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Week 6 Lecture Notes -- Cooperation Around the World

by: Maddy Hodgman

Week 6 Lecture Notes -- Cooperation Around the World ECON 105

Marketplace > University of Massachusetts > Economcs > ECON 105 > Week 6 Lecture Notes Cooperation Around the World
Maddy Hodgman
GPA 3.83
Intro to Political Economy
Erbin Crowell

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About this Document

Tuesday 2/24 -- Cooperation in Europe Thursday 2/26 -- Cooperation Around the World
Intro to Political Economy
Erbin Crowell
Class Notes
intro to political economy, political, economy, Politics, Economics, cooperation, cooperatives, europe
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This 12 page Class Notes was uploaded by Maddy Hodgman on Friday February 27, 2015. The Class Notes belongs to ECON 105 at University of Massachusetts taught by Erbin Crowell in Spring2015. Since its upload, it has received 144 views. For similar materials see Intro to Political Economy in Economcs at University of Massachusetts.


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Date Created: 02/27/15
Thursday February 26 2015 Intro to Political Economy Week 6 Co operation Around the World Cooperation in Africa 4 of world income 1990 Colonia llegacy Nationalist influence Limited industrialization Globalization agricultural economy rapid urbanization food crisis Role of coops Three phases of development colonial influence populistnationalist influence structural adjustment and opening up of markets Early development in Africa Critical Analysis paternalistic tool of colonialism mechanism of market and globalization Positive Analysis defense against exploitation eventually became locally controlled bridge between traditional and modern Two distinct colonial approaches British model Thursday February 26 2015 administered through local structures eventual selfmanagement support for secondary support structures French model central administration compulsory membership 1915 directors and management appointed by colonial administration Nationalist phase Coops as organizing base Tanzania Egypt building on indigenous models Modernizing agent transition to modern agriculture while enabling national development Channel for development aid resources channeled through government Kilimanjaro Native Cooperative Union KNCU rapid growth investment in processing farms community schools cooperative college hotel founded Kilimanjaro Cooperative Bank Coop rather than state constructs roads infrastructure Nationalist Phase nationalist government government control over economy system of village coops independent coops nationalized made illegal in 1976 KNCU reincorporated as conventional corporation to prevent assets Structural adjustment Thursday February 26 2015 coops legalized in 1982 KNCU reincorporated as KNCU 1984 90 societies 60000 members onopoly eliminated heavily impacted by market fluctuations middlemen from 600 employees to 32 in 1990s Today fair trade supports turnaround 1993 today 90 societies 70000 members mission crop finance purchase of inputs market information processing insurance fairtrade premiums fair tourism Nationalist Phase Aid agency critique coops a tool of economic development member engagement weak women s participation limited management skills inadequate needforcapHal dependence on government Thursday February 26 2015 government control Stages of structural adjustment reform of cooperative law development of gov t policy replacement of gov t tech support emphasis on ability to compete in market continuing member needs pace of change Asia and the Pacific Rim Diverse countries and economies 2050 China and India will be the largest with 40 f income inequality will increase environmental degradation displacement of traditional economies developed countries follow pattern similar to Europe Japan coop law established 1900 Toyohiko Kagawa important organizer Christian activist 1922 Union of Japanese Consumer Cooperatives 1937 Coops outlawed Union dismantled leaders arrested PostWWII coops play important role in reconstruction farmers given ownership of land 1947 Agricultural Coop Society Law factors collective reconstruction government support sympathetic culture Co operation in the Americas diverse region 4 Thursday February 26 2015 industrialized agriculture credit unions housing in urban centers agriculturally based small farmer coops rural credit Caribbean colonial influence Coops today United States 30000 coops provide 2 million jobs Colombia coops provide jobs for 365 of country Canada 40 are members of at least one cooperative Uruguay 90 of milk production handled by coops Key factors of all regions lnfluences industrialization government and political colonization legal statutes warconflict poverty changes in economy Obstacles limited capital cultural differences competition gov t control takeovers propaganda lack of skilled management Dominant Sectors agricultural financial Compelling Example agricultural coop environmental impact Tuesday February 24 2015 Intro to Political Economy Week 6 Wrap up from Last Class Co op Comparisons Coop Type of Member Level Primary IndustrySector Secondary VT Electric Coop Yes Consumer Primary Energy no Homes business sector Pioneer Valley Yes Primary Photovoltaics Worker CICOPA