Cooperatives Economy and Post-Growth
What if I tell you that the concept of a cooperatives economy is aligned with the post-growth agenda? Questions came on particular centrality and, most importantly, where the alignment lies and how it works.
Introduction
Cooperatives have long been introduced as a major self-help economic institution for the least advantaged communities, lower middle class, working class, precariat, and the majority of populations in developing countries. It is a source of antidote for the poor with weak economic power, and it is imperative to form an economic union has created an enormous power for the poor to strive and fulfill their basic life needs. It creates a bridge for them to escape the poverty trap, including unemployment and income inequalities in an unstructured class construction in a post-colonized and developing economy. It is an autonomous association of people who voluntarily come together to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.
Cooperatives are based on voluntary and open membership principles, democratic member control, member economic participation, autonomy and independence, education, training and information, cooperation among cooperatives, and concern for the community. However, instead of replicating and amplifying the spirit of cooperativeness in a cooperatives economy, today’s economic system driven by capitalism is more like creating a cutthroat-rivalry society, a homo homini lupus world, with endless growth imperatives leading humanity towards a planetary-scale extinction and earthly-scale collapses of species.
Infinite growth in a finite earth is an irrational metric of development. Shifting from the GDP metrics to a more equitable one is a prerequisite for human well-being, social welfare, and ecological justice. The question then came on what the new metric will be. Various works that are vital on critics of GDP have been taken for this inquiry, and we will choose one post-growth. Therefore, the follow-up question will be, how will the cooperatives economy fit into this presumably new development metric? This article will work on this inquiry to find the principles dimension in the interrelated nature of cooperatives and post-growth. It draws eight critical principles on the alignment of cooperatives and post-growth, where one principle will be related and dependent on the latter and vice versa.
Discussion
The Oppressed and the Poor: First Dimension of Post-Growth Cooperative
Malcom Ferdinand’s works in his book Decolonial Ecology may fit into our inquiry on the first dimension of post-growth cooperative. He proposed a ‘double fracture’ concept where the oppressed and the poor, a victim of a ‘colonial ruptures’ dimension, is equivalent to the victim of ‘environmental violence.’ Both fractures cause the impoverishment of the poor; one lies in the remnants of colonialism and incomplete postcolonial decolonization efforts, and the other lies in extinctions on a planetary scale, driven primarily by the climate crisis. This double fracture affects the majority of the impoverished population of the third world. Ferdinand views the double fracture occurring when capitalism and colonialism exploit and extract resources from nature and human beings, resulting in a system of oppression and domination that affects both the environment and marginalized communities. This exploitation process is driven by the pursuit of profits, economic growth, and wealth accumulation by a few at the expense of many.
This critical analysis connects to our endeavor to push cooperative works to empower the poor in a post-growth world. The post-growth cooperative economy promotes economic systems prioritizing social and ecological sustainability over profit and empowers the oppressed and poor to control their economic fates, addressing Malcom’s ‘double fracture.’ It recognizes the interconnectedness of social and ecological systems in the development-building process that meets the needs of people and the planet.
Cooperatives are owned and controlled by their members, typically workers, consumers, or producers; all of them are working class, who come together to share the risks and benefits of a business. This means that poor and working-class individuals who are often excluded from traditional economic systems have the opportunity to participate in and benefit from cooperative enterprises.
By collectively owning and managing their businesses, the working class can challenge the capitalist mode of production. The capitalist economic system is characterized by the exploitation of the working class, who are paid less than the value of their labor, while the capitalist class appropriates the surplus value as profit. This creates a fundamental conflict between the working class and the capitalist class. In this context, cooperative enterprises can be seen as a tool of worker ownership and control over the means of production.
In a post-growth economy, cooperative enterprises promote equitable economic development. By providing opportunities for the poor and working class to participate in economic decision-making and benefit from the profits of a business, cooperative enterprises help to reduce inequality and create more resilient and sustainable communities.
Rationality-Oriented
Cooperative enterprises also offer a range of economic benefits for the poor and working class. By pooling their resources and sharing the risks and rewards of a business, members of cooperatives can access markets, finance, and resources they may not be able to access on their own. Cooperative enterprises also provide members with stable and dignified work opportunities and access to training and education to improve their skills and employability.
It is the result of the rationality-oriented nature of cooperative economy. Cooperative economies are characterized by their rationality-oriented nature, which contrasts with the profit-oriented nature of traditional capitalist economies. This means that cooperatives prioritize rational decision-making based on the needs and values of their members rather than maximizing profits for external shareholders or investors. In a profit-oriented economy, the primary goal of businesses is to generate profits and increase shareholder value. This leads to decisions prioritizing short-term gains over long-term sustainability and social responsibility and focusing on maximizing shareholder returns rather than creating value for society.
