Cooperatives: Pathways to Economic, Democratic, and Social Development in the Global Economy

This paper states that cooperatives can play a catalytic role and contribute to economic growth and social advancement in the developing world just as they have in the United States and in other Organization for Economic Cooperation and Development (OECD) countries. Cooperatives make an instrumental contribution to transformational international development via three primary pathways, namely economic, democratic, and social. They do so by:

• Alleviating poverty, stimulating economic growth;
• Providing a framework for democratic participation;
• Building social capital and trust, bridging ethnic, religious and political divides, and providing social services.

The paper highlights contemporary accomplishments and long-term potential of cooperatives in developing countries where economic, democratic and social transformation is the goal. It provides examples of how the cooperative business model helps low-income individuals in developing countries by:

• Improving incomes and creating value and investment opportunity along product supply chains in the global economy;
• Providing firsthand experience with democratic governance, transparency and member participation; Increasing trust and solidarity, and leading to stability in the face of adversity and conflict.