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History of the Cooperative Movement

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Page 1: History of the Cooperative Movement

Prepared by: Jo B. Bitonio

Philippines

Page 2: History of the Cooperative Movement

Robert OwenWilliam KingThe Rochdale PioneersCharles FourierCharles GideBeatrice WebbFriedrich Raiffeisen

Key Theorists

Page 3: History of the Cooperative Movement

Robert Owen (1771– (1771–1858)1858)

OWEN first cooperative theorist and credited with inspiring the Rochdale Pioneers, who in 1844 began the cooperative movement at Rochdale, Lancashire

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Owen believed in putting his Owen believed in putting his workers in a good environment with workers in a good environment with access to education for themselves access to education for themselves and their children. These ideas were and their children. These ideas were put into effect successfully in the put into effect successfully in the cotton mills of of New Lanark, , Scotland. .

Robert Owen (1771–1858)

Fathered the cooperative movement. A Welshman who made his fortune in the cotton trade

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Owen had the idea of forming "villages of cooperation" where workers would drag themselves out of poverty by growing their own food, making their own clothes and ultimately becoming self-governing. He tried to form such communities in Orbiston in Scotland.

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It was here that the first co-operative store was opened.

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His efforts bore fruit in the international cooperative movement, launched at Rochdale, England, in 1844. Owen died on November 17, 1858, in his home town of Newtown

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Although Owen inspired the Although Owen inspired the cooperative movement, others – such as– cooperative movement, others – such as– Dr William King took his ideas and Dr William King took his ideas and made them more workable and practical. made them more workable and practical.

King believed in starting small, and King believed in starting small, and realized that the realized that the working classes would would need to set up cooperatives for need to set up cooperatives for themselves, so he saw his role as one of themselves, so he saw his role as one of instructioninstruction. .

Dr William King (1786–1865)

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He founded a monthly He founded a monthly periodical called periodical called The The CooperatorCooperator, the first edition , the first edition of which appeared on of which appeared on May 1, , 1828. This gave a mixture of . This gave a mixture of cooperative philosophy and cooperative philosophy and practical advice about practical advice about running a shop using running a shop using

cooperative principles.cooperative principles.

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King advised people not to King advised people not to cut themselves off from cut themselves off from society, but rather to form a , but rather to form a society within a society, and society within a society, and to start with a shop because, to start with a shop because, "We must go to a shop every "We must go to a shop every day to buy food and day to buy food and necessaries—why then should necessaries—why then should we not go to our own shop?"we not go to our own shop?"

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He proposed sensible He proposed sensible rules, such as having a rules, such as having a weekly account audit, weekly account audit, having 3 trustees, and not having 3 trustees, and not having meetings in having meetings in pubs (to avoid the temptation (to avoid the temptation of drinking profits).of drinking profits).

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Beatrice WebbBeatrice Webb was the author of The was the author of The Co-operative Movement in Great Britain Co-operative Movement in Great Britain (1891).(1891).

Charles Fourier should also be mentioned as an important influence. The Pioneers established the first consumer cooperative, leading to a worldwide movement. They also experimented with a producer cooperative, which soon failed.

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A few poor weavers joined A few poor weavers joined together to form the together to form the Rochdale Equitable Pioneers Society at the end of 1843. The at the end of 1843. The Rochdale Rochdale PioneersPioneers, as they became known, , as they became known, set out the set out the Rochdale Principles in in 1844, which have been highly 1844, which have been highly influential throughout the influential throughout the cooperative movement. cooperative movement.

The Rochdale Pioneers

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In modern form, In modern form, cooperatives date from cooperatives date from 1844, then a group of 28 1844, then a group of 28 impoverished weavers of impoverished weavers of Rochdale, England, Rochdale, England, founded a mutual-aid founded a mutual-aid society, called the society, called the Rochdale Society of Rochdale Society of Equitable Pioneers.Equitable Pioneers.

