english - canadian co-operative research network
TRANSCRIPT
Canadian Co-operative Association
This policy framework is a product of the Building
Community Assets – The Co-op Advantage project.
Other materials developed for this project are:
• Building Assets in Low Income Communities:
Policy Research on the Co-operative Model
• Building a Better Future Through
Co-operation: A Guidebook
• It’s Time to Share
Written by:
Lynne Markell
Published by:
Building Community Assets – The Co-op Advantage
Building Community Assets – The Co-op Advantage
was funded by the Government of Canada, through
the Voluntary Sector Initiative and conducted in
partnership with the Co-operatives Secretariat
For more copies contact:
Canadian Co-operative Association
(613) 238-6711 or toll free 1-866-266-7677
www.coopscanada.coop
© 2004, Canadian Co-operative Association
Table of Contents
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Policy Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Benefits of Co-ops for Low-income Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
When the Co-op Model is Appropriate for Low-income Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Policy Support for Co-operative Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Priority Policy Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Recommendations for Policy and Program Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
• Federal Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
• Provincial and Territorial Governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
• Municipal Governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
• Co-operative Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
• Local Community Service Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
• Community Economic Development Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
The Next Step Belongs to Us All . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Home Ownership Co-ops – Quint Development
Corporation, Saskatoon, SK
2
• The many individuals and groups
across Canada who provided input into
the development of this policy framework
• Participants at the six regional workshops
held in the fall of 2003 in Vancouver, Regina,
Toronto, Montreal, Truro and Gander
• The Steering Committee for Building
Community Assets -The Co-op Advantage
• Jacques Carrière, Community Economic
Development Assistance Programme
• Carol Evoy, Co-operatives Secretariat,
Agriculture and Agri-Food Canada
• Olivia Enns, Canadian Co-operative
Association
• Jean-Pierre Girard, CRISES, Université
du Québec à Montréal
• Elisabeth Geller, VanCity Savings
Credit Union
• Derek Gent, VanCity Capital Corporation
• Denyse Guy, Ontario Co-operative
Association
• Sheryl Harris, Social Policy Development,
Human Resources Development Canada
• Carol Hunter, Canadian
Co-operative Association
• Amanda James, Social Policy
Development, Human Resources
Development Canada
• Réjean Laflamme, Conseil Canadien
de la Coopération
• Eric Leviten-Reid, Caledon Institute
of Social Policy
• Jeff MacCallum, Policies & Strategies
Division, Nova Scotia Economic
Development
• Shauna MacKinnon, Community
Economic Development Committee of
Cabinet, Government of Manitoba
• Bonnie Morton, Regina Anti-Poverty
Ministry
• Wayne Thrasher, Business and
Co-operative Services, Saskatchewan
Industry and Resources
• Len Usiskin, Quint Development
Corporation
• Canadian Co-operatives Secretariat, especially
Carol Evoy for her superb co-operation
• Project Staff:
• Lynne Markell, Project Coordinator
• Mary Haggar-Lee, Project Assistant
• Michele LeBlanc, Facilitator
• Nathalie Kishchuk, Evaluation
Consultant
• And the following individuals who also
worked on the project: John Wall, Michael
Farrell, Roz Crawford, and Shannon Rohan.
AcknowledgementsThe Canadian Co-operative Association acknowledges and thanks:
La Coopérative Le Chez Nous Ltée, Wellington, PEI
Introduction
Co-operatives are part of this bottom-up, self-help
approach. They have a strong history and tradition
in many parts of Canada and around the world.
Indeed, the first co-operatives were started several
generations ago when people endured extreme
poverty as a result of the adverse effects of the
industrial revolution.
The International Labour Organization (ILO) has
recognized the important role that co-operatives
play in the struggle to reduce poverty.
“We are convinced that co-operatives can play
a central role in the fight against poverty….
Participation and inclusion are central to
a new approach to poverty reduction, and
cooperatives are an ideal instrument in such
a strategy…
Cooperative members learn from each other,
innovate together and, by increasing their
control over their own livelihoods, build up
the sense of dignity that the experience of
poverty destroys.” 1
The co-operative approach has been further
legitimized by a recent agreement between the
International Labour Office and the International
Co-operative Alliance. The agreement implements
a “Common Co-operative Agenda” aimed at
creating decent jobs and reducing poverty.2 This
agreement elaborates ILO Recommendation R193,
which calls on national governments to achieve a
balanced society by adopting supportive policy
and legal frameworks, including special measures to
enable the development of co-ops by disadvantaged
groups.
