SELF HELP GROUP
Item
- Title
- SELF HELP GROUP
- extracted text
-
RF_EC_3_SUDHA
Expand your horizon and
explore on the strategic direction of your organization
lobalization, mergers and acquisi
tion, increased competition, greater
communit}' responsibility and in
stantaneous dissemination of corporate in
formation are some of the issues that force
credit unions to rethink strategies for future
direction.
■
G
September 19:
•
The Asian Credit Union Forum is a platform
for ACCU members to discuss and explore
solutions to respond to issues confronting
the growth and viability of credit unions.
■
What is the format
of the Forum?
•
•
One Day Field Exposure to both rural
and urban credit unions in Thailand.
A visit to the golden-spire temples, ma
jestic ruins of ancient capital and the
charm of rural towns.
September 20-21:
What are the benefits
to your organization
o in attending the
Forum ?
•
•
At least 3 plenary sessions and variety
of specialized sessions to choose from.
International night-the culminating
event of the forum. Enjoy the fine
Thai cuisine with an abundance of vege
table and fruits, herbs and spices, succu
lent seafood and fresh farm produce.
•
Knowledge and know-how to
for
mulate new strategies to enhance the
operation of your credit union
• Participate in an active exchange of
ideas and experiences among peers in
Asia and Developed credit union
movements.
• Challenge your assumptions and
validate opinions
• ^jncourage innovation resulting to
reduces and services enhancements.
levelop linkages with other credit
union movements
E
Who should attend?
j
The Forum is open to General
Managers, Chief Executive Officers,
Board Chairpersons, Directors, Senior
Staff and young professionals from credit
unions, leagues, national federations and
other organizations promoting and sup
porting credit unions worldwide.
di
Venue....
Chaophya
Park Hotel is
situated in a
garden atmos
phere
on
Rachadapisek,
in the center
of Bangkok’s
communica
tions, trans
portation and international business district.
The hotel is close to the major shopping
places like Central Department Store and
Chatuchak market.
Chaophya Park Hotel
247 Rachadapisek Rd., Din Daeng,
Bangkok 10320, Thailand
http : //www. chaophyapark.com
Complete die form below to receive additional information, or visit our website
Plan now for the 2002 Asian www.aaccu.net or inquire at:
Credit Union Forum!
Association of Asian Confederation of Credit Unions
Bangkok, Thailand, September 19-21, 2002
Registration Fee:
•
•
•
36/2 Moo 3, Soi Malee-Suanson, Ramkhamhaeng Rd., Bangkapl,
Bangkok 10240, Thailand
Phone: 66-2-374-5101; 374-3170 Fax: 66-2-374-5321
E-mali: accuran@ksc.com
Family name:Given Name: Female
US$ 200
for Early Bird
Registration hy May 31, 2002
Nationality
Position:
US$ 250 for regular
Organization:
registration
Registration ends
Address:
July 31,2002
Tel.: Fax:E-mail:
Male
_ _______ ____________
_
The. As^eiatiion. of Asian Confederation;
of Credit Unions; invites you to thev...
[CLst £
Asian
Credit Union Forum 2002
lan to be in Thailand, September 19-21, 2002. No other
traveling experience matches the exotic Thailand. The Fo
rum 2002 is set in another world of exotic beauty and natu
ral charm. Thailand is a land of fascinating history and lovingly
preserved customs renowned throughout the world for its lavishly
decorated temples, stunning beaches and delicious cuisine.
P
people. The country itself is called the "Land ol Smiles". Bangkok
is the best place for credit union leaders and professionals to discuss
business and development issues while discovering the hidden treas
ure of its history. Providing the perfect compliment to the forum is
the delicious Thai cuisine that presents an enormous range of dishes
and subtle blend of flavors.
ACCU with our two member organizations in Thailand (FSCT &
CULT) welcomes your participation. Thais are the most gracious
Countless of exciting events awaits you.
rum is noted in your calendar.
Host
Organizations
Federation of Savings & Credit
Cooperatives of Thailand Ltd.
©
Make sure the 2002 Fo- •
Credit Union League of Thailand Ltd.
Credit Union
AM
Exposure to Cre® Unions
The
Union
Credit
Program
provides
Waning Program
Ambassador
The program provides opportunity
opportunity to
to developed national
credit union
credit union leaders and professionals
federation or primary credit union to
to visit developed and developing
share their success by way of
credit
union
movements
and
technical and financial assistance to
country
an emerging or developing credit
chosen. Since ACCU office is located
union movement. The program also
interesting places in
in Thailand,
a
the
reasonably priced'4
involves
sharing
experiences
by
days exposure program is designed for
a ^kiimum of 8 and maximum of 20
visiting the chosen credit union or
participants.
builds a strong brotherhood between
national federation. The program
the two national fe derations and/or
The exposure program would be
primary credit union.
designed based on the interest of the
participants. Partic ipants can ensure
an exciting and homely atmosphere
OmtoreGws
The program encourage
large
with their counte
rparts in Asia while learning and
enjoying the sights, sounds and culture of the country
primary credit unions or advanced national federations to
visited.
provide hands-on learning opportunity to professionals
and leaders of dev
eloping or emerging credit union
Technical Exchange Program
movements through internship hosting. The area that
The Credit Union Ambassador Program also provides
opportunity for professionals and leaders from developed
could be chosen are: microfinance, insurance, central
finance facility, in
formation technology, marketing,
credit union movements to share their technical expertise
institutional capacity building or any area requested.
to developing countryQs national federation on the area of
Members of ACCU would be requested
training, financia 1 management, planning, information
technology or any particular area requested. The country
of any primary credit unions willing to participate in the
sending technical expert will cont ribute for international
weeks. As part of Asian hospitality, the sponsoring or
ganization would facilitate for home -hosting and in-land
aujjsre cost while the member country receiving the
te^miical assistance would shoulder the in-country cost.
to submit names
program by hosting interns for a maximum period of two
travel if required.
Do you know...
Please contact your National Federation/League
which is a member of ACCU. All inquiries should be di
rected to:
•
You will be listed as member of the Credit Union
Ambassadors in Asia
•
You will be receiving a Credit Union Ambassador
Certificate
•
You will be receiving a specially designed souvenirs witch
the Credit Union Ambassador identification
Association of
Asian Confederation of Credit Unions
•
You will be given an opportunity to contribute an article
to ACCU New, the bi-monthly publication of ACCU on your
experience and insights of the program
36/2 Moo 3, Soi Malee-Suanson,
Ramkhainhaeng Road, Bangkapi, Bangkok 10240, Thailand
Tel: 66-2-374-3170; 374-5101 Fax: 66-2-374-5321
E-mail ucainui @ksc.th.com; www.aaccu.net
•
You will be receiving a one year free subscription of the
ACCU New
The Chief Executive Officer
eoV
Good Reasons
of Joining
1.
Experience the brotherhood of credit
union people across Asia.
2.
Gain strategic insights from the
sharing of credit union development
3.
Learn how principles and values of
4.
Expand your horizons that leads to
innovation to your credit union
5.
Immerse to different cultures for your
wide understanding
6.
Enjoy friendships with credit union
people
7.
Establish credit union development
linkage for the benefit of your
members
■ P A11 announces the launching of the Credit
HUUU Union Ambassador Program. It is
aimed to further the Asian Credit Union solidarity
and provides unique learning opportunity for
volunteers and professionals in the credit union.
Above all this is a tool to foster cooperation and
innovation in Asian Credit Unions.
In
1 on c! Savings.? Credit
’ J Cooperatives of lhaM Limited
51
8.
Visit historical and exciting places in
Asia
The Study Visit to Cooperative ■
Movement in Sri Lanka
22-27 March 1S39
ExnosuretoCre
Technical Exch
Twinnin
Interns
Associatio
Asian Confederation of Cr
FWWB SWS
a bi-annual publication from Friends of Women's World Banking, India
Vol. 3, No.1, August 2001
Basic Education A Fundamental Right*12
4
3
India has the world’s largest population of
We hope that the Special Issue on Micro-Insurance was a
illiterates, numbering more than 400 million
pleasant New Year surprise!
people. The role of education in development has been recognized
since long and a considerable part of the community’s wealth must be
In the flugust 2000 issue of FWWB News, we had
invested in it. investment in human capital in general, and in education
announced the launch of two of our New Initiatives -
in particular, may be more conducive to economic growth than
FWWB's Education and Infrastructure Financing
investment in physical capital. Rates of return are highest in primary
programmes. It's been a year since, and a long one indeed.
education, followed by secondary and then university levels. It is
important to note that the role of education as an instrument of
Much has happened on these fronts and the programmes
economic growth varies over time. Education may yield substantial
have witnessed rapid demand from our partner institutions
rewards at some stages of development, while at other stages, the
- to the point that we are finding it difficult to cope with
impact maybe negligible. There may not be a threshold level of literacy
it.
/ education for it to influence economic development, but also a
threshold level of economic development for literacy / education to
The present issue of FWWB News is happy to share with
grow, and for it to influence development of education significantly.
its readers, the experiences and challenges faced during
the implementation of these programmes. Do write to us
India’s desperately poor live in rural areas and, it would be more cost
effective to remove rural poverty hence solutions for poverty in India,
in case you have any queries or need more information on
most certainly should be concentrated on rural poverty. Rural poverty
these programmes.
has many complex causes and, there are three common points in
these - illiteracy, ignorance and lack of knowledge, which could create
We once again invite articles, views and experiences from
income generating possibilities and the answer to this must necessarily
our readers - inputs that could make this newsletter, a
be education and skill development.
more absorbing piece of reading.
Nobel laureate Professor Amartya Sen on his visit to Bolpur, a small
Here's happy reading till we meet again!
town adjoining Shantiniketan in West Bengal, urged the common
people to join in demanding basic education as a fundamental right.
He further said in a brief speech, “Basic education should be a
fundamental right and it should be demanded with a strong voice.
Expenses on basic education are within our country's reach. If India
cannot do it, it will not only reveal economic bankruptcy but political
bankruptcy”.
An estimated 80 million school age children do not have access to any
Although planners and politicians in India are well aware of these
problems, their response has never been one of serious action. They
try to justify their indifference by citing reasons that the ‘sheer
magnitude' of the problem makes it insolvable and other factors such
as labour migration, economic compulsions of the poor families and
the unavailability of financial resources with the State to meet this
requirement. However, none of these responses seem to hold ground.
formal schooling and upto 100 million more attend grossly inadequate
It is now seen that poor parents, even migrant labour are keen to
schools where little learning is imparted. In a survey conducted by the
ensure that their children atleast get basic education so that their
internationally renowned Dutch scholar and economist Jan Drieze
tomorrows are better than today.
(1998), it was found that a majority of rural schools had fewer than two
teachers each, that teacher absenteeism was as high as 65 per cent
on any given school day, and that basic facilities such as blackboards,
classrooms and toilets were non-existent in a big proportion of schools.
' References:
1.
illiterate, school dropout rates are over 40 per cent in lower classes
and upto 60 per cent in higher classes, and the quality of education
imparted even in those schools, which are seemingly functional, is
poor.
Rural Poverty in India • An analysis ol Inter-State Differences ■ Rohini Nayyar.
2.
Levels of Poverty and Change - Amartya Sen. (World Bank Staff Working Papers
3.
Alternative Solutions to the world's largest concentration of poor people - How
4.
Education and its Relation to Economic Growth. Poverty and Income Distribution
An estimated 50 per cent of India’s population is still functionally
N0:401)
poverty can be eliminated quickly in India - Michael Neri.
Past Evidence and Further Analysis - Jandyala B. G. Tilak
(World Bank
Discussion Papers).
fIMAIw \JoLT, AM fii^a.2001
it is a very expensive affair with the result that the children drop-out of
LOANS FOR EDUCATION
school. The irony is that these children who have studied so far in
In the year 2000, FWWB was approached by a network organization,
English medium (private school) are unable to catch up with the Telugu
ASMITA based in Secunderabad, Andhra Pradesh with an unusual
medium studies, that too in government schools and hence have no
request. The clients of the organization wanted to borrow funds for
other alternative but to discontinue their studies. They then end up
paying their children’s school fees. They did not seek any subsidy and
doing housework or looking after the younger brother or sister or get
were ready to borrow at the usual rate of 13.5% p.a. This request was
into child labour.
followed by request from another partner organization, Development
DOW, being based in rural areas, the people had accessibility only to
Organization for Women (DOW), based in Battlagundu, located in
the local government schools. The expenses here were very less with
Dindigul district of Tamil Nadu.
just one or two children in primary schools. About 67 per cent children
of the clients, who benefited, study in Government schools and the
In response to this demand, until now, FWWB has disbursed Rs.
20,00,000 to ASMITA which has been further disbursed to 1020
remaining in private schools. Whereas, in NLSS, amongst the children
members of Sharda Women's Association (SWA ■ A federation of SHGs
who benefited, 66 percent go to government school and the remaining
supported by ASMITA) and DOW has received Rs. 11,50,000 which
to private schools.
was disbursed to 500 clients. FWWB disbursed the loans at 13.5% to
Interviews with children in the villages brought out problems that the
both these organizations and they further onlent it at 20% flat. This
children faced in their immediate environment - about the noise in
year FWWB disbursed Rs. 5,00,000 to New Life Sewa Samstha
their colony and how it affected their studies especially during their
(NLSS), based in Trichy, Tamil Nadu, which was further disbursed to
examinations. They felt the need for having a library or community
200 clients at 24% diminishing rate. So far the total amount lent by
hall for the children to go and study so that they are not disturbed.
FWWB across these three organizations is Rs. 36,50,000 which has
benefited a total of 2897 children.
The school dropout rates, especially of the girl child were seen to be
quite high. The preference to make the male child study was higher as
The children, who benefited, were pursuing their education at the levels
they found investing in a male child to be more profitable since the girl
ranging from the primary to the university including some professional
child will grow up and get married. However, this behaviour was evident
and vocational courses as well. These loans have been used primarily
only when parents had to choose between the two (male or female child)
for paying their term fees, tuition fees, for purchasing books, uniform,
mainly due to financial constraints. The dependency on the moneylender
shoes and other related expenses.
for small amounts for various purposes still continues, this also includes
small amounts for books, uniform and other related expenses.
The selection criteria by the organizations was made on the basis of
(1) members of SHG having more number of female children, (2)
Seniority of groups and level Of savings and (3) Repayment regularity
Friends of Women's World Banking make available funds for
of previous loans.
the poor children pursuing primary and secondary level
education, and welcomes contributions from friends and
Those who received the loan said that, in spite of the amount being
small and their need to borrow additional amount from external sources
philanthropists. FWWB being a Trust, contributions are tax
(like local money lenders or neighbours at interest rates varying from
exempt.
3-10 percent per month), the amount proved to be useful, as it was
timely. Since SWA is located in an urban area, the accessibility to
It was found that there is huge demand for such loans, people are
English medium private schools is higher and it is very interesting to
demanding large amount as they said that the cost of educating a
note that most of the members of these groups wanted their children
child in a private English medium school will be approximately Rs.
to study in these schools despite higher fees as they felt that their
10,000 annually understanding the fact that, most of them want their
children can have an edge, both in terms of access to better education
children to study in private English medium school considering the
and job opportunities.
quality of education.
Interestingly, it was seen that about 70 percent children of SWA's clients
Loans used for the purpose of education have proved to be very
who benefited go to study in private schools and the remaining in
effective in case of all the three organizations and the demand for
public schools or other government aided schools. The demand for
such loans has been found to be increasing. Looking at the rising
finances for the purpose of education was found to be much more
demand for such loans, FWWB plans to build a separate fund to
than expected. Infact some of them also said that the fees can be transfe
advance loans exclusively for the purpose.
rred directly to the respective school / college instead of giving them.
Issues and Challenges:
Ms. Girija (Director of SWA) expressed her concern over the quality of
education in the government school, which is very poor and compared
•
Regardless of loans reaching large number of children the
it with the private school and also mentioned that this is one reason
probability of dropouts due to financial constraints is very real
why parents prefer to send their children to private schools inspite of it
and it is quite high incase of a girl child as the parent's preference
being so expensive. Eventually, they are unable to continue with it as
to make the male child study further was higher.
FlVlVS AW»- VoZ.3
2001
The cost of sending children to English medium private schools being
high, dependence on moneylenders for loans is still quite high.
To have long-term impact, it is essential that education loans be
provided on a continuous basis and not for a single academic term.
It was also observed that, children who have dropped out due to
financial reasons are unable to continue their studies even in
local government schools, because of their inability to cope up
with the low standards of education.
declining rate to 100 borrowers across 8 villages, with each member
getting Rs. 3500/-. In addition, DOW’s members were also able to get
Rs. 500/- as a subsidy from the District Rural Development Authority
(DRDA). SHEPHERD has so far disbursed Rs. 20,000/- to 10 members
across 4 villages, with each member getting Rs. 2000/- at 12% declining
rate. Although there remains a high unmet demand for sanitation loans
amongst SHEPHERD’S members, it is trying to link sanitation with
shelter upgradation so as to minimize the cost of construction. Most of
the clients of these four organizations are in their 2™ or 3,a loan cycle;
however, it is for the first time that they have taken a ‘sanitation loan’.
What's new in the
forthcoming issue of our
newsletter?
Market Research for Micro-finance
Following recent developments in understanding the needs of clients
and the growing competition, there has been increased interest from
MFIs in improving their product development skills. In this increasingly
competitive environment, MFIs must improve the quality of financial
services that they provide to their clients.
MicroSave-Africa, a CGAP/DFID/UNDP initiative, is a unique project that
promotes the development of savings and other more client-responsive
financial services among MFIs in East Africa. The project has emerged
as an industry leader in the area of market research and product
development for micro-finance. MicroSave-Africa is primarily involved
in activities like Action Research I Research studies, Curriculum
Development, Training and Dissemination.
MicroSave-Africa’s forte is client awareness training using Participatory
Rapid Appraisal (PRA) / Focus Group Discussion (FGD) techniques,
which is a uniquely important contribution of the project. PRA is used
primarily as a tool, by which participating communities with the
assistance of outside facilitators, collect and analyze information on
their own, about themselves, their lives and the community.
A training course on 'Market Research for Micro-finance’ conducted in
Uganda by MicroSave-Africa in May this year was attended by two Indian
participants, a Programme Officer from FWWB and the Director of
SPANDANA, an affiliate of FWWB. Subsequent to the training
programme, market research was conducted using PRA tools in
SPANDANA to assess the housing need of their members’ and design a
client-centred savings product for housing.
The selection criteria for sanitation loans as decided by the respective
organisations were based on:
I)
Duration of membership
ii)
Regularity/participation in group meetmgs/activities
iii)
Repayment performance of previous loans.
For the purpose of keeping costs low, SHARE and SPANDANA have
provided their members with specifications of design and materials to
be used for toilet construction. While the use of double-pit toilets was
stressed by the organisations, some of the beneficiaries, especially
those living in urban slums, chose a single-pit model, as space was a
problem. The material used for the construction of toilets was mostly
hollow cement blocks and in some cases, bricks. A local contractor/mason
was usually hired for such construction. In some of the villages, the client’s
husband was a mason himself, which helped in reducing labour costs.
SHEPHERD is currently in the process of bringing out a user guide on
‘Total Sanitation”. In some cases, SPANDANA has given building
material as part of the loan. Interestingly, most of the families in SHARE
and SPANDANA, who took loans for toilets, also constructed a
bathroom, even though this increased the average cost of construction
from Rs. 4000/- to Rs. 7000/-. This was managed mostly through own
funds and in some cases, borrowings from the moneylender at higher
interest rates. In some villages, a few families had already constructed
a bathroom with their own savings and therefore used this loan for a
toilet. Even those who had kuchha houses preferred to construct the
toilets first. In absence of a direct water connection, storage of water
for use in the toilets is usually done in a cement container, locally
Don’t forget to check out the next issue for details!!!