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As its initial project, the society As its initial project, the society organized a organized a grocery storegrocery store, a venture , a venture that rapidly prospered. The principles that rapidly prospered. The principles developed for the guidance of this developed for the guidance of this enterprise and others organized by the enterprise and others organized by the Rochdale Society have served, with Rochdale Society have served, with codifications in emphasis, as the basic codifications in emphasis, as the basic code of the consumer cooperative code of the consumer cooperative movement since that time. movement since that time.

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The The successful example of successful example of cooperative business cooperative business provided by the Rochdale provided by the Rochdale Society, which also Society, which also established between 1850 established between 1850 and 1855 a and 1855 a flour mill, a flour mill, a shoe factory, and a textile shoe factory, and a textile plantplant, was quickly emulated , was quickly emulated throughout the country.throughout the country.

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By 1863 more than 400 By 1863 more than 400 British cooperative British cooperative associations, modeled associations, modeled after the Rochdale after the Rochdale Society, were in Society, were in operation. Thereafter the operation. Thereafter the English movement grew English movement grew steadily, becoming the steadily, becoming the model for similar model for similar movements worldwide.movements worldwide.

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By the mid-20th century, it By the mid-20th century, it comprised almost comprised almost 2,4002,400 associations of all types. The associations of all types. The Cooperative Wholesale Cooperative Wholesale Society is the largest Society is the largest distributive agency in distributive agency in England.England.

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((1) 1) democratic control, with each member democratic control, with each member entitled to only one vote, regardless of the entitled to only one vote, regardless of the number of his or her total shares; number of his or her total shares;

(2) membership open to all, irrespective of (2) membership open to all, irrespective of race, creed, class, occupation, or political race, creed, class, occupation, or political affiliation; affiliation;

3) payment of limited interest on invested 3) payment of limited interest on invested capital; capital;

(4) distribution of net profits, usually called (4) distribution of net profits, usually called savings or earnings, to cooperative savings or earnings, to cooperative members in proportion to the amount of members in proportion to the amount of their patronage.their patronage.

Rochdale Principles

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a.a.part of cooperative earnings are part of cooperative earnings are utilized to expand operationsutilized to expand operations

b.b. non-members may become non-members may become members by letting their share of members by letting their share of net profits be applied towards their net profits be applied towards their initial share stock; initial share stock;

Supplemental Principles

The Rochdale Society developed a number of supplemental principles, which are generally observed in contemporary consumer cooperatives. According to these:

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c. c. goods and services are sold for cash goods and services are sold for cash at prevailing market prices; reserve at prevailing market prices; reserve funds are regularly accumulated for funds are regularly accumulated for the purpose of covering depreciation the purpose of covering depreciation and meeting possible emergencies; and meeting possible emergencies;

d educational activities, designed to d educational activities, designed to increase and inform the cooperative increase and inform the cooperative membership, are systematically membership, are systematically sponsored and conducted. sponsored and conducted.

e. Other supplemental principles hold e. Other supplemental principles hold that labour must be fairly treated that labour must be fairly treated and that cooperatives should work and that cooperatives should work togethertogether

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World Cooperative Movement

Worldwide, some Worldwide, some 800800 million people are million people are members of cooperatives, members of cooperatives, and it is estimated that and it is estimated that cooperatives employ some cooperatives employ some 100100 million people. million people.

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UK, France, Germany, Belgium, Austria, Italy, Denmark, Finland, Norway, and Sweden.

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Notable among the European countries in which consumer cooperation received early popular support were France, Germany, Belgium, Austria, Italy, Denmark, Finland, Norway, and Sweden.

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Euros 11B

housing healthCredit union

doctor

Football club

buyingWhole foods

careleisure

consumers

workers

Euros 1.3 B

Source: Mr. Bob BurltonMidcounties Co-operative, United KingdomAug. 2006

agriculture

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•Credit unions are also established in the UK. The largest are work-based, but many are now offering services in the wider community.

•The Association of British Credit Unions Ltd (ABCUL) represents the majority of British Credit Unions.

Credit Union

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both noted for promoting ethical investment

The UK Co-operative Group

insurance provider CIS Co-operative Bank

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British Building Societies developed into general-purpose savings & banking institutions with "one member, one vote" ownership and can be seen as a form of financial cooperative (although many 'de-mutualised' into conventionally-owned banks in the 1980s & 1990s).