The co-operative model is a unique form of organ-
ization: it is jointly owned and democratically
controlled by the people who use its services; and
it is an international model that is governed by a
specific set of values and principles. (See Appendix
One for more information on co-operatives.)
When resources have been devoted to raising
awareness of co-operatives and providing develop-
ment assistance, co-operatives have flourished in
low-income communities. Two outstanding
Canadian examples are housing co-operatives in
the 1970s and 1980s, and co-ops in Canada’s North.
With Canada experiencing an all-time high level of poverty, an erodedsocial safety net due to funding cuts, and an increasing number of communities in decline because of changing economic conditions, peopleare seeking practical solutions to these challenges. People are choosingcommunity-directed entrepreneurial answers.
1 Report of the Director General, Working Out of Poverty, International Labour Conference, 91st Session 2003, Geneva 2003.
2 This agreement was signed on February 10, 2004. ILO Recommendation No. 193 is available at www.ilo.org/ilolex/cgi-lex/convde.pl?R193.
Fogo Island Co-operative Society, Seldom, NF
3
4
The Canadian Co-operative Association policy
framework has been developed to encourage and
assist potential partners to work together through
a concerted, long-term, and coordinated effort.
In the spring of 2001, the Canadian Co-operative
Association embarked on a project to examine
how to make the co-operative tool more helpful in
tackling poverty and disadvantage in low-income
communities. The project was guided by a broad-
based Steering Committee composed of people
from government, academia, the co-operative
sector, community economic-development (CED)
organizations, policy research groups, and
anti-poverty organizations. After conducting
initial research, the Project Steering Committee
decided to adopt an asset-based approach
and renamed the project Building Community
Assets – The Co-op Advantage.
Key findings from a literature review, interviews
with stakeholders, and case studies of ten selected
co-operatives in low-income communities formed
the basis of a draft policy framework. This frame-
work was tested at six regional consultations
across Canada in the fall of 2003. Participants
included individuals from existing co-operatives
and credit unions, government, community
services, community economic development
organizations, academics, and anti-poverty
groups. Comments and feedback from these
individuals were used to revise the framework.
The term “low-income community” refers to any
geographical or functional community with a
significant number (at least 40 percent)3 of its res-
idents living below the poverty line. Communities
include villages, towns, First Nations’ communi-
ties, urban neighbourhoods, and resource-based
communities where resources have disappeared.
“Low-income communities” also include groups
of low-income people who share a common
interest, such as recent immigrants, people
with disabilities, sex-trade workers, psychiatric
consumers, seniors, single parents, and people
who are victims of racial prejudice. Many people
who feel left out of mainstream society have a
strong sense of community and possess many
talents to contribute to co-operative efforts.
3 This is Statistics Canada’s definition of a low-income community.
Coopérative de travail Touski, Montréal, PQ
This kind of long-term investment is required today to increase use ofthe co-operative model within low-income communities. Canada needs to move beyond a scattered and isolated usage of co-operatives to a moresignificant application of the co-operative model to deliver importantservices and create jobs.
This policy framework has been created to assist
governments and other organizations to under-
stand the many benefits of co-operatives, when
co-operatives are appropriate tools, and what is
needed to support the development of co-operatives
in low-income communities. Supportive public
policy is crucial to enhance the capacity of
communities to tackle the significant community
problems they face.
Objectives1. Greater use of the co-op model to expand
assets in low-income communities
2. Overcoming obstacles to co-op development
in low-income communities
3. Improved policies and programs within all
levels of government to support development
of co-operatives in low-income communities
4. Stronger partnerships among governments,
the co-operative sector, and other organiza-
tions in the social economy
Benefits of Co-ops for Low-income CommunitiesCo-operatives expand personal and community
assets. The co-operative model is a valuable and
efficient tool for low-income communities,
because one co-operative can accomplish many
ends. First, co-operatives accomplish key social
goals, such as delivering needed services or
creating new jobs. Second, they help individuals
increase assets. Third, they empower people
through a co-operative decision-making
mechanism. And finally, co-operatives contribute
to overall community well being.
