A CENTURY OF
VICTORIA’S CONSUMER CO-OPERATIVES
THE
CO-OPERATIVE FEDERALIST ECONOMIC MODEL, AN HISTORY OF ITS PRACTICE IN VICTORIA,
AND ITS PRACTICAL CRITIQUE OF THE MARXIAN ORTHODOXY ON THE ROLES OF PRODUCTION,
THE STATE, AND MORALITY IN SOCIALISM.
By Andrew (Andrius Jonas)
Sadauskas.
This thesis is submitted as a partial fulfilment of
the requirements for the degree of Bachelor of Arts (Hons.)
Politics Program
School of
Social Sciences
La Trobe University
Bundoora
October, 2006.
STATEMENT OF AUTHORSHIP
This thesis is my own work containing, to the best of my knowledge and
belief, no material published or written by another person except as referred to
in the text.
Signed:
............................................................. Date: ..... /
..... / 2006.
Andrew (Andrius Jonas) Sadauskas
RESEARCH ETHICS
APPROVAL
For this thesis, entitled “A Century of Victoria’s Consumer
Co-operatives: The Co-operative Federalist Economic Model, an History of its
Practice in Victoria, and its Practical Critique of the Marxian Orthodoxy on the
Roles of Production, the State, and Morality in Socialism,” submitted
for the degree of Bachelor of Arts (Hons.), none of the research undertaken
required the approval of a University Ethics Committee,
Signed:
............................................................. Date: ..... /
..... / 2006.
Andrew (Andrius Jonas) Sadauskas
ACKNOWLEDGEMENTS
Before I proceed, I would like to acknowledge my debt of gratitude to a
number of people whose support has been essential in creating the thesis that
you are about to read. Firstly, I would like to extend my sincerest gratitude to
my supervisor, Dr. Sanjay Seth, whose feedback, suggestions, and expertise have
been invaluable over the past year. Secondly, I would like to thank my family
and friends, without whose support, understanding, and patience I could not have
completed this work. Thirdly, I would like to thank the staff of the Politics
Department at LaTrobe University, and my lecturers both this year, and in
previous years. In particular, I would like to thank Dr. Gwenda Tavan, for
organising the Politics Honours programme; as well as Dr. Robert Manne, Dr.
Rowan Ireland, Dr. Beryl Langer, and Dr. Joel S. Kahn, for organising my
subjects in first semester. Finally, while Co-operative Studies (unfortunately)
remains a niche field in Australia, Australia’s Co-operative theorists and
researchers - as well as Victoria’s Co-operative Movement - are second to none
in their willingness to assist in any way they can. In this regard, I would like
to thank the Co-operative Federation of Victoria’s David Griffiths for taking
time out of his busy schedule to have a chat about Victoria’s Co-operatives at
the start of the year, as well as Dr. Race Mathews and Dr. Mark Lyon, who were
more than willing to answer any questions I could e-mail them.
CONTENTS
|
ABSTRACT AND WORD COUNT |
iii |
|
GLOSSARY / ABBREVIATIONS |
iv |
|
INTRODUCTION |
1 |
|
CHAPTER I: PRODUCTION, THE STATE, AND MORALITY IN BRITISH
CO-OPERATION |
6 |
|
CHAPTER II: KEY EVENTS DURING A CENTURY OF VICTORIAN
CO-OPERATION: PRODUCTION, THE STATE, MORALITY, AND THE PRACTICE OF
VICTORIAN CO-OPERATION (1870 - 1970) |
19 |
|
CHAPTER III: CO-OPERATIVES AND THE CAIN GOVERNMENT: THREE
CO-OPERATIVE POLICY APPROACHES |
32 |
|
CONCLUSIONS |
46 |
|
APPENDIX A: THE ORIGINAL ROCHDALE PRINCIPLES |
54 |
|
APPENDIX B: THE CO-OPERATIVE PRINCIPLES (1966 ICA REVISION) |
55 |
|
APPENDIX C: THE CURRENT CO-OPERATIVE PRINCIPLES (1995 ICA REVISION) |
56 |
|
BIBLIOGRAPHY |
58 |
ABSTRACT AND WORD
COUNT
On this side of the Russian Revolution, when most people think of
‘Socialism,’ they think of Marxism. Yet socialism organised through Consumer
Co-operatives - as the experience of the English CWS demonstrates - has been
long established as a viable alternative to both corporate Capitalism and
Marxism. Unfortunately, the radical possibilities of organising enterprises as
Consumer Co-operatives has been all too often forgotten, in the face of the
prominence of Marxism. Marx and Engels condemned what they called ‘utopian
socialism’ on various grounds, including production, the State, and morality
in socialism. The seeming success of Marxian socialism in 1917 seemed to many to
confirm that it was ‘scientific’, while other socialisms were
‘utopian,’ and nothing more than a prelude to Marxism. The dual purpose
of this thesis is, firstly, to retrieve the history of the Co-operative movement
- both its development in Britain, and its experience in Victoria - and,
secondly, to demonstrate how the Co-operative challenge to these three points of
Marxian orthodoxy - far from being reasons to dismiss the movement - are
precisely the reasons why they are so important to us
today.
Word Count: 14, 805
GLOSSARY AND
ABBREVIATIONS
Agricultural Producers Co-operative: A type of Co-operative, in
which the ‘users’ are ‘those who supply agricultural inputs to the
Co-operative.’ Membership to such Co-operatives is thus restricted to
‘those who supply agricultural inputs to the Co-operative.’ Such
Co-operatives are not a focus of this thesis. Such Co-operatives have a long
history in Victoria, but are not a focus of this thesis. INTRODUCTION
ASL: See
Australian Socialists League
Australian Socialists League:
According to a Ministerial Advisory Committee on Co-operation (MACC) report from
the 1980s, "A forerunner to the Australian Labor Party, the Australian
Socialists League, adopted as its objective in the 1890s the Owenite dream of
establishing 'a co-operative commonwealth founded on the collective ownership of
the land and means of production, distribution and exchange'."1 Discussed in greater depth in chapter
2.
Bureaucratic Paradigm: The logic commonly used in hierarchal
organisations (for instance within Corporations, the State, and the Military).
It has been defined by Co-operative theorist John G. Craig as
follows:
“Organizations have been premised on the bureaucratic logic for
most of the past 200 years. Management in a bureaucracy assumes that
organizations have narrow goals, that they are hierarchically organized with
external controls through supervisors and specialist staff, they have
complicated communication channels which are premised on a hierarchical
arrangement... The logic of objectivity and linear causality are central in how
organizations are thought to work best and how managers try to make them
work.”2
CDP: See
Co-operative Development Program
CFV: See Co-operative
Federation of Victoria
Community Advancement Society: A type
of Co-operative - usually a Consumer Co-operative - which produces
‘social services.’
Comprehensive Communities: A commune.
According to John G. Craig:
"Comprehensive co-operation involves people
co-operating with each other on a day to day basis. They participate in common
decisions, and from this process a sense of community can emerge. As a result,
co-operation may become a way of life... The kvutza and kibbutzim in Israel are
the best known examples of this kind of arrangement."3
Consumer Co-operative: A type of
Co-operative in which the ‘users’ are ‘the end users - or consumers -
of the goods and services produced by the Co-operative.’ Membership to such
Co-operatives is thus restricted to ‘the end users - or consumers - of the
goods and services produced by the Co-operative.’ Such Co-operatives, with
the exception of Housing Societies and Credit Unions, are the focus of this
thesis.
Co-operative: A class of collective organisations, defined
by Paul Lambart as "an enterprise formed and directed by an association of
users, applying within itself the rules of democracy, and directly intended to
serve both its own [user] members and the community as a whole;"4 in the context of this thesis, Consumer
Co-operatives are of particular interest.
Co-operative
Commonwealth: An economy in which Co-operatives are the predominant, or
alternatively sole, model of enterprise. As I note in Chapter 1, there is some
debate about whether this would be best achieved through the growth of the
Co-operative Sector by itself (as advocated by Charles Gide, for example), or
through State power (as advocated by G.D.H. Cole, for
example).
Co-operative Development Program: A paternalistic
Victorian Ministry of Employment and Training macroeconomic policy programme,
run during the Hamer and Cain Governments, to develop State-sponsored Workers
Co-operatives as a means of supply-side job creation (see also:
Bureaucratic paradigm). Discussed in Chapter 3.
Co-operative
Federalism: Both a Co-operative model, and a school of thought about how
Co-operatives should ideally be organised in order to control industry.
This economic model advocates Consumer Co-operatives federating together
through Co-operative Wholesale Societies to organise production, with
Co-operative Unions to collectively represent their common political
interests.
Co-operative Federation of Victoria: Victoria’s current
Co-operative Union. It is a Secondary Co-operative which provides
its members with a range of services, including education about Co-operatives,
assistance in forming Co-operatives, and maintenance of the
Australia.coop internet portal.
Co-operative Logic: The
logic in use in Co-operatives, and within the Co-operative
Federalist model, instead of the Bureaucratic Paradigm. According to
Co-operative theorist John G. Craig:
“The logic of the co-operative
activity of federating together is not the logic of hierarchy as assumed in the
bureaucratic paradigm but rather the logic of heterarchy. Groups within a
community co-operate, provide themselves with goods and services, and they work
together through a federated structure with other groups in other communities.
The bureaucratic paradigm [assumes] a hierarchy of external controls with a
strong centre; but the logic of co-operation is heterarchy, where there are
internal controls and self regulating groups co-operating with the centre but
not dominated by it... [and thus] The centre is controlled by the periphery and
not the reverse, as is assumed in the logic of hierarchy.”5
Co-operative Union: A form of
Secondary Co-operative whose purpose is to represent the common political
interests of its member societies and, in the words of Charles Gide, “to develop
the spirit of solidarity among societies and... in a word, to exercise the
functions of a government whose authority, it is needless to say, is purely
moral.”6
Co-operative Wholesale
Society: A form of Secondary Co-operative whose role is to
collectively organise “bulk purchases, and, if possible, organise
production”7 on behalf of its member
societies.
