Background
The importance of SMEs in the economy has now been well recognized both in the countries of the North and of the South. Despite wide acceptance, the problems faced by such enterprises, remain of a distinct pattern characterized by wide disparities in the economic power of nations and within their people. The division has widened during the past decade, under the influence of globalisation, Mr. Juan Somavia, Director General of the International labour Organisation has expressed his concern about this trend, when he says,??.. seen by people, it appears that everything is being done to facilitate the global track, global communication, global finances and global investment. But people and families live locally. There has to be a balance between the global and the local . That balance has now been lost?.
The experience of ?jobless growth? around the world, necessitates a fresh look at the opportunities and constraints of SMEs. It also raises some valid questions regarding the overall objective of growth. In a nutshell, the relevant question on this context is, whether growth leads to equitable distribution of wealth and enhanced welfare, or to greater concentration of economic power in the hands of a few.
The above issue was examined in detail by two recent reports, one brought out by the international labour Organisation , and the other one, by the UNDP. These two recent studies on the global development experience highlight the need for development action at the local level. The Report of the ?World Commission on the Social Dimension of Globalisation? explains ?the rapid growth of global markets, without a parallel development of economic and social institutions? (ILO,2004:XI). The Report of the ?Commission on Private Sector and Development?, issued by the Office of the Secretary General of the United Nations, (2004) highlights the enhanced alienation of the poor from the process of development, and advocates a local level strategy in which , ? business is tuned to work for the poor? (UNDP,2004).
Need for Action
Both the reports highlights on strategies of development at the local level, where SMEs and the informal sector are considered as employment generators and engines of growth . Such mainstreaming of the weaker links of the production system, is a major departure in economic theory and policy, which could not have been expected until the last quarter of the 20th Century.
The issues raised by the above two reports, appear in a more general fashion, in the Millennium Development Goals? of the United Nations. The First and the Eighth Goals of the MDG call for action buy governments, in order to reduce extreme forms of poverty. But no UN resolution is likely to get translated into action, unless the national governments have clarity of thought on the direction of development and the associated development strategies, based on the local realities and experience. And this makes the imperative for a ?bottom-up approach? to development. In most parts of the world, the term ?local-level development? is nothing new. The context having changed significantly, they, need to re-examine the situation against the more recent experience of globalisation. It is the imperative that makes an alternative approach to local economic development crucial. Development of SMEs on scientific lines should be central to this approach.
The Cochin Resolution
Exchange of experience and views, among all those with concerns to share, is simultaneously, a national as well as international essential requirement. The International Conference on Local Economic Development and SMEs, held at Cochin, on January 18-19,2005, recognized these imperatives. Concerned citizens must be able to properly voice their concerns and offer suggestions and guidelines for action, in support of or regulating the initiatives taken at various levels and systems of governance. The conference, therefore, resolved to establish an international Network, supported by national networks of all stakeholders who are concerned with local economic development in the shadow of globalization.
Name of the Network
This Network will be named and styled as ? International Network on SMEs in Local Economic Development (INSLED)?.
Objectives
1. To promote and highlight the importance of small and medium enterprise in the process of local economic development.
2. To initiate suitable activities for promoting this interest, including research, training activities, and organization of national and international dialogues.
3. To prepare resolutions and other documentation for presentation before the authorities concerned, publicize them through media and seek public opinion and support.
4. To disseminate information among members and Networks.
Activity Spectrum
The national imperatives in each country are distinct. However, the Cochin Conference offered an indicative list of activities as follows:
1. To set up National Networks and National Committees, which in turn, become members of the International Network and provide representatives to the International Committee
2. To organize an Annual Conference and /or an Annual Lecture, which could be held in the member countries by rotation.
3. To undertake any other activity as may be needed to fulfill these objectives.
National Networks
A group of like-minded people and institutions can initiate a National Network.
Management
The National Networks will be managed by a Committee selected from among the members of the National Network and will function according to the laws, regulations and ordinances of the country concerned. However, the functioning of the National Committees and National Networks shall not contradict the aims and objectives of the International Committee, nor the decisions taken or guidelines provided by the International Network or its managing committee at its meetings or agreed by the three-fourths majority of the member national Networks ,by circulation.
The International Network will be managed by an International Committee composed of the representatives of the National Committees. Each National Committee shall nominate one representative to the international Committee and such representatives shall have the right to take part in the deliberations and join in the decision making process.
Both at the National Committees and the International Committee majority decision with at least two thirds of the representatives present and voting, shall prevail. The National Networks shall have the discretion to adopt or reject any proposition not supported by two-thirds majority of the representatives. In such an event the decision of the National Network, duly communicated to the international Network, shall supercede the decision of their representative. Where a proposition is carried with two thirds or more of the representatives voting on the issue shall not be open for such consideration buy the National Networks. The National Networks may, however being top the notice of the International Network Secretariat any adverse effects that are apprehended by them for re-consideration or detailed examination, and if necessary re-circulation among there members or convening an International Meeting of the representatives or placing the matter before an ensuing meeting. The decision of the International Secretariat concerning he mode of handling the issue shall not be disputed.
