Cooperative Societies in Vanuatu

The money distributed by a cooperative society is divided according to the number of activities within the cooperative. Each member involved in an activity receives a portion called a dividend.

In addition to village cooperatives, Vanuatu has the Vanuatu National Cooperative Federation (VNCF). Previously, the VNCF imported goods at wholesale prices and distributed them to village cooperatives. However, since 1986, it no longer does this directly and instead coordinates with private wholesale companies.

Another important development from the cooperative movement in Vanuatu is the creation of the Cooperative Savings Bank. This bank encouraged villagers to save money but did not provide loans. In 1991, it was transformed into the National Bank of Vanuatu, which is fully owned and managed by the government.

The Cooperative Service of the Vanuatu Government plays a vital role in supporting cooperatives. It employs 34 people and, since 1988, has also assisted in developing small rural businesses, whether or not they are cooperatives. Development officers provide training courses for cooperative secretaries and business owners, teaching them how to better organize and manage their operations. They also offer advice on management, accounting, and legal matters. Three women advisors specifically support women who start or participate in businesses.

The Service has established regional associations of village cooperatives that operate five Commercial Centres located in Lenakel (Tanna), Craig Cove (Ambrym), Lolowai (Ambae), Ringdove (Epi), and Litzlitz (Malekula).

Each Commercial Centre includes:

• A wholesale section that sells large quantities of products to village cooperatives
• Docks for copra, cocoa, and shells
• A branch of the National Bank of Vanuatu
• A retail store

Activities

1. What is a "consumer cooperative"? Name two consumer cooperative societies in Vanuatu and the villages where they are located.

2. List the six basic rules for running a cooperative society. Why are these rules sometimes called the "Rochdale Rules"?

3. Create a bar chart showing the number of village cooperatives in each Local Government region of Vanuatu.

4. Below are seven steps describing how a consumer cooperative operates in Vanuatu. They are currently in the wrong order:

   • 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.

   Your task is to arrange these steps in the correct order and then present them as a flowchart.

5. Referring to the 1997 accounts of the cooperative society on Malekula (shown on your Social science book the Sales), calculate the dividend amount each member would receive.