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OPEN EDUCATIONAL RESOURCE
COOPERATIVISM

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Oer FEUP. cooperativism

  1. 1. OPEN EDUCATIONAL RESOURCE COOPERATIVISM www.ecorl.it
  2. 2. COOPERATIVES 1. Concept 2. Types of cooperatives 3. Cooperatives and development www.ecorl.it
  3. 3. 1. CONCEPT Birchall (2004, 15). The International Cooperative Alliance (ICA) defines cooperatives as: “An autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise”. www.ecorl.it
  4. 4. 1. CONCEPT Birchall (2004, 14). “There are many ways of doing business, but there are only a few ways of owning and controlling business organisations. The most familiar ones are joint stock companies, owned by people who invest in them and who take the profits, and public sector organisations, owned by governments that specify what public purposes they will pursue. These two types are so prevalent in modern society that we often tend to overlook the others and to engage in simplistic debates about the relative merits of ‘public versus private’.”www.ecorl.it
  5. 5. 1. CONCEPT “We will not make that mistake here, because there are also family businesses, owned by people who have built up or inherited a company, and philanthropic organisations that are owned in trust by people whose intention is to provide goods or services for other people less fortunate than themselves. Then there are membership-based organisations owned by their ‘users’, people who want to be provided directly with goods or services.” www.ecorl.it
  6. 6. 1. CONCEPT These membership organisations are often – but not always – called cooperatives. The crucial point is that they are a distinctive type of organisation in their own right. In the history of the evolution of modern organisations, they are at least as old as the others and are just as well established in law. Why do not many people know this? www.ecorl.it
  7. 7. 1. CONCEPT Partly it is because the investor-owned business has recently become the dominant type. Partly it is because the membership-based type is known by several names – mutual, cooperative, self-help group, business club, economic association – each referring to varying histories, traditions and legal forms. www.ecorl.it
  8. 8. 2. COOPERATIVES BY SECTORS We are going to analyze in which sectors cooperatives have more revenues and therefore, which cooperatives are the largest ones in the world. We will do through, The Global300 Report that identifies the biggest co-operatives in the world (measured by turnover specified in dollars) www.ecorl.it
  9. 9. 2. COOPERATIVES BY SECTORS The revenues of these 300 biggest cooperatives are equal to the GDP of a country like Spain. www.ecorl.it
  10. 10. 2. COOPERATIVES BY SECTORS Importance of the cooperatives in differents countries. www.ecorl.it
  11. 11. 2. COOPERATIVES BY SECTORS The main economic sectors are: • Agriculture / Forestry • Banking / Credit Unions • Consumer / Retail • Insurance • Workers / Industrial • Others (Health, Utilities) www.ecorl.it
  12. 12. 2. COOPERATIVES BY SECTORS www.ecorl.it
  13. 13. 2. COOPERATIVES BY SECTORS Agriculture / Forestry Agricultural cooperatives play an important role in supporting small agricultural producers and marginalized groups such as young people and women. They empower their members economically and socially and create sustainable rural employment through business models that are resilient to economic and environmental shocks. www.ecorl.it
  14. 14. 2. COOPERATIVES BY SECTORS Agriculture / Forestry It offers small agricultural producers opportunities and a wide range of services, including improved access to markets, natural resources, information, communications, technologies, credit, training and warehouses. They also facilitate smallholder producers’ participation in decision-making at all levels, support them in securing land-use rights, and negotiate better terms for engagement in contract farming and lower prices for agricultural inputs such as seeds, fertilizer and equipment.www.ecorl.it
  15. 15. 2. COOPERATIVES BY SECTORS Agriculture / Forestry www.ecorl.it
  16. 16. 2. COOPERATIVES BY SECTORS Banking / Credit Unions Credit unions and financial cooperatives contribute significantly to ensuring access to affordable financial services, access that is especially critical given the current economic crisis. Credit unions often provide savings, credit and related financial services to communities that otherwise may not have access due to geographical, cultural or financial challenges facing individuals. www.ecorl.it
  17. 17. 2. COOPERATIVES BY SECTORS Banking / Credit Unions www.ecorl.it
  18. 18. 2. COOPERATIVES BY SECTORS Consumer / Retail Enterprises owned by consumers and managed democratically which aim at fulfilling the needs and aspirations of their members. They operate within the market system, independently of the state, as a form of mutual aid, oriented toward service rather than pecuniary profit. Consumers' cooperatives often take the form of retail outlets owned and operated by their consumers. www.ecorl.it
  19. 19. 2. COOPERATIVES BY SECTORS Consumer / Retail www.ecorl.it
  20. 20. 2. COOPERATIVES BY SECTORS Insurance Mutuals and co-operatives represented nearly a quarter of the world’s insurance industry in 2008. Important role in protecting the financial well-being of individuals and their families. This may come as no surprise given that some of the world’s oldest insurance companies are mutuals or co- operatives. It also underlines that the mutual/co- operative structure is a sustainable enterprise model that is well suited to contributing to the economic development of diverse markets.www.ecorl.it
