Zvi Galor

Dr. Zvi Galor (צבי גלאור), born in 1939, is an Israeli expert on cooperatives.[1]

Biography

Born in 1939 in Kfar Vitkin,[2] Zvi Galor earned his bachelor's degree from Tel Aviv University in 1966. In 1987 he obtained his master's degree[3] from the Hebrew University of Jerusalem, graduating with honors, and in 2017, at the age of 78, received his doctoral degree[4] from Bar-Ilan University in Ramat-Gan. From 1980 to 2002, Galor served as the pedagogical director of the English and French internships at the International Institute for Labour, Development and Cooperative Studies in Tel Aviv (ILDEC),[5] which in 1994 became part of the International Institute of the Histadrut.[6] This institute provides trainees from countries all over the world with advanced training sessions in cooperative management and development. In 1996 Zvi Galor became the institute's academic director,[7] a position he held until his retirement in 2002.[8] In this position he initiated dozens of pedagogical overseas missions in situ, organizing training courses run by the Institute's instructors directly in the students' country of origin. These projects took place in Africa, Asia, Europe, South America and Oceania.

Development activities

From 1976 to 1978, Galor participated in the establishment of a moshav in the Jordan Valley.[9] He was also a member of Moshav Kfar Vitkin's Executive Committee from 1978 to 1980. Since his retirement, Galor has been involved in the creation of many cooperative projects in both developing and developed countries[10] · ,[11] working mainly as a consultant. His writings and research have served as a guideline for these projects, particularly for the creation of cooperatives in rural areas and the development of these regions.

Research activities

Zvi Galor has developed an innovative research axis aimed at preventing the dismantling of cooperatives.[12] These ideas were best encapsulated[13] in the conclusions of the Seminar of Leaders of the Mauritius Cooperative Movement (Macoscle), led by Galor,[14] as well as in the establishment of the charter of the "Oklahoma Food Cooperative Project" in Oklahoma, USA.[15] Zvi Galor has published dozens of articles he wrote in Hebrew in English and in French, some of which were even translated into Spanish, Arabic, Indonesian and Vietnamese[16]

The principles developed by Zvi Galor
  • The cooperative[17] is created by its founding members,[18] and is the exclusive property of the members.[19]
  • The cooperative is established in order to serve its members optimally[20] and at the lowest possible cost.[21]
  • The value of the common property[22] is equal to the sum of the shares held by the members of the cooperative.[23]
  • Cooperatives strive to operate at cost price,[24] i.e. they do not generate any profits or losses. Any profits or surpluses[25] are distributed equitably among members in the current year, based on their participation. Occasional losses are covered by all members according to their participation.[26]

The Study of "Decooperativisation"

Zvi Galor studied the problems arising from the dismantling of cooperative structures (decooperativisation),[27] both in developing and developed countries. He focused in particular on the reasons that led to the dismantling of two Israeli cooperatives that had been in existence for a relatively long period: Tnuva and Hamashbir Hamerkazi.[28] Tnuva[29] is an example of a secondary cooperative.[30] For the 80 years of its existence, it served as a platform for the marketing of dairy and agricultural products. It comprised all the moshavim and kibbutzim in Israel.

The factors that lead to the dismantling of a cooperative

Galor found that the following situations lead to the dismantling of a cooperative:

  • A cooperative whose members have mostly stopped using the services it offers is more exposed to the risk of decooperation.[31]
  • A cooperative whose shares are held at nominal value[32] recognizes the risk that its members will demand for themselves the unallocated collective value of the structure.[33][34]
  • A cooperative whose members are not always aware of the real value of their cooperative equity, the assets of which they are seeking to sell. Potential buyers often finance the cost of buying a cooperative by reselling its assets.[35]