Building cooperative

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Building cooperativeMembers of a building cooperative (in Britain known as a self-build housing cooperative) pool resources to build housing, normally using a high proportion of their own labour. When the building is finished, each member is the sole owner of a homestead, and the cooperative may be dissolved.

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This collective effort was at the This collective effort was at the origin of many of Britain's origin of many of Britain's building societies, which however , which however developed into "permanent" developed into "permanent" mutual savings and loan organisations, a term which organisations, a term which persisted in some of their names persisted in some of their names (such as the former (such as the former Leeds Leeds PermanentPermanent).).

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Nowadays such self-building Nowadays such self-building

may be financed using a may be financed using a step-by-step step-by-step mortgage which which is released in stages as the is released in stages as the building is completed. The building is completed. The term may also refer to term may also refer to worker cooperatives in the worker cooperatives in the building tradebuilding trade

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Agricultural cooperative

Agricultural cooperatives are widespread in rural areas.

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out by private traders, producers In Britain agricultural marketing is carried ’ cooperatives, and marketing boards for certain products. The number of marketing boards has been steadily reduced over the past 20 years.

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Co-operative Wholesale SocietyAccording to cooperative

economist Charles Gide, the aim of a cooperative wholesale society is to arrange “bulk purchases, and, if possible, organise production.”

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The best historical example of this were the English CWS and the Scottish CWS, which were the forerunners to the modern Co-operative Group

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Cooperative Bank, Credit Union & Coop Savings Bank

The Co-operative Bank's head office, 1 Balloon Street, Manchester.

The statue in front is of Robert Owen, a pioneer in the coopmovement

Credit Unions provide a form of cooperative banking

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Other important European banking cooperatives include the Crédit Agricole in France, Migros and Coop Bank in Switzerland and the Raiffeisen system in many Central and Eastern European countries.

European Banking Cooperative

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The Netherlands, Spain, Italy and various European countries also have strong cooperative banks. They play an important part in mortgage credit.

Cooperative banking Cooperative banking networks, which were networks, which were nationalized in Eastern nationalized in Eastern Europe, work now as real Europe, work now as real cooperative institutions.cooperative institutions.

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A remarkable development has taken place A remarkable development has taken place in in PolandPoland,, where the where the SKOK ((Spółdzielcze Spółdzielcze Kasy Oszczędnościowo-KredytoweKasy Oszczędnościowo-Kredytowe) ) network has grown to serve over 1 million network has grown to serve over 1 million members via 13,000 branches, and is members via 13,000 branches, and is larger than the country’s largest larger than the country’s largest conventional bank.conventional bank.

In In Scandinavia, there is a clear distinction , there is a clear distinction between between mutual savings banks (Sparbank) (Sparbank) and true and true credit unions (Andelsbank (Andelsbank

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Housing cooperative

A housing cooperative is a legal mechanism for ownership of housing where residents either own shares (share capital co-op) reflecting their equity in the co-operative's real estate, or have membership and occupancy rights in a not-for-profit co-operative (non-share capital co-op), and they underwrite their housing through paying subscriptions or rent.

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In Market-rate housing cooperatives, members may sell their shares in the cooperative whenever they like for whatever price the market will bear, much like any other residential property. Market-rate co-ops are very common in New York City.

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Limited Equity housing cooperatives, which are often used by affordable housing developers, allow members to own some equity in their home, but limit the sale price of their membership share to that which they bought in for.

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Worker Cooperative A A worker cooperative or or producer producer

cooperativecooperative is a cooperative that is is a cooperative that is wholly owned and democratically wholly owned and democratically controlled by its "worker-owners". controlled by its "worker-owners". There are no outside, or consumer There are no outside, or consumer owners, in a workers' cooperative. Only owners, in a workers' cooperative. Only the workers own shares of the the workers own shares of the business. Membership is not business. Membership is not compulsory for employees, but only compulsory for employees, but only employees can become members employees can become members

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Mutual Insurance

Insurance companies are owned by their shareholders, who in return for providing the company with capital by their share purchases, share in the profits in the form of dividends.

