Credit Union model THE CITY of Kingston Co-operative Credit Union (COK), the largest in the Caribbean, has been chosen by the ILO as an international model. A number of Jamaican institutions in the past have been identified as successful models for replication in other parts of the world. Often the success of these organisations is not sufficiently recognised at home a case of the prophet being without honour in his own country. The Co-operative Branch of the ILO is to collaborate with COK in developing a case study of the credit union's best practices as a model for financial co-operatives all over the world. This, according to COK's general manager, Senator Aloun N'dombet Assamba "is the highest compliment that such a prestigious organisation as the ILO can pay to the credit union". Since their founding in Germany in the middle of the 19th century, credit unions have spread around the world as co-operatives of savers which provide low-interest loans to their members. In a relatively low savings rate environment, savings in the local credit union movement grew by 140 per cent in the four-year period, 1996-2000. This rate of growth leads all other areas of savings and is on par with other English-speaking Caribbean territories. COK has led the way in this growth and has now earned deserving international recognition. It is evident that savers have faith in the credit union movement as being able to meet their credit needs. The lower interest rates and the sense of ownership are powerful positives. But as ILO (Caribbean) official Chris Imoisili has pointed out at the three-day meeting of Caribbean Registrars of Co-operatives held last week in Kingston, these co-operatives must be run like efficient businesses while retaining the spirit of friendship and partnership. This is not always the case, and several institutions have faced serious difficulties in keeping afloat. With holdings of over $11 billion, the credit union movement represents a substantial pool of funds. Since charity begins at home, COK could begin its role as international model by sharing elements of its best practices with fellow members of CUNA, the umbrella organisation of credit unions. The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner.
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