References
  1. Zvi Galor is a member of the editorial board of the Revue internationale de l'économie sociale (RECMA) as a foreign academic correspondent
  2. Zvi Galor describes the cooperative components of the moshav in general and his own moshav, Kfar Vitkin in this article: The cooperative components of the Classic Moshav in Journal of Co-operative Organization and Management. 2:2, 83-91, 2014
  3. http://coopgalor.com/doc/Master&Notations.pdf
  4. http://coopgalor.com/doc/PhD%20Zvi%20Galor.pdf
  5. https://uia.org/s/or/en/1100044811
  6. https://uia.org/s/or/en/1100009040
  7. https://mfa.gov.il/mfa/mashav/archive/pages/mashav%20courses-%20list%20of%20academic%20institutions.aspx MASHAV - Israel's Agency for International Development Cooperation - Israel Ministry of Foreign Affairs Published a list of academic institutions for the year 2003, which also includes the following institute: The International Institute - Histadrut Director General: Gabriel Lousqui Academic Director: Zvi Galor Beit Berl, Kfar Saba 44905 E-mail: [email protected] Tel:972-9-7612323 Fax:972-9-7421868
  8. In the following link, Zvi Galor describes his retirement: "After 22 years working at the International Institute - Histadrut, of them 6 years as Academic Director of the Institute, I am now retiring. I am proud to say that these 6 years saw an expansion of our training programmes, making the Institute one of the largest of its kind in the world, with 45 training programmes, in 5 languages every year. Graduates numbered 1,300 annually coming from 140 countries worldwide."http://coopgalor.com
  9. https://www.researchgate.net/publication/236838186_The_Moshav_in_Israel_An_Agricultural_Community_in_a_Process_of_Change_-_A_Current_View.
  10. Coopec GALOR, Ouagadougou, Burkina Faso, 2002 http://www.coopgalor.com/french/realization/coopec_galor.html. 2016 http://lefaso.net/spip.php?page=web-tv-video&id_article=71843&rubrique4, http://lefaso.net/spip.php?article44838
  11. State of Oklahoma, U.S.A., Oklahoma Food Cooperative, 2002. http://www.coopgalor.com/realization/Oklahoma.html - 2018, http://oklahomafood.coop/about-us
  12. in Battiliani, P., & Schröter, H. G. (2012) ‘’Demutualization and Its Problems’’. in P. Battiliani & H. G. Schröter (eds.), The cooperative Business Movement 1950 to the Present, in p. 152. Cambridge University Press. https://www.cambridge.org/gb/academic/subjects/history/economic-history/cooperative-business-movement-1950-present?format=HB
  13. Betru, Z. (2010). Determinants of Saving and credit Cooperatives (SACCOs) Operational Performance in Gondar Town, Ethiopia. supervised by Girmay, T. PhD, M.A. Thesis, Mekelle University, Department of Cooperative Studies, 33 of 121. http://opendocs.ids.ac.uk/opendocs/handle/123456789/5180 [archive] "The existence of functioning cooperative societies leaves a positive mark on the economic and social structure of a country since cooperatives develop on the basis of local initiative and local economic strength; decentralized cooperative systems can operate in close proximity to markets and target groups. (Zvi Galor, 2006)."
  14. Fitriyah, N. (2018) Productive Resources Management: How Visiana Bhakti Cooperative Samarinda Strives. Journal of Social Studies Education Research, 9:2, 189-209. "Globally, though such cooperatives often fail to satisfy their members’ needs, members and administrators are rarely able to comprehend the problems in question. (Galor, 2013). Galor (2013), Movsisyam (2013), and Friedman (1992) suggest trust is the most important element when seeking credit."
  15. State of Oklahoma, U.S.A., Oklahoma Food Cooperative, 2002. http://www.coopgalor.com/realization/Oklahoma.html - 2018, http://oklahomafood.coop/about-us
  16. https://www.researchgate.net/profile/Zvi_Galor/organize, https://scholar.google.com/citations?user=UqvIEJUAAAAJ&hl=en, http://www.coopgalor.com/publications.html, https://www.cairn.info/publications-de-Zvi-Galor--675566.htm
  17. https://www.leovda.coop
