Financial Co-operatives in Quebec, Canada: A Study of the Desjardins Movement

This paper discusses how the Desjardins movement, a cooperative movement in Quebec, Canada, has evolved over a period of one hundred years, how it has faced competition, and shaped the policy environment in Quebec.

The paper examines:

• The role of each of the three tiers in the Desjardins structure;
• Auxiliary organizations related to the movement;
• The pace at which the movement grew slowly in the first few decades and fairly rapidly after systems, procedures and norms were laid out;
• The growth path taken starting with the caisse (the base)and moving up the tiers as and when the necessity arose, rather than creating a superstructure above;
• The self-regulation that Desjardins has resorted to, both in terms of internal audit, and in terms of building up a security fund in case of difficulty or default;
• The major challenges that the movement faces, particularly with respect to member-retention, member-relations, member-satisfaction and member-patronage of the services.

The paper looks at the above issues in the context of automation and computerization, and suggests that the re-organization envisaged by the movement has to be done extremely carefully.

It concludes by listing lessons from the Desjardins movement for the Indian cooperative movement and for the rural financial structure.

[Based on the author's abstract]