UN Message for the International Day of Cooperatives

(July 04, 2009) At a time of global economic distress, the economic model of cooperative movement s needs to be more widely known and practices to ease the impact of the credit crunch on most vulnerable. UN Chief Ban Ki Moon made this observation in a message on the occasion of International Day of Cooperatives, celebrated on the first Saturday of July. The theme of this year’s observance of the International Day of Cooperatives – “Driving Global Recovery through Cooperatives” – highlights the value of cooperative enterprise. Cooperatives can strengthen the resilience of the vulnerable. They can help to establish more balanced markets for small farmers and give small entrepreneurs access to financial services. They can create job opportunities and improve working conditions. The economic model of cooperatives, Mr Ban said, is based not on charity but on self- help and reciprocity. In countries hit by the financial crisis, the cooperative bank and credit union sector expanded lending when other financial institutions had to cut back, easing the impact of the credit freeze on the most vulnerable. This highlights the importance of strong alternative business models and institutional diversity for the resilience of the financial system. Cooperatives deserve greater support. Ban therefore called on the Governments to adopt policies that support the establishment and development of cooperatives. Consumers, too, can help by buying food produced by small- holder cooperatives that is traded in fair markets.