Co-operatives and Public Policy

Co-operatives and Public Policy Greetings from the Master of Management – Co-operatives and Credit Unions Program Tom Webb

Co-operatives and Public Policy • Setting the Context • Co-operative Economics • Democratic Government

Co-operatives and Public Policy Rights: Assembly Speech Liberty Community Balance Collective Agenda and Decisions Democratic Essentials Participation Open to All Equality of Persons not $$$ 1 Person – 1 Vote No Outside Control Education Information Equity or fairness Robert Dahl

Co-operatives and Public Policy Economy: Complex set of relationships through which people provide themselves with the goods and services they need. Investor Owned Not for profit & Family Business Co-operative & Mutual Business Government Departments & Agencies

Co-operatives and Public Policy Cold War Communist Revolution 1900 1945 1989 2009 Scope for Discussion ? Scope for discussion

Co-operatives and Public Policy One dollar one vote Current Economy Dominated by Investor-owned Firms with Single bottom line Operating in Unfettered Markets Self-interest (greed) Property Liberty Wealth = Good Enormous Wealth Creation

Co-operatives and Public Policy The long view… Food Crisis Financial Melt Down Income Distribution Energy Crisis Inter Related Problems of a Market Driven Investor-owned Economy Urban Rural Crisis Environment Crisis Rate of Change Technology Crisis Not a problem? Make a note

Co-operatives and Public Policy Being Clear About the Co-op Difference The four pillars ofco-operation Principles Justice Purpose Values

Co-operatives and Public Policy • 2009 Realities • Investor-owned, unregulated market system and democracy have few common values and significant values friction • Co-operatives and democracy have no values friction • Characteristics of current dominant causing or exacerbating major economic and social issues • Trillions spent bailing dominant economic system out.

Co-operatives and Public Policy Smith’s Market Small equal producers with none big enough to influence prices Global Market: Oligopolies supported by states

Co-operatives and Public Policy Only respond to money Vulnerable to speculation Problems with unfettered markets Basic needs often unmet Often unstable & inefficient

Co-operatives and Public Policy Narrow accounting Unhooked from need Political & Economic fixation Firms too big let to fail Problems with growth Failing to produce happiness Finite world

Co-operatives and Public Policy On being seduced… ……….and the need for common sense “If only mom had invested our family allowances in mutual funds that got 40% a year, we could have retired by age 16” But some people live on $2 a day? Us Us

Co-operatives and Public Policy About common sense… ………….. And economic relationships “I want to build our relationship on self interest and greed. OK?” “No, lets build our economy on it.” Us Us

Co-operatives and Public Policy Why Co-ops are Good Public Policy • Less tension on democracy • People centred = less exploitation • They work – Europe/Co-op 300/Billion-3 billion • Improved economic stability • Less regulatory need • Higher productivity • Meet crisis points

Co-operatives and Public Policy Why Co-ops are Good Public Policy • Respond to Emerging Crisis – Need over Greed • Not casino capital nor foreclosure happy • Food – need focus • Energy – local and regional economies • Community green focus • Rural builders • Income distributors

Co-operatives and Public Policy Guiding Principles of Good Co-operative Public Policy • Value Co-op alternative • Increase co-op presence as a policy goal • development • conversion • Equitable not equal – housing/labour law/taxation • Encourage co-operative capital development • Challenge co-ops to meet social and economic needs • Co-op driven regulation based on co-operative problems

Co-operatives and Public Policy Guiding Principles of Good Co-operative Public Policy • Competition Act protection of co-ops (and others) • Protect co-operative capital • Capital development incentives • Protect autonomy • Balanced education system • Remove barriers – banking, insurance

Co-operatives and Public Policy If Co-operators believe in themselves and the value of their alternative to the world They will demand public policy That makes the co-operative alternative A possibility for themselves and our Children and grandchildren

Co-operatives and Public Policy Thank you For Your Kind Attention

Co-operatives and Public Policy

Co-operatives and Public Policy Capitalism Works – For 20% 1996

Co-operatives and Public Policy Financial Post Forget oil, the new global crisis is food BMO strategist Donald Coxe warns credit crunch and soaring oil prices will pale in comparison to looming catastrophe. Alia McMullen, Monday, January 07, 2008

Co-operatives and Public Policy

Co-operatives and Public Policy Some Reading: Mill, John Stuart (1852) Principles of Political Economy, 3rd Edition (p. 772). Dahl, Robert, (1985) A Preface to Economic Democracy Porritt, Jonathan, (2009) Living within our means: Avoiding the ultimate recession, Forum for the Future, Overseas House London Homer-Dixon, Thomas (2007) The Upside of Down: Catastrophe, Creativity and the Renewal of Civilization, Random House, Toronto, Canada Soros, George (1997) The Capitalist Threat, Atlantic Monthly 279, No. 2 (February 1997) 45-58 Rubin, Jeff (2009) Why Your World is About to get a Whole Lot Smaller, Random Random House, Totonto, Canada Mitchell, Alanna (2009) Sea Sick: The Global Ocean in Crisis, McClelland and Strewart, Toronto

Co-operatives and Public Policy