Articles

1. The Co-operative Alternative

   The central premise of The Hidden Alternative - Co-operative values, past, present and future is "the belief that co-operation offers a real and much-needed alternative for the organisation of human and social affairs"  -  an alternative vision to state-led and free market capitalism options.

   The book, then, is a serious contribution to revealing the nature of co-operation and co-operatives and aims to  "stimulate further research and both academic and public debate about co-operative solutions to the pressing global  problems of the twenty-first century.

   Neo-conservative Orthodoxy

   The global financial catastrophe of 2008 confirmed the suspicions of many that this " neo-conservative orthodoxy was inherently flawed, and that a new vision was needed of how the global economy might operate." The Global Financial Crisis "has exposed many of the inherent problems of investor-led corporate capitalism, including its propensity to rampant and perilous financial speculation, its lack of accountability to shareholders and governments, its dubious morality and its tendency to exacerbate social and economic inequalities."

   The book is edited by Anthony Webster, Linda Shaw, John K. Walton, Alyson Brown and David Stewart.

   Anthony Webster is Head of History at Liverpool John Moores University. Linda Shaw is Vice Principal of the Co-operative College, Manchester. John K. Walton is an Ikerbasque Research Professor at the University of the Basque Country, Bibao. Alyson Brown is Reader in History at Edge Hill University. David Stewart is Senior Lecturer in History at the University of Central Lacashire.

   The papers in the book are the proceedings of a July 2009 conference - Can Values Make a Difference/ Co-operatives - moving from the Rochdale Pioneers to the 21st Century.  There will be a follow-up conference on 3 -5 July 2012, in Manchester & Rochdale, UK - Mainstreaming Co-operation: An Alternative for the 21st Century?

   In their Introduction to the book, the editors describe the July 2009 conference as  "a major conference of academics and co-operative practitiioners" which shared "the varied ways in which the values of co-operation have been interpreted and translated into action at different times and in different  places and contexts; how the basic philosophy which underpins the movement has been adapted to meet a diversity of circumstances and to overcome a wide range of obstacles and problems."  Over 100 delegates from 32  countries attended the conference. In this digital age it is a pity that it has taken two years for the proceedings to become available.

   Co-operative Education

   Certain common themes emerge from the contributions.  The centrality of co-operative education is one of these and this is explored  by several contributors - Keith Vernon in Values and vocation; educating the co-operative workforce, 1918-1939,  Linda Shaw in  International perspectives on co-operative education and Ferando Molina and John K. Walton in An alternative co-operative tradition: the Basque co-operatives of Mondragon.  What emerges from these contributions is that co-operative education is not simply imparting knowledge and skills. Co-operative education makes co-operators - holding the co-operative and its members together.  For co-operative education to succeed, however, it depends on co-operatives understanding and accepting its necessity, its purpose, its substance and its methods. When there is an absence of an ongoing co-operative education program, co-operatives can falter and deliberately move away from original form and functions - away from co-operative values and principles. The key to this move could be the appointment of a General Manager/ Chief Executive Officer who is agnostic about co-operative values and principles and leads the board on a path of conversion. The survival of co-operatives depends on the board and management continuing to be committed to co-operative ideals and member engagement and participation.

   In Australia it is a challenge to persuade co-operatives to accept the centrality of co-operative education. There is a striking exception to this -  the Capricorn Society in Western Australia which for many years has embraced an ongoing co-operative education program with the UK Co-operative College. Capricorn was established in 1976. It has 12,000 automotive business members in Australia, New Zealand and the Republic of South Africa, It is one of two Australian members of the International Co-operative Alliance - the other member is also a West Australia co-operative CBH Group. Other co-operatives in Australia have not been willing to embrace an ongoing commitment to co-operative education but have, instead, participated in one-off or occasional workshops.

   Co-operative Paradigm

   In a concluding chapter, The Hidden Alternative: Conclusion, Ed Mayo proposes  that the co-operative alternative is in reality diverse with overlaying dimensions and co-operative ideology. He suggests that there is a need for "an alternative paradigm and not just an alternative practice." He believes that this is necessary to enable the articulation of a different understanding of economic life.   Mayo does not examine the nature of the co-operative paradigm.  The development of a co-operative paradigm requires agreement between co-operatives and co-operators that a paradigm is necessary and relevant and agreement on the elements of the paradigm including purpose, characteristics and differentiation.

   Mayo's argument provides an insight into why most Australian co-operatives have not accepted the need for an ongoing co-operative education program. Historically, the development of Australia's co-operatives has been more pragmatic than ideological. While there has been a commitment to co-operatives, the commitment to co-operation and the development of co-operators has been more incidental than a planned outcome. In The Democracy Principle - Farmer Co-operatives in Twentieth Century Australia, Gary Lewis has documented that the absence or deterioration of a co-operative paradigm and a co-operative education program has led to  a  loss of co-operative identity and the demutualisation of  agricultural co-operatives. In his Preface, Lewis writes: "This book celebrates the vision and courage of farmer co-operators dedicated to the democracy principle while offering a sobering reminder that powerful forces inside and outside the co-operative movement do not share this vision.