In contrast, cooperative enterprises are guided by self-help, self-responsibility, democracy, equality, equity, and solidarity. These reasoned principles prioritize the needs and values of the members of the cooperative, who collectively own and control the enterprise, rather than external shareholders or investors.
This rationality-oriented nature of cooperatives means prioritizing long-term sustainability, social responsibility, and community well-being rather than short-term profits. This can result in more equitable and sustainable economic development and a greater emphasis on meeting the community’s needs rather than maximizing profits.
Maximizing profits over community welfare and happiness can have serious consequences. Businesses that put profits before community well-being may harm the environment, public health, and social equity. A business may pollute, deforest, or over-extract resources to maximize profits. This irrationality can harm community health, the environment, and the ecosystem. Cost-cutting can also lead to unsafe workplaces and worker exploitation. This lead to workplace accidents, illnesses, and long-term physical and mental health issues for workers. Businesses may worsen social and economic inequality when profit comes before the community. They may pay low wages, hire discriminatorily, or outsource to countries with lower labor standards. Therefore, income inequality, economic insecurity, and social fragmentation may increase.
The rationality-oriented approach in cooperatives is closely related to the post-growth agenda, as both seek to promote more rational, equitable, and sustainable economic systems that prioritize social and ecological sustainability over profit maximization. These second dimensions of post-growth cooperatives made economics responsive to the needs of people and the planet.
Prosperity Objectives
Cooperative enterprise is a critical instrument to redistribute wealth. In this context, the profits of a business are shared among the members rather than being concentrated in the hands of external investors or shareholders. This help to reduce income inequality and create a more just society. Cooperatives’ goals include fostering community members’ social and economic empowerment, promoting democratic decision-making processes, and creating sustainable and resilient economic systems for the poor and disadvantaged. Cooperatives aim to create and maintain strong, resilient communities that can address social, economic, and environmental challenges collectively and collaboratively. It prioritizes community well-being, including access to basic needs such as food, housing, and healthcare, as well as education, social support, and cultural development.
Furthermore, empirical evidence supports the claim that prosperity is the ultimate objective of cooperative economies. For instance, an International Labour Organization study found that cooperatives positively affect economic and social development, including increased income and employment opportunities, improved access to essential services, and increased social and economic empowerment of community members. The study also found that cooperatives promote sustainable and equitable economic systems, which contribute to the overall prosperity of their communities. In addition, a review of studies conducted by the United Nations Research Institute for Social Development revealed that cooperatives positively impact poverty reduction, economic growth, and social and environmental sustainability. It was also determined that cooperatives effectively promote marginalized groups’ social and economic empowerment, such as women, youth, and rural communities.
In a post-growth world, economic systems prioritizing human well-being and ecological sustainability over profit are created and flourished. Instead of maximizing economic growth, the economy’s goal should be to meet human needs. By prioritizing human needs, including fair wages, employment, healthcare, and education, cooperatives can redistribute wealth and reduce inequality.
Democratic Arrangement
The democratic nature of cooperative economies is one of their defining characteristics. One significant result of the poor and working class’s work in cooperative enterprises is the creation of economic democracy. Cooperative enterprises provide a democratic structure where each member has an equal say in decision-making, regardless of their financial contribution. This can empower poor and working-class individuals who are often excluded from decision-making in traditional hierarchical business structures, moreover, ensures that the interests and values of all members are taken into account and that decisions are made based on rational consideration of the long-term interests of the business and the community it serves. This democratic framework allows for a more participatory and inclusive approach to economic activity, where decisions are made based on the needs and priorities of the community rather than the pursuit of profit.
Cooperative enterprises can be critical institutions to promote alternative models of ownership and governance that are more democratic and participatory. This can help challenge the concentration of power and wealth in the hands of a small elite often associated with traditional economic systems. The democratic nature of cooperative economies is grounded in one member, one vote. This means that all members have an equal say in the decision-making process, regardless of their financial contribution to the cooperative. Moreover, cooperatives typically operate on a not-for-profit basis, meaning that any surplus generated by the cooperative is reinvested in the business or distributed to members fairly and equitably.
Empirical evidence of democratic cooperatives can be found in the Mondragon Corporation in Spain, one of the largest and most successful examples of a democratic cooperative enterprise. Mondragon is a federation of over 100 cooperatives with over 80,000 members and over $12 billion in annual revenue. The corporation operates on a democratic model, where all members have an equal say in the management and direction of the cooperatives, and decisions are made based on the needs and priorities of the community.