LOANS FOR SANITATION
Under this initiative, FWWB has disbursed a total amount of Rs. 29.5
lacs to four organizations- Rs. 21 lacs to two organizations, SHARE
and SPANDANA in Andhra Pradesh and Rs. 8.5 lacs to DOW and
SHEPHERD in Tamil Nadu, benefiting more than 700 clients. The loans,
which were made available by FWWB at 6% declining rate of interest,
have been utilized essentially for construction of toilets and/or
known as Thotti.
Individual toilets have proved especially useful to older people, more
so, people with physical disabilities, as they no longer need to travel
long distances to the fields to defecate. Sanitation loans also proved
very beneficial to women and adolescent girls, who now got greater
privacy and could use the toilet and bathroom anytime of the day instead
of waiting for dark. Interestingly, the importance and usage of toilets
was seen more in villages, which were near to towns, as such villages
either had very little agricultural land remaining or the fields were very
far. A number of borrowers had finished construction of the toilet but
bathrooms.
were finding it difficult to start using it because of their habituation to
SHARE has disbursed the sanitation loan of Rs. 3000/- each at 15%
squatting in the open. In fact, it was only during monsoons and the
per annum flat interest rate to 167 clients belonging to two rural
subsequent water-logging in the fields and low-lying areas that people
branches while SPANDANA disbursed Rs. 4000/- each at 12% per
preferred using their toilets. Looking at the limited awareness of the
annum flat rate to more than 250 clients in both rural and urban areas
borrowers regarding health, hygiene and maintenance, the organizations
around Guntur. DOW further disbursed the sanitation loan at 18%
plan to impart intensive training on such issues to their clients.
FU/U/g A/w4-
Ac^a2001
ELIGIBILITY CRITERIA FOR FWWB’S REVOLVING LOAN FUND SUPPORT
Key Selection Criteria for Organizations
FWWB's loan fund is available to SHGs/Federations, Non-Governmental Organisations (NGOs) and Non-Banking Finance Com
panies (NBFCs) at interest rates varying from 13.5% -14.5% per annum. FWWB's loan products include Bridge loans (for 2-5
months), short-term loans (upto 1 year) and medium-term loans (2-3 years).
An organization applying to FWWB for loan fund should:
1.
Be working exclusively with women, and have a minimum membership of 800.
2.
Have a cumulative member savings of at least Rs. 2 lacs.
3.
Have an experience of at least one year in the management and operation of the savings and credit programme.
4.
Have committed leadership and good book-keeping practices.
Proposals for loan fund can be sent at the address mentioned below. FWWB’s Loan Application Form is available on payment of
Rs. 100/-.
Note:
1 lac
=
100,000
1 USS
=
Rupees 47.00
Published by
FRIENDS OF WOMEN'S WORLD BANKING, INDIA
G-7, Sakar-1, Opp. Gandhigram Railway Station, Ashram Road, Ahmedabad-380 009
Phone: (079) 6584199, 6584082 • Telefax: (079) 6580119 • e.mail: fwwb@wilnetonline.net • Website: www.fwwb-india.org
W>£.? N*.1 fi^a2001
Volume 32, Number 1- January-February 2002
•Cetebratibri-
30ed
c&rinlversary
1971-2001
September 23, 2091
Jiang Jeong
The Bi-monthly publication of the Association of Asian Confederation of Credit Unions
tCtri'bdjCn-fS<L-6.
ACCU TO Bl 1IST IN 2002
"TO BE MORE liMSW TO MIK"
3.^3^ 2.
arking the start of the 2002, ACCU ensures that
members are well informed of what they could
(Sz' expect during the year.
On top of the regular
projects implemented, among those enumerated as priority areas in
°
4th Development Education Workshop on June 10-14 at the
Development Academy of the Philippines.
o
CEOs, HRD, Youth and Women Workshop on September 1618, aimed to update the technical
skills of credit union
professionals on the current trend and required skills to
modem business environment.
tlie “to do list” of ACCU in 2002 are:
To Boost Credit Unions' Savings:
°
o
Launching of the SMARTecns product, a savings program for
teens age 14 to 19. It is in response to the insignificant number
of youth using the services of credit unions.
Package at least two more savings products for senior citizens
and baby boomers.
To Professionalize Credit Union Operation:
•
Completing the Management Tools for credit union which
includes Operations Manual, Product Catalogue, Planning
Tools and Marketing Packages.
o
Asian Credit Union Forum 2002 in “New Format” on
»
Annual General Meeting of ACCU with “enhancements" on
September 22 in Bangkok, Thailand
September 19-21 in Bangkok, Thailand
ACCU counts on the usual support of its members. "The feed
back of the members on our sendees is our benchmark to keep on
innovating and be relevant to members", said Ranjith
To Market the Credit Union Advantage on Microfinance:
o
2002 is the year
of the horse.
Let's kick-off
with creativity
Co-organize the Regional Conference on Microfinance Policy
^^nd Governance with UN-ESCAP, APDC and APRACA on
Wtlarch 7-9. It is expected that this undertaking would market
the advantage of the Savings-based Microfinance of credit
unions, a truly sustainable approach to poverty alleviation.
innovation.
To Offer More Opportunity for Human Resource Development:
■>
Launching the Credit Union Ambassadors Program, Though
Board &
Manage
ment of
ACCU
exposures, internships, overseas volunteer assignment, both
professionals and volunteers could gain more skills and
experience in meeting the challenges in their respective
movements.
•
Accreditation of the Asian Leaders and Managers Institute
members. ALMI Members will be tapped to support ACCU
for in-country' programs.
______ ___ _________________ Um T Bn a s Hssong______ _____ ______________ _
o
©
o
©
Editorial
2
ACCU-Associate Member of WOCCU in 2002.. 2
ACCU Treasurer First on-Job Stint
2
Technical Review
3
°
©
®
o
CCULB Elected New Board of Directors
5
P.A. Kiriwandenlya
5
DCCCO: Most Outstanding
6
Des Getting Involved!........................................... 6
o
©
o
New in Brief
A Close-Up Look at NCR & North Sumatra
Credit Union People
A Member of the World Council of Credit Unions (WOCCU)
6
7
8
year
"The
ACCU- Associate Member of
WOCCU in 2002
passed
2001
unnoticeably" sighs most of
the credit union managers
who have been round the
clock working for the day-to-
day operation of their credit
Mind you!
unions.
At the
end of the day, the harvest
reaped
be counted
should
Management
too!
performance
would
equated
number
on
members
be
of
the
recruited,
he change of ACCU’s mem
bership status from Memberr
to “Associate” Member takess
effect beginning January 1,
2002.
ACCU was a full member off
the World Council since 1971. The
economic crisis has a great effect on"J
the ability of members to pay the full
dues since 1998.
amount of savings mobilized,
the
efficiency of collecting
loans
return
and
on
investments.
As the market has been so
volatile
and
competitive,
credit unions should prepare
brave
to
themselves
challenges
brought
globalize
the
by
the
environment.
the key issue is how
Today
to respond to the changes in
market
the
position.
every
to
maintain
This is applied to
The
level.
credit
unions need to maintain high
profile
by
member
satisfaction
maintaining
and
viability.
In WOCCU’s letter, Arthurr
Arnold, President and CEO said that1
ACCU’s proposal for a “progressive'
increment on full membership dues3
within 5 years with member privilege;
and rights was declined by the Board
to take such proposal in consideration1
as the Board cannot justify acting
upon such proposal for another 5 yearr
dues reduction when all otherr
WOCCU members (National andI
Regional) have paid full dues in thej
past and are committed to paying full1
dues in the future, and given the factt
o
o
©
o
o
that ACCU has already benefited from
considerably reduced dues during
years of 1998 through 2001.
ACCU as an Associate Member
shall be seated as delegate at
meetings of the General Assembly and
may participate in discussion and
debate, but may not make or second
motions or vote. Associate Member’s
access to WOCCU services will be
determined by the Board of Directors.
In addition to the timefy paymen^f
dues, the Board of Directors may
require members to meet other
responsibilities that are consistent
with the bylaws of WOCCU.
As an Associate Member, ACCU
members will pay a flat rate of US$
10,000. The Full Membership dues is
based on Assets and Membership
which is roughly US$51,000.
o soaoaoaonoaoa
/.
ACCU Treasurer’® First Osa-tbe-Job Stint in
BKK Completed
2002 is another year of
Sustaining
challenge.
membership growth is very
important because this is the
main source
credit
of growth of
union's
business.
and
assets
Not to mention
this is our mission...to make
our
services
financial
available to everyone.
Therefore,
every
single
credit union should set a goal
and
innovative
identify
strategies
to
maintain
market
position.
unions
should
the
Credit
be
not
satisfied with its present state
but
should
seek
more
innovation and creativity in
the
way
members.
it
is
serving
its
r. Lechumanan, the newly
elected Treasurer of ACCU
had his first assessment
of the financial operation of
ACCU (Bangkok) on December 24, 2001 after his
appointment
in September 2001 in Hong
Kong. Dr. Lechumanan is the
President of the Workers’ Credit
Cooperative Society in Malaysia.
D
The present treasurer physi
cally examines the financial
transactions and financial
Dr. Letchumanan (far right) facilitating the Strategic
position of ACCU on a quarterly
Planning Session of H'CCS
basis while financial reports are
submitted on a monthly basis.
The management briefed the
plans of ACCU.
In general, the
Treasurer on the Internal controls,
Treasurer was satisfied with the
reporting system, fund management
financial management system adopted
and operational plans. The Treasurer
within the organization.
and management discussed financial
Technical Review:
Board Mina® Wuation
must organize a system for evaluating
personal development and training.
cial environment demands
its own performance.
The
Lhat individuals on a credit
board to establish criteria which can
oday's business and finan
T
union
developed
board
leadership
have
highly
skills
and
It is up to the
be used to evaluate the quality of that
performance.
Then, on an annual
responsibility
for
addressing
these areas lies primarily with the
individual
should
director.
lead
the
The
process
establishment
of
awareness of their responsibilities. To
basis, the board of directors could
realistic but measurable goals for each
director for litis year, which can be
be truly effective, evaluation must
meet to compare individual assess
start at the lop. But who will evaluate
ments
the evaluator?
functioning.
In Asia, the performance of
a
of how
well
the
board
is
the analysis.
The following evaluation form is a
Board member is measured at election
sample
time. But that is not enough. Aboard
Evaluation
used as benchmarks when completing
Director
Individual
that
indicate
Self-
areas
Source:
Training Manual Module VIII of Credit
Union Central of Canada
for
Director Seif-Evaluation
1. POOR-1 consistently
do not meet tlie desired
levels of performance in
this area.
2.
Needs
Improve
ment- 1 regularly do not
meet the desired levels
of performance in this
area
3. Average- I generally
meet the desired levels
of performance, occa
sionally do not meet
them, but occasionally
exceed them.
Circle
One
4. Very Good- I meet
the desired levels of per
formance. seldom do
not meet them and fre
quently exceed them
5. Excellent-I consis
tently exceed the de
sired levels of perform
ance.
8.
I understand my individual and joint responsibili
ties as a director and the legal consequences of 1 2 3 4 5
being the ultimate authority in the Credit Union.
9.
1 appreciate the future implications of current
decisions and the implications on the organization
of a lack of proper decisions.
1 have an
anticipatory attitude towards decision-making
A. Decision Making
1.
1 have a good understanding of the aims and
objectives of the Credit Union.
2.
I contribute toward the development and refinement of the aims and objectives of the Credit
I 2 3 4 5
1 2 3 4 5
1 2 3 4 5
B. Advisory Function
Union.
3.
4.
5.
I understand that the Board of Directors is the
final authority in the Credit Union, and respect
management's right to act without interference
within guidelines set by the Board.
While I do not infringe on management rights, I
am also aware of the rights of the board and do
not allow management to infringe on lite board's
areas of responsibility.
I realize that, except when I am functioning as
part of the board or a committee at a duly called
meeting, I have no more authority than any other
10. 1 understand the difference between board and
1 2 3 4 5
11. In the performance of the board's advisory
function, 1 understand that it is management's
1 2 3 4 5
I ask discerning questions during the meetings
relative to the reports being tabled.
7.
I am aware of lite key issues facing die Credit
Union today and am trying to search for and
anticipate the key issues for the future.
1 2 3 4 5
C. Trustee Functions
13. I have a good understanding of the regulations
member.
6.
1 2 3 4 5
prerogative to accept or modify the advice it
receives from the board.
12. 1 maintain contact with members in order to give
representation to their concerns and needs.
1 2 3 4 5
1 2 3 4 5
management responsibilities
1 2 3 4 5
1 2 3 4 5
and bylaws governing the operation of the credit
union so that 1 can determine if the business is
operating within these guidelines.
1 2 3 4 5
14. 1 have a good understanding of the regular
financial reports (Balance Sheet mid Statement of 1 2 3 4 5
Operations).
15. 1 have good understanding of our Credit Union's
position in respect to tlie key financial indicators 1 2 3 4 5
of liquidity, profitability, equity and risk
exposure.
26. I participate in the perpetuation of a sound,
effective board of directors. I contact prospective
1 2 3 4 5
nominees, discuss this with members on ongoing
basis, and help identify the needs of the
organization.
16. I actively participate in tlie evaluation of past
performance of the board and tlie general manager 1 2 3 4 5
based on predetermined standards in the key areas
and in planning future goals.
17. 1 allocate sufficient time to my role as director. 1
am well prepared for meetings.
Materials I 2 3 4 5
provided to me in advance of a meeting are
reviewed by me and questions noted in advance.
18. I understand the majority of tlie reports received
for Credit Union evaluation, and know how to
analyze them.
27. 1 maintain board solidarity’.
I do not disclose
aggravate board differences.
1 support board
decisions even if I was opposed at tlie board
discussion level. I do not actively oppose board
decisions or undermine board activities.
28. As a director, I realize that I am part of a team and
willing to forego my personal goals to support
team goals which have been established through
1 2 3 4 5
1 2 3 4 5
full participation of the board.
1 2 3 4 5
29. I communicate well with other directors and
1 2 3 4 5
members of management.
19. 1 clearly separate my personal interests from my
responsibilities as a director.
1 2 3 4 3
30. As a director I stay attuned to activities and
changes within tlie organization including those
at tlie central level.
20. I try to influence decisions for tlie benefit of the I 2 3 4 5
members, as opposed to my own benefit.
21. I am willing to contribute my personal time to
achieve the competence required of an active
director.
1 2 3 4 5
I 2 3 4
1
k
31. 1 am prepared to participate in district regional 1 2 3 4
level and provincial meetings.
32. I have a good understanding of the democratic
control structure of tlie credit union system and
allocate time for participation in tills structure.
1 2 3 4 5
D. Participation Function
E, Symbolic Function
22. I participate openly at meetings by asking
appropriate questions and offering constructive 1 2 3 4 5
comments.
23. I recognize the different talents of fellow board
members, and try to develop spirit of unity on tlie
board.
I appreciate tlie benefit of diverse
opinions.
1 2 3 4 5
33. I contribute towards people’s confidence in tlie
Credit Union by keeping my financial affairs in
34. I personally support tlie business of the Credit
Union
24. My attendance is regular and punctual
25. I am prepared to stand alone if necessary in order
to bring issues to the attention of fellow’ board
members.
<
effectiveness. The activity is a basic part of the
If there is a score of less than 3 on any
question, you need to highlight that area and
develop a plan to improve it.
Every Board should ask
itself the
following questions:
How well does our board do
•
•
not likely to feel the same commitment to
recommendations that arise from analysis of the
data that the participants in the self-evaluation
process.
Employee participation is also important in
this process. By asking employees to participate
in the evaluation of board effectiveness, the
board can “round out” its perceptions of its
I 2 3 4 5
35. I treat tlie confidential business of tlie Credit 1 2 3
Union in strict confidence.
Overall Performance Assessment:
There are several prerequisites for carrying
out the self-evaluation process. The Board must
first accept and believe on die self-evaluation
because it will be carried with full board
involvement. Uninvolved board members arc
1 2 3 4 5
order (e.g. I am not in arrears or in breach of any
loan agreement; I am a member in good standing;
I have not had any problems with overdrafts).
•
itsjob?
Do we function as
effectively as possible?
Individually, how can we
work to improve out overall
•
performance?
How are we going to assess
our progress toward
improved performance?
360 degree feedback concept, that is, getting
feedback from a variety of individuals who can
offer different perspectives based on their
various relationships with Ute individual. After
tlie evaluation, tlie next question is Now
What?
Commitment to specific plan of
action.
Board self-evaluation is one component of a
total program of organizational assessment and
evaluation. Il is an internal review of how the
board conducts its affairs, carried out by those
who know the board best.
In the next issue, we will be publishing
(lie Board Performance Evaluation. It is an
overall evaluation of the Board’s effectiveness
For more information, you can contract ACCU
directly.
cculb Elected New Beam of Directors
he Cooperative Credit Union
T
League of Bangladesh elected
new
the
set
of
Board
of
Directors at its 15th Annual General
Meeting on January 4, 2002.
The
Mr. Jonas
following were elected:
Dhaki —Chairman; Mr. Mazibar Rah
man-Vice Chairman; Mr. James
D.
Corraya-Secretary and Directors are:
Mr. Francis Gharami;
Haji Abdus
Salam Khan; Mr. Shafiul Alam; Mr.
Peter Baroi; Mrs. Mina Maria Mrong;
Mr.
Kabirul
Islam;
Proshanto
Mr.
Mondol and Mr. Nirmol Rozario.
According
to
Stephen,
General
Mr. Joans Dhaki (right) reelected as Chairman of CCULB
Manager, the Board of CCULB is a
representation of the entire country
and different denominations.
He added
that the credit union is the meeting point
of
people
with
same
values
and
Mr. Jonas Dhaki is also serving as the
2nd Vice President of ACCU.
commitment on "people helping people".
‘To get something done a
PA KIRIWANDENIYA RECEIVES HONORARY
DOCTORATE DEGREE
committee should consist of
no more than three people,
two of whom are absent. ”
r. P.A. Kiriwandeniya received
Robert Copeland
M
honorary Doctorate Degree in
Development
the University of
Lanka in
in
Economics from
Ruhunu in Matara, Sri
recognition of his leadership
spreading rural financial institutions
(credit unions) throughout Sri Lanka that
serve people who do not have
access to
formal financial institutions.
The degree was awarded to him on
November 16, 200'1 was shared with the
SANASA leaders on the occasion of the
Award
giving ceremony on
December
17, attended by approximately 250 leaders
Dr. P.A. Kirimndeniya ofSANASA
throughout Sri Lanka. The ceremony was
graced by Dr. A.T. Ariyarathna, Chairman
of Sarwodaya movement who praised the
awardees in keeping their commitment to
the credit union movement.
Dr. Kiri said that the degree is not only
for himself.
He offered the degree to
those people who dedicated their time
and skills to establish more than 8,000
primary credit unions now serving poor
communities in Sri Lanka.
Ranjith Hetlirachcih, Chief Executive
Officer of ACCU received a recognition
award for the excellent contribution in the
development of Management Structure
and
Institutional
SANASA.
He
was
Development
the
first
of
General
Manager of SANASA from 1983 to 1992.
E» WT«BE®
E®01 CMP KI WE
PFCCO Leagues Ready
for Microfinance:
By: Virgie Bautista, DE
'
umaguete
Cathedral
I Credit
Cooperative
(DCCCO), Dumaguete
City, Philippines got first place
as Most Outstanding Credit
Cooperative in the category of
community type as a result of
the Cooperative Development
Authority's 2001 Search for
Outstanding Primary Coopera
tive in the country. Awarding
ceremonies
was
held
at
Century Park Hotel in Manila
on November 10, 2001.
