Role of Dealer Association in Market Development: Evidence from Albania As. Prof. Dr. Zydi Teqja

The business of an Association An association is the same as any business except that it is NOT organized or managed to make money. An association is organized and managed to provide SERVICES to the members so the MEMBERS can make more money!

Principals of Association Common Interest Democratic Management Voluntary Participation Independence

Common Interest What do we mean when we say Common Interest? How to Find the Common Interest? Common Interest and the Bylaws

Democratic Management "Democracy is the worst form of government I know...except for every other form of government I know!" Churchill "Robert's Rules of Order"  

Voluntary Participation In former Communist countries, it is essential to highlight the voluntary nature of membership. Because association membership is voluntary, and people are free to leave it, associations are quite difficult to sustain. If you do not get what you want, you will leave the association. Sustaining an association requires passionate, committed and skilful leaders.

Independence An association must remain outside of government: ·   A major government official (politician) cannot serve two masters. However, they can be appointed by the Executive Committee to a non- voting Honorary Executive Committee membership. Government not a "problem" or the "enemy," but a partner.

By-laws The by-laws tell you: who can be a member; what the rules are; define the member's powers and define the officers' authorities. The requirements for voting to approve decisions are detailed in the by-laws and must be followed.

The Need of Dealer Association in Market Development At first stages of Market Development there is a great need for: Procurement services; Marketing and technical advice; Business planning for business development; Liaison with banks; Networking with aid projects for technical assistance; Importation assistance etc.

The history of the Albanian Fertilizer and Agribusiness Dealers Association (AFADA) Auction Identification of Entrepreneurs Development of a Mature Market Structure Institutionalization of the Dealer Network: The creation of AFADA

AFADA Logo

AFADA Objectives (As defined in its by-laws, March 1993) To provide an association which will foster: Professional development of its membership Continuing business and technical education Relevant research and informtion development

Continue 2. To represent and act on behalf of its membership before all governmental agencies. 3. To establish high standards of business ethics and professionalism and to develop and promote equitable trade practices.

Continue 4. To provide a forum that will facilitate positive action on professional, business, environmental and legislative issues. 5. To communicate and cooperate with other organizations on issues of mutual interest.

Achievements Some AFADA achievements in encouraging positive changes are: Turn Over tax removal from 15% to 0% in 1994 Seed Market liberalization and unnecessary regulations avoidance in business licensing, certification, etc. Seed Law improvement according to the European Community Standards Pesticides registration and brochure publication on safety use

Wheat seed Value added tax removed 11 importers and 98 wholesale dealers supplied 73 000 farmers During 10 years AFADA dealers used 20 million USD credit at a time where credit from the banks was missing and donors suffered from 50% bad loans. 400 input supply businesses employed 4000 people Use of certified wheat seeds increased from 600 ton in 1996 to 4000 tons in 1997 and then 65000 tons in 1998 where 3500 tons were produced in country

11 agricultural input products had reduction of customs tax from 15% to 5%r as a result of lobbying with the Government through AFADA Association Besides the hard conditions in spring of 1997 AFADA dealers supplied the market with 17% of fertilizer more than previous year

AFADA and private entrepreneurs achievements show that: Confidence and the private sector support makes the economy function Promoting continuously policy changes to improve the business climate can help rapid transition Individuals and private sector need orientation and support As soon as the private sector gets organized shows ability to serve the entrepreneurs and identifies economic alternatives in solving problems

Recommendations: Legislative information dissemination to members Members encouragement to express personal ideas toward legislation and government Information dissemination about administrative activities Create and maintain a government relation committee to deliver studies and make recommendations to local and central governance

Assistance to local governance through data, facts and statistics that cover sub sectors, communities and professional groups Evolving association representatives in legislative issues and conferences Compiling proposals for draft laws and legislation Lobbying and addressing efforts to achieve the objectives for sub sectors and community.

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