What to Know about Cooperative Economy?
In the original meaning, the term ekonomos was actually the activity that a household engaged in for the purpose of meeting the basic needs of the members. It wasn’t really connected to the concept of financial profit or financial investment. This basically echoes cooperative economy’s vision that was established by Rochdale Pioneer Society that’s widely referred to as the very first modern co-op in the world.
It’s the sentiment expressed in International Statement of Cooperative Identity that’s based on the operating principles of the Rochdale co-op and ratified repeatedly by lots of delegates representing co-ops across the globe. Cooperative is generally an autonomous association of the persons united voluntarily to meet their common social, economic, and cultural requirements and aspirations through jointly owned as well as democratically controlled enterprise.
Cooperative economy is the economic system wherein those who employ the specific operating principles and embrace explicit values could meet their basic requirements in environmentally, socially, and personally responsible ways. This bottom line accounting became popular and referred to as cooperative difference.
There are no accredited US colleges or universities providing business courses based on cooperative economy, yet there’s a worldwide Master’s program made for and by co-op as well as credit union managers that’s based on exploring how a democratically run, locally based cooperative economy varies from economy driven by maximizing profits frequently remote investor.
Cooperative Economy – What It Looks Like?
As of now, communism and capitalism are the dominant economic organizational systems. In state enterprise and private enterprise resources are controlled by population’s minority. The cooperatives provide another alternative in which enterprise is owned by workers. Oftentimes, the economic models reflect the society’s values. Usually, capitalist economies promote improvement wherein the communist societies emphasize dedication to a country. What makes cooperative economy amazing is that it recognizes the right to personal gain in a structure, which supports every member.
Majority of economies are basically a combination of private and public ownership with small sector of collective or non-profit ownership. In the cooperative economy, most trades, industries, and commerce can be managed through the cooperative organizations. Only the enterprise that’s too complex and big would remain in public sector. The workers in public enterprises could elect their own representative to the board of directors so it’d fit with the equal representation of the cooperative model. At present, public sector enterprises are only for the for-profit industries, yet in the cooperative economy, they’d supply services and materials to some producers or cooperatives at reduced price.
Cooperative enterprises would be the biggest sector of the cooperative economy. It’d be divided into business, households, and community-based organizations. The cooperatives business can produce all kinds of services and goods from luxury to essential including legal services, agriculture, and healthcare.
All of such businesses would run as for-profit enterprises, yet profits will be divided among the members instead of executives. The groups of cooperative community reflect the society’s cultural values and fulfill important works not given by government or businesses.
- Globalie Blog Team