CWS: See Co-operative Wholesale
Society
English CWS: A large Co-operative Wholesale
Society in England, the predecessor of the (still existing) Co-operative
Group. The Co-operative Group’s website is online at
http://www.co-op.co.uk/
Fair Price: As discussed in Chapter I,
Fair Price is an economic doctrine created by Robert Owen and elaborated on by
Charles Gide, Beatrice Webb, Paul Lambart, and the Rochdale Pioneers. According
to this doctrine, the sale price of any given product should be its prime cost,
where that prime cost allows each worker who created the product just
compensation for their labour. Under capitalism, consumers are exploited if a
product’s sale price rises above its fair price, while workers are exploited if
their wages fall below fair price. Consumer Co-operatives, which
arbitrate wages with Trade Unions and operate under the Rochdale
Principles, trade at Fair Price.
Federal
Co-operatives: See Secondary Co-operatives.
Food
Co-operative: A type of Co-operative - usually a Consumer
Co-operative - which predominantly retails food products.
ICA: See International Co-operative
Alliance
International Co-operative Alliance: An international
Co-operative Union, whose membership constitutes of Co-operative Unions and
Co-operative Wholesale Societies from various countries. Still existing today,
its website is online at http://www.ica.coop
MACC: See
Ministerial Advisory Committee on Co-operation
Ministerial
Advisory Committee on Co-operation: A committee in the Ministry of Housing
during the Cain Government, whose purpose was to advise on "Policy matters
relating to the drafting of new co-operative legislation; and policy development
relating to the co-operative movement generally,"8 and “to review the development of the co-operative
movement in Victoria and to provide input towards new directions for the
co-operative sector.”9 Discussed in Chapter
3.
Modern Socialists: An early Australian Socialist
movement, which advocated Co-operative Federalism in the Australian
Socialists League (on the grounds that it fulfilled the French Revolutionary
trilogy of liberty, equality, and fraternity).
National
Catholic Rural Movement: A progressive Australian Catholic group which
advocated building rural community settlements in which enterprises are
organised as Co-operatives. Such settlements “should consist of a number
of houses and shops in a small township, with a ring of farms surrounding
them... in which each farmer owns the soil he [sic] tills.”10 Such plans would be implemented in the (still
existing) Maryknoll Community Settlement in Gippsland, Victoria (between Tyrong
North and Nar-Nar-Goon North).11 Discussed
in Chapter 2.
NCRM: See National Catholic Rural
Movement
New Moral World: The utopian aim of early
Socialist Robert Owen, in which all people reside in self-governing
Villages of Co-operation which trade with each other at prime
cost.
Producers Co-operative: A type of Co-operative in which the
‘users’ are ‘those who supply inputs - usually agricultural inputs -
to the Co-operative.’ Membership to such Co-operatives is thus restricted to
‘those who supply inputs - usually agricultural inputs - to the
Co-operative.’ Can, alternatively, mean a Workers Co-operative. Such
Co-operatives are not a focus of this thesis.
Rochdale Principles:
A set of moral guidelines, introduced by the Rochdale Pioneers, which
seek:
“...in industry to displace a low moral motive - profit - by a high
one - community service - its social programme and its moral aim are its life
blood, the principal cause of its vitality and its growth.”12
The original Rochdale Principles are
listed in Appendix A, while the 1966 and 1995 versions of the Rochdale
Principles - as updated by the International Co-operative Alliance, are
attached in Appendix B and C respectively.
Secondary
Co-operatives: A Co-operative in which all the members are, in turn,
Co-operatives.
Sector Association: A Co-operative Union in
which all member Co-operatives come from a particular type of Co-operative (for
example, in a Food Co-operative Sector Association, all member
Co-operatives are Food Co-operatives).
Segmental
Co-operative: According to John G. Craig, unlike in a Comprehensive
Community (such as an Owenite Village of Co-operation, a commune, or
a kibbutz), in a segmental Co-operative “Members do not interact as a community
involved in a wide variety of daily activities; rather, they co-operate only in
one limited area of their lives - for example, in the procurement of
food.”13
Socialism: For the
purposes of this thesis, the term Socialism will be used in the context
of Paul Lambart’s definition of it, the "desire for the fullest possible
development of man's [sic] highest faculties... through society and a collective
organization,"14 which "rejects individual
property, not absolutely, but as a source of income and even more, as a source
of power."15
In turn, for
Co-operators building on the Owenite view of human nature, the “fullest possible
development of man's [sic] highest faculties"16 needs to take into consideration
that:
“Men are, and ever will be, what they are and shall be made in
infancy and childhood. The apparent exceptions to this law are the effects of...
subsequent impressions, arising from the new circumstances in which the
individuals... have been placed. ...it is known, that man is ‘the creature of
circumstances’, and that he really is, at every moment of his existence,
precisely what the circumstances in which he has been placed, combined with his
natural qualities, make him.”17
Socialism outside the State: Political ideologies and theories
which, in Paul Lambart’s definition of ‘Socialism’, would read the term
‘collective organisation’ as meaning ‘collective organisation through
means other than, or not necessarily involving, State ownership.’ In the
context of this thesis, ‘collective organisation’ will generally mean
‘collective ownership through Consumer Co-operatives, ideally linked through
Federal structures.’
State - based Socialism: Political
ideologies and theories which, in Paul Lambart’s definition of
‘Socialism’, would read the term ‘collective organisation’ as
meaning ‘collective organisation through State ownership.’ In the context
of this thesis, the term will predominantly be used to refer to Marxism (or
Social Democracy).
The Brotherhood: See The Brotherhood of St.
Laurence
The Brotherhood of St. Laurence: An Australian
charity, based in Fitzroy, linked to the Anglican Church.
The
Pioneers: See The Rochdale Pioneers
Three Principles /
Three Tenets of Marxism: The three principles are listed as
follows:
1) PRODUCTION: Marx and Engels’ materialist conception of
history places production as its primary concern, and rejected earlier
socialisms which did not share these concerns;18 from this perspective, consumption is seen as
derivative (and, thus, less important).19
2) THE STATE: The socialism of
Marx and Engels rejected socialism outside the State, and is contingent on the
working class seizing state power, and the State wrestling all capital from the
bourgeoisie.20 Yet Marxian thought cares
not to delve too deeply into what sort of society such a Dictatorship of the
Proletariat, or its successor, Communism, will produce.21
3) MORALITY: While Marxism is
clearly built upon a morality of emancipation, in which that which
promotes proletarian revolution is held to be virtuous, Marx was reluctant to
engage in the discourse of morality, was dismissive of the notion of a universal
moral code, and was dismissive of religion (the opiate of the masses) in
particular.22
Victorian Food
Co-operative Study Group: A Support Group for Food Co-operatives (founded by
The Brotherhood of St. Laurence), which received funding, under the Cain
Government, to undertake a study into Victorian food
co-operatives.
VFCSG: See Victorian Food Co-operative Study
Group
Villages of Co-operation: Completely rational
Comprehensive Communities, or communes, proposed by Robert Owen.
Workers Co-operative: A type of Co-operative in which, in Paul
Lambart’s definition of ‘Co-operative’, the term ‘[user] members’
means ‘those who are employed by the Co-operative.’ Membership is thus
restricted to ‘those who are employed by the Co-operative.’ Such
Co-operatives are not a focus of this thesis.
YCW: See Young
Christian Workers
Young Christian Workers: A progressive
Catholic movement which had been inspired both by the Antigosh Movement in Nova
Scotia and the Rochdale Principles, believing that “People can build a middle
course, upholding the rights of the individual and serving the common good.
Co-operatives give them the means of building.”23 Discussed in Chapter 2.
On this side of the Russian Revolution, when most people think of
‘Socialism,’ they think of Marxism. Yet socialism organised through Consumer
Co-operatives - as the experience of the English CWS demonstrates - has been
long established as a viable alternative to both corporate Capitalism and
Marxism. Unfortunately, the radical possibilities of organising Socialism
through Consumer Co-operatives has been all too often forgotten, in the face of
the prominence of Marxism. Marx and Engels condemned what they called
‘utopian socialism’ on various grounds, including production, the State,
and morality in socialism. The seeming success of Marxian socialism in 1917
seemed to many to confirm that it was ‘scientific’, while other
socialisms were ‘utopian,’ and nothing more than a prelude to Marxism.
The dual purpose of this thesis is, firstly, to retrieve the history of the
Co-operative movement - both its development in Britain, and the key events of
its experience in Victoria - and, secondly, to demonstrate how the Co-operative
challenge to these three points of Marxian orthodoxy - far from being reasons to
dismiss the movement - are precisely the reasons why they are so important to us
today.
Before proceeding further, I would like to clarify what is meant
by my statement that ‘Socialism organised through Consumer Co-operatives is an
alternative to Marxism.’ In using the term ‘socialism,’ I am referring to
economist Paul Lambart’s inclusive definition of it, as the "desire for the
fullest possible development of man's [sic] highest faculties... through society
and a collective organization,"24 which
"rejects individual property, not absolutely, but as a source of income and even
more, as a source of power."25 In the
context of this definition, ‘collective organization’ is all too often (and
erroneously) interpreted as necessarily meaning ‘as advocated by Marx.’ Yet to
take such an interpretation is to ignore the radical potential of ‘collective
organization’ through a Consumer Co-operative; "an enterprise formed and
directed by an association of users, applying within itself the rules of
democracy, and directly intended to serve both its own [user] members and the
community as a whole,"26 in which the ‘user
members’ are those people who ‘consume’ the Co-operative’s goods or services. In
turn, the Co-operative movement is more than a collection of such institutions,
in that it can form the basis for a socialist (in the sense described above)
economic model known as ‘Co-operative Federalism’ (which I will discuss
in greater depth in Chapter I), which draws on the work of philosophers such as
Robert Owen, the Rochdale Pioneers, Beatrice Webb, and Charles Gide.
