2007 Global 300 - OECD2007 Global 300 Garry Cronan FINANCING LOCAL DEVELOPMENT: UNDERSTANDING THE ROLE OF MUTUAL CREDIT AND CO-OPERATIVE BANKS Conference, Paris 23 November 2007 International

International Co-operative Alliance 1

2007 Global 300 Garry Cronan

FINANCING LOCAL DEVELOPMENT: UNDERSTANDING THE ROLE OF MUTUAL CREDIT AND CO-OPERATIVE BANKS

Conference, Paris 23 November 2007



Outline of presentation

• Why the Global 300?• 2007 list• CSR, Developing 300 and National lists!• Major issues


Why the need for such a list? • Demonstrate co-ops work in a business sense in the marketplace

– particularly in some sectors of the market. Just because they are large does not mean that they can’t still be co-ops or mutuals!

– Showing co-op values work and don’t limit business performance – commercial success and solidarity – important to instil confidence among co-operatives themselves that this way of operating works!

• Question of visibility– Among co-operatives and mutuals themselves!– With media, particularly the business media – international and national– With business generally– To government and policy makers generally, internationally, regionally, nationally

and within industry sectors– To academic and research institutions– To business advisers, accounting/legal etc– To the broader community

• Question of being able to prove your case– Something of a “statistics crisis”– Need to give profile to the statistics issue– Move from rhetoric to evidence based


Global 300…….

• Concept launched at General Assembly in October 2005

• First Global 300 ranking released at Forum for a Responsible Globalisation in Lyon, France in October 2006

• Second annual ranking launched at ICA General Assembly in Singapore in October 2007

• Surprised many by demonstrating the unexpectedly large size of the biggest co-operative and mutual businesses in the world


2007 global financial methodology

• Based on turnover, although other criteria possible

• Refinement of sectoral criteria • Highest level of audited aggregation used• USD used for ranking, although for % change of

revenue • Structure as at end of FY 2005 used


The 2008 list…

• Revenue almost 1 trillion USD• Compared to last year (11% real growth ignoring

currency fluctuations) • Largely confirms total in first ranking• Need a variety of ways of showcasing co-

