Overview and Coop Movement Articles 43&44 of Constitutional Law especially dedicated to cooperatives: A sublime statutory recognition -Cooperatives activity to ensure full employment -Providing work possibilities and opportunities for those who are able to work but have been denied access; - Preventing the Government sector from becoming the sole and only employer -Preventing the Government sector from large-sizing

Over 130 thousand cooperative societies Coming from almost all economic sectors & subsectors Currently hold 7.5% of GDP Membership size: Around 52 million Creating 1,240 thousand job opportunities = over 6% of the total employment

Most successful coops come from consumption, credit, health, various subsectors of agriculture, handicrafts, mining and industry

- Iranian Chamber of Cooperatives (ICC) Cooperative sector includes two parts: a) State bodies - Ministry of Cooperatives (30 Administration Generals in provinces, over 200 cooperative offices in townships) -CDB, newly established - CIGF, newly established b) Movement - Iranian Chamber of Cooperatives (ICC) - Cooperative societies and unions

Policy of the Government Outline Policies of Article 44, declared in 2003 by the Supreme Leader, to boost Cooperative share in GDP to 25% through privatization by the end of the 5th plan 1- Increasing share of cooperative sector in national economy up to 25% by the end of the 5th Five-Year Development Plan (2014) 2- Government’s effective measure in establishment of cooperatives as means for productive employment for the unemployed 3- Government support for establishment and development of cooperatives through various methods including allocation of tax relief and credit facilities by all finance institutes, and avoiding any kind of extra charges on cooperatives compared with private sector. 4- Removing restrictions on cooperatives in all sectors including banking and insurance 5- Establishing Cooperative Development Bank with state-owned capital

6- Government support to facilitate cooperatives’ access to end markets. 7- State’s good governance through policy making and regulatory monitoring rather than intervention in the executive and managerial practices of cooperatives 8- Development of technical/vocational trainings and other supports required for enhancing cooperative efficiency and empowerment. 9- Introducing flexible and diverse methods for increasing capital and issuing shares in cooperative sector; taking required measures for establishment of new versions of cooperatives in the form of public companies with the ownership of each stakeholder limited as to a certain extent as predefined by law.

10- Government support for cooperatives in proportion to the membership size 11- Establishment of nationwide cooperatives to cover the first three lower income deciles of society for poverty eradication. 12- Allocating of 50% of shares during privatization to low-income deciles through cooperatives with preferential rate and installment. 13- Allocation of 30% of the income, earned through privatization, to nationwide cooperatives in line with poverty eradication.

Latest Developments and Initiatives within the last 3 years “Adalat” (Justice) Shares Distribution: 40% of state companies subject to privatization to be distributed to 6 lowest income deciles Mehr National Cooperative Housing Plan: households with no residence of their own (about one and half million individuals) should be given the chance to possess accommodation within a three-year period by membership in Mehr Housing Cooperatives under government patronage. Cooperative Development Bank CDB): a state bank with an initial capital of USD 500 million; It aims to provide cooperatives, especially the newly established ones, with ad-hoc supportive measures and credit lines

Latest Developments and Initiatives within the last 3 years Cooperative Investment Guarantee Fund (CIGF): aims for guaranteeing and insuring banking facilities rendered to cooperatives, cooperatives' investments and transactions; holds an initial capital of USD 120 million 110 Translation movement to keep up with the newest in theory and practice of the coop world to make grounds for idea producers share their theoretical and experiential views more effectively

Future Plans and Policies Provision of more effective participatory solutions to make people self-help, thus, paving the ground for boosting coop sector to 25%

Concerns to be addressed Cooperation among cooperatives Better financial and social inclusion For complete facts and figures please see: www.icm.gov.ir