History of the Cooperative Movement

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History of the Cooperative Movement

Transcript of History of the Cooperative Movement

  • 1.History of the Cooperative Movement Prepared by: Jo B. Bitonio Philippines


  • Robert Owen William King The Rochdale Pioneers Charles Fourier Charles Gide Beatrice Webb Friedrich Raiffeisen

Key Theorists 3. Robert Owen(17711858) OWEN first cooperative theorist and credited with inspiring the Rochdale Pioneers, who in 1844 began the cooperative movement at Rochdale, Lancashire 4.

  • Owen believed in putting his workers in a good environment with access to education for themselves and their children. These ideas were put into effect successfully in thecotton millsofNew Lanark ,Scotland .

Robert Owen(17711858) Fathered the cooperative movement. A Welshman who made his fortune in the cotton trade 5. 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 inOrbistonin Scotland. 6. It was here that the first co-operative store was opened. 7. 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 8.

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

Dr William King(17861865) 9.

  • He founded a monthly periodical calledThe Cooperator , the first edition of which appeared onMay 1 ,1828 . This gave a mixture of cooperative philosophy and practical advice about running a shop using cooperative principles.


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

11. He proposed sensible rules, such as having a weekly account audit, having 3 trustees, and not having meetings inpubs(to avoid the temptation of drinking profits). 12.

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

Charles Fouriershould 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 . 13.

  • A few poor weavers joined together to form theRochdale Equitable Pioneers Societyat the end of 1843. TheRochdale Pioneers , as they became known, set out theRochdale Principlesin 1844, which have been highly influential throughout the cooperative movement.

The Rochdale Pioneers 14.

  • 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.


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


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


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


  • By the mid-20th century, it comprised almost2,400associations of all types. The Cooperative Wholesale Society is the largest distributive agency in England.


  • ( 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.

Rochdale Principles 20.

        • part of cooperative earnings are utilized to expand operations
        • 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: 21.

  • 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 labour must be fairly treated and that cooperatives should work together


  • Worldwide, some800million people are members of cooperatives, and it is estimated that cooperatives employ some100million people.

World Cooperative Movement 23. UK, France, Germany, Belgium, Austria, Italy, Denmark, Finland, Norway, and Sweden. 24. Notable among the European countries in whichconsumer cooperationreceived early popular support were France, Germany, Belgium, Austria, Italy, Denmark, Finland, Norway, and Sweden. 25. Euros 11B housing health Credit union doctor Football club buying Whole foods care leisure consumers workers Euros 1.3 B Source:Mr. Bob Burlton Midcounties Co-operative, United Kingdom Aug. 2006 agriculture 26.

  • 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 27. both noted for promotingethical investment The UK Co-operative Group insurance providerCIS Co-operative Bank 28. Building cooperative BritishBuilding Societiesdeveloped 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). 29. Building cooperative Members 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 . 30.

  • This collective effort was at the origin of many of Britain'sbuilding societies , which however developed into "permanent"mutual savings and loanorganisations, a term which persisted in some of their names (such as the formerLeeds Permanent ).


  • Nowadays such self-building may be financed using a step-by-stepmortgagewhich is released in stages as the building is completed. The term may also refer to worker cooperatives in the building trade

32. Agricultural cooperative Agricultural cooperativesare widespread in rural areas. 33. 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. 34. Co-operative Wholesale Society According to cooperative economistCharles Gide ,the aim of a cooperative wholesale society is to arrange bulk purchases, and, if possible, organise production. 35. The best historical example of this were the English CWS and the Scottish CWS, which were the forerunners to the modernCo-operative Group 36. Cooperative Bank, Credit Union & Coop Savings Bank The Co-operative Bank's head office, 1 Balloon Street,Manchester .The statue in front is ofRobert Owen , a pioneer in the coopmovement Credit Unionsprovide a form of cooperative banking 37. Other important European banking cooperatives include theCrdit AgricoleinFrance,Migrosand Coop Bank in Switzerland and theRaiffeisensystem in many Central and Eastern European countries .European Banking Cooperative 38.

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

Cooperative banking networks, which were nationalized in Eastern Europe, work now as real cooperative institutions. 39.

  • A remarkable development has taken place inPoland ,where the SKOK ( Spdzielcze Kasy Oszczdnociowo-Kredytowe ) network has grown to serve over 1 million members via 13,000 branches, and is larger than the countrys largest conventional bank.
  • InScandinavia , there is a clear distinction betweenmutual savings banks(Sparbank) and truecredit unions(Andelsbank

40. Housing cooperative Ahousing cooperativeis a legal mechanism for ownership of housing where residents either ownshares(share capital co-op) reflecting their equity in t