪ Regulation to strengthen

‘procumer’ links

▪ Fiscal subsidies for co-op rehab /

MSMEs

▪ Regulate NEW NORMAL

▪ “One Voice” Central & Local Gov’t

▪ Support strategies of coops & CS

▪ Develop common strategies

for collective learning in

time of crisis

▪ Develop strategies to

enhance solidarity among

civil society organizations

ACTION REGULATION NETWORKING

EM

PH

AT

YL

EA

DE

RS

HIP

VIG

ILA

NC

E


CO-OPERATIVES GOVERNMENT STAKEHOLDERS

FIRST

SHOCK:

(March – July

2020)

MEMBERS’

HARDSHIP

▪ Open hotline for

members’

consultation by

phone

▪ Logistics (SD) -

Masks/HS

▪ Digital service

delivery

▪ Collective kitchen

using local products

▪ Cushion impact of

COVID by paying

only interest on loans

▪ Institute regulation

for savings

withdrawal limit

▪ Moratorium on loans/

Warehouse receipts

▪ Provision of

emergency health &

food services for

poor coop members

▪ Planned webinars on

feasible shared

services

▪ Mutual fundraising

activities to help

vulnerable

communities

▪ Create

interdependencies

(No finger pointing)


EM

PA

TH

YL

EA

DE

RS

HIP

ROLE OF :



SECOND

SHOCK:

(August –

December

2020)

INSTITUTIONAL

HARDSHIP

▪ Consolidate internal

cohesion (Board &

Staff)

▪ Write-off/restructure

loans

▪ Cash flow

management

▪ Harmonize staff

salaries

▪ Online courses to

beat ‘quarantine

fatigue’

▪ Extend home delivery

services

▪ Provision of

subsidies for sick

workers time-off

▪ Liquidity support

for co-op social

safety nets

▪ Support for

women/ Youth (DV-

Boredom)

▪ Tax breaks for co-

ops


▪ Digital capacity

enhancements

▪ Conduct mutual

surveys to update

social economic

conditions

▪ Webinars on risk

& crisis

management

▪ Share Videos on

governance &

consolidation

during

organizational

stress


LE

AD

ER

SH

IP T

ES

T

ROLE OF :


ROLE OF : CO-OPERATIVES GOVERNMENT STAKEHOLDERS

FIRST SHOCK: (Mar – Jul 2020)

MEMBERS’

HARDSHIP

▪ Open hotline for members’

consultation by phone

▪ Logistics (SD) - Masks/HS

▪ Digital service delivery

▪ Collective kitchen using local

products

▪ Cushion impact of COVID by

paying only interest on loans

▪ Institute regulation for savings

withdrawal limit

▪ Moratorium on loans/ Warehouse

receipts

▪ Provision of emergency health &

food services for poor coop

members

▪ Planned webinars to allow

shared services

▪ Mutual fundraising activities

to help vulnerable

communities

▪ No pointing fingers: create

interdependencies

SECOND SHOCK:(Aug – Dec 2020)

INSTITUTIONAL

HARDSHIP

▪ Consolidate internal cohesion

(Board & Staff)

▪ Write-off/restructure loans

▪ Cash flow management

▪ Harmonize staff salaries

▪ Online courses to beat

‘quarantine fatigue’

▪ Extend home delivery services

▪ Provision of subsidies for sick

workers time-off

▪ Liquidity support for co-op social

safety nets

▪ Support for women/ Youth (DV-

Boredom)

▪ Tax breaks for co-ops


▪ Digital capacity enhancements

▪ Conduct mutual surveys to

update social economic

conditions

▪ Webinars on risk & crisis

management

▪ Share Videos on

governance & consolidation

during organizational stress

THIRD SHOCK:

(2021 onwards)

EXTERNAL

PRESSURES

▪ Merge weak (collapsing) co-

ops to stronger ones


▪ Consolidate “spin offs”

▪ Investing in Pandemic

Resilience /future disasters


▪ Regulation to strengthen


▪ Fiscal subsidies for co-op rehab /

MSMEs

▪ Regulate NEW NORMAL

▪ “One Voice” Central & Local Gov’t

▪ Support strategies of coops & CS

▪ Develop common strategies

for collective learning in

time of crisis

▪ Develop strategies to

enhance solidarity among

civil society organizations


EM

PH

AT

YL

EA

DE

RS

HIP

VIG

ILA

NC

E



THIRD SHOCK:

(2021 onwards)

EXTERNAL

PRESSURES

(Crisis period)

▪ Merge weak

(collapsing) co-ops

to stronger ones


▪ Consolidate “spin

offs”

▪ Investing in

Pandemic Resilience

/future disasters


▪ Regulation to

strengthen


▪ Fiscal subsidies

for co-op rehab /

MSMEs

▪ Regulate NEW

NORMAL

▪ “One Voice”

Central & Local

Gov’t

▪ Support strategies

of coops & CS

▪ Develop common

strategies for

collective

learning in time

of crisis

▪ Develop

strategies to

enhance

solidarity among

civil society

organizations


LE

AD

ER

SH

IPV

IGIL

AN

CE

ROLE OF :



"When written in Chinese,

the word crisis is composed of two characters

-- one represents danger,

and the other represents opportunity." John F. Kennedy

"Any kind of crisis can be good. It wakes

you up." Ryan Reynolds

Co-operative Leaders: “WAKE UP, AND

CATCH THE OPPORTUNITIES”

co-operatives and msmes after covid-19

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