Co-operative economics

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Co-operative economics is a field of economics, socialist economics, Co-operative studies, and political economy, which is concerned with co-operatives. Notable theoreticians who have contributed to the field include Charles Gide,^[1] Robert Owen,^[2] Beatrice and Sydney Webb,^[3] J.T.W. Mitchell, Paul Lambart,^[4] Race Mathews,^[5] David Griffiths,^[6] and G.D.H. Cole.^[7] Historical co-operative movements, such as the Rochdale Pioneers, have also contributed to the field.

Co-operative federalism versus co-operative individualism

A major historical debate in co-operative economics has been between co-operative federalism and co-operative individualism. In an Owenite village of co-operation or a commune, the residents would be both the producers and consumers of its products. However, for a Co-operative, the producers and consumers of its products become two different groups of people, and thus, there are two different sets of people who could be defined as its 'users'. As a result, we can define two different modes of co-operative organisation: consumers' cooperative, in which the consumers of a co-operative's goods and services are defined as its users (including food co-operatives, credit unions, etc.), and producer co-operatives, in which the producers of a co-operatives goods and services are defined as its users (which includes worker co-operative, agricultural producer co-operatives, etc.).

This in turn led to a debate between those who support Consumers' Co-operatives (known as the Co-operative Federalists) and those who favor Producers Co-operatives (pejoratively labelled ‘Individualist' Co-operativists by the Federalists^[8] ).^[9]

Co-operative Federalism

Co-operative Federalism is the school of thought favouring consumer co-operative societies. Historically, its proponents have included JTW Mitchell and Charles Gide, as well as Paul Lambart and Beatrice Webb. The co-operative federalists argue that consumers should form co-operative wholesale societies (Co-operative Federations in which all members are co-operators, the best historical example of which being the English CWS), and that these co-operative wholesale societies should undertake purchasing farms or factories. They argue that profits (or surpluses) from these co-operative wholesale societies should be paid as dividends to the member co-operators, rather than to their workers.^[10]

Co-operative Individualism

Co-operative Individualism is the school of thought favouring workers' co-operative societies. The most notable proponents of this latter being, in Britain, the Christian Socialists, and later writers like Joseph Reeves, putting this forth as a path to State Socialism.^[11] Where the Co-operative Federalists argue for federations in which consumer co-operators federate, and receive the monetary dividends, rather, in co-operative wholesale societies the profits (or surpluses) would be paid as dividends to their workers.^[12] The Mondragón Co-operatives are an economic model commonly cited by Co-operative Individualists, and a lot of the Co-operative Individualist literature deals with these societies.

Please note that these two schools of thought are not necessarily in binary opposition a priori, and that hybrids between the two positions are possible.^[13]

Co-operative Commonwealth

In some Co-operative economics literature, the aim is the achievement of a Co-operative Commonwealth; a society based on cooperative and socialist principles. Co-operative economists - Federalist, Individualist, and otherwise - have presented the extension of their economic model to its natural limits as a goal.

References

Further reading

• Consumers' Co-operative Societies, by Charles Gide, 1922
• Co-operation 1921-1947, published monthly by The Co-operative League of America
• The History of Co-operation, by George Jacob Holyoake, 1908
• Cooperative Peace, by James Peter Warbasse, 1950
• Problems Of Cooperation, by James Peter Warbasse, 1941
• Why Co-ops? What Are They? How Do They Work? A pamphlet from the G.I. Roundtable series by Joseph G. Knapp, 1944
• Law of Cooperatives, by Legal Firm Stoel Rives, Seattle