Until a sufficiently large number of National Networks are established and they become operational, the office of the International Networks shall be housed in the same premises as the ISED Small Enterprise Observatory(ISED-SEO), at the Institute of Small Enterprise and Development , cochin, India.
Jurisdiction
The National Networks shall have jurisdiction limited only by the territorial jurisdiction of the country concerned. Groups of contiguous countries and island nations may form Regional networks to replace individual National Networks, in which case, the jurisdiction will extend over all countries so joining together.
The international network shall have a world-wide jurisdiction and may deal with issues concerning any National or Regional Network, with the consent or on the request of the members of such networks through, their secretaries or authorizes representatives.
Resources
The resources of the International Committee are proposed to be mobilized through subscription and other fees from the members; and application fee of the National Networks.
1. Membership fee
2. Sale of publications
3. Donor support
4. Other suitable sources
The resources of the Networks will be maintained in separate bank accounts.
Membership
Membership of the national Network may be of four categories:
1. individual members
2. institutional members
3. inteernational organizations
4. associate members
The International Network will have similar four categories of memberships from individual organizations/institutions having global presence or interest. In addition, all regional/national Network will be ex-officio members.
Office Bearers
The Office bearers of the National Network may be elected annually or once in two or three years as may be provided in their respective byelaws or other documents of incorporation. The Chair of International Network will rotate among National Networks in an alphabetical order of the names of the countries.
Fee
The fee/subscription of various categories of members shall be determined by the National Networks as far their national membership is concerned.
The Way Forward
The participants of the Cochin Conference, as also of INSLED-India, have taken vigorous steps to internationalize their initiatives and to set up similar networks in other countries, and to formally launch the International Committee. Enquires in this regard may be addressed to:
Member Secretary,
INSLED-India,
ISED Road, Cochin ?682028,Kerala,
India
E-mail: insledindia@isedonline.org
India?s National Network
The International Network on SMEs in Local Economic Development India (INSLED-India) was set up on January4, 2006. Under a Board of Governors by eminent personalities, the Indian counterpart Network is gearing up its activates. INSLED ?India is housed at its registered office at ISED House, ISED Road, Cochin-682028,Kerala,South India
Status
INSLED-India is a Scientific Society registered under the TCLSCS Act-1955.
Jurisdiction
The jurisdiction of this Society shall be the Republic of India.
Objectives
This Society will undertake, support, organise and execute various activities, which in the judgement of its Board of Governors (BG)/General Council (GC), contribute to the achievement and / or furtherance of its objectives.
Functions
The function of the Society are:
to act as a policy advisor to various stake holders on Local Economic Development issues.To function as a national Focal Point for the exchange of information, data and ideas on a continuing basis.To establish networks with the various Local government bodies, institutions and other bodies concerned with ?local economic development? in India and abroad.To play an advocacy role through new ideas, methodologies, processes and procedures relevant to economic development, through local bodies and popular institutions at local level, such as self-help groups, women?s fora and so on.To collect, store, process,deliver and disseminate information.To DEVELOP and conduct research in order to establish best practices conducive to ?Local Economic Development?, and to propagate or disseminate results.To provide and organise training programmes, workshops, seminars, conferences, etc., for the popularization and dissemination of ideas, views, methods, processes, procedures, information and data for the benefit of general public as well as for selected stakeholders.To coordinate with similar networks in other countries and the International Coordination Committee in Local Economic Development.To coordinate and interact with World Bodies, Donor Agencies, Task Forces, groups and institutions concerned with Local Economic Development issues and to act as a liaison between such institutions, organizations and bodies and institutions, organizations, local bodies and stakeholders in India.
Resources
The net income and resources of the Society shall be directed and utilized towards the promotion of the above objectives.
Management
Subject to the Memorandum of Association, the management of the Society shall be vested with the Board of Governors.
Membership
This Society, INSLED-India, functioning under the provisions of the TCLSCS Act-XII of 1955, shall have the following categories of members:
Founder Members
All those who have appended their signature to the Memorandum of Association shall be Founder Members of the Society, and shall remain for life unless they resign, or are removed on a vote of non-confidence, or fail to pay the prescribed fee. Founder Members include both individuals and institutions.
Ordinary Members
All those who subscribe to the objectives of the Society and apply in writing, furnishing such details as may be required by the Board of Governors, who pay the prescribed annual membership fee, and are accepted as members by the Board of Governors, shall be Ordinary Members of the Society.
Life Members
This category of membership shall be given on payment of the prescribed fee as defined in Rule 3 below, provided they are eligible for membership as ordinary members.
Associate Members
This category includes those who have sympathy with the objectives and programmes of the Society, and have been duly admitted by the Board of Governors on payment of the prescribed subscription fee defined under Rule 3 as Associate Members. Associate Members will not have voting right. However, they will enjoy such facilities as will be determined by the Board of Governors from time to time.
Institutional Members
This category of membership shall be extended to such organisations/institutions in India or abroad, as the Board of Governors may decide, on payment of fees as specified.
More details on INSLED-India, including membership details, are available from: The Member Secretary (e-mail: insledindia@isedonline.org)
E-mail: insledindia@isedonline.org
Also see the COCHIN DECLARATION on SMEs in Local Economic Development