Receiving the award were
Dr. Sylvia Fiores, Chairperson,
Mrs.
Felicidad
L.
Ruiz,
Manager and Mrs. Evelyn M
Lazalita, Member of the Board
DCCCO, an affiliate of the
Philippine Federation of Credit
ourteen
Development
F
Educators attended the
PFCCO’s celebration of
the International Credit Union
Day on October 20, 2001,
reported Virgie Bautista, DE
from Dumaguete Cathedral
Credit Cooperative.
On that
occasion, PFCCO organized a
consultation meeting with the
Development
Educators
seeking their commitment to
help revitalize PFCCO
Recognizing the
present
challenge
on
financial
sustainability, the Board of
PFCCO,
in
its
Strategic
Planning exercise identified the
Development Educators as one
source of
strength.
Danny
Ang Secretary of PFCCO and
DE himself emphasized in the
meeting that DEs are assets.
They could provide quality
cooperative
education
and
technical assistance. On behalf
of PFCCO, DEs could provide
professional training programs
such
as:
Product
Development,
Strategic
Planning, Credit Management,
Policy Development, Customer
y jTc.y
news9
gm UMeS;
u
Cooperatives (PFCCO) was also
The experience of (lie two
first placer in 1997 as Most
Outstanding Credit Cooperative
(community type) category in
projects supported by ACCU
in the National Capital Region
and Northern Mindanao in the
the Philippines.
One more
award of same level will place
DCCCO in the Hall of Fame.
Philippines encourage other 4
Leagues in the Philippines un
der PFCCO affiliation to im
This attributed to the aspects
of sound
and
systematic
plement the microfinance in
novation
record-keeping
system,
community impact, and selfreliance.
Add to this Is the
playing "big brother" to small
coops and extending technical
assistance in strengthening
program to coops who need it
DCCCO is also boasting 4
Development
Educators
namely:
Dr Sylvia Flores,
Fely Ruiz and Virgie Bautista
(batch 1999) and Carmen P.
Bayion (batch 2000).
They
Relation Service,
and
other
advance training
that
are
not
available at the
League
level.
The DEs are in
full support of
the idea. As a
professional
group, the DEs
would
provide
technical
assistance and
advance training
to the leagues
on behalf of PFCCO.
arrangement is still
worked out said Virgie
in
Credit
Unions.
The workshop on December 8-
9 facilitated by ACCU siiarcd
the experience and implemen
tation methodology.
It also
included the plan on institu
Dr. Sylvia Flores, Chairperson of
DCCCO
tional capacity building oL
partner credit unions.
Tlfl
league
managers
are
deter
mined to become relevant to
are now playing a lead role in
consolidating PFCCO network.
its members which is the only
way to reach sustainability.
Conference on Microfinance
Policy and GouernanceMarch 6-8,2002, Bangkok
ACCU will be co-organizing
lhe conference on Microfi
nance Policy and Governance
along with United Nations
Economic
&
Socia*
Commission for Asia and the
Pacific
(UN-ESCAP),
the
Asian
and
Pacific
Development Centre (APDC)
s omc of DEs in the Philippines
The
being
The DEs again met on
January 26, 2002 for the orien
tation of INDECUA technical
assistance. Capacity building
of credit coops would be their
project
It would be part of
PFCCO’s service to members.
"We want to ensure that
PFCCO is responsive to the
needs of the members. This is
our commitment as DEs." said
Sylvia Flores.
It may be recalled that
PFCCO
has
changed
its
structure from two to three tier
system. The league enhance
ment program is in full swing
since 1998.
Membership of
primary credit unions to PFCCO
has been transferred to the
Leagues.
This has created a
huge challenge to the financial
sustainability of PFCCO.
At present there are 70
Development Educators in the
Philippines graduated from the
three workshops conducted by
ACCU.
and the Asia Pacific Rural &
Agricultural
Credit
Association (APRACA).
The conference is aimed to
develop a regional program of
cooperation that will focus on
strengdrening the capacity of
microfinance
institutions
including credit unions.
Microfinance
practitioners
are invited to participate.
Conference details could be
obtained from ACCU. E-mail
accuran@ksc.th.com.
Registration deadline is on
February 15, 2002,
News fa
CULT Strategic Planning
Exercise Started
ACCU facilitated two stra
tegic planning sessions with
the senior management of
CULT on November 22 and
December 6. 2001. The first
two meetings were focused on
assessing the financial per
formance of CULT where
strengths and weaknesses were
highlighted.
Sahaphon.
the
General
Manager emphasized that it is
important for CULT to know
where they are now and where
fte organization is heading.
The involvement of the key
staff and the branch managers
of CULT is very important to
come up with a strategics dial
consider die input of die
implementers,
Sahaphon
added.
The Management is
A C10SL B®
NCR &
sx
BWll SDBBIWS FlW0iiM©B sEEs
meat Bulletin on
CCU in partnership
A
with the Philippine
Federation of Credit
Cooperatives, Credit Union
Coordination of Indonesia
and Credit Union Foundation
Australia with die support of
Australian
Agency
for
International
Development
(AusAID)
developed
a
project incorporating two
contrasting implementation
environments,
the
slum
suburbs of Metro Manila and
die rural villages in North
Sumatra. The members and
partners
share
their
experience...
Case Study of Mrs. Remy
E-poor's microenterprise activity also provides Job for out of school
youth in NCR Manila
Macabata, a Group Leader
(Philippines)
SHGs interviewed said that the
The five women in Remy's
in the broader Metro Manila
and the group is negotiating to
SHG are neighbours anil all are
supply a wholesaler for wider
the microfinance scheme is now
to provide more information
on die present status of CULT.
The tiurd session which will
engaged in rag making.
distribution.
having a secure place to save
be with die Board of Directors
of CULT is scheduled on
finance project from other peo
Coop but was unable to meet the
ple previously recruited by Sikap
initial capital deposit require
January 26.
Development
ment of Pesos 500 (US$10) for
doing its assigiuncnt and
working closely with ACCU
SANASA to Implement
Microfinance for Women
It was
an existing microenterprise and
the women learned of the micro
Cooperative
Prior to joining the SHG,
Remy was aware of the Sikap
(partner CLl).
The group mem
bers were all
keen to join the
tion now of each group members
scheme because it offered access
is to become a regular member of
to savings vehicle, such
the cooperative.
access
regular membership.
The ambi
previously being unavailable to
The December visit of CEO
to SANASA concluded with
die agreement to implement
the
project
on
Women
Empowerment through Micro
finance to select primary
societies.
The project has a target to
outreach entrepreneurial poor
women,
provide them an
access to financial services.
entrepreneurial skills and mar
ket. The project is designed to
uplift die living standards of
women by empowering diem
economically. The first project
planning with the select credit
unions is scheduled in the later
part of January.
The project
is under the sponsorship of
Agriterra of the Netherlands.
Although indi
any of them.
vidually they had been able to
save
Pesos 20 (US$.40) this
amount is too small for a bank to
Credit Union Sataiop in
North Sumatra
The credit union joined the
be interested in processing and
microfinance
saving at home leads to tempta
background of previous history
scheme from
a
main benefit gamed from joining
regularly.
This was a facility
previously denied to ten of the
members, the other had been able
to save in a People's Bank, but
he
had
now
transferred
his
allegiance to the microfinamce
scheme. Prior to the MF scheme
starting up, any surplus cash
tended are spent.
A perception of some
development sector observers
is tiiat credit unions have
evolved over a period of time
to become banking vehicle
members, rag making activity by
poultry raising,
crop farmers.
all the women had been sporadic
Church was the instigator of this
for the middle class. Be diat
as it may, since 1990 ACCU
has
been
implementing
microfinance program witit
its members With low-cost,
innovative methodology for
increasing outreach to die
“have less" in the region.
as they lacked capacity to borrow
tion
to spend.
Savings are
collected daily from the group
with group lending
involving
regular
activities
members,
members and deposited daily to
albeit with larger groups (20-25)
Sikap Coop.
formed on occupational lines e.g.
Prior
to
becoming
MF
pig farmers,
The Catholic
approach using group solidarity
partner credit
the capital
required
work
as the basis of group interaction
consistently.
The loan from the
and when the Church withdrew
proven titeir relevance. The
ACCU/CUFA-AusAID
to
MF project is the first loan any
its support, the credit union took
of the women had ever received
over.
New members are given
a flexible membership alternative
and they are now producing
continuously for sale in local
street markets.
There is on
going demand for this product
to credit union that would allow
them an access to financial
services.
Members of the 2
unions
have
partnership
has
approxi
mately 4,300 outreach. The
experience has served as
model. It is now replicated
in other parts of Indonesia
and Philippines.
Credit Union Leaders
Appointed:
Elected:
Ms. Saranya Pisanvinyakul as
Mr. Ivano Barbcrini,
Secretary/Program for ACCU.
dent
Saranya replaced Ms. Umporn
Cooperative
Pelsom, whose contract expires
Annual
December
on
Management
31,
2001.
held
Credit
Union
the
Presi
International
Alliance
General
October
17,
in
its
Meeting
in
2001
Seoul, Korea. Mr Barberini is
welco me s
Saranya as a new member of
the
of
President
Family.
of Legacoop
and
has over 40 years experience
Saranya officially joined ACCU
in
team in Bangkok on January 3,
movement.
2002.
co-operative career in the consumer co-operative sector
and since 1996 has held the position of President of
Mr. Shil Kwan Lee as Regional Director of the Interna
tional Co-operative Alliance Regional Office for Asia and
over 10,000 co-operatives
the
co-operative
He
began
his
Legacoop, a multisectoral organisation which represen^
the Pacific from January 2002.
He worked closely with
ICA's member organizations in the region as the General
Manager
of
the
National
Agricultural
Cooperative
Federation of Korea.
with more
than 5
milluW
members. Mr Barberini has also been very active in
working with European and international movements
promoting
co-operative
values
and
principles,
collaboration among co-operatives and has also been
involved in solidarity actions for developing countries
and emergency aid.
hs AssoelaBen of Aslan Caufaderatlon
af Crest Unta Is an alliance of
national credit union leagues,
confederation, and promotion centers of
Aslan coffiitrtes. ACCU werKs In partnership
with memhers to strengthen end promote
credit unions as effective Instruments for
smdogmoulc development of tho people.
T
Board of Directors:
Editorial Staff:
Jin Woo Park- President -Korea
Charles Yip Wai Kwong-1 st Vice PresidentHong Kong
Jonas Dhaki -2nd Vice President Bangladesh
Michael Koisen- Secretary -Papua New
Guinea
M. Letchumanan-Treasurer-Malaysia
Ranjith Hettiarachchi
Elenita V. San Roque
Saranya Pisanviriyakul
Samorn Toscha
Kanisorn Punyaprasiddhi
Phanupong Lunakarn
Association of Asian Confederation of Credit Union
P.O.Box 24-171 Bangkok 10240 Thailand
Tel. 374-5101, 374-4705, 374-3170 Fax : 662 374-5321
E-mail: accuran@ksc.th.com
http7Aivww.aaccu.net
AIRMAIL
PRINTED MATTER
Providing Health Insurance to members
of microfinance
.TZZZZSEffii
Introduction
In this note we will discuss how mFIs/NGOs
can provide health insurance for their members.
Specifically, we will discuss the health
insurance scheme currently available through
the four nationalized insurance companies.
The health insurance coverage
currently available through
insurance companies in India
is for expenses incurred on
hospitalization,
and
for
medicines and laboratory tests
directly
related to the
hospitalization for which
Claims are made.
Some details of Scheme
Design and Coverage
1.
2.
FROM THE EDITOR'S DESK
We would like to thank our readers for their
positive response to our first issue of Micro
insurance Infoline. In this second issue, we focus
on health insurance.
In a recent study on the insurance needs of
members of microfinance institutions (mFIs)
commissioned by FWWB, it was found that
health-related crises were the most common type
of crisis faced by the poor. The
study found that there was at
least one occurrence of serious
illness per household in the last
CONTENTS
two-three years, and 75% of
these illnesses resulted in
hospitalization. The average cost
1 Providing Health Insurance to
per household on illness in the
Members of Microfinance
last two-three years was Rs.
4000.
Programmes
1
2 Medi Claim Bima Policy Hospitalisation Benefit Policy
3 Jan Arogya Bima Policy
Generally health insurance
4 Innovation for Women's
policies are annual policies,
and have to be renewed
Health Care Needs
each year.
The insurance company is
particular about how it
defines a hospital and a doctor and will
honour only those claims where services
have been obtained at hospitals and from
doctors meeting the set standards. The
standard definition for hospital is a facility
5
6
Globally too, it is seen that
sickness and injury are the most
common risks faced by the poor.
Health insurance can provide
good coverage against this type
of crisis.
In this issue, we will first discuss
some
issues
relating
to
implementation, of health
insurance by an mFI/NGO. We
then present the Mediclaim policy and the Jan
Arogya Policy offered by the four Indian
nationalized insurance companies. At the end,
we have described an innovative Health Loan
Fund initiated by SHEPHERD, one of FWWB's
partners in Trichy, Tamilnadu.
6
One way to extend the insurance coverage
across the entire family without paying the
premium for all the family members is to buy a
floater policy, which we have described below.
While floater policies are relatively uncommon
in India, they can be negotiated with the
insurance companies.
that is open 24 hours and is registered as a
hospital. If not registered, the facility should
have at least 10-15 beds (depending upon
location, i.e. urban/rural) and be open for 24
hours.
3.
As mentioned above, the premium for the
insurance coverage depends on the age of
the insured person. In the case of group
policies, the average age of the group's
members is considered.
II. How much financial coverage to take : The
'financial coverage' or 'sum insured' means the
amount of money the insurance company will
reimburse to the insured person for expenses
incurred
on
the
insured
person's
hospitalization. Insurance companies offer
different amounts of financial coverage. The
higher the financial coverage a person wants,
the more premium she has to pay. The premium
also depends upon the age of the insure!
persons.
Two important choices that a person buying
hospitalization insurance needs to make
I.
How many persons in the family to insure
II. How much financial coverage to take
I. How many persons in the family to insure :
Naturally, a person would like to have all the
persons in her family covered under
hospitalization insurance. However, the more
the number of family members covered, the
higher the premium.
How does a Floater Policy Work
Suppose a family has five members - two parents and three children. The family would like all its
members to be covered by hospitalization insurance, but paying the premium for five members
would be very expensive. Also it is unlikely that all five members will be hospitalized in one
year. It can therefore choose to take a floater policy.
To design a floater policy, the family has to choose two things:
i.
how many of its members will be covered by the policy, and
ii. how much financial coverage to take.
Based on the choices it makes, the insurance company will decide the premium.
The family can decide that it would like coverage for only the two adults in the family, since it
feels it is unlikely that the children will be hospitalized. Alternately, it can decide to have all five
members of the family covered under the scheme, so that the insurance would cover
hospitalization for any of the five family members.
The more the number of persons that are covered under the floater policy, the higher the
premium, if the family decides to cover only the husband and wife under the policy, the
premium will be lower than if it covers all five family members. This is because the probability
of hospitalization occuiring among two persons is lower than the probability of hospitalization
occurring among five persons.
MicroInsurance Infoline from FWWB
2
October 2001
The family also needs to choose the amount of financial coverage or 'sum insured'.
Suppose the family decides to insure only the two adults in the family, and chooses a maximum
claim amount of Rs. 10,000 per year.
The premium rate will be fixed taking into consideration both these factors, i.e. the number of
persons covered under a floater policy and the financial coverage or 'sum insured'.
Now, suppose the wife is hospitalized and Rs.10,000 is spent on her illness. Then, if the husband
happens to need hospitalization in that same year, the insurance company will not pay his
hospitalization expenses. This is because the claim limit of Rs.10,000 will have been used up for
the hospitalization expenses of the wife. If the wife's hospitalization had cost Rs.6000, then the
insurance company would have been willing to cover the husband's hospitalization expenses
upto a maximum of Rs. 4000.
Items That Can Be Negotiated With The
^Insurance Company
ii. Definition of hospitalization: The standard
definition of hospital as per the insurance
company i.s given above. However, the mFI/
NGO may be able to negotiate with the
insurance company to include smaller
hospitals in case of members living in remote
areas. For this the mFI/NGO should have
knowledge about the types of medical
facilities used by its members.
' When an mFI decides to purchase a group
health insurance for its members from the
insurance company, it can negotiate certain
terms and conditions with the insurance
company. An mFI buying a group policy for a
large number of individuals brings good
business to the insurance company. In return,
the insurance company may be willing to offer
certain concessions to the mFI. Some of the
items that can be negotiated with the insurance
company are:
iii.Limited claim settlement authority: The mFI/
NGO can negotiate with the insurance
company to give the mFI/NGO limited claim
settlement authority. Under this, the mFI/
NGO can settle claims upto a mutually
agreed upon limit, without sending the
documents to the insurance company. The
insurance company will of course bear the
cost of the claim, but the decision about
i. Rate of premium: By taking a group policy,
the mFI can get group discounts. The larger
the group and the lower the average age of
the group members, the lower the premium.
MicroInsurance Infoline from FWWB
3
October, 2001
In addition, members can be given pamphlets
with written information about the insurance
programme which they can take home with
them. Even illiterate women value written
information which they can take home. Even if
they cannot read, some family member or
neighbour can read it to them.
whether to pass the claim or not will be with
the mFI.
This system allows faster settlement of small
claims, as the documents do not have to be
sent to the insurance company. The
insurance company also saves on
administrative costs which it would incur in
processing these claims.
However, having a limited claim settlement
authority
places
two
additional
responsibilities on the mFl/NGO.
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First, it has to have the administrative
apparatus to process these claims.
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Second, the responsibility of ruling out
fraudulent claims falls upon the mFI I NGO.
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iv. Maximum period for settling claims: The
mFl/NGO and the insurance company can
mutually agree upon the maximum time that
the insurance company will take to process
claims. This will prevent the problem of
delays in claim settlement.
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The Importance of Giving Complete
Information About the Scheme to Members
One of the reasons that people do not have
faith in insurance companies is because the
insurance companies do not always clearly give
all the relevant information to the insured
persons at the time of buying the policy. Many
details of expenses which are not covered
under the policy become clear only when a
claim is filed.
Oj
KXiro-Wl)-, zww
An mFI which decides to offer insurance
services to its members needs to ensure that its
members have complete faith in the
programme. For this it is very important that the
mFI conveys complete information to the
members about the scheme. This can be done
through trainings and workshops on insurance
for the members and leaders.
Microinsurance Infoline from FWWB
-&oiS6o
&ixi>oni> &0&0
(EXAMPLES OF TWO POSTERS DEVELOPED
BY SPANDANA IN ANDHRA PRADESH)
4
October, 2001
Medi Claim Bima Policy - Hospitalisation Benefit Policy
Risk covered
- Hospitalization due to disease, accident1
- Medical expenses 30 days prior to, and 60 days after
hospitalization
Who is eligible and
- Anyone between 5-75 years of age;
Age limit:
- Children between the age of 3 months and 5 years of age can be
covered provided one or both parents are covered concurrently
Who is the
- The member - in the case of Individual policy
policyholder ?
- The organization - in the case of a group policy
What is the
- The premium varies with the insured person's age
premium rate ?
- Minimum Rs. 175 per member per year for persons under 45
years
What is the sum insured ?
- Minimum sum insured is Rs. 15,000
Discounts (if any)
- For individual policies, family discounts of 10% if more than one
family member insured;
- Group discounts available depending on size and average age of
group members. Minimum group size is 101.
Who receives the
- Individual in case of individual policy
claim amount ?
- In case of group policy, organization or individual, as agreed
upon.
