Dec 19, 2009 - 04:30 AM

By Jillian Follert

OSHAWA -- The recession has made credit tough to come by for many Canadians, but in developing countries, it is often out of reach no matter what the state of the economy.

Dave Sitaram, an Oshawa resident who has travelled the world helping to establish credit unions, says isolated rural areas typically don't have banks at all, and women -- especially single women -- often aren't eligible for credit even if they do make the trek to the big city.

"There are women who have lost their husbands to AIDS or in natural disasters. They are alone and trying to start a business or put their children in school, or just buy some chickens and goats," explained Mr. Sitaram, a director with the Canadian Co-operative Association and vice-president of the Autoworkers Community Credit Union in Oshawa. "Giving them access to a loan can change their lives."â?¨ On Jan. 8, Mr. Sitaram and several other members of the CCA will travel to Malawi in southeast Africa, where they will offer Canadian expertise to help credit unions operate better.

The CCA promotes and helps develop co-operatives and credit unions in Canada and more than 40 countries around the world. It represents nine million co-op and credit union members from more than 2,000 organizations.

A co-op is an organization owned by the members who use its services. They can provide virtually any product -- from groceries to funeral services -- and can be non-profit or for-profit. A credit union is a co-op that provides financial services, similar to a bank.

Mr. Sitaram said a sense of ownership is what sets credit unions apart from traditional banks, especially in the developing world.

"They become the centrepiece of a community, people have so much pride in them," he said. "And for that reason, the delinquency rate on loans is very, very low."

During the Malawi trip, Mr. Sitaram and his group will share Canadian concepts, such as having a board of directors provide leadership for credit unions.

"We don't say 'this is the way to do it,' we integrate our expertise with their culture," he said.

While there is much to teach people in developing countries about co-ops and credit unions, Mr. Sitaram said Canadians need more education, too.

He got involved with the Autoworkers Community Credit Union because he worked at General Motors, but says many Durham residents have no idea what the downtown Oshawa building is -- they often ask if it's "some kind of bank" -- and don't realize membership is open to anyone living or working in Durham.

Likewise, he said many people outside the western provinces, where agricultural co-ops are more common, aren't familiar with the thousands of co-ops operating across the country.

To learn more, visit www.coopscanada.coop.