This paper aims to highlight the role of solidarity funds in the development and support of national co-operative movements. Those are financial institutions specialized in supporting the start-up and growth of co-operatives. By adopting a case study approach, our analysis shows that solidarity funds emerged globally with similar objectives. Our international comparison focuses on Italy but includes France, the United Kingdom and Québec as a specific Canadian province with a French institutional environment. Despite their crucial importance, there is limited available research on this subject. To this end, our paper has policy implications; we need to consider establishing such institutions in countries where co-operatives are lagging behind as traditional financial institutions are often unable to finance co-operatives because of their property rights regime.
Purpose This paper aims to provide an introduction to how worker co-operatives and other organisations based on principles of the participatory economy have been adopted in a range of international contexts as a vehicle for transforming places with a strong aspiration to address location-specific social challenges. Design/methodology/approach Through a presentation of four narrative cases, the paper exemplifies international experiences of co-operative approaches to place-making. It critically reflects on the philosophical and strategic underpinnings of the projects implemented in Rochdale, Preston, Bologna, Rome and Cincinnati. Findings The practical experiences of a number of local projects of place-making involving co-operatives are conceptualised. The research has identified the importance of institutional, organisational and legal constraints for transformative cooperative-based place-making initiatives. It shows a strong relevance of the place’s historic legacy and communal governance for the choice of place-making approaches. Research limitations/implications Further investigation is needed to establish whether co-operatives have the same driving force potential in terms of local regeneration and community wealth building place-making in non-Western contexts and less developed locations. Practical implications The paper highlights cases that incorporate place-making practices involving the co-operative organisation and municipal participation and considers their transferability potential. Originality/value The paper advances an important conversation relevant to researchers, educators, co-operators, politicians and local officials on diverse contemporary approaches in towns and cities that seek to reshape and regenerate local socio-economic fabric by engaging tradition, principles and organisation models developed within the co-operative movement.
Cooperatives are increasingly being recognized as important contributors to inclusive, sustainable and fair development. However, the cooperative movement faces a multitude of challenges, including lack of access to credit. The Italian cooperative sector features an important financing tool: the solidarity funds (Fondi Mutualistici in Italian). In 1992, Law 59 established these financial institutions that are owned by the cooperative associations. By law, all co-operatives have to transfer to the mutual funds (or to the Government if they do not belong to any co-operative association) 3% of their profits. In the past 25 years, the solidarity funds have been allocating large resources creating a financial virtuous cycle that could be inspiring for other nations. The solidarity funds promote innovative and inclusive cooperative practices as well as training and university education. Examples of similar initiatives can be found in other countries, mostly where the cooperation culture is more established. In this paper we look at Canada, France and the United Kingdom to further explore the nature and relevance of mutualistic finance.
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