Claims procedure and
- Preliminary notice of claim within 7 days of discharge from the
hospital (policy number, illness, name and address of attending
0documents required for
medical practitioner etc.).
making a claim
-
Final claim should be submitted to the company within 30 days of
discharge from the hospital, along with receipted bills/cash
memos, claim form etc.
Exclusions
- No pre-existing diseases covered.
- Childbirth related hospitalization is not covered.
- Surgeries for hernia, cataract and hysterectomy are not covered in
the 1st year.
-
No hospitalization within 30 days except in case of accident.
Hospital is defined as having at least 15 in-patient beds. Minimum stay of 24 hours required in hospital to qualify for
claim. This definition may sometimes be relaxed in the case of certain surgeries like cataract, kidney stone removal
etc. which require shorter stays due to advanced surgery techniques.
Microinsurance Infoline from FWWB
5
October, 2001
Jan Arogya Bima Policy
This policy is a variation of the Mediclaim Policy described above. It has a lower premium and sum
insured to make it affordable for the lower income groups. The other terms and conditions of the Jan
Arogya policy are the same as the Mediclaim policy.
What is the premium rate ?
Premium varies with the age of the insured person.
Minimum Rs.70 for person upto 45 years of age.
What is the sum insured ?
Fixed sum insured of Rs.5000 per person.
Discounts
Discount for group of 101 or more members.
Floater Policy under the Jan Arogya scheme : We have given here an idea of the cost of buying a
floater policy, under the Jan Arogya scheme. If one member (below 45 years of age) of a five-member
family were to buy the Jan Arogya policy, she would pay Rs.70. If the family of five (all members
below age 45) wants to buy a floater policy covering all five members the premium may be around
Rs.140. This figure of Rs.140 is a rough figure. Exact premium calculations take a number of factor?
into consideration such as age, number of members covered by the floater policy, health hazards
faced by family.
Innovation for Women's Health Care
Needs
.
LZZZ3BM
A common crisis faced by SHEPHERD'S
members is unexpected illnesses, many times
leading to hospitalization. Often, members
neglect treatment of their own illnesses due to
lack of funds. This neglect is compounded by
the lack of importance given by women to their
own needs. To address this need, SHEPHERD
launched a novel health loan fund, known as
the Nanya Surabhi Health (Sugam) Loan Fund
in early 2001. The loan fund is managed by th J
leaders of the SHG federations.
SHEPHERD, a microfinance and development
institution in Tiruchirapally, Tamilnadu, has
been FWWB's partner since 1999. SHEPHERD
has promoted 226 self-help groups (SHGs) in
123 villages. These SHGs have been organized
into 10 federations which are managed by the
women leaders of these federations.
SHEPHERD believes strongly in people
managed institutions, and has invested
significantly in building the capacity of the
federations' women leaders. In addition to the
more common microfinance services of savings
and loans, SHEPHERD has been trying out
different methods for reducing the vulnerability
of the women members through insurance and
other innovative programmes.
The Nanya Surabhi Health (Sugam) Loan Fund
is made up of one-time member contributions
of Rs.20 each and a one-time grant. The grant
component of Rs.50,000 was provided by
FWWB. The member contributions constitute
50% of the total fund.
SHGs can choose whether they want to
participate in this scheme or not. However,
once an SHG decides to participate, all its
members have to compulsorily participate.
Thus participation in the scheme is voluntary
for the group but not for the individual member.
Currently members of SHEPHERD are offered
life insurance through the Life Insurance
Corporation of India, and livestock insurance
through United India Insurance and New India
Assurance Company.
MicroInsurance Infoline from FWWB
6
October, 2001
In the event of a member's illness, she is
eligible to borrow up to Rs. 2000 from this fund
at 0.5% interest for treating her illness. The loan
taken has to be repaid within 12 months. This
facility is available only for the women
members and not their families. This is because
as mentioned above, the specific purpose of this
fund is to ensure better health of the women
members, which is otherwise neglected.
MicroInsurance Infoiine from FWWB
The procedure for getting a loan is simple. The
group members have to sign a group resolution
passing the loan, following which the
federation releases the loan the same day.
Up to the end of August 2001, 17 women have
availed of this facility.
October, 2001
FEED BACK
We want this Micro-insurance Infoline to be a useful document to our readers, particularly to
microfinance institutions which are interested in instituting insurance programmes for their
members. We would also like this Infoline to be an active forum of information sharing. To help us
in this objective, we request you to please fill out the following and send it to us. (You could
simply photocopy the form and mail us the copy).
1. How did you find the articles in this issue ?
(Please check in one of the boxes)
Very useful [ ] Useful [ ] Not particularly useful [
2.
3.
]
I would like more information on the following:
(Please check against relevant items)
1. specific insurance schemes suitable for the poor [ ]
2. case studies of mfis offering insurance [ ]
3. systems required for running an insurance programme [ ]
4. any other: ---------------------- ---------------------------------------------------------------------------------
Comments and suggestions:
Published by
FRIENDS OF WOMEN’S WORLD BANKING, INDIA
G-7, Sakar-I, Opp. Gandhigram Railway Station, Ahmedabad 38 009.
Phone: (079) 6584199, 6584082
TeleFax: (079) 6580119. E-mail: fwwb@wilnetonline.net.
Website: www.fwwb-india.org
•Ce7ebrati6n
ASSOCIATION OF ASIAN CONFEDERATION OF CREDIT UNIONS
Anniversary
1971-2001
“30 years commitment to credit
union development in Asia”
36/2 Moo 3 Soi Malee-Suanson.
Ramkhamhaeng Road. Bangkapi. Bangkok 10240. Thailand
P.O. Box 24-171. Bangkok 10240. Thailand
66-2-374-5101; 374-3170: Fax: 66-2-374-5321
e-mail: accuran@ksc.th.com http : Hwww.aaccu.net
Credit cooperative/union is people's organization credit cooperative/
union was organized by Raiffeisen/Schulze in 1864. They
were the first people’s organization in the world which
mobilize savings and provide credit to members. It serves
members based on cooperative values and principles trans
lated to business, such as self help for savings and mutual
help for credit.
Credit cooperatives/unions mobilize savings, By encouraging
savings, credit unions put more emphasis to local
savings of the community.
Saving is the first habit
credit cooperative/union teach.
It is the first lesson
in household economy and family budgeting. Credit
cooperatives/unions provide an institution and a sys
tem for small and daily savings. It has given savings
a new interpretation, i.e, savings is the first expense
from the income. Credit union capacity depends on
internal savings.
Credit cooperatives/unions are vertically and horizontally integrated, credit cooperative/union is inte
grated vertically and horizontally in the structure. Starting from members at the base, they
are incorporated in the national and the regional levels through secondary and apex body
of credit cooperative/union federation/league. The national federation/league represents
the CU interest and the Association of Asian Confederation of Credit Unions provides a
regional forum and development assistance to credit union development
ACCU repre
sents the Asian credit union voice and ideas to International Cooperative Alliance (ICA)
and to the World Council of Credit Unions (WOCCU).
Towards Development of People in Asia ■
..
/ c>7
Crsdit coopsratives/unions promota democracy, The credit cooperative/union is a primary school of democracy. Being a demo
cratic organization in itself, members learn democracy by
practice. They elect their leaders, debate proposals and
approve their budget and development plan. Credit union
is owned and managed by members.
Credit cooperatives/unions develop micro-entrepreneurs The goal of
credit cooperative/union is to improve the socioeconomic
status of the members in the community. Credit coopera
tive/union provides not only credit but also help members
to improve their skills and ability in business by providing
training on management and coordination of facilities on
skills development.
Number of
CUs
Individual
Members
Shares/Savings/
Deposits*
Outstanding
Loans*
Reserves*
Assets*
1.442
5.000.470
16.449 400.000
8.688.400.000
291.800,000
17.577.200.000
CULHK-Hong Kong
41
60.122
169,.217.165
110.074,106
12,473,814
206.806.887
PFCCO-Philippines
238
66,640
5.303,794
4.773.414
143.202
5.446,996
CULROC-Taiwan ROC
362
179.998
506.623.326
429.646.297
52.097,165
638.924.762
Member Organization
NACUFOK-Korea
5.161
8.797.653
3.653.329
665.517
8.778.091
CULT-Thailand
645
208.189
91.838.910
82.126.520
8,526,349
100,331.030
CUCO-lndonesia
1.105
252.226
14,793.080
16,779,695
2.035.589
23.218.783
37.900.000
34
JCU-Japan
FTCCS-Sri Lanka
8,424
905.106
42.509.377
36.659,513
2.835.210
CCULB-Bangladesh
386
91,518
8.358.450
7 529.309
1.016.522
9.374.973
KKP-Malaysia
450
35.000
9.736.842
5.157,894
447.368
10,789.473
8.295.045,556
FSCT-Thailand
637
1.689.140
6.399.169.015
6.671.576.449
327.755.325
NEFSCUN-Nepal
320
36.570
2.780.700
2.539.800
105.300
2.850.000
FESALOS-PNG
25
115.984
151.369.793
98,362,623
7.606.858
164.888.223
NATCCO-Philippines
Total
*ln USS
322
260.820
86.540.000
68,705.000
7.924.000
98.150.000
14.431
8.906.944
23.946.438.105
16.225.983.949
715.432.219
27.179.704.774
Reserves of FTCCS & JCU as of 1998
Source : ACCU member organizations
Credit unions are tools for personal, social, and national economic development.
Credit unions have helped many people to achieve financial security and improve the
quality of their lives. In the process towards development of people, they have also helped
communities and nations achieve sustainable economic development.
“A WMMlfflOT
T© VALW-MW
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Association of
Asian Confederation of Credit Unions
ACCU is a trade and development
organization
for
credit
unions/
cooperatives that represents 10 million
individual members from more than
15,000 primary' credit unions from 14
national organizations in 12 countries
in Asia ACCU exists for its members.
Its value-added services help members
achieve their own goals.
36/2 Moo 3. Soi Malee-Suanson.
Ramkhamhaeng Road. Bangkapi.
Bangkok 10240. Thailand
Phone: 66-2-374-5101. 374-3170
Fax: 66-2-374-5321
E-mail: accuran@ksc.th.com
http VAwA'/.aaccu net
..
W
n
/
1
of you...
POST CARD
PLEASE
PLACE
STAMP
HERE
’Credit unions exist because of members and for the members. Ils legendary
financial services has given opportunity to more than 10 million people in
Asia to grow and sustain.
What is a
Credit U nion ?
G
Credit union
community based financial institution which in
The credit union is a community based
culcates the habit of saving and provides credit
financial institution with representation from
commit to work together following the coop
based on trust and peers thereby doing away
every level to fully meet members need. Credit
erative principles and values for their socio
with complicated legal documentation and
union is known in different names such as
economic development activities involving
security.
credit cooperative, thrift and credit, savings
savings and credit.
Mobilizing resources
A credit union is a group of people who
A credit union can be organized in the
common bond where members reside, work,
cjj^eet. To be a member is the requirement
to get access to credit union services. Mem
bership is open to everyone regardless of re
ligion, economic status, ethnic and political
affiliations.
and loans, and caisse populaire. Credit unions
form a national or a regional level organiza
Among the many activities of a credit
tion according to the country law and the need
union, the first is to mobilize the people in the
for one. The Asian Confederation provides a
community to work together to facilitate hu
regional forum to share the credit union expe
man capital buildup to make them aware of
riences and to build a strong solidarity among
the socioeconomic problems with an eye to
credit union movements in the Asia region.
build entrepreneurial skills. The CU pools the
backbone in the community to make decisions
A credit union encourages members to
to use their own resources, with community
save and provides loaning service to mem
concern for economic development. The CU
bers. Its three fold mission: economic, social,
is a democratic organization managed by the
and political-entails promotion of democracy
people for the people.
membership. All you need is to check whether
Sectoral intervention
Purpose of credit union
or your workplace. Then meet the president
The credit union is a non-discriminatory
organization, regardless of race, sex, religion,
In 1864, Freiderich Raiffeisen introduced
and age. It provides development education
tt^community type of credit cooperative systW. Schulze-Delitzsch introduced the urban
for women to take leadership in credit unions
type of credit cooperatives/unions. Later, sec
vide exclusive services for women by provid
ondary level credit cooperatives/unions were
ing them special loans and savings schemes.
organized to provide support services at the
grassroots.
The credit cooperative was the
first member organization for the rural and
urban financing. It provides an organization
for the common people to work together on
the basis of self-help and mutual-help. It is a
Your membership to a credit union is
your passport to a global credit union family
there is a credit union in your own community
and securing of financial stability and social
values.
To be a member
and community work. Most credit unions pro
The credit union has developed very
special policies and strategies to reach the
bottom line members of the community.
It
gives an opportunity to reach out to the weaker
section of the community through micro en
terprise start-ups.
or the manager of credit union and apply to
become a member. If not you need to contact
national organization for credit union and re
ceive instruction to organize a credit union in
your community or workplace.
Asian Developments
The credit cooperative concept was
brought to India in 1904, and from there found
its way to Asian countries. There found its way
to Asian countries. Thereafter, credit coopera
tive societies were organized under the coop
erative law in Asia.
The First rural credit cooperative was
started in Thailand in 1916 following the
Raiffeisen principle. The modern credit coop
erative system was introduced in Taiwan early
in 1910. The first thrift and credit cooperative
was organized in Sri Lanka in 1909. In 1915,
the Philippine legislation enacted the rural
credit association law.
Birth of ACCU
The credit/cooperative union revitaliza
tion in Asia took place after the first credit union
was formed in Pusan in Korea in 1960. Also
in Korea the Association of Asian Confedera
tion of Credit Unions was formed on April 28,
1971 with five founding members.
By 2000, the Asian Confederation of
Credit Unions represented more than 15 na
tional movements with 9 million individual
members in 13 Countries in Asia.
ACCU
serves its members as a representative body
and provides services to strengthen the credit
union/cooperative as a financial institution.
ACCU is affiliated to the World Council
of Credit Unions (WOCCU-USA), the global
<g>
Association of
organization for the credit unions with affiliate
members in more than 87 countries. ACCU
Asian Confederation of Credit Unions
is also a member of the International Coop
P.O. Box 24-171, Bangkok 10240, Thailand
erative Alliance (ICA-Geneva) and the Inter
Tel. (66) 2-3745101,3743170
national Raiffeisen Union (IRU-Germany).
Fax. (66) 2-3745321
E-mail: accuran@ksc.th.com
http : //www.aaccu.net
PANEL DISCCUSSIONS ON WTO ISSUES
>s
1. Panel discussion on WTO
2. Inauguration by Mr. Vccrappa Moily
3. Presentation-
- an agriculture - by Gopal Nayak, Indian Institute of Business
Management
- on services - Dr.Roopa Chand, Indian Institute of Business
Management
- Intellectual property right and access to Medicines - by Dr.
Ramakrishna, National I.aw School of India.
4. Concluding remarks by Mr. Damodharan, Indian Institute of
Plantation Management.
Informationen
liber
... ivir lielfut, TMturerknuiktuv
&&&£
de&M-
Was ist Neurofibromatose (NF) ?
Die Neurofibromatose (NF) ist eine Erbkrankheit mit sehr
unterschiedlichen Krankheitsmanifestationen, von der
in Deutschland ca. 40.000 Menschen betroffen sind.
Hauptmerkmale der NF1 bzw. des Morbus Recklinghau
sen sind hellbraune Hautflecken (sogenannte Caf^aulait Flecken) und Neurofibrome. Bei Neurofibromei^^n-
delt es sich uni gutartige Geschwiilste bestimmter Nerven- und Bindegewebszellen. Sie konnen sich auf der
Haut und injedem Korperteil bilden. Man unterscheidet
heute vor allem zwei Formen der Neurofibromatose, die
unterschiedlichen Erkrankungen entsprechen:
Neurofibromatose Typ 1 wird verursacht durch Genveranderungen auf Chromosom 17 und weist mindestens zwei derfolgenden Merkmale auf:
° Neurofibrome (auch plexiform)
° Cafe au-lait Flecken (mindestens sechs)
° Skoliosen (Wirbelsaulenverkrummung)
° Optikusgliome (Tumoren am Sehnerv)
0 Irisknotchen (Pigmentanreicherungen auf der
Regenbogenhaut des Auges)
° Axillary freckling (Sommersprossenzeichnung)
Bisher kann weder fur NF1 noch NF2 eine verlaliliche
abzuhalten, auf denen Betroffene und deren Angehdrige
Vorhersage uber den Krankheitsverlauf gemacht wer-
personliche Erfahrungen austauschen und mit Speziali-
den. Es ist auch durchaus mbglich, dass Betroffene
sten diskutieren konnten. Bei alien Aktivitaten des Ver-
ohne ernsthafte Anzeichen der Erkrankung Kinder be-
eins steht nach wie vor die Forderung und Unterstutzung
kommen, die dann schwererkranken. Bei 50% der Be-
von Selbsthilfegruppen im Vordergrund, urn zur Erweite-
troffenen wird die Krankheit von einem Eiternteil vererbt (autosomal-dominant), bei den anderen 50% tritt
rung des Wissens uber diese Erkrankung und zur Wahrung der Interessen der Betroffenen beizutragen.
sie spontan auf (Spontanmutation). Die Verbreitung der
Krankheit scheint unabhanging von rassischen, geographischen oder geschlechtlichen Faktoren zu sein.
Ziele und Aufgaben
Beratungs - und Informationsangebot fur Betroffer^^
[^ie Gesellschaft
Die von RECKLINGHAUSEN GESELLSCHAFT E.V.
Wichtiges Informationsmedium ist unsere 3x jahrlich er-
wurde 1987 von Eltern betroffener Kinder, Betroffenen
scheinende Mitgliederzeitschrift »NF-Aktuell«, in der
und Arzten gegrundet und ist aus der Selbsthilfegrup-
Artikel und Diskussionsbeitrage zu neuesten Forschungs-
pe »Morbus Recklinghausen<< hervorgegangen. Sie
ergebnissen und Therapiemethoden veroffentlicht war
ist eine bundesweite Vereinigung von Selbsthilfegrup
den. Dort finden sich auch Erfahrungsberichte von Be
pen, deren Betroffene unter Neurofibromatose leiden.
troffenen und Angehdrigen. Desweiteren stehen verschie-
Ihren Namen tragt die Gesellschaft nach dem deutschen Arzt
dene Informationsbroschuren zur Verfugung, wie z.B. die
Daniel von Recklinghausen, der die Erkrankung im Jahre 1886 erstmalig beschrieben hat. DerVerein hatderzeit ca. 1200 Mitgheder und ist in mehr als 20 Regional-
Aufklarungsbroschure»Das Kind mit Neurofibromatose
Typ 1«, die Eltern bzw. Familien mit betroffenen Kin
dem bzw. Jugendlichen auf verstandliche Weise uber die
gruppen in ganz Deutschland organisiert. Der Sitz der
Krankheit informiert und ihnen helfen soil, mit dieser
Krankheit umzugehen. Selbstverstandlich vermitteln wir
Gesellschaft ist Hamburg.
den Betroffenen auch facharztliche und therapeutische
Beratung. Daruberhinaus werden taglich viele schriftliche
Ausloser fur die Vereinsgrundung war sei-
und telefonische Anfragen im Vereinsbiiro bearbeitet und
° Lem-, Leistungs- und Verhaltensstorunmn
° Knochenveranderungen
nerzeit die Unzufriedenheit vorallem der Eltern betrof-
Adressen vermittelt
*ier Kinder, die sowohl die medizinische Betreuung
Wrer Kinder als auch die fehiende gesellschaftliche Ak-
Verbesserung
Neurofibromatose Typ 2 wird verursacht durch
zeptanz dieser Krankheit bemangelten. Es standen so
gut wie keine Informationsqueilen und Beratungsstel-
psychosozialen Betreuung
Genveranderungen auf Chromosom 22 und
weist folgende Merkmale auf:
len zur Verfugung, von adaquaten Behandlungs-
Neben dem bisher einzigen interdisziplmargefuhrten Dia
konzepten ganz zu schweigen.
gnose- und Therapiezentrum in Hamburg unterstutzen wir
= Akustikusneurinome (Tumoren am Hornerv)
° (wenige) Cafe-au-lait Flecken
0 Hirntumoren und Tumoren der Wirbelsaule
° Linsentrubung (des Auges)
der
medizinischen
und
den Aufbau weiterer fachubergreifender Zentren in
So gehorte es zu den ersten und dring-
lichsten Aufgaben der von RECKLINGHAUSEN GE
SELLSCHAFT,
Informationsmaterial
uber
Neurofibromatose zu veroffentlichen und Informationsveranstaltungen
Deutschland, damit in naher Zukunft der akute
Behandlungsnotstand fur die Betroffenen beseitigt wer
den kann.
