Cooperative Societies in Vanuatu — clear overview and classroom activities

A clear, student-friendly rewrite of how cooperative societies work in Vanuatu: history, structure, the role of the Vanuatu National Cooperative Federation and the Cooperative Service, the five Commercial Centres, and a set of classroom activities.

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Cooperative Societies in Vanuatu — rewritten summary

Cooperative societies in Vanuatu divide their earnings according to the different activities the cooperative runs. Members who take part in a particular activity receive a share of the earnings from that activity; this share is called a dividend.

Alongside many village-level cooperatives, Vanuatu has a national body called the Vanuatu National Cooperative Federation (VNCF). In the past the VNCF used to buy goods in bulk at wholesale prices and supply them directly to village cooperatives. Since 1986 the VNCF stopped doing that directly and instead works together with private wholesale firms to supply goods.

A significant result of the cooperative movement was the formation of the Cooperative Savings Bank. This institution encouraged villagers to save but did not provide loans. In 1991 the Cooperative Savings Bank was converted into the National Bank of Vanuatu, which is now wholly government-owned and managed.

The Government’s Cooperative Service supports cooperatives across Vanuatu. It employs 34 staff and, from 1988 onward, has also helped to develop small rural businesses whether they are cooperatives or not. Development officers run training courses for cooperative secretaries and small business owners, covering organisation and basic business management. The Service provides advice on management, accounting and legal matters. It also has three women advisors who focus on supporting women entrepreneurs and women-led businesses.

To strengthen village cooperatives, the Cooperative Service set up regional associations that operate five Commercial Centres. These are located at:

  • Lenakel (Tanna)
  • Craig Cove (Ambrym)
  • Lolowai (Ambae)
  • Ringdove (Epi)
  • Litzlitz (Malekula)

Each Commercial Centre typically includes:

  • a wholesale section that sells goods in bulk to village cooperatives,
  • docks for handling copra, cocoa and shells,
  • a branch of the National Bank of Vanuatu, and
  • a retail store.

Activities (classroom tasks)

  1. Definition task: What is a consumer cooperative? Name two consumer cooperative societies in Vanuatu and say which villages they are based in.
  2. Rules task: List the six basic rules for running a cooperative society. Explain why these rules are sometimes called the "Rochdale Rules."
  3. Data-visualisation task: Create a bar chart that shows how many village cooperatives there are in each Local Government region of Vanuatu.
  4. Sequencing and flowchart task: The following seven statements describe how a consumer cooperative operates. They are out of order. Arrange them into the correct sequence and then present that sequence as a flowchart.
    • The secretary or manager operates the store.
    • People buy shares and become members.
    • Some profits are reinvested in the store; the remaining profits are distributed equally among members.
    • The committee appoints a secretary or manager.
    • The store makes a profit.
    • The annual general meeting of shareholders, the committee, and the cooperative inspector is held, where decisions are made on how to use the profits.
    • A committee is elected from among the members of the society.
  5. Calculation task: Using the 1997 accounts for the cooperative society on Malekula (shown in your Social Science book under Sales), calculate how much dividend each member would receive. (Use the figures given in the book to perform this calculation.)

If you want, I can now:

  • Answer any of the activity questions for you,
  • Put the sequencing task into the correct order and draw the flowchart, or
  • Help calculate the dividend from the 1997 accounts if you type or paste the account figures here.

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