A cooperative (also known as co-operative, co-op, or coop) is “an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise. Cooperatives are democratically controlled by their members, each having one vote in electing the board of directors. It is an association having Principal of Voluntary and open membership, Democratic member control, One vote one member, Economic participation by members, Autonomy and independence, Concern for community etc.
The first documented consumer cooperative in the name of Fenwick Weavers’ Society was founded in 1769, in a small cottage in Fenwick-East Ayrshire of United Kingdom. There are a plethora of records of co-operatives started out as small grassroots organisations in Western Europe, North America and Japan in the middle of the nineteenth century. Most scholars recognize the business of the Rochdale pioneers of England as the first coop where a group of 28 men (weavers and skilled workers in other trades) formed a cooperative society in 1844 and this Rochdale Pioneers generally regarded as the prototype of the modern co-operative society and the founders of the Co-operative Movement. An independently formulated co-operative model developed in Germany by Friedrich Wilhelm Raiffeisen and Franz Hermann Schultz-Delitsch. Raiffeisen and Schultz-Delitsch originally formed credit unions in 1862. Since then the model has grown into other sectors and inspired the growth of financial co-operatives across the world.
The global rise of cooperatives is partially due to the work of the International Co-operative Alliance (ICA). The International co-operative Alliance was the first international association formed (1895) by E. V. Neale of Rochdale and Edward Owen Greening, a supporter of worker cooperation. It was founded in London, England on 19 August 1895 during the 1st Cooperative Congress having delegates of cooperatives from Argentina, Australia, Belgium, England, Denmark, France, Germany, Holland, India, Italy, Switzerland, Serbia, and the US. A second organization “the International Raiffeisen Union” formed later in Germany. The purpose of ICA formation was to end the conflict between capital and labour and to organize industrial peace, based on co-partnership of the worker. Neale and Greening were of the opinion that cooperative society had the power to combat the emergent market trends by empowering workers to own a share of the business and to govern themselves. They also realized that a worldwide organization that could support the mission of employee-owned business would help promote solidarity and their continued existence. Over the last century, the ICA has flourished, particularly in Europe, Canada, and in some parts of Africa. The ICA is recognized as a leader for cooperatives all over the world in terms of promoting the values of cooperative organization.
United Kingdom
The United Kingdom is home to a widespread and diverse co-operative movement, with over 7,000 registered co-operatives owned by 17 million individual members and which contribute £34bn a year to the British economy. The British co-operative movement is most commonly associated with The Co-operative brand (best known for its supermarket and Funeralcare brands) which has been adopted by several large consumers’ co-operative societies; however, there are thousands of registered co-operative businesses operating in the UK like agricultural co-operatives , co-operative housing providers , health and social care cooperatives , cooperative schools , retail co-operatives, co-operatively run community energy projects, football supporters’ trusts, credit unions, and worker-owned businesses. Co-operatives UK is the central membership organisation for co-operative enterprises throughout the UK. This is a co-operative of co-operatives: a co-operative federation. Most kinds of co-operatives are eligible to join Co-operatives UK. John Lewis Partnership, Central England Co-operative, Co-Pilot wind Project, Loaf Bakery and Cookery school, Pink Lane Jazz Co-op, Co-op News, Telford and Wrekin Council are some famous Cooperative of United Kingdom
In the UK, cooperatives find it advantageous to form political groupings to represent their interests. The British cooperative movement formed the Co-operative Party in the early 20th century to represent members of consumers’ cooperatives in Parliament, which was the first of its kind. The Co-operative Party now has a permanent electoral pact with the Labour Party meaning someone cannot be a member if they support a party other than Labour.
United State of America
The co-operative model has a long history in the U.S. The mutual fire insurance company (1752), dairy co-op ( 1810) , Boston’s Workingman’s Protective Union(1845) were the first known Co-op of The United States. The co-operative movement grew during the 1890s in response to the expansion of large corporate monopolies.
