Jo B. BitonioPresenterCooperative Trainers Training, Lingayen, PangasinanAug. 29-31,2012)

Robert OwenWilliam KingThe Rochdale PioneersCharles FourierCharles GideBeatrice WebbFriedrich Raiffeisen

Key Theorists

Robert Owen(1771–1858)

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

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

Although Owen inspired the cooperative movement, others – such as– Dr William King took his ideas and made them more workable and practical. King believed in starting small, and realized that the working classes would need to set up cooperatives for themselves, so he saw his role as one of instruction.

Dr. William King (1786–1865)

Charles FourierCharles Fourier should also be mentioned as an important influence. Beliefs-Fourier believed that poverty was the reason for disorder socially and economically. The main goal of Fourier was to create a society in which the people worked together, both rich and poor, to create a social economy that was profitable and also saved time and labor for the citizens. By uniting all people regardless of economic status, Fourier hoped to eliminate the poverty that was stunting the success of social economy.. Just like pleasure needs variety, so did work. Fourier believes that the people should constantly switch roles and have variety in their work which produces the best result.

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

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

The Rochdale Pioneers

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

Rochdale Principles in 1844, which have been highly influential throughout the cooperative movement.

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

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

(3) payment of limited interest on invested capital; (4) distribution of net profits, usually called savings or

earnings, to cooperative members in proportion to the amount of their patronage.

a. part of cooperative earnings are utilized to expand operations

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

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

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

e. Other supplemental principles hold that labor must be fairly treated and that cooperatives should work together

Supplemental Principles

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

Cooperative Wholesale Society

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

Friedrich Wilhelm Raiffeisen

Raiffeisen conceived of the idea of cooperative self-help during his tenure as the young mayor of Flammersfeld. He was inspired by observing the suffering of the farmers who were often in the grip of loansharks. He founded the first cooperative lending bank, in effect the first rural credit union in 1864.

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

15 4

6

1 1Europe 15

USA 4Asia 6Australia 1

New Zealand 1Israel 1

28

1

The largest cooperatives came from 28 countries

Comparable to the GDP

of the world’s 9th

largest economy

Source: ICA:2010

The International Cooperative Alliance (ICA), the body that represents and serves cooperatives worldwide, reports that there are over one billion people around the globe who are members of cooperatives. Large segments of the world’s population are members of cooperatives

World Cooperative Movement

it is estimated that cooperatives employ some 100 million people.

Source: www.slideshare.net/jobitonio

. Asia has 45.3 million cooperative members. In Indonesia, 27.5% of families are members of cooperatives. In Japan, 33% of families are members of cooperatives. In Singapore, 50% of the population are members of cooperatives. People have opted for the cooperative way because of the benefits and advantages that they derive from their membership in the coop.

Source: (Ping-Ay: 2011)

Source: www.slideshare.net/jobitonio

To the GDP of the world’s ninth largest economy

Source: ICA:2010

Source: ICA:2010

Source: ICA:2010

Source: ICA:2010

2. Banking/Credit Union

Source: ICA:2010

Source: ICA

4. Insurance

Source:ICA:2010

Insurance

5. Workers/Industrial

Sea France Workers Cooperative

Workers, Industrial, Artisanal andService Producers

Source ICA:2010

6. Health

The International Health Co-operative Organization (IHCO) unitesco-operatives within the ICA membership that:provide health care to their members;provide self-employment for health professionals (doctors, nurses, etc.);integrate consumers’ and producers’ co-operatives

HealthICA (2010) cited some examples as follows:

US health reform, which includes the CO-OP programme, focused on promoting co-operative health service providers; collaboration between health co-operatives and the Japanese government to improve health care and to develop prevention measures;the concession model implemented in Spain that transfers managing some public hospitals and health centres to health co-operatives.

7. Fisheries ICFO report

The fisheries sector, which includes aquaculture, is crucial to food security, poverty alleviation and general well-being. In 2008, the world consumed 115 million tonnes of fish, and demand is expected to rise. Fish and fishery products are a vital and affordable source of food and high-quality protein (ICA:2010).

Fisheries ICFO report

In 2008, fish as food reached an all-time high of nearly 17 kg per person, supplying more than three billion people with at least 15 percent of their average animal protein intake. In recent years, fishermen have suffered from various difficulties, such as lack of education, dangerous fishing environments and diminishing catch sizes caused by overfishing and climate change (ICA:2010).

