ILO highlights key role of cooperatives in EU external action

BRUSSELS (ILO News) – Cooperatives and other entities in the social and solidarity economy are vital to foster genuine local ownership, resilient economies and decent work across EU external action. Speaking at a panel, Carlien van Empel, Director of the ILO Office for the EU and the Benelux countries, emphasized the role of people-centered businesses in fostering inclusive economic growth.

The event “From aid to ownership: rethinking development through a cooperative lens” was organized by Cooperatives Europe. The panel discussion on “The future of people-centred businesses in the EU External Action Agenda”, brought together perspectives from the ILO, Enabel – the Belgian development agency – the European Commission and CONCORD Europe.

“Cooperatives can help ensure that investment generates decent work and benefits that are locally anchored and sustained over time,” van Empel said. Across sectors such as energy, transport, digital services, agriculture, care and finance, they can participate as enterprises, suppliers, service providers, financial institutions and community partners.

The Director outlined ways in which the ILO’s work on cooperatives and the social and solidarity economy (SSE) can reinforce EU external action priorities.

First, the ILO brings a unique normative framework, including the Recommendation on the Promotion of Cooperatives (2002), which was complemented in 2022 when ILO constituents adopted a Resolution on decent work and the social and solidarity economy. The Recommendation has informed cooperative policy and legislation in 120 countries. This framework has also informed the wider multilateral agenda on SSE, including at the level of the UN General Assembly.

As highlighted by the universal definition, a strong social and solidarity economy can contribute to inclusive, resilient and sustainable economies and societies, and support decent work, productive employment and improved living standards for all, said Carlien van Empel, Director of the ILO Office for the EU and the Benelux countries

Second, the ILO can help develop stronger national ecosystems. Beyond SSE legislation, countries need appropriate policies, capable institutions, social dialogue, and safeguards to protect the autonomy of cooperatives, which are independent economic actors, and should not be created for the purpose of international cooperation nor be used as international cooperation delivery mechanisms.

The Director highlighted several successful practical applications. In Tunisia, the EU-funded JEUN’ESS project supported over 170 SSE entities, contributing to more than 3,600 decent jobs. In the care economy, the ILO promotes cooperative models to help formalize domestic workers and caregivers in Colombia, Palestine, and Zimbabwe. In Burkina Faso, Mali, and Uganda, ILO initiatives engage cooperatives to combat child and forced labour and improve occupational safety and health.

Looking ahead, van Empel stressed the potential for cooperatives within the EU’s Global Gateway Strategy. Through joint methodologies like employment impact assessments and programmes in Liberia, Bangladesh, and across Africa, the ILO works to ensure that large investments deliver quality jobs. She invited the European Commission and development partners to explore more systematically how cooperatives and the wider social and solidarity economy can contribute to Global Gateway investments, and how this potential can be unlocked.