Appendix

Appendix One: Case studies

Baking Dry Lychee

Ban Huay-Bong, in Chai-Prakarn district, Chiangmai province, grow a lot of lychees, because they has been advised from the local government that their village as the climate environment suitable for growing litchee. The villagers started to grow lychee, and, they followed their friend in growing more and more as they found the success in production and good income. After a while, their total lychee production became over-supplied, some days it was altogether about ten thousand kilograms. They could not seek enough markets to distribute their products. Their lychee were overproduced, the price turns falling down lower and lower. Moreover, the middleman, and the factory oppressed them with the very cheap price. The selling price in 2002 was only 5 baht per kilogram, which was not enough for the cost of fertilizer, pest control, orchard maintenance, wages for collection, and cost of transportation. The villagers had to leave the lychee rotten on the trees. Some orchards decided to change other kind of plantation. Some chose to grow 'Sai-Nam-Phueng' orange instead. The villagers still followed the same history growing 'Sai-Nam-Phueng' orange like their friends. They could face exactly the same problems like lychee again i.e. the over-supply, the falling price. Besides, 'Sai-Nam-Phueng' orange has many deseases in growing, and oftenly, has high spreading of epidemics also.

There were 10 members of Huay-Bong Credit Union, united together to discuss about possible ways to solve the falling price of lychee. Each of them has over '10 Rai' (= 4 acres) of lychee orchard. They have all faced the same problem of marketing their production. They agreed that they would not destroy their lychee trees to grow orange like other villagers. But, they would seek out ways to preserve and modify their lychee products for selling at the off-season time. The price would be better, and the lychee would be more value-added.

For those who were interested to grow some orange, would try growing just 1 'Rai' in their 10 'Rai', in order to test if the marketing of orange would be better than lychee or not. Another reason was, the growing of orang is new to them, they should learn from working experience. If there should be any problem, they would lose only 1 'Rai' not the whole orchard. In the current concept of economic sufficiency suggested to the Thai people by His Majesty the King of Thailand, which has the guidelines of doing the integrateded agriculture. If the villagers use the concept to apply growing various plants instead of a single one, the lychee bear fruits once a year while the orange yield fruits through out the year. Thus, they have some production for sale during the off-season of lychee.

Upon their agreement to preserve and modify lychee products, they discussed in details of the possible whats and hows. Lychee can be made into many kinds of products e.g. lychee wine. At present, fruit wine is popular. The government also promoted to produce freely. But the problem is, if there are too many producers, there can be the problem of marketing, too many competitors. Lychee juice is also interesting but the process of production is not easy. The important thing is the method of keeping.

The fresh lychee juice cannot be kept long, unlike the wine which can be kept longer. Baked dry lychee is not yet produced much. Some even do not know that lychee can be baked dry, although, the people are acquainted with baked dry lychee. Many members of the group are of the opinion to do baking dry lychee. But, for the group business enterprise to be successful, possible and to be certain, they cooperate to analyse the strong point and weak point of this business enterprise.

SWOT Analysis on Baking Dry Lychee

In analyzing the SWOT on baking dry lychee for the strong point and the weak point, they found that there is strong points in having the raw material for production i.e. there are a lot of lychee; there are opportunities for marketing because it is new product; there are not many competitors; and, the government has the policy the promote. Every member agreed upon baking dry lychee, but they did not have the knowledge and experience about baking. They discussed with the personnel of the Micro Economic Development Project, who suggested that they better hire a factory to do the baking. They seeked for information, because there were many factories doing the baking.

Then, the President of the group went to negotiate with the factory to get essential information on bringing their lychee for baking dry. The informations are as follows:-

1. Raw material is the only sweet lychee, because if sour lychee is used, it would be more sour. The lychee should be big and have the same size. The harvested lychee should be sent to the baking factory as soon as possible i.e. on the same date of harvest. The lychee must not be crushed sore.
2. In baking lychee, it must be baked by the baking oven which has the temperature control, and the system of steam spraying, so that the lychee meat will not be too dried, and the colour is nice.
3. The duration of baking lychee is longer than baking longan, because lychee meat is more watery i.e. it is composed of more juice than longan.
4. The quantity for each baking with the fruit skin is 1000 kilograms, and, for each baking without the fruit skin is 200 - 300 kilograms. After the baking, the weight will be only 10% left.
5. In baking the lychee without the fruit skin, the factory has to core out the lychee meat, which is harder than to core out the longan, because the lychee meat is more watery than longan. The cost to core out the lychee meat is higher than the cost of fresh lychee.
6. The cost of baking is 80 - 100 baht per kilogram. (The cost of baking is referred from the cost of baking 7000 kilograms per each baking time as the standard cost i.e. 2.50 baht per kilogram.