And
what makes Co-operative Federalist economic model stand out over the countless
utopian socialist experiments and visions which have come and gone over the last
one and a half centuries is that, far from being a mere 'utopian vision' of how
things could or should be, it has successfully been used to organise production,
and on a large scale. Consider, for instance, that by the 1920s the English CWS
(by then counting 1,200 societies amongst its members) owned 70 factories
(including a tallow factory in Australia), employed 21,000 people, grew
strawberries and tomatoes on its 18,000 acres of farmland, and even owned tea
plantations in Sri Lanka and India.27
Consider that in 1958 - over a century after the Rochdale Pioneers - the English
CWS was Britain’s largest non-nationalised business, and was the largest
importer of Australian primary produce (its imports including one-third of
Australia’s entire wheat crop); supplied mostly through the Westralian Farmers
Co-op.28 And, after overcoming a number of
challenges,29 the English CWS has survived
into the new millennium, acquiring the Alldays convenience store chain (with its
10,000 employees) for £131m in 2002,30 and
is active in a number of industries, including food, pharmacy, distribution,
property, travel, insurance, banking, and farming. Thus, while Soviet Socialism
is a dead movement, the English CWS (now known as The Co-operative Group)
is a dead movement in a very different sense: in 2005, it carried out 14% of all
British Funerals.31
As this thesis
will explore, this tradition of Co-operative Federalism diverges from Marxism on
three key points: the roles of production, the State, and morality in socialism.
Firstly, Marx and Engels’ materialist conception of history places production as
its primary concern, and rejected earlier socialisms which did not share these
concerns;32 from this perspective,
consumption is seen as derivative (and, thus, less important).33 Secondly, the socialism of Marx and Engels
rejected socialism outside the State, and is contingent on the working class
seizing State power (with the State subsequently wresting all capital from the
bourgeoisie).34 Yet Marxian thought cares
not to delve too deeply into what sort of society such a Dictatorship of the
Proletariat, or its successor, Communism, will produce.35 And thirdly, Pre-Marxian socialisms, and
contemporary non-Marxian socialisms, were rejected by Marx and Engels on the
grounds of their moral critiques.36 While
Marxism is clearly built upon a morality of emancipation (in which that
which promotes proletarian revolution is held to be virtuous), Marx was
reluctant to engage in the discourse of morality, was disagreed with the notion
of a universal moral code, and was dismissive of religion (the opiate of the
masses) in particular.37 Related to these
two points, there is little emphasis on the transformation of people in the
course of struggle against capitalism; the core idea is that after the
revolution the shift in material conditions will cause people to change.38 These three tenets of Marxism, and their
implicit (or explicit) rejections, were presented as being to Marxism’s credit
by Engels. Engels, in turn, dismissed any socialism which did not uphold these
three points as being ‘utopian.’
The Co-operative movement is alive and
well today, in Victoria. The first purpose of this thesis is to retrieve the
history of the Co-operative movement (including both its British roots, and the
key events in its practice in Victoria). The second purpose of this thesis is to
examine how the Co-operative movement’s challenge of these three points of
Marxian orthodoxy (both through its theoretical framework of Co-operative
Federalism, and its practice), far from being a reason to dismiss it, is
precisely the reason why it is so important to us today.
In Chapter 1, I
will provide a general outline and background of the Co-operative movement in
Britain, examining how it managed to construct a socialism challenging these
three key points of Marxian orthodoxy. In Chapter 2, we will examine how key
events in the practice of Victorian Co-operation from the 1870s to the 1970s
have challenged these three key points of Marxian orthodoxy. These key events
include its emergence in the context of Colonial Victoria and subsequent
adaptation to rural conditions, the battles of Modern Socialism, local attempts
to federate, the impact of the Russian Revolution, the emergence of Christian
co-operation, and how the movement has adapted to modern Australia.
A
key question raised in this discussion is what the role of the State is in
socialism outside the public sector, as advocated by Co-operative Federalism.
Given this, Chapter 3 will explore three different programmes representing
approaches to co-operative policy (under Hamer and Cain) during the 1980s - the
Co-operative Development Program, Ministerial Advisory Committee on
Co-operation, and Victorian Food Co-operative Study Group - which represent
three different approaches to Co-operative policy (and its development). What
was their experience and how compatible were they with the social philosophy of
co-operation?
LIMITATIONS AND SCOPE
Before proceeding, I
would like to point out the limits on the scope of discussion in this thesis.
Firstly, this thesis will focus on Consumer Co-operatives (where the ‘users’ are
defined as the end users of the products of the co-operative, in particular
retail / community advancement co-operatives), although as Housing and Credit
Unions have unique characteristics they will not be a focus of this thesis.
Secondly, this thesis is concerned with Co-operative Federalism and will not
focus on competing schools of thought on Co-operatives. Thirdly, while there
are, or have been, strong traditions of Co-operation in many parts of the world,
this thesis is particularly concerned with the movement’s early development in
Great Britain, and the experience of Co-operatives in Victoria. Fourth, the
primary concern is how Co-operative Federalism, in theory and practice, has
diverged from Marxian Socialism on the three key points of the role of
production, the role of the State, and the role of morality in socialism.
Finally, this discussion is intended as a general overview of the movement
rather than an in-depth examination of any individual co-operative.
CHAPTER I: PRODUCTION, THE STATE, AND
MORALITY IN BRITISH CO-OPERATION
To understand the Co-operative movement in Victoria, we must first
understand its history in Britain. Our aim in doing so is also to explore the
multitude of ways through which the British Co-operative movement had created a
socialism which has challenged the Marxian orthodoxy on the roles of production,
the State, and morality in socialism. As we will discover in this chapter, these
challenges manifest themselves in the Fair Price doctrine, the social
programme of Robert Owen and - later - the Rochdale Pioneers, the Rochdale
Principles, Co-operative Federalism, and the differences between a
Dictatorship of the Proletariat and a Co-operative Commonwealth as
an ultimate aim.
OWEN’S FAIR PRICE DOCTRINE: CONSUMPTION AND
PRODUCTION CRITIQUED.
Of the Pre-Rochdale socialists, the most
important was a Welsh Quaker named Robert Owen. In the post-Russian Revolution
world, it is often forgotten that, prior to the 1840s, "The word 'Socialist...
meant 'Owenite', and had hardly, in Great Britain, any other meaning."39 Owen had recognised that the squalor of the
English working class hindered, rather than helped, the British Economy, yet his
attempts to have his reforms legislated through Parliament failed,40 leading to his growing disillusionment with
reform through the State. In response to such setbacks, Owen developed both an
economic theory, and social critique, upon which he premised a programme for
radical reform. This resulting theory was, in a sense, the Apple Lisa of
Socialism: a series of theoretical ideas ahead of their time, yet often flawed
or implemented poorly.41
Unlike
Marx, Owen's economic theory - the 'Fair Price' doctrine - was concerned with
both production and consumption. Owen’s doctrine, like Marx’s, was premised on
the idea "That the natural standard of value is, on principle, human labour, or
the combined manual and mental powers of men called into action."42 Owen noted that such a standard of value was in
place in bartering, where "The genuine principle of barter was, to exchange the
supposed prime cost of, or value of labour in, one article, against the prime
cost of, or amount of labour contained in any other article."43 Given that barter involves two or more
individuals equitably exchanging goods they have produced for goods of equal
value they wish to consume, Owen’s economic analysis begins examining
consumption, as well as production. As economic transactions became more complex
(particularly with the introduction of the gold standard), the equitable
exchange of barter “was superseded by [monetised] commerce, [in Marxian terms,
Capitalism,] the principle of which is, to produce or procure every article at
the lowest, and to obtain for it, in exchange, the highest amount
of labour;”44 the margin between the total
labour cost of a product and its sale price price amounting to profits taken
through such deception along the way. Owen (as Marx would do later) recognised
that there were benefits to commerce, but these were outweighed by the downsides
of profit-taking (including ignorance, individual greed, fraud, and deceit).
Based on his advocacy of barter, Owen differs from Marx by suggesting that
commerce should be replaced by a system of "exchanging all articles at their
[‘Fair Price’] prime cost... and by permitting the exchange through a convenient
medium to represent this value,"45 where
the Fair Price of a given product (where the term ’product’ includes both goods
and services) is its prime cost where wages take into account that "the labourer
who produces [said product] is justly entitled to his [sic] fair proportion...
calculated in reference to the amount of wealth, in the necessaries [sic] and
comforts of life."46
Owen’s
economic analysis has been expanded upon by later theorists such as Charles Gide
and Paul Lambart. Both Gide and Lambart noted that the logic of Owen’s Fair
Price doctrine suggests that, under capitalism, it is possible for workers (as
producers) to be exploited, where the total labour cost for a given product
falls below that item’s fair price. So too, however, can workers (as the end
users of a product; its consumers) be exploited, where the sale price of a given
product rises above its fair price. And, where the fair price falls in the
profit margin between wage costs and the finished product’s sale price, the
worker is exploited both as a consumer and as a producer. Thus, in
contrast to Marx, Fair Price analysis is interested in both consumption and
production, rather than viewing consumption as a by-product of production (as
Marx had done).47
Owen’s economic
analysis was also expanded upon by the early Fabian and feminist pioneer
Beatrice Potter (later Webb), who suggested that a coalition between Consumer
Co-operatives and Trade Unions would be desirable. Rather than having a fixed,
universal ‘fair pay’ rate for all jobs as Owen had suggested (a noble aim in
theory but, given that this would have meant that an hour of hard manual labour
would be rewarded with equal wages to an hour’s ‘labour’ attending a conference
in Vanuatu, one which has failed to carry across into practice), Webb suggested
Trade Unions should fix fair wages with Consumer Co-operatives, as per Owen’s
Fair Price doctrine,48 ensuring workers are
paid fair wages. Webb recognised that beyond Co-operators and Trade Unionists
having a common interest in protecting their common constituents from
exploitation through the profit motive, Unionists could use centralised
purchasing through Co-operatives to boycott Corporations which employ labour at
less than fair price, to break corporate monopolies which hurt the working class
(as both workers and consumers), and unite with co-operators in supporting
legislation protecting against unfair wages and poor quality goods.49
OWEN AND THE STATE
To Owen, commerce was but one result of an
‘environment’ of liberal individualism and self interest. Thus, at the core of
Owen’s social critique was the view that:
“One of the most general
sources of error and evil to the world is the notion that infants, children, and
men [sic] are agents of a will formed by themselves and fashioned after their
own choice.”50
In contrast to
proponents of such individualistic beliefs, Owen believed of human nature - at
the core of the quest for the “fullest possible development of man's [sic]
highest faculties"51 - that:
“Men
are, and ever will be, what they are and shall be made in infancy and childhood.
