Introduction
The United Nations (UN) General Assembly has declared 2025 as the International Year of Cooperatives (IYC25) with the accompanying theme: “Cooperatives Build a Better World.” This designation— passed via UN resolution– is set to demonstrate the integral role the cooperative model can play in poverty alleviation, generating employment, and creating socially inclusive and just societies; all objectives aligned with the UN’s Sustainable Development Goals.
The UN’s designation is more than symbolic—it also signals a commitment to concrete action. In 2025, the UN will urge governments and the private sector to invest in and facilitate the conditions needed for cooperative growth while also focusing its programming on strengthening existing cooperatives and expanding cooperative networks. Advocacy efforts will be paired with public awareness campaigns that celebrate cooperative identity and inspire new leadership in the field.
To launch these various ICY25 initiatives, the UN and the International Cooperative Alliance (ICA) hosted a global conference in New Delhi, titled Cooperatives Build Prosperity for All. The event brought together over 3,000 participants from more than 100 countries to exchange knowledge, forge new partnerships, and strategize ways to overcome current challenges in expanding the cooperative movement
On Tuesday, November 26th and Wednesday, November 27th, 2024, I was afforded the opportunity to attend the conference as sponsored by the Banyan Impact Fellowship. As a general attendee, I had access to the plenary and breakout sessions, conference publications, various cooperative-centered exhibits, and was also able to meet experts in the field.
Before attending this conference, I understood cooperatives in simple terms: businesses built of joint member ownership. I was familiar with the successes of agricultural and dairy cooperatives, where food producers pool their goods or share manufacturing resources to access larger markets. I had also been a member of several consumer cooperatives, which collect membership fees in exchange for partial ownership, allowing stakeholders to access affordable goods and services. These experiences gave me a positive impression of the cooperative model. Even so, this conference illuminated that cooperatives have the potential to be much more transformative as “people-centred, purpose-led and progress-driven enterprises” (ICA, 2025). I left feeling that for anyone working in sustainable development—or who is simply passionate about building a more just and equitable world—the cooperative model serves as a powerful vehicle for systems change. With its foundation in ideals of democracy, social justice, community welfare, environmental sustainability, and labor protections, it is well-suited to advancing the solidarity economy.
Understanding the Essence of Cooperatives: Designed for Sustainable Development
The ICA currently defines a cooperative as 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.” Similarly, the UN defines cooperatives as “business enterprises owned and controlled by the very members that they serve.” While the member-driven structure of cooperatives is their most defining feature, it is their values-based foundation that truly sets them apart from other business enterprises.
The ICA has clearly outlined “self-help, self-responsibility, democracy, equality, equity, and solidarity” as the core values that should guide any cooperative, whether it is just starting out or already well established. Similarly, the principles of 1. Voluntary and Open Membership, 2. Democratic Member Control, 3. Member Economic Participation, 4. Autonomy and Independence, 5. Education, Training, and Information, 6. Cooperation among Cooperatives, and 7. Concern for Community are intended to inform how cooperative enterprises actualize these values (ICA, 2025).
In line with these principles, cooperatives are typically have a general assembly for decision-making, a board of directors elected by members, and a management team responsible for daily operations. Members should have equal voting rights, both in terms of determining their representative leadership and within a general assembly format. This democratic structure helps to ensure decisions made by the enterprise balance pursuit of profit with the distinct economic and social needs of the members.
While private enterprises typically focus on profit maximization and expanding market share, cooperatives are structured to safeguard the holistic interests of their members. Cost-cutting measures such as lowering wages, laying off employees, increasing automation, or sourcing cheaper but potentially harmful materials are not viable strategies for boosting profitability in cooperatives. These approaches run counter to the cooperative model, which prioritizes member well-being, ethical practices, and long-term sustainability over short-term financial gains.
Instead, cooperatives focus on human capital development through education and training, empowering their members while also raising public awareness of the cooperative model’s benefits. One of the greatest strengths of cooperatives is their dynamic reinvestment of profits back into the organization. This reinvestment enhances services for members, such as financial assistance, health insurance, pension schemes, and skill development programs, ensuring long-term sustainability and shared prosperity.
Cooperatives are also independent entities. According to the ICA’s principle of Autonomy and Independence, an enterprise must maintain self-governance, even when partnering with external organizations. This ensures that cooperatives remain member-driven and uphold their core values, regardless of outside collaborations or investments.
In producer-owned cooperatives, investing in communal assets—such as processing equipment—and fostering knowledge sharing benefits both individual members and the collective as a whole. By pooling and sharing physical resources, cooperatives create a built-in safety net, enhancing resilience against economic and environmental shocks. Producers also benefit by securing market access without having to compete or out-produce their neighbor. This is particularly notable for building community resilience in the face of climate and public health crises and ongoing uncertainties in the global financial system. Encouraging resource and knowledge sharing not only strengthens solidarity but also reinforces communal values such as honesty, trust, and transparency among members. In this way, cooperatives—true to their name—prioritize collaboration over competition.
That being said, cooperatives should not be romanticized and framed as fundamentally ethical instruments for social change. They should neither be misconstrued as nonprofits or communal welfare organizations. The reason cooperatives have the potential to foster sustainable livelihood development and contribute to systems change is because they can become profitable businesses.
Poverty alleviation and income generation depend on cooperatives’ ability to provide quality, affordable goods and services in markets increasingly dominated by oligopolistic, transnational firms. To effectively translate aspirations for unified social and economic change into action, respective cooperatives must remain rooted in the internationally agreed-upon principles and ethics that define the model.