8. HousingThe recent global financial crisis had a powerful impact on housing markets around the world. Construction, which depends on capital investment, suffered as the capital markets dried up, property values fell and governments cut back on the financial assistance they provided for affordable housing.While many co-operative housing developers/providers reduced their development programs from lack of capital finance or to reduce exposure to adverse market conditions, established housing co-operatives proved to be resilient to the crisis, according to Mr David Rodgers, President of ICA Housing.

Source: ICA :2010

India

• Milk

• Fertilizer

• Sugar

• Thrift & credit

• oilseed

Success Stories in India

Amul Dairy co-ops in India represent a model to the development program termed “white revolution” since 1965 that accomplished economy of scale by collecting milk from hundreds of thousands small farmers breeding few cattle and thus contributing to the enhanced living standardSource: Akira Kurimoto

The most cherished expectation of members from their coops is NOT cash alone but timely and advantageous marketing of their products, timely supply of credit, quality seeds, farm chemicals, fertilizers and extension service

Malaysia

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

• 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

• 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

Japan

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

• strong agri coop movement• all farmers in membership• strong federal in character• amalgamation for viability (in progress)• service is important from cradle to grave• strong structural adjustments• strong strategic alliance

Agricultural Cooperative Organization (JA)

• JA Chuoukal - guidance• JA Zenchu guidance• JA Shinren credit business• Norinchukin Bank credit business• JA Keizairen purchasing & marketing related business• JA Zen-noh purchasing & marketing related business• JA Kyosairen mutual insurance business• JA Kosairen welfare business• JA Zenkoren welfare business• Nihon Nogyo Shimbun newspaper related information service• JA Shinmbunren newspaper related information service• ie-no Hikari Kyoki publication, educational and cultural activities• Nokyo Kanko travel business

Activities of JA Group Organization

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

Korea

• Village-level cooperative

• Acts to market collectively farm products

• Collective agency

• Coops are multi-purpose

• The apex aside from agricultural financing are engage in international banking and non-bank operations such as: marketing, purchasing, insurance and research

Shirk San Kei

Western Coop Residence

Fig. 1. Coin Street Community Builders’ Oxo Tower building containing shops, restaurants and a housing co-operative

Consumers Coop in Japan & Korea

• The coops introduced computer read order sheets and settlement through members bank accounts to reduce chores. It is successfully evolving to delivering to households to cope with increasing individualism (Kurimoto)

Taiwan

• Obtain credit• Buy their farm supplies• Market their produce• Manages irrigation system• Processes and exports agricultural

products• Pays salaries of extension workers

Farmers Association

Thailand

Thai Agricultural Coops

Source: www.slideshare.net/jobitonio

Agricultural cooperatives

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

• credit business

• savings & deposits

• purchasing business

• marketing business

• agricultural services

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

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

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 spirit

• Biz Challenge Simulation Game

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.

Fair Price coop has been successful in developing super markets and secured a dominant position in food retailing

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.

CC/CBs are proliferating in Korea, Philippines, Malaysia, Thailand, India, Sri Lanka, Australia etc. (Kurimoto)

University Coops

University Coops in Asia present a unique model of development. They are prevalent in the Japan, Korea, Philippines, Vietnam, Thailand, Malaysia, Singapore, India, etc

The coops provide both professors and students meals, appliances, books, credit, insurance,

Health Coops

Health coops are organized by consumers ( Japan, Korea, Philippines and Singapore) and or professional ( Malaysia, India, Sri Lanka, and Nepal).

They are providing a vital role in health services at hospitals and clinics and related services in the different socio economic and institutional settings

Brazil

Source: Kurimoto

Women Coops

Women coops organized exclusively by women to empower women leaders in Korea, Malaysia, India, Iran, etc.

Reasons for organizing women coops are varied: to avoid male domination in mixed membership, religious norm of gender segregation, feminist movement,

India

Nepal

Source: Kurimoto

Reference

Stefano Zamagni & Vera Zamagni Cooperative Enterprise: facing the Challenge of Globalization. Published by Edward Elgar Publishing Limited. The Lypiatts, UK

Co-op News. The Global New Hub for Cooperatives Aug 27, 2012

ICA Report Global 300: 2010

• http://www.un.org/esa/socdev/social/meetings/egm11/documents/Kurimoto%20-%20Current%20State%20of%20Cooperative%20Research%20in%20Asia.pdf

Reference

http://www.un.org/esa/socdev/social/meetings/egm11/documents/Kurimoto%20-%20Current%20State%20of%20Cooperative%20Research%20in%20Asia.pdf

Akira Kurimoto Current State of Cooperative Research in Asia and Future August 29, 2012

Jo Bitonio History of the Cooperative Movementwww.slideshare.net/jobitonio