Owen believed in putting his workers in a good environment with access to education for themselves and their children. These ideas were put into effect successfully in the cotton mills of New Lanark , Scotland .
Robert Owen (1771–1858) Fathered the cooperative movement. A Welshman who made his fortune in the cotton trade
Owen had the idea of forming "villages of cooperation" where workers would drag themselves out of poverty by growing their own food, making their own clothes and ultimately becoming self-governing. He tried to form such communities in Orbiston in Scotland.
It was here that the first co-operative store was opened.
His efforts bore fruit in the international cooperative movement, launched at Rochdale, England, in 1844. Owen died on November 17, 1858, in his home town of Newtown
He founded a monthly periodical called The Cooperator , the first edition of which appeared on May 1 , 1828 . This gave a mixture of cooperative philosophy and practical advice about running a shop using cooperative principles.
King advised people not to cut themselves off from society , but rather to form a society within a society, and to start with a shop because, "We must go to a shop every day to buy food and necessaries—why then should we not go to our own shop?"
He proposed sensible rules, such as having a weekly account audit, having 3 trustees, and not having meetings in pubs (to avoid the temptation of drinking profits).
Beatrice Webb was the author of The Co-operative Movement in Great Britain (1891).
Charles Fourier should also be mentioned as an important influence. The Pioneers established the first consumer cooperative, leading to a worldwide movement. They also experimented with a producer cooperative, which soon failed .
A few poor weavers joined together to form the Rochdale Equitable Pioneers Society at the end of 1843. The Rochdale Pioneers , as they became known, set out the Rochdale Principles in 1844, which have been highly influential throughout the cooperative movement.
As its initial project, the society organized a grocery store , a venture that rapidly prospered. The principles developed for the guidance of this enterprise and others organized by the Rochdale Society have served, with codifications in emphasis, as the basic code of the consumer cooperative movement since that time.
The successful example of cooperative business provided by the Rochdale Society, which also established between 1850 and 1855 a flour mill, a shoe factory, and a textile plant , was quickly emulated throughout the country.
By 1863 more than 400 British cooperative associations, modeled after the Rochdale Society, were in operation. Thereafter the English movement grew steadily, becoming the model for similar movements worldwide.
Worldwide, some 800 million people are members of cooperatives, and it is estimated that cooperatives employ some 100 million people.
World Cooperative Movement
UK, France, Germany, Belgium, Austria, Italy, Denmark, Finland, Norway, and Sweden.
Notable among the European countries in which consumer cooperation received early popular support were France, Germany, Belgium, Austria, Italy, Denmark, Finland, Norway, and Sweden.
Euros 11B housing health Credit union doctor Football club buying Whole foods care leisure consumers workers Euros 1.3 B Source: Mr. Bob Burlton Midcounties Co-operative, United Kingdom Aug. 2006 agriculture
Credit unions are also established in the UK. The largest are work-based, but many are now offering services in the wider community.
The Association of British Credit Unions Ltd ( ABCUL ) represents the majority of British Credit Unions.
both noted for promoting ethical investment The UK Co-operative Group insurance provider CIS Co-operative Bank
Building cooperative British Building Societies developed into general-purpose savings & banking institutions with "one member, one vote" ownership and can be seen as a form of financial cooperative (although many ' de-mutualised ' into conventionally-owned banks in the 1980s & 1990s).
Building cooperative Members of a building cooperative (in Britain known as a self-build housing cooperative) pool resources to build housing, normally using a high proportion of their own labour. When the building is finished, each member is the sole owner of a homestead, and the cooperative may be dissolved .
This collective effort was at the origin of many of Britain's building societies , which however developed into "permanent" mutual savings and loan organisations, a term which persisted in some of their names (such as the former Leeds Permanent ).
