Cooperaties

Cooperatives are member-owned and member-controlled organizations that operate to meet the common economic, social, and cultural needs of their members. Ownership is typically via shares or patronage, and members exercise democratic control, usually one member, one vote. Profits are distributed among members or reinvested in the cooperative, based on patronage or use.

Cooperatives emerged in the 19th century with the Rochdale Society of Equitable Pioneers in England, which inspired a set of principles later codified by the International Cooperative Alliance. The Rochdale Principles include voluntary and open membership; democratic member control; member economic participation; autonomy and independence; education, training and information; cooperation among cooperatives; and concern for the community.

Cooperatives operate across sectors. Common forms include consumer cooperatives (retail and goods owned by shoppers), worker cooperatives (owned by employees), producer cooperatives (owned by producers, such as farmers), agricultural cooperatives, housing cooperatives, and financial cooperatives such as credit unions. They may provide goods and services at market rates while prioritizing member welfare, resilience, and social objectives.

Governance typically centers on a board elected by members, with general assemblies and transparent reporting. Capital is usually raised from member contributions and not from external shareholders, which helps preserve member control but can limit rapid expansion. Earnings are returned to members as patronage refunds, allocated to reserves, or reinvested in services. Benefits include risk sharing, price stability, and community development, though cooperatives can face challenges in capital access and governance complexity.