7. The wholesale price of baked dry lychee without the fruit skin is 180 - 200 baht, while the retail price is 300 baht, in case the cost of fresh lychee is less than 10 baht per kilogram. (The selling price is according to the fresh lychee.)
8. The baked dry lychee with the fruit skin can be kept for 2 years, and the baked dry lychee without the fruit skin can be kept for 1 year. It should be kept in cool place or refrigerator, so as to be able to keep for a long time and the colour unchanged.
9. Place to bake - Only some factories can bake lychee. Most baking factories are for baking longan, because they have only the system of dry baking, they do not have the system of steam spraying while baking.
10. The Family Bee Company Limited, in Chiangrai, who was successful in baking dry lychee in 2003, has 30 lychee baking oven with steam spraying system.

After that the member held a meeting to study the informations and discuss the preparation in the following:-

- Growing the type of lychee which can be baked dry.
- The total quantity of lychee which each member has.
- The total quantity of lychee which each member wants to send for baking.
- The expected time that lychee will be ripe.
- Number of transportation / pick-up the members have, to carry the lychee to the factory.

Each member shares 1000 baht to start the working capital, which makes a total of 10,000 baht. They agree that, as they are in the beginning having small working capital, and, in order to lessen the expenses and increase the capital, the first sending of lychee should be 1000 kilograms, the cost of which will be calculated and given as the share capital of the group. This is a method of increasing the working capital, and the group also save their starting capital in buying the raw material. At the same time, the members can sell their lychee, although they do not receive the money, they receive the share capital i.e. they invest by lychee. The working capital can be seeked from outsider e.g. the cooperative may hold some shares in the group, or the group can request for support from other government or non-government organizations.

Production Management - Every year, they have the problems that they cannot harvest the lychee in time, because they grow lychee in the same area. Every family in the village has lychee orchard. It is hard to find labourers to collect the lychee. Each family has their own task to collect, so that their lychee will not be left rotten on the trees. If the 10 members cooperate to work together using the original Thai tradition i.e. 'Karn-Long-Khak', will be a good system of management to solve the problems. The 'Karn-Long-Khak' means, to help working together at harvest time in each orchard e.g. working at Mr. Ja-Gor for the first day, working at Mr. Ja-Khor for the second day, and the next days at others' orchards. This way of working can be applied to other kinds of work also, such as, putting in fertilizer, cutting grass, triming branches. Beside acquiring work, they get more friends, and joyousness in working together. It is not lonely, not bored like working alone. The working will be faster because of cooperative efforts.

During the harvest season of lychee, the group coordinate with the factory about the appointments of sending the lychee for baking as well as the quantity to be baked. They will prepare the lychee to be carried in each pick-up transportation, which must be the same quantity of each baking time. They have to rent part of the factory's cool store-room to keep the products for year-end sale. They have the marketing plan to coordinate with the Women's Cooperative Product Development Center, to arrange packaging of baked dry lychee into the baskets of New Year's presents for sale.

Working Management

The members of this group of baking dry lychee, explain the reasons and needs to join together in this business enterprise that, they faced the problems of falling price, oversupply, no market, short life of fresh lychee. The lychee fruit skin change from red to brown or darken, which is not attractive to buy, so it is wasted rotten. They would like to preserve and modify into other kind of lychee production to be kept longer. The benefits to be received from cooperating together doing the baked dry lychee will help keeping lychee for a longer time, selling at a better price. In working together, they have to help each other in planning the business, making schedules and process of working, and help in working.

Transporting the lychee to the factory should be fully packed up worthing the expenses. Upon their unloading the new lychee for baking, if the factory has any baked dry lychee finished they could bring it back at the same time. That is sending the lychee and bringing the baked dry lychee back by one same trip.

The best way to keep the baked dry lychee is to keep in the cool store-room. There are companies in Chiangrai and Chiangmai provinces, which have the cool store-rooms for rent. They calculate the cost according to the numbers and quantity to be kept which is at thousand kilograms. Therefore renting separately, each person will not have enough lychee. And the renting of each cool store-room is not worth the cost of rent too.

