UN+CENSORED,

Did you know that the United Nations has days, weeks, years and even decades of observances? If so, did you know that 2012 is the UN’s International Year of Cooperatives? No, didn’t think so.  So why does the United Nations bother with these observances?  According to the UN website:

United Nations observances contribute to the achievement of the purposes of the UN Charter and promote awareness of and action on important political, social, cultural, humanitarian or human rights issues. They provide a useful means for the promotion of international and national action and stimulate interest in United Nations activities and programmes.

 

To paraphrase, it allows the UN bodies to draw attention to particular issues, agendas or to commemorate certain events. This must be particularly important, given the unending scope of the UN and its affiliate bodies in the work that they do and the agendas they champion. Nothing too controversial here – the practice of commemoration by assigning a day of observance is common-place – in fact, we’ll be commemorating the signing of New Zealand’s founding treaty, Te Tiriti o Waitangi on the 6th of February in just a few short weeks (upcoming blog post? Maybe?).

By why is it the International Year of the Cooperatives?

 

The UN General Assembly Resolution (A/Res/64/432) details the reasons behind proclaiming the year 2012 to be the International Year of Cooperatives in its preambulatory section (UN Youth members will know exactly what I’m talking about):

It recognises that cooperatives “promote the fullest possible participation in economic and social development of all people, including women, youth, older persons, persons with disabilities and indigenous peoples, [and] are becoming a major factor of economic and social development and contribute to the eradication of poverty”

It notes with appreciation “the potential role of cooperative development in the improvement of the social and economic conditions of the indigenous peoples and rural communities”

Then how do cooperatives achieve all of these lofty goals, and what then, are cooperatives?

In essence they are owned and democratically controlled by their members – the people who use the co-op’s services or buy its goods – not by outside investors.

In many ways, cooperatives operate like any other business, but they do have a number of unique characteristics:

• they return surplus revenues to their members in proportion to their use of the co-op, not in proportion to their investment or share ownership

• conscious of the need to operate profitably rather than at a loss, co-ops meet their members’ needs either by buying members’ produce at the best price or by providing affordable and high quality goods and services, rather than maximising the co-op’s profit,

• they exist primarily to serve their members.

The global financial crisis

While the UN Resolution was passed in late 2009 before the global downturn, the timing of the IYC is particularly apt – in the midst of a lingering global financial crisis caused by managers incentivised to maximise profit without concern as to what are deemed “external” factors like environmental, social sustainability.

Are cooperatives answer to the financial crisis?  What are your thoughts?