Growing credit union movement holds second conclave in Ukraine (09/15/96)

Growing credit union movement holds second conclave in Ukraine

by Marta Dyczok

KYIV - Cooperation has become one of the new buzz words in the new democracies of Eastern Europe. Some have more claim on the word than others. One indisputable group is the World Council of Ukrainian Credit Unions, which held its second conference in Kyiv on August 20-21. Representatives of credit unions from various regions of Ukraine, Canada and the United States met on the eve of Ukraine's fifth anniversary celebrations to discuss future plans.

"We have crossed the mystical five-year barrier," Pavlo Movchan told the assembled delegates, "and now we need to focus on Ukraine's domestic economy. In this the emerging cooperative movement is playing an important role."

The cooperative spirit was very much in evidence at the conference. Delegates from various countries and their spouses milled around in the foyer, greeting each other and exchanging business cards. Even the formalities had a friendly feel to them. Dmytro Hryhorchuk from Chicago, president of the World Council of Ukrainian Credit Unions, who presided over the opening session, warmly welcomed speakers to the podium and, apologizing for his jet lag, asked whether he had forgotten anyone.

The emphasis of this renewed cooperative movement in Ukraine appears to be continuity. An elderly former corporal from the Ukrainian Insurgent Army, Mr. Kuk, gave a short speech explaining how during World War II the cooperative movement provided the economic base for Ukraine's freedom fighting movement.

"We were able to continue our military struggle for an independent Ukraine because we had backing from the cooperative movement. There is an important relationship between economic independence and national consciousness," he said. "The cooperative movement helps people develop a sense of control over their own destiny, which is much needed in Ukraine today."

Since Ukraine became independent five years ago, up to 200 credit unions have officially registered. Not all of them are operational yet since many face administrative start-up difficulties. Helping them overcome these problems are Ukrainians from Canada, the U.S. and Australia who have experience in the credit union business. Assistance is coming in the form of advice, training and technical support.

Last year USAID allocated a three-year $1 million project aimed at creating 10 model credit unions across the country.

In March the Canadian foreign aid agency CIDA approved a five-year $3.4 million Ukraine Credit Union Development Project.

Toronto-born Bohdan Kozy is the Kyiv-based project manager. Having spent, four years living and working in Ukraine he is familiar with both the work conditions and potential for development in the new country. He explained the strategy of the Canadian program as a grass-roots approach aimed at transferring skills. "We are trying to help credit unions in Ukraine create a network," he said just before the opening of the conference.

An important step in this networking is participation in the international credit union system. A Ukrainian National Association of Credit Unions has already been created and, with assistance from Ukrainians in the diaspora, contact has been made with the other national associations and the World Council of Credit Unions.

Although the first steps have been taken, according to Kenton Eggleston of the Canadian Cooperative Association, "Much work continues to be needed to ensure that Ukraine's credit unions flourish and grow as viable financial institutions."

Judging from the mood at the second conference of the World Council of Ukrainian Credit Unions, there appears to be no shortage of people willing to put in the necessary effort to revive the cooperative movement in Ukraine.