Cooperatives in Palestine: Deep Roots and Promising Prospects on the International Day of Cooperatives

On July 5th of each year, the world celebrates the International Day of Cooperatives. This year, we celebrate under the slogan "Cooperatives Build a Better Future for Everyone," which holds special significance in the Palestinian context. Cooperatives are not just an economic model; they are an expression of the spirit of cooperation and community solidarity that has been rooted in Palestinian history for decades, becoming particularly evident during the first intifada and throughout various stages of occupation.

Deep Historical Roots

The roots of the cooperative movement in Palestine extend deep into history. Literature indicates that the emergence of the cooperative production model in historical Palestine dates back to the 1920s. In 1924, the first registered cooperative association in Palestine was established, an Arab association in Akka for tobacco producers, under British mandate rule. This beginning was not merely coincidental but reflected a genuine need for cooperation and solidarity in the face of economic and political challenges. The cooperative movement witnessed significant growth, with the number of cooperative associations increasing to 50 of various types by 1934, rising to 127 associations in 1937, and reaching 244 cooperatives by the end of 1946. This accelerated growth was not random but came within an organized legal framework, as the first cooperative law was issued, namely law number 53 of 1920, which was later amended by law number 50 of 1933 and the cooperative regulations of 1934, contributing to the spread and organization of cooperatives' work.

Cooperatives as a Model of Resistance and Resilience

What distinguishes the Palestinian cooperative experience from others is its close connection to national struggle and resistance. After the Nakba in 1948 and the establishment of the Zionist entity, the cooperative movement faced new challenges, especially after the occupation of the West Bank and Gaza Strip in 1967, where the occupation imposed obstacles and constraints on the development of the cooperative movement, enforcing military orders and unjust measures aimed at preventing the development of cooperative associations and restricting their activities. Despite these challenges, Palestinian cooperatives managed to maintain their existence and develop their roles, with 373 cooperative associations registered in the West Bank and 10 in the Gaza Strip during the period from 1970 to 1990. Cooperatives played a significant role in confronting occupation policies aimed at controlling the Palestinian economy and tying it to the Israeli economy. May the dear friend, the late Adnan Obeidat, rest in peace; he was a pioneer in organizing and managing cooperative associations in Palestine, hailing from his original homeland, Kafr Soum in Jordan.

The Developmental and Social Role

Cooperatives in Palestine represent a socio-economic model that embodies community cooperation and solidarity, contributing to the production process, particularly in agriculture, and serve as a model for detaching from dependence on the Israeli economy. They help break the vicious cycle of poverty and unemployment, enhance progress towards food sovereignty, and create a broader social base for the national economy. Furthermore, the cooperative nature of organizing work assists in filling gaps in community and political disengagement, and in building relationships at social, economic, and political levels among their members.
According to statistics from the Cooperative Work Authority of the Ministry of Labor in Palestine, the number of registered cooperatives in the West Bank by the end of 2018 was approximately 699, distributed across five main sectors: agriculture (37.6%), housing (31.8%), and services (24.2%), in addition to other sectors. Despite these figures, the Palestinian cooperative movement faces significant challenges, as statistics indicate that Palestinian participation in cooperative production remains below 1%, compared to a global average of around 12%. This reality reflects the need for more efforts to develop the cooperative sector and enhance its role in the Palestinian economy. Among the most prominent challenges facing Palestinian cooperatives today is the Israeli occupation's control over up to 76% of area classified as "C," which limits the cooperatives' ability to access land and natural resources.

Opportunities and Future Prospects

Despite the challenges, Palestinian cooperatives hold significant potential for contributing to economic and social development. Cooperatives are re-emerging as a productive model that protects land and offers a path to disentangle from the occupation market as much as possible, especially given the high unemployment rates among youth following the war on Gaza and the need to confront colonial control over resources. In Palestine, there is a General Cooperative Union, along with six sectoral cooperative unions, including the Union of Agricultural Cooperative Societies established in 1966 and the Union of Housing Cooperative Associations established in 1997, among others.

Recommendations and Future Vision

To enhance the role of cooperatives in Palestine, a series of measures and policies are needed. First, there is a need to develop the legal and organizational framework for cooperatives, especially after the Prime Minister dissolved and merged the Cooperative Work Authority and transferred its competencies to the Ministry of Labor.

Second, there is a need to increase awareness of the importance of cooperative work and to promote a culture of cooperation, especially among youth and university graduates. Third, it is essential to provide financial and technical support for cooperatives and develop training and qualification programs for workers in the cooperative sector.

Fourth, strengthen cooperation between cooperatives and civil and governmental institutions, and fifth, benefit from successful global experiences in the field of cooperatives, taking into account the Palestinian specificity and the colonial context that Palestine experiences.

On this International Day of Cooperatives, we remember that cooperation and cooperatives are not merely modern imported concepts but are part of the Palestinian heritage and collective identity of the Palestinian people. Since the 1920s, Palestinian cooperatives have proven their resilience and ability to develop despite all challenges. Today, in light of the United Nations declaring 2025 as the International Year of Cooperatives under the slogan "Cooperatives Build a Better World," Palestine stands before a golden opportunity to revive and develop the cooperative movement to become a real lever for the Palestinian economy and an effective means to confront economic and social challenges.

The philosophy of cooperation and cooperatives is not foreign to Palestinians; it intersects with the inherited values and traditions in Palestine, and it constitutes an important tool for holding onto the land and resisting colonial policies. What is required today is to restore the value of the cooperative sector and treat it as a fundamental economic and social safety net, not just a part of the free market system.

Palestinian cooperatives carry within them enormous potential to contribute to building an independent national economy capable of resilience, and they deserve all support and attention from society, government, and international institutions. Cooperatives are not merely economic entities; they are an expression of the spirit of the Palestinian people and their ability to cooperate and show solidarity in the face of the most difficult circumstances.