CM- 1 module
CM- 1 module
1
Conceptofcooperation–def ini
ti
on,pr
inci
plesofcooper
ati
on,1995andbasi cvalues-Theoret
ical
perspect
ives.Ref
ormi st
,Inst
it
uti
onalandBehav i
oral
appr
oaches.Cooper at
ivethoughtprocess;
Pre–Rochadal ethinkers;Robert
Owen,Char l
esFourer
,Louisblanc;post-Rochadat et hi
nkers;
rai
ffei
sen,Dr .
Warbasse,Fauquet ,Charl
es Gide,Jawahar
lalNehr u and M Gandhi jiviews on
cooperati
on.
Def
ini
ti
onofcooper
ati
ve:
Accordi
ngt otheI nternati
onall
abourOrgani
zat
ion(I
LO),a“ Cooper ati
ve”isanassoci ati
onof
persons,usuallyofl i
mi t
edmeans,whohav ev ol
untaril
yjoi
nedt ogethertoachieveacommon
economicendt hrought hefor
mati
onofademocrati
callycontr
oll
edbusi nessOrganizat
ion,making
equit
ablecontr
ibuti
ont othecapi
talr
equi
redandacceptingafairshareoft her
isksandbenefitsof
theundert
akinginwhi chmember spar
ti
ci
pate.
Management :
Planning
Organizing
Directi
ng
controll
i
ng
Resour
cest omanage:
People:I nacooperat
ive,managementalsomuststrongl
yemphasizememberrel
ati
ons
because owner shi
p,contr
ol,and pat
ronage al
lare memberfuncti
ons.Thi
sinvol
ves
adequat etwo-waycommuni cat
ionandinfor
mationf
rom managementtomembersand
fr
om member stomanagement .
Capital
Facili
ti
es
Co-oper
ati
vepri
nciples:
TheRochdalePr i
ncipl
esareasetofideal
sfortheoperat
ionofcooperati
ves.Theyweref
irstset
outin1844byt heRochdaleSoci
etyofEquit
ablePi
oneersinRochdal
e,Englandandhaveformed
thebasi
sfortheprinci
plesonwhi
chcooperativ
esaroundtheworl
dcontinuetooperat
e.
Pr
inci
plesofcooper
ati
ves
Vol
untar
yandOpenMember ship:Co-operat
ivesarev olunt
aryorgani
zations,opent
oall
per
sonsabletousetheirser
vicesandwi l
li
ngtoacceptt heresponsi
bil
i
tiesofmembershi
p,
wit
houtgender
,soci
al,
racial
,poli
ti
cal
orr el
igi
ousdiscr
imi nat
ion.
Democr at
icMemberControl
:Cooperati
vesar
edemocr at
icorgani
zat
ionscontr
oll
edby
thei
rmember s—t
hosewhobuyt hegoodsoruset heservicesofthecooper
ati
ve—who
acti
vel
yparti
ci
pat
einset
ti
ngpoli
ciesandmaki
ngdeci
sions.
MemberEconomi cPart
ici
pati
on:Memberscontri
but
eequall
yto,anddemocr
ati
cal
lycontr
ol,
thecapit
alofthecooperat
ive.Thi
sbenefit
smember sinproport
iontot
hebusinessthey
conductwit
hthecooperat
iverat
herthanonthecapi
tal
inv
ested.
Aut ndependence:Cooper
onomy and I ati
ves ar
e autonomous,sel
f-
help or
gani
zat
ions
contr
oll
edbythei
rmember s.I
ftheco-
openter
sintoagreement
swithotheror
gani
zat
ions
FILE DOWNLOADED FROM BUSTUDYMATE.IN
orrai
ses capi
talfr
om ext
ernalsour
ces,itis done so based on t
erms t
hatensur
e
democr
ati
ccontrol
bythemembersandmaintai
nsthecooperat
ive'
saut
onomy.
Educat
ion,Tr ai
ning and I
nformat i
on:Cooperativ
es prov
ide educati
on and t
rai
ning for
member s,elected r
epresentat
ives,manager s and employees so t
hey can contr
ibute
eff
ecti
velyt
ot hedevelopmentoft hei
rcooperat
ive.Member salsoi
nfor
mthegeneralpublic
aboutthenatureandbenefit
sofcooper at
ives.
Co-operati
onamongCo- operati
ves:Cooper
ati
vesserv
et hei
rmember smosteff
ect
ivel
y
andst r
engthenthecooperativ
emov ementbyworkingtogethert
hroughl
ocal
,nati
onal,
regi
onal andi
nter
nat
ionalst
ructur
es.
ConcernforCommunity
:Whilef
ocusi
ngonmemberneeds,cooperat
iveswor
kfort
he
sust
ainabl
edevel
opmentofcommuni
ti
est
hroughpol
i
ciesandpr
ogramsaccept
edbyt
he
member s.