Nowadays such self-building may be financed using a step-by-step mortgage which is released in stages as the building is completed. The term may also refer to worker cooperatives in the building trade
Agricultural cooperative Agricultural cooperatives are widespread in rural areas.
out by private traders, producers In Britain agricultural marketing is carried ’ cooperatives, and marketing boards for certain products. The number of marketing boards has been steadily reduced over the past 20 years.
Co-operative Wholesale Society According to cooperative economist Charles Gide , the aim of a cooperative wholesale society is to arrange “bulk purchases, and, if possible, organise production.”
The best historical example of this were the English CWS and the Scottish CWS, which were the forerunners to the modern Co-operative Group
Cooperative Bank, Credit Union & Coop Savings Bank The Co-operative Bank's head office, 1 Balloon Street, Manchester . The statue in front is of Robert Owen , a pioneer in the coopmovement Credit Unions provide a form of cooperative banking
Other important European banking cooperatives include the Crédit Agricole in France, Migros and Coop Bank in Switzerland and the Raiffeisen system in many Central and Eastern European countries . European Banking Cooperative
A remarkable development has taken place in Poland , where the SKOK ( Spółdzielcze Kasy Oszczędnościowo-Kredytowe ) network has grown to serve over 1 million members via 13,000 branches, and is larger than the country’s largest conventional bank.
In Scandinavia , there is a clear distinction between mutual savings banks (Sparbank) and true credit unions (Andelsbank
Housing cooperative A housing cooperative is a legal mechanism for ownership of housing where residents either own shares (share capital co-op) reflecting their equity in the co-operative's real estate, or have membership and occupancy rights in a not-for-profit co-operative (non-share capital co-op), and they underwrite their housing through paying subscriptions or rent .
In Market-rate housing cooperatives , members may sell their shares in the cooperative whenever they like for whatever price the market will bear, much like any other residential property. Market-rate co-ops are very common in New York City .
Limited Equity housing cooperatives , which are often used by affordable housing developers, allow members to own some equity in their home, but limit the sale price of their membership share to that which they bought in for.
A worker cooperative or producer cooperative is a cooperative that is wholly owned and democratically controlled by its "worker-owners". There are no outside, or consumer owners, in a workers' cooperative. Only the workers own shares of the business. Membership is not compulsory for employees, but only employees can become members
Mutual Insurance Insurance companies are owned by their shareholders, who in return for providing the company with capital by their share purchases, share in the profits in the form of dividends.
Mutual insurance companies, however, do not issue shares but operate solely on the money obtained as premiums; these organizations are owned by the policyholders, who share in the profits and losses .
Retailers' cooperative A retailers' cooperative (often known as a secondary or marketing co-operative in the UK) is an organization which employs economies of scale on behalf of its members to get discounts from manufacturers and to pool marketing. It is common for locally-owned grocery stores , hardware stores and pharmacies . In this case the members of the cooperative are businesses rather than individuals.
Social Cooperative Social cooperatives are legally defined as follows: the objective is the general benefit of the community and the social integration of citizens type A cooperatives provide health, social or educational services type B integrate disadvantaged people into the labour market. The categories of disadvantage they target may include physical and mental disability, drug and alcohol addiction, developmental disorders and problems with the law.
Consumers Cooperative A consumers' cooperative is a business owned by its customers. Employees can also generally become members. Members vote on major decisions, and elect the board of directors from amongst their own number. A well known example in the United States is the REI (Recreational Equipment Incorporated) co-op, and in Canada: Mountain Equipment Co-op .
The world's largest consumer cooperative is the Co-operative Group in the United Kingdom , which offers a variety of retail and financial services. There are also a number of other, independent consumer cooperative societies in the UK, such as the East of England Co-operative Society and Midcounties Co-operative .
In fact the Co-operative Group is actually something of a hybrid, having both corporate members (other consumer cooperatives) and individual members
Utility cooperative A utility cooperative is a public utility that is owned by its customers. It is a type of consumers' cooperative . In the US, many such cooperatives were formed to provide rural electrical and telephone service
Denmark A notable feature of agriculture in Denmark is the influence of the cooperative movement. Cooperative associations dominate the production of dairy products and bacon. A large percentage of agricultural produce is sold through marketing cooperatives.
