STOCKHOLM, Sweden–With the planet’s credit unions gathered here, the World Council of Credit Unions’ chairman wasted little time in getting right to the biggest issue that has affected the association—the significant cut in its funding that occurred this year. But he also said there is much to be positive about.
The comments came during the World Credit Union Conference in Stockholm, which has approximately 1,700 people in attendance.
As the CU Daily reported, the Trump Administration’s slashed funding for USAID, resulting in WOCCU having to let go of half its staff and cancel three international projects that were underway.
“I would be remiss if I didn’t address the dramatic changes to our organization that we’ve experienced over the past six months,” said Michael Lawrence, president of Australia’s Customer Owned Banking Association and chair of the World Council.
The elimination of the funding without warning led to the “reshaping the World Council overnight” and “effectively brought three vital projects to a halt,” according to Lawrence.
By coincidence, the Senate is currently working on rescission package backed by President Trump that calls for canceling previously allocated funds. Trump is seeking to a total cut of $9.4 billion, including the cuts to the U.S. Agency for International Development.
The Cancelled Projects
Those three projects included work being done in Ukraine as its CUs struggle to keep operating during the war with Russia; an economic inclusion program project in Peru and Ecuador, and inclusive lending projects underway in Burkina Faso, Guatemala, Kenya and Senegal, all of which were funded through USAID’s Cooperative Development Program.
“And just to add to the challenge the World Council was in the middle of a strategic planning process when the world changed,” Lawrence continued, sharing a quote attributed to Dr. Seuss: “When something bad happens, there are three choices: you can let it define you; you can let it destroy you, or you to let it strengthen you.”
Making the Pivot
It is in that spirit, according to Lawrence that the World Council has pivoted to “what it does best,” which is to advocate for “fair treatment of credit unions in front of international standards-setting bodies.”
“What came out of the planning process was a reinforcement of what we know to be true: that advocacy is our top priority,” Lawrence said.
He told the meeting WOCCU has now finalized a three-year strategy around taking a proactive approach to advocacy, to delivering improved services, and to strengthen its role as a global leader in cooperative finance.
‘Crystalized’ Priority
“We’ve crystallized that advocacy is our absolute top priority,” he said. “It’s important to remember that financial rules are set at an international level and that national regulators often have limited discretion once it lands in their jurisdiction. That’s why the international advocacy work of WOCCU is so important. The World Council of Credit Unions is the only trade association advocating on behalf of credit unions before key international standard-setting bodies. including the G20, the Basel Committee, the Bank of International Settlements, the United Nations, and the list goes on.”
Growing Risks
He added he believes WOCCU’s role has become only more important internationally and nationally due to growing threat risks geopolitically.
“As the saying goes, ‘In the middle of every difficulty lies an opportunity.’ This has really sharpened our focus on what’s important as an association and delivering value to our WOCCU members,” Lawrence said.
Some of the crowd at the opening session of the World CU Conference.
