Co-operatives and the New Economy

Looking for essential ideological linkages

What is the new economy? Has been called an ‘economy of solidarity’ Bottom-up—what we might have called

mutualism Anti-capitalist? At least anti-globalisation Importance of the local—level of control Reduction of consumption and respect for

the planet—a partially new concern

Reuniting false dualisms market—state economic—social (business vs. community?) paid work—leisure producer—consumer North—South people—planet, and so on.

Relationships of unity-in-diversity and mutual respect rather than competition and exploitation

Linking the economy of the future with three current movements

Sustainability

Localisation

Fair trade

Sustainability: definitions?

Characteristics of sustainable economy

the minimization of resource use Importance of ‘ownwork’ or ‘right

livelihood’ the concern with the issue of scale the need for self-sufficiencyGreen political economy has since also

developed an interest in the importance of ownership and control

Is there a link? The link between responsibility and mutual

activity may be a natural one if we think of taking responsibility for the environment as being a specific example of taking responsibility for one’s own problems, which is the response that lies at the heart of mutualism.

Cato, M. S., Arthur, L., Keenoy, T. and Smith, R. (2004), ‘CSR in Your Own Backyard’, presented to the inaugural conference of the Welsh Institute for Competitive Advantage, Corporate Social Responsibility: Thought and Practice’, Glamorgan Business Centre, University of Glamorgan, 23-24 Sept.

Issue of scale: small is

beautiful

The question of scale William Morris described a future utopia where

‘the huge manufacturing districts will be broken up, and nature heal the horrible scars that man’s heedless greed and stupid error have made’.

guild socialists harked back to a pre-industrial era when lives were organised within small, local economies.

appropriate scale, i.e. organizing business at the level which is best suited to serve the needs of producers, consumers and the environment.

According to Schumacher, ‘For every activity there is a certain appropriate scale, and the more active and intimate the activity, the smaller the number of people that can take part’. (Schumacher, 1973: 64).

Pressures for change

Loss of political control in an era of deregulated markets

Stock-market pressure destroying the real economy

Trade-related pollution is the fastest-growing contributor for global CO2 emissions

Loss of community and identity

Colin Hines: Localisation a Global Manifesto (1999)

‘The essence of these policies is to allow nations, local government and communities to regain control over their local economies; to make them as diverse as possible; and to rebuild stability into community life.’

What policies?

Trade subsidiarity ‘site here to sell here’ exchange controls and limits on

consumer credit taxes on speculative financial

transactions government support for industry

switched from corporate welfare towards tax breaks for local investment

Is there a link? The size of a cooperative business is

naturally limited so long as the requirements of democratic governance are adhered to. This is because once the number of workers has grown beyond the size of their ability to debate issues the cooperative principle of democratic decision-making will have reached its limit, and the division of the business into two, or the spinning off of one part of it, is the natural response.

What puts the ‘fair’ in ‘fair trade’?

‘Fair Trade is a trading partnership, based on dialogue, transparency and respect, which seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions for, and securing the rights of, marginalised producers and workers – especially in the South’

The view from Co-op College: Establishing fairer trading systems has also

been at the central to the development of co-operative societies throughout Europe from their inception and has been well documented as has success of co-operatives in tackling poverty

Co-operative movements developed in Europe as ways of alleviating economic hardship for their members and examples abound of their success in doing this – from the Rochdale Pioneers to Mondragon

Co-ops make trade fair Café-direct use RECOCARNO secondary

cooperatives in Haiti and La Central de Cooperativas Cafetaleras del Norte, the second largest co-op in Nicaragua

Divine fairtrade chocolate cocoa comes from Kuapa Kokoo cooperative in Ghana

Oxfam fair-trade coffee bars under the Progreso label, in partnership with coffee grower co-operatives. Launched in November 2004 the project headlines its commitment to growers’ cooperatives in Honduras, Ethiopia and Indonesia, who also have partial ownership of the venture

Sundance Renewables, Ammanford

Not interested in an empire Democratic structure naturally limits expansion Wise use of resources the raison d’etre Self-sufficiency seen as ‘the key to a genuinely

sustainable future’ Sharing of work tasks Inherent link between sustainability and

cooperatives because of responsibility