Co-operative economics

Co-operative economics is a field of economics, socialist economics, Co-operative studies, and political economy, which is concerned with co-operatives. Notable theoreticians who have contributed to the field include Charles Gide, Robert Owen, Beatrice and Sydney Webb, J.T.W. Mitchell, Paul Lambart, Race Mathews, David Griffiths, and G.D.H. Cole. 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.), and producer co-operatives, in which the producers of a co-operatives goods and services are defined as its users (which includes worker co-operative, agricultural producer co-operatives, etc.).

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 ).

Co-operative Federalism

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

Co-operative Individualism

Co-operative Individualism is the school of thought favouring Workers Co-operative societies. The most notable proponents of the latter in Britain being the Christian Socialists, and later writers like Joseph Reeves as a path to State Socialism. Where the Co-operative Federalists argued for Co-operative Unions. Where Consumers' Co-operatives federate, profits (or surpluses) from Co-operative Wholesale Socieites should be paid as dividends to their workers, rather member Co-operatives. The Mondragon 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.

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.