Pr
inci
ples-I
nter
nat
ional
cooper
ati
veal
l
iance(
1995)
:
Voluntaryandopenmember ship:
Accordingt otheI CA'
sStat
ementont heCo- oper
ati
ve
Identit
y,"
Co- operati
vesarev oluntaryorganizati
ons,opentoallper
sonsabl etouset hei
r
servicesandwi ll
ingtoacceptt her esponsibi
li
ti
esofmember shi
p,wit
houtgender ,soci
al,
racial,
pol
it
ical orrel
igi
ousdiscriminati
on”.
o Antidi scri
minati
on
o Mot ivationandrewards
o Financi al,
quali
tyofl
ife,givi
ngback, alt
rui
sm,asenseofduty,
carr
ierexper
ience
Democr aticmembercont r
ol:
Accor dingtot heI
CA'sStat
ementont heCo-operat
iveIdentit
y,
“Co-oper ati
vesar edemocr ati
cor ganizat
ionscontr
oll
edbyt hei
rmember s,who act i
vely
parti
ci pateinset tingt hei
rpol i
ciesandmaki ngdecisi
ons.Menandwomenser v
ingas
elected r epresentati
ves are account ablet othe member shi
p.In pri
mar yco-operati
ves
member shav eequalv oti
ngrights( onemember ,onevote)andco-oper
ati
v esatotherlevel
s
areal soor ganizedinademocr at
icmanner .
”
Membereconomi cpar ti
cipati
on:Accordingtot heICA,co-operativ
esar eent erpri
sesinwhich
“Member s contribute equitablyt o,and democr at
icall
ycont rol,the capi taloftheirco-
operati
ve.Atleastpar toft hatcapitali
susual lythecommonpr opertyoft heco-operati
ve.
Member susual lyreceivel i
mitedcompensat ion,ifany,oncapi talsubscribedasacondi ti
on
ofmember ship.Member sal locatesur pl
usesf oranyoral loft hef oll
owi ng purposes:
developi
ngt heirco-operat i
ve,possiblybyset ti
ngupr eser
ves,par tofwhi chatl eastwould
beindivi
sibl
e;benef it
ingmember sinpr oportiontot heirtr
ansact i
onswi tht heco-operati
ve;
andsuppor t
ingot heractivit
iesappr ovedbyt hemember shi
p.”
Democr ati
ccontrol
Limit
ationsonmembercompensat i
onandappr opriateuseofsurpl
uses
“Member susuallyr eceiveli
mi t
edcompensat ion,ifany,oncapi t
alsubscri
bedasa
condit
ionofmember ship.”
“Devel
opingtheirco- operat
ive,possibl
ybyset t
ingupr eser
ves,partofwhichatl
east
wouldbei ndi
vi
sible;”
Benefi
tingmember sinproporti
ontot hei
rtransacti
onswi t
htheco-oper
ati
ve;
”
“Supporti
ngotheract i
vit
iesapprovedbyt hemember shi
p.”
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Autonomyandi ndependence:
Accordingt otheICA'sSt
atementont heCo- operat
iveIdenti
ty,
“Co-operati
vesareautonomous, self
-helporgani
zati
onscontr
olledbyt hei
rmember s.Ift
hey
enterintoagreementswithotherorganizati
ons,incl
udi
nggovernment s,orrai
secapi t
alfr
om
externalsources,
theydosoont ermst hatensuredemocrat
iccontrolbyt hei
rmember sand
mai ntai
ntheirco-
operat
iveautonomy .”
Educati
on,traini
ng,andinformati
on:
Accordi
ngtotheICA'sStat
ementont heCo-operat
ive
I
dentit
y,“ Co-operat
ives provi
de educat
ion and tr
aini
ng for their members,elect
ed
repr
esentati
ves,manager s and employees so t
hey can contr
ibute ef
fecti
vel
yt othe
devel
opmentoft heirco-oper
ativ
es.Theyinfor
mt hegeneralpubli
c– par t
icul
arl
yyoung
peopleandopi ni
onleader
s–aboutt henatur
eandbenefit
sofco-operati
on.
”
Concer
nforcommunity:
Accordi
ngtotheI
CA'sSt
atementont
heCo-
operat
iveIdent
it
y,“Co-
oper
ati
vesworkf ort
hesust ai
nabl
edevel
opmentofthei
rcommuni
ti
est hr
oughpol i
cies
appr
ovedbythei
rmember s.
”
Obj
ect
ivesofcooper
ati
on:
El
iminationofmi ddlemen
Rai
singeconomi cst at
usoft hepoor
Remov al oftheill
sofcapi tali
sm
Rai
singmor al st
andar dsofitsmembers
I
ncreasingpr osper i
tyofthewhol ecommuni
ty
Aboli
tionofsoci al i
nequali
ties
Pol
iti
cal andr eli
giousneutralit
y
Developmentofcor porat
el i
fe
BENEFITSOFCO- OPERATION
1.EconomicBenefit
s
2.Soci
alandPolit
icalBenef
it
s
3.Educat
ionalBenefi
ts
EconomicBenefi
ts
Thesubsti
tuti
onofprofiti
ncenti
veinbusinessbythatofservi
cet
ot hecommunit
y.
