In recent years the importance of corporate governance (CG) has rising new attention, as the 2008 financial crisis illustrates. Co-operative members, staff, regulators and others stakeholders involved in the co-operative banking business became aware of the need to strengthen co-operatives governance, since this is crucial to safeguarding sound management and, ultimately, to the survival and sustainability of these organizations. With their origins rooted in the 16th century, the Portuguese Agricultural Credit Co-operatives (CCAM) have been considered central players in the economic and social development of rural regions. The goal of this paper is to determine the impact of the different governance mechanisms of co-operative banks on control management, by analysing CCAM governance and assess its efficiency in disciplining management. Hence, using data from 1995-2009 period, and multinomial logit models, the relation between CCAM performance and several control mechanisms operating within the SICAM is analysed. The results show that overall internal governance mechanisms are not related to the CCAM performance, which indicates potential weakness of the CCAM internal control mechanisms. On the other hand, external governance mechanisms are related to CCAM operational and cost efficiency indicators, demonstrating the importance of these mechanisms in disciplining CCAM management. Moreover, the results highlight the value of the supervision task of Central CCAM in the performance of the associates. ; info:eu-repo/semantics/publishedVersion
In recent years the importance of corporate governance (CG) has rising new attention, as the 2008 financial crisis illustrates. Co-operative members, staff, regulators and others stakeholders involved in the co-operative banking business became aware of the need to strengthen co-operatives governance, since this is crucial to safeguarding sound management and, ultimately, to the survival and sustainability of these organizations. With their origins rooted in the 16th century, the Portuguese Agricultural Credit Co-operatives (CCAM) have been considered central players in the economic and social development of rural regions. The goal of this paper is to determine the impact of the different governance mechanisms of co-operative banks on control management, by analysing CCAM governance and assess its efficiency in disciplining management. Hence, using data from 1995-2009 period, and multinomial logit models, the relation between CCAM performance and several control mechanisms operating within the SICAM is analysed. The results show that overall internal governance mechanisms are not related to the CCAM performance, which indicates potential weakness of the CCAM internal control mechanisms. On the other hand, external governance mechanisms are related to CCAM operational and cost efficiency indicators, demonstrating the importance of these mechanisms in disciplining CCAM management. Moreover, the results highlight the value of the supervision task of Central CCAM in the performance of the associates.
Abstract**: Over the last decade, increasing financial problems in the Portuguese Agricultural Credit Cooperatives (ACCs), mainly difficulty in gathering equity, have forced them to pursue an intensive merger activity. This paper describes the economic reasons that have led the ACCs to merge, and analyses the ex post merger impact on their economic performance. The results show that: (a) incorporating ACCs are larger, more profitable and hold a better credit management; (b) incorporated ACCs are smaller, face difficulties in reaching a minimum efficient scale and have weaker credit management as well as leverage problems; and (c) merged ACCs have a heavy administrative cost structure and also face profitability problems. Regarding the mergers' ex post impact on the ACCs performance, we find no positive influence on cost reduction, credit management and solvency ratio.
Over the last decade Portuguese Agricultural Credit Cooperatives (ACCs) have increasingly face survival challenges related to their difficulty in gathering equity. The main source of ACCs equity is the net benefit; thus, understanding how ACCs governance can work on correcting bad economic performance is of crucial importance to overcome this constraint. The main objective of this paper is to describe the governance control mechanisms in the ACCs. Five governance mechanisms are identified: board and chairman change (internal mechanisms), central ACC intervention by an agent or by management board replacement and merger. Empirical analysis proved that the internal governance mechanisms activity is not related to the ACC performance. Additionally: (a) ACCs with a central ACC agent and merged ACCs hold a weaker credit management and a heavy administrative costs structure and profitability problems; and (b) ACCs with a management board replacement by the central ACC hold a weaker credit management and present solvency problems.
