What is a Co-operative?

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

Ranging from small-scale to multi-

million dollar businesses across the
globe, co-operatives employ more than
100 million women and men and have
more than 800 million individual
members.
 Definition

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.
 Values

Co-operatives are based on the values

of self-help, self-responsibility,
democracy, equality, equity and
solidarity. In the tradition of their
founders, co-operative members
believe in the ethical values of
honesty, openness, social
responsibility and caring for others.
 Principles of Cooperation
The co-operative principles are guidelines by
which co-operatives put their values into
practice.

1. Voluntary and Open Membership

Co-operatives are voluntary organisations,
open to all persons able to use their services
and willing to accept the responsibilities of
membership, without gender, social, racial,
political or religious discrimination.
2. Democratic Member Control

Co-operatives are democratic organisations

controlled by their members, who actively
participate in setting their policies and
making decisions. Men and women serving
as elected representatives are accountable to
the membership. In primary co-operatives
members have equal voting rights (one
member, one vote) and co-operatives at
other levels are also organised in a
democratic manner.
3. Member Economic Participation

Members contribute equitably to, and

democratically control, the capital of their
co-operative. At least part of that capital is
usually the common property of the co-
operative. Members usually receive limited
compensation, if any, on capital subscribed
as a condition of membership. Members
allocate surpluses for any or all of the
following purposes: developing their co-
operative, possibly by setting up reserves,
part of which at least would be indivisible;
benefiting members in proportion to their
transactions with the co-operative; and
supporting other activities approved by the
membership.
4. Autonomy and Independence

Co-operatives are autonomous, self-help

organisations controlled by their members.
If they enter to agreements with other
organisations, including governments, or
raise capital from external sources, they
do so on terms that ensure democratic
control by their members and maintain
their co-operative autonomy.
5. Education, Training & Information

Co-operatives provide education and training

for their members, elected representatives,
managers, and employees so they can
contribute effectively to the development of
their co-operatives. They inform the general
public - particularly young people and opinion
leaders - about the nature and benefits of co-
operation.
6.Co-operation among Co-operatives
Co-operatives serve their members most
effectively and strengthen the co-operative
movement by working together through
local, national, regional and international
structures.
7.Concern for Community
Co-operatives work for the sustainable
development of their communities through
policies approved by their members.
What is the Co-operative Difference?

Co-operatives are enterprises that put people at the centre

of their business and not capital. Co-operatives are business
enterprises and thus can be defined in terms of three basic
interests: ownership, control, and beneficiary. Only in the co-
operative enterprise are all three interests vested directly in
the hands of the user.

Co-operatives put people at the heart of all their business.

They follow a broaderset of values than those associated
purely with making a profit. Because co-operatives are
owned and democratically-controlled by their members
(individuals or groups and even capital enterprises) the
decisions taken by co-operatives balance the need for
profitability with the needs of their members and the wider
interests of the community.

Co-operatives are also enterprises that follow a set of

principles and values - The Co-operative Principles. The Co-
operative Identity Statement elaborated in 1995 by the ICA
is the internationally recognized definition of the co-
operatives, its values, and principles.
Type of Co-operatives
The co-operative model of enterprise can be
applied to any business activity. They exist in
traditional economic sectors such as
agriculture, fisheries, consumer and financial
services, housing, and production (workers'
co-operatives). However, co-operative
activity spans to large number of sectors and
activities including car-sharing child-care,
health and social care, funeral, orchestras
and philharmonics, schools, sports, tourism,
utilities (electricity, water, gas, etc.), and
transport (taxis, buses, etc).
Co-operatives are significant economic
and social actors

All over the world, millions of people have

chosen the co-operative model of business
enterprise to enable them to reach their
personal and community development goals.
Co-operatives create and maintain
employment-providing income; they are
responsible for producing and supplying safe
and quality food and services to their
members, but also to the communities in
which they operate. By putting the Co-
operative Principles and ethics in practice
they promote solidarity and tolerance, while
as 'schools of democracy' they promote the
rights of each individual - women and men.
 Co-operatives are socially conscious responding
to the needs of their members whether it is to
provide literacy or technical training, or to take
action against the HIV/AIDS pandemic. Through
their varied activities, co-operatives are in many
countries significant social and economic actors in
national economies, thus making not only
personal development a reality, but contributing
to the well-being of entire populations at the
national level.

