Comparative Analysis of Cooperatives in Spain, Bangladesh, and Canada

1. (A). Compare and contrast (1). Mondragon Corproacion Cooperativa Spain (2). Grameen Bank of Bangladesh (3). Evangeline Cooperatives Canada (4). Big Carrot Employees Cooperative Toronto (5). Mondragon Bookstore and Coffeehouse Employees Cooperative Winnipeg ,Canada. and (B). Possibility of massive expansion of mini-cooperatives in Canada Dr. Kazi Abdur Rouf Social Economy Centre University of Toronto To be Presented 12th Annual Dean’s Graduate Student Research Conference March 22-23, 2012 Ontario Institute for Studies in Education (OISE)

2. Objectives of the Study To compare and contrast The Evangeline Cooperatives in Canada, The Big Carrot in Toronto, The Mondragon Bookstore and Coffeehouse employees cooperative in Winnipeg, The Mondragon in Spain, and The group based microcredit Grameen Bank in Bangladesh (2) To examine what they have in common, what makes them work in their own settings (3) To explore the possibility of forming mini-cooperatives among underprivileged people/immigrants in their neighborhoods in Canada

3. Concept: Cooperatives Cooperative is an autonomous association of persons united voluntarily to meet common economic, social and cultural needs These cooperatives are working at the grassroots level with the idea of community development They are an alternative to market-based individualized capitalism and they promote community development. They are not charities, rather cooperative social enterprises They are all alternatives to profit-making-businesses /corporations (PMB).

4. Basic Principles of Cooperatives All these cooperatives exercise their autonomy and independence in their program operations, have democratic accountability and follow the seven principles of cooperatives which are: 1. Voluntary and open membership 2. Democratic member control 3. Member economic participation 4. Autonomy and independence 5. Education, training and information 6. Co-operation among co-operatives and 7. Concern of community (International Co-operative Alliances; ICA).

5. Advantages of Cooperatives Cooperartives follow democratic decision-making processes Share economic and social missions with local people Not fully depend on public funding/government grants and subsidies Contribute to local living economies Promote long-term sustainable development Promote employment Promote networking, collectivity, solidarity/integrity in community Reduce poverty.

6. History of Cooperatives in Canada, Spain and Bangladesh Father Jimmy Tompkins and Moses Coady initiated the Evangeline Cooperatives: Antigonish Movement in Nova Scotia in 1940 They promoted and inspired local social cooperative enterprises in Canada However, farmers mini cooperatives, growers mini cooperatives are struggling To flourish, they need to adapt to the contemporary socio-economic and situation. Big Carrot in Toronto Mondragon Bookstore and Coffeehouse employees cooperative in Winnipeg None of these cooperatives used government funding.

7. Mondragon Spain Don Jose Maria Basque initiated Mondragon through organizing a technical school without government sponsorship in 1956. Mondragon employee cooperative flourished, expanded < 1 million members Declared 0 unemployment rate in the Basque region in 2011. All work in team spirit Believe in human capacities, creativity instead of treating human beings as a unit of labor

8. Bangladesh Context Cooperative bank, village aid had been worked in Indo-Pak continent (1857-1960) In 1950, the Didar Sambay Samitti was formed by nine poor day laborers through their weekly savings It has 50 Tractors and trailers , ten Brickfields, five poultry farms , four dairy farms, ten lath machines Fifteen mini garments factories renting 200 shops 5000 people employed through this cooperative In 1965, the Government of Pakistan and Bangladesh replicated this model all over Pakistan and Bangladesh However, bureaucracy and top down management damages cooperatives in Bangladesh

9. Group-based mini cooperatives in Bangladesh Grameen Bank group-based micro-lending program innovation has been working well in Bangladesh since 1980 BRAC cluster based informal schooling program Hundreds of micro-financing institutions have millions mini cooperatives serving credit to the poor MFIs serving 33 million poor people in Bangladesh Poverty rate has come down 30% from the 76% that existed in 1970s Contributing to empowering disadvantaged women, facilitating networking and solidarity among them

10. Comparison Mondragon Corporacion Cooperativa (MCC), the Big Carrot and the Mondragon Bookstore and Coffeehouse in Winnipeg are more similar But different than the Grameen Bank and the Evangeline Cooperatives. They are social businesses cooperatives. MCC and the Big Carrot are both workers’ cooperatives, but the Grameen Bank and Evangeline are community-based open membership cooperatives The Big Carrot, the wage ratio is 3:1 between the highest and lowest paid

11. Comparison, continued-2 Mondragon and Evangeline both have links with credit unions for funding Mondragon promotes cooperative paid employment and provides facilities to its employees Whereas Grameen Bank promotes self-employment in Bangladesh Mondragon workers elect a Board of Directors through a General Assembly.

12. Why mini-cooperatives are important in Canada Today economic power and wealth is increasingly concentrated within a small number of multinational corporations Mass people are suffering from economic, social and environmental justice Disparities between rich and poor widening, exploitations increasing Unemployment, poverty and environmental crises To counter this hegemonic power, it is vital to create an alternative Social enterprise cooperatives play an active role in socio-economic development

13. Importance of mini-cooperatives in Canada continued-2 Mini-cooperatives are easy to form, to run and to manage Drives economic forces and social solidarity Less time consuming to create Have social, economic, environmental benefits to the masses Address the issues of poverty Community ultimately impacted Promote social economy in the country

14. Mini cooperatives rare in Canada Neighborhoods mini cooperatives rare in Canada. Mini cooperatives can provide multiple services: Childcare services, funeral services, senior personal care services Community heath care services, manufacture herbal medicines Produce vegetables, fruits and supply food to seniors Catering services Mini poultry farming, community gardening, Manage municipal parks ,recreational and beautification services

15. Mini Cooperatives, continued-2 Construction works, interior decoration Run coaching centers, ESL services Run garments and clothing businesses, run small businesses Inner-city and intercity transportation services, taxi services Drug reduction services, legal aid services Recycling businesses, wastage management services, furniture repairing and moving services Sports, music and recreational services Other socio-economic and environmental services in the community

16. Advantages of Mini Cooperatives Mini cooperatives helpful in organizing the isolated disadvantaged single parents and other marginalized people in the neighborhoods Network, exchange life skills and create solidarity among disadvantaged immigrants Create a platform for the underprivileged people Develop social businesses within the locality Generate self employment in the community

17. Advantages of mini-cooperatives-continued-2 Increase cooperation and coordination among members Facilitate social return on investment Increase capacity to be empowered socially, economically and politically in Canada Diversify innovations and promote local culture and values

18. Proposal It is necessary to massively mobilize and encourage disadvantaged people to form mini cooperatives within their neighborhoods Motivate single mothers to be members of mini-cooperatives within their areas CCA could support and promote mini-cooperative initiatives Universities could initiate action research outreach mini cooperative schemes in Canada CURA can support this program

19. Proposal-continue 2 Mini-cooperative campaign can be started CCA could support to initiate the program, and to extend the program SSHRC could fund this research Social Economy Centre/Enterprise Toronto could facilitate the process This process should be free from government influence Link the mini-cooperatives members with income generating projects University students practicum could be in mini-cooperatives in Canada

20. Suggestions Questions/ Suggestions to improve/furnishing the mini-cooperatives in Canada. Thank you