The World Council of Credit Unions (Woccu) is asking the G20 intergovernmental forum to recognise co-ops as essential to advancing financial inclusion in its 2025 Leaders’ Declaration.
In a letter to South African president Cyril Ramaphosa, Woccu‘s vice president of international advocacy, Paul Andrews, suggested the declaration adopt language supporting regulatory frameworks that enable co-op growth.
“We urge the G20 to encourage national governments to establish a regulatory environment that prevents bad actors from taking advantage of consumers while allowing credit unions to reach their local communities and support financial inclusion efforts,” wrote Andrews. “By taking these actions, the G20 can harness the power of co-operatives to build a world that is more united, equitable and sustainable.”
The letter also asks the G20 to take concrete steps to support and promote co-ops globally, including by creating favourable policies, providing financial support and facilitating knowledge exchange among co-ops.
“Nothing influences international financial regulatory guidelines more than the G20 Leaders’ Declaration,“ added Andrews. “If the South African presidency were to take concrete steps to support and promote co-operatives globally, it would have an incredibly positive impact on financial inclusion across the globe. It would also be an impactful way for the body to acknowledge and endorse the United Nations’ International Year of Cooperatives and the benefits of financial inclusion.”
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The letter also included a model statement for the G20 to use in its Leaders’ Declaration.
Previous G20 declarations have included references to co-ops. The 2024 G20 Brazilian Presidency recognised “the significant role of financial inclusion in improving financial wellbeing” and committed “to harness the potential of digital and emerging technologies to reduce inequalities”.
The 2023 Indian G20 Presidency embraced proportionality in the newly adopted sustainability disclosures issued by the International Sustainability Standards Board (ISSB).
Woccu sees both positions as positive, arguing that they “better enabled credit unions and other financial co-operatives to provide underserved populations with greater access to financial products and services”.
This year’s G20 theme is Solidarity, Equality, and Sustainability, which, Woccu argues, “is particularly timely and significant as it aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives.
“The focus on these principles is crucial for addressing the multifaceted challenges our world faces today,” says Andrews’ letter.
Image: Cyril Ramaphosa speaks at a foreign minister’s meeting of the G20 (Per-Anders Pettersson/Getty)