 Over 800 million people are members of a co-

operative.
 Co-operatives provide 100 million jobs worldwide,
20% more than multinational enterprises
Statistical Information on the Cooperative
Movement

The Co-operative Movement brings together over

800 million people around the world. The United
Nations estimated in 1994 that the livelihood of
nearly 3 billion people, or half of the world's
population, was made secure by co-operative
enterprise. These enterprises continue to play
significant economic and social roles in their
communities. Below are some facts about the
Movement that demonstrate their relevance and
contribution to economic and social development
Large segments of the population are members of co
operatives

 In Asia 45.3 million people are members of a credit union.

(Source: Association of Asian Confederation of Credit Unions,
Annual Report 2007/2008)
 In Argentina, there are 12,670 co-operative societies with
over 9.3 million members - approximately 23.5% of the
population. (Source:
"Las Cooperativas y las Mutuales en la República Argentina", I
nstituto Nacional de Asociativismo y Economia Social (INAES),
30 June 2008
)
 In Belgium, there were 29,933 co-operative societies in 2001
 In Bolivia, 2,940,211 people or one -third of the population is
a member of the 1590 co-operatives.
(Source: Diagnóstico Nacional Cooperativo (DNC), 2008 as
reported in Boletín Informativo aciaméricas.coop Nº65,
December, 2008)
 In Canada, four of every ten Canadians are members of at
least one co-operative. In Quebec, approximately 70% of the
population are co-op members, while in Saskatchewan 56%
are members.
Source: Co-operative Secretariat, Government of Canada.
 In Colombia over 4.4 million people or 10.7% of the
population are members of the 7,833 co-operatives in the
country. The movement reports an annual growth rate of
11.27% with 453,180 new members joining co-operatives in
2008. (Source: CONFECOOP. Gestión Empresarial
Socialmente Responsable: Desempeno del Sector
Cooperativo Colombiano 2008
2 )

 Costa Rica counts over 10% of its population as members of

co-operatives.

 Finland, S-Group has a membership of 1,468,572

individuals which represents 62% of Finnish households.
(Source: SOK Corporation Annual Report 2004)

 In Germany, there are 20 million people who are members

of co-operatives, 1 out of 4 people.

 In Iran, there are over 130,000 co-operative societies with

23 million members or approximately 33% of the
population. (Source: http://www.taavongaran.ir/En/)
 In Indonesia, 27.5% families representing approximately 80 million
individuals are members of co-operatives. (Source: Ministry of Co-
operative & SMEs, Indonesia,2004)

 In Japan, 1 out of every 3 families is a member of a co-operatives.

 Kenya 1 in 5 is a member of a co-operative or 5.9 million and and 20

million Kenyans directly or indirectly derive their livelihood from the Co-
operative Movement.

 In India, over 239 million people are members of a co-operative.

 In Malaysia, 5.9 million people or 24% of the total population are

members of co-operatives.(Source: Ministry of Entrepreneur and Co-
operative Development, Department of Co-operative Development,
Malaysia, December 2006)

 In New Zealand, 40% of the adult population are members of co-

operatives and mutuals. (Source: New Zealand Co-operative Association,
2007)

 In Singapore, 50% of the population (1.6 million people) are members of

a co-operative.

 In the United States, 4 in 10 individuals is a member of a co-operative

(25%).
Co-operatives are significant economic actors in
national economies

 In Belgium, co-operative pharmacies have a market

share of 19.5%.

 In Benin, FECECAM, a savings and credit co-

operative federation provided USD 16 million in rural
loans in 2002.

 In Brazil, co-operatives are responsible for 40% of

the agricultural GDP and for 6% of total agribusiness
exports. In 2006 Brazilian co-operatives exported 7.5
million tons of agricultural products for a value of
USD 2.83 billion to 137 countries. (Source: Brazil-
Arab News Agency, 2 February 2007).

http://www.anba.com.br/ingles/noticia.php?id=1369
8
 In Bolivia, Cooperativa de Ahorro y Crédito "Jesús
Nazareno" Ltda. (CJN) handled 25% of the savings in
Bolivia in 2002.