The apparent exceptions to this law are the effects of... subsequent
impressions, arising from the new circumstances in which the individuals... have
been placed. ...it is known, that man is ‘the creature of circumstances’, and
that he really is, at every moment of his existence, precisely what the
circumstances in which he has been placed, combined with his natural qualities,
make him.”52
Thus, in preference to
the irrational system of individualism reinforced by punishment and
reward,53 Owen proposed a ‘New Moral
World.’54 Like Marx, Owen believed that a
new society would come about in a new social and economic environment. Unlike
Marx, however, the New Moral World of Owen would not be accomplished through
capturing State power, but rather was to be created by building a network of
kibbutz-like communes, known as Villages of Co-operation, “each
self governing in its own affairs and making up, in association with other
villages, such simple government as the world would ever need.”55 Thus, in contrast to the Marxian demand that
socialism involved the seizure of State power, Owen sought to build a socialist
world outside the State.
THE ROCHDALE PIONEERS: ESTABLISHING
SOCIALISM OUTSIDE THE STATE
Amongst the supporters of Owen’s
programme of socialism outside the state, and contemporary to Marx, were the
first modern co-operators: the 28 members56
of the Rochdale Equitable Pioneers Society. Many of its 28 members
(commonly known as the ‘Rochdale Pioneers’, or simply as ‘The Pioneers’) had
been weavers, and were spurred into action as a result of a failed strike at a
nearby mill.57 Shaped in an environment of
laissez-faire58, their course of
action (as Mark Lyons explains) had been to open a Co-operative store as the
first step in transforming the town of Rochdale into an Owenite village:
"for Howarth and his fellow Pioneers storekeeping was but a means - one
among a number of means - of forwarding the Co-operative ideal; and that ideal
was the formation of Co-operative Communities, or [Owenite] 'Villages of
Co-operation,' in which members could live together on their own land, work
together in their own factories and workshops, and escape from the ills of
competitive industrialism into a world - a 'New Moral World' of mutual help and
social equality and brotherhood."59
Given that many of the Pioneers were unemployed weavers, necessity and
pragmatism dictated transformative change under the existing economic order,
rather than waiting for a new economic order. They could not afford to build an
Owenite Village from scratch, so instead they hoped that their Toad Lane Store
would be the first step in transforming the town of Rochdale into an Owenite
village. As with Owen, the Rochdale Pioneers acted outside the State.
THE ROCHDALE PRINCIPLES: CO-OPERATIVE MORALITY FOR WORKERS (AS
PRODUCERS AND CONSUMERS)
Beyond being Owenites, many of the
Pioneers had also been active Corn Law Repealers, Factory Reformers, or
Chartists.60 Drawing on these pre-Marxian
socialisms, the Rochdale Pioneers devised a set of ethical principles - known as
the Rochdale Principles - under which (from its opening on December 21st, 1844)
they would operate their Toad Lane Store (the Principles are listed in full in
Appendix A). G.D.H. Cole notes, of the significance of these principles,
that:
"What the Rochdale Pioneers hit on, under [Charles] Howarth's
leadership, was not simply the idea of 'dividend on purchases', but a
combination of several ideas - none of them individually novel, but making up a
total that was essentially new."61
The Rochdale Principles can be read as being both an ethical code for
conducting an enterprise, as well as a ‘living critique’ of corporate
capitalism. Frank E. Pulsford noted that the core of the Pioneers’ critique - as
expressed in the Rochdale Principles - was essentially moral in
character:
“It [Co-operativism] seeks in industry to displace a low moral
motive - profit - by a high one - community service - its social programme and
its moral aim are its life blood, the principal cause of its vitality and its
growth.”62
These moral principles
seek to protect workers both as producers and consumers (rather than just
as producers, as Marx would do) by implementing Owen’s Fair Price doctrine.
Under corporate capitalism, the profit motive means maximising dividends, which
are paid in accordance to capital, regardless of use. However, implementing
Owen's 'Fair Price' doctrine simply by charging prime cost upfront has some
problems (for example, with fixed costs, there is no way of knowing the cost per
unit until the number of units sold is known, and there may be unexpected or
unforeseeable costs). The Rochdale solution was to charge market price, and then
refund the difference between market price and fixed price (the refund being
called the ‘divvy’). As a result, consumers effectively pay prime cost while the
co-operative has some leeway for unforeseen (or unforeseeable) costs (Principle
4). Secondly, where interest is paid to member-users on shares in a co-operative
(as was the case in Rochdale), it is to be at a limited, fixed rate (perhaps at
the rate of inflation, or the in line with interest rates on savings accounts)
(Principle 3).63
In corporations,
wealthy capitalists can become shareholders, regardless of whether they use its
products or not, and ownership is vested in capital rather than use or
membership, while the fixed number of issued shares allows for speculation on
the stock exchange. In contrast, a co-operative’s ‘open membership’ means that
it can issue (or buy back) shares to (or from) any of its users at any time
(co-operative shares thus never cost more than face value). These user-members,
not capitalists, are both its owners and employ its labour, therefore control is
vested in use rather than capital (Principle 2). And where, in a corporation,
the number of votes is determined by the number of shares held, co-operatives
have one vote per member, regardless of the number of shares held (with votes
for women from the very first Rochdale co-operative64) (Principle 1).
The remaining Rochdale
Principles are essential to the moral community service nature of Co-operatives,
yet they would “distort” the profit motive of capitalism if they were compelled
on a corporation. These include education about co-operatives (Principle 7),
only selling pure and unadulterated goods (Principle 6), partisan-political, and
religious neutrality (Principle 8), and trading on a cash basis, rather than
accepting credit (Principle 5).65
CO-OPERATIVE FEDERALISM: SOCIALIST ECONOMICS WITHOUT THE STATE
Beyond the introduction of the Rochdale Principles, there was
another choice made by the Pioneers which would fundamentally shape the
movement. Unfortunately for Owen, attempts to establish Villages of Co-operation
at New Harmony (1825), Orbiston (1837), and Harmony Hall / Queenswood (1846) had
all been failures. Owen, it seems, had overestimated how rapidly ‘subsequent
impressions’ could overrule earlier socialisation. Being practical blue collar
workers, the moderate success of the Pioneers’ other ventures and this failure
of Owenism, coupled with the success of their Toad Lane store, led the Rochdale
Pioneers to abandon their Owenite community building ambitions:66
"...by 1854 the notion of founding
[Owenite] communities had faded definitely out of their minds. That phase was
over; the notion had been killed, except in the minds of a very few idealists,
by the failure first of Owenite and then of Chartist efforts at
community-making. The Pioneers had settled down to develop co-operation not
apart from the world as it was but in that world and subject to its limiting
conditions."67
This resulted in a
shift from comprehensive communities (such as the communes advocated by
Owen)68 to segmental co-operatives
(co-operative stores, for example) designed to provide its members with a given
product or social service.69 Meanwhile,
workers across England, and later overseas, had been inspired by the success of
the Rochdale Pioneers’ Co-operative Store, and sought to emulate its example.
Given this base, rather than aiming to vertically integrate a whole community
into an Owenite ‘Village of Co-operation’, the Pioneers chose instead to
horizontally link the Rochdale-model Co-operatives by forming Secondary
Co-operatives (i.e. Co-operatives in which all the members are, in turn,
Co-operatives, and are governed by the Rochdale Principles). As Charles Gide
points out, there are (broadly speaking) two kinds of Secondary Co-operatives:
Co-operative Unions, whose aim is “to develop the spirit of solidarity among
societies and... in a word, to exercise the functions of a government whose
authority, it is needless to say, is purely moral,”70 and Co-operative Wholesale Societies (or
‘CWSes’), whose role is to organise “bulk purchases, and, if possible, organise
production.”71 The first and best known
example of a wholesale society, the English Co-operative Wholesale Society (the
‘English CWS’), was established in 1864, followed in 1869 by the English
Co-operative Union. As CWSes are run under Rochdale Principles, every stage in
production pays a divi, all goods can be produced at Fair Price, and
‘heterarchial pyramids’ with power at the bottom are created. More importantly,
where standalone Co-operatives are a moral candle in the winds of Capitalism,
with Federal arrangements (like CWSes) Co-operatives have a socialist economic
model in their own right (Co-operative Federalism), which exists outside the
State.
There is a distinct logic to the Co-operative Federalist model,
as John G. Craig’s analysis points out:
“The logic of the co-operative
activity of federating together is not the logic of hierarchy as assumed in the
bureaucratic paradigm but rather the logic of heterarchy. Groups within a
community co-operate, provide themselves with goods and services, and they work
together through a federated structure with other groups in other communities.
The bureaucratic paradigm [assumes] a hierarchy of external controls with a
strong centre; but the logic of co-operation is heterarchy, where there are
internal controls and self regulating groups co-operating with the centre but
not dominated by it... [and thus] The centre is controlled by the periphery and
not the reverse, as is assumed in the logic of hierarchy.”72
What Craig meant in this passage by the
term ‘bureaucratic paradigm’ is explained as follows:
“Organizations have
been premised on the bureaucratic logic for most of the past 200 years.
Management in a bureaucracy assumes that organizations have narrow goals, that
they are hierarchically organized with external controls through supervisors and
specialist staff, they have complicated communication channels which are
premised on a hierarchical arrangement... The logic of objectivity and linear
causality are central in how organizations are thought to work best and how
managers try to make them work.”73
Craig also notes that the divide between the hierarchical - bureaucratic
paradigm (employed in the military, the State, and in the internal hierarchy of
many Corporations) and the heterarchial co-operative logic is difficult for
subsequent impressions to penetrate. Craig points out that “Co-operators have
had great difficulty in communicating their paradigm to people who are well
socialised within the bureaucratic tradition. It is difficult to create
understanding when one is asked to think about things in a different
way,”74 and as a result “To co-operators
the ideas are clear and simple. But this clarity is only within the co-operative
logic, not in bureaucratic logic.”75 It is
this paradigmatic difference between co-operative logic and bureaucratic logic
which distinguishes Co-operative Federalism from State
socialism.
