Co-operatives

Working with co-operatives

Co-operatives, credit unions, and other forms of self-help organisations are an important part of the world economy. The United Nations has estimated that the livelihood of nearly three billion people, or half of the world's population, is made secure by co-operative enterprise. Co-operatives directly employ an estimated 100 million workers, more than all the world’s multinational companies. They play a particularly important role in developing countries where they can provide goods, services and employment for people not catered for by either the state or private business.

Because of their importance, DFID undertakes a range of work to foster and encourage the co-operative sectors of developing countries. We work with specific co-operatives, offering aid and assistance. And we work with governments and regulatory bodies to make setting up and running co-operatives easier.

Definition

A co-operative is an independent enterprise, promoted, owned and controlled by its members. Whereas companies and corporations are obliged to focus on profit, co-operatives are more likely to focus on providing benefits to their members and the wider community.

Co-operatives are active in markets around the world at local, national and even global levels. Many co-operatives help to reduce poverty by offering economic opportunities to people at the margins of the mainstream economy. Co-operatives can:

• help small producers to access markets
• promote savings, credit and banking services to people who otherwise couldn't access them
• reduce people's vulnerability and promote security by offering insurance at very local levels
• provide important goods and services not provided by the state – including health, education, water and housing.

DFID has published a 'How to' note with advice on working with co-operatives in developing countries - How to work with Co-operatives.