The country’s first credit unions were in Massachusetts while The Cooperative League of the United States of America, known today as the National Cooperative Business Association, was organized in 1916 to promote cooperatives. In the late 1960s the Co-op movement entered a new phase with Food cooperatives and Food Conspiracies as an alternative to corporate agriculture that linked organic farmers to urban consumers. In the United States, there are around 65,000 cooperative establishments, and one out of every three people is a member of a cooperative. The number of co-ops in the U.S. varies by sector and type. In the financial services sector, there were more than 5,500 federally insured credit unions in the U.S. at the start of 2018. Grocery store co-op is a popular type of cooperative in America and it impacts their local economy considerably , Locally-produced products make up about 21% of sales at grocery co-ops, compared to less than 2% of sales at supermarkets and grocery stores. Grocery co-ops are also more likely to give back to their community, particularly in the form of food donations. In 2016, co-ops donated more than 1.5 million pounds of food. CHS Inc, Dairy Farmers of America, Land O’Lakes Inc. Wakefern Food , Associated Wholesale Grocers Inc. GROWMARK Inc , Corp/ShopRite, HealthPartners Inc, A g Processing Inc, A C E Hardware Corp, California Dairies Inc are some important co-operatives of USA
Canada
The cooperative movement started in the middle of the 19th century in Canada
Industrialization led to the emergence of large centralized factory systems in urban centers. These systems disrupted the existing crafts system and many Canadian craftsmen lost their power in the market very quickly. As a consequence many craftsmen became poor or lost their jobs. This made craftsmen to start to unite in small cooperative enterprises to provide themselves power to control their business and products they couldn’t afford otherwise. That’s how the cooperative movement began in Canada. Agricultural movements were the first successful cooperative movements in Canada. The dairy industry had a lot of opportunities because many farmers had excessive production of milk. Between 1860 and 1900 not without help of Canadian Pacific Railway there were developed over 1200 cooperative creameries and cheese factories in Ontario, Québec and Atlantic Canada.
CCA – Canadian Co-operative Association, DID – Développement international Desjardins ,SOCODEVI – société de coopération pour le développement international, Arctic Co-operatives Limited (retail co-operative in the Nunavut, Northwest Territories, Northern Manitoba. Blocks Recording Club (record label),Co-operatives and Mutuals Canada (CMC), Canadian Press (newswire), Canadian University Press (newswire for student newspapers) are some major cooperatives of Canada.
Germany
The German cooperative movement originated in the 1840s with early credit cooperatives, a model that became increasingly popular in the late 19th and early 20th centuries. The two most influential figures of the movement were Franz Hermann Schulze-Delitzsch (1808-1883) and Friedrich Wilhelm Raiffeisen (1818-1888), both played crucial roles in its early foundations. In 1847. Raffiesen created an association to aid the indebted rural poor in Weyerbusch (Westerwald), combatting usurious money lending that had taken hold under industrialization by extending small loans to farmers on favorable repayment conditions. User cooperatives, producer cooperatives, worker cooperatives and multi-stakeholder cooperatives are all present in Germany.Its member organisations are there in several sectors like Banking, Real estate, Agriculture, Wholesale and Retail Trade, Accommodation and food service activities, and Utilities.
Ireland
In 1889, Ireland’s first co-operatives were established in Doneraile, Co. Cork and the first co-operative creamery was opened in Dromcollogher, Co. Limerick.
The Irish Agricultural Organisation Society Ltd later known as Irish Co-operative Organisation Society Limited – ICOS) was formed in 1894 by Sir Horace Plunkett and his friends. Farmers are the main beneficiaries of the cooperative movement in Ireland. Idea behind the movement was that the farmers should directly own their business and means of production. The co-operative structure placed ownership of these businesses directly in the hands of farmers who joined as members with each individual given an equal say in the direction of that business regardless of wealth and status.
Italy:
Luigi Luzzati and second was Dr. Leone Wollemburg Pioneer in cooperative movement, during 1880, concentrated on improving the conditions of the poor people. Associazione Generale delle Cooperative Italiane (AGCI), Confederazione delle Cooperative Italiane (CONFCOOPERATIVE), Lega Nazionale delle Cooperative e Mutue (LEGACOOP), Alleanza delle Cooperative Italiane are some popular cooperative of Italy.
Sweden
During 1870, the cooperative movement started in Sweden in the industrial sector. OKQ8 The Oil Company – OK, now joint with Q8 , Federation of Swedish Farmers (LRF), FOLKSAM, Union of Housing Co-operatives, Kooperativa Förbundet (KF) ,Co-operative Housing Union) are popular cooperatives of Sweden.