 Canadian maple sugar co-operatives produce 35% of the

world's maple sugar production.

 In Côte d'Ivoire co-operatives invested USD 26 million for

setting up schools, building rural roads and establishing
maternal clinics.

 In Colombia, the over 7,300 co-operatives are responsible

for 5.61% of the GDP in 2007 - up from 5.37% in 2006
and 5.25% in 2005. They employ over 110,000 people and
some sectors are providing a significant proportion of the
jobs - 24.4% of all health sector jobs are provided by co-
operatives, 18.3% of the jobs in the transport sector,8.3%
in agriculture and 7.21% of the jobs in the financial sector.
Co-ops provide 87.5% of all microcredit in the country;
they provide health insurance to 30% of all Colombians
and are responsible for 35.29% of Colombian coffee
production. (Source: Sector Cooperative Colombiano 2007 )
 In Cyprus, the co-operative movement held 30%
of the market in banking services, and handled
35% of all marketing of agricultural produce.

 In Denmark, consumer co-operatives in 2007

held 36.4% of consumer retail market. (Source:
Coop Norden AB Annual Report 2007)

 Finnish co-operative groups within Pellervo were

responsible for 74% of the meat products, 96%
of dairy products; 50% of the egg production,
34% of forestry products and handled 34.2% of
the total deposits in Finnish banks.

 In France, 9 out of 10 farmers are members of

agricultural co-operatives; co-operative banks
handle 60% of the total deposits and 25% of all
retailers in France are co-operatives. (Source:
GNC Newsletter, No 348, June 2007)
 Hungary, consumer co-operatives members of Co-op
Hungary are responsible for 14.4% of the national
food and general retail sales in 2004. (Source: Co-op
Hungary, Statistical Data 2004)

 In Iran, co-operatives contribute 6% of the Gross

Domestic Product (GDP). (Source:
http://www.taavongaran.ir/En/)

 In Japan, the agricultural co-operatives report outputs

of USD 90 billion with 91% of all Japanese farmers in
membership. In 2007 consumer co-operatives
reported a total turnover of USD 34.048 billion with
5.9% of the food market share. (Source: Co-op 2007
Facts & Figures, Japanese Consumers' Co-operative
Union)

 In Kenya, co-operatives are responsible for 45% of

the GDP and 31% of national savings and deposits.
They have 70% of the coffee market, 76% dairy, 90%
pyrethrum, and 95% of cotton.
 Korea, agricultural co-operatives have a membership of over 2
million farmers (90% of all farmers), and an output of USD 11
billion. The Korean fishery co-operatives also report a market
share of 71%.

 In Kuwait, the Kuwaiti Union of Consumer Co-operative

Societies whose members are 6.5% of the Kuwaiti population
handled nearly 70% of the national retail trade in 2007.

 In Latvia, the Latvian Central Co-operative Union is responsible

for 12.3% of the market in the food industry sector.

 In Mauritius, in the agricultural sector, co-operators play an

important role in the production of sugar, vegetable, fruit and
flower, milk, meat and fish. Nearly 50% of sugar-cane planters
are grouped in co-operatives and the share of co-operatives in
the National Sugar Production is 10%. Co-operative Societies
also account for more than 60% of national production in the
food crop sector - 755 of onion consumption, 40% of potatoes
and about 70% of fresh green vegetables are produced by co-
operatives. In addition, the Co-operative bus sector represents
some 30% of the national bus transport. (Source: Ministry of
Industry, Small & Medium Enterprises, Commerce &
Cooperatives )
 In Moldova, the Central Union of Consumer Co-
operatives is responsible for 6.8% of the consumer
market.

