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The solution for a New Economic Paradigm

Cooperatives thrive in times of crisis:


The financial and ensuing economic crisis has had negative impacts on the majority of enterprises; however, cooperative enterprises around the world are showing resilience to the crisis. Financial cooperatives remain financially sound; consumer cooperatives are reporting increased turnover; worker cooperatives are seeing growth as people choose the cooperative form of enterprise to respond to new economic realities. Why is this form of enterprise proving so resilient?

Cooperatives are member-owned businesses. The simplest way to understand them is that they aggregate the market power of people who on their own could achieve little or nothing, and in so doing they provide ways out of poverty and powerlessness. Ujamaa Empowerment Network seeks to promote the Cooperative model as an alternative solution to change our economic situation.

There are historical evidence and current empirical evidence that proves that the cooperative model of enterprise survives crisis, but more importantly that it is a sustainable form of enterprise able to withstand crisis, maintaining the livelihoods of the communities in which they operate.

Strength is not something that happens by chance it must be built up. It is the strength built up by cooperatives during the good times that helps tide them over a recession. The cooperative model provides comparative advantages, but no magic formula for success. However, it is interesting to see just how strongly cooperative banks, savings and credit cooperatives and credit unions are performing during the current banking crisis, and how little help they have needed from governments, in contrast to their investor-owned competitors who have had to be bailed out with staggeringly large amounts of public funding. What is remarkable is that worldwide hardly any cooperative banks or credit unions have had to ask for government help. Why should the cooperative model have proved so strong?

This site uses social network tools and features to forward the cooperative endeavor among people who seek to establish business. In understanding and using the cooperative model we encourage our members to use the site to build and grow their business as well as use other traditional methods to build and grow financial stability.

Cooperatives are guided by seven cooperative principles: voluntary and open membership; democratic member control; member economic participation; autonomy and independence; education, training and information; cooperation among cooperatives; and concern for community. They guarantee the conditions, under which members own, control and benefit from the business. The education principle is a commitment to make membership effective and so is a precondition for democratic control, while cooperation among cooperatives is really a business strategy without which cooperatives remain economically vulnerable.

Get involved in building cooperatives in your community, family, churches, schools, and anywhere where people can work together to change an unacceptable condition. We at Ujamaa Empowerment Network seek to advance the growth of cooperative model in the community around us as a solution to our economic situation.

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