MORE THAN THE FARMER'S FRIEND
The co-operative banks have made great strides in the century since they were founded. But deregulation of the world's financial markets and fierce competition from their commercial and savings bank rivals are taking them into new uncharted waters.
The small West German town of Heddesdorf is situated in the gently rising uplands of Altenkirchen, not far from Godesberg. For centuries, its inhabitants have grazed cattle in this untroubled countryside, far from the bustle of international financial markets. When funds have been needed -- for new agricultural machinery, or to buttress cash flow -- they have been provided by the local co-operative bank, named after its distinguished founder, Friedrich Wilhelm Raiffeissen.
The members of the local co-operative bank (in this case farmers who own more than 40 cows) legally own their own bank. Every 12 months they meet to discuss policy and performance. At the same time, they appoint the board of directors and a supervisory board which will represent their views at a higher level.
It is a cosy, secure arrangement -- an example of the self-help and mutual aid which, in just over a 100 years, have improved the lot of farmers and tradesmen -- not just in Heddesdorf, but in small communities throughout the world.