Amor eequitabl
edistr
ibuti
onofweal t
h.
Abreakupofmonopol isti
ctendenci
es.
Incr
easeinpurchasi
ngpowerandr ealwagest oindi
vi
duals.
Reducti
onincostofdistri
buti
onsystem byeli
minati
onofunnecessarymiddl
emen.
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Themoreaccurat
ecorr
elati
onofdemandandsuppl
y.
Stabi
li
zat
ionofemploy
ment .
Cheapmarket
ingandprocessi
ngoffar
m pr
oduct
satreasonabl
epr
ices.
Soci
alandPol i
ti
calBenef it
s
Toprov i
deauni queeducat ionindemocracy,responsibi
li
tyandt
olerati
on.
Totrainforpoli
ticalpower .
Toev ol
veani ndust r
ialr
elati
onshi
pamongal l.
Topr eserveast rongf r
iendlyorfamilyspiritandsenseofpr ideandpowerwhi chis
impersonal.
Tosecur erat
ional constr
uctionanduni
fyingappr oachestosoci
alandeconomicprobl
ems.
Topr eventunder employmentandunempl oy
ment
Tosecur emor alaswel lasphy si
calsatisf
actionofpur equal
ity,corr
ectwei
ghtandfai
r
deal
ings.
Topr eventexploitati
onofmanbyman.
Educat
ional
Benef
it
s
Theindi
vi
dual
slear
nbyexperiencegainedi
npracti
cal
workofco-oper
ati
on.
Co-oper
ati
onalsosponsorseducati
on.Therearemanyco-
operati
veschoolsandcol
l
eges
for
medt oprovi
deaffordabl
eeducationandalsoemploymentt oeducatedunempl
oyed
yout
hs.
Et
hical
Benef
it
s
Thepoli
cyofhonest yisanecessit
yinco-operat
ion
Cooperati
onreturnsmoneyv alueforhonestyandothervir
tues.
Themot toofco-operati
onis“eachf oral
landallf
oreach”
Co-operat
ionai
msatt heproducti
onoff i
nehumanbei ngs.
Typesofcooper
ati
ves
Producer scooperat
ives
Wor kercooperati
ves
Consumercooper ati
ves
Creditunions
RetailorPurchasi
ngco- ops
Housi ngCooperativ
es
Compl exCasesandMul ti
-St
akehol
derCooper
ati
ves
HI
STORYOFTHECO-
OPERATI
VEMOVEMENT
Or
gani
zat
ionandManagementofCooper
ati
ves
Exi
stenceofini
ti
ati
vestoor gani
zeaCooper at
ive
Needt omakepreli
minaryinvest
igations
Considerat
ionf
orini
tial
member shipsizeandfutur
epopul
ati
on
Considerat
ionf
ormember ’spriv
ilegesandobligati
ons
Est
ablishmentofcorporat
eexistence
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PresenceofRul
esandBy e-l
aws
Leadershi
p
Fi
nancialCommitments
Capacityt
okeepfinanci
al andotherr
ecor
dsoft
heSoci
ety
Avail
abil
it
yofaudi
tingfacil
iti
es
CO-
OPERATI
VEMOVEMENTABROAD:
Co-
operativ
emov ementi nEurope:
Thecooper ativemov ementbegani nEur opein19thcent ur
yprimari
lyinBr i
tai
nandFr ance.
Thei ndustr
ialrevoluti
onandt hei ncreasingmechani zat
ionoftheeconomyt r
ansformed
soci
et yandthreatenedt heli
vel
ihoodsofmanywor kers.
Therewer eci rcumstancesandsi tuati
onst hatwer epr evail
i
ngi nBr i
tainthatmot i
vated
peoplet othinkandcomewi thalternativ
ewayofpr oducinggoodsandser vi
ces,thati s,
thr
ought heco- operati
ve.Inotherwor dsi twasthei ndustri
alandagr ar
ianrevoluti
onst hat
occurredinBr i
tai
nthatpr ovi
dedthef er
til
egr oundforthebi r
thofformal cooperati
ves.
TheSubsist
enceEconomy( Bri
tai
n):
Beforetheindust
ri
alrevol
uti
oninBr i
tain,theprev
ail
i
ngeconomicsyst
em wast
hedomest
ic
orsubsist
encesystem ofproducti
on.
Thesubsistencesyst
em graduall
ydev elopedtothemer
canti
lesyst
em.
TheIndust r
ialRev ol
ution:
Thei ndust ri
alrevoluti
onoccurr
edin1750-1850.
Therewasasuddenchangei nthesystem ofpr oducti
on.Thechangenecessit
atedby
machi nes, drivenbypower .
Thef ormermer chantswho wer eini
ti
all
ydependi ng on thecraf
tsmen now t
urned t
o
industriali
st/capit
alistandr
esult
ingt
omeansofpr oducti
on.
Whilei nthesubsi stenceeconomy,t
hemar ketwasl i
mited,nowthemarketwaswor l
dwi
de
and t he i ndustri
aleconomy soughtt o produce goods cheaply
,through mechani
cal
invention.
