At its heart, the cooperative model is a fundamentally different way of organizing economic activity. Rather than concentrating ownership and decision-making power in the hands of a few shareholders, cooperatives distribute ownership and control among all members. This simple but powerful principle has transformed communities around the world, creating more equitable, resilient, and prosperous economies.
Cooperatives worldwide operate according to seven core principles established by the International Cooperative Alliance:
Cooperatives are open to all who can use their services and are willing to accept the responsibilities of membership, without regard to race, religion, gender, or economic status.
Cooperatives are controlled by their members, who actively participate in setting policies and making decisions. One member, one vote.
Members contribute equitably to the capital of their cooperative and benefit from the economic results based on their participation.
Cooperatives are autonomous, self-help organizations controlled by their members, not by external entities.
Cooperatives provide education and training for members so they can contribute effectively to the development of their cooperative.
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, and international structures.
Cooperatives work for the sustainable development of their communities through policies approved by their members.
The cooperative model creates equity in several ways. First, by distributing ownership broadly, cooperatives ensure that wealth generated by the enterprise stays in the community rather than flowing to distant shareholders. Second, democratic control means that workers and community members have a voice in decisions that affect their lives. Third, cooperatives prioritize member benefit over profit maximization, creating more stable, sustainable businesses.
Cooperatives have proven their effectiveness across every sector of the economy. Agricultural cooperatives help farmers achieve fair prices and access markets. Worker cooperatives provide dignified employment with shared ownership. Consumer cooperatives give shoppers control over their food and product sourcing. Housing cooperatives make homeownership affordable. Credit unions provide financial services with member benefit as the priority.
The Mondragon Corporation in Spain, with over 80,000 worker-owners, demonstrates how cooperatives can scale while maintaining their values. The Emilia-Romagna region in Italy shows how cooperative networks can create regional prosperity. Countless smaller cooperatives worldwide prove that this model works at every scale.
When cooperatives thrive, communities thrive. Because profits stay local and decisions are made democratically, cooperatives invest in their communities. They create quality jobs, support local suppliers, contribute to community development, and build social capital. Members develop skills, build relationships, and gain agency in their economic lives.
As we face economic inequality, climate change, and social fragmentation, the cooperative vision becomes increasingly relevant. Cooperatives offer a proven alternative to both corporate capitalism and state control—a model where people work together for mutual benefit. By choosing cooperative ownership and democratic control, communities can build economies that work for everyone.
The cooperative vision is not utopian fantasy—it's a practical, proven approach to building equitable communities. By embracing shared ownership and democratic decision-making, we can create economies that generate prosperity for all members, not just a privileged few. The future belongs to communities that choose cooperation.