operative performance and achievements


(G10)The 10 Biggest Economies in the World

9831,124 1,106

1,7191,910

2,1132,197

4,672

2,800

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

USA Japan Germany UK France China Italy Spain Canada Global300

12,452


South America0.4%

Asia - Pacific21%

Europe62%

North America17%

Global 300 by Region


Insurance23% Consumer

26%

Food & Agri 30%

Banks16%

All Others5%

Global 300 by Sector


G300 - % Of Turnover By Country

15% 15%

13%

6%

4% 4% 4%3% 3% 3% 2% 2%

2% 2%1% 1% 1% 1% 0.5%0.4%0.3%0.2%0.2%0.2%0.1%0.1%

18%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%Fr

ance

Japa

n

US

A

Ger

man

y

Net

herla

nds

Italy

UK

Sw

itzer

land

Kor

ea

Finl

and

Sw

eden

Spa

in

Can

ada

Den

mar

k

New

Zea

land

Nor

way

Bel

gium

Aus

tria

Irela

nd

Indi

a

Bra

zil

Chi

na

Aus

tralia

Sin

gapo

re

Taiw

an, C

hina

Isra

el

Por

tuga

l


G300 - Number of Coops By Country

67

55

32

2319

141498877653333322211111

0

10

20

30

40

50

60

70

80

USA

Fran

ce

Ger

man

y

Italy

Net

herl

ands

Japa

nUK

Finl

and

Cana

da

Switz

erla

nd

Swed

en

Spai

n

New

Zea

land

Nor

way

Irela

nd

Belg

ium

Denm

ark

Indi

a

Braz

il

Aust

ralia

Kore

a

Sing

apor

e

Isra

el

Aust

ria

Chin

a

Portu

gal

Taiw

an, C

hina


% Of Turnover : GDP14%

14%

10% 10%

8%

7% 7%6%

5% 5%

4%3% 2% 2% 2% 2% 2% 2% 2%

1% 1%

3%3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

New Ze

aland

Finlan

dSwitz

erlan

dNeth

erland

sFr

ance

Sweden

Denmar

kIndia

Taiw

an, C

hina

German

yKor

eaNor

wayJa

panIre

land

Italy

Belgium

Spain

Canad

aAustr

iaSinga

pore UK

USAIsr

ael


Banking Sector By Country

39.8%

17.6%

9.4% 8.5%5.6% 5.4% 5.3%

3.5% 1.8% 1. 0 %0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

France

Korea

Netherl

ands

Japan

Canad

a

USAGer

many

Austri

a

UK

Finland

16% of G300


Banks Top20# Name Country Turnover % Assets Rating Inc Tax (ROE)1 Crédit Agricole Group France 30,722 19.07% 1,385,635 AA- 2,918 15,8%2 National Agricultural Cooperative Federation Korea 24,687 15.32% 199,783 A- 179 12.6%3 Groupe Caisse D'Epargne France 12,196 7.57% 703,423 AA 462 9,3%4 Confédération Nationale du Crédit Mutuel France 11,405 7.08% 516,664 AA- 1,195 13,7%5 Rabobank Group Netherland 11,085 6.88% 599,356 AAA 709 9,1%6 The Norinchukin Bank Japan 10,971 6.81% 577,945 A+ 504 n/a7 Groupe Banques Populaires France 9,758 6.06% 341,819 AA- 1,012 n/a8 Desjardins Group Canada 7,813 4.85% 101,699 AA- 134 14,5%9 RZB Austria 5,646 3.50% 111,130 A1 267 15,5%

10 DZ Bank Group Germany 5,104 3.17% 475,508 A+ 663 19,8%11 SNS REAAL Netherland 4,109 2.55% 80,613 n/a 110 14,1%12 Community Credit Cooperative (CC) Korea 3,721 2.31% 51,835 n/a 119 n/a13 WGZ Bank Germany 3,502 2.17% 87,120 A2 53 n/a14 Nationwide Building Society UK 2,916 1.81% 212,973 A+ 290 6,53%15 Shinkin Central Bank Japan 2,806 1.74% 249,895 A+ 198 n/a16 AgriBank, FCB USA 2,477 1.54% 45,912 n/a 20 8,3%17 OP Bank Group Finland 1,674 1.04% 62,513 AA- 148 11,2%18 Cobank USA 1,581 0.98% 33,835 n/a n/a n/a19 Taiwan Co-operative Bank Taiwan, Ch 1,577 0.98% 59,889 BBB+ 5 5,28%20 Swiss Union of Raiffeisen Banks Switzerlan 1,562 0.97% 82,131 Aa2 128 10,8%

Total Top 20 155,313 96% 5,979,678 9,115Total Sector 161,136 6,082,107 9,126


CSR – methodologyfrom principles to practice…

• Development of draft measure of Corporate (Co-operative) Social Responsibility

• Reviewed existing CSR criteria• CSR and annual reports• The co-operative difference


CSR – some reflections

• CSR is increasingly being embraced by our corporate competitors

• Co-op principles in particular the ICA’s Statement of Co-operative Identity are the basis of most co-op operation throughout the world

• Co-ops driven by their values have in many ways been pioneers of socially responsible business

• However, the movement has not done all it could in measuring the co-operative difference

• It has allowed others to claim credit for “inventing “CSR”


ICA’s Global 300 (draft) CSR approach

We are attempting to developed a measure which incorporates the best aspects of mainstream CSR reporting while taking account of the co-op difference



Developing 300

Why create the list?

• Will contribute a development perspective to the Global 300 project

• Look at the role of large co-operatives in thirty economies

• Contribute to our knowledge about co-ops in the developing world where many of members operate


Developing 300 - methodology

• Will rank co-operatives in terms of their of their relative importance in national economies

• Initially, rank by revenue• Will highlight top 5 in each country • Work with regional offices, national members

and national governments to help collect data• Provide evidence base to support co-operative

development


Developing 300 - countries

• Americas – Argentina, Bolivia, Colombia, Costa Rica, Haiti, Honduras, Mexico, Paraguay

• Asia - Cambodia, Indonesia, Malaysia, Mongolia, Nepal, Pakistan, Phillippines, Sri Lanka, Thailand, Vietnam

• Africa – Cape Verde, Egypt, Ethiopia, Ghana, Kenya, Mozambique, Nigeria, Rwanda, Senegal, South Africa, Tanzania, Uganda


Global 300 - National 100 • Use Global 300 methodology to help towards the creation of national lists• So far…..

– USA – The UK recently published their UK 100– Netherlands has issued a provisional NL 100– France have released their first French 100 plus wider movement report– Other countries/sectors actively moving towards similar lists:

• Canada• Singapore• Australia• South Africa• Malaysia• Nigeria• Colombia• Sri Lanka• India• New Zealand, plus sectoral organisations• ICMIF• ICBA

• Work started on mapping existing databases and methodologies to create a global co-operative database


2008……..

• Global 300 programme part of the movement towards an evidence based approach

• With better data comes greater (self) knowledge, more relevance and ultimately more public authority and profile for the co-operative movement


Thank you

Garry [email protected]

mailto:[email protected]

Documents

2007 Global 300 - OECD2007 Global 300 Garry Cronan FINANCING LOCAL DEVELOPMENT: UNDERSTANDING THE ROLE OF MUTUAL CREDIT AND CO-OPERATIVE BANKS Conference, Paris 23 November 2007 International