TheInventi
onsof1750and1850:
Thei nventi
onshadt odowi thspi nning,weav ingandpowersuppl y .JamesHar dgr
av ei n
1767i nventedt hemachi necal ledSpi nneyJenny ,Rochar dAr kwri
ghtin1769i nvent
edt he
waterf r
amet hebegi nningoft hefact orysystem.
Toat t
ractweav erst ot hef actory,thei ndustrial
istsof feredweav ershighwages,whi le
lookingforawayt odisplacet hem wi thmachi nes.Theweav erscamef rom t
hecountryside,
abandonedt hei
rhomesandf arms.
By1782,JamesWat tinventedt heSt eam Engi newhi chrenderedoldermachi nesobsolete.
Thei nventi
oncompl et
edt hemechani zationoft het exti
leindustr
yandt hestagewassetf or
thecapi tal
i
st stoexpl oitthewor kers.Al mosti mmedi atel
yt hewagesoft hehand-loom
FILE DOWNLOADED FROM BUSTUDYMATE.IN
weav
ersst
art
eddwi
ndl
i
ng.
TheAgr ar
ianRev oluti
on:
Wi t
hi nvent ionsi nmachi nesbr oughtin,ani mpr ov edt echnologyinagr i
culturalpr act
ices,
thepet tyf armer scoul dnol ongerwor kont heirfarms.
Ther ewer eot herbi ggerf armerswhower eproduci ngmor eandatcheaperr at es.Sincethe
bigf armer ssol di nl argequant i
tiesandatcheaperpr icest hepeasantf armer scoul dnot
copewi t
ht hesi tuation.
Thebi gl andl ordsl at erconsoli
datedanddr ovethepet tyf armer
sf r
om theirfarml ands.They
weref orcedt omi grat etothetownsandci tieswher et heyt houghtther
ewashope.
Butaspeopl est art eddr i
ft
inginl argenumber stot het ownsandci t
ies,therewasahi gh
increasei nunempl oy mentandt hewagesbei ngpai dt ot heworkersfel
l dr
astically.
Thewageswer esol owf oradultsthatthepar entswer emot i
vatedtosendt hei rchil
drento
wor kint hef act oryi nspit
eoft hehar shandunf av our abletr
eatmentt hatt hesechi ldr
en
werer ecei ving.
Boy s ear ned a penny a day ,and women t wo shi llings.Allthese led t o gambl i
ng,
drunkennessasat empor aryescapef rom realit
yaswel lasoccasionalstri
kesandmachi ne
Sur
vivaloft hef ittest :
Theext remel ylowwagesr esul tedi nthesur vivaloft hef ittestatti
tudeoft hegov ernment.
Labouruni onswer ebannedbyt hegov ernment .Thegov er nmentof fici
al sconni vedwi t
ht he
i
ndust ri
alist,t heshopowner sandt hel andlordsf ort hepur poseofexpl oitingt hepoor
workers.
Therewasnopubl i
cr egulationofeconomi cl if
ei nt hebel iefthatt hemaxi mum benef i
t
wouldcomet ot henat ionf rom t heexer ciseofunr estri
ctedf reedom andt hecompl eti
onby
i
ndividualsi nt hepur suitoft hei rprivateinterests.
Inthecut -t
hr oatcompet i
ti
ont hatr esulted,sur vi
v aldependedonr educi ngpr ices.Keepi ng
wagesandcostdown,maxi mi zingpr of
itsandr einv estingt hepr of i
tasgoodsofal lkinds
werepr oduced,Engl andsoonbecameacent reofat tr
act ionofal lEur opeandanat i
onof
shopkeeper s,whower eresent ingt hegoodst hatwer ealreadyadul terated.
Theshopkeeperf urthermademoneybyr aisingt hepr i
cesofgoods,andcheat i
ngt he
workerst hr ought hemani pul ationofwei ghtsandmeasur es.
Listthe di fferences bet ween t he subsi st
ence economyand t he i ndustrialized/market
economy .
Describet hef eat uresoft hef act orysy st
em ofpr oduct i
oni nBr i
tai
nbet ween1750and1850.
Showt heef fect soft heinvent ionofmachi neoncr aftsmanshi p.
Describet heci rcumst ancest hatt hefact orywor ker swer eoper at
ingbet ween1750- 1850i n
Brit
ain.
Howdi dt heagr ar i
anr evolutioni nBr it
ainleadt ot heeconomi candsoci al unresti ntheland?
REACTI
ONSOFTHEWORKERSANDSOCIALREFORMERSTOTHESOCI
O-ECONOMI
C
CONDI
TIONSINBRITAI
N
Pr
otest
s
Workerssoonst art
edt ocompl ai
n,loudlytoo,concer ni
ngthei
rplight
.Thegr oupcompl ai
nts
eventual
lyledt
omaj orpr ot
estsinciti
esofBr itain,suchasManchesterandBi rmingham.
