The United Nations has named 2012 the International Year of the Co-op and it has us thinking plenty about the cooperative model. Co-ops are the fastest growing socio-economic movement in the world, with approximately 10 000 cooperatives and credit unions in Canada alone providing products and services to 18 million members!
The simple definition of a cooperative is ‘an enterprise that is owned and democratically controlled by its members’. Co-ops empower individuals and encourage healthier and stronger communities by enabling people to pool their resources and share risks. Cooperatives exist in virtually every sector of the economy including agriculture, financial services, and housing. Among many many others, Hamilton has a car sharing cooperative and a developing renewable energy co-op, and the Canadian Co-operative Association (formerly the Co-operative Union of Canada), the first national association for the Canadian co-op sector, was actually founded in our fine city in 1909!
- The survival rate of co-ops is higher than that of traditional businesses. A 2008 study in Quebec, for example, found that 62 percent of new co-ops are still operating after five years, compared with 35 percent for other new businesses.
- The cooperative sector keeps dollars circulating within the local economy, provides secure employment and is a means to revitalize and sustain healthy communities.
- Food co-ops create win-win relationships along the supply chain in an otherwise antagonistic agro-food industry.
- Cooperatives use the one member/one vote system (not the one-vote-per-share system used by most businesses) which helps the cooperative serve common needs rather than the needs of a handful of individuals and ensures that people, not capital, control the organization.