Forderung der sozialen Integration und Kontakt-
und in die Praxis umgesetzt werden konnen. Langer-
moglichkeiten unter den Betroffenen
fristig planen wir Fort- und Weiterbildungsmafinahmen
Wir unterstutzen nachhaltig die Bildung
von Regional- und Selbsthilfegruppen. Dabei haben wir
fur Fachkrafte aus dem Gesundheitswesen, damit
Behandlungsdefizite beseitigt werden konnen. Wir ha
unsere Aktivitaten auch verstarkt in die neuen Bundeslander gerichtet. Ziel ist es, ein moglichst flachendek-
eingerichtet, die in Hamburg behandelt und ggf. ope-
kendes Netz von Anlaufstellen aufzubauen.
Verbesserte Kommunikationsmoglichkeiten fur
ben Gastezimmer fur Eltern von erkrankten Kindern
riert werden mussen. Die aus ganz Deutschland kommenden Familien konnen so diese Belastungssituation
gemeinsam besser bewaltigen.
Blinde und Ertaubte
Wir sind bemuht, Betroffene mit neuen
Jbchnischen Hilfsmitteln auszustatten.wie z.B. Fax-
Auskiinfte uber Regionalgruppen in Ihrer Nahe
weitere Informationen liber NeurofibromatoseW-
gerate fur Ertaubte, um ihre Teilnahme am sozialen
Leben zu verbessern. Auch bieten wir Unterstutzung
halten Sie:
bei Horhilfen und dem Erlernen der Gebarden-
von RECKLINGHAUSEN GESELLSCHAFT E.V.
im Klinkum Nord
sprache an. Regelmafiig treffen sich die durch die Erkrankung ertaubten Betroffenen zu Erfahrungsaus-
tausch und Kommunikation.
Langenhorner Chaussee 560
22419 Hamburg
Telefon: 040 - 52 71 - 28 22
Unterstutzung von Wissenschaft und Forschung
Insbesondere unterstutzen wir molekular-
Telefax: 040 - 52 77 462
eMail: VRGes@aol.com
genetische Lahore, die intensiv auf dem Gebiet der
Neurofibromatose arbeiten, damit zum einen verlaftliche Tests entwickelt werden kbnnen, die prazise Dia-
von RECKLINGHAUSEN GESELLSCHAFT E.V.
gnosen zulassen, und zum anderen ein gentechnisch
orientiertes Therapieprogramm geschaffen werden
80797 Miinchen
Telefon: 089 - 18 69 90
kann, da nur dadurch eine Heilung dieser Erbkrankheit
Telefax: 089 - 18 97 06 34
moglich sein wird. Die genetische Beratung nimmt hier
eMail: siegrid.sommer@gmx.net
Schleiliheimerstr. 79
natii rlich einen bedeutenden Stellenwert ein. Auch ver-
oeben wir im Rahmen unserer Mbglichkeiten
^^rschungsstipendien, um weitere Erkenntnisse uber
Homepage http:Wwww.Neurofibromatose.de
die Neurofibromatose zu gewinnen. Regelmaliig finden Kongresse fur Arzte und Wissenschaftler sowie
Betroffene statt.
4L
Spendenkonto:
Postbank Miinchen
BLZ 700 100 80 Kto. 72 26 - 800
Griindung des Neurofibromatose-lnstitutes
Durch dieses sollen vielfaltige Aufgaben
wahrgenommen werden. Wir wollen Gastwissenschaftlern aus aller Welt ein Forum fur Symposien bieten, damit neue Forschungserkenntnisse zu-
sammengetragen
Diese Informationbroschure entstand mit freundlicher
Unterstutzung der FIPA GmbH, Freisinger Str. 32,
85737 Ismaning
£6^3.
SOCIETY
SWAPAN KAYAK
The Tellers Of Sonagachi
^Vomen in the world’s oldest profession get financial security with a bank of their own in Bengal
By ASHIS K. BISWAS
F bad news travels fast, good news cer
tainly doesn’t. In recent years, the
Durbar Mahila Samannay Committee
(dmsc) has brought about major
improvements in the lives of Bengal’s
sex workers. Yet, most people in the City
of Joy know little about its work and,
more importantly, couldn't care less. This
is painfuily brought home to visitors look
I
ing for the dmsc office in North Calcutta,
on the fringes of the red light district.
Routine queries generate polite but deri
sive counters from the locals ("What did
you say the address was? Oh, I see...an
office, you say [suppressed smirk]? No
doubt...people come here on official busi
ness only, you know...OK, now take the
first right turn and...").
Fortunately, the ambience in the Durbar
28
Family office off Chittaranjan Avenue is
less snide. One steps into a different world,
an oasis of understated efficiency against a
backdrop of chaos. There are any number
of sex workers here, ranging from the hard
ened ones to kids barely out of their teens.
The women confidently look you in the eye
as they answer your questions, a far cry
from the furtive whispered backstreet con
versations. Unknown to the mostly igno
rant locals, a quiet social revolution is hap
pening here. The key to the women's new
found resilience lies in organisational
power and financial independence. Which
is exactly what the dmsc has given them. It
has done something unique by South Asian
standards, set up the first-ever bank for sex
workers, run by the Usha Multipurpose Co
operative Society Limited (umscl).
The first efforts on this were made earl
ier but the bank could only be launched
0 U T L 0 0 K 1
March 4,2002
in 1995, as the state authorities withheld
permission on legal grounds. "They didn't
know how to react. Here was a bank that
had on its board 13 sex workers as direc
tors. Off the record, officials told us that
they did not recognise sex workers as a
distinct category, nor was there anything
in existing provisions to enable the inclu
sion of such a category. They suggested
that the women approach them as house
wives but we did not agree. Later, Forward
Bloc leader Saral Deb, then a minister in
the Left Front government, helped us.
The government made arrangements to
recognise this category. Finance minister
Ashim Dasgupta also helped out. The
bank now has 2,300 account holders and
Rs 55 lakh by way of capital,” says Dr
Mrinal Dutta, programme director,
Project Sonagachi, another dmsc initia
tive. With this one major step, the sex
ANITA PRATAP
El Rocky Mountain Sigh
T is disorienting to return to Delhi after having lived
the better part of the last three months in remote,
ach roads.
You had
tofinally
leave your
car
behind,
then
your
motorcycle
and
walk
several
kilometres
backward
villages
of eastern
India.
Those
were appro
villa
ges
without
electricity,
running
water
or even
to reach the hamlets, where life in the 21 century isn't any
different from what it was 2,000 years ago—women bathing
in the river, sunshine glinting on their smooth dark skin,
children frolicking in the village common, their high-pitc
hed laughter blending with animal sounds, cowherds squat
ting under shady trees, their gaze stretching into the hori
zon. Daily rituals unchanged by time. Nothing intrudes
here—not politics, not war, not internet. Reaching the near
est cybercafe is a tortuous eight-hour expedition that begins
with a trek and ends with a bucking bronco car-ride on a
bumpy road guaranteed to displace your spinal discs.
It's a world so different from the wide boulevards of
I
Delhi, a city where time never stands still. Here change esc
apes you in the blink of an eye. Eyes narrowed open, deniz
ens are constantly on the alert, lest they fail to notice the
latest fashion trend, the newest business opportunity, the
emerging power broker, the coolest titillation. Stomachs are
full, but there is hunger in the eyes,
for money, for power, for fame, for
gay
fun. Hunger to make it. Hunger for a
new piece of action.
scene
Nowhere is this hunger more visible
arrived.
than in the parties of Delhi's jet set.
"So what's happening in the Delhi
It's
and
party scene?" I ask my friend Kiran.
it's all over.
"Snow parties," she answers.
"Come on Kiran, it doesn't snow in
husbands
Delhi,” 1 reply.
run
with
Kiran looks at me pityingly. 1 hazard
a guess. “Are Delhi's rich and famous
now importing snow for their garden
husbands."
parties?" Maybe they create slaloms in
their sprawling farms and serve skis
with the barbecue. Ever since the government liberalised
the import regime, Delhi hostesses have been importing
Japanese orchids, Norwegian salmon, French wine and Bel
gian crystal just for their parties.
"No. They create little snow mountains on their black
marble coffee tables and snort,” says Kiran.
“What kind of fun is that, having snow up your nose?" I
ask, totally bewildered.
"It's not snow, its cocaine," she replies.
1 am stunned. Recovering my senses, I ask: "But didn't
all that stop with that big drug bust-up?" After being
caught from their snow mountains, the Afghan peddler
and his hotelier client are still cooling their heels in jail.
Many Delhi socialites, fashion designers and business
men ran for cover. How can there be snow mountains on
tabletops now?
"Oh it stopped for a while. Then the gang regrouped
under a new brand name. It's not cocaine bashes, it's
snow parties now," says Kiran.
Drugs, dropsy, hooch—scandals come and go, but these
"The
has
truly
open
Now
off
other women's
illicit businesses go on forever. When the scandal erupts, it
shocks. But then it recedes from the front-pages and TV scr
eens, it slips away from people's consciousness and from
the radar screens of enforcement officials. And then, it's
business as usual once again. The entrepreneurs of doom
are more careful, but they still scurry
jayachanoran
about. Till the next scandal breaks.
Fun has always been the best mercha
ndise in the marketplace but then, fun
does not always need middlemen. To
my question, what's new in Delhi,
party-fiend Arun says: "Swap parties."
“Oh, that's nothing new, I've been hea
ring of swap parties for a decade now
and not once have I seen that actually
happen." "You go to the wrong parties,
my dear," says Arun with affectionate
disdain. “Well, in any case there's noth
ing new about husbands running off
with other men's wives," I say scornfully. "Well, now husb
ands run off with other women's husbands," declaims
Arun, shaking with laughter as he watches my shock. "The
gay scene has truly arrived in Delhi. It’s open, it's frequent
and it's all over,” says Ritu. "The other day, a gay ambas
sador threw a party. It turned out to be a conclave of gays.
We, the few straight people, were hopelessly outnumbered."
AY diplomatic parties. They were fun before. Now
they’re puns. Just as "portfolio” no longer refers to
investments. They are series of glamorous photogra
phs taken, not by aspiring models, but by executives and
entrepreneurs. It is needed for placement in the media. Styl
ish pictures ensure more space in the glossies, a category in
which our all newspapers and magazines now fall into. No
wonder the latest fad is to fly in top international "hair des
igners" to train Delhiites how to style tress to reduce stress.
Presumably, half the battle in life is won if you look great.
Delhi, which is "India", wants to be America. And the
countryside, which is "Bharat", wants to be India. In mod
ern consumerist India, there's no place for spiritual ascenda
nce to attain moksha. Upward mobility is the mantra of
materialism and everybody's on the move. Delhi is speed
ing, cities are moving, villages are crawling. But in hamlets,
time still stands still. There are still no schools, dispensaries
or tubewells. Raising cows is still the main occupation. Wal
king still the only mode of transport. Malaria still kills. Peo
ple are still illiterate. Stinky rice beer still the only intoxic
ant. It’s a slice of 21st century reality in India that’s so unb
elievably far removed from snorting cocaine in rolled-up Rs
500 notes, from Punjabis learning Chinese hieroglyphics,
from colourfully-packaged Swiss throat lozenges, from the
twenty-odd varieties of luxury sedans, from middle-class
bazaars stocking Italian pasta and Thai candy, from muta
tion of professions whereby a bribe-handler is intellectualised and legitimised as a "consultant", from swinging
socialites who wake up at noon, by which time hamlet
women have already toiled for six hours.
Returning to Delhi is like returning to another planet. a
G
0 U T L 0 0 K ■
(The author can be contacted at post@anitapratap.com)
March 4,2002
27
workers were able to break the triple
whammy the moneylenders, the 'malkins' and local thugs and the police had
exerted on the hapless women for ages.
"Would you believe it, if a girl received Rs
100 by way of a loan from a local dada,
the going interest rate would be fixed at
Rs 2 a day, or Rs 750 a year—and yet the
principal was not deemed repaid. This is
the sort of exploitation they had to face,"
says social worker Tapash Sur. A recent
case was that of Minu, who had to spend
a fortnight in hospital for an operation.
There being no money at home, she bor
rowed Rs 100 from a lender who charged
Rs 1,500 annually as interest.
■ ■ O wonder that for twenty-something
girls like Mithu Das and Soma Sinha,
1 the bank has given the promise of a
new life. Both have accounts in nation^ised banks. Yet they prefer the umsc Bank.
Ojtv? "Interest rates in cooperative bank
deposits are marginally higher and repay
ment terms less stringent," says Soma, who
had taken loans for house repairs and other
personal requirements, which she repaid in
instalments. Mithu had taken a loan to
ensure her brother's education.
There are other subtler reasons why the
■
girls prefer to operate through the cooper
minister, for his crackdown on the mush
rooming fly-by-night chit funds.
ative bank than elsewhere. "To be an
account holder here, you have to be a sex
The society does not interfere otherwise,
worker, or a relative,” explains Mithu.
apart from ensuring the women's financial
security and driving home through cease
Obviously, they enjoy a measure of dignity
and acceptability here that
less campaigns the necess
they or their relatives would
ity of using condoms and
observing certain medical
not receive elsewhere.
“The officials
The bank has daily,
precautions. It has 66 bra
didn’t know
monthly and thrift fund
nches and a membership of
deposit facilities, all desig
around
50,000 women in
how to react.
ned to ensure a secure
Bengal. On occasion, it has
Here was a
even organised blood tests
future for account holders.
for the sex workers, by way
Dr Dutta says the society's
bank that had
of hiv surveillance schemes.
plans got a headstart thr
on its board 13
For their children, it has set
ough the initiatives of Dr
up a cultural wing—Komal
Smarajit Jana, who was
sex workers as
Gandhar. It also organises
associated with Project
directors.”
seminars and melas where
Sonagachi—targeting aids
foreign participants from
awareness and control
Asian and other countries
among the sex workers in
are
invited
to
speak.
Sonagachi, Calcutta's biggest red light dis
The society has done a lot to restore to
trict. The unceasing efforts of the society
these unfortunate souls a measure of hon
ensured that only under five per cent of
the 60,000 sex workers in Bengal were
our and dignity. However, it still has its
work cut out; reaching out to the more
found Hiv positive recently. "This is not a
unlucky call girls in the districts and,
bad performance. Just look at the other
above all, combating the blinkered preju
states..." says Dr Dutta.
dice that dominates society's perception
The bank staff also thank Dr Ashok
Mitra, the irascible former state finance
of these women. ■
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OUTLOOKS
March 4, 2002
29
St Antony's Cross
His burdens are many: a broke treasury, an obdurate trade union bloc, detractors within and
without his party.... Will popular support help the Kerala CM pull off his toughest act?
His cost-cutting measures may have invoked the wrath ofgovernment
employees. But Kerala chief minister A.K. Antony says he has no
option but to cut expenditure ring bring in reforms to save the state from
the financial nightmare it is currently trapped in. Excerpts from an
exclusive interview to Outlook;
Rs 2,200 crore. Now it is Rs 5,018 crore. Even money from central
schemes and borrowings from cooperatives were being diverted to
wages. 1 paid December's salary by drawing on the 1’Ian fund.- for
January and February. \nd January's salary 1 have paid because of a
special allocation by the prime minister.
What made cost-cutting the only option?
The public knows the difficulties. No one will support the strike, hi
the last three io four years because of the steep tail :n the prices of
agriproducts—rubber, coffee, arecanut. tea. ginc.- — rar tiers i, e .ire
on the verge of committing .-aicide. in rubber and tea esi.r.w
Is the public supporting your move?
When I took over as CM, I found Indian Airlines wouldn't give me
a ticket to Delhi as we owed them money. Everywhere 1 looked
there was debt. Unpaid bills were Rs 6,000 crore, in the last live
years the state debt had risen from Rs 10,000 crore to 25.600 crore.
The situation was alarming, in the last five years, administrative
expenditure has more than doubled—our salary bill in W95-96 was
30
OllTLOOSa March 4,2’. "
sly Hsidu!
rrom:
To:
Snantu Snarma <srianiu_snarma@hotmaii.com>
<nodice@qlcbalnet.co.uk>: <s.prasad@cgiar.orq>: <s kavula@yahoo.com>:
<anthr3@hd2.doi.net.in>: <sakshi_ap@saty3m.net. in>; <samb3vna@ssnchamet.in>:
<s2ndoepc^^2ci!or;2!d!r'd’s orn>- <s2nr‘^'/o,ri,bom3 vsrt! net. iri^;
^baiyesvaiieli@yaiiou.u<jii)^, '-beueiai i<si@phiiiuveiiit5in.oiy-', <synabia@sanuiiamei.iii<
<snssni(gjteheiKa.com>; <sneeiui @vsni.com>; <snivasunaar35@reaiffmaii.corn>;
<shu@bbc.ce.uk>: <sidur@tatanova.com>: <samata@satyam.net.in>: <smitashu@vsnl.com>:
<smitu@usa.net>: <sochara@vsnl.com>: <speql@rediffmail.com>
nor in>- <<?r*=‘sdhar2(@vcri! net>’ <srjniv2sk90@jyahoo.com >’,
''surinil «_jii_y«uiai iics@&ui feu.n-^, <&ur iai ida_vik@ycsi iuu.cur1i>, <sui r uridei @eu i.riei>,
<kavitna_kuruganti@yahoo.com>; <T.uKarams@uciink.berkeiey.edu>
Saturday. June 05. 2004 10:59 AM
New <3M0 Polic-v On Anvil + WTO-related News
In The Financial Express, India, June 3, 2004
GMO-Regulation Related 1 & 2. Swaminathan Panel Submits Its Final Report on GMO Regulations
WTO-Related 4. India To Gain From Textile. Quota Phaseout
i TCTVO ■
T„
WTO TolVe
v. rcitiliSciS SuuSiuicS To xjO vp vuc 1.0 xilCi CaSc iii \jiOOoi ri’iucS
MS Swaminathan Panel Favours Autonomous Regulator
nnpy/www.financiaiexpress.com/fe. full story.onpYcontent ici=0<J491
CPGK P WARM A
.NbW DELHI, JUNE 2: The Imai report of the MS Swaminathan Committee on
applications of biotechnology in agriculture has proposed setting up of an
3>.tnnnn)nijs Tsational RiotenhnnlnwR.egii!ator}r Authority (NBRA) with two
and industrial applications.
The powers of the existing regulator. Genetic Engineering Approval Committee
NBRA is set up. the panel has suggested that the monitoring and evaluation
committee (MEC) should report to GEAC on biosafety and environment safety
issues.
The promotci agency, Indian Council of Agi'icuituiai Research (ICruv uiiuei
6/ 7/04
liiOuiiivu \m.vjl; Ci’OpS uuuinui .~yh xnuid v-OOiuiiidLCu iwocaivil J. lUjuui.