Benefits to IndividualsIndividuals need five basic assets for self-sufficiency.4
These “livelihood assets” – social, financial, human,
physical and personal – are fundamental building
blocks that enable low-income Canadians to have
sustainable livelihoods and move out of poverty.
Individuals acquire these assets over time;
co-operatives enable individuals to build on
these five assets. (See Appendix Two, page 14 for
description of the five livelihood assets)
VisionOur vision foresees the co-operative model helping more low-income communities in Canada overcome poverty and social disadvantage.
4 The model was elaborated in Women In Transition Out of Poverty, written by Eko Nomos for the Women and Economic Development Consortium,
January 2001. The authors adapted an international development model created by the Department for International Development (DFID) in
the United Kingdom. The Sustainable Livelihoods framework of DFID was adjusted to be more reflective of the Canadian context and more
sensitive to gender.
Policy Framework
Neechi Foods, Winnipeg, MB
5
6
Assets for Sustainable Livelihood
Social Assets – broad networks of friends, family,community groups, and political connectionsthat provide support and information
Personal Assets – self-esteem, assertiveness, andemotional well-being that affect motivation anda positive attitude towards personal change
Physical Assets – basic infrastructure of goodsand services, such as secure shelter, energy,transportation, child and elder care, food, equip-ment, information, and basic consumer needs
Human Assets – technical and interpersonalskills, knowledge, education, improved health,leadership abilities, and earning power
Financial Assets – earnings and regular income,savings, access to credit, improved credit rating,and financial security
How Co-ops Help Build this Asset
• Wider networks of people• Encountering more people through meetings,
committee work, or board membership• Close connections with fellow workers that
lead to friendships and personal support• Reduction in isolation• Friendships across class and income level• Access to political knowledge through
participation in the broader co-op movement
• Skills and confidence for work and personal life
• Increased self-confidence and self-esteem• Teamwork, co-operation and an increased
ability to work with others• Pride in accomplishment and drive to
do more
• Access to basic services that are fairly priced• Access to crucial services such as rural
child care• Some control over delivery of services such
as home care, day care, and housing• Income stability, which has implications for
skills upgrading and family life (particularlyfor members of housing co-ops)
• Knowledge of democratic practices, such asvoting, roles and responsibilities, meetingrules, and policy-setting
• Decision-making and governance skills• Leadership skills, which can be used for work
or political involvement• Knowledge of the co-op movement, such as
federations, regional organizations, and inter-national organizations
• Work skills learned on the job in co-ops• Venue for input into decision-making
• Increased income through employment orsale of products
• Access to loans and credit at credit unions• Increased income due to savings on
basic goods• Skills in finances, financial planning, and
budgeting• Financial literacy• Financial dividends from profit-sharing• Equity building
Additional benefits mentioned by co-op members include:
• Combining resources with others to achieve goals or start new businesses
• Pride in providing essential community services
• A way to raise capital through the sale of shares among many members
• Shifting power from professionals to “members” in community service co-operatives
5 Asset-based community development uses the premise that communities can drive the development process by identifying and mobilizing
existing (and often unrecognized) assets, in particular the “social assets” – the gifts and talents of individuals and the social relationships
of local associations and informal networks. The latter is sometimes called “social capital.” 7
Benefits to CommunitiesCo-ops also build community assets needed by
distressed and disadvantaged communities.
In the asset-based community development
approach5, as articulated by John McKnight and
others, associations of community members
are engines of community action, and sources
of power and leadership.
The leadership and political skills of co-op
members increases the overall social capital of
communities. Improved relationships and link-
ages between community people ensures that
the community is able to tackle other critical
problems. Often co-op members increase their
networks outside communities through federa-
tions or conferences, and these connections
provide potential technical assistance, financial
resources, and valuable information on what
others are doing.
Keeping money in local economies creates a mul-
tiplier effect that benefits individuals, businesses,
and municipalities. Co-ops contribute to this
multiplier effect through:
• Controlling major economic sectors in
communities or regions such as fishing,
agriculture and forestry
• Maintaining important services such as
garages, grocery stores and bakeries in
small rural villages
• Creating employment through a series
of small worker co-ops or supportive
business services such as craft stores
and marketing co-ops
• Meeting multiple needs and building
better communities
When the Co-op Model is Appropriatefor Low-income CommunitiesKey ComponentsParticipants at regional workshops recommended
that key components be in place before low-
income communities are encouraged to develop
new co-operatives. Missing components must be
addressed in the planning stage. The following
components are ideal conditions for success.