DICTATORSHIP OF THE PROLETARIAT, AS OPPOSED TO THE
CO-OPERATIVE COMMONWEALTH: THE ROLE OF THE STATE IN SOCIALISM
Marx
largely remained quiet about what a socialist mode of production would look like
(aside from being chained to the socialist state),76 while Owen had dreamed up a fantastic plan for a
New Moral World which had failed the ‘acid test’ of reality. The Co-operator, in
contrast, already had a functional socialist economic model in Co-operative
Federalism, as well as the accompanying social relations and logic. If expanded
to the point where it became the dominant economic model in a given country,
what the world would witness would be a Co-operative Commonwealth (la Republique
Cooperative); a socialist mode of production that Charles Gide described as
follows:
"If we imagine the [Co-operative] Wholesale Society of
Manchester enormously grown until it absorbed all the manufacturing and
agricultural industry of England, owning all the means of production, and
elected by all the consumers (that is to say everyone) we shall get a view of
what a collectivist state might be, or, as the Germans call it, of a 'Social
Democracy'."77
Such a Co-operative
Commonwealth would have a democratically elected elite: managers are not there
because they own capital, but rather because they have the support of the users,
and given they are employed for wages, are thus themselves employees78 who can easily voted out under the ‘one member
one vote’ principle. Similarly, the difference between consumers (who are
themselves employees), and producers (and their managers) is not a question of
'class' but rather of a division of labour,79 and thus a Co-operative Commonwealth would
arguably be a class free society.
In order to achieve a Co-operative
Commonwealth, Gide argued that co-operatives should:
"use [their]
collective capital thus constituted [through CWSes] to erect factories, buy
land, and build houses, the [surpluses] from which will go into co-operative
funds, so that co-operation, like the snowball, will, little by little, swallow
up the profits which up to now have gone exclusively to those who possess
capital. It is not a question of expropriating the capital already in the hands
of capitalists, but one of forming new capital for the working classes."80
In Marxian terms, just as the capitalism
of the merchant had cast aside the Feudal lord, so too the Co-operative
Commonwealth of the Co-operator could, given the correct circumstances, cast
aside capitalism of the bourgeoisie as the dominant mode of
production.
To Co-operators, like G.D.H. Cole, seizing State power could
be a means to advance the decentralised co-operative logic of Co-operative
Federalism towards achieving a Co-operative Commonwealth. Cole, keen to replace
capitalism without bureaucracy, suggested that upon the State nationalising
consumer-facing businesses (for instance insurance or retail), they should be
mutualised (that is to say reorganised along co-operative lines) with the state
withdrawing its capital as the users contribute their own. These newly
mutualised retailers could, in turn (through their CWSes), take control of
nationalised and mutualised industry to fill their requirements.81 While ‘Development Boards’ would regulate
industry, decentralised Federal Co-operative structures could “develop
untrammelled by centralised bureaucratic control”82 as new industries and technologies emerge.
Finally, if market socialism was deemed to be desirable, there would be scope
for competition between the newly mutualised wholesale societies and the English
CWS, or between retail societies.83
CONCLUSIONS
From this discussion, it is apparent that
there was a variety of ways through which early British Co-operation challenged
the Marxian orthodoxy on production, the State, and morality. The Rochdale
Pioneers built on the ideas of Robert Owen, whose Fair Price doctrine was
concerned with production and consumption (rather than just production), and
sought to build a New Moral World outside the State. Drawing both on Owen and
other pre-Marxian socialisms, the Rochdale Principles were designed to enshrine
the replacement of a low moral motive in enterprise - profit - with a production
as a community service, which was seen by the Pioneers as being a high moral
motive. In establishing federal co-operatives (such as the English CWS), the
Pioneers established an economic model - Co-operative Federalism - which
operates outside the State, and is governed by co-operative (rather than
bureaucratic) logic. To Co-operative Federalists, State power may be a means to
enshrining Co-operative Federalism as the dominant mode of production, yet is
not an end in itself. All of these distinctions between Marxism and Co-operative
Federalism center around the role of consumption, the state, and morality in
socialism.
CHAPTER II: KEY EVENTS DURING A CENTURY OF
VICTORIAN CO-OPERATION: PRODUCTION, THE STATE, MORALITY, AND THE PRACTICE OF
VICTORIAN CO-OPERATION (1870 - 1970)
The British Co-operative Movement - both its institutions and theories -
formed the model upon which the Co-operative movement in Australia (and
Victoria) would be built. In the preceding chapter, we first defined a number of
key concepts in our present discussion. Then, we traced the theoretical and
institutional development of the Movement in Britain, from which it became
apparent that there was a variety of ways through which early British
Co-operation challenged the Marxian orthodoxy. Having done so, the purpose of
this chapter is to explore a few key events in the development of the
Co-operative movement in Victoria from its first emergence in the mid 1870s
through to the 1970s. These include its emergence in the context of Colonial
Victoria and subsequent adaptation to rural conditions, the factional battle in
the Australian Socialists League between the Modern Socialists and the State
Socialists, local attempts to federate, the impact of the Russian Revolution,
the emergence of Christian Co-operatives, and how the movement has adapted to
modern Australia.
VICTORIA’S FIRST CO-OPERATIVES: ADAPTING WITHOUT
THE STATE
The earliest Consumer Co-operative in Victoria that I
could find primary-source evidence of was called The Mutual Store.
This store, which had been established in 1872, appears to have been based
around the Rochdale Principles (in that it featured, for instance, fixed
interest on shares, dividends on purchases, and cash payments). By 1881, it
offered a range of goods to its members (including groceries, liquor, toys,
stationary, and trade services) from its store at 5 Flinders Street East,
holding around £20,000 capital between over 10,000 shares at £2 each.84 Other Rochdale-style Consumer Co-operatives in
Melbourne included the “Equitable Co-operative Society” of 32 Collins
Street West (registered April 22nd, 1882),85 and “The People’s Co-operative
Society”86 of Williamstown.
These early societies are interesting because they demonstrate that
co-operative ideas were part of Melbourne’s colonial experience, and emerged in
the broader context of the Australian colonial period. According to Mark Lyons,
the socio-political theories, and institutions, of Britain and Ireland provided
a model for the institutions of these new colonies, and were adapted for local
conditions:
"Australia has always had a high proportion of migrants in
its population. During the nineteenth century, most of these came from Great
Britain, which then included what is now the independent Republic of Ireland.
They bought with them many of the institutions, aspirations and quarrels of
'home'. But Australia was a different environment and these institutions,
aspirations and quarrels developed in some different ways. Several of these
imported ideas and practices had a direct bearing on the development of
Australia's third sector. These included middle-class notions of charity and a
strong lower class tradition of mutual association and democracy [which had
included British Co-operation]... By the late nineteenth century these imports
had taken root and were beginning to develop peculiarly Australian
forms."87
Thus the wave of
co-operatives which developed in the wake of the Rochdale Pioneers had, within a
couple of decades, spread to Melbourne. For the lower classes, co-operatives
would be important because although colonial governments "played a vital role in
encouraging business enterprise, by linking in labour and capital, and building
an extensive infrastructure of railways, ports and roads... in other areas of
social policy, governments were reluctant to intervene."88 Yet Co-operative societies would not be granted
legal recognition as a distinct organisational form until the 1950s; these early
societies were thus registered as Friendly Societies (in the case of the
Equitable Co-operative Society) and under the Companies Statute of 1884
(in the case of The Mutual Store).
RURAL AND WORKING CLASS
CO-OPERATIVES: ADAPTING TO LOCAL CONDITIONS
Indeed, a major feature
of co-operative logic is its ability to adapt to local circumstances, needs and
conditions, without the State. Craig notes that a key feature of co-operative
logic is that “groups must apply their own perspectives to situations as they
arise and make decisions... The solution for one community may in fact be a
major problem for another. The solution to problems are in-determinant and both
the problem and solution can best be defined by those who are involved in that
community at that point in time.”89
As Victoria had a largely agricultural economy prior to World War II,
this was reflected in where its Consumer Co-operatives developed.90 Their spread across rural Victoria, rather than
being a result of State promotion, instead owes a great deal to the tireless
efforts of Co-operative evangelists, such as J.A. Burke of Swan Hill, who went
from town to town, explaining co-operative solutions, and raising funds to
convert existing businesses into Co-operatives. The situation in Victoria also
differed from New South Wales, where the largest Consumer Co-operative, prior to
the Great Depression, was based in the (then) working-class suburb of
Balmain.91 The difference, summed up by
Burke, was that “Whereas your members [in New South Wales] are chiefly of the
artisan class, the members of the Co-operative Stores in Victoria are chiefly of
the farmer class.”92 That the prospect of
the Co-operative store could flourish in rural Victoria - a territory in which
the Labor Party (let alone radical Marxism) has had trouble capturing - could
perhaps be understood as being a product of the Co-operative movement’s
adaptability as a non-state socialism, coupled with it (by virtue of having an
economic analysis not solely focusing on production) not being tied to the urban
working class with the same necessity as the project of Proletarian revolution
is. This was evident in Burke’s belief that “Co-operation is such a mighty
principle, and so all-embracing, that there is no class that cannot practice
it.”93
THE BATTLES OF MODERN
SOCIALISM: SOCIALISM WITH OR WITHOUT THE STATE?
