MODULE 2

W RLD HIST RY
OF C OPERATIVES
 MOSATALLA, TABLANG,
BARTOLOME, BUNDANG, SATUITO,
NOBUYUKI AALIYAH
SCHULZ D. RHEA ANN L. PATRICIA ANNE
PAULO MIKAELLA G.
N.

GROUP 1
LEARNING OBJECTIVES
THE S TUDENT WI L L H A V E A BA S I C
UNDERSTAN DI N G OF THE HI S TO RY O F
THE COOPE RATI VE MO V EM ENT.

THE S TUDENT WI L L UN DERS TA ND THE

S OCI AL CONTE XT AN D S O M E O F THE
KEY PEOPLE I N VOL VE DWI THTHE
DEVELOPME N T OF C O- O P S .

THE S TUDENT WI L L UN DERS TA ND THE

I MPORTANC E OF C O- OP S FO R CO M M UNI TY A ND
PER SONAL DE VE L OPMENT – BO TH S O M E DI RECT
AND I NDI REC T BE N E FI T S THA T WI LL RES ULT
FR OM THE DE VE L OPMENT O F A CO -O P .
 INTRODUCTION

Cooperatives have played a long and

constructive role in most of the world's
economies.
 A. THE EARLIEST
FORMS OF SOCIAL
COOPERATION
A. The Earliest Forms of Social Cooperation

Started during the 17th and 18th Century

Towns and factory centers in England experienced

harsh and miserable life.

Social unrest and conflicts continue to worsen compounded

by religious conflicts and economic dislocations.
 A. The Earliest Forms of Social Cooperation

Many consider this as the forerunner of what is now

called “Cooperatives.”

Guilds played a significant part in the community.

The guilds were as concerned with social and religious

matters as they were with economic ones.

Guilds & Merchant

 B. THE INDUSTRIAL
REVOLUTION AND THE
FACTORY SYSTEM

 The latter part of the 18th century saw the

massive transformation of production into
B. The Industrial what historians call the “Industrial
Revolution”.
Revolution and The Industrial Revolution brought about
increases in human productivity without
the Factory precedent in history.
System The working class lived below the
subsistence level and their standard of
living.
 Karl Marx (Das Kapital) work on his
understanding of capitalism as a social and
economic system remains a valid critique.
B. The Industrial
He argues that society is composed of two Revolution and
main classes: The Bourgeoisie/Capitalist &
The Proletariat. the Factory
Laborers do not own or have any claim to
the means of production.
System

Bourgeioisie &

Proletariat
The proletariat in their

workplace

definition of proletriat;

The proletariat

is the economic class

of wage earners; it is made up of

people in a society whose only real

economic asset is their labor force.

definition of bourgeoisie;

The bourgeoisie

is a social class,

equivalent to the middle or upper

middle class. They are distinguished

from, and traditionally contrasted

with, the proletariat by their

affluence, and their great cultural and

financial capital.
Under industrial capitalism, society is
organized with capitalists setting up
labor in workplaces where they are
paid.

Feudalism was a particular system of social

connections between the lord and peasant
classes that predated capitalism and were
based on the then-dominant hand- or
animal-powered modes of production. The
kind of technology that is employed in the
manufacturing process determines the
structure of society at any particular
moment.
In comparison, the poor's standard of living drastically
decreased. The new manufacturing structure severely
disrupted the ancient way of life for the workers, plunging
them into a nightmarish environment for which they were
unprepared.

Workers in handcraft industries lost their sense of pride in their

job and their tight bonds with one another.
C. THE BIRTH OF THE
COOPERATIVE IDEA

As base reactions to the callous exploitation of new

industrial capitalism, cooperatives emerged

concurrently with other workers' organisations

such friendly societies, cooperative associations,

and unions.

Fenwick Weavers Society of Scotland 1761

Robert Owen's worker-centered revival of New Lanark mills

in the first 16 decades of the 19th century

London Cooperative Society in 1824

Equitable Labor Exchange in 1832–1833
Robert Owen
Robert Owen was a Welsh textile

manufacturer, philanthropist and

social reformer, and a founder of

utopian socialism and the

cooperative movement.
William King
William King was a British physician

and philanthropist from Brighton. He

is best known as an early supporter

of the co-operative movement

through the paper he founded, The

Co-operator.
Both Owen and King condemned the individualist
competition that prevails in the society and
believes that only a few will ever benefit from the
market dominated system. They believed that
people’s will be able to defeat poverty when;

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o They collectively work together

o equality is observed in their organization

o Collectively owned and be responsible to the properties of

the organization

o Fruits of their labor and production is shared

o Prioritize service and people over profit

o Continuously educate
 D. THE ROCHDALE
PIONEERS & THE BIRTH
OF MODERN
COOPERATION
 D. The Rochdale Pioneers &
the Birth of Modern Cooperation

Recognized to be the first formal group to form a cooperative

were the Rochdale Society. Inspired by the principles forwarded
by Owen, King and other socialists. The Rochdale Pioneers
Society were composed of 28 workers, most of
them were mat weavers.

The Rochdale Pioneers were the authors of cooperation in

Manchester, Engalnd. They were the first group who crafted
cooperative history.
 D. The Rochdale Pioneers &
the Birth of Modern Cooperation

One of the highlights of the campaigns by the Pioneers Society

was when they did not get the raise they had hoped for, the
Rochdale Pioneers without knowing exactly what they were
going to do, decided to set up a fighting fund to raise start-up
capital for an as yet undetermined plan.

