Co-operative economics

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Part of the series on
Cooperatives
Types of Co-operatives
Housing cooperative Building cooperative Retailers' cooperative Utility cooperative Worker cooperative Social cooperative Consumers' cooperative Agricultural cooperative Credit union Cooperative banking Cooperative federation Cooperative union Cooperative wholesale society Mutual insurance
The Rochdale Principles
Voluntary and open membership Democratic member control Member economic participation Autonomy and independence Education, training, and information Cooperation among cooperatives Concern for community
Political and Economic Theories
Anarchism Cooperative federalism Cooperative individualism Owenism Third way Socialism Socially responsible investing Social enterprise
Key Theorists
Robert Owen William King The Rochdale Pioneers G.D.H. Cole Charles Gide Beatrice Webb Friedrich Raiffeisen David Griffiths
Organizations
List of cooperatives List of cooperative federations International Co-operative Alliance Co-operative Party
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Co-operative economics is a field of economics, socialist economics, Co-operative studies, and political economy, which is concerned with co-operatives. Notable theoreticians who have contributed to the field include Charles Gide,^[1] Robert Owen,^[2] Beatrice and Sydney Webb,^[3] J.T.W. Mitchell, Paul Lambart,^[4] Race Mathews,^[5] David Griffiths,^[6] and G.D.H. Cole.^[7] Historical co-operative movements, such as the Rochdale Pioneers, have also contributed to the field.

Contents 1 Cooperative federalism versus cooperative individualism 1.1 Cooperative Federalism 1.2 Cooperative Individualism 2 Cooperative Commonwealth 3 References

[edit] Cooperative federalism versus cooperative individualism

A major historical debate in cooperative economics has been between cooperative federalism and co-operative individualism. In an Owenite village of co-operation or a commune, the residents would be both the producers and consumers of its products. However, for a Cooperative, the producers and consumers of its products become two different groups of people, and thus, there are two different sets of people who could be defined as its 'users'. As a result, we can define two different modes of cooperative organisation: consumers' cooperative, in which the consumers of a co-operatives goods and services are defined as its users (including food cooperatives, credit unions, etc.), and producer co-operatives, in which the producers of a cooperatives goods and services are defined as its users (which includes worker cooperative, agricultural producer cooperatives, etc.).

This in turn led to a debate between those who support Consumers' Cooperatives (known as the Cooperative Federalists) and those who favor Producers Co-operatives (pejoratively labelled ‘Individualist' Cooperativists by the Federalists’^[8] ).^[9]

[edit] Cooperative Federalism

Cooperative Federalism is the school of thought favouring consumer cooperative societies. Historically, its proponents have included JTW Mitchell, Charles Gide, Paul Lambart, and Beatrice Webb. The cooperative Federalists have argued that consumers' co-operatives should form co-operative wholesale societies (Cooperative Federations in which all members are cooperatives, the best historical example being the English CWS) and that these co-operative wholesale societies should undertake purchasing farms or factories. They argued that profits (or surpluses) from these cooperative wholesale societies should be paid as dividends to the member cooperatives, rather than to their workers.^[10]

[edit] Cooperative Individualism

Cooperative Individualism is the school of thought favouring Workers Cooperative societies. The most notable proponents of the latter in Britain being the Christian Socialists, and later writers like Joseph Reeves as a path to State Socialism.^[11] Where the Cooperative Federalists argued for Cooperative Unions. Where Consumers' Cooperatives federate, profits (or surpluses) from Cooperative Wholesale Socieites should be paid as dividends to their workers, rather member Cooperatives.^[12] The Mondragon Cooperatives are an economic model commonly cited by Cooperative Individualists, and a lot of the Cooperative Individualist literature deals with these societies.

Please note that these two schools of thought are not necessarily in binary opposition a priori, and that hybrids between the two positions are possible.^[13]

[edit] Cooperative Commonwealth

In some Cooperative economics literature, the aim is the achievement of a Cooperative Commonwealth; a society based on cooperative and socialist principles. Cooperative economists - Federalist, Individualist, and otherwise - have presented the extension of their economic model to its natural limits as a goal.

[edit] References

1. ^ Gide, Charles; as translated from French by the Co-operative Reference Library, Dublin, "Consumers' Co-Operative Societies", Manchester: The Co-Operative Union Limited, 1921
2. ^ Owen, Robert, "A New View of Society" (originally published in 1813/1814), in Gartrell, V.A. (ed.), "Report to the County of Lanark / A New View of Society", Ringwood: Penguin Books, 1970.
3. ^ Potter, Beatrice, "The Co-operative Movement in Great Britain", London: Swan Sonnenschein & Co., 1891.
4. ^ Lambert, Paul; as translated by Létarges, Joseph; and Flanagan, D.; “Studies in the Social Philosophy of Co-operation”, (originally published March 1959), Manchester: Co-operative Union, Ltd., 1963.
5. ^ Mathews, Race, "Building the society of equals : worker co-operatives and the A.L.P.", Melbourne: Victorian Fabian Society, 1983.
6. ^ Charles, Graeme, and Griffiths, David, “The Co-operative Formation Decision: Discussing the Co-operative Option”, Frankston: Co-operative Federation of Victoria Ltd., 2003 and 2004
7. ^ Cole, G.D.H., “The British Co-operative Movement in a Socialist Society: A Report for the Fabian Society”, London: George Allen & Unwin Ltd., 1951., and Cole, G.D.H., “A Century of Co-operation”, Oxford: George Allen & Unwin for The Co-operative Union Ltd., 1944.
8. ^ Lewis, p. 244.
9. ^ This analysis is based on a discussion by Gide, Charles; as translated from French by the Co-operative Reference Library, Dublin, "Consumers' CoOperative Societies", Manchester: The Cooperative Union Limited, 1921, pp. 192-203.
10. ^ This analysis is based on a discussion by Gide, Charles, pp. 192-203.
11. ^ Reeves, Joseph, “A Century of Rochdale Cooperation 1844-1944”, London: Lawrence & Wishart, 1944.
12. ^ This analysis is based on a discussion by Gide, Charles, pp. 192-203.
13. ^ This analysis is based on a discussion by Gide, Charles, pp. 192-203.