[The updated report : An Economic Impact Analysis of the Co-operative Sector in Saskatchewan: Update 1998. Saskatoon, SK: Centre for the Study of Co-operatives, 2001. Is now available in pdf format. ]
Lou Hammond-Ketilson was lead
researcher and coordinator for this research report prepared
for Saskatchewan Department of Economic and Co-operative
Development. Many Centre staff along with researcher Roy
Dobson devoted an enormous amount of time and energy to this
major study, which was released in June 1998. As part of the
Centre's ongoing commitment to generate background material
for policy development to a wide range of organizations, the
report provides critical information for decision makers in
government as well as in co-operative and community groups.
Executive Summary
Introduction
Throughout the twentieth century, co-operatives have played an integral role in the social and economic development of Saskatchewan. Initial forms of co-operation have evolved into an extensive network of co-operatives involved in a wide range of activities: agriculture and resources, community development, recreation, child care and education, wholesale and retail, financial, community service, and other types of co-operation.
The impact of co-operatives on communities is substantial, especially in the smaller centres, where they ensure competitive prices and supply a wide range of services. Co-operatives also play an important role at the provincial and sectoral level. In 1996, 1,560 co-operatives generated revenues of $6.9 billion, held assets of $9.19 billion, and produced a surplus of $245.6 million. Capital investment by the co-operative sector totalled $124 million. Co-operatives employed 14,400 people and paid wages of $424 million. The table following provides a summary, by sector, of the economic impact of co-operatives in Saskatchewan.
Conclusions and Recommendations
1. Co-operatives Promote Local Pride and Social Integration, Local Control and Local Reinvestment
Co-operatives add an important organizational diversity to the mix of enterprises in the province. Their presence promotes stability and allows Saskatchewan residents to respond innovatively to many kinds of opportunities and needs. Co-operatives have a long track record in the province and appear to be engaged in organizational renewal that will allow them to continue to make crucial contributions to sustainable economic development well into the next millennium.
The co-operative model should be promoted as a financially viable institutional form for providing goods and services to a group or a community, especially when this provision requires knowledge of the local economy and/or is sensitive to profitability.
Statistical profiles of co-operative contributions to the economy are critical for promoting and developing the sector.
Government should continue to work with the co-operative sector to collect financial information from all provincial co-operatives for storage in an electronic database.
2. Co-operatives Behave Differently
Co-operatives behave differently from other institutions in terms of pricing, commitment to community rather than individual interests, ability to provide certain kinds of goods and services, and ability to keep a greater portion of the value generated within the local economy in the community. This is especially true in smaller and more geographically isolated communities.
The co-operative model needs to be promoted for use as a community development strategy. Co-operative leaders should continue to undertake educational activities to demonstrate the effectiveness of the co-operative approach.
3. Co-operatives Stabilize and Contribute to Growth in Communities
Co-operatives allow people to see the repercussions of their individual actions on the community. Collective ownership of a business gives co-operative members the opportunity to observe the effect of by-passing their local market, and an opportunity to benefit from a deliberate choice to patronize the local establishment.
Co-operatives have generally had a stabilizing effect in the regional economy, contributing to a positive environment that promotes long-term individual, community, private-, and public-sector investment. Their stabilizing role is particularly evident in more vulnerable localities and among less-advantaged participants. There is a strong commitment to rural Saskatchewan, where co-operatives provide credit, services, and attractive terms even to small-volume or more risky customers or clients.
Globalization presents risks, challenges, and options for Saskatchewan communities. Co-operatives provide opportunities to participate in global exchange without sacrificing local control. In addition, there is growing worldwide interest in co-operative organizations as vehicles for economic and social development. The vibrant co-operative sector in Saskatchewan opens opportunities for international exchanges, trade, and collaboration.
Co-operatives must be encouraged to continue with community development initiatives by supporting member and leader education and training programs. These programs should provide co-operatives and communities with a better understanding of what community development involves, and what co-ops and other organizations can do to facilitate it.