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Mutual insurance companies, however, do not issue shares but operate solely on the money obtained as premiums; these organizations are owned by the policyholders, who share in the profits and losses.

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Retailers' cooperative

A retailers' cooperative (often known as a secondary or marketing co-operative in the UK) is an organization which employs economies of scale on behalf of its members to get discounts from manufacturers and to pool marketing. It is common for locally-owned grocery stores, hardware stores and pharmacies. In this case the members of the cooperative are businesses rather than individuals.

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Social Cooperative

Social cooperatives are legally defined as follows: the objective is the general benefit of the community and the social integration of citizens

type A cooperatives provide health, social or educational services

type B integrate disadvantaged people into the labour market. The categories of disadvantage they target may include physical and mental disability, drug and alcohol addiction, developmental disorders and problems with the law.

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Consumers Consumers CooperativeCooperative

A consumers' cooperative is a business owned by its customers. Employees can also generally become members. Members vote on major decisions, and elect the board of directors from amongst their own number.

A well known example in the United States is the REI (Recreational Equipment Incorporated) co-op, and in Canada: Mountain Equipment Co-op.

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The world's largest consumer cooperative is the Co-operative Group in the United Kingdom, which offers a variety of retail and financial services. There are also a number of other, independent consumer cooperative societies in the UK, such as the East of England Co-operative Society and Midcounties Co-operative.

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In fact the Co-operative Group is actually something of a hybrid, having both corporate members (other consumer cooperatives) and individual members

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Utility cooperative

A utility cooperative is a public utility that is owned by its customers. It is a type of consumers' cooperative. In the US, many such cooperatives were formed to provide rural electrical and telephone service

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UK co-operatives retain a UK co-operatives retain a significant market share in significant market share in food retail, insurance, banking, , insurance, banking, funeral services, and the travel funeral services, and the travel industry in many parts of the industry in many parts of the country.country.

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In the UK, cooperatives formed the In the UK, cooperatives formed the Co-operative Party in the early 20th century to in the early 20th century to represent members of co-ops in Parliament. represent members of co-ops in Parliament.

The Co-operative Party now has a permanent The Co-operative Party now has a permanent electoral pact with the electoral pact with the Labour Party, and has 29 , and has 29 Members of parliament who were elected at the Members of parliament who were elected at the 2005 General Election as 'Labour and Co-2005 General Election as 'Labour and Co-operative' operative' MPs. .

Co-operative Party

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DenmarkDenmark

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A notable feature of agriculture in Denmark is the influence of the cooperative movement. Cooperative associations dominate the production of dairy products and bacon. A large percentage of agricultural produce is sold through marketing cooperatives.

DenmarDenmarkk

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Most cooperatives are organized in national associations, which are members of the Agricultural Council, the central agency for the cooperatives in dealings with the government and industry, and in foreign trade

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Germany

Friedrich Wilhelm Raiffeisen

, the , the founder of founder of the the co-operative movement of of credit unions

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Raiffeisen Zentralbank, a cooperative bank , a cooperative bank based in Austria, and operating in Eastern based in Austria, and operating in Eastern Europe Europe

Bundesverband der Deutschen Volksbanken und Raiffeisenbanken, a federation of Raiffeisen , a federation of Raiffeisen

cooperatives in Germany cooperatives in Germany

Schweizer Verband der Raiffeisenbanken, the , the federation of Raiffeisen cooperative banks in federation of Raiffeisen cooperative banks in Switzerland Switzerland

Germany

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NetherlandsNetherlands

Rabobank, cooperative bank in the Netherlands

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NestleNestle Dean FoodDean Food Dairy Farmers of America - CoopDairy Farmers of America - Coop DanoneDanone Fonferra - CoopFonferra - Coop KraftKraft Land o’Lakes - CoopLand o’Lakes - Coop LactalisLactalis Aria Foods - CoopAria Foods - Coop Meilli DairiesMeilli Dairies Friesland Foods - CoopFriesland Foods - Coop UniliverUniliver Morinaga Milk IndustriesMorinaga Milk Industries ParmalatParmalat Campina - CoopCampina - Coop BongrainBongrain Human Milchunion - CoopHuman Milchunion - Coop SaputoSaputo Nordmilch - Coop Nordmilch - Coop SodiaalSodiaal - Coop - Coop