"Good management can help lessening the expenses,
Group working can help increasing the power to negotiate."

Building up Network

In the case of joining up working as a group, sometimes there are not enough lychee for each baking. There should be contact with other groups to increase the quantity for each baking, because either in baking or renting the cool store-room, etc. there should be enough quantity of lychee to be worthy for the expenses. Networking of groups can work together, can help solving the marketing problems e.g. if customers who used to order baked dry lychee, request for a big order and the group does not have enough products, we can seek from other groups to fulfill the order. We will not lose the customer, but we get other groups of friends who could share some orders and the market in the future with us.

Public Relations

The best and cheapest way to do public relations is to bring the baked dry lychee to people for tasting and selling; take the sample products to present to various shops especially the shops selling natural products, the shops which have middle and high class customers like 'Doy-Kham' shops, Royal Project's shops, 'Suwanna-Chad' shops, and, the shops in the airports. In the beginning, the products should be exposed at selling booth in festival celebrations, or products' exposition programs. Try to expose the product as much as possible, encourage people to taste, and request for the customers' criticizing opinions on taste and flavor that should be improved and developed. Should arrange in nice package and put in the basket as presents to offer to the leaders in the locality as well as those of other organizations. They can help doing the public relations for the us. The most important thing is the product, or the baked dry lychee itself, is the best thing for doing the public relations, If the product is good, delicious, it will be well-accepted and propagated from mouth to mouth.

Karen Hill Tribe's Original Design Weaving

Every hill tribe has a way of living different from those in low land. As result of development or by convenient communication and the culture of original way of living, the hill tribe lives a peaceful way of life, solitude and modest. Each hill tribe has their own specific traditional dresses and dressing, which expresses their culture and status. They do weaving for their family clothing, which can save their family expenses too.

The Karen hill tribe has their primitive way of weaving since long time ago. Every Karen woman must be able to weave for her family. At every New Year Festival every member of the family must have a new traditional dress to wear. That's why the Karen women in every family are able to weave. Although at present, some clothing are bought from town, but they still do weaving in every family. In their free time, they weave not only for their own family, but for selling to tourists also. They have not yet joined together in group, because most of the cloth cannot be sold, due to its narrow width which is hard to make a dress. Selling cloth by pieces to tourists is difficult. Most tourists, either Thai or foreigners, prefer to buy ready-made or ready-to-wear dresses, as the cost of dress-making is quite high.

Facing such problem, there are 5 Karen women in Ban-Mae-Ka-Piang, skillful in weaving and a group of 3 young girls who has been trained in dress-making from the Chiangmai Hill Tribes' Welfare Centre. They have the idea that they should group up to produce Karen's original design woven cloth for sale as an additional income generating business for their families. They should modify or transform the products from the original or original design into modern design in order to meet with the needs of the market i.e. the customers from the town, or the Thai as well as foreign tourists. Two representatives of the group went to the Night Bazaar in Chiangmai, to buy various products made-of cloth such as bags, pillow case, belt, etc. - to be used as sample pattern using Karen woven cloth. The market in town has demand for hill tribes' products as they are of specific native characteristics of each hill tribe.

After the 2 representatives returned from buying the sample products in town,the group met together in order to discuss about the products to be produced. They appointed one of the member, Mrs. Nor-Wa who used to be employed as a dress-maker in Chiangmai, to the President of their group. Mrs. Nor-Wa has been selected because she is knowledgeable, having the leadership quality, and, is well-accepted in the community. They appointed Mrs. Nor-Kher as the Treasurer, to keep the accounts of their group, as she completed junior high school from the Non-formal Education Centre. They also agreed to invite Mrs.Vilai, an 'Achan' = a teacher teaching at the school in their village. Achan Vilai is interested in Karen's weaving, and has the understanding of the product innovation for their woven cloth. She accepted to be an Advisor to the group. She brought all the eight members to expose themselves to the work of the Northern Industrial Promotion Centre, in Chiangmai. They were able to study other groups' products and made a tour at the Night Bazaar, to conceive the ideas and skills to apply further in their production.

Achan Vilai helped requesting for a budget from the Chiangmai Hill Tribes' Welfare Centre, in organizing a Training on Modifying & Transforming the Karen Woven Cloth Products, for the members. They were able to develop the skills and concepts in modifying and transforming their products. They also invited trainers from the Women's Cooperative Product Development Centre, to join in their monthly meeting, to discuss about marketing, seeking raw-materials from within the community, and the tools and supplies for the members,. At the same time, they also studied together the strong point and weak point of their Karen's original weaving.

