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Big Society in action: How does the
co-operative instinct emerge in low-
      income communities?

              Anne Power
        Professor of Social Policy
      London School of Economics
A little personal history
• Tanzania, US, Holloway
• Defining co-operation
• Pooling resources to maximise shared
  gains
• Solidarity and reciprocity
• Communities and government are inter-
  dependent
• Tensions can lead to positive outcomes
Human survival depends on co-operation

• Human beings are social animals
• Evidence from pre-historic times
• Progress accelerates through co-operation
• We have moved far into
  complex, competitive, unequal groups
• But social, political, economic structures
  unify societies
• So are co-operative models relevant today?
Pre-historic co-operation
Meaning of Co-operation

• Bottom-up, member controlled, small scale
• Informal and formalised structures
• Multiple models emerge in:
  – Complex modern economies –‘big government’
  – Advanced fast changing urban communities
  – Sophisticated private and public services
  – Industrial as well as agricultural production
  – Financial, construction, professions, care.
Viking Head Start
Danish Housing
 Co-operatives
Roots of modern co-operatives –
      Industrial revolution ‘shocks’
•   Labour > wealth > shared unequally
•   Powerlessness among masses
•   Individuals at bottom group together
•   Urgency of survival
    – social protection, distribution of benefits, solidarity.
• Higher-level structures to tackle collective conditions
Industrial groups toiling ‘masses’
Conditions spawn ‘bottom-up’ groups
•   Associations and clubs
•   Friendly societies
•   Mutual aid and self-help groups
•   Generates ‘bottom-up’ solutions
•   Co-operative producers, builders, retail
•   Proliferation of co-operative experiments
•   Rochdale weavers galvanised movement
• Spread world-wide from UK
Rochdale Pioneers HQ
Alongside powerful social movements

•   Public health bodies
•   Local government
•   Evangelical ‘chapels’
•   Trade unions
•   ‘One man one vote’
•   Women’s suffrage
•   Civil rights
•   Leading to ‘top-down’ systems
•   Building on ‘bottom-up’ demands
Early Social Movements
Co-operation advances human
      condition along many lines
• Pure ‘survival goods’ through collective savings e.g.
  food, clothes, tools
• Sanitary homes at reduced cost through collective
  building organisations (Spain, Scandinavia)
• Health, unemployment, death insurance (Italy)
• Education, learning (Denmark)
• Democracy, participation, voice (US Civil Rights)
• Shared work and shared profits (Basque)
• Savings investment for individuals and common good
Worker Owned Producer/Distributer
Martin Luther King, Jr. and the US Civil
          Rights Movement
Powerful ‘niche organisations’ work
           alongside government
•   Health and social care – Italy, Belgium
•   Housing – Spain, Scandinavia
•   Retail – Britain, France, Spain
•   Industrial production – Spain/Basque
•   Architecture and engineering – UK/Arup
•   Fisheries – Japan, West Africa
•   Micro-credit – Grameen, Bangladesh
•   Savings and insurance – worldwide
Fishing Co-op   Co-op Kobe
Porto Palazzo
   Market



 Moroccan
Bread Co-op
   Torino
Grameen Bank
Core principles of co-operation
•   Open membership
•   Democratic control – one member one vote
•   Distribution of surplus value
•   Limited interest on capital
•   Political and religious neutrality
•   Promotion of education
•   Strictly limited borrowing
Open       One man
Membership   One vote
The ‘divi’   Shared surplus
Unadulterated
   goods
                No debt
Education
Conditions of success – inspiration
•   Pressing, visible problems and acute need
•   Common cause and unifying idea
•   Clear targets for action
•   Small early steps
•   Trust – clear mutual benefits
•   Reciprocity – elements of self-interest
•   Shared gains
Vision – Mondragon
Conditions of success – organisation
•   Leadership from within
•   Organising skills and business development
•   Ideas and access brokers
•   Ideas and action planning
•   System of member savings and investment
•   Financial controls and probity
•   Ground rules – mediating, resolving conflict
•   Transparency
José Ormochea, founding member of
     Mondragon Co-operatives
Fagor factory, Mondragon – largest
   industrial producer in Spain
Co-operative organisations today
• Tenant co-operative and tenant management
  organisations
• Play-schemes, Nurseries
• Mondragon industrial co-operatives
• Employee owned services - Locke Fyne Oyster
  Co, John Lewis, Ove Arup
• Rapid expansion of Co-op Group since financial
  crisis
Co-operative Centenary
Co-op Group Booming
Community Fund
Deprived Council estates –
    unlikely co-operative enterprises
•   Public landlord problems
•   Tough conditions on ‘rough’ estates
•   Steady revenue stream in rents
•   Consultation or control
•   Local knowledge and commitment prevails
•   Local management and local budgets
•   Local management saves money and creates jobs
•   Hands-on, learnable skills and training
Tenant Management Organisations
Outcomes
•   Higher tenant satisfaction
•   Higher quality service
•   Managing within budget
•   Conserving scarce resource
•   Better environments
•   Higher rewards for effort
•   Mutual gains
•   Long-lasting community benefits
•   Widespread model – Glasgow, Liverpool, London
Islington Fairness Commission
Lessons for government
•   Complex public framework of support systems
•   Essential in complex societies
•   Welfare v. market
•   Fair distribution of resources requires government
•   How to BROKER community self interest and limit
    market failures
•   Overarching framework of rules
•   Community instincts useful and strong
•   Training and ‘hand-holding’
•   ‘Top down’ and ‘bottom up’
Big Society in Action

