A cooperative federation or secondary cooperative is a cooperative in which all members are, in turn, cooperatives.[1] Historically, cooperative federations have predominantly come in the form of cooperative wholesale societies and cooperative unions.[2] Cooperative federations are a means through which cooperatives can fulfill the sixth Cooperative Principle, cooperation among cooperatives. The International Cooperative Alliance notes that “Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.”[3]
A secondary cooperative is a cooperative business democratically controlled by its members, all of whom are themselves cooperatives and share certain aims or values in common. The secondary cooperative can be a way for these cooperatives to do things that help achieve their aims that they would not be able to do by themselves. Secondary cooperatives have been used in a number of sectors already – Credit Unions, Housing Cooperatives and Social Change Cooperatives for example.
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