 In New Zealand, 22% of the gross domestic product

(GDP) is generated by co-operative enterprise. Co-
operatives are responsible for 95% of the dairy market
and 95% of the export dairy market. They hold 70% of
the meat market, 50% of the farm supply market, 70%
of the fertiliser market, 75% of the wholesale
pharmaceuticals, and 62% of the grocery market.
(Source: New Zealand Co-operative Association, 2007 )

 In Norway, dairy co-operatives are responsible for 99%

of the milk production; consumer co-operatives held
24.1% of the market (Source: Coop Norden AB annual
report 2007); fisheries co-operatives were responsible
for 8.7% of total Norwegian exports; forestry co-
operatives were responsible for 76% of timber and that
1.5 million people of the 4.5 million Norwegians are
member of co-operatives.
 In Poland, dairy co-operatives are responsible for 75%
of dairy production.

 In Portugal, approximately 3000 co-operatives are

responsible for 5% of the Gross National Product of the
country. (Source: Prime Minister of Portugal address to
ICA Expo, 23 Oct. 2008)

 Co-operatives and mutuals in Scotland account for

4.25% of the Scottish Gross Domestic Product, having
an annual turnover of GBP 4 billion and assets of GBP
25 billion. ( Source: Co-operative Development
Scotland web site, and "Co-operatives in Scotland: A
powerful force....", 2007)

 In Singapore, consumer co-operatives hold 55% of the

market in supermarket purchases and have a turnover
of USD 700 million.

 In Slovenia, agricultural co-operatives are responsible

for 72% of the milk production, 79% of cattle; 45% of
wheat and 77% of potato production.
 In Sweden, consumer co-operatives held 17.5% of the
market in 2004. (Source: Coop Norden AB annual
report 2004)

 In the UK, the largest independent travel agency is a

co-operative.

 In Uruguay, co-operative produce 90% of the total milk

production, 340% of honey and 30% of wheat. 60% of
co-operative production is exported to over 40
countries around the world.

 In Vietnam, co-operatives contribute 8.6% of the Gross

Domestic Product (GDP).

 In the United States more than 30 co-operatives have

annual revenue in excess of USD 1 billion. In 2003 the
top 100 US co-operatives had combined revenues of
USD 117 billion. In addition, approximately 30% of
farmers' products in the US are marketed through
3,400 farmer-owned co-operatives.
Co-operatives create and maintain employment

 Co-operatives provide over 100 million jobs around the

world, 20% more than multinational enterprises.

 In Argentina, co-operatives are responsible for providing

direct employment to over 233,000 individuals.
(Source: Instituto Nacional de Asociativismo y Economia
Social (INAES), September 2007)

 In Bolivia, 1590 co-operatives provide 32,323 direct

jobs and 128,180 indirect jobs

(Source: Diagnóstico Nacional Cooperativo (DNC), 2008

as reported in Boletín Informativo aciaméricas.coop
Nº65, December, 2008 )

 In Canada, co-operatives and credit unions employ over

155,000 people. The Desjardins movement (savings and
credit co-operatives) is the largest employer in the
province of Québec.
 In Colombia, the co-operative movement provides
123,643 jobs through direct employment and an
additional 537,859 jobs as worker-owners in workers
co-operatives - providing 3.74% of all jobs in the
country. (Source: CONFECOOP. Gestión Empresarial
Socialmente Responsable: Desempeno del Sector
Cooperativo Colombiano 2008)

 In France, 21,000 co-operatives provide over 4 million

jobs. (Source: GNC Newsletter, No 348, June 2007)

 In Germany, 8,106 co-operatives provide jobs for

440,000 people.

 In Indonesia, co-operatives provide jobs to 288,589

individuals. (Source: Ministry of Co-operative & SMEs,
Indonesia, 2004)

 In Iran, co-operatives have created and maintain 1.5

million jobs. (Source: http://www.taavongaran.ir/En/ )
 In Italy, 70,400 co-operative societies employed
nearly 1 million people in 2005. (Source: Camere
di Commercio d'Italia, "Secondo rapporto sulle
imprese cooperative")

 In Kenya, 250,000 people are employed by co-

operatives.

 In Slovakia, the Co-operative Union represents

more 700 co-operatives who employ nearly 75,000
individuals.

 The information provided here has been collected

from a variety of sources including ICA's statistical
questionnaire, information published by co-
operative organisations, presentations made by co-
operatives, and government statistical offices.