  21. 21. 2. COOPERATIVES BY SECTORS Insurance www.ecorl.it
  22. 22. 2. COOPERATIVES BY SECTORS Workers / Industrial These co-operatives can be found in most industrial or service sectors and for most of them their workers are primarily members and co- owners and thus participate in the share capital. It also means the majority of members are also workers. A second type is constituted by co- operatives of individual producers or craftsmen (such as masons, bakers or taxi drivers) or professionals (such as doctors, dentists or engineers).www.ecorl.it
  23. 23. 2. COOPERATIVES BY SECTORS Workers / Industrial www.ecorl.it
  24. 24. 3. COOPERATIVES AND DEVELOPMENT Ban Ki Moon: “Cooperatives empower their members and strengthen communities. They promote food security and enhance opportunities for small agricultural producers. They are better tuned to local needs and better positioned to serve as engines of local growth. By pooling resources, they improve access to information, finance and technology. And their underlying values of self- help, equality and solidarity offer a compass in challenging economic times.” www.ecorl.it
  25. 25. 3. COOPERATIVES AND DEVELOPMENT Ban Ki Moon: “Cooperatives are also critical in supporting indigenous communities, and in offering productive employment opportunities for women, youth, persons with disabilities, older persons and others who face discrimination and marginalization. The global financial and economic crisis has also demonstrated the resilience of alternative financial institutions such as cooperative banks and credit unions.” www.ecorl.it
  26. 26. 3. COOPERATIVES AND DEVELOPMENT “I encourage all stakeholders to continue building awareness and pursuing policies to strengthen cooperatives everywhere. By contributing to human dignity and global solidarity, cooperatives truly do build a better world.” 7th July 2012 Message for the International Day of Cooperatives. Mr Ban Ki Moon, Secretary General of the United Nations, www.ecorl.it
  27. 27. B) LAW 5/2011 OF SOCIAL ECONOMY 1. Origin and evolution. 2. Concept and development. 3. Influence in Spain. 4. Importance in Europe. 5. Conclusions. www.ecorl.it
  28. 28. 1. ORIGIN AND EVOLUTION This is a pioneering law in Spain, because until the year 2011 there was no specific legislation on Social Economy. The Spanish Constitution includes a series of articles on which social economy entities are based on (Articles 1.1, 9.2, 40, 41, 47 and 129.2). Specifically, art. 47 covers the housing cooperatives included in the Social Economy law. www.ecorl.it
  29. 29. 1. ORIGIN AND EVOLUTION The Social Economy had its first explicit recognition in Law 31/1990 of December the 27th, and the National Institute for the Promotion of Economics (INFES) was created. Its objective was to promote Social Economy entities, but it was dissolved and the Directorate General for the Promotion of the Social Economy and the European Social Fund assumed its functions. Law 27/1999, of Cooperatives, incorporates the Council for the Promotion of the Social Economy as an advisory and consultative body.www.ecorl.it
  30. 30. 1. ORIGIN AND EVOLUTION The need to approve a Law of Social Economy derives from the direct connection with the principles and objectives pursued by the Law of Sustainable Economy, because the Social Economy is connected with the economic model of sustainable development in its triple economic, social and environmental dimension . In addition, the Business Confederation of the Social Economy (CEPES) prepared a proposal for an articulated text.www.ecorl.it
  31. 31. 2. CONCEPT AND DEVELOPMENT On March 29, 2011 it was approved with the unanimous support of all parliamentary groups Law 5/2011 of Social Economy, thus fulfilling the imperative mandate of art. 129.2 EC. Art. 2 of this law establishes the concept of Social Economy: A set of economic and business activities carried out by entities in their private sphere and whose purpose is to pursue either the collective interest of its members or the general interest, or both. www.ecorl.it
  32. 32. 2. CONCEPT AND DEVELOPMENT Art. 3 states that the scope of this law extends to all social economy entities operating in Spanish territory. Art. 5 indicates which are the entities to which this law applies. These entities are: • Cooperatives. • Mutualities. • Foundations and associations that carry out economic activity. • Labor societies. • Insertion companies.www.ecorl.it
  33. 33. 2. CONCEPT AND DEVELOPMENT •Special employment centers. •Fishermen's guilds. •Agrarian transformation societies. •Individual entities created by specific norms that are governed by the principles established in article four (guiding principles). www.ecorl.it
  34. 34. 2. CONCEPT AND DEVELOPMENT This legislation encourages the hiring of workers or the creation of companies offering bonuses in Social Security contributions (articles 9 and 11). However, these companies should guide their actions through the guiding principles of art. 4 and there are as follows: • Priority of people and social purpose over capital. • Application of the results obtained in function of the work contributed. www.ecorl.it
  35. 35. 2. CONCEPT AND DEVELOPMENT • Promotion of internal solidarity to promote equal opportunities for men and women, social cohesion, inclusion of people at risk of social exclusion, the generation of stable and quality employment, the reconciliation of work, family and personal life and sustainability. • Independence from public authorities. www.ecorl.it