   There have been exceptions, of course, and the YCW Co-operative Movement in Australia in the 1950's - 1960's believed in and implemented an ongoing co-operative education program. The YCW Co-operative Movement was guided by clear objects, methods and principles based on Catholic social teaching and was developed in Australian by the YCW - the Catholic Young Christian Workers movement. The Australian YCW was established in Melbourne, Victoria, in 1941. The YCW Co-operative Movement endorsed six principles by which it set out to achieve its objects and judge its methods and these could be summarised as the primacy of the individual, social reform must come through education, education must begin with the economic, education must be through group action, effective social reform involves fundamental changes in social and economic institutions and the ultimate objective of the movement is a full and abundant life for everyone in the community.  This was a co-operative paradigm.

   A  commitment to co-operation and the development of co-operators is fundamental to mainstreaming the co-operative alternative and without  this  there is insufficient understanding of the importance of co-operative education programs  to developing and maintaining the co-operative paradigm.

   The dominance of pragmatic co-operation in Australia also explains the success of demutualisation of agricultural co-operatives and financial mutuals in Australia. The assessment of demutualisation has been pragmatic - rather than ideological.

   Mayo concludes that the veiling of the co-operative alternative could simply be the result of the sweep of history - the interplay between conflict and co-operation. He suggests that its up to those involved and supporters of the co-operative ideal to mainstream co-operatives and co-operation. But, this has always been so. The absence of a co-operative paradigm has inhibiited co-operative advocacy and education.

   In IYC 2012 this is an important book to consider in how to go beyond 2012 - through the development of a co-operative paradigm and the centrality of an ongoing co-operative education program.  These must underpin existing discussions in Australia  about improved national representation and advocacy - representing who and advocating what.

   The Hidden Alternative: Co-operative values, past, present and future, Manchester University Press and United Nations University Press, 2011  Pbk 320pp,  9780719086564 A$39.95  NZ$57.95 There is a 15% discount and Free Freight. The book is available in Australia and New Zealand from Footprint Books. Email: info@footprint.com.au">info@footprint.com.au Telephone: 02 9997 3973 Facsimile: 02 9997 3185 Download the order form for Australia and New Zealand.

2. Baker Co-operative

   The ABC Shop is selling  Series 1 of a  BBC Wales TV series on the formation of a worker co-operative - the Baker Boys.  The story takes place in the village at the Valley Bara bakery in  Trefynydd in South Wales. The workers at the bakery find themselves unemployed overnight and there is no money for their redundancy entitlements. The baker boys decide to buy and manage the bakery as a co-operative. There are three episodes in Series 1  which explores the challenges for the bakery boys. The most well-known actor in the Baker Boys is Eve Myles -  a star in f Torchwood and Little Dorrit.

3. Australia's Third Co-operative Bank

    Heritage Building Society will begin operating as Heritage Bank Limited on 1 December 2011. The Australian Prudential Regulation Authority has approved its change of name. Heritage will become Australia's largest member-owner bank.

   Heritage is Australia's largest building society with total assets of more than $8 billion. its origins go back to 1975/ heritage has 59 braqnches across south-east Queensland as well as offices in Sydney, Melbourne and Adelaide. its members have access to a network ofr 2,9000 ATMs across Australia.

   Heritage was No 20 on Australia's Top 100 Co-operatives, Credit Unions and Mutuals by Annual Turnover published by Co-operatives Australia in April 2011.

4. Australia's Second Co-operative Bank

    

   The Queensland Teachers Credit Union is to be Australia's second co-operative bank with the Australian Prudential Regulation Authority (APRA) granting QTCU permission to use the word bank. On 1 October 2011 QTCU will become QT Mutual Bank. The credit union has 79,000 members, 210 staff and 14 branches.

   Read the Queensland Teachers Credit Union news release on becoming a mutual bank:

5. Australia's First Co-operative Bank

   This follows the challenge from the Federal Government to increase competition against the big four banks. The Federal Government wishes to see the mutual banking sector provider greater levels of competition by creating a 5th pillar in banking.

   From 1 September 2011 MECU Limited will adopt the new business name bankmecu. MECU Limited is a large Australian credit union with assets exceeding $2.6 billion and $287 million in capital. It has 125,000 customers and 348 staff.

   bankmecu will be a customer owned bank - a bank owned by its customers.

   Read the MECU news release on bankmecu

   Read the ABACUS Australian Mutuals news release on Australia's first mutual bank.