Cooperatives and Community Development: A Perspective on the Use of Cooperatives in Development

Community developers have long understood the importance of local participation in the events and processes that shape communities. Effective, democratic, and people-and-place-centered development strategies have the potential to achieve such participation. This article suggests that cooperatives can be an effective participatory strategy to bootstrap low-income people into the socio-economic mainstream. Woolcock and Narayan's (2000) social capital and poverty transition model is adapted to demonstrate the development potential of cooperative businesses. We hope to stimulate discussion among community development scholars and practitioners, policymakers, and the public on the potential of cooperative business as a community development strategy, particularly in resource limited communities.