1. Building a Secured Society through HRD Efforts in Cooperatives
MKM
Professor Dr. Rosmimah Mohd Roslin
Cooperative College of Malaysia

2. Secured Society depicted as….
A society that is free from social anxiety, fear of poverty, and able to sustain its economic standing
How?
Able to generate income
Well trained to undertake specific income generating jobs
Honing of business acumen

3. Secured society through:
A more equitable distribution of income
The propensity to consume
Self sustaining
Able to meet general standard of living
This could only be done through well developed training programs in human resource development

4. HRD Efforts in Cooperatives
Cooperatives are viewed as important vehicles for community development because they mobilize local resources into a critical mass and their structure allows them to be more community oriented (Wilkinson & Quarter, 1996)
Co-ops are institutions of choice to bring economic opportunity to underserved areas.

5. HRD Efforts include: Education and Training Skill Building Programs
Academic Programs
Setting up of Cooperative Academic Institutions
Skill Building Programs
Vocational programs
Business training skills

6. Cooperatives Contribution
Estimates of the number of cooperatives and their impacts on the world economy vary widely, but their impact is extensive.
It is estimated that approximately 800 million people worldwide are members of cooperatives, and another 100 million are employed by cooperatives
(Schramm, 2007)

7. Economically, the cooperative business model has helped millions of low-income individuals in developing country improve their economic standing
Providing security to the poor by converting individual risks to collective risks

8. Remote, rural regions, where most poor people live, tend to be less profitable for other forms of enterprises and unattractive to investors because of scattered and low levels of production, high transaction costs and long distances to market.
Cooperatives allow entrepreneurs to overcome many of the market barriers that exist in developing countries

9. Democratically, co-op members learn firsthand the principles of democratic governance, transparency and member participation.
Cooperative membership gives subsistence producers and other impoverished people a voice and a chance to take charge of their destinies.

10. This experience provides a sense of ownership of the local political process; it sets an example of organizational efficiency, transparency and accountability; and it creates a practical vehicle for conflict management through jointly vested interests.

11. Socially, co-ops increase trust and solidarity, leading to social well being and stability ,in some cases in the face of adverse conditions and conflict.
Through development programs, cooperative members learn the relationship between serving their own needs and the viability of organizations

12. Well trained Cooperatives – A question of impact
A Malaysian Experience

13. The Malaysian Experience – Cooperatives and Business Ventures
Types of Projects
Applications Received
Applications Approved
Numbers
Amount (RM)
2010
2011 1.
Services
Contractual work 35 33
9,994,380
13,915,750 20
3,777,000
8,425,641
Retail 40
113
12,515,000
33,360,000 30 93
4,462,900
19,222,000
Finance 42
105
102,700,000
257,000,000 25 61
42,548,500
109,507,000
Transportation 26
25,624,206
18,413,298 24 17
23,463,486
4,415,842
Tourism/Health 2 8
992,435
1,968,000 - 4
811,036 2.
Agriculture 28
40,502,067
27,123,600 18 22
18,188,300
13,786,900 3.
Construction 62 75
47,926,32
98,502,777 50 52
25,648,539
40,808,905 4.
Manufacturing 1 3
1,800,000
10,150,000
50,000
Total
241
395
242,054,417
460,433,425
167
283
118,088,725
197,027,326

14. Impact of Business Ventures
In the year 2010
Year of Loan Application
Number of members
Frequency
Percentage (%)
Less than 100 members 15
7.4 18
8.8
members 41
20.1 49
24.0
members 47
23.0 45
22.1
More than 500 members
101
49.5 92
45.1
Capital Share
Less than RM10K 8
3.9 19
9.3
RM10K-RM50K 27
13.2
RM51K-RM100K 23
11.3
More than RM100K
158
77.5
135
66.2
Assets of Cooperatives
Less than RM50 K 13
6.4 40
19.6
RM50 K-RM100 K 22
10.8
RM101 K-RM500 K 50
24.5 42
20.6
More than RM500K
123
60.3
100
49.0
Allocation for Members’ Welfare Funds
Less than RM10 K
105
51.5
125
61.3
RM10 K-RM50 K
RM51 K – RM100 K 29
14.2
More than RM100 K 20
9.8 16
7.8
Dividend Allocation
Dividend not allocated 66
32.4 82
40.2
Dividend allocated
138
67.6
122
59.8

15. Contemporary community development paradigms encourage communities to rely on their internal resources (human, social, environmental, financial, and physical) to solve community problems.

16. The willingness of people to cooperate and trust is a fundamental building block in a cooperative development strategy.
Communities that are well trained in specific skills are more likely to be self sustaining economically.

17. References
Schramm, S. G.(2007). Cooperatives: Pathways to Economic, Democratic and Social Development in the Global Economy, [Accessed 18 October, 2012]
Wilkinson, P. and Quarter, J. (1996). Building a Community-Controlled Economy: The Evangeline Co-operative Experience. Toronto, Ontario, Canada: University of Toronto Press.