Resilience of CooperativesLessons from Italy

Carlo Borzaga, University of Trento - Euricse

Loans per bank's size

Growth rates of added value and profits in JSC and Coops - 2006-2010

2006-2007 2007-2008 2008-2009 2009-2010 2006-2010

Joint stock companies: 20.082

Added value 6.96 0.73 -6.75 5.99 6.49

Profits 26.35 -19.08 -47.49 67.37 -10.15

Cooperatives: 8.230

Added Value 9.24 5.54 2.26 5.79 24.72

Profits 25.35 -58.34 -31.51 -3.63 -65.53

Growth rates of cost of labour and remunerations in JSC and Coops

2006-20102006-2007 2007-2008 2008-2009 2009-2010 2006-

2010

Joint stock companies: 20.082

Cost of labour 5.86 4.73 -2.86 4.67 12.72

Out of which: remunerations

5.72 4.49 5.19 5.49 22.58

Cooperatives: 8.230

Cost of labour 9.18 7.55 3.46 6.59 29.50

Out of which: remunerations

7.91 7.68 3.73 6.30 28.14

Explaining reasons

Cooperatives are created to satisfy needs shared by their members

In joint stock companies shareholders expect to gain profits

In times of crisis – needs increase– cooperatives tend to preserve employment and

production, reducing profit margins whenever necessary

– joint stock companies tend to protect the financial resources of their activities; hence they are more sensitive to the cyclical nature of the economic system