Cooperatives are an effective tool to empower the workers.

Cooperatives are an association of people who pool their resources together to achieve common economic goals. Cooperative societies are often formed on the basis of occupation. Eg. Farmer's cooperative, Weaver's cooperative, etc. The deposits of the members are extended to the bank as collateral by the cooperative. The large loan obtained by the cooperative is used to provide smaller loans to members who would otherwise be unable to avail them. Further lending takes place when these loans are repaid. Thus cooperatives are a very tool of the workers.