The United Nations has declared 2012 the International Year of Co-operatives and kick-off events took place all over the country today including Yellowknife and Iqaluit.

Co-operatives are businesses owned and operated by a group of people, often customers, producers or employees, for their mutual benefit. The organizations serve their communities, and pay out dividends to members when the business makes a profit.

Andy Morrison, chief executive officer of Arctic Co-operatives Limited, says having the United Nations recognize the importance of co-ops is very positive. (CBC)

Roughly a billion people around the world are involved with them – including about 20,000 in the Canadian North, where co-ops have thrived.

"The recognition of the United Nations general assembly for this really important initiative is very positive,” said Andy Morrison, chief executive officer of Arctic Co-operatives Limited.

"Co-operatives have developed support systems. They have something to fall back on in difficult times. And so co-operatives are the strongest today they've ever been."

When the first co-ops in the North started more 50 years ago, very few people knew about them. Cape Dorset's Pingwartok Ottokie says his relatives were among the first members.

"Inuit had a vision back in 1959, today we are very proud to be creating that vision," said Ottokie, a member of Arctic Co-operatives’ board of directors.

Still co-ops aren't without their problems. In particular, a lack of training for board members, who are supposed to have control over the business but often don't have a good enough understanding of how businesses work.

Also, some need more warehouse space to stockpile large quantities of non-perishable food brought by sealift, to avoid higher air freight charges on foods no longer subsidized under the Nutrition North program.

"Resolute Bay itself should have more storage facilities to have a year's worth of food in the community," said Ron Elliott, MLA for Quttiktuq. "But as far as I know, the co-op's extended already and doesn't have the financial resources to do that."