“Co-operatives build a better world,” affirmed United Nations Secretary-General Antonio Gúterres before designating 2025 as the International Year of Cooperatives. The 2.6 million co-operatives worldwide employ approximately 10% of the global labour force. By balancing profit-seeking with a value-driven approach anchored in self-help, democracy, equality, and solidarity, these “people-centered” enterprises are powerful engines for development and sustainability.
As defined by the Statement on the Cooperative Identity, adopted by the International Cooperative Association (ICA) in 1995, a co-operative is “an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.” Co-ops operate across diverse sectors but must adhere to seven core principles: voluntary and open membership; democratic member control; members’ economic participation; autonomy and independence; education, training, and information; cooperation among cooperatives; and concern for the community. Unlike traditional businesses that pay out profits to shareholders, co-operatives redistribute their profits to members in proportion to their participation. These members share similar economic, cultural and/or social needs and goals and all have the right to vote on organizational matters. Their benefits include creating decent jobs, facilitating access to resources, strengthening housing and food security, revitalizing rural economies and livelihoods, and empowering marginalized communities.
In light of their transformative benefits—from creating decent jobs to revitalizing rural economies and livelihoods to empowering marginalized communities—the United Nations has stated that “co-operatives, in their various forms, promote the fullest possible participation in the economic and social development of local communities and all people.” Indeed, these business models can and must be leveraged to advance the Sustainable Development Goals and broader development objectives. The International Year of Cooperatives 2025 was thus launched in November 2024 during the ICA Global Conference.
Co-operatives are instrumental in addressing social exclusion by enabling marginalized groups to participate more fully in economic activities. While it is crucial to move beyond simplistic assumptions that employment equals empowerment, co-operatives excel in creating decent and meaningful job opportunities. By allowing members to pool resources — expertise, capital, infrastructure — co-ops empower groups who have faced barriers to access to labour and economic markets to create new opportunities for themselves and their communities. In 2018, nine women in Minya, Egypt, pooled their resources and overcame gendered barriers to become the first all-female registered co-operative in the country: the Women’s Handicrafts Production Cooperative. Supported by the Better Life Association for Community Development and Oxfam Egypt’s Youth Participation and Employment Project, this co-operative provides market opportunities for high-quality hand-crafted goods while empowering its members with skills in management, production, and marketing. As Rasah Gamal, a founding member, shares, “The journey to set up the co-operative was not easy, but it was so worth it.” This initiative highlights how co-operatives can foster grassroots empowerment by tailoring training and support to local gender dynamics.
Predominantly present in the financial, housing, and agricultural sectors, the co-operative model significantly contributes to poverty reduction and improved living standards, especially in rural areas. While financial co-ops provide affordable banking and financial services, including reduced fees and lower interest rates on loans, housing co-ops offer affordable, collectively owned and managed housing. As the leading source of employment and income in most developing economies, the agricultural and agri-food sectors are significant drivers of economic growth and development in low- and middle-income countries. Operating through two principal models—production co-operatives on collectively owned land and service co-operatives providing resources for machinery, marketing, and distribution. These organizations help smallholder farmers overcome structural barriers such as limited market access, lack of financial capital, and inadequate infrastructure. By pooling resources, agricultural co-operatives drive rural growth and development, creating opportunities for scaling operations and improving livelihoods.
Agricultural co-operatives also play vital roles in promoting sustainability and contributing to climate action, ensuring that economic development does not come at the expense of ecological health, biodiversity, and natural resources. In Brazil, the Cooperativa Mista dos Povos e Comunidades Tradicionais da Calha Norte (COOPAFLORA) promotes sustainable forest product collection while employing regenerative agricultural practices that conserve natural resources, support crop diversity, improve soil health and water management. Here in Québec, which houses more than one-third of Canadian co-operatives, agricultural co-ops have driven significant sustainability efforts. Coop Agri-Énergie Warwick, for instance, produces renewable biomethane energy from organic waste, reducing greenhouse gas emissions, and reintegrating by-products into farms as fertilizer.
Finally, co-operatives also address long-standing critiques of the development apparatus, which have often relied on top-down interventions and one-size-fits-all solutions. Since the 2000s, localization—emphasizing grassroots empowerment, local ownership, and consideration of specific local dynamics—has emerged as a global priority. The participatory nature of co-operatives aligns seamlessly with this approach, ensuring that the benefits of development efforts flow directly to those driving co-operative ventures. By tailoring their operations to specific social, cultural, and economic contexts, co-operatives strengthen local capacity and empower communities to shape their own futures.
As we celebrate the International Year of Cooperatives in 2025, it is clear that these organizations are more than just businesses – they are powerful engines for sustainable and inclusive development. Through their emphasis on community, equality, and shared prosperity, cooperatives offer a blueprint for building a better world, one that balances profit, people, and planet.
Edited by Aimee Wang
This is an article written by a Staff Writer. Catalyst is a student-led platform that fosters engagement with global issues from a learning perspective. The opinions expressed above do not necessarily reflect the views of the publication.
Béatrice is a final-year McGill student majoring in International Development Studies, with minors in Political Science and Hispanic Studies. She is passionate about international relations and socio-economic development. As a staff writer for Catalyst, she looks forward to examining issues relating to human rights, food security, and youth and women’s empowerment.