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Co-operative economics is a field of economics, socialist economics, co-operative studies, and political economy, which is concerned with co-operatives.

History

Notable theoreticians who have contributed to the field include Charles Gide,^[1] Robert Owen,^[2] Beatrice and Sydney Webb,^[3] J.T.W. Mitchell, Paul Lambart,^[4] Race Mathews,^[5] David Griffiths,^[6] and G.D.H. Cole.^[7] Historical co-operative movements, such as the Rochdale Pioneers, have also contributed to the field.

Co-operative federalism versus co-operative individualism

A major historical debate in co-operative economics has been between co-operative federalism and co-operative individualism. In an Owenite village of co-operation or a commune, the residents would be both the producers and consumers of its products. However, for a co-operative, the producers and consumers of its products become two different groups of people, and thus, there are two different sets of people who could be defined as its 'users'. As a result, we can define two different modes of co-operative organisation: consumers' cooperative, in which the consumers of a co-operative's goods and services are defined as its users (including food co-operatives, credit unions, etc.), producer co-operatives, in which the producers of a co-operatives goods and services are defined as its users. (Some consider orker co-operatives, which are owned and run exclusively by their worker owners as a third class, others view this as part of the producer category.) .

This in turn led to a debate between those who support Consumers' Co-operatives (known as the Co-operative Federalists) and those who favor Producers Co-operatives (pejoratively labelled ‘Individualist' Co-operativists by the Federalists^[8] ).^[9]

Co-operative Federalism

Co-operative Federalism is the school of thought favouring consumer co-operative societies. Historically, its proponents have included JTW Mitchell and Charles Gide, as well as Paul Lambart and Beatrice Webb. The co-operative federalists argue that consumers should form co-operative wholesale societies (Co-operative Federations in which all members are co-operators, the best historical example of which being CWS in the United Kingdom), and that these co-operative wholesale societies should undertake purchasing farms or factories. They argue that profits (or surpluses) from these co-operative wholesale societies should be paid as dividends to the member co-operators, rather than to their workers.^[10]

Co-operative Individualism

Co-operative Individualism is the school of thought favouring workers' co-operative societies. The most notable proponents of this latter being, in Britain, the Christian Socialists, and later writers like Joseph Reeves, putting this forth as a path to State Socialism.^[11] Where the Co-operative Federalists argue for federations in which consumer co-operators federate, and receive the monetary dividends, rather, in co-operative wholesale societies the profits (or surpluses) would be paid as dividends to their workers.^[12] The Mondragón Co-operatives are an economic model commonly cited by Co-operative Individualists, and a lot of the Co-operative Individualist literature deals with these societies.

Please note that these two schools of thought are not necessarily in binary opposition a priori, and that hybrids between the two positions are possible.^[13]

Other schools

Retailers' cooperatives

In addition to customer vs. worker ownership, retailers' cooperatives also utilize organizations of already constituted corporations as collective owners of the produce.

Co-operative Commonwealth

In some Co-operative economics literature, the aim is the achievement of a Co-operative Commonwealth; a society based on cooperative and socialist principles. Co-operative economists - Federalist, Individualist, and otherwise - have presented the extension of their economic model to its natural limits as a goal.