World’s dairy top 20 includes 8 co-operatives

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1. Vion - meat2. Friesland Foods - dairy3. Campina - dairy4. FloraHolland - ornamental5. Biomenveilling Aaismeer - ornamental6. The Greenery - vegetables7. Cosum - sugar 8. Cehava Landbouwbelang - supply 9. Avebe -starch10. Cabeco Group - Supply, poultry11. Agrifirm - supply12. CNB - ornamental13. DOC Kaas - dairy14. FresQ - fruits15. ForFarmers - supply16. Fruitmasters Group - fruit 17. Agrico - potatoes18. CZAV - grains19. CNC - mushrooms20. HZPC - potatoes

NETHERLAND FOOD & AGRI CO-OP TOP 20

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a. market oriented and a. market oriented and entrepreneurialentrepreneurial

b. member interests in market b. member interests in market developmentdevelopment

c. capitalization and voting rights c. capitalization and voting rights are distributed to members in are distributed to members in proportion to their transaction proportion to their transaction volume with the coop firm specific volume with the coop firm specific capitalization instrumentscapitalization instruments

Key Feature of Modern Coops

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Key Feature of Modern Coops

d. member representation is d. member representation is democraticdemocratic

e. members can effectively e. members can effectively influence long term strategyinfluence long term strategy

f. cooperative constitution in f. cooperative constitution in accordance with market accordance with market conditioncondition

Source: Dr. Doeke Faber Source: Dr. Doeke Faber Netherlands Institute for Co-operative Netherlands Institute for Co-operative Entrepreneurship (NICE)Entrepreneurship (NICE) Aug. 2006 Aug. 2006

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USA & CanadaUSA & Canada

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In the United States In the United States cooperatives are generally cooperatives are generally organized according to state organized according to state law. They are often organized law. They are often organized as non-capital stock as non-capital stock corporations under state-corporations under state-specific cooperatives laws, specific cooperatives laws, which often restrict the use of which often restrict the use of the words "cooperative" and the words "cooperative" and "co-op" to such organizations."co-op" to such organizations.

. .

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However, they may also be However, they may also be organized as business organized as business corporations or or unincorporated associations, unincorporated associations, such as such as Limited Liability Companies (LLCs) or or partnerships; such forms ; such forms are useful when the members are useful when the members want to allow some members want to allow some members a greater share of the a greater share of the control, which may not be control, which may not be allowed under the laws for allowed under the laws for cooperativescooperatives

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Cooperatives do not generally pay Cooperatives do not generally pay dividends, , but return savings or profits, sometimes but return savings or profits, sometimes known as patronage, to their members. known as patronage, to their members. Cooperatives can have special income tax Cooperatives can have special income tax benefits in the United States; however, benefits in the United States; however, because they are an unusual form of because they are an unusual form of organization requiring specialized organization requiring specialized knowledge, legal and accounting costs are knowledge, legal and accounting costs are often very high and many choose to be taxed often very high and many choose to be taxed under less favorable corporate or under less favorable corporate or partnership tax laws.partnership tax laws.

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USAUSA Central Bank of CooperativesCentral Bank of Cooperatives 12 district banks12 district banks lend directly to eligible lend directly to eligible

cooperativescooperatives savings and creditsavings and credit training and educationtraining and education

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In the United States, there are both marketing and supply cooperatives. Agricultural marketing cooperatives, some of which are government-sponsored, promote and may actually distribute specific commodities. There are also agricultural supply cooperatives, which provide inputs into the agricultural process

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In In North America, the , the caisse populairecaisse populaire movement started by movement started by Alphonse Desjardins in in Quebec, CanadaQuebec, Canada pioneered credit pioneered credit unions. Desjardins wanted to bring unions. Desjardins wanted to bring desperately needed financial protection to desperately needed financial protection to working people. In 1900, from his home in working people. In 1900, from his home in Lévis, QuebecLévis, Quebec, he opened North , he opened North America's first credit union, marking the America's first credit union, marking the beginning of the beginning of the Mouvement Desjardins Mouvement Desjardins