• A defined need or business idea
• A clear purpose and way to meet the
need, such as markets for goods or an
economic opportunity
• Leaders, preferably a committee or a group,
with varied skills and a capacity to work
with others
• A large enough group of potential members
who will receive direct benefit from the co-op
• Passion, commitment, and desire, felt by
people who are prepared to make a com-
mitment of time, money and resources to
achieve their goals
• Potential members who are stable and not
overwhelmed by survival challenges such as
lack of housing, basic income, substance
abuse, or serious illness
• Understanding the co-op model and a
willingness to work within a co-operative
structure
• Access to co-operative information, training
and support
• Co-operative support professionals available
throughout the life of a co-op
• A network of supporters, such as other
co-ops, trade organizations, community
agencies, or local political leaders
• Appropriate legislation or regulations
that will support the co-op activity
8
Specific Situations or CircumstancesThere are specific situations or circumstances
where co-operatives have been excellent tools for
low-income communities. We highly recommend
the co-operative model to:
1. Deliver non-profit community services and
give users more say and control. Examples
include housing, health care, childcare, home
care for seniors, and youth services.
2. Provide needed goods or services not provided
by the private sector. Examples include grocery
stores, laundromats, bakeries, cablevision,
transportation, and financial services.
3. Create new jobs and employment where
markets exist.
4. Create flexible employment for individuals
who desire additional income to supplement
social assistance or pension benefits.
Examples include tuck shops in seniors’
buildings run by psychiatric survivors,
recycling services, printing companies,
and small cafes.
5. Provide services for pre-existing micro busi-
nesses or small producers. Examples include
craft co-ops, forestry co-ops, fish processing,
and organic-food marketing.
6. Organize individuals, groups and govern-
ments to own community infrastructure
and organize economic development.
(See Appendix Three on page 15 for examples
of success stories and specific co-ops)
Numerous other situations have fostered co-ops
in low-income communities, including replicating
successful co-operatives from other communities,
organizing experienced laid-off workers in busi-
ness ventures that use their acquired skills, and
buying viable businesses owned by outside corpo-
rations or retiring owners.
Policy Support for Co-operative DevelopmentThe following assumptions and principles should
govern new or revised policy development to
support creation of co-operatives in low-income
communities:
Assumptions1. Individuals and communities exit poverty
through a process of asset accumulation
2. Low-income communities have the capacity
to improve their circumstances given
adequate support, opportunity and resources
3. Co-operatives can help governments achieve
public-policy objectives related to low-
income communities and poverty reduction
Principles for Action1. Community-based approaches, such as co-
operative development, must complement
a strong social safety net that provides
adequate income, education, training,
health and housing for all Canadians.
2. Development of co-operatives in low-income
communities requires committed resources
from government.
3. Governments, the co-operative sector and
community organizations must coordinate
their actions.
4. People with low incomes must be involved
in the design and development of any policy,
program or service that affects them.
5. Co-operative development support
must be flexible to respond to unique
community needs.
9
Priority Policy AreasAction in the following three priority areas will
significantly enhance development of co-operatives
in low-income communities. These priorities for
policy change were developed from Canadian
Co-operative Association case-study research and
regional workshops.
1. Encourage and support collectivecommunity action
People with low incomes often do not participate
in community activities. A prerequisite for people
pursuing the co-operative model is the ability
to cooperate with others and accomplish a mean-
ingful goal through group action. Leadership
development is another crucial factor. Policies and
programs must be developed to support low-
income people in becoming involved in self-help
and local community development.
2. Create more awareness of the co-operative model
For low-income communities to start new
co-operatives, they must be aware of the model
as a potential tool to address their needs. Policies
must be developed to elevate the co-operative
model within government and provide equity
with other business and non-profit organizational
forms. Policies must ensure that the public,
government officials, business counsellors,
economic-development professionals, community
developers, and other intermediaries within
low-income communities are educated about
the co-operative model and its many uses.
3. Increase resources for co-operative development
If low-income communities have experience in
collective action and are aware of co-operatives, it
is also important that adequate support exists to
respond to these communities’ needs for informa-
tion, technical assistance and funding throughout
the stages of co-operative development. Policies
are needed that recognize co-operatives as both
social-development and economic-development
tools, provide funding for support and financing,
and increase involvement from existing
co-operatives and credit unions.
