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

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

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

[edit] Co-operative Federalism Vs. Co-operative Individualism

A major historical debate in Co-operative economics has been between co-operative 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 Co-operative, 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 co-operative organisation: consumers' co-operatives, in which the consumers of a co-operatives goods and services are defined as its users (including food co-operatives, credit unions, etc.), and producer co-operatives, in which the producers of a co-operatives goods and services are defined as its users (which includes worker co-operatives, agricultural producer co-operatives, etc.).

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

[edit] Co-operative Federalism

Co-operative Federalism is the school of thought favouring consumer co-operative societies. Historically, its proponents have included JTW Mitchell, Charles Gide, Paul Lambart, and Beatrice Webb. The co-operative Federalists have argued that consumers' co-operatives should form co-operative wholesale socieites (Co-operative Federations in which all members are co-operatives, 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 co-operative wholesale societies should be paid as dividends to the member co-operatives, rather than to their workers.[10]

[edit] Co-operative Individualism

Co-operative Individualism is the school of thought favouring Workers Co-operative 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 Co-operative Federalists argued for Co-operative Unions. Where Consumers' Co-operatives federate, profits (or surpluses) from Co-operative Wholesale Socieites should be paid as dividends to their workers, rather member Co-operatives.[12] The Mondragon Co-operatives are an economic model commonly cited by Co-operative Individualists, and a lot of the Co-operative 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] Co-operative Commonwealth

In some Co-operative economics literature, the aim is the achievement of a Co-operative Commonwealth; a society based on cooperative and socialist principles. Co-operative 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' Co-Operative Societies", Manchester: The Co-Operative 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 Co-operation 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.