References

^ Gide, Charles; as translated from French by the Co-operative Reference Library, Dublin, "Consumers' Co-Operative Societies", Manchester: The Co-Operative Union Limited, 1921
^ Owen, Robert, "A New View of Society" (originally published in 1813/1814), in Gartrell, V.A. (ed.), "Report to the County of Lanark / A New View of Society", Ringwood: Penguin Books, 1970.
^ Potter, Beatrice, "The Co-operative Movement in Great Britain", London: Swan Sonnenschein & Co., 1891.
^ Lambert, Paul; as translated by Létarges, Joseph; and Flanagan, D.; “Studies in the Social Philosophy of Co-operation”, (originally published March 1959), Manchester: Co-operative Union, Ltd., 1963.
^ Mathews, Race, "Building the society of equals : worker co-operatives and the A.L.P.", Melbourne: Victorian Fabian Society, 1983.
^ Charles, Graeme, and Griffiths, David, “The Co-operative Formation Decision: Discussing the Co-operative Option”, Frankston: Co-operative Federation of Victoria Ltd., 2003 and 2004
^ Cole, G.D.H., “The British Co-operative Movement in a Socialist Society: A Report for the Fabian Society”, London: George Allen & Unwin Ltd., 1951., and Cole, G.D.H., “A Century of Co-operation”, Oxford: George Allen & Unwin for The Co-operative Union Ltd., 1944.
^ Lewis, p. 244.
^ This analysis is based on a discussion by Gide, Charles; as translated from French by the Co-operative Reference Library, Dublin, "Consumers' CoOperative Societies", Manchester: The Cooperative Union Limited, 1921, pp. 192-203.
^ This analysis is based on a discussion by Gide, Charles, pp. 192-203.
^ Reeves, Joseph, “A Century of Rochdale Cooperation 1844-1944”, London: Lawrence & Wishart, 1944.
^ This analysis is based on a discussion by Gide, Charles, pp. 192-203.
^ This analysis is based on a discussion by Gide, Charles, pp. 192-203.

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 == Co-operative federalism versus co-operative individualism ==
-A major historical debate in co-operative economics has been between [[cooperative federalism|co-operative federalism]] and [[co-operative individualism]]. In an Owenite [[villages of co-operation|village of co-operation]] or a [[Commune (intentional community)|commune]], the residents would be both the producers and consumers of its products. However, for a co-operative, the producers and consumers of its products become two different groups of people, and thus, there are two different sets of people who could be defined as its 'users'. As a result, we can define two different modes of co-operative organisation: [[consumers' cooperative]], in which the consumers of a co-operative's goods and services are defined as its users (including food co-operatives, credit unions, etc.), [[producer co-operatives]], in which the producers of a co-operatives goods and services are defined as its users. (Some define a third class - worker co-operatives, which are owned and run exclusively by their worker owners ) <!-- (which includes [[worker co-operative]], agricultural producer co-operatives, etc.)This is not true. Worker Co-operatives are owned by their workers. Producer co-ops are owned by the owners of the farm, the cheese production, etc, whereever production is taking place. These farms are not required, and are rarely in actuality, owned by workers. For more on this go to the worker co-operative wiki page --> .
+A major historical debate in co-operative economics has been between [[cooperative federalism|co-operative federalism]] and [[co-operative individualism]]. In an Owenite [[villages of co-operation|village of co-operation]] or a [[Commune (intentional community)|commune]], the residents would be both the producers and consumers of its products. However, for a co-operative, the producers and consumers of its products become two different groups of people, and thus, there are two different sets of people who could be defined as its 'users'. As a result, we can define two different modes of co-operative organisation: [[consumers' cooperative]], in which the consumers of a co-operative's goods and services are defined as its users (including food co-operatives, credit unions, etc.), [[producer co-operatives]], in which the producers of a co-operatives goods and services are defined as its users. (Some consider orker co-operatives, which are owned and run exclusively by their worker owners as a third class, others view this as part of the producer category.) <!-- (which includes [[worker co-operative]], agricultural producer co-operatives, etc.)This is not true. Worker Co-operatives are owned by their workers. Producer co-ops are owned by the owners of the farm, the cheese production, etc, whereever production is taking place. These farms are not required, and are rarely in actuality, owned by workers. For more on this go to the worker co-operative wiki page --> .
 This in turn led to a debate between those who support Consumers' Co-operatives (known as the [[Cooperative Federalism|Co-operative Federalists]]) and those who favor Producers Co-operatives (pejoratively labelled [[Cooperative individualism|‘Individualist' Co-operativists]] by the Federalists<ref>Lewis, p. 244.</ref> ).<ref>This analysis is based on a discussion by Gide, Charles; as translated from French by the Co-operative Reference Library, Dublin, "Consumers' CoOperative Societies", Manchester: The Cooperative Union Limited, 1921, pp. 192-203.</ref>