  18. "According to Galor (2003:1), co-operatives are economic enterprises that are initiated by their members and belong entirely to their members. These enterprises are formed with the intention of providing the best possible services at the lowest possible cost to their members when markets fail to provide required goods and services at affordable prices and acceptable quality." in Simelane, N. (2011). An assessment of the role of co-operatives in smallholder dairy production and marketing in Swaziland. Supervised by Prof. J. Kirsten, For the degree of Msc. Agric., University of Pretoria, Department of Agricultural Economics, Extension and Rural Development Faculty of Natural and Agricultural Sciences, 1-136, Pretoria. p. 14-15.
  19. Mikami, K. (2018) Are cooperative firms a less competitive form of business? Production efficiency and financial viability of cooperative firms with tradable membership shares. Economic Systems, 42:3, P. 501 7.3. Israeli community cooperatives (15): "The final example is neither a worker nor consumer cooperative. A moshav is an agricultural community cooperative in Israel. A moshav conducts a wide range of activities for member residents of the community, from the collective purchasing of farm inputs and the collective marketing of agricultural products to savings, credit and insurance, the retail of food and household goods, and even public administration. One distinguishing feature of a moshav is that its farmland is divided into farm lots of equal size, 3 ha on average, and its membership is tied to the right to use a single lot. Because the total area of farmland in the village is fixed and the farm lots are not allowed to be combined or subdivided, the number of memberships is constant over time. Membership is usually inherited by one of the member’s children. However, childless members can sell their membership to farmers outside the village at the market price or for the real value of the share capital. Along with the kibbutz, another type of community cooperative in Israel, the moshav has been prevalent in rural areas throughout the country over the past century. The system of the moshav seems to provide another indication that closed membership is the key feature required for a market for membership shares to function well." (15) This subsection is based on Galor (2014, 2015a,b) and additional information obtained from the author. Galor, Z., 2014. The cooperative components of the classic moshav. J. Co-Operative Org. Manage. 2, 83–91. Galor, Z., 2015a. Equity in service at cost: the case of the classic moshav. J. Co-Operative Stud. 48, 28–37. Galor, Z., 2015b. Le mochav classique et ses départements en Israël. Rev. Internationale de L’économie Sociale (336), 94–103.
  20. Published by the University of Wisconsin. [archive : http://archive.wikiwix.com/cache/?url=http%3A%2F%2Fwww.uwcc.wisc.edu%2Finfo%2Ffood%2Fzviok.pdf] How to Establish a Cooperative: A Case Study of the Oklahoma Food Cooperative by Zvi Galor.
  21. Kigathi, C. C. W. (2016). Motivating factors for dairy cooperative membership in Kenya : a case of small holder dairy farmers in Kiambu County (Thesis). Strathmore University. Retrieved from https://su-plus.strathmore.edu/handle/11071/4765 [archive] See P. 3 "According to Galor (2003), cooperatives are purely economic started by their members and owned entirely by them. Cooperatives are formed with the intention of providing its members with the best possible service at the lowest possible cost which other markets may not match."
  22. http://www.uwcc.wisc.edu/info/food/zviok.pdf
  23. Draperi, J. (2000). Les organisations coopératives et mutualistes face au marché et à la déréglementation. Revue internationale de l'économie sociale, (278), 4–4. doi:10.7202/1023845ar "Enfin, Zvi Galor retrace la grande aventure des coopératives d’épargne et de crédit d’Israël, de leur création au début du Xxe siècle jusqu’à nos jours. S’appuyant parfois sur des sources inédites (comme un entretien avec Abraham Brener, ancien directeur de l’importante coopérative de crédit et d’épargne de Tel-Aviv), Zvi Galor montre l’importance de ce mouvement. S’attachant à détailler les règles de l’organisation de l’épargne et du crédit, il met en évidence la place de ces coopératives dans le développement, avant qu’elles ne se fédèrent et, finalement, se transforment en banques coopératives."