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Switzerland

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Migros, is the largest supermarket chain in Switzerland and keeps the cooperative society as its form of organization. Nowadays, a large part of the Swiss population are members of the Migros cooperative – around 2 million of Switzerland's total population of 7,2 million[1] [2], thus making Migros a supermarket chain that is owned by its customers

Supermarket Chain

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• Coop is another Swiss cooperative which operates the second largest supermarket chain in Switzerland after Migros. In 2001, Coop merged with 11 cooperative federations which had been its main suppliers for over 100 years. • As of 2005, Coop operates 1437 shops and employs almost 45,000 people. According to Bio Suisse, the Swiss organic producers' association, Coop accounts for half of all the organic food sold in Switzerland

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IsraelIsrael

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• plural: kibbutzim. gathering or together) is an Israeli collective community.

• The movement combines socialism and Zionism in a form of practical Labor Zionism, founded at a time when independent farming was not practical or perhaps more correctly - not practicable. Forced by necessity into communal life, and inspired by their own ideology, the kibbutz members developed a pure communal mode of living that attracted interest from the entire world.

Kibbutz

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while the kibbutzim lasted for several generations as utopian communities, most of today's kibbutzim are scarcely different from the capitalist enterprises and regular towns to which the kibbutzim were originally supposed to be alternatives.

Today, farming has been partially abandoned in many cases, with hi-tech industries very common in their place.

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Members of a kibbutz, or kibbutzniks

Cooperative Farming in Israel Cooperative farming establishments called kibbutzim and moshavim provide much of Israel’s agricultural

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Kibbutzim attempted to rotate people into different jobs. One week a person might work in planting, the next week with livestock, the week after in the kibbutz factory, the next week in laundry. Even managers would have to work in menial jobs. Through rotation, people took part in every kind of work, but it interfered with any process of specialization

Job Rotation

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It should be noted that kibbutzim were not the It should be noted that kibbutzim were not the only communal enterprises in Israel. only communal enterprises in Israel. Palestine also saw the development of Palestine also saw the development of communal villages called Moshavim communal villages called Moshavim (singular: (singular: MoshavMoshav). In a moshav, marketing ). In a moshav, marketing and major farm purchases would be done and major farm purchases would be done collectively, but personal lives were entirely collectively, but personal lives were entirely private. Although much less famous than private. Although much less famous than kibbutzim, moshavim have always been more kibbutzim, moshavim have always been more numerous and popular than kibbutzim numerous and popular than kibbutzim

Moshavim

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Today, kibbutzim have changed Today, kibbutzim have changed dramatically. Only 38% of kibbutz dramatically. Only 38% of kibbutz employees are kibbutz members.employees are kibbutz members.

By the 1970s, kibbutzim were By the 1970s, kibbutzim were frequently hiring Palestinians. frequently hiring Palestinians. Currently, Thais have replaced Currently, Thais have replaced Palestinians as the non-Jewish physical Palestinians as the non-Jewish physical work element at kibbutzim. They are work element at kibbutzim. They are omnipresent in various service areas and omnipresent in various service areas and in factories.in factories.

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Kibbutz industrialization in the 1960s led Kibbutz industrialization in the 1960s led to an increase in the kibbutz standard of to an increase in the kibbutz standard of living, but that increase in the standard of living, but that increase in the standard of living meant an end to the self-sacrifice living meant an end to the self-sacrifice which regular Israelis had so admired. which regular Israelis had so admired.

In his 1977 campaign for prime minister, In his 1977 campaign for prime minister, Menachem Begin attacked kibbutzniks as Menachem Begin attacked kibbutzniks as “millionaires with swimming pools” and “millionaires with swimming pools” and was rewarded with the right's first ever was rewarded with the right's first ever electoral victory electoral victory

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Kibbutzim have gradually and steadily Kibbutzim have gradually and steadily become less become less collectivistcollectivist in the past in the past twenty years. Rather than the principle of twenty years. Rather than the principle of ""From each according to his ability, to From each according to his ability, to each according to his needseach according to his needs", kibbutzim ", kibbutzim have adopted "from each according to his have adopted "from each according to his preferences, to each according to his preferences, to each according to his needs."needs."

