The Cooperative Model in Microfinance: More Current and Pertinent Than Ever

This paper highlights the pertinence of the cooperative model in microfinance. It focuses on their contribution towards socio-economic development, particularly their impact on poverty reduction, job creation, and social integration. The paper demonstrates that cooperatives were more resilient than banks during the financial crisis of 2008-09. It provides examples of partner institutions of Développement international Desjardins (DID) and Proxfin international network that demonstrate the success of cooperative principles. The paper states that cooperatives reach significantly more individuals and families in the microfinance sector than other financial institutions. They have helped to improve access to finance for all. Financial cooperatives contribute to social development and improved living conditions in communities. They constantly innovate. They can fully assume their role in redefining the global financial sector if their importance and specific nature is recognized. They contribute to global socio-economic development by:

• Creating sustainable local prosperity;
• Making it possible for all individuals to become self-sufficient;
• Helping to safeguard against excesses, risks, and overly aggressive practices;
• Making members more resilient to external shocks;
• Participating in the creation of quality jobs;
• Being major drivers of economic growth;
• Encouraging innovation and sustainable development.