Cooperative Enterprise – For Economic Advancement in Developing Countries.

Definition of Cooperatives from Wikipedia, the Free Encyclopedia
“A cooperative ("coop") or co-operative ("co-op") is an autonomous association of people who voluntarily cooperate for their mutual social, economic, and cultural benefit.”

Cooperatives are rapidly taking their place as an important medium of economic advancement and are increasingly being highlighted as a perfect engine for economic growth particularly in the context of developing countries. Indeed, numerous opportunities for development exist in the Cooperative Model of Business and as awareness of its potential for economic prosperity increases, more and more countries are turning to the cooperative model of business as a means of attaining economic independence and stability.

Although cooperatives are found in every part of the world, the cooperative model of business is particularly suited to developing countries where employment rates are low and where private sectors are unable to kick in adequately to assist governments in providing employment for their citizens. It is an excellent vehicle of empowerment, a great medium of business and provides people of all ages with a means to create their own employment, find jobs with enterprises that are in alignment with their own values and participate as member-owners of enterprises where their voice is heard.

Cooperatives are fully owned and democratically controlled by their members. The concept is simple; individuals, small groups and organizations with similar business interests can pool their ideas, skills and resources together for greater productivity and efficiency. The costs associated with the business and likewise the profits generated from it are shared equally among members. All members have the same power in decision making and enjoy equal benefits. Members are committed to the success of the business because it belongs to them. The cooperative model of business is thus, a way for persons to be employed and to obtain self-sustainability within their groups and communities. In time, small cooperatives can expand and offer large scale employment both directly and indirectly. They have the potential to impact the economy significantly in their areas of operation.

Even starting at the level of the school, cooperatives can be used as a medium for achieving productivity and attaining confidence and self-reliance. Participation in group entrepreneurship projects teaches children the importance of cooperation and is, at the same time, an excellent avenue for positioning them to lead entrepreneurship initiatives in the future thereby reducing the burden for employment which usually rests on the shoulders of governments and private sectors.
Indeed, entrepreneurship is one excellent way out of the unemployment situation and the youth must be empowered to go that route. The idea of the establishment of junior cooperatives at that level is therefore encouraged.

Similarly, through membership in schools savings unions, children are exposed to the principles of thrift; that is, saving today for the future. The important thing behind the once weekly savings is the whole idea of students embracing the concept of pooling resources together for the benefit of all members. Also, membership on the executive of the savings union helps students uncover their hidden talents and skills and might just provide the prodding needed to lead them in the right direction. Moreover, it offers students exposure to important life skills such as leadership and management. Even at this level it is not too early to acquire knowledge, skills and attitudes which will be useful in adult life.

School savings unions are affiliates of credit unions; non-financial cooperatives which have for decades, played a major role in improving the quality of life of persons – particularly the financially disadvantaged - in developing countries like mine. When I grew up every family had membership with the credit union in their area and was encouraged to save regularly. There was no lower bar to prevent the poorest of persons from saving a dime if that was all they could afford. Credit unions provided poorer persons with the opportunity to build savings and access small loans under less stringent conditions than banks. Children were involved in the process as they were usually the ones sent to make the deposits. In this way they became familiar with the process; they learned. Today, credit unions have evolved and are as big and as powerful as banks. They offer parallel services and their members have access to larger investment opportunities. Every member has shares in the credit union.

In my country, Dominica, the cooperative movement has brought about economic development and, more specifically, improvements in the standard of living for many, particularly in rural communities across the country as people have come to understand that by working together in unity, tremendous benefit can be derived.

In these hard economic times, cooperatives are, without any doubt, the key to economic prosperity and enhancement in the standard of living for small economies around the world. Cooperatives are recognized worldwide.