Decline of the kibbutz movement

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Since there are still over Since there are still over 250 250 kibbutzim in Israel, it may be kibbutzim in Israel, it may be premature to address the legacy of the premature to address the legacy of the kibbutz movement. However, although kibbutz movement. However, although there may be hundreds of entities in there may be hundreds of entities in Israel calling themselves kibbutzim, the Israel calling themselves kibbutzim, the collectivist impulse is gone. As the collectivist impulse is gone. As the largest secular collectivist movement largest secular collectivist movement ever, kibbutzim arguably prove that the ever, kibbutzim arguably prove that the model itself is model itself is economically economically sustainablesustainable, while the , while the ideologicalideological fervor fervor has not been so. It should be concluded has not been so. It should be concluded that the future of the kibbutz should be that the future of the kibbutz should be left to unfold left to unfold

Legacy

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ItalyItaly

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Rome, Italy The view from the Villa Medici shows the many domes and churches in the ancient city of Rome

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This gives totals of 7,100 social cooperatives, with 267,000 members, 223,000 paid employees, 31,000 volunteers and 24,000 disadvantaged people undergoing integration.

Combined turnover is around 5 billion euro. The cooperatives break into three types: 59% type A (social and health services), 33% type B (work integration) and 8% mixed. The average size is 30 workers.

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IndiaIndia

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A Market Place in India A vegetable seller checks the accounts at the Crawford Market in Mumbai (Bombay), the capital of the western Indian state of Maharashtra

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Rice is the principal Rice is the principal crop grown in India, crop grown in India, and the country and the country ranks second only ranks second only to China in terms of to China in terms of world rice world rice production. Much of production. Much of the crop is used to the crop is used to feed the domestic feed the domestic population, as rice population, as rice is the dietary staple is the dietary staple for many Indians.for many Indians.

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MilkMilk FertilizerFertilizer SugarSugar Thrift & creditThrift & credit oilseed oilseed

Success Stories in Coop Sector

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The most cherished expectation of The most cherished expectation of members from their coops is members from their coops is NOTNOT cash cash alone but timely and advantageous alone but timely and advantageous marketing of their products, timely supply marketing of their products, timely supply of credit, quality seeds, farm chemicals, of credit, quality seeds, farm chemicals, fertilizers and extension servicefertilizers and extension service

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MalaysiMalaysiaa

4,771 co-operative with a total membership of 5.5 M members. This represents about 5% of Malaysia’s total population with a total fund of RM 6.06 B with a total asset of RM 25.7 B

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• 8 types of coops: banking, housing, consumer, transportation, agriculture, small-medium industry, development & service

• The CBs give financing other activities includes pawn broking, investment & insurance

• The co-operative housing society in Malaysia are actively developing houses and prices of housing are generally lower than the market place

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• The consumer co-operative operates grocery shops, supermarket, petrol stations and other consumer goods

• Transport coops bring agriculture products like oil palm, rubber products.

• Agriculture based co-ops produce oil palm, rubber, cocoa and vegetables

• Small medium industry co-ops produce handicraft like silverware, ceramics, furniture

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JapanJapan

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Cabbage Field, Japan Rain clouds pass over a cabbage field in Nagano, on central Honshu Island. Cabbage is a major crop for domestic consumption in Japan, and features prominently in many Japanese dishes

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system is unique & high tech (high level system is unique & high tech (high level value-addition)value-addition)

strong agri coop movementstrong agri coop movement all farmers in membershipall farmers in membership strong federal in characterstrong federal in character amalgamation for viability (in progress)amalgamation for viability (in progress) service is important from cradle to graveservice is important from cradle to grave strong structural adjustmentsstrong structural adjustments strong strategic alliancestrong strategic alliance

Agricultural Cooperative Organization (JA)