They collectively decided to contribute one pound each for the

seed capital of an enterprise -- “cooperative social enterprise”.
After series of reflection and collective discussions of the
members, they opted for thecooperative solution.
 D. The Rochdale Pioneers &
the Birth of Modern Cooperation

On October 24th 1844, they registered the Rochdale Equitable

Pioneers Society, a cooperative retail society. This meant that its
members could get supplies of food like oatmeal, butter and
other goods at the lowest cost.

The Rochdale cooperative thus became a model not only for all
consumer cooperativesbut also for all cooperatives around the
world.
Rules and Principles of
the Rochdale Pioneers’
Society
 RULES & PRINCIPLES OF THE ROCHDALE EQUITABLE
PIONEERS' SOCIETY

To this day, the Rochdale Pioneers Society principles continues to be the starting point for
all cooperatives in the world. These principles are the following:

• Open and voluntary membership;

• Democratic control;
• Interest on share capital limited to 6%;
• Distribution of surplus to members in proportion to their transactions;
• Cash trading;
• Education and training for members;
• Political and religious neutrality; and
• Charitable distribution of assets in the event of dissolution.
 E. THE EARLY
PRACTICE AND THE
GROWTH OF
COOPERATIVES
Cooperatives were soon established in most

town centers where working people converge.

While Germany as being ravaged by the famine until

1848, workers led Franz Herman Schulze Delitze
established cooperative credit unions in the urban
centers which came to be known as People’s Banks.
Raiffeisen Bank in Germany
The Raiffeisen credit

cooperatives were said to be

the earliest form of credit

cooperatives and gained some

success in minimizing the

exploitative loan interest by the

landlord-usurers .
Soon, cooperatives in its various forms were

being established in the whole Europe even

during the world war.

The cooperatives were soon being

established in the United States of America

and sprouted as “self-help organizations”

and housing cooperatives during the Great

Depression in 1930s.

 F. THE GLOBAL
COOPERATIVE MOVEMENT
AND THE INTERNATIONAL
COOPERATIVE ALLIANCE
The International Cooperative Alliance unites all the cooperative all over

the world under their respective member countries. It promotes,

advocates and develops cooperatives all over the world.

There exist no precise estimates on the number of cooperatives and

members in the new millennium. But the United Nations guesstimates that

the “cooperative movement” had over 800 million members at the

beginning of the new millennium and provided for about 100 million jobs.

In addition, over the last 150 years cooperatives have spread to over 100

countries. Cooperatives are of importance in both developed and less

developed economies
 F. The Global Cooperative
Movement and the International
Cooperative Alliance

About half of the world’s agricultural output is marketed by

cooperatives, which speaks to the significance of marketing
cooperatives.
Especially in poor countries, cooperatives provide important micro-
credit services. Consumer cooperatives continue to play an
important role worldwide, with its importance varying across
countries.

Electricity provisioning cooperatives have become important. Least

important in terms of quantitative significance are workers’
cooperatives. Only a small percentage of the 100 million individuals
employed by cooperatives are controlled by the workers
themselves.
 F. The Global Cooperative
Movement and the International
Cooperative Alliance

The International Co-operative Alliance (ICA), the formal

governing body of cooperatives, referring to the United Nations,
also maintains that cooperatives secure the livelihood of
approximately three billion people across the globe or about half
of the world’s population.

Survey evidence strongly supports the view that cooperatives

serve to reduce poverty amongst cooperative members as
well as amongst nonmembers and the same can be said with
regard to reducing gender inequality.
In 1995, the ICA adopted the revised Statement on the
Cooperative Identity which contains the definition of a
cooperative, the values of cooperatives, and the seven
cooperative principles
 Cooperatives are based on the values of
self-help, self-responsibility, democracy,
equality, equity and solidarity. In the
tradition of their founders, cooperative
members believe in the ethical values of
honesty, openness, social responsibility and
caring for others.

Global Cooperative Values

 1. Voluntary and Open Membership
2. Democratic Member Control
7 Universally Accepted 3. Member Economic Participation
Coop Principles 4. Autonomy and Independence
5. Education, Training, and Information
6. Cooperation among Cooperatives
7. Concern for Community
THANK YOU FOR
LISTENING!
REFERENCES
What is a cooperative? (2018). ICA. https://www.ica.coop/en/cooperatives/what-
is-a-cooperative
The Nature and Characteristic of Cooperatives. (2011, November 11). ProKoop.
https://prokoop.wordpress.com/the-nature-and-characteristic-of-cooperatives/
Frequently Asked Questions | CDA. (2021). https://cda.gov.ph/frequently-asked-
questions/
youngcooperatives. (2012, April 19). The story of the rochdale pioneers.
YouTube https://www.youtube.com/watch?v=DNVzOsZt6ew
El Comercio (2020, December 14). Co-operation-1|Evolution of CO
operation|Part-2|Rochdale Pioneers|B.com|SDE|Kannur university|. YouTube.
https://www.youtube.com/watch?v=6qUN7J2VA-8

Reference:

Earliest form and the First Cooperative (2021, September 24). History of co-ops.
Co+op. Retrieved January 14, 2023, from https://www.grocery.coop/food-
coops/history-of-co-ops
Industrial Revolution. Encyclopædia Britannica. Retrieved January 14, 2023, from
https://www.britannica.com/event/Industrial-Revolution
The Industrial Revolution. Encyclopædia Britannica. Retrieved January 14, 2023, from
https://www.britannica.com/topic/history-of-Europe/The-Industrial-
Revolution#ref58404