Cooperative

Cooperative Definition

Cooperative organisations are voluntary associations characterised by the absence of a distinct class of ownership and capital provision; they are jointly owned and financed by their members, who also participate in determining the organisation’s policies.

Origins and Theory

The movement for cooperation draws its roots from the ideas of thinkers such as Charles Fourier in France and Robert Owen in Great Britain during the early nineteenth century. Owen’s initial vision sought to establish a self-supporting community where producers and consumers were unified. While this ideal was rarely fully realised, Owenism provided inspiration for later cooperative developments, notably the Mondragon cooperative community in Spain.

Forms and Practice

In practice, cooperatives are typically divided into two main forms: consumer cooperatives, which have a long and successful history, particularly in Great Britain and Sweden, and producer organizations, such as farming cooperatives that handle the purchase, processing, and marketing of goods across Europe and America. Although producer cooperatives in manufacturing faced historical difficulties related to securing sufficient capital and managing member-controlled entities, their growth in Western Europe and the USA demonstrates potential. The Mondragon group exemplifies how financial and managerial challenges can be successfully navigated through cooperative structures, leading to high efficiency in producer cooperation.

Socio-Economic Significance

Cooperatives represent a form of socialised ownership that operates alongside a market economy. This dual structure has led to critical perspectives; consequently, figures like Karl Marx and modern Marxists have sometimes criticised them as ‘worker capitalism’. Furthermore, cooperatives transform industrial relations by vesting significant commitment in members, often exceeding that found among employees in conventional firms, thereby altering the dynamics of labour.