Co-operatives enhance households’ economic well-being
Members of co-operatives outperform national averages and are more likely to have higher than average incomes and are less likely to be very deprived, a new report by US Overseas Cooperative Development Council (OCDC) shows.
The report looked at ways to identify and measure the difference co-operatives make, focusing on four countries: Kenya, Peru, Philippines, and Poland.
The study, released in May, was carried out between 2017 and 2020 and involved a survey of over 8,000 people, including co-op members, measured against a comparison group of non-members. It also looked at leaders of co-operatives and communities and other important stakeholders.
The OCDC released a Global Outcomes Report and a stand-alone research product and forms part of a three-report suite. The study makes a strong case for the role of co-operatives in development.
Members taking part in OCDC’s research attributed their economic well-being to their co-operative membership, and economic motivations serve as the primary factor influencing co-operative membership.
Furthermore, most respondents said they believed co-operatives positively benefited their household economically: 82% in Kenya, 71% in Poland, 94% in the Philippines, and 74% in Peru.
The report also found that co-operatives help members achieve greater prosperity directly – through access to credit and higher earnings – and indirectly by facilitating financial education, mentorship, and training.
OCDC’s research also revealed that co-operatives are highly regarded for their contributions to communities’ economic development by both members and non-members, who praised co-ops for helping to support a robust business environment, creating jobs, attracting investment, and supporting infrastructure development.
According to the study, 70% of co-operative members in Kenya and 80% of co-operative members in the Philippines thought their co-operatives offered support to members during emergencies. Co-operative members were more likely to rely on their own savings for support than their family, relatives, and friends.
The research also suggests co-operatives play a role in empowering women, with women members’ consistently higher economic ranking than women’s average economic ranking in each country of the study across all four states. In addition, the majority of women taking part in the survey saw agency and independence resulting from their membership – 82% in Kenya, 51% in the Philippines, and 46% in Peru.
Source: OCDC, thenews.coop
