UN Resolution on the Social and Solidarity Economy: What does it mean for cooperatives?

On the 18th of April, the United Nations General Assembly adopted a resolution on promoting the social and solidarity economy (SSE) for sustainable development [1]. This was lauded as an important and historic event by SSE organizations and several countries’ governments that promoted it. PromoCoop was also among the organizations that welcomed and highlighted the importance of this event.

It is undeniable the political significance of a UN Resolution that recognizes and acknowledges SSE organizations, their principles and values, and the work they do towards sustainable development. But what does it all mean, particularly for cooperatives?

It is important to recall that, within the UN social development issues, cooperatives have a specific place. In fact, cooperatives are a specific category under “social issues” for the UN Department of Economic and Social Affairs [2]. UN Resolutions about cooperatives, similar to the one just adopted regarding SSE, exist since 1993, recognizing the role of cooperatives "in the light of new economic and social trends" [3] and, more recently, reaffirming the "role of cooperatives in the implementation of the 2030 Agenda" [4]. These resolutions have been followed by reports by the Secretary-General detailing the progress on the issues [5].

Despite this formal recognition of cooperatives, which doesn’t exist for other types of SSE organizations, the reality is that the UN has been dwindling its resources for cooperative-related initiatives for the past decade. So, in terms of political significance, the SSE resolution may dilute even further the role that cooperatives have within the UN structure. The cooperative movement will have to share scarce political and financial resources with the broader group of SSE organizations. While this may be challenging, it also presents an opportunity. The understanding and acceptance of SSE has been growing in many countries and cooperatives can also benefit from it. To reap the benefits, the cooperative movement will have to integrate fully within this larger group and make sure its specificities are taken in consideration. After all, cooperatives are a major part of the social and solidarity economy in terms of numbers and socioeconomic impact. This preponderance of cooperatives within the SSE also gives them an added responsibility of assuming co-leadership of the sector. The experience of countries where cooperatives have successfully integrated within the larger concept of social and solidarity economy shows that this can lead to good results for cooperatives. In some countries and sectors, however, this integration has not been easy, and challenges remain.

In addition to the political significance of the Resolution, that can always be used as a reference document when preparing other policy positions, there are other ways that SSE organizations, including cooperatives, can benefit from this instrument. The Resolution addresses three main stakeholders:

• Members States (i.e., governments), which are encouraged to “promote and implement national, local and regional strategies, policies and programmes for supporting and enhancing the social and solidarity economy as a possible model for sustainable economic and social development”.

• Entities of the UN Development System (e.g., FAO, UNDP), including national offices, which are encouraged to “give due consideration to the social and solidarity economy as part of their planning and programming instruments”.

• Multilateral, international and regional financial institutions and development banks, which are encouraged to “support the social and solidarity economy, including through existing and new financial instruments and mechanisms”.

As is often the case with UN policy documents, the wording is somewhat general and does not create mandatory actions. This means that it will be up to SSE organizations to push for these measures at national and international level through strong advocacy strategies. Policymakers in these institutions will probably not be aware of this resolution and/or of the significance of cooperatives and the broader SSE regarding the achievement of the SDGs. The Resolution creates a political responsibility that is actionable, but if there are no strong efforts from the potential beneficiaries, probably no action will be taken. To benefit from concrete policies such as financing, cooperatives and other SSE organizations will need to actively demand them and collaborate with policymakers in their design and implementation.

This important political achievement, stemming from several years of advocacy work, should be followed-up with strong national advocacy strategies to ensure it brings about meaningful outcomes.