Women's Cooperatives

Forms and International Outreach

The main types of cooperatives include those of farmers (e.g., in Latin America), wholesalers, and consumers (e.g., in Great Britain or France), as well as insurance, banking and credit (e.g., in the United Kingdom or in the United States), and rural electrification cooperatives (e.g., in China). There has been increasing international collaboration among the various kinds of cooperatives and a growing trend toward the establishment of international cooperative distribution in which people organize for wholesale or retail distribution, usually of agricultural or other staple products.

Traditionally, membership is open, and anyone may buy stock. Goods are sold to the public as well as to members, usually at prevailing market prices, and any surplus above expenses is turned back to the members. Money is saved through direct exchange of goods from producer to consumer.

Producers’ cooperatives are manufacturing and distributive organizations commonly owned and managed by the workers, as in China. Another development in such cooperatives has been the acquisition of failing manufacturing plants by labor unions, which run them on a cooperative basis. Agricultural cooperatives usually involve cooperation in the processing and marketing of products and in the purchase of equipment and supplies, as in Russia or in Israel. Actual ownership of land is usually not affected, and in this way the agricultural cooperative differs from the collective farm. Agricultural cooperatives are often linked with cooperative banks and credit unions, which constitute another important type of cooperative. There is also cooperative activity in insurance, medical services, housing, and other fields.

Fighting Poverty, Improving Lives

Cooperatives enable the state to provide community-based initiatives the necessary support and resources without inhibiting their individual identity. When evaluating economic growth in the context of reducing poverty, inequality, and social justice, cooperatives create direct opportunities for the poor to earn enough to sustain a decent level of living. It is a uniquely appropriate institutional base to reach the poor and involves individuals’ participation in their own development. Case studies in Africa, Latin America, and India show that the cooperative movement can alleviate poverty both by providing the basic needs of the poor and by tackling some of the causes of poverty. It can contribute to solving housing needs, improving access to capital, mobilizing savings, developing women's potential in generating income, and improving health and nutrition. The extent to which cooperatives can achieve these aims depends on a clear definition of their role in national development and favorable government policies, adequate planning, and reduced political interference.

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