Co-operative enterprise remains strong in times of crisis is this year’s theme for International Co-operative Day on 6 July.
A statement released by the International Co-operative Alliance to celebrate the 91st Day says the co-operative business model has demonstrated that it is resilient in times of crisis compared to investor-owned models that suffer from a crisis of unsustainability in economic, social and environmental terms.
The day is also celebrated by the United Nations as the 19th International Day of Co-operatives.
The ICA’s statement, which is also available in French and Spanish, said: “The financial crisis was an epic example of the perils of valuing short term gain over longer term viability. The global crises we have faced derive from a business model that puts financial return ahead of human need; a model that seeks to privatise gains and yet socialise loses. There is considerable evidence that a diversity of ownership models contributes to a more stable financial sector as a whole.
“By placing human need at their core, co-operatives respond to today’s crises of sustainability and deliver a distinctive form of “shared value.” Furthermore the co-operative model does not fall victim to the lure that has afflicted capitalism for more than twenty years in which financial performance is the central indicator of good business. Quite simply a co-operative is a collective pursuit of sustainability for it seeks to “optimise” outcomes for a range of stakeholders without seeking to maximize the benefit for any one stakeholder.
This also means that as times become more difficult the entire workforce is viewed as vital to the well-being of the co-operative, not just a few people at the top.”
The statement added that another area in which the global public has been buffeted is in the practices and ultimately the closing of many big banks. It read: “What were considered venerable institutions safe for investment and deposits too often have been shown to be weak and poorly run. Financial co-operatives however have often fared far better.
“Savings and credit co-operatives, co-operative banks and credit unions have grown; kept credit flowing especially to small and medium sized enterprises, and remained stable across regions while indirectly creating employment.
“It is their unique combination of member ownership, control and benefit that is at the heart of their resilience and that provides a series of advantages over its competitors. With financial co-operatives representing an astonishingly large slice of the global banking market, it is important to better understand the model.”
In closing the statement, the ICA said the “social dimension” of co-operatives should not be overlooked: “As economies shrink and pressure is put on governments to reduce social benefits, co-operatives often provide an invaluable lifeline. In short co-operatives contribute to the social capital in ways that investor owned businesses do not. Co-operatives may also be critical in delivering services such as health care centres that would otherwise come from private insurance or the state or may not be provided at all as state budgets shrink.
“And of course one should not overlook a key benefit of consumer co-operatives: the ability to offer the public lower costs for food and other essentials — so vital when consumers’ paychecks are shrinking or they have none.”
• To view the full statement, click here. If you are translating the message for your language, please email a copy to huckerby@ica.coop. To find out how to promote your activity for the Day, click here.