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JA Chuoukal - guidanceJA Chuoukal - guidance JA Zenchu guidanceJA Zenchu guidance JA Shinren credit businessJA Shinren credit business Norinchukin Bank credit businessNorinchukin Bank credit business JA Keizairen purchasing & marketing related JA Keizairen purchasing & marketing related

businessbusiness JA Zen-noh purchasing & marketing related JA Zen-noh purchasing & marketing related

businessbusiness JA Kyosairen mutual insurance businessJA Kyosairen mutual insurance business JA Kosairen welfare businessJA Kosairen welfare business JA Zenkoren welfare businessJA Zenkoren welfare business Nihon Nogyo Shimbun newspaper related information serviceNihon Nogyo Shimbun newspaper related information service JA Shinmbunren newspaper related information JA Shinmbunren newspaper related information

serviceservice ie-no Hikari Kyoki publication, educational and cultural ie-no Hikari Kyoki publication, educational and cultural

activitiesactivities Nokyo Kanko travel business Nokyo Kanko travel business

Activities of JA Group Organization

Source: Mr. Toru NakashimaInstitute for the Development of Agicultural Cooperation in Asia (IDACA) August 2006

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Japan has a very large and well developed consumer cooperative movement with over 14 million members; retail co-ops alone had a combined turnover of 2.519 trillion Yen (21.184) billion U.S. Dollars [market exchange rates as of 11/15/2005]) in 2003/4.

(Japanese Consumers' Co-operative Union., 2003).

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KoreaKorea

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Village-level cooperativeVillage-level cooperative Acts to market collectively farm productsActs to market collectively farm products Collective agencyCollective agency Coops are multi-purposeCoops are multi-purpose The apex aside from agricultural financing The apex aside from agricultural financing

are engage in international banking and are engage in international banking and non-bank operations such as: marketing, non-bank operations such as: marketing, purchasing, insurance and researchpurchasing, insurance and research

Shirk San Kei

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TaiwanTaiwan

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Obtain creditObtain credit Buy their farm suppliesBuy their farm supplies Market their produceMarket their produce Manages irrigation systemManages irrigation system Processes and exports agricultural Processes and exports agricultural

productsproducts Pays salaries of extension workersPays salaries of extension workers

Farmers Association

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Thailand

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Thai rice fields annually produce around 20 million metric tons of rice. As the largest exporter of rice in the world after the United States, Thailand depends considerably on its rice production. Despite the rapid growth and diversification of the Thai economy, the majority of the population are still engaged in agriculture. The Thai government is attempting to institute technological advances, such as flood control, to help farmers prepare for destructive climatic conditions

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Thai Agricultural Coops

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Agricultural cooperatives are engaged in business in response to members’ need in five areas:

• credit business

• savings & deposits

• purchasing business

• marketing business

• agricultural services

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Types of Agricultural Cooperatives

1.Water Users Cooperative

2.Land Reform Coop

3.Special Cooperative (animal raising)

4.National Security Command Cooperative (police border patrol)

5.Rubber Cooperative

6. Integrated Farming (vegetables/animal raising)

7.Dairy Cooperative

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Singapore

National Coop Federation 74 coops classified as: campus coop sector, credit coop sector, NTUC co-op sector, service co-op sector combined membership of 1.6 M

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Campus Co-ops

• comprised of secondary schools, junior colleges, Institute of technical Education (ITEs), polytechnics and universities

• sales of books, stationary, running a bubble-tea café, cybercafés, thrift and loan services

• bazaar competition to put on their thinking entrepreneurial spirit

• Biz Challenge Simulation Game

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Supermarket Chain

• own central warehousing & distribution center

• ventured into new formats and services such as: Liberty Market, Cheers Convenience Store, The Passar, Bakers Corner, Homemart and Cybermart

• invested in real time integrated warehouse management system to achieve better inventory control and streamline orders from operations so as to maximize goods deployment procedures and improve staff efficiency.

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SeaCare• SeaCare has its own family of businesses that focused on job creation for displaced/unemployed seamen as well as enhancing and growing business opportunities in the maritime industry

• Expanded its business to Australia, China, Indonesia, Malaysia & Philippines

• Ventures are: ship management, maritime medical centres, HR agency for seafaring and nonseafaring personnel, commercial cleaning and maintenance services

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