Cooperative movement
A solution that seems simple
My motivation
-It feels good to live in a community
-Members of the community complete each other’s
abilities
-It gives me the pleasure of creating economic and
social values
-It’s functioning is based upon principals that are
worth living for: equality, community, solidarity,
justice, independence, freedom
A foreign body?
A contested organizational form
•
–In
capitalist countries – too collective
–In
socialist countries or communities with similar
principles – too individualist
in between capitalist entreprises and social
organizations
present in the for-profit sector and in social economy,
too
Looking for the „third way”
„towards an ideal society
Capitalism -excessively focused on profit. What are the
pros and cons? What is reality?
- instead of socialism unable to produce profit?
(Széchenyi)
Cooperative
A force organizing society: self aid, self control,
solidarity, independence
Solidarity in economy as well.
„Groups of people organize themselves and
start cooperatives upon based upon their
own investment to satisfy their needs. This is
the best form of self aid.”
(John F. Kennedy)
The beginning
People have the right to participate in
cooperatives and the state has to let them
evolve spontaneously without trying to
control them.
-after works of St Thomas Aquinas
Intervention or spontaneous
development
Politics have already played withlegal
frameworks and values of cooperatives in
order to obtain social change
A cooperative
-has historical roots (experiences, people
participating, economical results)
-implies some philosophical views, an attitude
-is based upon self-organization and selfimprovement it has an influence on people’s
intellect, will and behaviour
-resolves the conflict of property and work
The motivation
conscious reaction of people to an economical crisis in
order to overcome it
OR
the state reacts to the crisis helping the foundation of
cooperatives
people create cooperatives to get financial support
from the state => momentary safety
BUT real help is to enable people to organize
themselves
What could the intention be behind the
intervention of the state?
If the financial investment comes from the state and not the
members?
•
If the state is a member of the cooperative (through local
governments) (questions of property-dependence)?
•
If the favoritism of the state enters the game, who benefits who
doesn't?
•
If the legal frameworks are modified in order to strengthen the
position of circles who share interest with those in power?
•
If the legal frameworks are not stable enough?
•
Could a self-organizing, self-controlled cooperative movement grow in
these conditions?
•
Principles: Congress of Manchester (1995)
7 fundamental principles
-Voluntary and open
membership
-Democratic member
control
-Member economic
participation
-Autonomy and
independence
-Education, training, and
information
-Cooperation among
cooperatives
-Concern for community
6 fundamental
values
self aid
equality
individual
responsibility
democracy
justice
solidarity
The criterias of the functioning of cooperative
loosen up
Principles that are essential to a
cooperative
-Voluntary and open membership
-Democratic member control
„one member, one vote”
-Functioning based upon social and econimical activites at the same
time
How cooperatives and capitalist enteprises influence each
other in the global economy
Cooperatives
Capitalists
-Controlled share of
profit
- Methods of keeping
consumers and extending
their cirle
-Tools of keeping
consumers engaged
-Developing emotional
attachment
Concentration of financial
ressources
•Specialization
•Quick decision making
•Image development
•Flexibility
•
In Hungary at the moment...
5300 cooperatives, 800.000 members
•
starting capital 230 billion HUF
•
profit 800 billion HUF
•
Social cooperatives in Hungary
today
2011 259 registered cooperatives
2014 1934 registered cooperatives
Support of social cooperatives
OFA (2007) out of 49 supported cooperatives 7 functions in 2011
OFA (2008) out of 21 supported cooperatives (5 formerly
supported) 7 functions in 2011
1 cooperative supported both years ceased functionning
-----------EU support (TÁMOP) 141
(salaries, courses, investment 25 %, obligation of spending
all incomes during the project period )
Changing of the legal framework
•
1992. (lands back to former owners)
•
2006. X. tv introduction of the notion of social cooperatives
•
2011. CVI. Tv. Public employment and cooperatives
2012. évi XXXVII. Tv. Registration fee cancelled for social
cooperatives
•
•
2013. évi XLI. Tv. (membership of local governments)
•
2014. financial contribution (new Ptk)
Questions:
Intervention of the state: using cooperatives for political
purposes... OR/AND?
•
Would it be more fruitful to help cooperatives develop
spontaneously (a slower process)?
•
What happens if laws (and political will) intervene to a
tradition ?
•
•
Norms, values, principles?
Thank you for your attention!
Zsuzsa Mészáros
mezsu.kunbabony@gmail.com