Cooperatives are uniquely positioned to combat poverty and uphold human dignity. By placing people before profit, they create pathways out of poverty through decent work, shared purchasing power, social inclusion, and community solidarity. As democratic, member-owned enterprises, cooperatives enable individuals to meet common needs while reinvesting in their communities. Guided by the Statement on the Cooperative Identity and its seven principles, they combine economic participation, social inclusion, and concern for community in a single, people-centred model of enterprise
As the world marks the end of the International Year of Cooperatives in 2025, a new report warns that global progress on ending poverty has stalled, with conflicts and climate shocks leaving nearly 808 million people in extreme poverty. However, amidst these grim statistics, the cooperative movement is emerging as a resilient, people-centred engine for economic survival and social empowerment.
According to the newly released brief, “Building a Better World Together: Cooperative Contributions to the SDGs,” produced by the Committee for the Promotion and Advancement of Cooperatives (COPAC) and the International Co-operative Alliance (ICA), cooperatives are proving that business can be conducted differently—placing human dignity above profit to achieve Sustainable Development Goal 1 (No Poverty).
The report cites various case studies on how cooperatives contribute to poverty alleviation.
Among these is the Maasai Kajiado Women Dairy Cooperative that has transformed the lives of women traditionally excluded from financial decision-making.
This women-led cooperative was established to tackle a deep-seated inequality: while Maasai women were responsible for milking cattle, they were historically barred from livestock ownership and the economic benefits of their labor.
Today, the cooperative has swelled to over 5,000 members, with more than 3,200 actively involved across Kajiado Central, East, and West. By organizing collectively, these women have bypassed predatory middlemen to secure fair prices for their milk.
“Through collective milk collection, processing, and marketing, members have improved market access and stabilized incomes,” the report notes.
Crucially, the cooperative has built resilience against the climate crisis. Following severe weather variability since 2015, the group diversified into value-added products like yogurt, ghee, and fermented milk. Beyond mere income, the cooperative is advancing gender equality by granting women financial control and fostering environmental sustainability through pasture conservation and water harvesting.
More than 1 billion people—about 12 percent of the global population—are members of one of the 3 million cooperatives worldwide.
The success in Kajiado and elsewhere reflects a massive global trend. The report highlights that cooperatives now employ at least 280 million people—10% of the global workforce—and count more than 1 billion people as members worldwide.
Unlike conventional businesses that prioritize shareholder returns, cooperatives function as democratic, member-owned enterprises. They reinvest surpluses into their communities, creating a safety net that prevents families from sliding back into poverty during economic downturns.
“Ending poverty requires more than income growth; it calls for inclusive and resilient economic systems that uphold dignity, equality, and social justice,” the report states.
Despite their proven success in reducing poverty, the report argues that cooperatives are often held back by outdated legal frameworks and limited access to capital.
The report issues an urgent “Call to Action” for governments and development partners to:
- Integrate cooperatives into national poverty-reduction strategies.
- Reform legal frameworks to guarantee cooperative autonomy and democratic governance.
- Expand access to finance through dedicated cooperative banks and value-chain support.
As the 2030 deadline for the Sustainable Development Goals approaches, the message from the cooperative movement is clear: when people are given ownership and a voice, poverty can be eradicated not just through charity, but through empowerment.
This report is based on the publication “Building a Better World Together: Cooperative Contributions to the SDGs,” released in support of the UN International Year of Cooperatives 2025.
