NEW YORK, May 10, 2025 –– As policymakers in Washington debate how best to invest in international development, the mission has taken on renewed urgency.
These investments must serve a higher purpose: to make America stronger, safer, and more prosperous. When seeking strategies to meet these goals, we need only turn to a model that has repeatedly proven itself within our own borders—the cooperative.
Cooperatives—enterprises that are member-owned, member-run, and member-serving—enable people to pursue economic progress collectively. They cultivate social and human capital while anchoring communities with shared ownership and democratic governance.
Today, there are 3 million cooperatives operating worldwide, representing 1.2 billion members. That means approximately 12% of the global population is part of a cooperative—a staggering figure that underscores the model’s expansive reach and enduring appeal.
As the CEO of SchoolsFirst Federal Credit Union and Chair of the Worldwide Foundation for Credit Unions, and as the CEO of the National Cooperative Business Association [NCBA], we share a deep commitment to the belief that cooperatives are essential to building stronger, more resilient communities, both in the U.S. and around the world.
In a time defined by global complexity and interconnectedness, it is more important than ever to deploy the cooperative model as a vehicle for advancing the shared interests and values of people around the world.
Cooperatives have long served as foundational pillars of economic development in the United States—and they continue to offer a powerful framework for fostering stability, prosperity, and security both nationally and internationally.
Across generations, Americans have used cooperatives to transform local economies, uplift families, and expand opportunity. Cooperative enterprises like Land O’Lakes, Ocean Spray, and Sunkist have given farm families the tools for economic security—helping countless parents send their children to college and participate more fully in civic life.
These are just a few emblematic examples. Close to 1,000 electric cooperatives today supply power to more than 42 million Americans in rural areas, ensuring they are not left behind in the modern economy. Many of these cooperatives are also leading efforts to bring broadband Internet to underserved communities—unlocking new opportunities for innovation, education, and shared prosperity.
Meanwhile, more than 4,500 credit unions serve as essential, member-owned financial institutions that provide affordable capital, lower fees and interest rates, and long-term financial security to more than 140 million Americans—from rural towns to urban centers.
Through economic empowerment, shared ownership, and democratic engagement, cooperatives create resilient communities—and those communities, in turn, make America stronger.
At a moment of economic uncertainty, the relevance of the cooperative model is greater than ever. And its benefits are not confined within our national borders.
The U.S. government has long supported the spread of the cooperative model abroad—where it continues to lay the foundation for stable, prosperous communities. By helping cooperative enterprises take root overseas, the United States strengthens local economies, bolsters global food security, and encourages democratic governance.
Take Indonesia, where the NCBA has helped thousands of small-scale farmers enhance spice and coffee production, substantially increasing their incomes through partnerships with American companies like Starbucks and McCormick.
In Peru, the NCBA collaborates with local farmers through the U.S. Department of Agriculture’s “Food for Progress” program, enabling long-term sourcing relationships with American buyers such as Frontier Co-op for high-quality, competitively priced ginger, turmeric, and oregano.
This work is more than a humanitarian endeavor that reflects the generosity of the American people and their values. It is also a strategic investment in America’s long-term security and economic strength.
Democratic, economically vibrant communities around the world make for secure trading partners and reliable markets for American goods. These relationships promote U.S. economic growth and counteract destabilizing efforts by adversarial regimes like China, Russia, and Iran.
International development must ultimately be judged by its outcomes—its return on investment—not merely by the bureaucratic pathways through which funds are dispersed. In this regard, cooperative development stands out.
For example, in Central and South America, data shows that cooperative members experience household income increases of up to 60%, making them at least 10% less likely to migrate in search of economic opportunity elsewhere.
By supporting cooperative development, we ease pressure on national governments, help communities withstand global shocks, and mitigate migration flows—thereby enhancing national and regional stability.
Regardless of future funding mechanisms, our guiding principle remains unchanged: we must build the economic strength and security of people and communities, powered by the enduring benefits of the cooperative model.
Cooperatives have always advanced American interests. By championing this model at home and abroad, we not only uplift our partners but also open new, vibrant markets for American goods and services.
Effectively managed taxpayer investments in cooperative development translate directly into a stronger America—growing innovative enterprises, solidifying ties with democratic allies, and fostering prosperity through expanded trade and economic engagement.
As every dollar of foreign aid increasingly comes under scrutiny, it is essential to prioritize models that demonstrate measurable, lasting impact. Cooperative development consistently delivers.
Ultimately, a global development strategy rooted in the cooperative model offers more than good intentions—it delivers clear, practical outcomes that align with American ideals and interests. It is a model for a world where development and diplomacy go hand in hand—and where America leads not only by power, but by principle.
The writers are Bill Cheney and Doug O’Brien, the CEO of SchoolsFirst Federal Credit Union and Chair of the Worldwide Foundation for Credit Unions, and the CEO of the National Cooperative Business Association, respectively.
SOURCE — International Policy Digest
https://thecooperator.news/swedish-cooperative-movement-marks-international-year-of-cooperatives/
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