Union agriculture minister Shared Pawar. who received the ccpv of the panel
repot? on Wedne^dav <wid "The secretai ies of different departments of both
wiii be able iv conic tv a ucunnc uouciu&iuii."
He however said that he is agreeable to any suggestion which would help in
^nsnyiTHr holler CTOp pjodljrbvily mh4 pw.v.l vHrnriiy.
The inidiiii icpuu of inc Swnimnaihan panel, inc details of which wcic
published m The financial Express on April 28, had drawn criticisms from
several experts like the former regulator for GM crops in US and currently
phipFnf'P»niooi‘-Tnr,<; tnrornpTjnnoi^ Sivramiah {Shanthu} Shantharam who had
Ci itiCiSvd tiiC iCGGmiiAviidaviGijtS aQi giViilg liiUiC ihiiu duv pGVv’viS vG vilC
promoter agency, ICAR, in mailers of testing of Givi crops.
Experts and NGOs had also raised doubts about functioning of the proposed
in inis context when questioned to which ministry of the government the NBKA
should be attached for financial support. Dr Swaminathan said "this has to
he decided by the government." Tn the interim report it was suggested that
•-/■■/v-'i intn.-y nt if K r»
r *•<»/-»«* I zl V\z* n-t-Tn nit nrt
r- •* Annrrn '
auiiuiuSuaiivC SuppOii iu iiiC uupdi uiiuii 0£ OiOtuCiiiiOiOgy , aiiOtiicf piOi’ilOiCi’
agency.
Th* executive summary which was circulated to medianersons said that the
iiui tlia.i ul ilicNGGs. The laiiiici and uunsumci uigaiu&duuns should nave
complete information on me oenerirs ano risks associated with GM crops, lhe
recoil called for a special government-sponsored insurance scheme for GM
<t<ws ajid seeds.
Seveiai experts have criticised tills move as siiiuing of the liability
from the producers of GM seeds to the government, farmers who pay premium
nnit insurance comnanics.
a liC iCpviiCd. .suggested iCStlng Ga Gava iGOdS Gil vuSiS Ga TAO-VvaIO guiuChilCS
and national food safety guidelines based on the recent report of the joint
parliamentary committee on sott drinks and fruit juices, it suggested Rs
1.200 crore additional funds in the next three years tor development of all
ocnApfc at rtfnroo’wnirtrrt' innh’dinrr catt’tia tin aF A’ataam nnrVc nnd
auLVxiOiiiOuS icguiduOFv duuivFiiy. a lie FcpGi i vdiiS ivi preserving Gi
agro-biodiversity zones and organic farimmg areas.
Final Report Of Swaminathan Panel On Tune 2
uupG/WW'W.uiiaiiCialcXpicSS.COffvfc full Story.php?COiitciit id—60344
.\SHOKBSH.m'R
OTTR ECONOMIC RTTRFATT
L-.12W izcx-xii, ivIAi 31. Tiic chaiiuuui 01 inc tdskxoivc uxi appiicdiioiis cf
biotechnology in agriculture Dr Mb -swaminathan will formally present the
panel’s final recommendations to the Union food and agriculture minister
gh;jr-J/1 Pmivmt An ItiriM 0
6/ 7/04
Tiie panel, wniCii was set up on May 14, 2003, initially proposed that the
panel would submit its recommendations within three months. But due to
several Dressing engagements of the chairman and members, the panel could
submit it< report within the slated period Asa result rhe tenure of
As the tenure of the panel was not extended beyond December 31,2003, the
oanel submitted its interim resort to the government in March. 2004 with an
WMITOpni Im luilmm* |}>m nTi-'i rwnrl
The iineiim icpori purposed selling up of an autonomous agiicuiiural
hiotecnnology regulatory authority, curtailing powers or the existing
regulator. genetic engineering approval committee and endowing more than one
XXVOXuiCil, iux VlUVli Utuv-Ulkmk. nmnJiiJ UliU sjCmu.11.1Hx.i11 Gx iJiGtCCni'lGlQSy,
special insurance scheme fui genetically mourned (Givi) crops, no revaluation
oi transgenes, which are declared biosafe and Codex norms for GM food. Most
recommendations of the interim report have been criticised by experts and
Swaminathan’s .Appointment Draws Flak
ASHOK m SHakMa
XFW DrT FT P INF ?■ The farmers' organisations have resented the annointment
Incidentally, tne opposition to Dr .'Swaminathan’s appointment has come from
the farmers' outfits of both the ruling Congress Part1.' and the Left parties.
mi Swaniinalhan had agiced io preside over llie fanners’ panel.
Bharat Knshak Samaj is the farmers’ outfit of the Congress Party.
The general secretary of the Left-dominated .All India Kisan Sabha, Atul
Apian said "we have long been demanding setting up of a national commission
rx»
»I’r» <n
r^tic rr» ..... U.JW**
tlpzx^-PA
--- WW JWf.. --------------- . cr«1/x1x'W WV.OO.-----------------------------------------.---- ....^
....J. A P
'v aj payee ill xuvi. As a. iCSuii tiiC uuuj vvaS SCi up, Out WaS ilut auequdteiy
represented ny farmers."
peasants diiu agnuuuuidl labuuicib. lie, huwevci, iidiiiiiied ihai Di
.swaminatiian nas mace significant conmnutions to tne farm sector.
6/ 7/04
nnn://www nnanciaiexnress enm/re mil story.pnpYcontenT id=602S3
A QKClk' P. WAR M A
1 ne domestic textile industry is of tne view mat phasing out of quota
restriction bv the end of the vear will be a boon as the country has an
b'^se. Indian exports will be
Cbciam international in its study, however, has run down this optimism of the
n.-icK-suomg ny ncfi countries inr
oomcsnc ministry ny
nrAT^ttnrt rh^-r plofhtnn
at
Taking all ^prehensions and optimisms tiie common minimum programme (CMP) of
the ruling United Progressive Alliance (UPA) government has said "the
textile industrv will be enabled to meet new challenges imposed by the
avuS. vjiVCii its Spcviai cvOiugiciu impurtaXivc WUHuivlue oiiu Wimul uic
country, the jute industry win receive fresh impetus in ail respects.”
Speaking to FF the secretary-general of Indian Cotton Mills' Federation
tm"
ei-xz-.rhe U\o?_ mav decline hut
liui piOliiS. </uf CXpOnS Win OCCuiiiC iiiui'C COiiipCtiuVC COiiipdiCu tO uiC
currently unrestricted suppliers, who already do nor have any quota, related
costs.”
c<ui uc luujicu iium the lavi nidi Iiiuiaii iiun-quuta CApuii> gicvv by 339.01 pci
cent tn tne penoo 1991-92 to 1999-2000 wnile me quota exports grew by only
239.57 per cent in the same period.
1991 out expoiis io that counuy iuse Hum Rs 38 ciotc in i99i to jxs 162
crore in 1992. it rose to Rs 247 crore in 1993 and Ks 396 crore in 1994.
Later when Sweden reimnosed quota, on Joining the European Union in 1995.
He said that growth in Indian exports to Sweden in the quota-free regime was
despite the supply by competitors like China.
abolished, our garment exports win register a quantum jump. Abolition of
quotas by December 2004 will remove one major impediment from the path of
our export growth. Rut there are many other impediments to be removed."
ITc Scuu uidi uiC CXti'Ciiiviy xiiiuicd idbiiC bdSC diiu pi'OuuCt iiiiX ilicit xiiuidil
exporters are using nave restricted most of rhe expons within about 30 per
cent of world trade that consists of casual and low-end fashion wear of
cotton India has a strono presence in the market slot consistino of shirts
diut wuuiu i<iAc us viuy Lu 3 pci vein 01 wuiiu iiauc wi licit we cuiicnuy
noid.
TriMr^psr.--* Tri.-iiuri pyiiArfprc
In crrMzb imi e
r*»rnj4irpn<r 70 Tier r.PTlI
6/ //04
Page 5 of8
And for this we need quality fabrics in iarge slots and with shade
consistency. which cur pcwerlocm sector cannot deliver, he said.
icguloi weal ami uuusuuuicu gai incuts like jackets and suits winch ale
higmy traaeo in western countries, out are raeiy exported from India on
account of fibre constraints.
friendly excise regime.
Comnsrarivcly the siudv conducted hv Dr Samar Verma and his team on behalf
of Ovram TtiTpmat-tonq! hoc;
onnrp’npnE’nn about rich COUnttieS
puutxiig up v-mvi uiuiiMM iG developing vOuiiuliCS CGiupCtltlOll, uiviudiilg
uiiaigiiig excessive i<uiw>. The study says tiiat quotas together with iiigh
tanli charges has already affected the developing countries to the tune of
‘s 40 billion a year ana ?7 million ioh.s
readying for a proiecuonisi bacidash to ciaw back, the power they wouid be
losing in even- oi phasing cut of Mb’A quotas. Oxfam also apprehends
reinrorcin? of r.nti-dumning measures and absue of the rules of origin
ihEK! Moots i-ive-Pronged Strategy To Break vv'i O laiks ueadiock
hnn /'wwvv fniancialexn.e^s eom/fe hill stoty phn^cnnTent id-609%6
ASIiOK B 02 iAixlviA
•xew Delhi, May 30
Tbp T’^-hns-e/l jr»tpTn9hnnui Fnad Pobcv pwearch Tr’sl’J.ijle (Jb’PRJ) has
—-jested 5-pronged otratczv to break the current stalemate on WTO
negotiations on agiicuiiuie.
TFPRT. which is one of the 15 future harvest centres of rhe Consultative
i^rnun nn intprnohnncl Aorrrulhiral TzAcooroln H''*('iVA»?\ »<; pl«;o nfrhpinpw
countries. The only way io make agiicuituiai trade work for the poor is io
set the multilateral trading system on its right track.
(juiaii ana Dr David suggested that immediate action snouid be taken in uve
distinct areas to make agricultural markets and trade work tor the poor. The
developed countries must reduce their fam-, subsidies and tariffs, developing
regulations should not pose an unaiie burden on developing country expons
and the wealthy nations must provide development assistance to peer
me xi-r’Ri piupuboi cmpnasiz-vs oil uuiuvauvc cuiiiuiiiauun vi uauc policy
reform ano ennanceo oeveiopmenr assistance to finance improved market
functioning in low-income countries. As per capita income rises and internal
rr>urL-A>f< h^rorrin iricreM<in<r1 v ^fGcienl^ m /vvirilrv vhmiM reduce »l*»
6/ //04
tor rhe ieast developed countries and snouid shrink with rising income and
improved market functioning.
The WT0 Secretariat hosted
3 da” aublie ammcrium which concluded in
sjeueva uji ivxay x7. iiicu’riuuucvki-gcliciai. xuauuui wu Diauu piesciiiiug
his views $aia, "market ana traae reforms nave great impact on tne food ana
nutrition security of.coor people in developing countries. Therefore, it is
;*niirui tbui Ih/-*
illiirui vwlnr hutip u IrarK-Tiarpn! nv^»ri
uTadiag 5}^.cm u*at bcncUts the poor. 'JnicrtunatOiV, agriculture xiQS *cng
UCvll UCdlCU dd dll CACcptlUll LU U1C 1 UlCd, dd a special case leu UUlbiac
tne traoe-UDerauzation process."
net accoided the hiatus of UN agencies. irriCi is aisu not accorded any
status by WI O.
Paswan Hints At Revamping Urea Distribution
~nnp'-''www linaneaiexprais com.Te riiii story, phpvconrenr in=n0z80
ASHOK R SHARMA
j ne government has estimated that fertiliser snosiay is iikeiy to go up by
at least Rs 1,000 crore due to heftv increases in global urices of imported
in<n.twnfc
tn I he rrittTtiilwflinn* nf nh<>snhn(>r nnrt nnlwsh fertilisers in
In tne previous year, tne total fertiliser suostoy was ks 11,790.55 crore,
including Rs 8.1.39.55 crore on tires, produced in the connin'. Rs I crore on
trr.n/n-rnn nres nn/t I? s A ASA nrnro r*n Cnlpt; nf* nemnirnllen ferrilisers Iflre
India imports phosphoric acid from Morocco, Jordan and South Africa. 1 he
suppliers in these countries Have formed a cartel raising the prices from
C7 >Ti r/-» Of Am n rrvnri** Thtc ’'Qff
ine poiash rock is noi available in India and is imported jjotii Central
America and Canada. The suppliers ci potash rock, too, have termed a cartel
jacking nn itx prices from SI 24 to $160 a tonne.
discussing This situation with top orriciais of rhe ministry and rhe
industry.
wdHdiib wc uu nut nuiiu icuom^ me suusiuy.
He said, "one thins is clear. We want to see the subsidy given passes down
to the fMrrnw« fhr whom il \ intended
rirewnl the mihsinv Mrnminl is
iviliuSCi’S tO Icuiiivio at ailOx'daviv latvS. v» C div i’vvivWiiig uiiS vXiStiiig
mechanism and are iikeiy to streamline rhe process mrrner in the interests
of fanners."
.'A.oiAkJrs. u orirxtxivjj-i
NEW DELHI MAY 30: The Congress-led United Progressive ;\lliance (UPA) at
the centre i<- i<een on «|r^Tnlirnnt; the riivlrihi ilinn svsfern of ijren Tf is
must ui wiuuh cue iucaicd in iiic eastern pail ui die counuy.
The Union minister for chemicals and fertilisers. Ram Vilas Paswan. said
thst he wnnln rpnnew rhe entire citiiarinn
«:ee thnt the snhrinie*:
UrA govciiuncHL iiab staled. Subsidies should be made explicit and provided
through the Budget... All subsidies will be targeted sharply at the poor and
the purely needy like small and marginal farmers, farm labour and the urban
At present the distribution of all chemical fertilisers are against
CTibtidies and distribution of the major fertiliser in use. urea is covered
^”Ocr -h'- Essort’ai '"*"''•^'•^''^^■*•<‘<1 a e»»
Uz^-t-u
subc,d,r
Sceakina to FE. Mr Paswan said, "the distribution of fertilisers ever the
coimtiy has nor been proper Fertiliser consumption in the eastern and
i<u ioinicxs <11 c uuin iius pili i ui uic vuunuy. u me
ecualiv to al! fanners spread across the countrv."
the- >iaic kuvciluuciiib aiiu me inuu&uy, uiic ueiuic uic kliaiu bedbUii dim me
other Detore the rant season. As per the approved plan tor the season, the
fertiliser companies arc renuired to despatch the earmarked amount to
in nifrprpnt «;ratpi; for distohufinn P.n, fhp mainr ftjHV in tnp law
goveinuiem ate allowed to sell 50 pel vein ci die leidliseis anywhere
outside the earmarked area.
<11 cliv vuiiivoL ix tliv xvi uuovi ouumu_> ij tu uv icugvivu. ixv
aiso said niai die supply plan ior ciiuereni states should be reaiistic
taking into account the needs of the farmers and attempts should be made to
reach the. needy farmers even in the remotest parts of the country.
system rhe dealers wno are licensed ro supply in rne eastern pan of rhe
countrv are selling urea to other'regions of the countrv and earning profit.
He also said that there was some problem in distribution in Bihar. He said
(IihI the ihwil’wl dealFrs in lhe stnle wfinr dislriblilirin urea in Ihn nasi
6/7/04
result, tnese oeaiers have gone siow in distribution of urea.
corporation (.tire; ano tne fertiliser corporation or tnoia «,rci). tnese units
are located in Haldia. Baruni. Dursaour, Sindhri. Talcher and Dursacur. He
uuicicin, uuunguiiu cuusiueianuu all iciaieo laciuis.
Mr Paswan also did not rule out the possibility of handing over these closed
ueaiuig wnu me loss-making public secioi units saying, wnne every euci i
will be made to modernise and restructure sick public sector companies and
revive sick industry, chronically loss-making companies will either be
.Mr Paswan, however, wants to use this mandate to the maximum extent for
reviving these units. He said. "One of the reasons for low fertiliser
consumption in
»c <5^2 to the ebsonoc s^y urea mnufaeturmg
iitui iii tiiC I’vgiOii.
“Urea is the main fertiliser in use bv fanners. The consumption of other
terfili^rc likv diamonium nhoenhate fDAP) muriate of nntesh (MoP) and
uica. 1HC1C «aic tiiuia iui iiianuidviui c ui jDnr ill v/tisacL, ucu inc wnauiiipuuii
oi dap can omy increase if urea consumption goes up."
Cumctvi ujiuo
urjy on
uiuunia rix.dLi in ip.// w w w. snaaui. cmwinucA. php 7 pim —imiiiaa
snaadi.com. Register now!
Page 1 of 4
CHC
From:
To:
"IndianSocietyFor SustainableAgriculture" <indiansocietyag@.yahoo.co.in>
<ncdice@globalnet.co.uk>: <s.prasad@cgiar.org>; <s_kavula@yahoo.com>;
<anthra@hd2.dot.net.in >; <sakshi_ap@satyam.net.in>; <sambavna@sancharnet.in>;
<sandeeoc@actionaidindia.org >: <sandhya@bom3.vsnl.net.in>;
<sandhyas@actionaidindia.org >; <Sara.Cottingham@vso.org.uk>: <Sarah. Hall@vso.org. uk>;
<satyavalleti@.yahoo.com>: <secretariat@.phmovement.org>; <sgkabra@sancharnet.in>:
Cc:
Sent:
Subject:
<shashi@tehelka.com>; <sheelu1@vsnl.com>; <shivasundar35@.rediffmail.com>:
<shu@bbc.co.uk>: <sidur@tatanova.com>; <samata@satyam.net.in>;
<smitashu@vsnl.com>: <smitu@.usa.net>: <sochara@vsnl.com>: <speql@rediffmai!.com>
<sputnik_k@hotmail.com>; <spwd_hyd@satyam.net.in>: <sreedhara@vsnl.net>:
<srinivask99@yahoo.com>: <stephane.parmentier@mdmoxfam.be >;
<gooarajusudha@yahoo.com>: <sumitra_m_gautama@surfeu.fi>;
<sunanda_vik@yahoo.com>: <surrender@.eth.net>: <kavitha_kuruganti@.yahoo.com>:
<tukarams@uclink.berkeley.edu>
Tuesday. September 28, 2004 4:21 PM
EU Farm Reforms & Global Trade
Here Are TWO News Items
1. Europe's Farm Reforms Not Aimed At Removing Trade Distortions
2. India’s Food Industry To Grow At 10%
FARM FRONT Column in Commodity Watch Page
EH Farm Reforms Will Not Remove Trade Distortions
http://www.financialcxprcss.com/fc full story.nhn?contcnt id=69815
ASHOK B SHARMA
Posted online: Monday. September 27, 2004 at 0000 hours 1ST
The European Union is slated to implement the reforms in its common agriculture policy (C AP)
in 2005. The well-worded CAP reforms seeks to protect the intercsITofthc rich farmers in Europe
and is in no way a move towards elimination of trade-distorting subsidies.
Tn addition the revised WTO framework draft designed by Oshima-Supachai combine on July 30
has given legitimacy to the subsidies given HyThc’dcvcIopcd^countrics: --------
The CAP reforms which was initiated in 2003 and slated for implementation in 2005 have
ensured that the level of subsidisation will not undergo change. It has legitimisedthe amount of
subsidy received by a farmer in 2000-02 as his “personal entitlement.”
This means that over the period of next ten years, European farmers arc entitled to receive- the
same amount of subsidy as long as he maintains his land or livestock. If he sells or rents out his
land, the subsidy will be transferred to the new owner or the tenant cultivator.