Organic farming is a high potential strategic activity for the Portuguese agricultural sector. It generates differentiated value-added products increasingly demanded by consumers, based on environmentally friendly production techniques, thus sustainably managing rural development. Portugal enjoys a renewed interest in organic farming as result of the current economic crisis, the existence of young generations with strong environmental awareness and facing difficulties in finding employment in more traditional activities and the reformed EU agricultural policy backing-up organic farming. However, Portuguese organic farming is far from reaching its potential, showing up a modest weight to agricultural economy. This work aims to contribute to the growth of organic farming in Portugal. To this end it analyses the evolution (1994-2014) and main constraints of Portuguese organic farming, based on statistical data published by Direção Geral de Agricultura e Desenvolvimento Rural and other secondary sources, including academic and industry studies regarding this subject. Portuguese organic farming starts flourishing in the nineties, as the land and number of organic farmers had average annual growth rates above 20% and 40%, respectively. However, recent data show that it lost momentum, being highly dependent of the European Union - EU and national government financial support policy. In Portugal, organic production is concentrated mainly in the regions of Alentejo, Beira Interior and Trás-os-Montes. In 2014, more than 85.5% of livestock breeders and 66.5% of farmers were located in these regions, representing approximately 84% of the total organic farming land. In this year, there were 3,132 farmers dedicated to organic crops, occupying 228,841 hectares, particularly, grasslands and olive trees, and 1,003 livestock breeders, mainly cattle and sheep. In the last decade, the aromatic plants show up a high dynamism among crop production, while for livestock production the highlight is for beekeeping. Nowadays organic production is already present in the main grocery store chains and became widespread in speciality retailers, such as natural and healthy food stores, gourmet food stores and street markets. Nevertheless, the penetration rate in the market is low. In 2014, Portugal was responsible for 2.23% of the EU organic farming land. However, Portugal had a share of only 0.8% of the European organic market (FiBL, 2016). Also, the domestic market share of organic products was the lowest in Europe, accounting for only 0.2% of the national market, due to a low per capita consumption of organic products (€2). Overall Portuguese organic producers refer struggling with production and marketing difficulties as the major barriers their growth (Barrote, n/d; Cabo et al., 2013, 2014; FiBL, 2014; Ribeiro et al., 2014; Simões et al., 2008). Those producers relate having difficulty in buying production factors approved for organic farming and its high price. This is recurring problem. The market demand is undersized, due to the low number of organic producers, which makes unprofitable for commercial companies to develop therapeutic drug products suitable to organic farming. The scarce supply discourages the entry of new organic producers in the business. Furthermore, since organic farming is primarily based on prevention actions, it needs further monitoring by producers, thus rising labour costs. The farmer's marketing competences can define the success or failure of a farm business. This proves to be the main constraint to the expansion of organic production since the market of organic products is yet small and very fragile. Offer is sparse, scattered and does not guarantee regularity in supply, due to the small size of farms and the lack of organization in the production. The lack of specialized marketing channels for organic products and the distance to the main consumer centres withhold producers, particularly, in the case of perishable products. Finally, the high consumer prices are not reflected in the producer prices and also make organic products only accessible to a minority of population. This price barrier, combined with the economic recession, and the lack of information and knowledge by consumers about the advantages of organic products, holds back consumption growth. However, it is possible to highlight success stories able to break this cycle that traps organic production, by focusing on producers organizations to achieve scale, creating their own marketing channels and adopting differentiation strategies, either by developing their product range or by making use of both organic and geographical certification, such as the Montesinho Protected Designation of Origin and Organic Farming honey.
The vast majority of environmental problems derive from human action, by dangerously disrupting the natural activity of the biosphere. However, as ecological problems are piling up also a greater ecological awareness is developing in the world, supported by several Non-Governmental Organizations – NGO. These organizations often lead governments in the creation of funds for the protection of ecosystems and endangered species. In fact, although legal regulations put pressure on governments to adopt greener policies, recent history shows that there is still a long way to go, since the ecological question does not obey merely the legal norms, but mainly to individual and community ethical values. This work examines the environmental crisis in the perspective of a real and global problem, linked to the concept of Sustainable Development – SD. It aims to instigate a greater sensitivity to environmental issues in the decision-making entities, encouraging them to be more involved in the adoption of more sustainable development models. The study relies on a critical review of the literature. To understand how it reached to a saturation point of the environment on a global scale, it highlights the environmental crisis and the awakening of consciences to the principles of SD, the hegemonic development of capitalism and the environmental ethics, in the context of carrying capacity of the planet. The environmental ethics and the planet's carrying capacity At the beginning of the new millennium the indicators show that mankind consumes natural resources 50% more than the Earth can provide. The ecological footprint is twice the 1966 ecological footprint (WWF, 2010), requiring 1.5 planets to satisfy the needs of the current society. A sustainable community is generally defined as one that is able to meet their needs without reducing the related odds for the next generations. The Earth resistance limits clearly indicate that as the consumption of energy accelerates more quickly decreases the real time available for species. Thus, an organism that consumes their livelihood faster than the environment produces them has no chance to survive (Tiezzi 1988). Throughout human evolution, it can be found registers of societies whose criteria to satisfaction of needs have their genesis