Given this, it was
in New South Wales that, until the 1890s, co-operation would battle
state-centric left wing theories in the battle to become the orthodoxy of the
Australian urban working class. The Australian Socialist League (ASL) was the
focus of a factional battle between the Modern Socialists (who advocated
Rochdale-style Co-operatives) and those advocating State Socialism (including
Marxism). A Ministerial Advisory Committee on Co-operation (MACC) report from
the 1980s (discussed in greater depth in chapter 3) noted of the league that, "A
forerunner to the Australian Labor Party, the [ASL] adopted as its objective in
the 1890s the Owenite dream of establishing 'a co-operative commonwealth founded
on the collective ownership of the land and means of production, distribution
and exchange'."94
According to
historian Gary Lewis, the Modern Socialists, including Bob Winspear's journal
The Radical, had advocated "the French revolutionary trilogy of Liberty,
Equality, and Fraternity, believing that democratic co-operation, alone,
conformed to this in every respect."95 This
simple yet compelling argument highlights an interesting advantage of
Co-operative Federalism: rather than requiring a rejection of liberal morality
a priori, it is instead arguably more compatible with these core
values of liberal morality than corporate capitalism itself. Firstly, there is
greater equality embodied in the Rochdale Principle of ‘one member one
vote’ than there is in ‘one share one vote’. Secondly, co-operative logic
embodies a fraternity that monetised commerce (at least in Owen’s
analysis) does not. And, thirdly, enterprises being socially controlled by end
users outside the State allows a greater freedom from the State than is
possible under a dictatorship of the proletariat, without resorting to the
liberal ‘free’ market . Thus the Modern Socialists rejected both state-centred
socialism and capitalism, arguing that "only by self-help through co-operation
in a democratic, decentralised system of economic power-sharing could the
creative power of the people be realised."96
These debates ended when, in the wake of
the Great Maritime Strikes (and in spite of the Modern Socialist arguments to
the contrary), the Union movement had been “Convinced that capturing the state
was necessary to the overcoming of capitalism.”97 The subsequent Royal Commission enshrined class
conflict, rather than co-operativism, as the basis of the Industrial Relations
system (as recently dismantled by John Howard).98 The resulting Industrial Relations system
somewhat reflected Webbs’ vision of fair price, although wages are fixed between
workers and companies (rather than between workers and consumers, through
Co-operatives), and thus the profit motive remained. But this, in turn, raises a
fundamental question when viewed through Fair Price analysis: if award wages
have historically represented a fair price for labour, and thus the sale prices
of Australian - made goods and services historically been above their ‘fair
price’, it suggests that Australian workers may have historically been exploited
more as consumers than as producers.
THE 1920 CONFERENCE: THE PROBLEMS OF SOCIALISM OUTSIDE THE STATE
Beyond its originally rural economy, perhaps the largest
local factor shaping the Victorian movement was the distances between
Australia’s state capitals. These distances (in contrast to the relative
closeness of major British cities) made organising national conferences of
Co-operatives (let alone a national CWS or Co-operative Union) difficult; doing
so would be an achievement that would wait until after the First World
War.99 Thus, in 1920s (two years after a
conference of Producer Co-operatives),100 a national Conference of Consumer
Co-operatives was organised. This conference listed 27 Victorian stores -
including societies in Yarraville, Moorabbin, Cheltenham, Box Hill and Richmond
- amongst its participants. The official report of this conference gives us some
insight into the issues concerning the Movement during this period, which
included the foundation of a national Co-operative Union, and a national
CWS.101
The great achievement of
British Co-operation had been to use the power of secondary Co-operatives to
organise the powers of production, on a truly massive scale, through the English
CWS (backed by the Co-operative Union). Unfortunately, establishing either in
Victoria would pose a challenge, let alone overcoming the tyranny of distance to
do so on a national basis. A Victorian delegate told the Conference, in
reference to numerous prior attempts to set up a Victorian CWS, that the
difficulty had been in raising enough capital.102 And where Burke said, of creating a Victorian
Co-operative Union, that “As soon as I get back to Victoria I am going to see if
we cannot form a union there,”103 we note
David Griffiths recount the first of three abortive attempts to establish a
Co-operative Federation in Victoria (during the inter-war years) when, in 1921,
a Co-operative Union of Victoria was formed and ceased.104
The experience of Victoria’s
co-operatives through the inter-war years exposes a potential pitfall of working
outside the State with inadequate support and, thus, a limited capital base. As
we noted in the introduction, by the 1920s the English CWS had counted more than
1,200 societies amongst its members; a critical mass of support and membership
had been reached, allowing it to organise industry. In contrast, while Consumer
Co-operatives had been long established in Victoria by the 1920s, the 27
societies (cut off by distance from their interstate comrades) struggled to
reach the a critical mass of support and membership needed to organise industry
through a CWS. Furthermore, without organising a CWS, they could not develop
their full potential by organising industry through Co-operative Federalism. In
turn, the lack of either a national or a Victorian CWS would make it difficult
for Victoria’s Consumer Co-operative stores to fully develop the advantages of
co-operation to compete against commercial supermarkets over the coming
decades.105
THE RUSSIAN
REVOLUTION AND THE AUSTRALIAN LEFT
Where Co-operative Federalism had
struggled to gain a foothold in Victoria, Marxism was in a position of strength.
According to historian Eric Hobsbawm, it would be the Russian Revolution which
would enshrine Marxism as the orthodoxy of the radical left:
"...in the
generation after 1917, Bolshevism absorbed all other social-revolutionary
traditions, or pushed them on to the margin of radical movements. Before 1914
anarchism had been far more of a driving ideology of revolutionary activists
than Marxism over large parts of the world... By the 1930s anarchism had ceased
to exist as a significant political force outside Spain, even in Latin America,
where the black-and-red had traditionally inspired more militants than the red
flag."106
The Russian Revolution
would have implications for the Australian political left as well; "In the
distant interior of Australia, tough (and largely Irish Catholic)
sheep-shearers, with no discernible interest in political theory, cheered the
Soviets as a worker state."107 Marxism had
thus become entrenched as Australia’s - and the world’s - radical orthodoxy. Yet
where the Russian Revolution killed Anarchism as a viable radical movement,
Victoria’s Co-operative movement continued to advance.
CHRISTIAN
MORALITY AND CO-OPERATIVES
During World War II (and continuing until
the 1970s), on top of their long established base in rural Victoria, the moral
underpinning of Victoria's Co-operative movement attracted another support base
outside the mainstream left, in progressive Christian groups. These included the
Kagawa Christian Fellowship (KCF), the Young Christian Workers (the YCW, which
was established in Australia in 1941,108
and sponsored its first society in 1945109), and the National Catholic Rural Movement
(NCRM, established in 1939).110 Consistent
with the principle of Religious neutrality, these Christian Co-operatives did
maintain the open door policy, and did “seek improvements for the benefit of
all.”111
That the moral ideals of
co-operation could attract progressive Christian groups should come as little
surprise. For progressive spiritual groups, the idea of ‘enterprises providing
services to its members - the end users - as bound by moral principles’ is moral
in a manner that the ‘invisible hand of the market providing profits to capital
as bound by exploitation’ is not. And the Rochdale Principles of Religious
neutrality and open membership leaves questions of spiritual conscience open to
the beholder in a manner that treating religion as ‘the opiate of the masses’
cannot. Finally, ‘Co-operation and peace’ may have more spiritual appeal than
either ‘war for oil’ or ‘socialism by violent revolution.’
The YCW had
been inspired both by the Antigosh Movement in Nova Scotia, along with the
Rochdale Principles, and believed that “People can build a middle course,
upholding the rights of the individual and serving the common good.
Co-operatives give them the means of building.”112 Its accomplishments included over 80 Credit
Co-operatives (out of which the Victorian credit Union Movement grew), a
co-operative furniture store with over 4,600 members and £2m in annual sales,
monthly meetings, and successful lobbying for Housing Co-operatives
legislation.113 But by far the most
important contribution to the Victorian Co-operative movement was that (on the
19th of February, 1961), it successfully established a Co-operative Union in
Victoria, named the Co-operative Development Society (CDS). Through the CDS, the
YCW provided Victorians with education about, and advocacy for, Co-operatives.
It is worth pointing out that the CDS was the predecessor to Victoria’s current
Co-operative Union, the Co-operative Federation of Victoria (CFV).114
The NCRM’s motivation was that it saw
Australian Catholics as being different to their European and Latin American
counterparts, on the grounds that they had identified themselves a persecuted
religious minority in a predominantly Protestant country. Based on this, the
NCRM noted that there was a "close connection between Australian Catholicism and
the general movement for the liberation of the working-class which was under way
throughout the nineteenth century... at a moment when historical forces were
driving European Catholicism into a position in opposition to the Social
Democratic parties."115 Co-operative
Societies116 were central to the NCRM’s
policies,117 particularly in regards to
land settlement, which sought to build rural community settlements in which
enterprises are organised as Co-operatives. Such settlements “should consist of
a number of houses and shops in a small township, with a ring of farms
surrounding them... in which each farmer owns the soil he [sic] tills.”118 Such plans were implemented in the (still
existing) Maryknoll Community Settlement in Gippsland, Victoria (between Tyrong
North and Nar-Nar-Goon North).119
THE 1950s: CO-OPERATIVES (FINALLY) GAIN STATE
RECOGNITION
At the height of the era of Christian Co-operation -
during the 1950s - an important shift occurred in how the State dealt with
Co-operatives. After about eighty years, Co-operatives finally gained legal
recognition as a distinct organisational form in Victoria; prior to which, they
had to either be registered under the Industrial and Prudential Societies Act,
or the Companies Act. Following the enactment of the Co-operation Act (1953)
(No. 5769), Victorian law recognised Co-operatives as a class of organisations
in their own right, although those Co-operatives already registered under other
Acts were under no obligation to transfer (although they could do so if they so
wished). The legislation also mandated a 5-member ‘Advisory Council’ (including
the Registrar, and a representative from Treasury) to encourage Co-operative
development and advise Government policy.120 It is important to note, however, that this
was the State finally properly recognising a pre-existing grassroots socialism,
rather than socialism being created by an Act of
Parliament.