Roadswer ebl
ockedandpl acardswer ecar riedbysomeoft hewor ker
s,leaderswer e
arr
estedandputt ojail
, butthisdidnotst opthepr otest
s.
Ati ndiv
iduallevel
,t her e wer e acts ofsabot age int he producti
on f l
oor,sensit
ive
component sofmachi neswer eremov edint heabsenceoff or
emen.Somewor ker
swer e
seenwi t
hdrawi
ngf rom t hei
rplacesofwor kasani ndicati
onofdiscontent
Format i
onofCo- oper at
iveOr ganizati
ons
Wor ker sco- operati
vegr oupwasf ormedev enthoughitdidnotl astl
ong.
Thiswas" t
hef ri
endlysoci ety"theav enueoft hegroupwast owor ktogetherandt otake
careoft hesi ckaswel l
asthosemember sthathavebeenber eaved.
Thef riendl ysocietywast oconsol eandt akecareoft hefami ly,moreso,whenf amilyti
es
hadal readybeensev ered.
Butt hef riendlysocietydidnotsur vi
veforl
ongf orseveral
reasons.
The gov ernmentwas st il
lhost i
let othe idea ofwor ker s coming t
ogethertof orm
associ ations.
Anot heri mpor t
antreasonwast hatthesociet
ywasnotoper atedaccordi
ngt odefi
nedr ul
es
and
regul ationsorwhatcoul dber egardedaspr i
ncipl
es.
Alsot hel eadersl ackedco- operativeeducati
onwi thwhicht omanagesuchor ganizati
ons
al
ongco-
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oper
ati
vel
i
nes.
DrWil
l
iam King:
DrKingwasamedicalpr
act
it
ionerwhosy
mpathi
zedwi
ththemi
ser
yoftheworkers.Hewas
humanitari
aninnat
ure.
Hefounded amonthl
yperi
odi ed TheCo-
calcal
l operator
,thefi
rst
edi
ti
onof
whichappear
edon1May1828.Thi
sgaveami
xtur
eofcooper
ati
vephi
l
osophyandpr
act
ical
adv
ice
aboutr unni ngashopusi ngcooper ati
vepr incipl
es.Dr .Ki
ng'scont r
ibuti
ont ocooper ati
vescan
beseen
from t hef ollowi ng:
Heest ablishedanur seryschool forchi l
dren.
Hepr omot edt hroughr egularl ect ureamechani c'si nsti
tuteinBrightonwher epeoplelearnt
aboutcarr epairs.
Hesetupaco- operativeorgani zat ionwi t
ht heco- operati
v ebenevolentfundassoci ati
on.The
benev olentf undwast ospr eadknowl edgeaboutco- operati
vewhi letheBr ight
onTr ading
Associ ationwast oengagei nr et ailtr
adi ng.
Heest ablishedanewspapercal l
edt heco- operatori nordertoshowpeopl ehowOwen' sidea
couldber eal izedthroughpr actical means.
Heemphasi zedmembereducat i
onf orco- operativemember ssoast or emov eignorance
from theirmi nds.
Headv ocat edact i
vepar t
ici
pat i
onoft hemanagementoft heirshopbyco- oper ati
vemember s,
throughpr operbookkeepi ngandsoundbusi nessmet hods.
Co- oper ativ esshoul dbuyatwhol esalepr iceandsel latmar ketpri
ce.Butthepr ofi
tsmustnot
beshar edout ,itshoul dbeaddedt ocapi taltoaugmenti t.
Whent heshophadacqui r edsuf fi
cientcapi talt hroughsel ffinancing,subsequentpr ofit
shoul dbeusedt ogiv eempl oy mentt omember s.
Co- oper ativ escanacqui rel andt opr oducet heirownf ood,buildtheirownhouses,bui l
d
school s,libr ari
es,ol dpeopl e' shomesandsoon.Bysodoi ngt heywi l
lgr aduall
ybecome
i
ndependentofext ernalaid.
Heencour agedt hehabi tofsav ingsbyco- operativ
emember st oacommonf undwhi chwoul d
thenbeusedascapi taltoest ablishbusi nesses.
Headv ocat edhandcashsal esandnotcr editsales.
TheRochdal
ePi
oneer
s(1844)
:
Themainobjecti
vesofRochDal eco-oper
ati
vewere:
1.Tot
akeuppr oducti
onanddi st
ri
butionofcommoditi
esrequi
redbymember s.
2.Tomakeav ai
labl
ehousest omemberf orimpr
ovingthei
rcondi
ti
onsoflif
e.
3.Tomanufacturear
ti
clesinordertoprovi
deemploymentopport
unit
ies.
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4.Tomeettheclothi
ngrequi
rement
soft
hemember s.
5.Toar
rangefortheeducati
onofmembersandsoon.