UMASS Five Yes member Individuals Primary Financial services College Credit share and savings affiliated w coop banking Union university or its businesses Northcountry Co op Dev Fund Yes Coops and Hybrid Investment individuals National Coop Yes Food Coops Secondary Food Distribution Grocers consumer SUMA Whole Yes Workers Primary Food Distribution Foods worker Rainbow Books Yes Workerconsumer Primary Books and Information UConn Coop Yes Consumer Primary Consumer Associated Press Yes Businesses Primary Media both journalists Subscribers local Hybrid Media Coop bureaus Yes journalists Coop Housing U Yes Resident Primary Housing both of MD consumers Boston Yes Housing coops Federated Community Co ops FEDCO Yes WorkerConsumer Primary Seed both no Business real sector Family Farmer Yes Seed Coop Producer Primary Consumer Global Development Tuesday February 24 2015 Cooperation in Europe Birthplace of modern cooperation Influence of industrial revolution Development and diversification Potential lessons for other regions Lessons to learn from the developing world Requirements for growth Cooperative laws legal recognition protection Austria 1873 Netherlands 1876 Italy 1886 Germany 1894 Finland 1901 Vertical integration Manufacturing distribution efficiency Cooperative unions political influence internal cohesion Consumer coops in Europe Growth in industrialized countries Britain 90 of selfservice shops 20 out of 50 supermarkets 1950 by late 1950s growth had stopped mart share at 11 while chains reached 22 Germany 2 million members 1953 by 1956 overtaken by chains lnternal fragmentation external competition Challenges competition from private sector Tuesday February 24 2015 resistance to conventional business strategies lack of integration lack of loyalty to associations wholesales politicalreligiousethnic divisions small rural shops diminished cooperative identity need for professional committed management Factors for success emphasis on coop identity member participation modernization in product marketing centralization of marketing and distribution Successes Sweden 18 of the market 16 million members 1970 Finland Agriculture Coops in Europe Two primary paths CR Fay Credit cooperation gt Agricultural coops Germany Agricultural coops gt Credit cooperation Denmark Significant in all European rural economies Mid 1990s peak Number of coops France 910 farmers are members 720000 total in 90s share of agriculture 60 of table wine 52 of milk 28 of total agrifood industry market Tuesday February 24 2015 Membership Germany 1990s 5000 coops down from 2300 1950 38 million members almost all producers are members of a coop Share of agricultural economy Scandinavia 1990s Denmark 93 of dairy 96 pork Sweden 37 of agrifood industry Finland 80 of agrifood 95 dairy 68 of meat 50 of farm machinery Credit Coops in Europe Europe 1990s largest Credit Agricole France Worker Coops ltaly Building trades 12000 worker coops employing 500000 people 1988 Scale top 10 employ over 300 people Factors of success strong central organizations government support through contracts postFordist economy trend away from mass production toward smaller scale high tech innovation France 571 firms 1978 Financial crisis government support 1200 coops 40000 employees 1983 Conversions a major factor in growth Tuesday February 24 2015 Britain Scott Bader Commonwealth Conversion of existing business Industrial Common Ownership Movement Food stores bookshops printers alternative tech Financial crisis government support but failures 1200 worker coops by late 1990s Spain Mondragon Coops 1997 166 coops Coop bank 86 industrial 46 educational 15 housing 8 agricultural 6 secondary support 4 service sector 1 retail Multistakeholder system Factors for success High level of industrialization Sympathetic culture labor movement Basque nationalism 1 Groups of coopreneurs from existing coops Hiving new coop from existing coop 2 3 Business planning by bank 4 Independent coops join group 5 Conversion of existing businesses Housing Cooperatives in Europe Sweden coops as an alternative to public housing similar to owner occupation price controls eliminated Norway state actively converts public housing to coop price controls eliminated Tuesday February 24 2015 Social Coops in Europe Withdrawal of state from social services housing elder care social integration daycare education employment training Eastern and Central Europe Early growth significant portion of ICA membership Coop nationalized to varying degrees Collectivization of agriculture Industrial production Postcommunist states coops associated with former regimes Four stages of postcommunist transition 1 Reframing of the economic role of coops from mechanism of the state to independent actors 2 Coops privatized andor returned to member control 3 Passage of new cooperative laws 4 Entry into market economies Coops in Europe Conclusion Consumer coops Peak in 1960s Impacted by competition weak identity Agricultural and credit coops Benefit from government support of agriculture Worker coops Government support and vision of Mondragon Tuesday February 24 2015 Housing coops Government interest and shift from public housing to privately held Health and social care New potential for coops as government reduces role


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