What's Happening?
The International Labour Organization (ILO) has emphasized the crucial role of cooperatives in fostering inclusive growth, promoting decent work, and enhancing local ownership within the European Union's external action strategies. Carlien van Empel,
director of the ILO Office for the EU and the Benelux countries, articulated this stance during a panel discussion. She called for a more profound integration of cooperatives into the EU's Global Gateway strategy. The discussion, titled 'From aid to ownership: rethinking development through a cooperative lens,' was organized by Cooperatives Europe in collaboration with the EU and the International Cooperative Alliance (ICA). Van Empel highlighted that cooperatives, spanning sectors like energy, transport, digital services, agriculture, care, and finance, can act as enterprises, suppliers, service providers, financial institutions, and community partners, ensuring that investments generate sustainable, locally anchored benefits and decent work. The ILO's normative framework, including the Recommendation on the Promotion of Cooperatives (2002) and a 2022 Resolution on decent work and the social and solidarity economy, underpins these efforts, having influenced cooperative policy in 120 countries.
Why It's Important?
The ILO's advocacy underscores a strategic shift towards leveraging cooperatives as key drivers for sustainable development and economic resilience in international cooperation. This approach is significant because cooperatives, by their nature, prioritize long-term value, local impact, and member success over short-term shareholder returns, making them effective tools for community-led development. Their integration into major initiatives like the EU's Global Gateway strategy could lead to more equitable distribution of economic benefits, stronger local economies, and enhanced job creation in partner countries. For the U.S., this model offers insights into how similar cooperative-centric strategies could be applied in its own international development efforts, potentially fostering more sustainable and locally-driven outcomes. It also highlights the potential for increased collaboration between international bodies and cooperative movements to address global challenges such as poverty, unemployment, and inequality, by building stronger national ecosystems that support cooperative autonomy and growth.
What's Next?
Looking ahead, the ILO is urging the European Commission and other development partners to systematically explore how cooperatives and the broader social and solidarity economy (SSE) can contribute to Global Gateway investments. This includes developing joint methodologies, such as employment impact assessments, and implementing programs in various regions, including Liberia, Bangladesh, and across Africa, to ensure that large-scale investments translate into quality job creation. The ILO's ongoing work in promoting cooperative models in the care economy, combating child and forced labor, and improving occupational safety and health in countries like Colombia, Palestine, Zimbabwe, Burkina Faso, Mali, and Uganda, serves as a blueprint for future initiatives. The emphasis will be on creating supportive policy environments, capable institutions, and social dialogue to protect the independence of cooperatives, ensuring they are not merely delivery mechanisms for international aid but independent economic actors driving genuine local development.
Beyond the Headlines
The push for greater integration of cooperatives into international development frameworks reflects a deeper recognition of their unique ability to foster democratic economic participation and build resilient communities. This goes beyond traditional aid models by promoting 'ownership' rather than mere 'aid,' aligning with principles of self-help and mutual responsibility. Ethically, this approach champions a more inclusive form of globalization, where economic development is not solely driven by large corporations but also by member-owned enterprises that distribute wealth more broadly. Legally, it necessitates the development of robust national ecosystems that protect cooperative autonomy and provide supportive regulatory frameworks. Culturally, it can empower local communities by giving them greater control over their economic destinies, fostering a sense of collective agency and reducing dependency on external actors. This long-term shift could lead to more stable and equitable global economic relations, challenging conventional development paradigms.
