Cooperatives as Tools for Poverty Alleviation and Welfare Enhancement: A Case Study of Developing Countries

Muhammad Ameer Fakhri and Doris Padmini Selvaratnam
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Muhammad Ameer Fakhri: Faculty of Economics and Management, University Kebangsaan Malaysia
Doris Padmini Selvaratnam: Faculty of Economics and Management, University Kebangsaan Malaysia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 6, 3139-3154

Abstract: There are many approaches to minimise poverty in developing countries, namely self-help groups and cooperatives. This study investigates the role of cooperatives in alleviating poverty and enhancing welfare in developing countries, through the dual lens of the Social and Solidarity Economy (SSE) and Amartya Sen’s Capability Approach (CA). Using an entirely qualitative approach grounded in secondary data, the paper synthesises peer-reviewed studies and selected case studies from Iran, Brazil, and India. The findings suggest that cooperatives enhance fundamental freedoms by expanding access to services, promoting inclusive economic opportunities, and fostering community empowerment. While cooperatives are effective instruments of poverty alleviation, their impact is contingent upon autonomy, human capital, and favourable policies by the government.

Date: 2025
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