Strengthening cooperative legal frameworks is essential to guaranteeing the identity, autonomy, and development of the cooperative model. In this context, Cooperatives of the Americas, together with the World Bureau of the International Cooperative Alliance (ICA), ICA Africa, ICA Asia and Pacific, and Cooperatives Europe, developed the webinar “Cooperative Legal Framework Analysis (LFA) Unpacked,” with the aim of launching the second phase of the Cooperative Legal Framework Analysis (LFA), an initiative that is part of the Coops4Dev project, co-financed by the European Commission.
Continuity and strengthening of regional cooperative law
This new phase builds on the work developed during the first phase of the project (2016–2021), during which national reports on cooperative legislation were prepared using a harmonized methodology. These studies provided a comprehensive overview of the cooperative legal framework in each country, with particular attention to regulatory aspects related to the identity of cooperatives and their differentiation from other business forms, especially for-profit ones.
Based on these reports, it was possible to assess the extent to which current national legislation favored or hindered the development of cooperatives, determining their degree of “cooperative favorability.” Recommendations were also included for updating legal frameworks to strengthen their alignment with cooperative identity and principles.
In the case of the Americas, the following were developed 23 national reports, written by specialists in cooperative law from each country, in addition to a regional report prepared by Dr. Dante Cracogna.
The current project (2024–2028) seeks to consolidate and deepen this effort, advancing the review of legal frameworks and strengthening the advocacy and technical support components aimed at member organizations.
Cooperative legal identity and comparative studies in the region
Studies conducted in the region also identified common trends and challenges in the legal treatment of cooperatives. The methodology used, and its subsequent consolidation into a regional report consisting of a framework focused on the main aspects that characterize the legal treatment of cooperatives, enabled the identification of similarities and differences not always perceptible in a superficial observation.
The existence of general cooperative laws and respect for cooperative principles are common features in regional legislation. However, a deeper analysis of national experiences reveals significant difficulties, including excessive regulations, delays in incorporation procedures, and tax treatments that do not always correspond to the associative nature of these organizations. Limitations to the development of cooperatives are also observed in certain economic sectors, such as insurance and banking, as well as a tendency in some regulatory frameworks to treat them the same as corporations.
These comparative studies are highly useful for guiding advocacy efforts in the legislative arena and supporting the actions of the cooperative movement. The analysis allows for a better understanding of the experiences of different countries and contributes to strengthening cooperative law for the benefit of cooperatives.
Contributions from the Americas region to the cooperative legal debate
In this context, the importance of this type of effort for the regional cooperative movement was highlighted from the Americas region, with the participation of two speakers.
First, Sergio Reyes, a specialist in cooperative law and professor at the University of the Republic (Udelar) of Uruguay, who participated directly in the development of the studies for the first project, shared his experience and emphasized that the application of a common methodology in the reports opened a very relevant door for conducting comparative studies between national legislations.
She also explained that, based on the reports prepared, it was possible to identify the extent to which national legislation was aligned with cooperative principles or, conversely, tended to treat cooperatives as just another player in the capital sector. She further emphasized that these analyses provide key input for the design of public policies and fiscal frameworks that recognize the associative nature of the cooperative model.
Ecuador: regional influence in defense of the cooperative model
The second presentation from the region was given by Verónica Morales, Director of Digital Transformation and Strategic Planning from the Riobamba Cooperative, who addressed the case of Ecuador, where a legislative reform put the savings and credit cooperative model at risk by proposing its possible mandatory conversion into banks under traditional financial regulation.
Faced with this situation, the Ecuadorian cooperative movement joined forces with Cooperatives of the Americas and the ICA World Office to develop actions to incidencia pública that warned about the risks of distorting the cooperative model. This solidarity response included a statement issued in July 2025 and actions of institutional dialogue that contributed to the filing of a claim of unconstitutionality.
Subsequently, the Constitutional Court issued a resolution which halted the mandatory application of the rule. Although progress was made towards a scheme in which conversion would be voluntary, the debate continues to raise questions about how to protect cooperative identity and ensure that decisions of this kind truly reflect the will of the members.
Towards legal frameworks that promote cooperative development
For Cooperatives of the Americas, this second phase of the Cooperative Legal Framework Analysis (LFA) represents a great opportunity since the analysis of legal frameworks is not just an academic exercise, but constitutes a concrete tool to identify gaps, guide reform processes and generate evidence that supports the influence of the cooperative movement before the States.
In this context, the IX Continental Congress of Cooperative Law, which will be held in Panama next September within the framework of the activities of the ICA Global and Cooperatives of the Americas, will bring together international specialists to continue deepening the analysis and dialogue on the legal challenges of the cooperative model.
This space will contribute to strengthening the exchange of knowledge and promoting legal frameworks that fully recognize the identity, principles, and potential of cooperativism for sustainable development.
This event has been organized thanks to the financial assistance of the European Union. Its content is the sole responsibility of the International Cooperative Alliance and in no way reflects the views of the European Union.