Denmark:
Credit associations were started in 1850 to solve problems of the credit through a special law.
Agricultural Council of Denmark , Co-op Union of Denmark (DKF) , FDB Consumer Co-operative Denmark are some popular cooperative of Denmark
Russia
The first attempts in Russia were made during 1864 through organizing co-operative stores and credit societies. Central Union of Consumer Societies (CENTROSOYUZ) ,International Council of Consumer Co-operatives (CONSUMINTER), Koopvneshtorg Ltd. (COOP TRADE) Moscow Regional Union of Consumer Societies are some major cooperative of Russia
Japan:
In 1879, the cooperative movement was started in the form of consumer’s cooperatives with the object of cheep the soaring prices. Central Union of Agricultural Cooperatives (JA-ZENCHU/CUAC), IE-NO-HIKARI Association ,Japan Agricultural News (Nihon Nogyo Shimbun) ,Japanese Consumers’ Co-operative Union (JCCU), Japanese Workers Co-operative Union (JIGYODAN) ,National Federation of Agriculture Co-operative Associations (ZEN-NOH) , National Federation of Fisheries Co-operative Associations (ZENGYOREN), National Federation of Forest Owners Co-operative Associations (ZENMORI-REN) are some major cooperative of Japan.
China
Famines, floods, mutual quarrels and Japanese war are the major causes of starting cooperative movement in China. In 1912, the founder of the Chinese Republic, Dr. Sun Yet Sen, pioneered the cooperative movement. All China Federation Of Supply & Marketing Co-operatives (ACFSMC) is famous cooperative of China
India
In India cooperation has its origin in the last quarter of 19th Century in attempts to provide relief to the farmers from the clutches of money lenders. In 1904 British govt formed a co-operative rule on the basis of a report given by Fredric Nicholson a British officer of Madras region . Kaṇaginahāḷa of Gadaga district of Karnataka was the first co-operative society. It was started by Siddanagauḍa Saṇṇa Rāmanagauḍa Pāṭīla.
The cooperative movement was introduced in India as a State policy and owes its inauguration to the enactment of the Cooperative Societies Act, 1904.In the pre-independence era the movement has passed through various stages of development and has seen ups and downs. The dawn of Independence in 1947 and the advent of planned economic development ushered in a new era for cooperatives. Cooperation came to be considered as an instrument of planned economic development. The National level Ministry of Co-operation was established to develop the co-operative societies in India to empower the small scale producers and entrepreneurs. Several states also have own state level Ministry of Co-operation and/or statutory boards to develop co-operatives in their respective states
Aavin , Amul , Kribhko, Indian Coffee House , Karnataka Milk Federation, Horticultural Producers’ Cooperative Marketing and Processing Society (HOPCOMS), Southern Green Farming And Marketing Multi State Cooperative Society Limited (Farmfed), Indian Farmers Fertilizer Cooperative (IFFCO) are some major cooperative in India
At present the Indian Cooperative system is one of the biggest in the whole world. It is one of the strongest pillars on which agriculture and allied sectors are flourishing. In India there are 0.85 million cooperative societies of all kinds with membership of 290 million covering almost 100% of villages and 30% national population in membership. About 17 national cooperative societies, 390 state level federations, 2705 district federations and 97961 Primary Agricultural Societies (PACS) lead and guide the cooperative movement of the country.
Conclusion
As member-owned, member-run and member-serving businesses, cooperatives empower people to collectively realise their economic aspirations, while strengthening their social and human capital and developing their communities. Cooperatives are not a marginal phenomenon ,At least 12% of people on earth is a cooperator of any of the 3 million cooperatives on earth. Cooperatives contribute to the sustainable economic growth and stable, quality employment, providing jobs or work opportunities to 280 million people across the globe.
Co-operative societies are a worldwide phenomenon with various definitions and diverse structures. The cooperative movement was started in England during the 19th Century mainly to protect the interest of workers who spread throughout the world. It spread from there to all parts of the world. But, the movement’s objectives differ from one country to the other, depending upon the circumstances.
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