Improving Institutional Capacity:

Strengthening Farmer Organizations in the OIC Member Countries

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We Effect

is a non-governmental and non-profit organization that supports self-help

development cooperatives, farmers’ associations and informal groups in developing

countries.

4.3. Examples of successful institutional frameworks

The enabling environment created by appropriate legal and institutional frameworks has

emerged, in the course of this study, as a key factor for FO success. This section explores pro-

FO legal and institutional frameworks at three levels: that of the FO itself, that of the country,

and that of the larger region. These frameworks can be considered general prerequisites for

strong farmer organizations, although local government and economic contexts of course need

to be considered.

First, core principles of good governance for an FO, based on principles espoused by the

International Cooperative Alliance, are put forth below. Then, at a national level, both the

principles

that enable strong, independent farmer organizations – by looking at legal principles

recommended by international FO-focused agencies – and the types of national-level

institutions

that can support FOs – by looking at examples of successful inclusion of FO-

strengthening efforts into national agricultural development plans – are examined. Finally, the

section ends with a study of pro-FO supranational institutional frameworks, in the form of

regional FO bodies.

4.3.1.

At an FO level: Respecting core legal principles for strong farmer

organizations

Before considering larger institutional frameworks, it is relevant to consider the institution of

the FO itself, and examine core principles of good governance. The current state of thinking is

that cooperatives, including farmer organizations, around the world function best when they

operate according to the core principles and values adopted by the International Cooperative

Alliance in 1995 and supported by sound legal frameworks. Of course, these principles are

general starting points and, as with any principle, may need to be adapted to local context and

traditions. These principles include

Voluntary and open membership

. The cooperative should be completely voluntary

and open to all people who work within agriculture. Every member should accept the

responsibilities of membership without gender, social, racial, political, or religious

discrimination.

Democratic member control.

The cooperative should be a democratic organization,

controlled by its members’ (i.e. those who buy the goods or use the services of the

cooperative) participation in decision-making.

Members’ economic participation.

Members should contribute equally to, and

democratically control, the capital of the cooperative. Members benefit in proportion

to the business they conduct, not the capital they invest.

Autonomy and independence.

Cooperatives should be autonomous, self-help

organizations that are controlled by their members. If the cooperative enters into

agreements with other organizations or raises capital from external sources, it does so

National Cooperative Business Association, CLUSA International