Cooperatives Show Resilience Amid Global Economic Uncertainties
Cooperatives and mutual businesses demonstrate higher resilience and survival rates amid economic challenges, with experts calling for stronger policy support.
- • Cooperatives operate on democratic principles contrasting with capital-based power in stock companies.
- • Quebec cooperatives have a 64% survival rate after five years, higher than other businesses.
- • Basque Country shows strong cooperative employment at 13% of workforce.
- • Experts stress the importance of policy support and alliances for cooperative growth.
Key details
In the face of geopolitical conflicts, trade wars, and climate change, cooperative and mutual business models are proving increasingly resilient and economically significant worldwide, particularly in French-speaking regions like Quebec. According to experts featured in a recent analysis, cooperatives operate on democratic governance principles—one person, one vote—as opposed to stock companies, which are influenced by capital ownership. This model fosters a more equitable distribution of surplus and enhances survival during economic crises.
In Quebec, the survival rate for cooperatives is 64% after five years and 44% after ten years, notably higher than the 35% and 19.5% survival rates for other business types, respectively. Regions such as the Basque Country also exemplify the social economy’s importance, where cooperatives provide 13% of employment. This rising prominence coincides with a globally turbulent economic environment, where the IMF forecasts modest global growth decreases from 3.3% in 2024 to 3.1% in 2026, underscoring the importance of economic models capable of enduring shocks.
Experts like Sonia Tello Rozas of ESG-UQAM and Rafael Ziegler of HEC Montreal emphasize that cooperatives can leverage alliances and federations to address shared challenges with support from institutions such as the International Institute of Cooperatives Alphonse-et-Dorimène-Desjardins. Policymaker backing remains crucial to advance cooperative sectors as a counterbalance to dominant capitalist models. Ziegler stresses the need for better visibility and communication with governments to sustain cooperatives’ relevance amid autocratic trends globally.