historical perspective of the cooperative movement

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A Lecture Presentation CDA Trainers' Training for Cooperatives Lingayen,Pangasinan Aug 29-31, 2012

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

2. Key TheoristsRobert OwenWilliam KingThe Rochdale PioneersCharles FourierCharles GideBeatrice WebbFriedrich Raiffeisen 3. Robert Owen(17711858)OWEN firstcooperative theoristand credited withinspiring theRochdale Pioneers,who in 1844 beganthe cooperativemovement atRochdale, Lancashire 4. It was here thatthe first co-operative storewas opened. 5. Dr. William King (17861865) Although Owen inspired thecooperative movement, others such as Dr William King took hisideas and made them moreworkable and practical.King believed in starting small, andrealized that the working classeswould need to set upcooperatives for themselves, sohe saw his role as one ofinstruction. 6. Charles FourierCharles Fourier should alsobe mentioned as animportant influence.Beliefs-Fourier believed that poverty was thereason for disorder socially and economically.The main goal of Fourier was to create asociety in which the people worked together,both rich and poor, to create a socialeconomy that was profitable and also savedtime and labor for the citizens. By uniting allpeople regardless of economic status,Fourier hoped to eliminate the poverty thatwas stunting the success of social economy..Just like pleasure needs variety, so did work.Fourier believes that the people shouldconstantly switch roles and have variety intheir work which produces the best result. 7. Beatrice Webb was the author of TheCo-operative Movementin Great Britain (1891). 8. The Rochdale PioneersIn 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. 9. The successfulexample ofcooperative businessprovided by theRochdale Society,which also establishedbetween 1850 and1855 a flour mill, ashoe factory, and atextile plant, wasquickly emulatedthroughout thecountry. 10. Rochdale Principles in 1844, which havebeen highly influential throughout thecooperative movement.(1) democratic control, with each member entitled toonly one vote, regardless of the number of his orher 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 orearnings, to cooperative members in proportion tothe amount of their patronage. 11. Supplemental PrinciplesThe Rochdale Society developed a number ofsupplemental principles, which are generally observedin contemporary consumer cooperatives. According tothese: a. part of cooperative earnings are utilized toexpand operations b. non-members may become members byletting their share of net profits be appliedtowards their initial share stock; 12. Supplemental Principlesc. 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 13. UK, France, Germany, Belgium, Austria, Italy, Denmark, Finland, Norway, and Sweden. 14. According tocooperative economist Charles Gide, the aimof a cooperativewholesale society is toarrange bulkpurchases, and, ifpossible, organizeproduction.Cooperative Wholesale Society 15. 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. 16. Euros 1.3 B consumers Wholeworkersleisurecare buying foodsEuros 11B agricultureCredit union housing healthFootball clubSource: doctorMr. Bob BurltonMidcounties Co-operative, United KingdomAug. 2006 17. The largest cooperatives came from 28countries 1546Europe1 151USA4Asia 61Australia1New Zealand1Israel 128 18. Comparable to the GDPof theworlds 9th largesteconomySource: ICA:2010 19. The InternationalCooperative Alliance(ICA), the body thatrepresents and servescooperativesworldwide, reportsthat there are overone billion peoplearound the globe whoare members ofcooperatives. Largesegments of theworlds population aremembers ofcooperatives 20. World Cooperative Movement it is estimated that cooperativesemploy some 100 million people.Source: www.slideshare.net/jobitonio 21. . Asia has 45.3 millioncooperative members. InIndonesia, 27.5% of familiesare members of cooperatives.In Japan, 33% of families aremembers of cooperatives. InSingapore, 50% of thepopulation are members ofcooperatives. People haveopted for the cooperative waybecause of the benefits andadvantages that they derivefrom their membership in thecoop.Source: (Ping-Ay: 2011) 22. Source: www.slideshare.net/jobitonio 23. To the GDP of the worldsninth largest economySource: ICA:2010 24. Source: ICA:2010 25. Source: ICA:2010 26. Source: ICA:2010 27. 2. Banking/Credit Union 28. Source: ICA:2010 29. Source: ICA 30. 4. Insurance 31. Source:ICA:2010 32. Insurance 33. 5. Workers/IndustrialSea France WorkersCooperative 34. Workers, Industrial, Artisanal and Service ProducersSource ICA:2010 35. 6. HealthThe International Health Co-operative Organization(IHCO) unitesco-operatives within the ICAmembership that:provide health care totheir members;provide self-employmentfor health professionals(doctors, nurses, etc.);integrate consumers andproducers co-operatives 36. HealthICA (2010) cited some examples asfollows:US health reform, which includes theCO-OP programme, focused on promotingco-operative health service providers;collaboration between health co-operatives and the Japanesegovernment to improve health care andto develop prevention measures;the concession model implemented inSpain that transfers managing some publichospitals and health centres to health co-operatives. 37. 7. Fisheries ICFO reportThe fisheries sector, which includes aquaculture, is crucial tofood security, poverty alleviation and general well-being. In2008, the world consumed 115 million tonnes of fish, anddemand is expected to rise. Fish and fishery products are a vitaland affordable source of food and high-quality protein(ICA:2010). 38. Fisheries ICFO reportIn 2008, fish as food reached an all-time high of nearly 17 kg perperson, supplying more than threebillion people with at least 15percent of their average animalprotein intake. In recent years,fishermen have suffered fromvarious difficulties, such as lack ofeducation, dangerous fishingenvironments and diminishingcatch sizes caused by overfishingand climate change (ICA:2010). 39. 8. Housing The 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. 40. Source: ICA :2010 41. India 42. Success Stories in India Milk Fertilizer Sugar Thrift & credit oilseed 43. 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 44. The most cherishedexpectation of membersfrom their coops is NOTcash alone but timely andadvantageous marketingof their products, timelysupply of credit, qualityseeds, farm chemicals,fertilizers and extensionservice 45. Malaysia4,771 co-operativewith a totalmembership of 5.5 Mmembers. Thisrepresents about 5%of Malaysias totalpopulation with atotal fund of RM 6.06B with a total assetof RM 25.7 B 46. 8 types of coops: banking, housing,consumer, transportation, agriculture, small-medium industry, development & service The CBs give financing other activitiesincludes pawn broking, investment & insurance The co-operative housing society in Malaysiaare actively developing houses and prices ofhousing are generally lower than the marketplace 47. The consumer co-operative operates groceryshops, supermarket, petrol stations and otherconsumer goods Transport coops bring agriculture productslike oil palm, rubber products. Agriculture based co-ops produce oil palm,rubber, cocoa and vegetables Small medium industry co-ops producehandicraft like silverware, ceramics, furniture 48. Japan 49. Agricultural Cooperative Organization (JA) system is unique & high tech (high levelvalue-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 50. Activities of JA Group Organization JA Chuoukal -guidance JA Zenchuguidance JA Shinren credit business Norinchukin Bank credit business JA Keizairen purchasing & marketing related business JA Zen-noh purchasing & marketing related business JA Kyosairenmutual insurance business JA Kosairen welfare business JA Zenkorenwelfare business Nihon Nogyo Shimbun newspaper related information service JA Shinmbunrennewspaper related information service ie-no Hikari Kyoki publication, educational and cultural activities Nokyo Kank

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