SWOT Analysis on Karen's Original Weaving

From the analysis, it is found that they have the strong point that every Karen hill tribe woman can do the weaving. They have the working experience and the skills to weave. There are cotton plants growing in their village, and their woven cloth has the specific characteristics of their own. Besides, at present is in the prime time that the government helps promoting in marketing. The group contacted the Women's Cooperative Product Development Center, of the Credit Union League of Thailand, Ltd. to send their products for sale at the Women's Cooperative Product Development Center. They also requested the Woment's Cooperative Product Development Centre to assist in designing, and coordinate to seek markets for make-to-order, or make-to-stock systems.

Products

From the groups' meeting, they agreed to work together producing Karen woven cloth products for sale in order to be the additional income for the family. They will sell their products to the Women's Cooperative Product Development Center, where their Karen woven cloth will be made into 'Kang-Keng-Lay' = easy-to-wear pants, as well as 'Kra-Prong-Pai' = easy-to- wear skirt. And, the 'Med-Deoui' (= Job's Tears) seed embroided cloth is modified or transformed into various design of cushion case, and bags.

Working Capital

The members of this weaving group are women, and are members of the Ban Mae-Ka-Piang Credit Union also. In the beginning, each member put down 1,000 baht capital, totalling 8,000 baht. But, they needed to have a sum of 40,000 baht to do the business. Therefore, they discussed with the Credit Union Committee and applied for a loan. Their loan application was approved, and they were given an amount of 32,000 baht loan to be returned monthly within 2 years. They used 25,000 baht to buy one industrial sewing machine, 8,000 baht for two ordinary sewing machines, and, kept the balance as revolving capital for raw materials.

Production

Production Management - Usually, the housewife group do the weaving after work in the evening or when they have free time. Most of them do not care to consider the wages or the cost for working hours in weaving, because they take it as doing something in their free time.

The group members, therefore, held a meeting to discuss and set up clearly the days and hours of weaving and sewing. They agreed to have 5 members, who are capable in weaving, to do only the weaving. And the rest 3 members, who are capable in sewing, to do only the sewing. They agreed to come to work together 3 days a week i.e. on Monday, Wednesday, and Friday, so that, the products would be enough for the need of the market. In having such clear job distribution, the production would be effective, facilitating rapidness and expertise. The first product they chose to produce was the 'Med-Deoui' (Job's tears) seed embroided cushion case.

For marketing, the group agreed to coordinate with other organizations to send their products for sale:-

1. Coordinating with the Office of Mae-Sa Waterfall and National Park, to rent a selling booth.

2. Coordinating with the Micro Economic Development Project, to seek out selling channels which the Project has coordinated in marketing with the Women's Cooperative Product Development Center, who will bring their group products to sell at the Women's Cooperative Product Development Center.

In selling, they set up both the wholesale and retail prices according to the order. Mrs. Nor-Kher, the Treasurer of the group, is to be responsible for keeping the Receipts and Disbursement Accounts, finance, as well as the stock and the list of orders. Mrs. Nor-Wa, the President, is the supervisor, and has to approve before any disbursement can be made.

In setting the prices, there must be method to caculate and consider if the set prices are appropriate to each product or not.

Setting up Wholesale and Retail Prices

1. Retail Price The group agreed to sell the cushion case at 180 baht each, according to the calculation. For relail selling, less pieces can be sold, the profit should therefore be added more.

2. Wholesale Price It is a selling according to Order. The set price is 105 baht each, and, there must be at least 20 pieces for each order. Selling in big numbers, the profit per piece needs not be the same as in retail price. Because the more pieces are sold, the more profit are gained.

Establishing the management system of the group - There were agreement among themselves to be used as guidelines in setting up the management system of their group, so as to facilitate highest efficiency and benefit to the group, i.e.

1. Management in working system - Every member comes to work together 3 days a week, on Monday, Wednesday and Friday. The working day and date, and the working hours must be recorded by each member every time. If any member could not come to work on any working day, she has to come on other day instead.