Outcome of the Conference: Unlocking the Potential of Cooperatives
While the many strengths of cooperatives formed the foundation for the UN’s designation of 2025 as the International Year of Cooperatives, the conference was not merely a celebration. Instead, it centered on addressing complex challenges facing the cooperative movement today.
Sessions explored critical themes such as “Enabling Policy and Entrepreneurial Ecosystems,” “Reaffirming Cooperative Identity,” “Nurturing Purposeful Leadership,” and “Shaping a Just and Equal Future.”
Conference speakers repeatedly acknowledged how the lack of awareness and/or misunderstanding of cooperatives limits the capacity to expand membership. Many communities are still unaware of the benefits cooperatives offer or may perceive them as niche models limited to specific sectors, such as agriculture and food production. Discussions on cooperative branding emphasized the importance of distinguishing the model from perceptions of it being an “alternative” or “fringe” lifestyle. Some speakers also acknowledged that past associations with communism have, at times, hindered the creation of policy frameworks that support cooperative growth.
In order to make sweeping change, cooperatives must become mainstream; seen as accessible and valuable to the general public. Raising awareness and educating communities about the benefits of cooperatives—particularly by affirming and clarifying cooperative identity—was repeatedly emphasized as essential to expanding the model.
Another key challenge discussed was how new cooperatives often struggle to compete with traditional businesses or startups.
For cooperatives to scale effectively, they need tailored financial mechanisms, including support from governments and private investors. This support may take the form of policy reforms that provide legal backing, tax incentives or exemptions for new cooperatives, and flexible loan agreements.
Many cooperatives face challenges in accessing larger markets or securing the initial capital needed to compete with private firms. Strengthening cooperative networks—including transnational partnerships—can help overcome these barriers by expanding market access, increasing visibility, and fostering collective growth.
As the conference host, India was well-positioned to showcase the potential for scaling the cooperative model. It is home to the world’s largest cooperative, the Indian Farmers Fertiliser Cooperative (IFFCO), and the world’s largest dairy cooperative, Amul Milk—both of which were key sponsors of the event.
Indeed, the cooperative movement is not a marginal phenomenon. With at least 3 million registered cooperatives worldwide and an estimated 12% of the global population belonging to a cooperative, its impact is significant.
It was thus surprising to learn about the substantial gap in accessible leadership training and management development opportunities specifically designed for the cooperative model.
Prospective and current members (aka cooperators) need specified education that can ensure cooperatives run efficiently while maintaining their democratic values.
If formal business education continues to focus exclusively on private enterprise, cooperatives will struggle to attract new talent and develop sector-specific skills. Speakers highlighted the need to encourage young professionals and first-time entrepreneurs to explore the cooperative model. They also emphasized ongoing efforts to establish cooperative-oriented academic programs at the collegiate level, ensuring that future leaders are equipped with the knowledge and skills necessary to sustain and expand the movement.
Finally, sessions underscored the need for cooperatives to adapt to technological advancements by integrating digital tools and continuously improving their technical infrastructure.
This includes leveraging quantitative monitoring and evaluation techniques to measure and communicate the financial impact of cooperatives. Whereas the qualitative benefits—such as community well-being and social cohesion—are harder to quantify, concrete financial data can be leveraged to acquire initial capital or investment. Some panelists stressed that cooperatives must prioritize data collection that demonstrates both livelihood improvements and profitability to strengthen their case for funding from both the private and public sector.
Conclusion: Looking Forward to a Year of Cooperatives’
The ICA has expanded significantly over the past 125+ years, now representing over 300 member organizations across 110 countries. However, 2025 must be a year of action—one focused on scaling awareness of the cooperative model and advancing policies that support its growth.
This includes active lobbying, securing technical expertise, building capacity, sharing information, and fostering global collaboration. Most importantly, cooperators must highlight how this model provides solutions to pressing global challenges, including rising economic inequality, climate change, environmental degradation, and the transformative impact of artificial intelligence.
As a model not beholden to profit-driven shareholders, cooperatives offer more than just a critique of unjust, extractive, and exploitative economic systems. They serve as a proven, effective tool for building economies based on the principle that human nature is fundamentally cooperative, rather than purely self-interested.
To foster equitable prosperity and safeguard community sovereignty, autonomy, and sustainable resource use, the cooperative framework must be rapidly expanded across diverse sectors—including technology, finance, housing, and civil infrastructure. It is not enough to merely place our hopes in the cooperative model or idealize the solidarity economy.
By bringing together cooperative movement leaders from around the world in a space designed for dialogue, the ICA conference provided a valuable platform for exchanging ideas, gaining inspiration, and sharing knowledge.
This brief but comprehensive introduction to the cooperative model left me convinced that, with dedicated time and resources, cooperatives can—as the conference theme suggested—truly build prosperity for all.
References
International Cooperative Alliance. What Is a Cooperative?: Cooperative Identity, Values & Principles. n.d., https://ica.coop/en/cooperatives/what-is-a-cooperative.
Lange, Katharina. “The Cooperative Economy: A Vision for Tackling Society’s Grand Challenges.” I by IMD Book Club, IMD, 29 Jan. 2024, https://www.imd.org/ibyimd/book-club/the-cooperative-economy-a-vision-for-tackling-societys-grand-challenges/.
“Present Status of Consumer Co-operatives: ICA Committee on Consumer Co-operation for Asia and Pacific: India Country Snapshot.” International Cooperative Alliance Asia-Pacific, n.d., http://icaap.coop/sites/ica-ap.coop/files/INDIA.pdf.
United Nations. Department of Economic and Social Affairs: Cooperatives Launch 2025 International Year. n.d., https://www.un.org/en/desa/cooperatives-launch-2025-international-year.
United Nations. (n.d.). Sustainable Development Goals. https://sdgs.un.org/goals