Support must be provided for the start up of new co-operative enterprises and the development of new co-operative forms. Co-operatives work best in a context where there is a multiplicity of co-operative firms, operating in multiple sectors, and where people attend to the preservation of co-operative identity and co-operative principles.
The role of co-operatives in sustainable development needs to be documented, and expertise should be developed in their potential as vehicles for sustainable development.
Co-operatives as organizations that facilitate global linkage, exchange, and co-operation must be recognized and developed.
Finally, national and international linkages for trade, mutual assistance, and personnel exchange should be further developed; and partnerships with international agencies and co-operative organizations for mutual learning need to be fostered.
4. Co-operatives Stabilize and Contribute to Growth in Regional Economies
Significant changes are occurring in the spatial organization of co-operative activities. Given their strong roots in local places, co-operatives have compelling reasons to participate in and promote new arrangements for providing quality services in communities of various sizes—including smaller or more remote rural centres.
Co-operatives are well integrated into the province's economy, and into communities at many levels. Their links to other co-operatives and other organizations or agencies provide information and resources to support and enrich what is available locally.
Co-operatives have important roles strengthening linkages within and among communities and sectors. Co-operatives continue to be important sites of social innovation, and key partners for multi-sectoral collaboration.
Develop partnerships among co-operatives, communities, and agencies to achieve regional development objectives. Augment mutually advantageous rural-urban linkages through co-operatives. Increase involvement in REDAs to ensure that the co-operative model is considered when new services are developed. Evaluate alternatives for the reorganization and relocation of co-operatives in the context of collaborative, strategic, regional planning.
Institute a regional co-operative development council and/or a co-operative development foundation to support new community and co-operative initiatives; federal, provincial and regional agencies to partner with co-operatives and help fund rural co-operative development.
Recognize the co-operative advantage in promoting partnerships and collaboration; document co-operative support for community and voluntary organizations.
5. Co-operatives Have a Strong Impact on Both the Current Leadership in Rural Communities and the Development of New Leaders
Collaborative models, both formal and informal, are increasingly being used to strengthen co-ops by leveraging limited resources, and to provide services in vulnerable communities. To be successful in collaborative ventures, leaders require the ability to develop relationships with diverse stakeholders. Co-operatives can build on their strengths in this area by welcoming greater diversity into their leadership ranks. Through the support of education and training initiatives, co-operatives can increase their involvement in building the capacity of their members and employees to take on leadership roles in the community.
Expand the knowledge of various collaborative models in use through research and sharing of best practices. Such knowledge has to be linked to leadership training programs, where collaborative skills are emphasized.
Support further educational experience in co-operation and community economic development for interested personnel. Promote exchanges, visits, networking, and collaborative projects.
Build employee loyalty and demonstrate broader concern for human development by showing leadership in the implementation of progressive labour relations. Co-operatives should strive to be seen as highly desirable places to work given the whole package of conditions, benefits, and opportunities that they can provide.
6. Diversity Is Important
There is an ongoing need to find ways to make co-operative board and staff positions accessible and attractive to under-represented groups, including women, young people, new immigrants, and aboriginal persons. Some co-operatives can boast important advances in this regard, providing examples and inspiration for co-operatives and other organizations that have made slower progress on these agendas.
Co-operatives should emulate effective practices: develop appropriate services and capacities; pursue equity goals in employment, appoint aboriginal liaison committees, and seek partnerships with aboriginal bands, councils, and development authorities.
Consider methods adopted by co-operatives elsewhere such as Gender Sensitivity Training (GST); a focus on Gender and Development (GAD) issues; and mentoring of female managers, staff, and directors. Continue to support the "Women and Co-operatives Forum" on a regional basis.
To order this study, please contact:
Saskatchewan Economic and Co-operative Development
Government of Saskatchewan
1919 Saskatchewan Drive
Regina, SK
S4P 3V7
CANADAPhone: (306) 787-0741
Fax: (306) 787-3872