Undemocratic enterprises are typically organized around a top-down, hierarchical model, where decisions are made by a small group of executives or owners, often with little input from workers or other stakeholders. This model can lead to a concentration of power and wealth in the hands of a few and can result in decisions prioritizing profit over the needs and priorities of workers, communities, and the environment. Research has shown cooperatives are often more resilient and sustainable than traditional, top-down enterprises. For instance, a study by ILO found that cooperatives were more likely to survive and thrive during times of economic crisis due in part to their more democratic and inclusive model of ownership and control.
Anti-Consumerism: Sustainable Production and Consumption
Cooperative enterprises are characterized by a focus on local production and consumption, which can help reduce economic growth’s negative environmental impacts. It prioritizes the community’s needs over the interests of external investors; cooperative enterprises can also help prevent the externalization of environmental and social costs often associated with traditional economic growth. Cooperatives often prioritize local production and consumption, which reduces the need for long-distance transportation and promotes the use of renewable and local resources. This approach is aligned with the post-growth agenda, which seeks to reduce the ecological footprint of economic activity and promote the use of renewable and local resources.
By prioritizing environmental sustainability in their business operations, cooperatives help advance sustainable production and consumption practices. For instance, the use of renewable energy, waste reduction, and the reduction of the cooperative’s overall carbon footprint are some of the sustainable sourcing and production practices that many cooperatives prioritize. In addition, cooperatives frequently emphasize utilizing local resources and suppliers, which can assist in mitigating the adverse effects of production and transportation on the environment.
Instead of encouraging pointless or wasteful consumption, cooperatives can help spread awareness about the importance of sustainable consumption by providing members with goods and services tailored to meet the community’s requirements. For instance, the production of high-quality, long-lasting, and durable goods is often given priority by many cooperatives. This is in contrast to the production of disposable or low-quality goods, contributing to a culture of overconsumption. Cooperative economies have the potential to promote not only more environmentally and socially responsible production and consumption but also more significant social and economic inclusion. Cooperatives can help ensure that resources and wealth are more evenly distributed within the community and that all members have an equal say in the cooperative’s management and direction.
Ecological Justice
Ecological justice is a crucial concept that acknowledges the disproportionate effects of environmental degradation and pollution on marginalized and vulnerable communities. Ecological justice aims to ensure that environmental benefits and burdens are distributed equitably and that human health and the environment are protected for all. By prioritizing the needs and priorities of vulnerable and marginalized communities, cooperatives play a crucial role in promoting ecological justice. Cooperatives can help to create a more sustainable and equitable economic system by advocating for policy changes and collective action at the local, national, and international levels.
In addition, cooperatives foster more significant economic and social inclusion by prioritizing social justice issues such as fair labor practices, equitable access to resources, and community development, while addressing systemic inequalities and injustices. Cooperatives can contribute to a more sustainable and equitable economic system by prioritizing the needs and concerns of people and the planet. Cooperatives institutions can promote a vital role in a more sustainable and equitable economic system through collaboration with cooperatives, community groups, and advocacy groups. By advocating for policy changes and collective action, cooperatives can contribute to developing a more just and equitable society that prioritizes the well-being of people and the planet.
Communities of Happiness
The World Happiness Report is an annual publication that measures the happiness and well-being of people in countries around the world. The report considers various factors such as social support, freedom to make life choices, generosity, and perceptions of corruption.
Studies have shown that cooperatives can contribute to the happiness and well-being of people in a post-growth world. This is because cooperatives prioritize the needs and concerns of their members, often providing essential services and products that contribute to their quality of life. Furthermore, cooperatives prioritize democratic decision-making and engagement, which can lead to a sense of community and belonging among members. This sense of community can contribute to greater social support and a sense of purpose, which are factors known to contribute to happiness and well-being. Cooperatives also prioritize social and environmental responsibility, which can contribute to a sense of fulfillment and purpose among members. By promoting ethical and sustainable practices, cooperatives can help address environmental and social challenges, which can contribute to happiness and well-being.
Conclusion
In conclusion, this piece highlights the importance and potential of cooperative enterprises as a critical economic institution to empower the poor and promote sustainable and equitable economic development in a post-growth world. Cooperatives’ rationality-oriented and community-focused nature offers an alternative model of ownership and governance that is more democratic and participatory and promotes ecological justice. By redistributing wealth, reducing income inequality, and prioritizing social and ecological sustainability over profit, cooperative enterprises can help to create resilient, sustainable, and more just communities. Additionally, studies suggest that cooperatives can contribute to the happiness and well-being of people by providing essential services and products that meet their quality of life needs. When it comes to third-world countries, which are currently dealing with a major catastrophe on a planetary scale and are still mired in the muck of severe poverty, the concept of cooperatives needs to be mainstreamed at this time more than at any other time in history. These aspects of post-growth cooperatives need to be voiced, and the urgency surrounding them needs to be increased.