The revised Oshima-Supachai draft has permitted direct payments to farmers for undertaking
production limiting programmes and also for not producing. It has proposed capping of the Blue
Box subsidies to 5 p_cr_ccnl_o£a_country’s average total value of agricultural production during an
historical period. It is not clear what the historical period means: whether it should mean pre or post
Doha or any other period. It simply said that the historical period will be negotiated.
anci/M
Page 2 of 4
Decoupling of subsidies from production to single point farm payments helps El J in justifying its
scheme of shifting subsidies from Blue Roy to Green Box. Such a design will enable the F.U to
show that it is meeting the stipulated norm for Blue Box subsidies at 5 per cent of the average total
value of farm output.
The revised Oshima-Supachai framework draft further helps the developed countries by saying:
“Tn ease where a member has placed an exceptionally large percentage of its trade-distorting support
in the Blue Box, some flexibility will be provided on a basis to be agreed to ensure that such a
member is not called upon to make a wholly disproportionate cut.” The draft also compliments the
role of Blue Box ‘in promoting agricultural reforms.’
The C AP reforms seeks to hclp the rich farmers more than the poor farmers. Tn 1999, about_56
per ccnfyof FU’s farm support was in form of direct payments. Direct payments to small farmers.
who constitute 78.6 per cent of the European farm holdings, docs not exceed 5,000 euros a year.
Not more than 2.2 per cent of the 4.5 million farms receive 40 per cent of the total payments. Thus
a handful of rich farmers in Europe receive direct payments of more than 5,000 euros and woul3~~
continue to receive the same amount over the ricxt'TO years as "personal entitlement.”
The Duke of Westminster is an example how rich farmers benefit in Europe. He owns 55,000
hcctarFTarnTlandin UK, receives direct payment of 300,000 pound sterling and also gets 350,000
pound sterling a year for maintaining 1,200 cows.
Tn 1999-2000. European farmers who sought retirement at the age of 55 received huge
compensatory benefits totalling 793 euros. Translated in rupee terms this amount will work out to
Rs 4,362 crore, which is slightly lower than the total subsidy given to 650 million farmers in India.
The retirement benefit support for European farmers may be continued in the the days to come
'
The European Commission is under tremendous pressure from tax payers to justify the
continuance of such heavy subsidies.
Tt is for this reason the exercise in the name of reforms in CAP was undertaken to make certain
adjustments to hoodwink the taxpayers to believe that farming is multifunctional and has a role in
environment protection. Direct payments to farmers arc, however, not linked to environment
\ protection. There arc only a small set of rural development measures that calls for an support of 1.2
’ billion euros a year.
ET J’s support for environment programmes is on increase. Tn 1998-99, EU allotted 4,965 million
euro for various environmental programmes, which increased to 5,458 euros in the next year.
Subsides for environment programmes in Europe is the highest, followed by Japan, Switzerland
and USA and is seven times more than the total farm subsidies in India.
Tn fact the farm practices adopted in Europe have extensive use of chemical fertilisers and
pesticides, leading to ground water contamination and crosiorTof soiTfcrtilityTTJo wonder, EU is is
very keen in subsidising its environment protection programmes.
CAP reforms arc meant to hoodwink the European tax payers, and the the poor farmers of the
Third World. So also is the revised Oshima-Supachai draft which protects the interests of the
developed countries.
Ficci Pegs Food & Beverage Growth At 10%
http://www.financia1cxprcss.com/fc frill storv.php?contcnt id=69822
9/30/04
Page 3 of 4
ASHOK B SHARMA
Posted online: Monday. September 27, 2004 at 0000 hours 1ST
NEW DELHI. SEPT 26: A study conducted by the Federation of Indian Chambers of Commerce
and Industry (Ficci) has estimated a 10% growth in the food and beverage, sector in the current
fiscal year (till December 2004).
The study has shown positive growth trends both in volume and value terms.
It said that with the changing life styles of the consumers and rising disposal income of the
growing middle income group, branded food, health food and convenient food arc gaining
popularity and. the market for these items arc growing at 10 to 15%.
Scmi-proccsscd foods and ready-to-eat foods arc growing by 20%.
This observation of the Ficci study seems to be relating to the urban elite classes and not much to
the rural areas which constitute over 70% of the population.
That this observation relates to the urban elite class is clear from the study which says “the
unorganised, small players (in the food and beverage sector) account for more than 70% of the
industry output in volume terms and 50% in value terms.
It is to be noted, in context, that the country’s Planning Commission has made several studies
which suggest that food habits of the people arc changing from staple cereals to meat, poultry, fruits
and vegetables.
But the Planning Commissions studies failed to note that the rural poor in the country, unable to
purchase wheat and rice in adequate quantities, were traditionally consuming a mix of fruits and
vegetables, fish and poultry and dairy products and arc continuing to do so even today.
The change in food habits, therefore, as noted by the Planning Commission’s studies again relates
to the urban elite class.
The Ficci study noted that Indian food and beverage companies arc making a beeline for regional
overseas markets in Bangladesh, Pakistan, Nepal, West Asia and CIS countries owing to similar
lifestyles and consumption habits.
Some companies have achieved growth by lowering their price points to make their products
more affordable to a bigger consumer class.
The Ficci study further states that the sector is witnessing large-scale transformation, spending
huge on advertisements, awareness campaign and brand promotion
Key factors to success arc distribution (in rural marketing) and advertising (in urban markets)
innovation and launching of new brands.
Big companies have started sourcing their products from local manufacturers and contractors as
cost saving measures and to enter the mass consumer segment.
It further said that the market is seeing players like Heinz, Mars, Marico, ConAgra, Pepsi, TTC,
Dabur, Ritannia, Cadbury, HI J., Pillsbcry, Nestle, Amul, Smithklinc Beecham. Surya Food and
Agro Private Etd and a host of local manufacturers arc offering competition with their established
brands on a national scale.
9/30/04
Page 4 of 4
THE MINISTERIAL
CONFERENCE IN SINGAPORE
AND THE DEVELOPING
COUNTRIES
AN INTRODUCTION
MYRIAM VANDER STICHELE
WTO Booklet Series Volume 1
Transnational Institute, 8 November 1996
This
booklet
introduces
Trade
World
the
Organisation (WTO) to interested NGOs, citizens,
officials and politicians who were unable to
keep abreast of this Organisation. It contains
a selection of important issues for developing
countries during the Ministerial Conference in
Singapore from 9 to 13 December 1996. Readers
more familiar with the WTO will find information
on the Committee on Trade and Development and
the proposed WTO plan of action for the least
developed countries.
International trade and the WTO are not popular
issues.
The
however,
regulation
consumption
of
daily
affects
and
quality
the WTO,
trade by
life
many
in
economic and social policies,
ways:
employment,
choice,
distribution of
income and the widening gap between rich and
poor.
the
Although
Singapore
conference will not cover
Ministerial
these aspects,
the
event provides an opportunity to learn about
this new powerful organisation.
Ministers and officials claim that the WTO is
an instrument for globalisation and a means of
maximising opportunities
for growth,
jobs and
reducing marginalisation. This booklet takes a
critical view and wants to be a first step for
a wider
debate
people.
Although
on
how
many
trade
should
obstacles
benefit
remain
to
participation by citizens and NGOs in the WTO
decision-making process, it suggests issues for
consultation and action.
STABLE OF CONTENTS
Introduction: The first WTO ministerial meeting
Implementation of the WTO rules
Special attention for the least developed countries?
Agricultural trade and food security
Developing countries upset about the lack of market access
for textile and clothing
Citizens not welcome at the WTO
Will ‘new issues’ be incorporated in the WTO?
INTRODUCTION: THE FIRST WTO MINISTERIAL MEETING
In January 1995 the World Trade Organisation (WTO) became operational and
replaced the GATT (General Agreements on Tariffs and Trade). The main task
of the WTO is to implement the trade agreements negotiated in the Uruguay
Round (1986-1994). These agreements serve to open markets for agricultural
products, industrial products and services (e.g. consultancies, tourism) and to
protect the intellectual property rights (e.g. copyrights, designs) of traded goods.
By December 1996,126 countries apply these WTO rules and tariff regulations
(border tax). Many are developing nations. An additional 28 countries are injhe
process of joining the WTO. Since the WTO covers most economic sectors »,t(h
very strict regulations, the WTO has an important impact on societies and economic
growth in developing countries.
Although trade influences people’s consumption and daily practices and the
manner in which employment is created or lost, the issue is not popular. The
implementation of the trade agreements has gone unnoticed among the majority
of politicians, NGOs and citizens. Trade wars between the major trade powers
(the European Union, the United States and Japan) have been the driving forces
behind the media interest in the functioning of the WTO.
This booklet describes the WTO and the issues at stake for developing countries
and their populations when the Ministers of the WTO Member States meet in
December 1996.
0
Why the ministers are meeting in Singapore (9-13 December 1996)
The WTO constitution provides for a Ministerial Conference at least once every
two years to ensure that the trade ministers take responsibility for the organisation s
functioning and future direction. This Ministerial Conference is the highest authority
in the WTO. The Ministers take political decisions on difficult issues and determine
new areas of negotiation. The Ministerial Conference is the body with most control
over the WTO. The WTO operates outside the United Nations system (in violation
of the United Nations charter), where the General Assembly reviews the UN
agencies. Citizens of WTO member states hardly have access to the WTO.
In 1994 at the ministerial meeting in Marrakesh (Morocco), where the Uruguay
4
Round was signed, the Ministers agreed to hold the first Ministerial Conference
of the WTO in Singapore. During the preparations at the WTO headquarters in
Geneva (Switzerland), the meeting was scheduled from 9 to 13 December 1996.
The agenda and events at the Ministerial Conference
During the preparations, which began in 1995, serious disagreements arose
over the items that would figure on the Ministerial Conference’s agenda. The
main discussion was whether the Ministers would focus their energies on assessing
the implementation of the WTO regulations or whether they would also determine
new issues to be covered by the WTO in the coming years. By 8 November
1^6, most difficulties had been resolved through formal and informal WTO
mechanisms (see below).
The main items on the agenda are:
o
o
assess the implementation of the WTO agreements and decisions
decide on further liberalisation, particularly on reducing tariffs on information
technology
o
review ongoing negotiations
o
decide on future discussions, decisions and negotiations in the WTO
o
exchange views on trends in the world trade system
This booklet provides a critical explanation of the issues of importance to developing
countries and their citizens.
The Ministers will take few if any actual decisions in Singapore. They will adopt
tOePor,s °'
26 different WTO bodies that have monitored and discussed
the implementation and will plan future WTO activities. Each Minister will deliver
a speech at the plenary meeting presenting his or her views on the trade system.
The implementation problems that have arisen in specific sectors or countries
are unlikely to be subjects for open discussions among the Ministers. Developing
countries, however, might express their frustration that their WTO commitments
have yielded few benefits. At the end of the meeting, the Ministers will issue a
general statement about the different issues covered.
The meeting will also provide an opportunity for many informal and bilateral
contacts.
5
At the same time, non-governmental organisations will be able to observe the
plenary sessions and to organise parallel activities.
How the other WTO bodies function
The WTO bodies have drafted reports about the successful or unsuccessful
implementation of the WTO rules in preparation for the Singapore Conference.
Each country had to provide detailed written information ( notification ) about
legislative and practical modifications in accordance with the WTO regulations.
As the Ministerial Conference - the highest WTO authority - meets only once
every two years, the General Council is in charge of preparing the MinistQ,,'’
Conference. The General Council performs the functions of the WTO throughout
the year.
The General Council is responsible for guiding and taking high-level decisions
on the activities of:
1.
the Council for Trade in Goods,
2.
the Council for Trade in Services, and
3.
the Council for Trade Related Intellectual Property Rights (TRIPs)
These councils discuss the implementation of the Uruguay Round agreements
and any problems that might arise concerning their particular sector.
These three Councils have committees that address specific problems in greater
detail (e.g. the Textiles Monitoring Body) and that conduct negotiations on issu°s
not finalised
in
the
Uruguay
Round
(e.g.
the
negotiating
Group ui1
Telecommunications).
The General Council is also responsible for separate Committees:
•
the Committee on Trade and Development and its Sub-Committee for the
•
the Committee on Trade and Environment
•
the Committee on Regional Trade Agreements
•
the Committee on Balance of Payments Provisions
•
the Committee on Budget, Finance and Administration
Least Developed Countries
6
In addition, the General Council reviews:
°
the Dispute Settlement Body, which ensures the functioning of the judicial
system of the WTO for conflict resolution and breaches of rules in all the
WTO agreements. The dispute settlement process embodies a consultation
mechanism, a three-member dispute panel that renders verdicts imposing
sanctions across sectors, and an appellate body.
o
the Trade Policy Review Body, which discusses and publishes regular country
reports (the European Union is considered one country) about the respective
trade policies, application of WTO commitments and trade liberalisation.
1 Vhe staff of the WTO Secretariat supports the operations of the different WTO
bodies, for instance by preparing documents. The member states have deliberately
kept the Secretariat small and have granted this body executive power only.
The Director-General is head of staff, chairperson of different WTO bodies and
represents the WTO in outside affairs. In theory, he has no mandate to promote
issues without the consent of all members.
The meetings of the WTO bodies are open only to the diplomatic and other
representatives of all the member states, WTO Secretariat staff and staff from
some other intergovernmental organisations (e.g. the IMF, UNCTAD) with observer
status. Representatives of the member countries receive their mandates from
their ministries. Some of the poorest countries, however, have no representative
in Geneva or only a very small delegation and therefore have difficulty participating
in the complex WTO system. They have very little awareness of their obligations.
The decision-making process does not conform to democratic principles of
transparency, accountability and equity. Many discussions and decisions are
reached informally between the ambassadors of a few countries. Informal agreements
between the European Union and the United States, sometimes in consultation
with Japan and Canada (the Quad ) can be decisive if brought into the WTO
process.
IMPLEMENTATION OF THE WTO RULER
The main item on the agenda for the Singapore Ministerial Conference is the
review of the implementation and liberalisation as agreed in the Uruguay Round
and implemented under the WTO since January 1995.
The WTO obligations
The area to be reviewed comprises the wide range of obligations negotiated in
the Uruguay Round:
o
the agreement on trade in goods:
□
□
tariff cuts and liberalisation of industrial products;
liberalisation of textile and clothing imports in the industrialised countrie.V
over a 10-year period (dismantling the Multi-fibre Agreement - MFA);
□
reform of trade and domestic policies in agriculture (by allowing more
imports, and some reduction in government subsidies for export and
support to domestic farmers);
□
constraints on investment laws that restrict trade (Trade Related Investment
Measures - TRIMs);
□
rules on restricted use of subsidies, safeguard measures (which allow
a country to halt imports if an industry is in danger) and anti-dumping
(against sales below production cost).
•
the agreement on trade in services (GATS):
□
a series of obligations such as national treatment (foreign services must
□
information about laws on services (‘transparency’);
access to and application of the GATS obligations to foreign companieL-
receive the same treatment as national services) and easily accessible
in the service sectors described by a given country in a list;
□
application of special provisions and exceptions for financial services,
telecommunications, the movement of natural persons supplying services
and air transport services.
•
the agreement on trade-related intellectual property rights (TRIPs):
□
enforcement in all WTO member countries - during a specified period of copyrights, trademarks, industrial designs, patents, trade secrets etc.
registered in one of the member countries;
8
□
application of general WTO principles of national treatment and the most
favoured nation clause (MFN) to foreign intellectual property rights.
The enforcement of the above obligations is enacted through the dispute settlement
mechanism and the Trade Policy Review Mechanism.
The onerous and unequal implementation for developing countries
The Uruguay Round includes special provisions for the developing and especially
the least developed countries. This special and differential treatment is quite
limited in scope. It covers exceptions such as longer periods of non-application
i^efore adopting the WTO agreements and less stringent obligations than for'
industrialised countries. Although not all the information is available, the review
indicates a relatively low use of those provisions. Where they have been used,
their impact remains unclear. Moreover, the non-binding declarations in support
of developing countries have yet to be fully implemented (see below).
Notwithstanding the special and differential treatment, developing countries have
implemented impressive changes in economic policy. Some governments have
experienced restrictions on their national economic development policy instruments
as a result of the WTO obligations. For many developing countries, the implementation
of the WTO rules has been an enormous burden. Even reporting (notification)
on the nature and method of a country’s implementation was onerous, not in the
least for the understaffed delegations in Geneva. Implementation may prove
costly. UNCTAD calculated that Bangladesh will have to spend US$2 million a
year to operate the TRIPs agreement, excluding the preparatory costs.
©At the outcome of the Uruguay Round, developing countries already express,' 1
'a shared lack of satisfaction’ because their interests were not fully integrated
as the United States and the European Union had successfully done. Many
macro-economic calculations (such as those by the GATT/WTO Secretariat)
indicated a disproportionate distribution in the annual world gain of US$ 510
billion projected for the year 2005: 32 % will go the European Union, 24 % to
the United States, 5.2 % to Japan and only 22.7 % to all developing countries
and countries in transition.
In contrast to the Northern governments, which hailed the Uruguay Round agreements
9
as important instruments for economic growth, many non-governmental organisations
(NGOs) expressed concern that such unbalanced new trade rules providing for
rapid liberalisation would not benefit development, the environment or the poor.
In the course of implementing their WTO commitments, developing countries
have learned that the few rules they had hoped would benefit them - despite
sacrifices in other sectors - have yielded few gains. Examples include the textiles
and garments agreement, as well as others explained below.
What is at stake?
Some developing countries knew they would have gained few concrete benefif;
in return for their sacrifices. They found it more important to build a multilateral
system of trade, based on rules enforced in all countries. They hoped that such
a trade regime would get powerful trading nations to stop imposing their interests
as they had done in the past (e.g. dumping agricultural products). So far, equal
enforcement of the trade rules through the dispute settlement mechanism has
yielded mixed results.
The real impact for developing countries still needs to be fully assessed. Some
WTO regulations remain to be applied at future dates. Available figures do not
identify the operators affected by the gains and losses: are they companies,
workers, consumers or governments?
The Ministers at the Conference in Singapore will hardly deal with negative
impact of the implementation of the WTO. For the past two years, the North has
systematically focused on the opportunities created by the Uruguay Round, i)
The opportunities, mainly to the major trading powers, indicate the distribution
of the benefits:
•
In 1995 the United States share of the US$ 4890 billion of world exports
was 15.5 %, and the European Union share was 20 % (excluding internal
trade).
•
One third of international trade is conducted between affiliates within
the same Transnational corporation (TNG). One third of international
trade is conducted between TNCs. Liberalisation benefits TNCs by enabling
io
them to produce and sell in the countries most beneficial to them. Many
TNCs have been lobbying during the Uruguay Round negotiations.
°
The United States and the European Union have already attributed their
interest in trade liberalisation to their desire to increase export possibilities
and consequently employment.
The Ministers are likely to agree that the goal of the WTO is total free trade and
liability to the WTO rules in developing countries. An open trading system and
global integration is considered a means of maximising opportunities for growth
.s^jid employment and for reducing marginalisation. All countries and sectors
must become competitive on the world market. Michel Camdessus, Managing
Director of the IMF, concedes that ‘markets are merciless. They will not spare
anyone who fails to adapt’.
A neglected issue: The negative impact on people
The Ministerial Conference uses a highly technical method for assessing the
WTO. Ministers will exclusively examine the implementation of the WTO agreements
without considering their impact on people and on sustainable development.
The preamble to the WTO states that trade relations should be conducted ‘with
a view to raising standards of living, ensuring full employment’ and a 'steadily
growing volume of real income’ and increasing trade 'in accordance with the
objective of sustainable development'.
Oeports from some citizen groups in developing countries indicate failure to
meet these objectives in some cases.
In South Korea, farmers have discovered that the Uruguay Round obligation of
'minimum access requirement' to import food (1% in the first period, up to 4%
after 10 years) is already undermining their domestic production system. The
accelerated dependence on imported food is exacerbating the problems of
industrialisation for rural development and the environment.