  24. Mikami, K. (2018) ibid.
  25. "The deficit or surplus was allocated among District members based on a per-acre availability charge for water in accord with IID policy" Cited in P. 45 in Rosen, M. D., & Sexton, R. J. (1993) Irrigation districts and water markets: An application of cooperative decision-making theory. Land Economics, 69:1, 39-53.
  26. L’économie sociale : économique parce que sociale Jean-François Draperi - Revue internationale de l'économie sociale, Number 336, April 2015 "Zvi Galor se penche sur une question peu étudiée, celle de la comptabilité et de la gestion originale des mochavs, villages coopératifs israéliens. L’auteur souligne les aspects les plus remarquables de cette comptabilité : la distinction entre la participation aux frais d’immobilisation et la participation au fonctionnement ou encore l’absence de déficit ou de surplus dans toute comptabilité. La conjugaison de ces deux caractères met en évidence l’articulation originale entre la solidarité coopérative et l’intérêt de chaque membre."
  27. Battiliani, P., & Schröter, H. G. (2012) Demutualization and Its Problems. in P. Battiliani & H. G. Schröter (eds.), The cooperative Business Movement 1950 to the Present, in p. 152. Cambridge University Press - https://books.google.com/books?id=XshpFhVmVhMC&pg=PA152&dq=ZviGalor&hl=iw&sa=X&ved=0ahUKEwjP0rSp__PdAhXRT8AKHRmmARoQ6AEIJTAA#v=onepage&q=Zvi%20Galor&f=false
  28. Subject of Zvi Galor's doctoral thesis.
  29. Galor, Z. (2008) Demutualization of Cooperatives: the Case Study of Tnuva By Zvi Galor. In international conference in Rehovot, In Israel on the subject of: Rural Cooperation in the 21st Century: Lessons from the Past, Pathways to the Future, Rehovot, Israel, June 14–16, 2009, 1-182. http://departments.agri.huji.ac.il/economics/en/events/p-galor.pdf
  30. http://www.findevgateway.org/library/model-secondary-and-tertiary-cooperatives-support-primary-cooperative [archive] ; http://www.findevgateway.org/library/finance-and-guarantees-rural-development
  31. See 'La participation en coopérative d’habitation : Partager l’expérience et mettre à profit les connaissances' dans : Confédération québécoise des coopératives d'habitation (2018), pp 14 and 20. (http://www.cooperativehabitation.coop/wp-content/uploads/2018/04/Cahier-participation.pdf [archive]). See also 'Les situations de crise dans les coopératives : Mieux comprendre pour mieux intervenir' dans : Confédération québécoise des coopératives d'habitation (2007), p. 7.
  32. http://caravanecooperative.be/wp-content/uploads/sites/26/2018/01/Caravane-coop_PV_La-valeur-des-parts-en-coopérative-Copie.pdf [archive] ; http://www.les-scop.coop/sites/fr/_media/docs-les-scop-info/2015_22_LesScopinfo_Juridique.pdf [archive] ; See also at page 54 chez : Mauget, R. (2008). Les coopératives agricoles : Un atout pour la pérennité de l’agriculture dans la mondialisation. Revue internationale de l'économie sociale, (307), 46–57.
  33. Espagne, F. (2008) PRINCIPES COOPERATIFS ? LESQUELS ? Histoire et lecture des principes coopératifs selon l’Alliance Coopérative Internationale. Confédération générale des Sociétés Coopératives Ouvrières de Production, 1-28. 18.5.2008, Paris. Scop de la communication ; http://www.les-scop.coop/export/sites/default/fr/_media/documents/histoire-principes-cooperatifs.pdf
  34. Galor, Z., & Sofer, M. (2011) Evolution passée et récente des villages coopératifs en Israël. Recma - Revue Internationale de l’Economie Sociale, 321, 19-21. Juillet 2011.
  35. See Gideon Bickel, and also: Zvi Galor's doctoral thesis : interview of Gideon Bickel (2017).
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