The month of October is designated Credit Union Month. October 15 is designated Credit Union Day. We can never remind consumers too often of the benefits of the credit union and the co-operative movement. The credit union is one of the means of alleviating poverty.
In July 2005 Mr Christopher Ram in Business Page in an article entitled ‘Burnham’s legacy’ wrote:
“The co-operative movement plays a major role in poverty alleviation not only in poor countries of Asia and Africa mainly but in the UK as well where the co-operative movement was born in the eighteenth century with the formation of the Rochdale Friendly Co-operative Society formed by a number of workers rendered jobless as a consequence of the effect of the Industrial Revolution on the woollen and cotton industries in England.”
He goes on to speak of the co-operative as a strategy in poverty reduction:
“Even as we discuss cur strategies for poverty reduction we ignore the potential of the co-operative movement to its alleviation. I have argued that what we need is not a strategy for poverty alleviation but an agenda for economic growth. Yet I concede that for the moment the rate of economic growth is too slow to lift the living standard of the very poor in the country, particularly in the rural areas. The experiences and examples where genuine poverty reduction has taken place make a compelling case for the co-operative movement as a critical vehicle.”
ln I965 with other persons chosen from the trade union movement in the region I attended Canadian Labour College classes in trade unionism and co-operatives. It was pointed out to us that co-operatives needed good management, and although the Committees of Management came from the membership, it had been found necessary to employ persons with experience and expertise to lead the committees. The failure of co-operatives in Guyana may be due to our failure to recognize the need for knowledgeable and experienced persons to manage.
The credit union, however, has met with success. The Public Service (PS) Co-operative Credit Union continues to grow, despite the losses sustained by irresponsible members who borrow and then emigrate without continuing to honour their obligations. The interest rate of 1 per cent per month on the unpaid balance continues to be attractive, and compares favourably with bank rates on the full amount of the loan, no matter how much is repaid.
At one stage I sent in my resignation to the PS Co-operative Credit Union. Luckily there was a three month period before withdrawal of sums saved. Within that time I fortunately changed my mind and remained a member since the inception in 1964.
In concluding his article Mr Ram wrote:
“The structure and work of the Co-operatives Department need to be reviewed and more resources made available to it to promote the concept of the co-operative. It will need persons with entrepreneurial talent and a career structure that keeps the trained officers. It must be headed by an experienced administrator with specialist knowledge in promoting development and must not be required to become directly involved in matters of indoor management of co-operative societies even where the registrar has to take control because of breaches by the management. The parallel in the private sector is the appointment of a receiver and any such work should be farmed out to independent administrators. Where the registrars become involved in the organization and management of societies under their supervision they lose their neutrality as advisers, auditors and arbitrators and the advice becomes an order.”