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This is the message being given in Geneva by the
International Co-operative Alliance (ICA), an
independent, non-governmental organisation which unites,
represents and serves co-operatives worldwide. Founded
in 1895 and consisting of 222 member organizations from
85 countries representing all sectors of the economy,
the ICA plays a large roll in the recovery of the
world-wide economy.
Economists, academics and the international community
are desperate for solutions for how to stimulate a
global recovery, and in doing so are beginning to
question the current economic model which has lost the
confidence of policy-makers as well as the general
public.
They are looking at regulating markets and financial
institutions in particular to ensure a more ethical and
transparent operation. In their quest they are also
rediscovering and recognising the potential of
co-operatives in contributing significantly to a new
economic system. It is in this way that the
co-operatives appear as an alternative to the crisis and
the neoliberal economic model.
Specific Examples
According to a recent study published by the
International Labor Organization (ILO), the
co-operatives are more resilient to shocks than any
other business model, since financial co-operatives have
remained financially sound during the recent downturn.
The same applies to agricultural co-operatives, which in
many parts of the world are making a surplus, as are
consumer co-operatives, which are seeing increasing the
volume of business. Associated work co-operatives also
continue to grow. According to the ILO, more and more
people are choosing the co-operative business model to
respond to new economic realities.
The Importance of the Model
When asked why co-operatives are able to survive and
even thrive in situations of crisis and beyond, the ICA
responds “the company is a co-operative business model
alternative that instead of focusing on profits, focuses
on people, increasing the power of people in the market,
while guiding their operations based on co-operative
values and principles” . In many countries and various
sectors of the world, co-operatives are contributing
significantly to the maintenance and creation of new
jobs and, therefore ensure family income. Many
co-operatives guarantee that prices are kept to
reasonable limits, and consumer goods, retail, food and
services remain safe, reliable and of good quality.
Ethical Values of Co-operatives
“Co-operative financial institutions have seen a capital
influx as consumers recognise the safety and reliability
of credit unions, co-operative banks and cooperative
insurers who in many cases have also continued to
provide credit to individuals and small businesses. By
doing so, they are demonstrating that co-operative
business is sustainable and that enterprises having
ethical values at heart that can be successful and
contribute to sustainable economic recovery”.
The ICA at Geneva welcomed many governments who are
considering the co-operative option in this new economic
environment, either to boost agricultural productivity
or to reorganize the national social protection systems,
as can be seen in the recent discussion of reform of the
health system in the United States and the proposal to
create health co-operatives.
Nevertheless the road is long, and the co-operative
movement will have to convince the politicians in charge
and to guarantee that the specific nature of the
co-operative is clear, which constitutes a challenge for
the promoters of the co-operative that in Switzerland
include companies such as Migros and Coop, among others.
Swisslatin /
(04-07-2009) |
