Cooperatives

Definition

A co-operative is 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.

The Wikipedia has a very elaborate entry on Cooperatives, at http://en.wikipedia.org/wiki/Cooperative

Values

Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others.

Principles behind cooperatives

From http://www.ica.coop/coop/principles.html

The co-operative principles are guidelines by which co-operatives put their values into practice.

1st Principle: Voluntary and Open Membership

Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

2nd Principle: Democratic Member Control

Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organised in a democratic manner.

3rd Principle: Member Economic Participation

Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.

4th Principle: Autonomy and Independence

Co-operatives are autonomous, self-help organisations controlled by their members. If they enter to agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.

5th Principle: Education, Training and Information

Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation.

6th Principle: Co-operation among Co-operatives

Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.

7th Principle: Concern for Community

Co-operatives work for the sustainable development of their communities through policies approved by their members.

Discussion

How is Cooperative Production related to P2P?

Michel Bauwens, comparing p2p and cooperatives:

"1. P2P is based on cyberspace and then it has a global scale and cooperatives are designed on a physical (and more local) production system.

2. P2P belongs to all and cooperatives belong to an specific collective, you know, the workers that are the owners.

3. P2P produces value and cooperatives run in the marketplace and, because of that, they create basically exchange value.

4. P2P is emerging as a phenomenon supported by online world and cooperatives are reduced and marginalized in our capitalist world.

5. P2P is a system where anyone contributes but without any exigency of return and cooperatives are based on reciprocity.

6. They can be complementary in the following way: 1) globa-local Open Design communities create a Commons for the global development of the knowledge; 2) local cooperatives work in the marketplace, using the open designs, and contributing to it."

More Discussion

Blog entries:

1. http://blog.p2pfoundation.net/p2p-markets-cooperatives-the-state-and-altruism/2006/03/17
2. http://blog.p2pfoundation.net/p2p-and-the-cooperative-movement-2/2006/03/11
3. http://artesaniaenred.blogspot.com/2006/03/p2p-cooperatives-and-mondragon.html
4. http://blog.p2pfoundation.net/p2p-and-the-cooperative-movement-critical-comments-from-marcus-moltz/2006/02/20
5. http://blog.p2pfoundation.net/cooperative-capitalism-as-an-intermediary-between-the-market-and-peer-production/2006/02/20
6. http://blog.p2pfoundation.net/p2p-and-the-cooperative-movement/2006/02/15

More Information

See http://www.ica.coop/calendar/ga2005/birchallkey.pdf