New Internationalist

Can co-operatives provide an alternative to capitalism?

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Aidan Jones under a Creative Commons Licence

As the world crawls back from near total economic meltdown, only to teeter on the edge of the climate change abyss, people are increasingly asking: is there an alternative to capitalism?

The good news is a newly resurgent global co-op movement is now limbering up as a serious challenger. But can co-ops realistically provide an answer to some of today’s most pressing problems – from rampant inequality and austerity politics to economic turmoil and climate chaos?

To help answer these questions, Ethical Consumer magazine ran an essay competition in 2012, which was the UN-backed International Year of Co-operatives, and invited people to submit responses to the question ‘Is there a co-operative alternative to capitalism?’

People Over Capitalism bookMore than 40 essays were submitted, from around the world. The best and most thought-provoking are now being showcased in a new book published by New Internationalist, People over Capital: The Co-operative Alternative to Capitalism, which is being launched at a public event in London on 27 September 2013.

‘Written by an eclectic mix of academics, campaigners and active members of co-ops, the essays represents a lively debate that examines and highlights what co-ops can offer the world economy and crucially how we can extend their benefits to more people,’ says Rob Harrison, co-editor of Ethical Consumer magazine and the book’s editor.

With inspirational examples of how co-ops are helping people to transform battered economies and communities around the world, the book positively shouts out its key message that yes, an alternative to capitalism does exist – and if we’re smart enough then we just might be able to save ourselves from a market-driven oblivion.

Leading the charge of the co-ops is Ed Mayo, secretary general of Co-ops UK, the trade body that promotes co-ops in the UK. He smashes the perception that co-ops have a mere walk-on part on the world stage. ‘Globally, co-ops employ over 100 million people, 20 per cent more than multinational businesses, whilst the largest 300 co-ops in the world have an annual turnover of over $1 trillion,’ he writes.

Mayo argues that the time is right for co-ops: ‘What is interesting is that the context is perhaps better suited to co-operative enterprise than for many a year. The sources of business value are now more around innovation, creativity and relationships. Technology is creating more and more opportunities for ordinary people to participate and collaborate.’

The success of co-operatively created open-source software and internet infrastructure such as OpenOffice and Wordpress are cited in the book as glittering examples of how co-operative projects can out-compete capitalist businesses on their own limited terms of price and quality.

But even if the world were run by large co-operative businesses, would there still be downfalls?

‘A couple of authors believe that scaled-up co-ops have just as big a negative impact as big multinationals,’ says Harrison.

Other authors point out that you don’t necessarily need to be a co-op to be a sustainable business, given that there are a number of privately and sustainably run companies such as Café Direct, Good Energy and Marks and Spencer, as long as you have a progressive social and environmental agenda embedded at your core.

Overall though, the abiding message of the book is that co-ops may be underplaying their potential significance, says Mayo: ‘The values of co-operative self-help and mutual aid are more relevant than ever for those who wish to see shared prosperity and the emergence of a sustainable economy.’

All are welcome at the launch of People over Capital: The Co-operative Alternative to Capitalism in London on Friday 27 September. The event will include talks from Rob Harrison, Ed Mayo and other leaders from the UK's co-op movement. For more details, click here.

This blog originally appeared on the Guardian website.

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  1. #1 anthony wade 25 Sep 13

    The Venus Project offers a good alternative to capitalism and the free market economy. It is based on a resource economy where by people simply use what they need whilst cultivating resources and not simply exploiting them until they run out or dry up just for the sake of it. So much money and resources are taken by so few and redistributed at such high cost that much end up wasted. The most important resource can be people though and the talents that they have but often never allowed or encouraged to develop them. We must find alternatives to capitalism where exploitation by the few over the many and the greed culture that it breeds is sending us and our planet into further meltdown. This earth is not our alone and we do not have the right to destroy it.

  2. #2 sunil kumar v 29 Oct 13

    We need more and more activities and research on cooperative enterprises in general and workers participatory cooperative enterprises in particular.

  3. #3 Craig Seddon 23 Apr 14

    Co-ops just dont work, the Co-op Group in the UK is a great example of that. The problem with success is it breeds success so when the co-op started it was perfect, it worked hard for its customers, focused on service and profit was an after-thought, customers loved it, but today it has turned into any other national corporation and in many cases like its supermarket division is more expensive than all its rivals and exploiting the people it is meant to be serving. My solution and they are becoming more and more popular these days is social enterprise, not in the traditional sense but one in which companies spend anywhere from 5-40% of their profits on causes they want to spend money on and in return the country gives them tax breaks, if companies are forced to hand tax over they hate and avoid it but when they spend on causes they like that chequebook will soon open. It benefits all sides, customers shop with companies who have a social conscience, companies get a better reputation and decide what happens to the cash that would have been tax, and the governments have vastly reduced expendature because the companies are paying for the bulk of the services they would normally supply, only this way round they do it willingly. Habits are almost impossible to change so although in the comments things like the Venus Project has been mentioned things like that will never get more than a handful of people committing to it. And I would completely dispute that resources are wasted, companies live for profit so if they mine 100tons of material they wont let 1gram of it go to waste as that is lost profit. But I think bringing a revolutionary Social Enterprise system in a free and open capitalist market is the best way for business in the future.

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