in the carrying capacity of the environment (Fernandes, 2001), connecting to the cosmos and feeling part of it. In these societies, the man is connected by ties of training and information to land, air, water, plants and animals (Branco 1989). Closely linked to the society development is the concept of 'carrying capacity' expression originally proposed by the ecology, indicating the maximum theoretical density of individuals that the environment can support in the long-term (Odum 1997). This concept is much more complex when related to human societies. In fact, in these societies, the carrying capacity takes on a new dimension to incorporate other elements such as technology, accumulated knowledge and the relationship between social groups (Odum, 1997). It shows how human societies have skills to acquire and incorporate natural resources from other environments or societies (Odum, 1997). So, while poor countries cannot meet their needs with their own resources, technological resources and accumulation of knowledge, the rich countries' lifestyle based on high consumption of resources, energy and technology largely exceeded the carrying capacity of their territories. To satisfy their demand, they import energy, goods and services from poor countries, which mean an extension of the carrying capacity promoted by political, economic and even military mechanisms (Odum, 1997). If, for example, each person wishes to achieve the lifestyle of an American, it would not be possible to accommodate the entire planet's population. Americans represent 4% of world population, but consume 33% of energy and natural resources of the world (Medina, 2010). In the begin of this millennium the developed countries represented less than 25% of the world population, but consuming 75% of all the energy produced, 70% of fuels, 85% of timber and 72% of steel (Kraemer, 2003). This development model requires high rates of rejection of waste and effluents. Therefore, while developed societies perform as a model for all other societies, it rejects the maintenance of the natural system which systematically is destroyed (Medina, 2010). There have been several discourses grounded in ethics and solidarity to deal with the ecological crisis. Arruda (1998) appeals to the logics of the 'solidarity socio-economy', of the 'being' and the 'enough', as opposed to the logic of the 'big', of the 'only has value who owns' and the 'unlimited growth'. Similarly, Fernandes (2001) considers the 'ethics of the necessary', a reflection on what is the quality of life and the individual and social needs and desires, given the physical limits of the Earth, the technological uncertainties and the prospective of reducing inequalities between people. Acselrad (2006) argues that the 'discourse of efficiency' is the dominant model in liberal economies; the remaining ones correspond to alternative proposals to achieve sustainable development, all having the same common denominator – the reduction. Main findings Development is a geographical, vast, dynamic and constantly changing concept. What seems to be transversal to all communities is ensuring an improvement project of life quality. Thus, in every time and place, each social group acquires and adapts the resources according to their beliefs, values, culture, social organization and the dominant economic system. In the last half of the twentieth century, societies assumed the development as a right, and the governments were responsible for achieving it. However, the economic centred models that were adopted resulted in extreme inequalities between world northern and southern countries. Overall, cultural diversity was despised and adjusted to global hegemonic model, turning people into monocultural societies. The ecology radically reproves the rationality of modern society and the prevailing economic ideology, and various thinkers claim that the current capitalist expansion stage will result in further increase in social inequalities, injustices and intense devastation of nature. Even so, the socio-political dynamic continues incompatible with the carrying capacity of the planet, compromising the quality of life of future generations. Therefore, it is necessary to change mentalities and to promote an ethical attitude of respect for nature, as advocated by the world summits, environmental NGO and science, in order to test a new paradigm of social organization.
The economic valuation of environmental goods and services (EVEG&S) results of the increasing concern with the quality of industrial products and the reduction of social welfare. The EVEG&S presents the direct and indirect costs and benefits of quantitative and qualitative environmental changes in goods and services and corresponding impacts. This is particularly important in the valuation of investment projects and governmental policies. This study consists in a survey of environmental appraisal methods, focusing into the hypothetical and complementary market based ones. The review reveals that evaluation of environmental quality is very complex. In fact, for each criterion there are several assumptions that are inapplicable to all situations. Effectively, despite the evident complementarity of conventional goods environmental quality, the values attributed to these resources could be underestimated and complementary and substitute markets can be inefficient parameters.
After 23 years, the APDR's Annual Congress returns to the University of Beira Interior, for positioning intellectual capital and regional development as a key theme for public policies and the agenda of the collaborative community of politicians, entrepreneurs, researchers and citizens interested in promoting endogenous growth, combined with the institutions, systems and new functional and integrative type designs, for promoting symbiosis among economic, social and political agents, in the joint task of (re) designing a new competitive space, at the regional level. In this context, the central theme chosen is of major importance, since it is urgent to expand the ongoing debate on the importance of identifying, monitoring and managing the different components of regional-based intellectual capital, in order to stimulate a structural change in the scope of innovation and development regimes, funded on endogenous growth factors. The 24th APDR Congress aims to address different questions, namely: What are the regional development models applicable in peripheral and low population density economies? How can intellectual capital promote regional development? Are higher education institutions a vehicle that promotes quality of life and innovation at the level of cities? Can services contribute to sustainable regions? How to plan regional space from a perspective of entrepreneurial and innovative ecosystems? How to finance regional planning and development? What transport networks should the trans-European regions have? What should be the new productive specializations in the regions? Can sport be a motor for regional development?
