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Re: POV-RED: COG working group listserv: poverty reduction



I am Mark Levin of the International Labour Office's Cooperative Branch, based in Geneva, Switzerland. Thank you Ravi for kicking off the discussion, which I think could be very interesting and important. 
 
In a presentation to the October COG Conference in Washington DC, I spoke about how the whole ownership issue is unfortunately not very high up the international development agenda. I would hope that this group could strategise about how this might be changed. My presentation is called "Globalization, Decent Work and Ownership: The ILO Perspective" and can be found at http://www.capitalownership.org/lib/LevinConferencePaperGlobalization.htm
 
I think that, in general, the role of cooperatives in poverty reduction is fairly well-known, although often ignored by those development agencies with biases against approaches based on mutual solidarity. These biases are often based on poor experiences from the era of state interference in cooperatives and need to be countered by current cooperative success stories, of which there are many. The ILO will be publishing fairly soon a working paper analysing the potential of cooperatives for poverty reduction, which calls for a realistic assessment of what genuine member-controlled, democratically-managed cooperatives can and cannot do. As you may be aware, the ILO has a fairly substantial programme of support to cooperative development but, like others engaged in this field, we face an uphill struggle to obtain funds for our activities. 
 
I am concerned, howver, that there has not been much articulation of how non-cooperative broadened ownership forms such as ESOPs might play a role in poverty reduction in developing countries. Neither Ravi Naidoo nor Juan Guillermo Espinosa's papers to the COG DC Conference were very optimistic on this score. The current structure of employment and ownership in developing countries was identified as a major constraint to the development of ESOPs. Does this mean that ESOPs are (and will remain) a "rich country phenomenon"? Are there good examples to contradict this view?
 
Anyway, these are some of my concerns. I look forward to the discussion.
 
With best regards for a happy, healthy and peaceful 2003.
 
Mark Levin