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Big society seminar prof. anne power

  • 1. Big Society in action: How does the co-operative instinct emerge in low- income communities? Anne Power Professor of Social Policy London School of Economics
  • 2. A little personal history • Tanzania, US, Holloway • Defining co-operation • Pooling resources to maximise shared gains • Solidarity and reciprocity • Communities and government are inter- dependent • Tensions can lead to positive outcomes
  • 3. Human survival depends on co-operation • Human beings are social animals • Evidence from pre-historic times • Progress accelerates through co-operation • We have moved far into complex, competitive, unequal groups • But social, political, economic structures unify societies • So are co-operative models relevant today?
  • 5.
  • 6. Meaning of Co-operation • Bottom-up, member controlled, small scale • Informal and formalised structures • Multiple models emerge in: – Complex modern economies –‘big government’ – Advanced fast changing urban communities – Sophisticated private and public services – Industrial as well as agricultural production – Financial, construction, professions, care.
  • 9. Roots of modern co-operatives – Industrial revolution ‘shocks’ • Labour > wealth > shared unequally • Powerlessness among masses • Individuals at bottom group together • Urgency of survival – social protection, distribution of benefits, solidarity. • Higher-level structures to tackle collective conditions
  • 11. Conditions spawn ‘bottom-up’ groups • Associations and clubs • Friendly societies • Mutual aid and self-help groups • Generates ‘bottom-up’ solutions • Co-operative producers, builders, retail • Proliferation of co-operative experiments • Rochdale weavers galvanised movement • Spread world-wide from UK
  • 13. Alongside powerful social movements • Public health bodies • Local government • Evangelical ‘chapels’ • Trade unions • ‘One man one vote’ • Women’s suffrage • Civil rights • Leading to ‘top-down’ systems • Building on ‘bottom-up’ demands
  • 15. Co-operation advances human condition along many lines • Pure ‘survival goods’ through collective savings e.g. food, clothes, tools • Sanitary homes at reduced cost through collective building organisations (Spain, Scandinavia) • Health, unemployment, death insurance (Italy) • Education, learning (Denmark) • Democracy, participation, voice (US Civil Rights) • Shared work and shared profits (Basque) • Savings investment for individuals and common good
  • 17. Martin Luther King, Jr. and the US Civil Rights Movement
  • 18. Powerful ‘niche organisations’ work alongside government • Health and social care – Italy, Belgium • Housing – Spain, Scandinavia • Retail – Britain, France, Spain • Industrial production – Spain/Basque • Architecture and engineering – UK/Arup • Fisheries – Japan, West Africa • Micro-credit – Grameen, Bangladesh • Savings and insurance – worldwide
  • 19. Fishing Co-op Co-op Kobe
  • 20. Porto Palazzo Market Moroccan Bread Co-op Torino
  • 22. Core principles of co-operation • Open membership • Democratic control – one member one vote • Distribution of surplus value • Limited interest on capital • Political and religious neutrality • Promotion of education • Strictly limited borrowing
  • 23.
  • 24. Open One man Membership One vote
  • 25. The ‘divi’ Shared surplus
  • 26. Unadulterated goods No debt
  • 28. Conditions of success – inspiration • Pressing, visible problems and acute need • Common cause and unifying idea • Clear targets for action • Small early steps • Trust – clear mutual benefits • Reciprocity – elements of self-interest • Shared gains
  • 30. Conditions of success – organisation • Leadership from within • Organising skills and business development • Ideas and access brokers • Ideas and action planning • System of member savings and investment • Financial controls and probity • Ground rules – mediating, resolving conflict • Transparency
  • 31. José Ormochea, founding member of Mondragon Co-operatives
  • 32. Fagor factory, Mondragon – largest industrial producer in Spain
  • 33. Co-operative organisations today • Tenant co-operative and tenant management organisations • Play-schemes, Nurseries • Mondragon industrial co-operatives • Employee owned services - Locke Fyne Oyster Co, John Lewis, Ove Arup • Rapid expansion of Co-op Group since financial crisis
  • 37. Deprived Council estates – unlikely co-operative enterprises • Public landlord problems • Tough conditions on ‘rough’ estates • Steady revenue stream in rents • Consultation or control • Local knowledge and commitment prevails • Local management and local budgets • Local management saves money and creates jobs • Hands-on, learnable skills and training
  • 39. Outcomes • Higher tenant satisfaction • Higher quality service • Managing within budget • Conserving scarce resource • Better environments • Higher rewards for effort • Mutual gains • Long-lasting community benefits • Widespread model – Glasgow, Liverpool, London
  • 41. Lessons for government • Complex public framework of support systems • Essential in complex societies • Welfare v. market • Fair distribution of resources requires government • How to BROKER community self interest and limit market failures • Overarching framework of rules • Community instincts useful and strong • Training and ‘hand-holding’ • ‘Top down’ and ‘bottom up’
  • 42. Big Society in Action