Recommendations for Policy and Program ActionThis section outlines the Canadian Co-operative
Association’s recommendations for policy work
that will support development of co-operatives
in low-income communities in Canada.
Recommendations have been clustered for the
three levels of government, the co-operative sector,
and community-based groups. The recommenda-
tions are predominately policy based but also
include program and other practical actions.
While the recommendations have been set
out according to different stakeholders, the
mammoth task of encouraging, educating and
supporting low-income communities requires
all stakeholders to work in a co-operative fash-
ion. This spirit of cooperation will demonstrate
in a concrete way what can be achieved by
working together.
A General Recommendation: All organizations
and governments should ensure that their consul-
tation processes for policies and programs include
opportunities for people with low incomes to
provide input and suggestions. When new pro-
grams are planned to improve conditions in
low-income communities, every effort should be
made to consult with representatives of potential
users. Not only will this method ensure that the
program is more relevant and effective, but it
also gives low-income people an opportunity
to exercise power and influence.
Organic Planet Worker Co-op, Winnipeg, MB
10
Federal Government
Encourage and support collective community actionEnsure that comprehensive social policies and programs are in place to provide the required foundation for low-income individuals to pursue developmental goals. This foundation includes federal programs in areas such as income support, health, housing and employment.
Provide additional resources for outreach, animation, leadership development and organizational developmentin low-income, ethnic and First Nations’ communities.
Create more awareness of the co-operative modelIdentify and remove obstacles to co-operative participation in federal programming by explicitly identifying“co-operatives” as eligible participants.
Ensure that line departments, such as Citizenship and Immigration, Human Resources and Skills Development,and Industry Canada, are aware of how co-ops can help the departments achieve their mandates.
Promote co-operatives within horizontal federal strategies such as the “social economy” initiative.
Promote co-operatives as a model for local economic development, ensuring federally funded CED organizationsare aware of the co-op model.
Increase resources for co-operative developmentEnhance the Co-operative Development Initiative by targeting additional resources for low-income communities.
Ensure adequate resources are made available to include co-operative development within broad federal initiatives that address social-development challenges such as social exclusion, poverty and homelessness.
Explore ways to eliminate barriers to granting charitable status to co-operatives that undertake charitable activities.
Use financial mandate, through measures such as tax credits, to encourage increased financial investmentin co-operatives.
Make funding available to worker-owned co-operatives in low-income communities.
Provincial and Territorial Governments
Encourage and support collective community actionEnsure that comprehensive social policies are in place to provide the required foundation for low-income individuals to pursue developmental goals. This foundation includes provincial programs in areas such asincome support, health, housing, education, training and employment.
Develop and promote initiatives that encourage and support collective community action within low-income communities.
Revise social-assistance policies and regulations to allow individuals on social assistance to accrue financialassets within a co-operative and participate in new co-op development.
Create more awareness of the co-operative modelIdentify and provide adequate resources to an agency responsible for promotion and coordination of co-operativeswithin government and the province/territory.
Promote development of youth co-operatives.
Specify that co-operatives are eligible to deliver various contracted services such as health care, home care,skills training and cultural programming.
11
Municipal Governments
Encourage and support collective community actionProvide funding for community development workers to assist low-income communities with tackling community issues through animation, leadership development, training in democracy,information and networking.
Ensure that low-income communities are included in local community economic-development initiatives.
Create more awareness of the co-operative modelEncourage consideration of the co-operative model, and provide information and referral to appropriate co-operative resources.
Increase resources for co-operative developmentProvide practical supports such as meeting and office space, staff time, tax relief for non-profit co-operatives,and partnership development.
Support and assist new co-operative housing groups.
Co-operative Sector(Includes national, provincial, and regional federations, as well as individual co-ops and credit unions)
Create more awareness of the co-operative modelCanadian Co-operative Association and Conseil Canadien de la Coopération: Work with sector partners to educate the general public on co-ops and credit unions, and target specific audiences as needed.
Provide information, in accessible languages, on the co-operative model to community organizations and professionals working in low-income communities.
Help federal and provincial governments achieve their goals by making these governments aware of policyareas where co-ops might be effective tools.
