Social Enterprise: United Nations Names 2012 the International Year of Co-operatives

The United Nations (UN) has decided that 2012 is the year to mark international co-operatives, and to recognise the crucial role this business model plays in social enterprise and economic development globally. Cooperatives play a vital role in assisting nations tackle social issues by tackling poverty and improving quality of life, which leads to improved sanitation and education. This initiative was officially launched last month at the General Assembly of the UN in New York.

Dame Pauline, President of the International Co-operative Alliance—the voice of the global co-operative movement that is driving the International Year campaign—emphasised three key messages in her speech at the launch event. It is Dame Pauline's third point that struck a chord, because it is so relevant to what is happening right now around the world. Dame Pauline said, "Our governance model is people led. At a time when people especially young people whom this recession is hitting so cruelly are cynical of the political and economic models that dominate their lives, when they are looking for a voice, in North Africa, in Wall Street and across the world, and when they are looking for impact, the co-operative is not only an effective governance model, it is a compelling one."

Co-operatives began in the UK and have stood the test of time for the last 150 years. Today, the concept has a worldwide presence in a range of sectors from agriculture to housing, to the financial services, which embrace the ethos and the concept. There are an estimated 800 million members of co-operatives worldwide, and these social enterprises employ approxiamately100 million people. According to UN figures, 50% of the world's living standards are affected by this type of business model, and the top 300 alone generate combined turnover of $1.1 trillion, enough to make it into the top 15 economies in the world.

The shared values are what make co-operatives special: the shared ethos of democracy, equality and independence. Together, these create social enterprise businesses that deliver for the greater good, as opposed to businesses focused only on making profit for a chosen few. Co-operatives provide a different way of doing business that is far more sustainable. In fact, the Co-operative Bank in the UK has weathered the global financial crisis better than many of its competitors; the benefits are evident, against a backdrop of a financial crisis made worse by corporate greed.

The next 12 months will see events to raise awareness of how co-operatives can contribute to social enterprise and economic development. This is a historic moment for co-operatives, showing how to build a better world that sustains communities and creates jobs. At a time when the flaws in businesses have been exposed, co-operatives can provide the social and economic will to create a more balanced and sustainable world.

Photo Credit: sufw