2. Production Process - Upon completing the product, they have to do the 'quality control' to sort out only the perfect quality product to be accepted for sale. Generally, the quality production, such as, the embroidering of the 'Med-Deoui', the sewing stitches, and the standard of the product, e.g. the width and the length, as well as the the cut or the shape must not be distorted or differed from the standard pattern.

3. Every member must participate in marketing work. Each of them has to take 1-day turn to sell at their booth at the Mae-Sa Waterfall.

4. For the stability and the sustainability of the group, at least 10% of the profit will be reserved as the group's capital for expenses and development of the group.

This is a type of cooperation, working as a group, especially this women of this group are members of Ban Mae-Ka-Piang Cooperative Credit Union, Ltd., which is 1 of the 30 cooperative credit unions promoted to be organized in the high lands by the Micro Economic Development Project. They also get united among themselve as the Network of High Land Credit Unions, in order to facilitate easier coordination with other credit uions, and bring about benefits to their various business enterprises as well.

In summary, there will be more sources, or more options in the operation of their business enterprises. If some group has received many big orders, which they cannot cope up on time of delivery, they can share with other member group of the Network - then, they will be able to deliver the addiquate products to their customers on time. They will not lose any customer, and at the same time, it is a sharing of income to their alliance group, who may also share the future marketing opportunities to them.

Public Relations

In doing the public relations, it must be started from the producers themselves, i.e. they should wear their own woven materials in order to conserve the culture and the identity of their hill tribe to be of interest and prominence to other people always. They should use the products which they produce. And, in the beginning of producing any product, they should bring them to expose at the selling booth in festival celebrations or products' expositions, so as to show up the new products, and accept whatever criticized or admired to the products, which will be helpful in improving and developing the products further. In giving the products as the offering gifts or journey gifts, is also a way of public relations

Appendix Two: Credit Union

Cooperative Credit Union

Cooperative Credit Union is in the type Thrift and Loan Cooperative Society, according to the B.E. 2521 Registry Declaration. There was an announcement on September 21, B.E.2521 (= A.D. 1978) about establishing credit union cooperative in the communities. The organizers should be the people living or relating in the same community i.e. living in the same community or village, or working in the same factory, company, school or college, etc. And, they must have the will to help each other, by saving their money together as their common fund. Every member should save their money according to their capability, and must be consistent and regular. Each cooperative may set up savings by weekly, or fortnightly, or monthly. After at least 6 months, the common fund - the Share Capital should have increased, and somehow become the working capital ready to help their needy members. In assisting their needy members, appropriate amount of loans will be approved and given to them to solve their problems and troubles. Then, the loans have to returned by installments, while the savings have to be continued. The loans oustanding would decrease, while the savings would increase. Thus, the credit union cooperative is actually working like a bank of the members, because it is where every member can save the money, get loans at the time facing problems, or in troubles, and if a member wants to manage the cooperative, one may propose oneself to fellow members for the election. If elected a director or committee member, there will be the duties and responsibilities in setting up the policies, targets, and plans of action, to serve the needs of all members. Therefore, the credit union cooperative genuinely belongs to the members, is managed and controlled by the members executing every operation efficiently aiming the most benefits for the members.

General policies of credit union cooperatives

In carrying out the objectives of credit union cooperative, there are general policies to perform in various activities as follows:-

1. To promote the development of person, family, and general society.
2. To promote the development of members' occupations.
3. To promote the practical knowledge of doing-it-themselves according to the democratic principles.
4. To promote the members' thrifty behaviour', by practically educating them on how to divide and arrange their income for their stability, as well as common good, through saving regularly.
5. To facilitate acccepting 'Deposits' from their members, and seek funds for the operation of their objectives, and loan services for production investment as well as family welfare.
6. To arrange welfare activities for the members, protecting, maintaining the rights, and keeping the benefits of the members.
7. To do any activities, try in every possible way, to achieve the success of the objectives of the cooperative, which is not against the principles and the laws of the country.

Activities in credit union cooperative

Savings

Every member saves acccording to one's capability, but consistently and regularly as promised when applied for membership. This savings is taken as the Share Savings, which a member can withdraw only at the time of resignation from membership. At the end of fiscal year, every member will receive a reward the 'Dividen' at the rate not exceeding what the law has stipulated, if there are profit in their operation.

Besides, if the surplus any member has, can be deposited in the cooperative, which is a type of savings called 'Deposit Account'. It can be withdrawn, and will receive a fair rate of interest like depositing in other financial institutions.