Soci
alr
efor
mer
s:
Pr
eRochdal
ethi
nker
s:
RobertOwen( 1771–1858) :
RobertOwenwasbor ni n1771andby1789wasamanagerofacot tonmi l
linManchest er.He
l
ater,toget herwithtwopar t
ners,boughtt henewLanar kCot tonMil
ls.Assoonast hi
smi llwas
bought ,Owenst artedtoi ntr
oducer adicalrefor
ms.Rober tOweni sconsider
edt hefat
heroft he
cooper ati
vemov ement.
Hei ntroducedmanyr eformsi nhi sownf actoryli
ker educingthewor ki
nghour s,i
ncreasing
wages, abol i
shedchildlabouret c.
Busi nesswi t
houtpr ofit
.Thisistheant i-
profi
tstanceoft hecooperat
ivemov ement.Heal so
adv ocatedthel i
mitati
onofdi videndspai dtocapital
.
Pr oduct ionofconsumer sfortheirownuse, andnotf orprof
it
.Thisistheideaoftheowner -
usernat
ureofco-
oper
ati
ve
Commonowner shipofthemeansofpr oduct
ion.
Thepr i
mei mpor tanceofeducat ionwhichwasconsi deredtobev i
talt
othesuccessofany
socialprogramme.
Voluntaryassoci ati
onasat echni queforsolv
ingsocialandeconomicprobl
ems.
Hechangedt hewor ki
ngandl i
vingcondi t
ionsoftheempl oyees.
Hest oppedchi l
dlabour
Hebui l
tschool sf orchi
ldr
ensot hattheycanreceiv
eeducat ion.
Hewast hef i
rsttoopenanur ser yschool i
nEurope.
Hei ncr
easedt hewagesoft heempl oyees.
Heencour agedgamesandr ecreati
onamongt heempl oy
eesasawayofr elaxat
ionand
keepingphy sicall
yandment allyfit.
Charl
esfourier( 1772- 1837):
CharlesFour ierwasbor ni nBesancon,Fr anceonApr il7,1772anddi edonOct ober10,
1837.Four ierwasaweal thymanduet ohisi nheri
tancef rom hisfather.
He t r
av ell
ed t ov arious pl aces,i ndulging himsel fi nt he busi ness wor l
d.From hi s
experience,Four ierr ealizedt hei mmor ali
tyoft hebusi nesswor ldandsaw i tfi
tthathe
createsasy stem inwhi cht heeconomyandbusi nesst hrived.
WhatFour i
err ecognizedast hepr oblem waspov erty.
CharlesFour ierwant edt ohel phumani t yandf i
xwhathebel i
evedwast hegli
tchint he
economy .
Hepubl ishedhi sfirstbooki n1808t hatwast i
ted“
l TheSoci alDestinyofMan” .
Inthisbook, Fouri
ercr i
ticizedt heimmor alityofthebusi nesswor ld.
Hebel iev edt hat,“
truthandcommer cear easi ncompat i
bleasJesusandSat an.”
Heal sobel i
ev edthatpov er
tywast her ootofev i
lint hebusi nesswor l
d, andthatinorderto
makeamendst ot heeconomy , soci
al i
sm woul dhav etobeenf or
ced.
Fourierism wast hei deasofFour ierandhi ssoci al
istpl ant o savet heeconomyand
businesswor l
d.
Accor dingt of ourierexi stingsoci alsy stem di dnotal low af reepl ayoft welvemaj or
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passionsofmanki ndl i
keseei ng,hear i
ng,smel li
ng,feel i
ng,t asting,enmi ty,lov e,fraternity,
ambi ti
on, desi re,loveofchangeanddesi reforuni on.
Hesuggest edt hatpeopl eshoul df ormt hemsel vesi ntov oluntaryassoci ati
onwhi chhe
call
edphal anxes.
Fourierbel iev edt hatpov ertywast her easonf ordisordersoci all
yandeconomi cally.
Themai ngoalofFour ierwast ocr eat easoci etyinwhi cht hepeopl eworkedt oget her, both
ri
chandpoor ,tocr eateasoci aleconomyt hatwaspr ofitableandal sosav edt i
meandl abor
fortheci tizens.
Byuni tingal lpeopl er egardlessofeconomi cst atus,Four i
erhopedt oelimi natet hepov ert
y
thatwasst unt ingt hesuccessofsoci aleconomy .
Her ewar dedi ndividualsont heirlaborandt alentandcont ribution.Justl ikepl easur eneeds
vari
et y,sodi dwor k.Four i
erbel iev esthatt hepeopl eshoul dconst ant
lyswi tchr olesand
havev ari
et yi nt heirwor kwhi chpr oducest hebestr esult.
Social Cont ract: NewSoci ali
stSyst em ofCooper ati
on:
Hesuggest edt hat“ phalanxes”shoul dbeest ablished.
Phalanxes,whi char eexper i
ment al ,areplacest hatcombi nef amiliesthatar eunequali n
fort
uneandr ewar deachper sonaccor di
ngt ot het hreepr oper ti
es:Capi tal,Labor ,and
Talent.
Phal anx's, of feramaxi mum ofbot hcooper ationandsel f-
fulfil
mentt oit
smember s.
