Cooperative model should be encouraged, says Oxfam in new study

“Last year, the number of billionaires saw its biggest increase in history, with the emergence of a new billionaire every two days. This incredible boom equals seven times the amount that would be necessary to end extreme poverty in the world. 82% of the wealth created in the world last year has benefited the richest 1%, while the situation has not changed for the poorest 50%, “says Oxfam in a new study published in January 2018 at the summit of Davos.

And to specify: “Trade and investment have the power to spread opportunities, products, services and prosperity in a very broad way, but increasingly, decisions are made only through the prism of optimizing the income of the richer shareholders, this straitjacket forces current economic activities to exacerbate inequalities. ”

However, we note that “companies, social movements and entrepreneurs develop a set of concepts to try to break free of this straitjacket. These concepts include cooperatives, models of employee participation, mission primacy, for-profit companies, social enterprises and fair trade companies. Studies reveal that companies owned by their employees generate higher employment growth and higher wages. For example, Mondragón is a Spanish multinational cooperative with a turnover of 13,000 million dollars and 74,000 employees. Decisions are made democratically, labor security is encouraged, and the highest salary earner does not earn more than nine times the lowest salary. Our economies could be built by following these progressive structures on the condition that policy makers give priority to policies to fund, support and encourage these models.”

The study is available here (French): https://www.oxfam.org/fr/rapports/partager-la-richesse-avec-celles-et-ceux-qui-la-creent