Alice Cooperative1
Alice Cooperative1
Alice Cooperative1
(MoCU)
DEPARTMENT OF LAW
FACULTY: FBIS
QUESTION:
Explain the origins of the cooperative movement and how it spread in the british, Indian and
African countries.
What is the meaning of cooperative movement?
cooperative movement is a series of organized activities that began in the 19th century in Great
Britain and later spread to most countries of the world, whereby people organize themselves
around a common goal, usually economic. It began in Europe in the 19th century, primarily in
Britain and France. The Shore Porters Society claims to be one of the world's first cooperatives,
being established in Aberdeen in 1498 (although it has since demutualized to become a private
partnership). The industrial revolution and the increasing mechanism of the economy
transformed society and threatened the livelihoods of many workers. The concurrent labour and
social movements and the issues they attempted to address describe the climate at the time. The
first documented consumer cooperative was founded in 1769, in a barely furnished cottage in
Fenwick, East Ayrshire, when local weavers manhandled a sack of oatmeal into John Walker's
whitewashed front room and began selling the contents at a discount, forming the Fenwick
Weavers' Society. In the decades that followed, several cooperatives or cooperative societies
formed including Lennox town Friendly Victualling Society, founded in 1812.
By 1830, there were several hundred co-operatives. Some were initially successful, but most
cooperatives founded in the early 19th century had failed by 1840. However, Lockhurst Lane
Industrial Co-operative Society (founded in 1832 and now Heart of England Co-operative
Society), and Galashiels and Hawick Co-operative Societies (1839 or earlier, merged with The
Co-operative Group) still trade today. It was not until 1844 when the Rochdale Society of
Equitable Pioneers established the "Rochdale Principles" on which they ran their cooperative,
that the basis for development and growth of the modern cooperative movement was established.
Financially, cooperative banks, called credit unions in the US, were invented in Germany in the
mid-19th century, first by Franz Hermann Schulze-Delitzsch (1852, urban), then by Friedrich
Wilhelm Raiffeisen (1864, rural). While Schulze-Delitzsch is chronologically earlier, Raiffeisen
has proven more influential over time. In Britain, the friendly society, building society, and
mutual savings bank were earlier forms of similar institutions.
Robert Owen
Although Owen inspired the co-operative movement, others such as Dr. William King (1786–
1865) 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 co-operatives for themselves,
so he saw his role as one of instruction. He founded a monthly periodical called The Co-operator,
the first edition of which appeared on 1 May 1828. This gave a mixture of co-operative
philosophy and practical advice about running a shop using cooperative principles. King advised
people not to cut themselves off from society, 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 necessaries why
then should we not go to our own shop?" He proposed sensible rules, such as having a weekly
account audit, having 3 trustees, and not having meetings in pubs (to avoid the temptation of
drinking profits).
Rochdale Pioneers
The Rochdale Society of Equitable Pioneers was a group of 10 weavers and 20 others in
Rochdale, England, that was formed in 1844. As the mechanization of the Industrial Revolution
was forcing more and more skilled workers into poverty, these tradesmen decided to band
together to open their own store selling food items they could not otherwise afford. With lessons
from prior failed attempts at co-operation in mind, they designed the now famous Rochdale
Principles, and over a period of four months they struggled to pool one-pound sterling per person
for a total of 28 pounds of capital. On December 21, 1844, they opened their store with a very
meagre selection of butter, sugar, flour, oatmeal and a few candles. Within three months, they
expanded their selection to include tea and tobacco, and they were soon known for providing
high quality, unadulterated goods.
Often the more successful co-ops were established around the trades which were experiencing
the largest impact from the rapid industrialization such as mining and weaving. This was likely
due to the clearer direct benefits of membership and the solidarity of workers with a similar
plight.
In 1844 the Rochdale Pioneers founded the modern Cooperative Movement in Lancashire,
England, to provide an affordable alternative to poor-quality and adulterated food and provisions,
using any surplus to benefit the community.
The first Cooperative Credit Societies Act, 1904, marked the beginning of cooperative
movement in India. Initially, the primary objective of cooperation was to safeguard the interests
of the poor farmers from private money lenders. Mar 31, 1996
COONOOR: As the country gears to celebrate the 'National Cooperative Week' beginning from
Wednesday, only a few in the present era knew that for Sir Frederic Nicholson, known as 'Father
of the Cooperative Movement' in the country, Coonoor hills was his home where he lived for
three decades after retirement, and died.
The first co-operative movement in Asia was stated at Kanaginahal under the leadership of Sri
Siddanagouda Sanna Ramanagouda Patil (1843–1933), who is known as the 'Father of
Cooperative movement in Karnataka'. The Agricultural Credit Cooperative Society of
Kanaginahal was launched in Kanaginahal on 8.7. 1905.
The Co-operative Movement in India was born out of the distress that prevailed in the last
quarter of the 19th century. The Industrial Revolution had given a death blow to village
industries and brought people to agriculture, the only avenue of employment and livelihood. The
consequent sub-division and fragmentation of holdings had made agriculture an uneconomic
proposition. This, combined with the rigidity of land revenue collection, uncertainty of rainfall
and, therefore, of crop production, compelled the agriculturist to knock at the door of the money-
lender who advanced money cither by purchasing the crop at a throwaway price or by charging a
sky-high rate of interest.
The deteriorating condition of farmers under the heavy strain of increasing indebtedness and
frequent famines not only proved the inadequacy of legal measures but also emphasized the need
for the provision of cheap credit through an alternative agency.
How cooperative movement spread in African Countries.
The promotion of these organizations to champion development has seen the history of
cooperative development in independent Africa generally phased into two eras: the first era
running from the immediate post-colonial period in the 1960’s to the mid-1990s and the second
era occurring during the global economic reforms from the mid 1990’s to the present, which has
been characterized liberalization of the economy. Whereas the first era was characterized by
stringent government control over cooperative development through enactment of policies,
legislation and programs that promoted cooperatives as vehicles for accelerating national
economic development, the second era has been the sphere of freeing cooperatives from the state
to enjoy autonomy and operate like business ventures responding to market demands. A review
of the historical development in Africa has shown some of the key challenges to cooperative
development have been excessive state control over cooperative development
REFERENCE:-
Books:
4
REFERENCES
of Sub-Saharan Africa, World Bank Discussion Papers No. 121, The World Bank,
Washington D.C.
Pollet & F. Wanyama (eds.), Cooperating out of Poverty: The Renaissance of the
Develtere, P., Pollet, I. & Wanyama, F., eds. (2008), Cooperating out of Poverty: The
of Sub-Saharan Africa, World Bank Discussion Papers No. 121, The World Bank,
Washington D.C.
Uganda”, International Food Policy Research Institute Policy Note No. 10, December.
Muenkner, H. H. and Shah A. (1993), Creating a Favourable Climate and Conditions for
Oromia Coffee Farmers’ Cooperative Union (2011), “Status of Oromia Coffee Farmers’
http://www.un.org/esa/socdev/social/meetings/egm11/documents/MeskelaStatus%20of%20OCFCU
%202010.pdf
Wanyama, F. O., P. Develtere and I. Pollet (2009), “Reinventing the Wheel? African
Websites:
https://www.ica.coop
https://www.theguardian.com
www.economicsdiscussion.net