Increase resources for co-operative developmentEnlist existing co-ops and credit unions to:
• Provide information, mentoring, loans, access to capital, preferential treatment, and other practical sup-ports to assist co-op development in low-income communities
• Fund community service organizations that work to start new co-ops in low-income communities
• Support youth programs, internships, and summer service co-ops
• Create training and internship initiatives, especially in communities where people are leaving because of lack of jobs
• Train credit union managers and loans officers on a different approach toward risk assessment for co-operative clients
continued on page 12
Increase resources for co-operative developmentEnsure provincial co-operative legislation is flexible enough to meet the needs of low-income co-operativedevelopment, including new co-operative forms such as multi-stakeholder co-ops.
Ensure long-term support and technical assistance is available for co-op development through regionalapproaches similar to Quebec’s regional development co-operative system.
Develop targeted capitalization programs to provide co-ops in low-income communities with grants,and forgivable and high-risk loans.
12
Local Community Service Organizations
Encourage and support collective community actionInitiate and expand support for collective action in low-income communities.
Provide skills training and capacity building for low-income community organizations.
Advocate for progressive policy changes that remove barriers to low-income community participation.Join provincial and national organizations that undertake policy advocacy.
Lobby local United Ways and foundations to shift funding priorities to community development, animation and self-help approaches rather than traditional charitable approaches.
Create more awareness of the co-operative modelProvide education about co-ops and their potential benefits to low-income communities and assist groups toreceive more information, education and support concerning co-operatives.
Consider the co-op model as an option for economic development, affordable housing and provision of socialservices in low-income communities.
Community Economic Development Organizations
Encourage and support collective community actionRecruit low-income individuals and groups to participate in planning community economic-development projectsthat address local needs, such as training, job creation and enterprise development.
Create more awareness of the co-operative modelInclude the co-operative model as an option for business enterprises, and provide information and referral toco-op development services.
Expand criteria for entrepreneurial programs to enable members of fledgling worker co-ops to participate inthese programs.
Build relationships with provincial co-operative associations and sector federations.
Credit unions: Ensure services are accessible to low-income individuals by offering services such as economic literacy, microfinance and individual development accounts.
Encourage governments, in conjunction with existing co-ops and credit unions, to invest in appropriate funding programs for innovation and development of co-operatives in low-income communities.
The Next Step Belongs to Us AllIncreased use of the co-op model in low-income communities will depend on a more supportive policy
context, increased resources, and the co-operation of many stakeholders. The Canadian Co-operative
Association framework and its recommendations are only the beginning. The next step belongs to us all.
Copies of this policy framework will be distributed to all federal, provincial and territorial governments,
and umbrella organizations of the other types of organizations mentioned in this document.
For more information, contact: Government Affairs and Public Policy, Canadian Co-operative Association,
275 Bank St., Suite 400, Ottawa, Ontario, Canada, K2P 2L6; Phone: (613) 238-6711; Fax: (613) 567-0658;
www.coopscanada.coop.
Appendices
More on Co-operatives – A Fact SheetCo-operatives are enterprises owned by their mem-
bers, who use and benefit from services offered by
co-operatives. Co-operatives can provide virtually
any product or service, and can be either non-profit
or for-profit enterprises. Co-operatives, credit unions,
and caisses populaires are active in every sector of
the economy, including finance, insurance, agri-food
and supply, wholesale and retail, housing, health,
and the service sector. Collectively, there are more
than 10,000 co-operatives and credit unions in
Canada, providing products and services to over
10 million Canadians.
Unlike the private, public and voluntary sectors, all
co-operatives around the world are guided by the
same values and principles.
ValuesCo-operatives are based on the values of self-help,
self-responsibility, democracy, equality, equity, and
solidarity. In the tradition of their founders, co-operative
members believe in the ethical values of honesty,
openness, social responsibility, and caring for others.
PrinciplesThe co-operative principles are guidelines by which
co-operatives put their values into practice. These
seven principles are:
1. Voluntary and open membership
2. Democratic member control
3. Member economic participation
4. Autonomy and independence
5. Education, training and information
6. Co-operation among co-operatives
7. Concern for community
Co-operatives and credit unions differ from other
businesses in three key ways.
Different Purpose: The primary purpose of co-operatives
and credit unions is to meet the common needs of
their members, whereas the primary purpose of most
investor-owned businesses is to maximize profit
for shareholders.
