Empowering the Care Economy: Women-Led Cooperatives in South Asia

In South Asia, the burden of care—encompassing childcare, eldercare, and domestic support—has historically been relegated to the informal sector, characterized by unpaid, undervalued, and invisible labor performed predominantly by women. A recent report by the International Labour Organization (ILO) underscores a transformative shift: women are increasingly forming cooperatives to manage these care needs, effectively transitioning this labor into organized, decent work.

This movement is significant for several reasons. First, it addresses the 'care deficit' that often forces women out of the formal workforce. By pooling resources and professionalizing care services, these cooperatives provide reliable support systems that allow women to pursue economic opportunities while ensuring quality care for their families and communities. Second, these cooperatives act as engines of social inclusion. They provide a platform for collective bargaining, skill development, and financial independence, thereby challenging traditional gender roles and patriarchal structures that have long marginalized women’s contributions to the economy.

From a policy perspective, this model aligns with the broader goals of community-led development and gender equality. By formalizing care work, these cooperatives contribute to the 'Care Economy,' which is increasingly recognized as a critical pillar for sustainable development. Governments and stakeholders can leverage this model to design better social protection frameworks, ensuring that care workers receive fair wages, social security, and recognition. This bottom-up approach not only empowers individual women but also strengthens the social fabric by fostering community resilience and shared responsibility.

For India, where the female labor force participation rate (FLFPR) remains a critical policy concern, the cooperative model offers a scalable solution. It bridges the gap between domestic responsibilities and professional aspirations, providing a pathway for women to transition from informal, precarious work to stable, organized employment.