Co-operatives Offer Solutions for Struggling Canadian Students

Canadian students are facing significant challenges, including rising housing costs, mental health crises, and food insecurity. While universities focus on media-driven rankings, they often overlook practical solutions that could address these pressing issues. One such solution is the co-operative model, which has long been a powerful force in the global economy, generating an estimated USD $2.79 trillion in 2023 alone. Despite this, co-operatives remain largely unrecognized within higher education.

The 2025 Canadian budget has acknowledged co-operative housing as a potential remedy for the housing crisis. However, the benefits of co-operatives extend far beyond housing. They can create spaces for students to practice democratic governance, foster community, and secure dignified employment and affordable essentials like food and shelter.

Understanding Co-operatives

Co-operatives operate under key principles akin to those of educational institutions. These include democratic member control, economic participation, autonomy, voluntary membership, educational opportunities, and a commitment to community welfare. Despite their potential, many students first encounter the concept of co-operatives in academic settings. Canada has a rich history of co-operatives, particularly during tough economic times such as the Great Depression.

In 2023, the top 300 global co-operatives were reported to hold a combined total of USD $2.79 trillion in assets. Vancity, a financial co-operative established in 1946 to serve the working-class community in east Vancouver, now boasts total assets of $36 billion. In total, co-operatives across Canada manage approximately $50.5 billion in assets and provide employment for over 100,000 individuals.

Innovative co-op models often emerge from marginalized communities, which have historically been left out of traditional economic structures. An example is Solid State Communities Industries, founded in 2015, known for its success in building a solidarity economy in Surrey, B.C., and led by diverse student groups.

The Global Co-operative Network

The history of co-operatives is rich with success stories, one of the most notable being the Mondragon Corporation. Founded in the 1950s in the Basque region of Spain, Mondragon started by manufacturing paraffin heaters and has expanded into various sectors, including finance, education, and health services. Today, Mondragon comprises 92 autonomous co-operatives and employs over 70,000 people. It also includes a university that educates approximately 5,000 students, offering them opportunities to engage in democratic governance throughout their educational experience.

Mondragon played a critical role during Spain’s economic downturn, using its co-operative framework to mitigate the impacts of job losses and social service cuts. The emphasis on research and innovation within co-operatives like Mondragon illustrates their potential to adapt and thrive in challenging conditions.

Another aspect of the co-operative movement is the Rotating Savings and Credit Associations (ROSCAs). As detailed by Caroline Shenaz Hossein in her book, “The Banker Ladies: Vanguards of Solidarity Economics and Community-Based Banks,” ROSCAs allow groups to pool funds and take turns receiving the total, fostering community trust and financial inclusion. Such models demonstrate how co-operative principles can operate effectively within everyday life and on university campuses.

Co-operatives are not without their challenges, as they are human-run organizations. Nevertheless, they offer a framework for democratic decision-making, fairness, and security. In a world facing existential threats, including climate change and rising authoritarianism, co-operatives present a viable model for building connections and providing affordable housing.

Canadian universities have an opportunity to shift their focus from competing for rankings to fostering a collaborative educational ecosystem. By incorporating co-operative principles into their frameworks, they can enhance their capacity to create and share knowledge.

The mention of co-operatives in the 2025 budget marks an important step forward. However, further efforts are necessary to integrate co-operatives into the academic landscape, improving education and well-being for students across campus.

Caroline Shenaz Hossein receives funding from the Canada Research Chair program. Michelle Stack has disclosed no relevant affiliations beyond her academic role.