ADAPTING TO MODERN AUSTRALIA: A MORAL AND INSTITUTIONAL
SHIFT
Just as British Co-operation had adapted to rural Victoria
nearly a century earlier, the 1970s marked a shift amidst Victoria’s Consumer
Co-operatives from focusing on physical goods to providing social
services. The Registrar noted that, of more than 115 societies registered in
1972, 90% were Community Advancement Societies or Credit Unions,121 in 1974 the Registrar was inundated with
applications for government guarantees and "applications for registration of
societies proposing to carry out projects of an unusual nature,"122 and in 1975, 85% of new registrations were
Community Advancement Societies.123 Note
that this is not to say that the (traditionally rural) co-operative retail
sector vanished (for example, The Emerald and District Co-operative Society -
now over 60 years old - continues to operate today, as a Mitre 10, and
Barry Plant franchise),124 but
rather that the growth and prominence of such societies has been overtaken. As
early as 1971, this rapid growth, and shift, had left the Registrar
under-resourced, thus limiting its capacity to carry out the promotion mission
of its Advisory Council.125
At the
same time, Catholic Co-operation, which been at the forefront of Victorian
Consumer Co-operation since the late 1930s (in the case of the NCRM), undertook
the secularisation of its institutions through the 1970s.126 This secularisation was a bi-product of the
alienation of progressive Catholics from both the mainstream left and the
Christian right, and in turn an unintended consequence of the ALP - DLP
split.127
Because of these two
events, Victoria’s current Co-operative Union - the Co-operative Federation of
Victoria (or CFV) - was formed (as an unincorporated body128) on October 17th, 1970, at a meeting of the
Victorian Trading Co-operative Association, Victorian Credit Co-operative
Association, The Federation of Co-operative Housing Societies, and the YCW’s
Co-operative Development Society.129
Griffiths notes that "With the formation of the CFV, the [CDS] eventually ceased
operating. On its establishment the CFV joined the national Co-operative
Federation of Australia."130 In 1973, the
CFV sought an annual grant131 (receiving a
grant of $1,000 the following year)132 and
was noted by the Registrar as being active in promotional work by 1976.133 The Co-operative movement had, once again,
taken control of its own destiny in the face of the resource limitations of the
State.
STATE OF THE MOVEMENT BY THE END OF THE 1970S
In
the face of numerous challenges, Victorian Co-operation had survived its first
century. In overcoming these challenges, there were several advantages for the
Victorian Co-operative movement in challenging the Marxian orthodoxy on
production, the State, and morality. As we have seen, since the 1870s, thousands
of Victorians have participated in socialist forms of economic organisation,
through Co-operatives. Co-operative logic helped their movement spread and adapt
to rural Victoria, and forge alliances with progressive Christianity. It also
successfully adapted to a service economy and, when the Registrar’s limited
resources were filled, took control of its own destiny through the CFV. But
there were also challenges posed by the rejection of Marxist orthodoxy,
including the defeat of Modern Socialism (and their compelling vision of
Co-operative Liberty, Equality, and Fraternity) at the hands of the Statists as
a result of the Great Maritime Strikes, difficulty in establishing federal
arrangements preventing growth from standalone Co-operatives to Co-operative
Federalism, and Marxism emerging as the radical orthodoxy after the Russian
Revolution. Nonetheless, it survived on the fringes of the mainstream left and,
more importantly, did so without even having State recognition until the 1950s.
Socialism had survived without the State.
CHAPTER III: CO-OPERATIVES AND THE CAIN
GOVERNMENT: THREE CO-OPERATIVE POLICY APPROACHES
In the last two chapters, we have noted that one fundamental regard in
which Co-operative Federalism differs from Marxism is in how it views the State.
For Marx and Engels, policies building socialism were to be directed by the
State (after the proletariat has seized State power); in contrast, Co-operative
Federalism did not view the seizure of state power as a precondition for forming
socialist enterprises. The question for this chapter is that if we accept, as
Co-operative Federalism suggests, that socialism should take place outside the
public sector through Consumer Co-operatives, and further accept Cole’s
assertion that the State can be used to promote such Co-operatives, then how
should State policy go about doing so?
During the 1980s, a push emerged
to encourage Co-operatives through Victorian State Government Policy. According
to Craig, across most of the world, “Before World War II, the formation of
co-operatives usually occurred with very little governmental encouragement and
in the face of hostility from the social and economic establishment;”134 a state of affairs clearly existing in
Victoria prior to World War II, and arguably continuing through to the 1970s.
Craig continues by noting that the post-war years (in many countries) were
“marked with a new dimension: the extension of government-directed
co-operation.”135 Emerging later in
Victoria than elsewhere, this push was institutionalised in the Ministry of
Employment and Training’s (MEAT) Co-operative Development Program (CDP), the
Ministry of Housing’s Ministerial Advisory Committee on Co-operation (MACC), and
the Victorian Food Co-operative Study Group (VFCSG).
The experience of
these three programmes, beyond representing a key event in the history of
Victoria’s Co-operative movement, also provides us with examples of different
Government policy approaches to promoting co-operative development. The purpose
of this chapter is, firstly, to recount their experience of these three
programmes, and to examine the insights it gives us into the movement at the
time. The second purpose is to compare the compatibility of the practice (or
recommendations) of these programmes to co-operative logic. We will undertake
this comparison based on five criteria: first, the impetus for their creation;
second, whether the problems they identified were primarily of concern for the
Government or the movement; third, who formulated their policies; fourth, their
solutions to these problems; and fifth, the State’s role in these solutions. We
will then examine implications of this discussion for our comparison with
Marxism, and how policy accommodating co-operative logic varies from good
Marxist policy.
THE CDP: THE INTERVENTIONIST
APPROACH
The impetus of our first programme was a Government problem;
the problem of youth unemployment. It was in the closing remarks of the Work
for Tomorrow conference (on the end of full employment, held in December
1978), that the then-Premier, Sir Rupert Hamer, noted that “several suggestions
have been made about supporting the establishment of new small businesses, often
on a co-operative basis for unemployed young people.”136 He responded to such suggestions by announcing
that:
“The government is prepared to fund three appropriate pilot
schemes... and later to review and evaluate these schemes after a period in
order to determine whether they are an effective way of creating new
jobs.”137
In 1981, under the
Minister for Employment and Training at the time (Brian Dixon), these pilot
schemes in supply side job creation through worker co-operatives evolved into
the Ministry of Employment and Training’s (MEAT) Co-operative Development
Program (CDP). The CDP continued after the election of the Cain Government (in
April 1982) under the auspice of Jim Simmonds,138 who increased its annual funding from $600,000
to $850,000.139
The CDP’s solution
for tackling youth unemployment (a Government concern) was to establish (or
expand) viable ‘community employment’ co-operatives140 which would see employees in control, with
ownership in the hands of either the workers themselves, or ‘the community’
(rather than the end-users of the co-operative’s products).141 It is worth pointing out that workers
co-operatives (co-operatives in which employees, rather than consumers, are
members) had died out in Victoria by World War I,142 thus this was policy attempting to create a
new co-operative sector whole cloth, rather than strengthen the existing
movement.
The Government’s role in establishing such ‘community
employment’ co-operatives came through a mixture of financial and technical
support.143 Such support was subject to
co-operatives meeting a raft of Government conditions, including them becoming
economically viable, meeting award wages and conditions, upholding the 1966 ICA
Principles, and achieving workplace democracy, as listed in a key Cain
Government macro-economic policy document.144 As David Griffiths points out, such an
interventionist approach was fundamentally flawed:
"In the 1980's, for
example, a number of co-operatives were formed in Victoria to create employment
for the unemployed under a Victorian Government Co-operative Development
Program. Some of the co-operatives were formed by local business people and
professionals and others committed to doing something for their community. But
many of the citizens and directors who formed these co-operatives did not become
users - the users were meant to be the unemployed others. These co-operatives no
longer exist and a major contributing factor being that the others either did
not become users or if users they did not form the co-operative and the
non-users remained the controllers of the co-operative."145
Given such external control, the CDP
appears to have been based upon the bureaucratic paradigm rather than on
co-operative logic. It is unsurprising, then, to find an article in
Society stating that the CDP was wound-down in 1986 “after a change of
minister and restructuring of the Ministry for Employment and Training (now
Department of Labour).”146 The programme
of co-operative development through interventionist grants had
failed.
THE MACC: EDUCATION AND STATE STRUCTURAL
REFORM
As with Simmonds’ CDP, the impetus for the MACC also came from
within Government, this time in the Ministry of Housing. Continuing the work of
a 1982 Ministry of Housing Legislative Review Committee,147 in 1984, the then Minister for Housing and
Minister administering the Co-operation Act (Ian Cathie) established the
Ministerial Advisory Committee on Co-operation (MACC).148 The aim of the MACC - listed in its terms of
reference - was to advise on "Policy matters relating to the drafting of new
co-operative legislation; and policy development relating to the co-operative
movement generally,"149 and “to review the
development of the co-operative movement in Victoria and to provide input
towards new directions for the co-operative sector.”150 The primary aim of this programme, then, was
to strengthen the existing movement, rather than to fulfil a Government policy
aim external to the movement.
Where the MACC began to vary from the CDP
is in the level of participation from the movement. The MACC, in turn, comprised
of five working parties, representing consumer (including credit, housing, food,
and rental housing co-operatives), worker, producer, and community
co-operatives, as well as a working party representing Trades Hall. By June of
that same year, the MACC had already produced a preliminary report on policy
weaknesses, and was published to elicit feedback from the movement. The
submissions the MACC received, and the findings of its working groups, were
published under the title “Co-operation in Victoria” and, in turn, formed
the basis of the problems the MACC identified, and its policy
recommendations.151
One of two
areas of major concern for the movement at this time was the interventionism of
the CDP. The MACC recognised that, when it came to government co-operative
policy, contrary to the practice of the CDP:
“In providing support to
co-operative development where it is consistent with the Government’s programs
and priorities, the government should:
(a) Assist co-operative development in
a manner which is consistent with co-operative principles and practice;
(b)
Recognise that co-operatives are organisations whose autonomy and democratic
management are critical to their success and that government support should not
subvert that autonomy.”152
At the
same time, it was recognised that Co-operatives could form an important part of
Victoria’s economic base,153 but for this
to happen:
“The relationship between the government and the co-operative
movement needs to be based on a clear statement of government support for the
co-operative sector and recognition that it is clearly distinguishable from both
the public and private sectors.”154
Consistent with this need for policy recognising co-operative democracy
and autonomy, the MACC recognised that ongoing grants (such as those handed out
through the CDP) lead to Government dependancy.