1. A Different Control Structure: Co-operatives and
credit unions use the one-member/one-vote
system, not the one-vote-per-share system used
by most businesses. This control structure helps
co-operatives and credit unions serve common goals
rather than individual needs, and ensure that
people, not capital, control these organizations.
2. A Different Allocation of Profit: Co-operatives and
credit unions share profits among member-owners
based on how much they use the co-ops, not on
how many shares they hold. Co-operatives and
credit unions also tend to invest profits in improv-
ing service to members and promoting the well
being of communities.
One of the remarkable characteristics of
co-operatives is their success rate and overall
durability. A recent study by the Government
of Quebec has shown that co-operatives last
almost twice as long as other private businesses
(64 percent compared to 36 percent for other
forms of business after five years of operation).
For the most recent information about co-operatives
in Canada, see the publications section of the
Co-operatives Secretariat Branch website:
www.agr.gc.ca/policy/coop/publicationse.phtml.
The Annual Reports on this website contain statistics
and descriptions of different types of co-operatives.
Also included are reports about specific types of
co-operatives such as Aboriginal, health care, worker
and agricultural.
Appendix One
13
14
The Five Asset Building BlocksReprinted with permission of the Canadian Women’s Foundation.6
Appendix Two
Financial Assets
Social Assets
PersonalAssets
HumanAssets
PhysicalAssets
• Income from productive activity (employment/self-employment) • Available finances/savings • Regular inflows of money from: • Government transfers • Family • Gifts • In-kind • Credit rating • Access to credit
• Cooperation
• Networks, interconnectedness
• Family support
• Friendships
• Relationships of trust/exchanges
• Partnership and collaboration
• Political participation
• Motivation
• Self-esteem
• Self-confidence
• Self-perception
• Emotional well-being
• Assertiveness
• Spirituality
• Skills (including technical and interpersonal)
• Knowledge
• Ability
• Employability and earning power
• Good health
• Leadership
• Child/elder care
• Secure shelter
• Clean affordable energy
• Information • Banking and access to related services • Basic consumer needs, e.g. local grocery store and other services
• Affordable transportation
• Tools and equipment
• Natural resources
• Air and water quality
6 The model was elaborated in Women In Transition Out of Poverty Volumes 1 and 2, written by Eko Nomos for the Canadian Women’s Foundation
Women and Economic Development Consortium, January 2001. The papers are available on line at www.cdnwomen.org or at www.ekonomos.com.
The authors adapted an international development model created by the Department for International Development (DFID) in the United Kingdom.
The Sustainable Livelihoods framework of DFID was adjusted to be more reflective of the Canadian context.
Co-op Success Stories and ExamplesThis section contains some examples of co-operative
organizations operating in low-income communities.
Co-ops marked with an * were case studies done in the
research phase of the policy framework. Further details on
these nine co-operatives are available in the Canadian
Co-operative Association research report, Building Assets
in Low Income Communities: Policy Research on the
Co-operative Model, available on the project website:
www.buildingcommunityassets.coop.
