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AM Institute Business Strategy Forum 2012 A unique moment of opportunity Mervyn Wilson Co-operative College UK The Co-operative College Setting the scene “These economic upheavals burst a period of protracted “capitalist triumphalism” and began to allow across the political horizon of feasible change a far wider range of possibilities than the established economic and political consensus had allowed us to previously entertain” Setting the scene “The credit crunch and fiscal crisis has freed our political imagination from the idea that this is the only game in town” Setting the scene “ The world has looked into an abyss...the market fundamentalism will inevitably be the starting point for a new world order and a fundamentally renewed morality” Setting the scene “Yet despite the dire financial situation co-operative financial institutions report strong performance. Many are even experiencing unprecedented growth as a ‘flight to safety’ phenomenon unfolds.” Old ideas for new times The co-operative ideal is as old as human society. It is the idea of conflict and competition as a principle of economic progress that is new. The development of the ideal of Co-operation in the nineteenth century can best be understood as an attempt to make explicit a principle which is inherent in the constitution of society but which had been forgotten in the turmoil and disintegration of rapid economic change. AM Carr-Saunders, P Sargant Florence and Robert Peers, 1938 The Rochdale Pioneers THE objects and plans of this Society are to form arrangements for the pecuniary benefit, and the improvement of the social and domestic condition of its members, by raising a sufficient amount of capital in shares of one pound each, to bring into operation the following plans and arrangements Rochdale Pioneers Objectives That as soon as practicable, this society shall proceed to arrange the powers of production, distribution, education, and government, or in other words to establish a self-supporting home-colony of united interests, or assist other societies in establishing such colonies. - To change the world! Internatio nal Cooperative AllianceI mpactI(ICA) Impact According to the UN, if you include members, employees and their dependents over half the worlds population depends on co-operative enterprises of one type or another to improve their basic living standards Co-operatives globally Over a billion members The top 300 turnover exceeds $1.6 trillion Over 100 million jobs Financial co-ops serve over 857 million people – 13% of the world population International Co-operative Alliance (ICA In New Zealand 40% of the adult population are members of cooperatives or mutuals. 1 in 3 families are members of co-operatives in Japan, whilst India has 239 million co-operative members. 6.78 million people – 27% of the population are co-operative members in Malaysia and over 50% of the population (1.6 million) are members in Singapore. International Co-operative Alliance (ICA) Renaissance Renaissance ILO Recommendation 193 The promotion of co-operatives A framework to review and improve co-operative legislation, to strengthen member democratic control, and transparency as building blocks of good governance.” Renaissance • Policy reviews as well as legislative updates • Co-operatives recognised as significant actors in development • Recognition of the role of co-operatives and mutuals in public sector reform • Recognition that co-operatives and mutuals are important components of a 21st century economy Economic strategy • In the long term, the vision is for KZN to be a leader in establishing and developing sustainable cooperatives in South Africa across all economic and social sectors. Established cooperatives will then be able to facilitate the pooling of resources and skills, resulting in an effective reduction in poverty. Renaissance – a new generation • Environmental cooperatives • Health co-operatives • Tenant co-operatives • Rural community cooperatives • Co-operative pubs • Co-operative schools Renaissance Co-operative schools To contribute to greater diversity in education delivery - an alternative to emerging chains To embed a co-operative ethos and co-operative values in schools To provide a co-operative governance model for trusts– empowering key stakeholders through membership Renaissance Housing • “ordinary people in cooperative and mutual housing organisations want to do things to tackle climate change, volunteer as school governors, or participate in various other community activities”. Renewal • Rebranding • Restoring membership benefits • Rebuilding membership • Rebuilding confidence in co-operation • Growth through acquisition • Putting values into practice Pride in identity • “Co-operative members learn from each other, innovate together, and by increasing control over their livelihoods build up the sense of dignity the experience of poverty destroys”. Working out of Poverty - ILO Big – but invisible! “the idea of co-operative and mutual housing is “Britain’s best kept secret”. Little information is available for communities, local authorities, housing associations or others who are interested in exploring co-operative and mutual housing options, and models are hard to develop in an environment not established to support them” Invisibility • “I asked them if they could tell me how many wives Henry VIII had and what were their names. The majority of boys in the class could answer that question straight away, but when I asked if they could tell me who was Robert Owen and when he was born, or on what day the British co-operative movement was founded, they could not give me any answer.” A V Alexander The lost principle? Confidence in co-operative possibilities Education training and information Co-operatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation. 2012 UN Year of Co-operatives “Co-operatives provide vital health, housing and banking services; they promote education and gender equality; they protect the environment and workers rights. Through these and a range of other activities they help people better their lives and those of their communities.” Why? • But where does all this co-operative activity lead? What is the goal for which cooperators are aiming? Is it merely a more efficient economic system? It is that; but it is something more. It is a more satisfying economic system because it is more moral and because it solves most of the presentday problems of industry and commerce? • Co-operation – Hall and Watkins 1937 Why Further information [email protected] www.co-op.ac.uk