Cooperatives in various countries have often been regarded as an effective instrument for poverty reduction and job creation in the process of development. In this paper, the experience of some selected countries of both developed and developing ones have been studied as far as the role of cooperatives is accordingly concerned. Results of the study revealed that in developed countries, cooperatives in most cases have succeeded in establishing powerful enterprises to improve welfare of low-income groups. Among developing countries, India, Pakistan and Bangladesh - known as countries with wide-spread poverty- have gained success in alleviating poverty in rural areas through formation of agricultural cooperatives. Meanwhile, job creation for rural women through extending credit has been considerable. Results of the study also suggest that success of cooperatives in this respect depends on careful planning based on economic, social and cultural conditions, member loyalty and competent management.