1. Delivering non-profit community services
✽ Quint Home Ownership Co-ops and Bent Nail Tool
Co-op, Saskatoon, Saskatchewan
✽ Atkinson Housing Co-operative, Toronto, Ontario
✽ Le Conseil des coopératives and la cooperative
radio Chéticamp, Chéticamp, Nova Scotia
✽ La Puce ressource informatique co-opérative,
Montreal, Quebec
• Co-opérative de soutien à domicile de Laval,
Laval, Quebec
• Multi-cultural Health Brokers, Edmonton, Alberta
• Rainbow Health Co-op, Surrey, British Columbia
• Boyle Street Co-op, Edmonton, Alberta
• Waterloo Co-operative Residence Incorporated,
Waterloo, Ontario
• Child-care co-ops
2. Providing needed goods and servicesnot offered by the private sector
✽ Coopérative do solidarité de St-Tharcisius,
St-Tharcisius, Quebec
✽ Vancouver City Savings Credit Union’s Accessibility
Programme, Vancouver, British Columbia
✽ Neechi Foods Co-operative Limited, Winnipeg,
Manitoba
• Centretown Laundry Co-op, Ottawa, Ontario
• Assiniboine Credit Union’s Community Loan
Centre, Winnipeg, Manitoba
3. Creating new jobs and employment✽ La co-opérative travailleurs forestiers
Mckendrick Ltee, Mckendrick, New Brunswick
• Cooperative de travail Touski, Montreal, Quebec
• Wild Island Foods, Sointula, British Columbia
• Fogo Island Co-operative Society, Fogo Island,
Newfoundland
4. Creating part-time jobs for individuals on fixed incomes
• Healthy Harvest Workers Co-operative, Victoria,
British Columbia
• Expressway Printing Co-operative, Burnaby,
British Columbia
• Quick Stuff Food Co-op, Halifax, Nova Scotia
• Kingston Co-op Workshop, Kingston, Ontario
5. Provide services to micro enterprises✽ Mitigaawaaki Forestry Marketing Co-operative,
Blind River, Ontario
• Holman Island Eskimo Co-operative/Holman Print
Shop, Holman, Northwest Territories
• First Nations Creations Artists Co-op, Vancouver,
British Columbia
• Petty Harbour Fishermans Producer Co-op, Petty
Harbour, Newfoundland
6. Organize community development orcommunity economic development
• Community Action Co-op, Regina, Saskatchewan
• Core Neighbourhood Youth Co-operative, Saskatoon,
Saskatchewan
• Cowichan Lake Community Forestry Co-operative,
Cowichan Lake, British Columbia
• Ryde Community Co-op, Gravenhurst, Ontario
Another excellent example• Arctic Co-operatives Limited, Winnipeg, Manitoba
ACL is a service federation owned and controlled
by 35 community-based co-operative business
enterprises located in Nunavut, Northwest
Territories, and northern Manitoba. It coordinates
the resources, consolidates the purchasing power
and provides operational and technical support to
community-based co-operatives, enabling them
to provide a wide range of services to local member
owners in an economical manner. Services provided
by local co-ops include retail stores, hotel and
tourism operations, cable television, arts and craft
marketing, fuel distribution, construction and
heavy equipment services, property rental and a
variety of agency services.
15
Appendix Three
16
Key Literature and WebsitesBirchall, Johnston, (2003) Rediscovering the
cooperative advantage: Poverty reduction
through self-help. Geneva: Cooperative Branch,
International Labour Office
Canadian Co-operative Association, (2003) Building
Assets in Low Income Communities: Policy Research
on the Co-operative Model. Ottawa: Canadian
Co-operative Association
Co-operatives Secretariat: Government of Canada,
(2003) Co-operatives in Canada (2001 Data) Ottawa:
Government of Canada
Ferguson, Mary and Janet Murray, (2001) Women In
Transition Out of Poverty. A paper prepared for Women
and Economic Development Consortium (available at
www.cdnwomen.org/eng/index.htm)
International Labour Office, (2003) Working out of
Poverty – Report of the Director-General. Geneva:
International Labour Office
Ketilson, Lou Hammond and Ian McPherson, (2001)
Aboriginal Co-operatives in Canada: Current Situation
and Potential for Growth. Saskatoon: Centre for the
Study of Co-operatives
Kretzmann, John and John McKnight, (1993) Building
Communities from the Inside Out: A Path Towards
Finding and Mobilizing a Community’s Assets. Evanston:
The Asset-based Community Development Institute
Restakis, John and Evert Lindquist [ed], (2001)
The Co-op Alternative: Civil Society and the Future of
Public Services. Toronto: Institute of Public
Administration of Canada
Torjman, Sherri, (1998) Community-based Poverty
Reduction. Ottawa: Caledon Institute of Social Policy
Building Community Assets – The Co-op Advantage –
www.buildingcommunityassets.ca
Co-operatives Secretariat – www.agr.gc.ca
Canadian Co-operative Association –
www.coopscanada.coop
Caledon Institute of Social Policy – www.caledoninst.org
Centre for Social Development –
http://gwbweb.wustl.edu/csd/ (CSD is a leading academic
centre of theory and research on asset building)
Cooperative Branch, International Labour Organization –
www.ilo.org/dyn/empent/empent.Portal?p_prog=C
CoopZone – www.coopzone.coop
Co-operative Research Inventory Project –
www.coop-studies.usask.ca/Research/research.html
Appendix Four
Waterloo-Oxford Co-operative, Elmira, ON