Credit unions in Canada and around the world are playing a leading role in providing desperately needed micro-loans and other financing to people in developing countries as wealthy corporations and multi-national companies stay in the shadows, says former United Nations special envoy Stephen Lewis.
Lewis, who spoke recently in Calgary at the World Council of Credit Unions (WOCCU) annual conference, said a handful of international conglomerates have made genuine efforts to help impoverished citizens in the countries in which they operate. But it is grassroots-driven businesses such as co-operatives and other member-owned and operated business models that are making the biggest inroads against poverty and disfranchisement, he said in an interview.
"The behaviour of some corporations in terms of corporate social responsibility is pretty lacking," said Lewis, whose non-profit Stephen Lewis Foundation has funded about 150 projects in 14 countries - most of them related to his fight against the socio-economic devastation caused by the AIDS and HIV epidemic in sub-Saharan Africa.
About $25 million has been raised through donations from the Canadian public, though only a small part from corporate support, said the former special envoy for HIV/AIDS in Africa.
 |
| Larry MacDougal, Business Edge |
| Former UN special envoy Stephen Lewis explains the global impact of credit unions at the 2007 World Credit Union Conference. |
A keynote speaker at the three-day conference of 2,000 credit-union representatives, Lewis called it "bewildering" that many Fortune 500 companies asked to commit US$1 million a year to the Global Fund to Fight Aids, Tuberculosis and Malaria in Africa snubbed the initiative until Irish rock star and U2 frontman Bono launched his "Product Red" campaign to raise money for AIDS relief.
Many of those same companies, which include electronics manufacturers, clothing designers and athletic-wear creators, jumped at the chance to market red-coloured products and channel a fraction of their sales to the initiative - reaping their own profit in the meantime, he said. "But every penny counts, I guess."
The former Ontario NDP leader and Canadian ambassador to the UN praised the efforts of WOCCU and its 46,377-member credit unions in 97 countries as having "tremendous impact" on economic and social development internationally.
The organization's members travel to developing countries to help establish locally owned credit unions - which, in turn, provide small loans and other banking services to individuals such as entrepreneurs - but also provide management and other training in Canada and abroad for foreign staff. They also are working to establish good governance practices and establish enlightened public policy, he said.
Lewis and delegates watched a live video feed from the Afghan capital of Kabul, where WOCCU representatives have been working with locals to establish a half-dozen credit unions in the war-torn country since 2004. These fledgling financial agencies, operating under the always-present threat of kidnappings, bombings and other strife, have created an atmosphere of hope for financially destitute and war-weary citizens, he noted.
"The entire credit union movement is making a contribution essentially that is second to none and is not sufficiently appreciated internationally. In that lies ... a spectacle of hope. You can change this world for the better," said Lewis, who received a standing ovation after his speech.
Lewis also praised WOCCU for securing US$8.7 million in funding from the philanthropic Bill and Melinda Gates Foundation, established by the Microsoft founder and his wife, to further its development work. He said the organization has achieved the near-impossible. "I don't know how you did it. I can't even get them to return my phone calls."
Lewis described one copper-mining project in AIDS-wracked Zambia in which three or four people would be trained for a job in the hopes one would still be alive by the time work began. Corporations such as mining giants DeBeers and Anglo-American have begun offering AIDS and HIV testing, anti-viral treatments and other health care, he said, to keep their workforce as healthy as possibly, curb spread of the disease and ultimately reduce their own costs.
In Canada, credit unions participate in projects such as a women's mentoring program run by the Canadian Co-operative Association, a national umbrella group that works to unite credit unions and co-ops in reducing global poverty and promoting sustainable growth. The program, launched in 2002, brings more than a dozen female credit-union employees each year from developing nations to Canada for a three-week immersion program that includes leadership, marketing, governance, human resources and other issues.
Laurie Tennian, the association's international development program officer, says the program includes a 10-day work placement in Canadian credit-union offices to give participants hands-on experience in the business, including shadowing local branch managers to see how they operate.
The initiative, which attracts about 50 applications a year, provides concrete lessons that the work interns can take back to their home countries, Tennian added.
More than 100 women have taken part, from countries including Ghana and Uganda. "Change is not going to happen overnight, but it's a good start. There's some very good ... stories out there," she added.
Michael Atkinson, director of investment solutions for Van City Credit Union in Vancouver, said credit unions are uniquely positioned to provide needed financial and human-resource solutions in Third World countries because they are owned or operated by members and have a substantial stake in their communities.
"I think this is where there's an opportunity to continue to be innovative and to ... build stronger communities," he said. "Things like micro-financing are examples where credit unions are positioned like no one else to make change."
Atkinson is chair of a young leaders' committee formed through the Credit Union Central of Canada, a national coalition of member credit unions. The committee is working to attract and expand the profile of a new generation of future leaders through a variety of initiatives that include exploring the business and operating principles of credit unions to ensure they remain relevant.
Those principles include open and voluntary membership, democratic controls, return of surplus to members and a commitment to social responsibility.
The committee, formed last year, draws its membership from youth leaders around the world who are honoured each year during the WOCCU conference for leadership and innovative thinking, Atkinson added. "We have so much knowledge we can tap into. Our vision is to become the No.-1 employer for young leaders in the financial services industry."
Web watch:
www.stephenlewisfoundation.org
(Susan Mate can be reached at sue@businessedge.ca)