Most cooperatives are organized in national associations, which are members of the Agricultural Council, the central agency for the cooperatives in dealings with the government and industry, and in foreign trade
a. market oriented and entrepreneurial b. member interests in market development c. capitalization and voting rights are distributed to members in proportion to their transaction volume with the coop firm specific capitalization instruments Key Feature of Modern Coops
Key Feature of Modern Coops d. member representation is democratic e. members can effectively influence long term strategy f. cooperative constitution in accordance with market condition Source: Dr. Doeke Faber Netherlands Institute for Co-operative Entrepreneurship (NICE) Aug. 2006
In the United States cooperatives are generally organized according to state law. They are often organized as non-capital stock corporations under state-specific cooperatives laws, which often restrict the use of the words "cooperative" and "co-op" to such organizations.
However, they may also be organized as business corporations or unincorporated associations, such as Limited Liability Companies (LLCs) or partnerships ; such forms are useful when the members want to allow some members a greater share of the control, which may not be allowed under the laws for cooperatives
Cooperatives do not generally pay dividends , but return savings or profits, sometimes known as patronage, to their members. Cooperatives can have special income tax benefits in the United States; however, because they are an unusual form of organization requiring specialized knowledge, legal and accounting costs are often very high and many choose to be taxed under less favorable corporate or partnership tax laws.
In the United States, there are both marketing and supply cooperatives. Agricultural marketing cooperatives , some of which are government-sponsored, promote and may actually distribute specific commodities. There are also agricultural supply cooperatives , which provide inputs into the agricultural process
In North America , the caisse populaire movement started by Alphonse Desjardins in Quebec , Canada pioneered credit unions. Desjardins wanted to bring desperately needed financial protection to working people. In 1900, from his home in Lévis, Quebec , he opened North America's first credit union, marking the beginning of the Mouvement Desjardins
Migros , is the largest supermarket chain in Switzerland and keeps the cooperative society as its form of organization. Nowadays, a large part of the Swiss population are members of the Migros cooperative – around 2 million of Switzerland's total population of 7,2 million , thus making Migros a supermarket chain that is owned by its customers Supermarket Chain
Coop is another Swiss cooperative which operates the second largest supermarket chain in Switzerland after Migros. In 2001, Coop merged with 11 cooperative federations which had been its main suppliers for over 100 years.
As of 2005, Coop operates 1437 shops and employs almost 45,000 people. According to Bio Suisse, the Swiss organic producers' association, Coop accounts for half of all the organic food sold in Switzerland
plural: kibbutzim . gathering or together ) is an Israeli collective community.
The movement combines socialism and Zionism in a form of practical Labor Zionism , founded at a time when independent farming was not practical or perhaps more correctly - not practicable. Forced by necessity into communal life, and inspired by their own ideology, the kibbutz members developed a pure communal mode of living that attracted interest from the entire world
while the kibbutzim lasted for several generations as utopian communities, most of today's kibbutzim are scarcely different from the capitalist enterprises and regular towns to which the kibbutzim were originally supposed to be alternatives. Today, farming has been partially abandoned in many cases, with hi-tech industries very common in their place.
Members of a kibbutz, or kibbutzniks Cooperative Farming in Israel Cooperative farming establishments called kibbutzim and moshavim provide much of Israel’s agricultural
Kibbutzim attempted to rotate people into different jobs. One week a person might work in planting, the next week with livestock, the week after in the kibbutz factory, the next week in laundry. Even managers would have to work in menial jobs. Through rotation, people took part in every kind of work, but it interfered with any process of specialization Job Rotation
It should be noted that kibbutzim were not the only communal enterprises in Israel. Palestine also saw the development of communal villages called Moshavim (singular: Moshav ). In a moshav, marketing and major farm purchases would be done collectively, but personal lives were entirely private. Although much less famous than kibbutzim, moshavim have always been more numerous and popular than kibbutzim
Today, kibbutzim have changed dramatically. Only 38% of kibbutz employees are kibbutz members.