Lending

When any member, who has the need or faces any trouble, can apply for loan from the cooperative. The purpose of loan can be for needed expenses, alleviating troubles, investing for better income, etc. The amount of loan is according to the need, the responsibility proofed through saving behaviour, and, the capability to return the loan. The loan interest is in a fair rate. There are 3 types of loan, as following:-

1. Emergency Loan - is given to ease out the emergency trouble e.g. accident, transportation, medical expense, etc. The amount of loan varies from cooperative to cooperative, according to the opinion of the committee of the cooperative to set up. No guarantor is needed for emergency loan. It can be returned in one time or by installments. The regulation of general credit union cooperative set up the duration of 60 days for repayment of this type of loan.
2. Regular Loan - is given for production investment, liberating from debts, for fixing or extending house-construction, etc. Usually, the amount of this type of loan is the same amount of the member's share-savings. The guarantee for the loan can be the applyingmember's fellow member, or a collatoral. The duration for repayment is acccording to the regulation of each cooperative, which is within 60 months.
3. Special Loan - is given to member whose need is high. The cooperative is in the secure position, and has much surplus, can open this service of special loan. The purposes can be the same as the regular loan, but higher amount of loan given. There must be collatoral to guarantee this type of loan. The duration for repayment is longer than Regular Loan.

Management structure of credit union cooperative

Credit union cooperative is managed by the members, i.e. the members are the ones who elect 2 sets of representatives from their general assembly. The first set not exceeding 15 persons, is the Board of Directors, to manage the operation of the cooperative. And, the second set not exceeding 5 persons, is the Supervosory Committee. Both sets, work as volunteers. And, they will take turn to leave the positions according to the regulations of the cooperative.

The Board of Directors is the main management body of the cooperative. They divide themselves into 3 Committees, i.e.

1. Executive Committee

- To control and supervise the receipts and disbursements, and, take care of the finance according to the regulation of the cooperative.

- To control and keep all the accounting and other documents according to the regulation.

- And, to suggest to Board of Directors, the proposals on policies, rules or regulations which should be improved.

2. Credit Committee

- To consider the applications of emergency, and regular loan.

- To control appropriate guarantee for the loan.

- To supervise the loan repayment, and to follow up loan delinquency.

3. Education Committee

- To educate the members about the principles and method of cooperative, savings, and prudent spending of money.

- To propagate, and continuously do the public relations on the consequences of the cooperative to the members as well as other people.

Beside having the Board of Directors for the management of the cooperative, there is the Supervisory Committee elected directly, 3 - 5 persons, from and by the members. The Supervisory Committee can be in office for only one year. They are to work liberately supervising all the work of the Board of Directors, including the finance, the accounting, the management, and all the activities of the cooperative, according to the regulations, the plan of action and the budget approved by the Annual General Assembly of the members.

How to get organized?

Upon agreement to get organized, they have to try to search for the right principles, so that the organizing will be effective. The certain thing is to cut off completely the selfishness, start to look around paying attention to their neighbours, colleagues, and friends. These people are prestigeous and honorable human beings, having the similar problems, troubles, and disasters like each of them. Everybody realize they should not live alone, but rather seek the best way to get orgainzed.

Everybody has the same objective: 'Get organized'. They look around, left and right, back and front, there are neighbours, colleagues, etc., who identically think the same on "How shall we get together organizing to help each other?" It can be noticed that the force of selfishness, which was used to have when living alone, has developed from oneself towards one's friend, seeking friends to get organized.

The force which is driven out of oneself is the force of 'giving'. It is the power derived from the quality of mercifulness and kindness. The sincerity in wishing all friends the happiness, and, the readiness to share with everyone the happiness and prosperity, are from the force of mercifulness principle, while the kindness principle empowers the will wishing to help other people to escape from the troubles. Whenever they think of the sufferings or troubles, which may happen to their friends or whosover or whatsoever their friends love, they will be anxious to worry about the life, the living, properties, etc. They will try to seek out ways to solve alleviating such problems or troubles of their friends as if it is happening to themselves. It is a giving which expects no compensation. It is like the parents' kind-hearted love, which mercifully love their children innocently always.

The main objective of credit union cooperative is the development of humanity through education, in order to essentially develop oneself, and fellow members as well. The services for savings, giving loans, and doing other activities, are the minor objectives, which are actually used as the means for members to come to meet, and discuss together always. The more they meet, the more they have activities to help each others, and thus, increase the stability of their group.

