Cooperatives can help boost troubled economies
The recent financial crisis has highlighted the effectiveness of cooperatives, in all their shapes and forms, to create resilient communities that offer better wealth distribution while supporting employment and socioeconomic development. Until recently, the concept of cooperatives had been overlooked by policymakers and governments, but the tide has been turning thanks to growing awareness, social networks and palpable benefits. The EU-funded project INT.RE.COOP (International research exchange on cooperatives) helped cooperatives improve their visibility and highlighted their success. A team of 23 project researchers investigated cooperatives in Europe (Belgium, Italy, Serbia and Spain) and around the world (Argentina, Armenia, Chile and Mexico). To achieve its aims, the project team mapped cooperatives in concerned countries, documenting their size, legal framework, support measures, sectors of engagement and barriers to development. It helped articulate effective indicators needed to evaluate the economic and social impacts that cooperatives offer, in addition to exploring their potential in relation to the economy and government policy. This also involved studying the governmental, legal and organisational elements of cooperatives in the west, particularly in North America and the EU. Contrary to the west, in ex-Soviet states cooperatives are now considered relics of the old Soviet regime rather than being recognised for their full potential. On the other hand, while cooperatives are popular in some Latin American nations, they face many challenges. The project team investigated how cooperatives in all these contexts could benefit different sectors and economic factors, such as in the supply of public utilities, development of employment opportunities, community building, agriculture and credit arrangements. The results were highlighted in two conferences, with one dedicated to better agricultural development in Armenia and the other on new strategies for understanding, creating and managing cooperatives. This helped fill the knowledge gap on cooperatives and furthered social sciences related to the topic, with findings and conclusions that apply to different regions of the world. Lastly, INT.RE.COOP outlined recommendations for policymakers, governments, cooperatives themselves and international donors. Through the project’s Armenian partner, the government of Armenia has already taken steps to facilitate the growth of promising cooperatives. Hopefully, more countries will soon follow suit.