In the Philippines, the WTO agreement to reduce agricultural tariffs has opened
up the country further to free entry of many agricultural products, including items
ii
traditionally produced by peasants and previously protected by law. The government’s
policy is to liberalise faster than agreed in the Uruguay Round. Recently, a tariff
bill was passed to remove quantitative restrictions on imports. Lobbying by the
US Embassy in Manilla and the Cargill grai corporation for the passage of the
bill with thinly veiled threats of trade sanctions shows where the benefits lie.
The bill has accelerated the rate at which producers are exposed to world market
competition. Philippine farmers now experience unfair competition from European
Union and especially from United States farmers who have retained indirect
subsidies under the Uruguay Round agreements. This practice has undermined
the prices of peasant producers. As subsidies were cut for Philippine farmers
during structural adjustment programmes, many farmer families have been unable-
to compete. This problem has resulted in dislocation, further concentration of
land, loss of income and a decline in living standards.
The pressure to increase exports and compete on the world market has led the
Ramos government of the Philippines to adopt an agricultural development plan
to reduce the planting of the basic staple food (rice and corn, which are in short
supply) to 65 % of the total hectares. The land freed is to be planted with ‘high
value export crops’. Small and poor farmers fear that reduced food production,
lack of access to food and the drop in farm income will further undermine food
security, in the 1995 rice crisis, they saw that rice imports (the basic staple
food) especially benefited the cartel of rice traders.
In Ghana, women have noticed that imports are so cheap that they are displacing
trade in the informal sector, which is often women’s only source of income. Gender
analysts question whether women, who are often at a disadvantage (e.g. less
training, less access to credit or land, exploitation as cheap labor), will be able
to compete in the new trading system and benefit from the opportunities or whether
they are doomed to continuing feminization of poverty.
Conclusions and call for action
The WTO Ministerial Conference and the General Council have to make concrete
commitments (e.g. via the Trade Policy Reviews) to assess the implementation
of the WTO obligations in the light of the objectives outlined in the preamble,
with a special focus on full employment and raising standards of living.
12
SPECIAL ATTENTION FOR THE LEAST DEVELOPED COUNTRIES?
Developing countries risk marginalisation
In the world market promoted by the WTO regulations, all products have to
compete with each other. Countries, companies and people need to be competitive
to participate and sell their agricultural, industrial or service products. Technology,
communications and information, capital and credit, foreign direct investment
(FDI), training and education, management, know-how (intellectual property rights),
cheap and skilled labour, large consumer markets, adequate support and government
infrastructure all contribute to competitiveness in open markets. Developing countries
ojten lack these skills and productive goods. This situation is even more true in
fin.-least developed countries (LLDCs), which depend on their cheap labour
and a few commodities or products that are marketed at very low rates.
The WTO rules favour the products from the more advanced economies. As
LLDCs have not achieved the same level of economic development, official awareness
is growing (e.g. at UNCTAD IX) that they run a special risk of being marginalised
and being unable to benefit from the WTO trade system.
What does the Trade and Development Committee do?
The WTO Trade and Development Committee (TDC) has discussed ways to
help developing countries on the road to integration in the world market and is
designing instruments to avoid marginalisation. The trade system and liberalisation
of the WTO has yet to be challenged by the needs of economically poor countries
and people. The European Union has consistently argued that the TDC should
rtQleal with development and trade but with development of trade (i.e. increasing
trade by developing countries). Northern governments have stressed the need
for capacity building and change in domestic policies to enable developing countries
to benefit from the opportunities created by the WTO. They have glossed over
the disadvantages. The developing countries have observed the role of trade
barriers for their products and processing.
Traditionally, the WTO Trade and Development Committee (TDC) has been
responsible for ensuring implementation of the ‘special and differential treatment’
for the developing and least developed countries in the WTO. In 1995-96, the
TDC has become more active and has expanded its scope to include:
13
•
reviewing the impact of the Uruguay Round on developing member countries,
especially understanding the WTO obligations and methods for reporting
the implementation to the WTO; the talks have not covered the impact
on people and the environment.
o
discussing why some developing countries had integrated into the multilateral
trading system more successfully than others and what conclusions could
lead to recommendations for Singapore; no consensus has been reached.
•
drafting guidelines for the technical assistance of the WTO to respond
better to the needs of each member.
A special Trust Fund for technical assistance by the WTO was created after
Norway had provided USS 2.5 million. The European Union contributed by financing
seminars about the WTO in LomA Convention countries in Africa, the Caribbean
and the Pacific.
The Trust Fund money also financed travel to the meeting of the TDC and its
Sub-Committee for the LLDCs because of insufficient participation by developing
countries and LLDCs (some have no mission in Geneva).
Intergovernmental organisations such as UNCTAD and the IMF made some
contributions during the discussions in their capacity as observers. Citizens
and NGOs could not participate, nor were they consulted.
Limited Plan of Action for the Least Developed Countries
In 1994 at the signature of the Uruguay Round, the Ministers adopted the ‘Ministerial
Decision on Measures in Favour of Least Developed Countries’ on a non-binding
basis. WTO members can choose from a broad range of measures favouring
LLDCs.
In 1995 the WTO Director-General promoted the initiation of a special programme
in collaboration with UNCTAD, ITC (International Trade Centre) and the World
Bank to increase and diversify trade by African nations. The programme is not
progressing smoothly.
14
At the G7 in Lyon (June, 1996), the Director-General proposed eliminating all
tariffs on exports by LLDCs. He received no positive response from the richest
countries, although the LLDC share in world trade was less than 0.4 %, totalling
not more than US$ 16 million.
After discussions by the TDC Sub-Committee on the Least Developed Countries
about the specific problems and risk of marginalisation facing LLDCs, special
measures were considered, particularly with respect to benefiting from the
opportunities provided by the Uruguay Round. While various LLDCs had advocated
an integrated approach to both their internal (e.g. infrastructure) and external
($,g. erosion of trade preferences, debt) problems, the North preferred to limit
’•no’support to measures within the scope of the WTO while encouraging cooperation
with other international agencies.
Several proposals for a 'Comprehensive and Integrated WTO Plan of Action’ for
the LLDCs have been considerably watered down during the preparations. The
Ministers are more likely to adopt the following measures related to:
The provisions in favour of LLDCs:
1.
•
measures for more effective implementation of the provisions;
o
assistance to LLDCs to meet their reporting obligations regarding
implementation of the WTO rules.
Human and institutional capacity-building:
2.
•
improve technical assistance by the WTO and in coordination with other
intergovernmental organisations;
-
•
promote export diversification to increase the capacity to benefit from
WTO market opportunities;
•
WTO members may voluntarily contribute to financing LLDC participation
at the TDC meeting.
3.
Options for improving market access for exports from developing countries,
by member countries individually after the Singapore Ministerial Conference:
•
•
grant preferential duty-free access for LLDC exports;
improve access under the WTO agreements, such as in textiles and
clothing.
15
4.
o
Other initiatives:
assist the accession process for LLDCs who want to join the WTO;
o
induce foreign investment to LLDCs as a result of the new trade opportunities
o
of the Uruguay Round;
make a permanent commitment to preferential duty-free access for LLDC
exports (‘binding’).
Conclusions and call for action
No firm action has been taken to avoid marginalisation of LLDCs in the
o
current trade regime. The measures of the proposed WTO Plan of Action
are neither comprehensive nor integrated. The options for impro\r ■*
market access after the Singapore Ministerial Conference will need io
be monitored for effective action.
•
If an agreement for permanent tariff cuts in information technology is
reached in Singapore, Ministers must have the political will to grant the
export products of LLDCs duty-free access.
•
Sustainable development must become the focus of the Trade and
Development Committee's activities and the objectives of trade. Channels
for receiving input from the citizens should be designed.
AGRICULTURAL TRADE AND FOOD SECURITY
Agricultural trade reform to continue
Before the Uruguay Round, agricultural production and trade were not subjM
to multilateral regulation. The consequences were high protectionism in the No. ui
and limited export possibilities for the South. Fierce competition for export markets
aided by huge amounts of export and domestic subsidies resulted in dumping
agricultural surplus in developing countries. Farmers in the importing countries
could no longer sell their farm products because their production costs exceeded
the price of imports. This situation undermined farming in many developing countries
where food production and agriculture remained major sources of employment,
and encouraged industrialisation and large-scale production in the North (job
losses).
16
The new rules of the agreement on agriculture under the WTO reduce export
subsidies (dumping) and domestic support to farmers and improve market access.
No real food security commitment was introduced. Since the. reduction measures
overlooked the indirect support measures by the United States and the European
Union, farmers in the South still face unfair competition because their governments
cannot afford such indirect support.
The Uruguay Round commitment by developing countries to import some food
(1% of local consumption in the first year, increasing to 4% after 10 years) has
already upset farming systems (see above on Korean farmers).
. I*5;
i Xtl tariffication obligation meant that different mechanisms of import control
and agricultural support had to be transformed into tariffs. This practice leads to
higher tariffs - thereby reducing import possibilities - on some agricultural products
from the North as well as from the South. The hope is that these tariffs will
gradually decrease under Uruguay Round obligations and through future negotiations.
New negotiations toward more market-oriented trade and production in agriculture
are scheduled to start in 1999. Several countries have already adopted negotiation
tactics. The Ministers will begin preparing the negotiations through analysis and
information exchange in 1997. Will food security and the interests of poor countries
and poor farmers receive more careful consideration than during the Uruguay
Round negotiations, where the United States and the European Union basically
negotiated alone?
Case studies of farmers turning to cash crops and buying of food have shown
famTig income, environmental erosion and raising import bills for the government.
The problem with the special measures for food security
The Food Summit (9-17 November 1996) of the UN Food and Agriculture Organisation
(FAO) focused on food security. Many farmers in developing countries and NGOs
doubt that the market-oriented agricultural system created by the WTO can guarantee
food security. In 1995-96 the consequences of the market vagaries became
apparent when food prices increased, and world stocks decreased to their lowest
levels in decades: food aid suffered, import bills rose and food imports dropped.
17
The FAO calculated that from mid 1995 to mid 1996 low-income food importing
countries had to spend US$ 3 billion (USS 1.4 billion for Africa alone) more on
cereal imports than the previous year (1994). The impact on the poor and hungry
are hardly mentioned. Nevertheless, the Food Summit has not challenged the
WTO regulations to deal with the aspect of food security and trade.
The Uruguay Round negotiators had accepted that food price increases on the
world market might result from the agreed reduction in dumping. The 'Marrakesh
Ministerial Decision concerning the possible negative effects of the agricultural
reform programme on least developed and net food-importing countries’ aimed
to ensure that the higher food bill and reduced stocks for importing countries
would not cause food shortages or diminished food aid. The main instrume.-o
agreed upon were:
•
commitment to continued food aid;
•
facilitated payment of commercial imports through financial loans from
the IMF and the World Bank under existing and new facilities contingent
upon agreed structural adjustment;
•
better financial terms for foodstuffs (e.g. credit, grants);
•
technical and financial assistance to improve agricultural productivity
•
differential treatment in any future agreement on agricultural export credits.
and infrastructure if requested by countries;
When food prices increased in 1995-96, the WTO member states were unable
to agree on the role of the new trade rules, since the weather was also involved,
and good harvests brought prices back down again from mid 1996 onwards.
The terms of the Marrakesh Decision did not provide for any special suppun.
The Ministers in Singapore will probably simply renew their commitment to the
instruments as decided in 1994 without defining indications for using the instruments.
Higher world prices and fewer cheap imports encourage local farmers to produce
and sell for the domestic market. This would encourage food self-sufficiency
from the world market. These farmers need support in the short term, however,
to restart or increase their production.
18
Conclusions and call for action
o
Food security, eradication of hunger and the interests of poor farmers in
developing countries must systematically figure at the heart of the
renegotiation of the agricultural agreement scheduled to start in 1999
(preparations to begin in 1997).
o
Northern countries have to implement their Marrakesh commitment for
the net-food in low-income developing countries and accept that the
market vagaries result directly and indirectly from the WTO rules. Measures
for increasing production in the South reauire special support
DEVELOPING COUNTRIES UPSETABOUT THE LACK OF MARKET ACCESS
FOR TEXTILES AND CLOTHING
How the Uruguay Round dealt with import restrictions
For decades the industrialised countries have limited imports of cheap textiles
and clothing through the Multi-fibre Agreement (MFA). Each importing country
and the European Union agreed with the exporting countries individually on the
amount (quotas) that could be imported per year under the MFA.
The agreements did not avert widespread job losses in the North, thus making
textiles a ‘sensitive product’ and raising strong protectionist measures. The textiles
and clothing industry is creating many jobs and increasing income in the South,
although the working conditions are often unacceptable.
•rrWhen the Uruguay Round agreed to eliminate the MFA, developing countries
considered its disappearance one of the few advantages they secured. The
benefits would not be direct, since the North would accept only a gradual phasing
out during a 10-year period with different stages of liberalisation. Even once all
textiles and clothing trade ceased to be subject to MFA restrictions, the import
tariffs in the North would remain high.
Anger over limited increase of market access
The first liberalisation phase lacked any meaningful impact for Southern exports.
The list of products to be phased out had been manipulated during the negotiations.
19
The developing countries felt that the spirit of the WTO deal had been betrayed.
They regarded the open declaration by the United States that any meaningful
liberalisation would come only at the end of the 10 year period as unacceptable.
In addition, developing countries have claimed that the increased use of complex
anti-dumping measures and safeguard clauses limits their exports further. This
unbalanced implementation is likely to be raised at the Ministerial Conference.
By the end of December 1996, however, the Northern countries have to indicate
the textiles and garment products they will liberalise in the next phase-out. Early
signs suggest that the European Union will continue to provide little increased
access.
On the other hand, some smaller producer countries of garments (such as
Bangladesh) fear that after 10 years and without quotas - which not only limit
trade but also guarantee access - they will be unable to compete with bigger
producers and will lose their market share and export earnings. No effective
solution is being discussed. Many jobs and incomes are at stake (especially for
women), despite the need for improved working conditions.
Moves to open up southern markets
The European Union is trying to limit the impact of the liberalisation in textiles
and clothing on European jobs by opening up markets to sell its textiles and
garment products in the South. It has negotiated a bilateral process of opening
markets for clothing in India, Pakistan and Indonesia. Amid the current preparations
for the next phase-out of the MFA under the WTO, the European Union is exploring
new market outlets in the South and linking these opportunities to better offers
for its phase-out, contrary to the spirit of the Uruguay Round.
Conclusions and call for action
•
The Northern countries have to fulfil meaningful implementation of the
next phases of the WTO Textiles and Clothing agreement.
•
If the liberalisation causes, in South and North, unemployment and job
creation involving labour exploitation, discussions must be held on the
effects of liberalisation for the entire Uruguay Round package.
20
CITIZENS NOT WELCOME AT THE WTO
All WTO regulations have been negotiated and implemented without input from
groups of the population and non-profit public interest groups. The preparations
of the Singapore Ministerial Conference included only a small consultation on
the trade and environment committee in September 1996. In Singapore, NGOs
will receive a conference room for their activities and access to the plenary
ministerial meetings.
Access to information restricted
."-Article V.2. of the WTO constitution on 'relations with other organisations' states
' that ‘The General Council may make appropriate arrangements for consultation
and cooperation with non-governmental organisations’. In July 1996, the General
Council adopted a decision on ‘Guidelines for arrangements on relations with
non-governmental organisations’ (NGOs). The procedures will be reviewed and
‘if necessary modified' by the General Council two years after their adoption.
These arrangements concern only access to documents and information. NGOs
cannot observe meetings. Overall, the decision is a far cry from the rights of
NGOs/citizens and UN practices. The agreed access to information is very restrictive.
For instance, all background notes by the Secretariat and minutes of meetings
by all WTO bodies (except of the Trade Policy Review Body and dispute panels
which will be derestricted), including summary records of sessions of the Ministerial
Conference, will be considered for derestriction six months after the date of
their circulation among the WTO members. Even the agendas of meetings are
(e?pot supposed to be disclosed beforehand. Once derestricted, the documents
■ will be available only on the Internet.
Little consultation
No formal channels are being established within the WTO for holding consultations
or circulating arguments and position papers between the representatives or
decision-makers and the general population. Only the WTO Secretariat has to
figure more actively in direct contacts with NGOs, for instance through small
symposia and informal exchange of papers. Although such means might be
useful for exchanging information, they are unlikely to achieve a major impact
on the decision-makers. For years, the Secretariat has claimed that its powers
are only executive.
21
Fear of added costs for environmental requirements (e.g. by eco-labelling) has
made developing countries very cautious on environmental issues. The South
has been little supported in its interest in effective means to stop imports of
hazardous products that are prohibited in the country of origin (domestically
prohibited goods), the links between environment and market access, and the
impact of the WTO patenting system (TRIPs) on bio-diversity. In contrast, the
non-governmental
regulatory
body
ISO
(International
Organisation
for
standardisation) is taking decisions in the interest of businesses in the industrialised
countries.
7%be or not to be ... on the WTO agenda after Singapore
The most serious issue of contention for the Ministerial Conference involves
deciding whether the WTO should discuss or negotiate issues other than the
ones currently integrated or foreseen in the WTO agreements. This involves
major implications.
Most developing countries believe that the Uruguay Round’s implementation
already requires major efforts without ensuring clear benefits. They object to
covering other trade-related aspects that they are unable to analyse.The EU
and the United States press that the Ministers consider other economic issues
for inclusion among the future responsibilities of the WTO.
The EU strongly advocates drafting multilateral rules to liberalise and protect
foreign investment in the framework of the WTO, arguing that clear rules would
enable all countries to attract investment. The United States is reluctant because
■®^h a process would weaken the upcoming agreement in the OECD. Many
developing countries fear a total loss of sovereign control over their economy.
The mostly hotly debated issue is the ‘social clause'. Proponents such as the
United States and Belgium, as well as some trade unions and NGOs, argue that
mechanisms (including trade sanctions) have to be incorporated in trade agreements
to safeguard exports from being produced in defiance of basic workers rights
as agreed in ILO conventions. Some developing countries and NGOs argue
against any linkage between trade and social standards, which they consider
protectionist or ineffective. The UN International Labour Organisation (ILO) is
likely to remain the primary forum for discussing trade liberalisation and social
issues.
93
Given that a market economy and free trade can function only in the absence of
monopolies, cartels or abuses derived from holding big market shares, 'competition
policy’ also figures on the WTO agenda. At present, no binding regulations prevent
monopolistic malpractice (such as price fixing) by large companies on the world
market or the acquisition of a large part of a developing country market by a
foreign company. Discussions on this issue will need to balance the issue of
national competition policy that affects trade, and malpractice internationally.
Other issues discussed during the Singapore preparations include compatibility
between regional trade agreements and the multilateral rules of the WTO and
the effort to curb corruption providing some traders with unfair advantages cwr
others.
This booklet has been issued by the Transnational Institute (TNI),
a decentralised fellowship of scholars, researchers and writers
from the Third World, Europe and the US committed to critical
and forward-looking analysis of sustainable development issues,
particularly in the areas of poverty, marginalisation and conflict.
It is part of TNI’s project on the impact and accountability of the
research World Trade Organisation.
Myriam Vander Stichele is Fellow of TNI and Coordinator of the
WTO project. She has been monitoring trade issues and the GATT/
WTO since 1990 and has supported political activists and social
movements through many publications and by giving talks throughout
the world. The views expressed are those of the author and do
not necessarily reflect views of TNI.
This booklet on the Ministerial Conference in Singapore and the
developing countries has been made possible through the financial
contribution of OXFAM UK/IRL.
24
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