Globalisation and relevance of cooperatives for inclusive growth

There is a common feeling that the cooperatives are on decline. The original rationale for cooperatives has ebbed away. However, the recent study by ILO has provided evidence that cooperatives are more sustainable and are able to withstand a crisis. Furthermore, it can be argued that in today's complex and globalised world there is a more meaningful role for cooperatives to play. Experience around the world shows that cooperatives have been strong in those countries where they have received policy support from the government in the initial stages. Countries with the most significant number of people in cooperative membership are India, China and the US. The countries with significant presence of cooperative banks are Germany, France, the Netherlands and Italy. The success of cooperatives depends mainly on two factors i.e. the degree of government control and the extent of member participation. In today's market and technology driven globalised environ-ment, it also matters whether and to what extent they are enhancing their productivity and are prepared to face competition.