Thesebui ldi ngswer edesi gnedt oaccommodat eaper son’ spassi onsandt al
ent s.Hav i
ng
similarit
ieswi llal l
ow t hemember ’
st ohar moni zei nal essamountoft imeandmor e
easil
y .Hesawt hatbyuni t
ingal leconomi cclasses, andal lowi ngt hem towor kt ogether ,the
problem ofpov ertywoul dbedi mi nished.
Fourieral sosawt hataf ri
endlyuni onwoul dbef ormedbet weent hepeopl ebecauseoft he
similarit
ies t heyal lshar ed t herefor e,creating happi ness and cheer f
ul ness wi thint he
society .
Loui
sbl anc( 1813- 1882):
Loui sJeanJosephChar lesBl ancwasaFr enchpol it
icianandhi st ori
an.
A soci ali
stwhof avor edr eforms,hecal l
edf ort hecr eati
onofcooper ativesi nor derto
guar anteeempl oy mentf ort heur banpoor .
Followingt heRev olutionof1848Bl ancbecameamemberoft hepr ovi
sionalgov ernment
andbeganadv ocatingf orcooper ati
veswhi chwoul dbei niti
all
yai dedbyt hegov ernment
butul ti
mat elycontrolledbyt hewor kerst hemsel ves.
Heat tr
ibutesal ltheev i
lst hataf f
li
ctsoci etyt ot hepr essureofcompet it
ion,wher ebythe
weakerar edr i
vent ot hewal l.
Hedemandedt heequal i
zationofwages,andt hemer gingofper sonali nterestsi nthe
commongood—" Dechacunsel onsesf acultés,àchacunsel onsesbesoi ns",whi chisoften
tr
ansl atedas" from eachaccor di
ngt ohisabi li
ty ,
toeachaccor dingt ohi sneeds. "
Thiswast obeaf fectedbyt heest abli
shmentof" soci alwor kshops" ,asor tofcombi nedco-
oper ati
vesoci etyandt rade-union,wher ethewor kmeni neacht r
adewer et ouni tetheir
effortsfort hei
rcommonbenef it
.
Hehadwr itenor
t gani zati
onDeUl t
ravailappear edi n1840.
Hear guedt hatcompet i
ti
onwasmai nr easonsr esponsi bl eforprev al
entpov erty,depression,
crime, prostitut
ionandal lothersoci alevils
Hewant edtoest abli
shofsoci alworkshopsv oluntar yor ganizati
onofpr oducer s
I nthesewor kshopsi nst r
ument sofpr oduct i
onwer et obef urni
shedbyst ateandl abour
Pr of i
tsofwor kshopswer et obedi v
idedi nto:
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Fort hewagesofl abour
Forcr eat
ingf undforpay i
ngtheadvancemadebyt hegover
nmentf orsuppl
yofcapi
tal
for
f
utur
eent er
prises
Forpr ofi
tstobedi stri
butedamongt helabor
ersinaddit
iont
ot hei
rwages
Blancadvocatedt hetheoryofRightt
ol abour
.Accordingt
owhi chgovernmentwasrequi
red
togiveguaranteeofwor ktoeverybody
PostRochdal
ethi
nker
s
Themainaimsoft hesesocietieswereasfoll
ows:
1.Torai
sestandardofl i
vi
ngofi tsmember s.
2.Toprovi
deloantoitsmember s.
3.Toprovi
deconsumergoods.
4.Todevel
opthespi r
itofthri
ftamongmember s.
5.Toeducatethemember sonco- oper
ati
on.
6.Torai
semor alst
andar dofthepeople.
FILE DOWNLOADED FROM BUSTUDYMATE.IN
Thesal i
entf eat uresofRai ffeisensystem are:
1.Smal lershar e
2.Li
mi tedar eaofoper ati
on
3.Unlimi tedliabil
ity
4.Stri
ctandcar efulselectionofmember s
5.Creditf orlongerper iods
6.Stri
ctsuper visiononut i
l
izationofloan
7.Divi
dendwasnotdi stri
buted
8.El
ect edbuthonor arymanagement
9.Mor al developmentwascar ed
10.Deposi t
scol lectedf ormember sandnonmembers
11.Final author i
tyv estedwi thGeneral body;and
12.Per manentandi ndivisi
bleReser vef und.
Drwar
basse:
Jameswar bassewasanAmer icandoctorwho becamet hefir
stpresi
dentoftheUS
nati
onal cooperat
ivebusi
nessassoci
ati
on.
War bassewasat i
rel
essadvocat
eforsoci
alequal
it
yandeconomicdemocracy.
Cooper ati
veeconomi csi
sthebestmodelforcreat
ingani
nclusi
veeconomyinthecont
ext
ofpersonal fr
eedom andpoli
ti
calaut
onomy.
Mahat
maGandhi :
Accordingt oGandhi ,cooper ationwasnecessar yforcreati
onofsoci ali
sticsoci
etyand
completedecent ral
izati
onofpower .
