“We unwittingly stand at the crossroads—should we go the way of capitalism and try to become individually rich as capitalists, or should we go the way of cooperatives and economic cooperation where we and our whole community could be rich together?” W.E.B. DuBois
Very few persons are familiar with the co-operative structure of business. As far back as 1844, the first co-operative society was formed in England by a group of 28 skilled and trade persons who came together to counter the unfair practices of large corporations and to benefit from the economies of scale that result from being a large grouping. In order to guide their co-operation in a manner consistent with integrity and fair business practices, they developed business principles that have survived to this day.
What did W.E.B. DuBois, Ella Baker. Harry Belafonte, Thurgood Marshall and Marcus Garvey have in common? They shared the view that economic cooperation using the cooperative structure is a way that communities can grow well, faster and together.
Co-operatives: History & Principles
The cooperative movement in Barbados became formally recognized with the passing of the Co-operative Societies Act in 1949. Since then, several groups of persons have recognized the benefits to be gained from working together to build wealth.
What is a Co-operative?
A co-operative is a group of people who work together for economic benefit. Cooperatives bring the idea of cooperation — working together — to the business world.
Cooperatives have a different ownership and investment structure than publicly traded corporations - they
return their profits to their owners or use them to improve their ability to meet owner needs.
A cooperative has the same needs as any other business for example, co-ops need sufficient financing, careful market analysis, strategic and comprehensive planning, and well-trained and competent personnel.
There are many types of co-ops. Producer co-ops provide goods or services to members who make products, such as farmers or artists whilst consumer co-ops provide goods or services used by members for personal consumption.
Ujamaa Cooperative Society Ltd. (“UCSL” or “The Co-op”) is Barbados’ first hybrid co-operative society comprising both consumers and producers. Both producers and consumers own, control and profit from the Co-op. In UCSL, both producers and consumers come together to pool their producing and buying power to benefit everyone.
Values
Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity.
Principles
There are some basic principles which most cooperatives adhere to. These principles are guidelines by which cooperatives put their values into practice.
1. Voluntary and Open Membership:
Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership without gender, social, racial, political or religious discrimination.
2. Democratic Member Control:
Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. Regardless of the number of shares held, members have equal voting rights (one member, one vote).
3. Member Economic Participation:
Members contribute equitably to, and democratically control, the capital of their cooperative. Members join by buying the minimum qualifying number of shares in the co-op. This equity helps provide the capital needed to start and run the co-op.
Members allocate surpluses (profits) to any or all of the following purposes: paying dividends to shareholders, strengthening their cooperative, setting aside reserves; rebates to members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
4. Autonomy and Independence:
Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
5. Education, Training and Information:
Cooperatives provide education and training for their members, elected representatives, managers, and employees, so they can contribute effectively to the development of their cooperatives. They inform the general public— particularly young people and opinion leaders — about the nature and benefits of cooperation.
6. Cooperation among Cooperatives:
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
7. Concern for Community:
Cooperatives work for the sustainable development of their communities through policies approved by their members.
In the new economy that emerges during and post-COVID-19, co-operation among producers and consumers will be critical in designing a roadmap towards building wealth in an equitable fashion, towards maximizing the return that consumers gain from their spending dollars and to ensure that our communities are able to grow and to thrive.
DuBois' question remains as relevant today as it was yesteryear: “We unwittingly stand at the crossroads—should we go the way of capitalism and try to become individually rich as capitalists, or should we go the way of cooperatives and economic cooperation where we and our whole community could be rich together?”
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