  36. 36. 2. CONCEPT AND DEVELOPMENT Art. 13 creates a specific body that is responsible for supervising the activity of social entities. It is advisory and consultative. In short, this regulation aims to establish a common legal framework that respects the internal regulation of each one (Article 1). Law 31/2015 partially amended Law 5/2011 to expand bonus quota to stimulate and encourage the recruitment of children under 30 years. www.ecorl.it
  37. 37. 3. INFLUENCE IN SPAIN Law 5/2011 establishes that the Central Administration will act jointly with the Autonomous Communities. The Seventh Additional Provision, among other articles, establishes that the Government will elaborate a simulative program of the Entities of Social Economy consulting prior to the Autonomous Communities. www.ecorl.it
  38. 38. 3. INFLUENCE IN SPAIN After the entry in force of the law, some Autonomous Communities have been expressly included in the Statute of Autonomy the term “Social Economy”: Andalucia, Aragon, Castile and Leon, Catalonia and Valencia. Galicia has approved Law 6/2016 of the Social Economy of Galicia, where a new model of cooperative is created to alleviate the high level of youth unemployment in Galicia. For this reason, the constitution requirements are simplified.www.ecorl.it
  39. 39. 3. INFLUENCE IN SPAIN CASTILLA-LA MANCHA It does not expressly include the Social Economy in its Statute of Autonomy although it was modified in 2014 and cooperatives are a very important factor in the Castilian-La Mancha economy. In Art. 31.1.22 it recognizes exclusive competence in cooperatives and Law 20/2002 is approved, repealed by Law 11/2010, where importance is attached to the will of the members and they will no longer respond personally to social debts. www.ecorl.it
  40. 40. 3. INFLUENCE IN SPAIN. CASTILLA-LA MANCHA To achieve greater development in the area of Cooperatives, a preliminary draft on Cooperative Microenterprise and Rural Cooperative was approved on the 28th of February of this year. The goal is to cover more than 2,000 companies that employ almost 16,500 workers. The main addition is the creation of agri-food cooperatives (land development, cultural activities, welfare assistance, social integration, etc.). www.ecorl.it
  41. 41. 4. IMPORTANCE IN EUROPA In the environment of the European Union (EU) there is no specific regulation on Social Economy. The first initiative in this area was produced by the "Toia Report" (2009), where the European Commission was urged to foster social enterprise, since the fundamental motive is not financial profitability, but corporate profitability. The Europe 2020 strategy was launched in 2010 by the European Commission to alleviate the economic crisis. It has been urged to integrate into the strategy of Social Economy, because it generates macroeconomic and social benefits. www.ecorl.it
  42. 42. 4. IMPORTANCE IN EUROPA The so-called "Social Economy Intergroup" defends the Social Economy in Europe and it is an informal forum composed of members of the European Parliament, who meet to discuss these issues. In short, Spanish law is a benchmark and example of good practice that can allow similar frameworks in the EU. It would contribute to the recognition of the Social Economy as an economic agent that contributes to the construction of a strong Europe in a globalized world.www.ecorl.it
  43. 43. 5. CONCLUSIONS Despite the fact that law 5/2011 has filled a legislative vacuum in this regard, it is worth mentioning some problems: 1) According to the consideration of Social Entity, third sector entities (non-profit making) can never be considered in this way. www.ecorl.it
  44. 44. 5. CONCLUSIONS 2) Although art. 5 makes an enumeration of entities that should not ever be considered social entities, they would have to be be consulted on a case-by-case basis if they comply with the guiding principles. 3) Who and how the principles must be fulfilled by the entities is imprecise. www.ecorl.it
  45. 45. 5. CONCLUSIONS 4) The self-regulation of entities can be a problem if there are dysfunctionalities with the general rule, because the public measures of the Social Economy may not be applied. However, it should not be forgotten that this law shows Spain’s intention to implement a sustainable, innovative and respectful economy with work. It is still too early to know if this law is effective because of its short application time. www.ecorl.it
  46. 46. 5. CONCLUSIONS In short, the Social Economy is presented as an employment creation alternative, from a more humane and supportive perspective, different from the mere economic interest. In addition, the principle of "free association for common benefit" is prioritised over solely competitive spirit, as the fundamental pillars of democracy, social interest and distributive justice. www.ecorl.it
  47. 47. Produced by: Erasmus Plus KA2 – Adult Education Agreement n. 302554962 Project n. 2015-1-IT02-KA204-015467 www.ecorl.it
  48. 48. PARTNERS Università Popolare di Firenze-IT www.universitapopolaredifirenze.it Federación Española de Universidades Populares-SP www.feup.org Pula Open University -HR www.pou-pula.hr Eu Trade-LT www.eu-trade.org Yunus Social Business-AL http://ysbbalkans.com/ Università Telematica Uninettuno-IT www.uninettunouniversity.net This project has been funded with support from the European Commission. Publication and products reflect the views only of the ECORL Consortium, and the Commission cannot be held responsible for any use which may be made of the information contained therein www.ecorl.it/en info@ecorl.it

OPEN EDUCATIONAL RESOURCE COOPERATIVISM

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