Why Do Cooperatives Succeed? A Comparative Analysis of the Global South and North

Abstract

This article investigates why only some cooperatives succeed. World Cooperative Monitor 2021 reveals that Europe and USA have maximum high-performing cooperatives (based on turnover), while the representation of developing countries in the list of the world’s top cooperatives is meagre. According to the data source of Cooperative Monitor, out of the top 300 coops worldwide, Europe has 159, the USA has 95, the Asia-Pacific region has only 46, and Africa has none. Therefore, this study becomes very pertinent in understanding the performance differences of cooperatives in the Global South vis-à-vis Global North. This study tries to identify the factors that determine the performance of cooperatives operating in both regions. By using Cooperative Monitor’s (2021) data set, the article tries to link the performance of cooperatives with the macro conditions. The democratic condition of a country (macro-level) may influence the performance of institutions at the meso-level (cooperatives). We found that cooperatives in the Global North in countries with higher democratic values have performed better than the cooperatives in the Global South. The study finds that the performance of cooperatives is positively related to democratic values. However, no significant relationship is found between social inclusiveness and the performance of cooperatives.