By the 1970s, kibbutzim were frequently hiring Palestinians . Currently, Thais have replaced Palestinians as the non-Jewish physical work element at kibbutzim. They are omnipresent in various service areas and in factories.
Kibbutz industrialization in the 1960s led to an increase in the kibbutz standard of living , but that increase in the standard of living meant an end to the self-sacrifice which regular Israelis had so admired.
In his 1977 campaign for prime minister, Menachem Begin attacked kibbutzniks as “millionaires with swimming pools” and was rewarded with the right's first ever electoral victory
Kibbutzim have gradually and steadily become less collectivist in the past twenty years. Rather than the principle of " From each according to his ability, to each according to his needs ", kibbutzim have adopted "from each according to his preferences, to each according to his needs."
Since there are still over 250 kibbutzim in Israel, it may be premature to address the legacy of the kibbutz movement. However, although there may be hundreds of entities in Israel calling themselves kibbutzim, the collectivist impulse is gone. As the largest secular collectivist movement ever, kibbutzim arguably prove that the model itself is economically sustainable , while the ideological fervor has not been so. It should be concluded that the future of the kibbutz should be left to unfold
Rome, Italy The view from the Villa Medici shows the many domes and churches in the ancient city of Rome
This gives totals of 7,100 social cooperatives, with 267,000 members, 223,000 paid employees, 31,000 volunteers and 24,000 disadvantaged people undergoing integration. Combined turnover is around 5 billion euro. The cooperatives break into three types: 59% type A (social and health services), 33% type B (work integration) and 8% mixed. The average size is 30 workers.
Rice is the principal crop grown in India, and the country ranks second only to China in terms of world rice production. Much of the crop is used to feed the domestic population, as rice is the dietary staple for many Indians.
The most cherished expectation of members from their coops is NOT cash alone but timely and advantageous marketing of their products, timely supply of credit, quality seeds, farm chemicals, fertilizers and extension service
Malaysia 4,771 co-operative with a total membership of 5.5 M members . This represents about 5% of Malaysia’s total population with a total fund of RM 6.06 B with a total asset of RM 25.7 B
Cabbage Field, Japan Rain clouds pass over a cabbage field in Nagano, on central Honshu Island. Cabbage is a major crop for domestic consumption in Japan, and features prominently in many Japanese dishes
JA Keizairen purchasing & marketing related business
JA Zen-noh purchasing & marketing related business
JA Kyosairen mutual insurance business
JA Kosairen welfare business
JA Zenkoren welfare business
Nihon Nogyo Shimbun newspaper related information service
JA Shinmbunren newspaper related information service
ie-no Hikari Kyoki publication, educational and cultural activities
Nokyo Kanko travel business
Activities of JA Group Organization Source : Mr. Toru Nakashima Institute for the Development of Agicultural Cooperation in Asia (IDACA) August 2006
Japan has a very large and well developed consumer cooperative movement with over 14 million members ; retail co-ops alone had a combined turnover of 2.519 trillion Yen ( 21.184 ) billion U.S. Dollars [market exchange rates as of 11/15/2005]) in 2003/4. (Japanese Consumers' Co-operative Union., 2003).
Thai rice fields annually produce around 20 million metric tons of rice. As the largest exporter of rice in the world after the United States, Thailand depends considerably on its rice production. Despite the rapid growth and diversification of the Thai economy, the majority of the population are still engaged in agriculture. The Thai government is attempting to institute technological advances, such as flood control, to help farmers prepare for destructive climatic conditions
ventured into new formats and services such as: Liberty Market, Cheers Convenience Store, The Passar, Bakers Corner, Homemart and Cybermart
invested in real time integrated warehouse management system to achieve better inventory control and streamline orders from operations so as to maximize goods deployment procedures and improve staff efficiency.