How to organize a credit union?

1^st Step Gather together the persons who are interest

Make a survey for interested persons and gather together 30 - 50 persons or more. There should be close relationship among the interest persons in some way, such as, having the same occupation, living in the same village or community, working together in the same office, etc.

2^nd Step Study the principles and method of management of credit union cooperative

Study the principles and method of management of credit uion cooperative until it is well-understood, in order to know the ways to solve any problems which may happen in the future. Besides, the needed documentation for the starting up should be prepared. The Credit Union League of Thailand, Ltd., or the nearby credit union cooperative can help in this matters.

3^rd Step Invite the presence of the respectable persons in the community

The respectable persons in the community, e.g. the 'Kamnan' (elected official in charge of the sub-district), the village headman, the headmaster, etc., can help supporting in publicizing or extending the knowledge on credit union cooperative. Until it is found that most people could understand, the meeting of interested persons will be organized.

4^th Step Organize a preparatory meeting to draft the principles, the rules and regulations, and to establish the savings group

Set the appropriate date, time, and place to hold the meeting of all interested persons, to explain to the participants helping them to understand in depth on the credit union cooperative. The essential principles will be agreed upon, i.e. the member's qualifications, the circle of relationship for membership, the time and place for savings, the name of their group, etc. A temporary working committee should be set up to publicize, do the public relations, keep the accountings, and prepare various activities. The working committee can consult with the Credit Union League of Thailand, Ltd., or the credit uion cooperative closeby. In the meantime, the members can start their savings practice. They should save together at least 3 months.

5^th Step Organization meeting of credit union

After the 3-month operation, all the members will meet together again to pass the resolution to establish the credit union. The members will be elect a temporary Board of Directors, composing of 9 - 15 members, and a Supervisory Committee, composing of 3 - 5 members. Upon the establishment of the credit union, there should be a formal notification to the Credit Union League of Thailand, Ltd. Then, the Credit Union League of Thailand, Ltd. Will send personnels to assist, or advise in their credit union operation.

How to apply for membership?

The person who wish to apply for membership of credit uion cooperative, has to fill in the application form for membership, and present to the credit union cooperative together with the necessary personal documents. An amount of entrance fee should be paid according to the regulation of the cooperative, together with the first share-savings.

Steps of Membership Application

What to get for being a member?

1. Being a person who knows how to be thrifty, and how to save the money

The credit union cooperative is established and has the office within the community. The members, therefore, can save conveniently, and promptly. They do not have to travel far away to save or deposit their money. No matter how big or small the amount of money is, the members can save, or deposit in their credit union cooperative.

2. Help solving money problems

Whenever a member has any troubles, or is in need of money to spend, the member has the right to borrow from the credit union cooperative at the fair rate of interest. The amount of loan, which a member can borrow is according to the need, the trouble, the capability to return, and the member's share-savings.

3. Building up the stability for the members and their families

Each credit union cooperative has various service activities according to the needs of the members, and the working capital the credit union cooperative has. For example, the loan protection program, and the life savings program, are the services which can help promoting the stability for the members and their families.

4. Potentiality to develop the community and the society

The activities of credit union cooperative can help the people in the community to learn to be thrifty, and save their money, to set up common fund in the community for assisting and alleviating the troubles. It can help the members to understand about the possible ways to improve any problems faced, and decide to help each other in their own community. It is also an efficient place to train leaders for the community at large.

The virtues and the spiritualities in credit union cooperative

Most credit union cooperative organized in rural communities, or among the poor or disadvantaged people living in towns, have a lot of problems in their communities e.g. the problems of selfishness, or poverty, or sickness, or lacking education, yet they were able to overcome themselves and get organized into credit union cooperatives. They can manage their operation, and was able to use their credit union cooperative as the 'means' to alleviate their troubles utilizing:-

The 4 spiritualities and the 5 virtues, are the essential principles, which should significantly be well-observed by each and every member, committee member, and director. They should be determined on these principles, always hold on, or refer to in practice, in order to help their getting organized together in 'credit union cooperative' to reach their final objective of living well - having the needed things and healthy life.

These virtues should be conveyed through the pre-membership education, and put into practice according to the process of credit union. Upon consideration that there is enough understanding and qualification, the approval for accepting in as a member of the credit union cooperative can then be made.

Comparison between credit union cooperative and other financial institutions

Appendix Three: Team Work