What is the cooperative movement?

Understanding the Cooperative Movement

At the heart of the cooperative movement is a set of principles that drive cooperative entities’ functioning and the manner in which they interact with the larger economy and society. These principles include voluntary and open membership, democratic member control, member economic participation, autonomy and independence, education, training and information, cooperation among cooperatives, and concern for the community.

In a cooperative, every member has an equal say and shares equally in the risks and benefits. Each member, regardless of their financial contribution, has one vote, embodying the cooperative’s democratic ethos. This equitable form of decision-making sets cooperatives apart from traditional for-profit companies, where decision-making power often resides with those who hold the most shares.

In this ecosystem, cooperation and mutual support are pivotal. Cooperatives help each other through knowledge and resource sharing, networking, and collaboration on shared objectives. This creates an interdependent and mutually reinforcing web of entities that support and strengthen each other, contributing to a resilient cooperative movement.

Benefits and Impact of the Cooperative Ecosystem

The cooperative ecosystem has significant social, economic, and environmental impacts. Cooperatives create sustainable jobs, contribute to local economic growth, and promote social inclusion. They help bridge income and wealth gaps and stimulate economic activity, especially in underserved communities.

Moreover, cooperatives operate with a long-term perspective and aim for sustainable development. They emphasize environmental sustainability, community development, and high-quality services over short-term profit. By doing so, they contribute to the United Nations Sustainable Development Goals, aligning economic activity with social responsibility.

Cooperative employment in Europe

This graph presents the minimum number of people employed in cooperatives across EU Member States, based on the 2024 Euricse and CIRIEC report. The Netherlands and Malta are missing data. The reported total of 3.3 million employees reflects the minimum employment level in the social economy, and the true number could be higher.

Number of people employed in cooperatives (2024):

Sectorial organisation

Cooperatives operate in a wide range of sectors, reflecting their diverse purposes and the vast range of human needs they can address. Here are some of the most common sectors in which cooperatives are found:

1. 1. Agriculture: Agricultural cooperatives include farmer coops that provide their members with access to markets, help negotiate better prices, and often provide inputs like seeds and fertilizer. Dairy and fruit/vegetable cooperatives are also common.
   2. Financial Services: This sector includes credit unions and cooperative banks that provide member-focused financial services, often in communities underserved by traditional banks. They offer services such as savings accounts, loans, and insurance products.
   3. Retail: Retail cooperatives can range from small community coops selling local products to large entities like consumer food cooperatives. They focus on serving their members with high-quality products, often emphasizing fair trade and organic produce.
   4. Housing: Housing cooperatives offer an affordable alternative to home ownership. Members own a share in the cooperative, which owns residential property. The cooperative structure can also promote community and shared responsibility.
   5. Healthcare: Health cooperatives can be owned by healthcare providers (such as doctor or nurse cooperatives) or by patients (health consumer cooperatives). They focus on delivering high-quality care tailored to their members’ needs.
   6. Energy: Energy cooperatives can be involved in the production and distribution of renewable energy, providing an alternative to traditional energy companies and promoting sustainability
   7. Worker Cooperatives: In these cooperatives, the employees are the owners. This can promote job security, fair wages, and a democratic work environment.

and many more in Arts and Culture, Tourism, Childcare, Elderly Care, Disability Services, Forestry, Fishing, Legal Services, Manufacturing, Mining, Real Estate, Social Services, Technology, Transportation, Waste Management, Water Services, Funeral Services, Sports and Recreation, Research and Development, Marketing and Communications.

How cooperatives are building a better world and what is the role of the International Cooperative Alliance?

International recognition of the cooperative movement

The cooperative movement enjoys global recognition and support, allowing it to participate in crucial policy discussions and advocate for cooperatives worldwide.  

Global initiatives to support the recognition of the cooperative movement:

• COPAC
  The ICA is a founding member of the Committee for the Promotion and Advancement of Cooperatives (COPAC). COPAC is a multi-stakeholder partnership of global public and private international institutions that champion and support cooperatives. It plays a crucial role in promoting the cooperative business model, sharing knowledge, and advocating for policies that enable cooperatives to thrive. COPAC ensures that the cooperative movement has a voice in international forums and contributes to sustainable development goals.
   
• United Nations Economic and Social Council
  The ICA has held a seat at the United Nations Economic and Social Council (ECOSOC) since 1946. This consultative status provides cooperatives with a platform to influence global policies, advocate for their interests, and contribute to sustainable development goals.

• ILO Cooperative Social and Solidarity Economy Unit
  The ILO Cooperative Social and Solidarity Economy Unit promotes cooperative development and supports policies that strengthen the social and solidarity economy globally.

• ILO Recommendation 193
  Adopted on 21 June 2002 by most countries worldwide, including all 28 EU Member States, ILO Recommendation 193 highlights the global commitment to promoting cooperatives.
   
• International Year of Cooperatives 2012
  The United Nations declared 2012 as the International Year of Cooperatives, significantly increasing awareness and leading to numerous legislative and publicity initiatives globally.

• International Year of Cooperatives 2025: 
  In June 2024 the UN declared 2025 as the second International Year of cooperatives. 

At the EU level
The EU has been actively involved in promoting cooperatives, thanks to targeted advocacy efforts. This involvement includes various legislative and policy initiatives aimed at supporting and recognising the role of cooperatives in economic development and sustainability. Examples include the Statue for a European Cooperative Society (2003), and the inclusion of cooperatives in the Social Economy Action Plan (2021), among others.