Co-operatives and Public Policy Greetings from the Master

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 Collective Agenda and Decisions Equality of Persons not $$$ 1 Person – 1 Vote Equity or fairness Rights: Assembly Speech Democratic Essentials Education Information Liberty Community Balance Participation Open to All No Outside Control 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 Co-operative & Family & Mutual Business Government Departments & Agencies

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

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

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

Co-operatives and Public Policy Being Clear About the Co-op Difference The four pillars of co-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 Often unstable & inefficient Vulnerable to speculation Problems with unfettered markets Basic needs often unmet

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

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” Us But some people live on $2 a day? Us

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

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

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Co-operatives and Public Policy

Co-operatives and Public Policy Some Reading: Mill, John Stuart (1852) Principles of Political Economy, 3 rd 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 House, Totonto, Canada Mitchell, Alanna (2009) Sea Sick: The Global Ocean in Crisis, Mc. Clelland Strewart, Toronto