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A Global but not Spontaneous Firm: Co-operatives and the Solidarity Funds in Italy

Author

Listed:
  • Andrea BERNARDI

    (Oxford Brookes University (United Kingdom))

  • Cécile BERRANGER

    (Manchester Metropolitan University (United Kingdom))

  • Anita MANNELLA

    (Roma Tre University (Italy))

  • Salvatore MONNI

    (Roma Tre University (Italy))

  • Alessio REALINI

    (Roma Tre University (Italy))

Abstract

Cooperatives are increasingly being recognized as important contributors to inclusive, sustainable and fair development. However, the cooperative movement faces a multitude of challenges, including lack of access to credit. The Italian cooperative sector features an important financing tool: the solidarity funds (Fondi Mutualistici in Italian). In 1992, Law 59 established these financial institutions that are owned by the cooperative associations. By law, all co-operatives have to transfer to the mutual funds (or to the Government if they do not belong to any co-operative association) 3% of their profits. In the past 25 years, the solidarity funds have been allocating large resources creating a financial virtuous cycle that could be inspiring for other nations. The solidarity funds promote innovative and inclusive cooperative practices as well as training and university education. Examples of similar initiatives can be found in other countries, mostly where the cooperation culture is more established. In this paper we look at Canada, France and the United Kingdom to further explore the nature and relevance of mutualistic finance.

Suggested Citation

  • Andrea BERNARDI & Cécile BERRANGER & Anita MANNELLA & Salvatore MONNI & Alessio REALINI, 2021. "A Global but not Spontaneous Firm: Co-operatives and the Solidarity Funds in Italy," CIRIEC Working Papers 2101, CIRIEC - Université de Liège.
    • Handle: RePEc:crc:wpaper:2101
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    File URL: https://www.ciriec.uliege.be/repec/WP21-01.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Non-bank financial institutions; Venture capital; Co-operatives; Labour managed firms; Employee ownership; mutual funds;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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