Cooperative & Association Development

The countries in which we work exhibit a wide range of social and political systems, stages of economic evolution and cultural legacies. Yet in each, the need for collective action in order to address shared problems is evident, particularly in rural and resource-poor areas.

By organizing cooperatives and associations, farmers and entrepreneurs can mobilize capital, pool knowledge, achieve economies of scale and foster vertical integration. They can create greater leverage in the marketplace and policy arena, attract business service providers and more efficiently link to urban and export markets. Such disciplined groups not only catalyze local economic growth, they may serve as a vehicle for more equitable community planning, deter urban migration or undertake health initiatives. They develop human capital, encouraging the participation of women and youth. And they foster democracy and entrepreneurship.

Whether working with informal self-help groups and loose associations, legally registered cooperatives, community-based enterprises and private limited companies, ACDI/VOCA does not promote one standard model for ease of program management. Our approach is to build on existing structures and to promote diversity and choice. ACDI/VOCA’s diagnostic tools assess the capacity and seriousness of existing organizations to serve the interests of their members in an effective, accountable and transparent manner. Along with participatory subsector analysis, institutional mapping, competitiveness analysis, these tools engage stakeholders in devising plans that address organizational weaknesses and constraints.

To ensure accountability, service orientation and profitability, members must monitor the progress of their group. ACDI/VOCA has developed participatory methods and procedures to allow group members to assess management, participation, organization, planning, economic performance, technical operations, financial operations and growth. In addition, ACDI/VOCA uses a range of instruments–including memoranda of understanding, protocols, contracts and franchise agreements–to protect members from abuses of power and to discourage irresponsible groups from bringing the organizations into disrepute.

ACDI/VOCA subscribes to a market-driven approach. Member-owned groups should increase their members’ incomes, either directly, for example through bulk input purchases and collective marketing, or indirectly, such as through policy and advocacy initiatives. Members are motivated to participate in group activities because of profits they obtain as a result.

Organized groups allow small-business owners and farmers to compete in the marketplace. ACDI/VOCA strengthens the capacity of such groups to expand their trading options by scaling up production and applying quality-control standards. To this end, groups are assisted in accessing essential technical services, linking to higher-value markets, forming business alliances and advocating for a favorable regulatory environment.

ACDI/VOCA’s goal is a more vibrant, competitive and diverse market environment. We facilitate the delivery of technical assistance but do not subsidize commercial transactions.

The potential for large-scale impact embodied in cooperatives justifies the long-term commitment of resources required to build effective, independent and financially sustainable member organizations. As organizations mature, they generally expand their operations–diversifying products and services, branching into new geographic areas and addressing social concerns such as illiteracy, gender inequity or HIV/AIDS. Cooperatives and associations play a significant role in nurturing the next generation of community leaders, and, with their extensive member networks, they are ideal vehicles for transferring knowledge and challenging social perceptions.

In democratically run, member-owned organizations, smallholder farmers and small-scale business owners learn participatory decision making and develop ways to resolve conflict. They are emboldened to demand accountability of their elected leaders, present their views in public, claim ownership of the local political process, and on a daily basis they demonstrate the values of transparency and accountability.