PNG looks to co-ops

By VERONICA MANUK
REPRESENTATIVES from the economic sector are meeting in Kokopo this week to identify ways to develop the co-operative society movement in the country.
The week-long conference is for provincial commerce advisers, who will discuss with Government representatives ways to cooperate and interconnect to develop and expand the work of cooperative societies.
The cooperative societies movement, which started in 1947, has been described by some critics as “outdated and colonialistic”, but the Government believes they are the vehicle through which people in the rural areas can meaningfully participate in the development of the national economy.
The theme for the week-long conference is “Cooperatives – a vehicle for people empowerment and rural development”.
Representatives from key Government departments and agencies dealing with commerce, trade, tourism, import and export, treasury, finance and planning are attending the conference.
Delivering the keynote address yesterday, Commerce and Industry Minister Gabriel Kapris said developing cooperative societies was in line with the theme of the speech delivered by Prime Minister Sir Michael Somare titled “Consolidation and Empowerment” during the opening of the 8th Parliament.
He said people in the rural areas must be given the required assistance to actively and meaningfully participate in economic activities to improve their life.
He said cooperatives societies were introduced in 1947, but due to the rapid change in the business and economic environment at both the domestic and international level, they began to die down until they were reactivated in 2000 by the government.
Mr Kapris said the cooperative business model suited PNG given the structural constraints facing the economy, especially if the rural majority is to participate in growing the economy.
The constraints include 85% of people living in rural areas; 97% of total land mass customarily owned; fragmented domestic market; lack of skilled manpower; high unemployment rate; law and order problems; and poor socio-economic indicators.
Mr Kapris said since the reactivation of cooperative societies in 2000, there were now 386 registered cooperatives, and growing.
He described cooperatives as the most appropriate vehicle to implement the Small Medium Enterprise Policy, and is an effective channel to deliver service to the rural people.
In welcoming participants to the conference, Commerce and Industry Department Secretary Anton Kulit said he believed developing the cooperative businesses would help the Government achieve its aim of growing the economy by 5% soon.