Press Release

“Co-operatives and Islam: common values?

Co-operatives are an attractive vehicle for some Islamic groups seeking to tackle poverty in Africa and Asia, according to a recent seminar sponsored by the Department for International Development (DFID).

“Our colleagues in ICMIF have done a lot of work on developing insurance products that are halal - acceptable under Muslim law. Indeed Folksam, the Swedish co-operative insurers, have developed a special affinity programme with the Muslim community,” Stirling Smith of the Co-operative College, told the News. “We were interested in the implications for the developing world, as insurance is important in helping secure livelihoods for the poor. Shocks such as poor health, crop failure or livestock dying can plunge a marginal family into poverty. If they could insure against these risks, it could help then survive the shocks. We approached DFID about the links between co-ops and Muslim finance, who immediately took up the idea.”

Dr Linda Shaw, who spoke at the Seminar on the theme “Co-operatives and Poverty” explained how pleased participants were at the overlap between co-operative values and principles and Islamic principles of finance. “When Islamic colleagues were talking, it sounded very similar to the ethical policies of the Co-operative Bank or CIS.”

Gareth Thomas, MP, Chair of the Co-operative Party, and a minister at DFID, also spoke at the seminar and welcomed the initiative. He told participants that faith based groups were seen by DFID as important partners in development.

“We now have several invitations to follow up,” Dr Shaw told the News. “This was just a first step in a dialogue, but a number of the Islamic aid organisations present at the seminar see co-ops as a way of helping poor people in line with their values; they want to work with us on developing joint projects.”

ENDS

For further information please contact

Linda Shaw

Head of Research & Project Development

Co-operative College

Tel: 0161 246 2922

Email: linda@co-op.ac.uk

Website: http://www.co-op.ac.uk