According t o Gandhicooper ati
on mustbe st ri
ctl
yv oluntary
.Accor ding to Gandhi
coopera¬tionwasessent i
allyamor almov ement.I
tcouldsucceedonl yi fhonestpeople
managedcooper a¬tiveseff
icient l
yandwi thint
egri
ty.
Oncehesai dthatt heindustri
al act i
vit
iesshouldbedi v
idedint
ot woclasses,
1.Onet obet akenuponcooper ativelinesforthebenefi
tof90%oft hepopul at
ioninIndia.
Anyi ndustrybasedonagr iculturepr oducesuchascot ton,sugar,oilseed,wheatet c.
shouldbeonacooper ati
vebasi s.
2.Ot herssect or
swhi chdonotexpl oitweakersectionofthesoci et
yshoul dbeleftt
ot he
capital
ists.
Jawahar
lalNehr
u:
Jawaharl
alhadvisuali
zedcertai
npost
ulat
esonthebasi
sofwhi
chcooper
ati
veswer
etobe
organi
zedandtheirfunct
ioni
ngtobecarri
edout
.
Voluntar
iness:Jawahar
lalwasagai
nstanykindofcompulsi
onorcoercioni
ncooperat
ive
mov e¬ment .Tohimi tmustcomef r
om wi
thinofanindiv
idualandnotfor
ceduponhim
fr
om out side.Itshouldbev ol
unt
arydeci
sionofani ndi
vidualt
ojoinornottojoina
cooperati
ve.
Autonomy:Nehr
uf eltthati
twasnecessarytodevel
opasenseofsel f
-confi
dencei
nthe
people.I
ncaset heyhadnodeci sion-
maki
ngpowerandcooperat
iveswer emanagedby
outsi
depeople,
gov ernmentof
fi
cersorsomeoneel
se,t
hepeopl
ewil
lloseini
ti
ati
ve.
Soci
alcohesi
on:
Accor
dingt
o Nehr
u,t
heessent
ialchar
act
eri
sti
cofacooper
ati
vewas
Sel
f-r
eli
ance:Thefourthi
mport
antprinci
pleofcooperat
ionissel fr
eli
ance.Jawaharl
alhad
vi
suali
zed thatf orautonomy sel
fr el
iance was essenti
al.He had emphasi zed t
hat
cooperat
ionwassel f
-hel
p.Out
sidehelpshoul
dbe,ifatallnecessar
y,temporar
yandnotas
permanentarrangement.
Fl
exibi
li
ty:
Accor
ding t
o Jawahar
lal
,cooper
ati
ves mustsui
ttot
he l
ocalneeds and
envi
ronment.
Accor
dingt
oJawahar
lal
fol
l
owi
ngar
esomepr
e-condi
ti
onsf
orsuccessofcooper
ati
vemov
ement
:
Educat i
onandtraini
ng:Accor di
ngt
ohi mi ft hecooperat
ivemov ementwast osucceedi n
ourcount r
yandi tmust ,thenitmustbepr ecededbycar ef
ultrai
ningandeducation.
AccordingtoNehr u,“worki
ngofcooper at
ivesrequir
est r
ainingandski l
l
s.Ofcourset he
organizerr
equi
resagr eatdealoft
rainingandagr eatdealofskill
.Evenasecr et
aryofa
vi
llagecooper
ati
v erequir
essomet r
aining,someski l
lofkeepingsimpleaccount
s.”
Cooperat
iveeducationinschool s:Jawaharl
alhadv i
suali
zedt hatitwasnecessar yand
i
mpor t
antthatyoungergener ati
onshouldbeacquaintedwi t
ht hecooperati
vephil
osophy
andconceptualtheearl
iestpossibl
estage.I
fanideaisrecei
v edatthei
mpr essi
onableage,
i
tinfl
uencesani ndi
v i
dual’
sat t
it
udeatt hel
atterst
agei nli
fe.Accordi
ngt oNehru,itwas
i
mpor t
anttointr
oducecooper ati
onasasubjectinourhighschoolsinasimpleform sothat
i
tformsapar tofbasictrai
ning.
”
Non-poli
ti
calcharact
er:Jawaharlalhadvi
sual
izedcooper
ati
vemovementasnon-pol
it
ical
i
nsti¬t
uti
ons,fortheywer eorganizedtomeett hecommoneconomi cneedsofpeople.
Nehruwant edthem t obemai ntainedassuchbykeepingthepart
ypoli
ticsawayfrom
cooperat
ivemov ement.Nehr
udi dnotwantanypart
iestof
uncti
oni
nanyofthecooper
ativ
e
organi
zati
onsaspar t
ies.
Cautionagainstexpl
oit
ati
on:Nehru’
svi
sioncoul dal
soseet heothersi
deofthecoin,t
hatit
,
thepossibili
tyofsomepeopl edev el
opingv estedint
erestinthecooperativ
esf orthei
r
personalgainsororgani
zi
ngboguscooper at
ives.Nehrucauti
onedagainsti
t.Nehr
uwant ed
realcooperati
veandnotcooperat
ivesi
nnameonl y.