1. CORPORATE GOVERNANCE FOR CO-OPERATIVES: ISSUES, CHALLENGES, AND DEBATES By Faustine K. BEE Senior Lecturer and Researcher Moshi University College of Co-operative and Business Studies, Tanzania.

2. BACKGROUND INFORMATION Corporate Governance has become an important factor in the realization of a sustainable economic growth that is desired under the MDGs, Corporate Governance has become an important factor in the realization of a sustainable economic growth that is desired under the MDGs, However, it is not widely applied in Co-operatives. Hence, justification for this study and this meeting in London! However, it is not widely applied in Co-operatives. Hence, justification for this study and this meeting in London!

3. Why Co-operative Crisis? There is a growing consensus that co- operative crisis experienced in the developing countries can be attributed partly to weaknesses in governance. Of course there are other contributing factors – policies and legislation, weak capital base, competition, lack of professional management, general apathy, etc. There is a growing consensus that co- operative crisis experienced in the developing countries can be attributed partly to weaknesses in governance. Of course there are other contributing factors – policies and legislation, weak capital base, competition, lack of professional management, general apathy, etc.

4. Co-operatives in a Global Economy Globalization has facilitated: Growth in International Trade, Growth in International Trade, Enhanced access to technology and Info., Enhanced access to technology and Info., Increased DFIs, Increased DFIs, Enhanced privatization and dev. of free markets, Enhanced privatization and dev. of free markets, Introduced GOVERNANCE as regulator. Introduced GOVERNANCE as regulator.

5. Co-operatives in a Global Economy BUT Globalization has: - Enhanced dominance of corporate entities through acquisition and mergers marginalizing the role of cooperatives, - Environmental concerns have increased due to increased exploitation of natural resources by corporate investments, and - Increase in social inequality and poverty

6. Co-operatives in a Global Economy  Co-ops are caught unprepared in the global economy,  There is a need for a renewed examination of Co-operative Values, Principles and Practices in order to conform with changing global situation

7. Issues For Debates Democratic Member Control vs Economic Benefits: Democratic Member Control vs Economic Benefits: - One man one vote …disregards shareholdings, although limited to 20% - Financial benefits determined by patronage and not shareholding, - Raising capital from outside coop…risks its autonomy and independence, - Education, training and access to info…very costly …how to finance? Whose responsibility?

8. Debate continues… Improvement of coops performance and image: Improvement of coops performance and image: - How and whose responsibility? - What roles for Boards and Professional Managers? - Performance indicators: How to measure Governance in Coops? - Can Good Governance improve image?

9. Debates on … Coops form/types and structure: Coops form/types and structure: - What forms/types are more appropriate? – sector specific, multipurpose, shared, or provide services only like ACE in Uganda? - Structure – multi-tier structure of coops vs market efficiency! - Coops and value chain … how?

10. Debates on … Decreasing local and International Support to coops: Decreasing local and International Support to coops: - Why? - Renewed support-How? Coops address very issues of poverty that development partners address – Cooperating Out Of Poverty!

11. THE END ASANTENI SANA. THANK YOU!