The second area of major
concern for the movement at this time had been co-operative education which, as
a result of consultation, also became a problem the MACC would deal with. Quite
alarmingly, in spite of a very broad audience for co-operative education, only a
fraction was being fulfilled. The MACC found that Victoria’s education system
was failing to give even the most general of overviews of co-operation to its
students; noting that “Education and training for potential co-operators
(schools, general public and specific) is virtually non-existent, [and that]
...research undertaken did not find any substantial co-operative education and
training activity in schools in Victoria.”155 The report noted that Co-operative Unions like
the CFV did follow the Rochdale Principles by providing education for existing
co-operatives. However, ‘Multiplier agents’ - a category of people who could
inform or educate people who may potentially be interested in becoming involved
with a Co-operative(s) (even if they personally are not interested or involved),
comprising of teachers, educators, solicitors, accountants, researchers, and
policy makers - were not catered for in either the State education system, or in
the co-operative sector.156 Given the
importance of socialisation into co-operative logic, such a lack of widespread
co-operative education had almost certainly constrained Victorian Co-operation.
Responding to these two areas of concern for the movement (and reducing
government intervention) would form the basis of the MACC’s policy solutions.
The MACC responded to the fundamental flaw of the CDP (the State intervening
with ongoing grants to artificially create a form of co-operative whole cloth)
by stating that it “believes that there is no single correct or incorrect
co-operative practice, but simply a number of equally valid practices.”157 As a result, the “MACC believes that
encouraging co-operative development through the establishment and utilisation
of sector associations is the model best suited to meeting the diverse needs of
Victoria’s co-operative movement.”158 In
other words, each type of co-operative (‘sector’) should ideally have its own
Co-operative Union (or ‘sector association’), with a single peak body per sector
to be encouraged. The MACC recognised that while ongoing government expenditure
may be appropriate to fund co-operative infrastructure (for instance
Co-operative Unions, or Government departments which deal with co-operatives),
such ongoing grants are absolutely inappropriate for individual co-operatives
(unless those co-operatives are providing a government service). Similarly,
once-off seeding grants should be available through sector associations, as well
as research grants to academics studying co-operation, but that loans are a
preferable ongoing means for individual co-operatives to raise capital.159 Under these arrangements, the MEAT’s CDP would
amalgamate with the Registry of Co-operatives’ Policy and Research Branch,
forming a Co-operative Development section (OOC-CDS) of a new Office of
Co-operatives (OOC), which would supersede the current Registry.160 This new OOC-CDS would bring together all
government co-ordination of co-operative development, to be done primarily
through assistance creating sector associations (and the development agencies
which these sector associations would oversee).161
To encourage Co-operative education,
the MACC recommended creating two new bodies between the movement and the OOC
(that is to say, Government bodies controlled from below by the movement): the
Victorian Co-operatives Council (VCC) and the Co-operative Education and
Training Authority (CETA). The VCC would serve as a permanent organisation which
would fill the MACC’s temporary policy research and development role. It would
be governed by representatives of each Sector Association, plus two ministerial
appointments (one perhaps representing Trades Hall, another perhaps with
expertise in Finance or Education), greatly enhancing communications between the
movement and the State Government. Alongside the VCC, CETA would design and
implement education programmes and courses to overcome the shortcomings in
co-operative education identified by the MACC. CETA would be made up of members
from the VCC, the CFV (or a future Federation), and a representative of each
Sector Association’s education and training Committees; as well as nonvoting
membership by the Victorian Education Department and other relevant
institutions. Implementing CETA, and the courses it would manage, would cost
$100,000 per annum, although this could be partially funded by a special
‘education levy’ on co-operatives.162
Unfortunately, the MACC’s recommendations, following the closure of the
CDP, would not be implemented. This is unfortunate because, in regards to the
State providing a beneficial environment for co-operatives while not overruling
co-operative logic, the MACC’s policy recommendations represent a vast
improvement over the practice of the CDP.
THE VFCSG: THE
BROTHERHOOD OF ST. LAURENCE AND REFORM FROM BELOW
Unlike the CDP and
MACC, the impetus for the third initiative (the VFCSG) would come from the
grassroots itself, and from the social welfare policies of the Brotherhood of St
Laurence (the Brotherhood). Following the example of the unemployed weavers of
Rochdale, and consistent with the findings of its Pride and Poverty
report,163 the December 1983 issue of the
Brotherhood’s newsletter (“Action”) reported that “Now low income people
too can save, buying better quality goods at low prices, through the
co-operatives established by the Brotherhood’s Sharing Centre in
Fitzroy.”164 Used by an average of 100
people per trading day, the Sharing Centre’s Under Current Co-operative
retailed clothes, shoes, and food exclusively to its inner - urban pensioner and
welfare recipient members, allowing them to collectively buy in bulk at
wholesale prices, and gain practical experience from volunteer (as well as
paid165) work. By early 1982, the Sharing
Centre began examining the feasibility of making Under Current a viable
standalone concern, by examining other food co-operatives in Victoria,166 and also organised the Food Co-operative
Support Group, through which representatives of 30 Victorian food co-operatives
met monthly.167 The Support Group acted as
a ‘sector association’ for food co-operatives and was governed by consensus
decision making.168
In February
1984, the Support Group received funding through the CDP to undertake a study
into Victorian food co-operatives. This study group consisted of three staff and
a management committee, and operated as the Victorian Food Co-operative Study
Group (VFCSG).169 Where the initial
impetus had come from below, it was thus aided by State resources.
In
July 1984, the VFCSG published its groundbreaking first report, “Food
Co-operatives in Victoria”,170 which
focused on the problems faced by Victoria’s food co-operatives at that time.
These low income food co-operatives included, for example, the Carlton Community
Milk Bar (which ran under the legal auspice of the Carlton Community Health
Centre, with assistance from the Brotherhood, and several nearby housing
estates) and the Doveton Food Co-operative (which had originally run out of a
room in a member’s house, and whose members had low incomes, received social
security, or were pensioners). The VFCSG found that such Food Co-operatives
reported a range of problems in supply, purchase, transport, organisation,
planning, management, limited finance, the problems of volunteerism, and low
levels of education.171
The
resulting policy recommendations from this research should come as no surprise
to the student of Co-operative Federalism. The VFCSG recommended centralised
purchasing through a CWS would be essential to further sector development, and
would receive support from 70% of Victorian food co-operatives.172 Secondly, it recommended that the MEAT
immediately fund a sector association (referred to in the report as a ‘Resource
Centre’) for Food Co-operatives. Thirdly, it recommended that the CDP ought to
turn its attention (and resources) to assisting these objectives, and lift its
ban on funding food Co-operatives.173 In
regards to the first finding, the CDP’s failure to create a CWS should surely be
counted as a major oversight: centralised purchasing (through a CWS) would have
increased the buying power of its members, created a market for their products,
and would rather have created a co-operative economy rather than merely a
string of Co-operative candles in the winds of capitalism, dependant on State
benevolence for survival.
It also created a business plan for
establishing a CWS in Victoria (which was to be named ‘Moving Food’). The
Moving Food business plan demonstrated that if it were established in May
1985, on the assumption that it would undertake wholesale purchasing exclusively
on behalf of Victoria’s food co-operatives, it would have run a surplus of
$14,168 within 3 years (based on a grant of $80,000 and a loan of $165,000; a
result achieved without doing even a single dollar of trade on behalf of any
other type of co-operative).174
The commitment to fund the Moving Food CWS and the Food Co-operative
Resource Centre appeared as a key antipoverty commitment in the Cain
Government’s 1985 Social Justice election platform, which explicitly stated that
“We will set up a co-operative warehouse and development centre. This will in
effect be a ‘master co-operative’ serving existing and developing
co-operatives.”175 Unfortunately, as was
the case with the MACC recommendations, with the end of the CDP, the Cain
Government turned its back on these promises176 (keep in mind that the same Government lent
$500 million to Christopher Skase and Alan Bond through Tricontinental).177
HISTORICAL SIGNIFICANCE AND
INSIGHTS
The experience of these three programmes - the CDP, the
MACC, and the VFCSG - is interesting in the context of recovering the history of
the Victorian Co-operative movement. In itself, the existence of these
programmes (in particular, the interventionist CDP) is interesting in that they
were a unique event in the history of the Victorian Co-operative movement. They
were both a stark departure to how Victorian State Governments had dealt with
Co-operatives up until that point (as we have witnessed in the previous
chapter), or since (for better or worse). Beyond their uniqueness, however, they
are interesting because of the research carried out within these programmes - in
particular the MACC and VFCSG - also represents perhaps the most comprehensive
and systematic studies of the Victorian movement to date. When viewed against
the background of the movement’s history, this research provides us with a
‘detailed snapshot’ of the movement after the end of its first century,
revealing both its continuities and its changes, as well as its problems and
concerns.
When viewed in the context of its history, this snapshot of the
movement reveals both some interesting changes, as well as a number of
continuities. For example, while, since the mid 1970s, Victorians increasingly
used Consumer Co-operatives to provide social services (a key shift we noted in
the previous chapter), as of the mid 1980s, traditional food co-operatives were
still empowering some of Victoria’s poorest citizens. The welfare recipients and
pensioners of Doveton pooling together their meagre resources to buy food at a
fair price is not altogether different to what the unemployed weavers of
Rochdale were doing in the 1840s; yet that this was taking place in suburban
Melbourne rather than rural Victoria is an interesting change from where such
Co-operatives were used a century earlier. That a charity (such as the
Brotherhood of St. Laurence) linked to a church (the Brotherhood is affiliated
with the Anglican Church) would allow a Co-operative to run under its legal
auspice (such as Under Current) and start a support group is not
altogether different to what progressive Christian groups (such as the YCW) had
done earlier, even though the YCW’s CDS had already secularised into the
CFV.
The research also provides some insights into the movement’s
problems and concerns at this point in time. Victorian Co-operators at the time
identified supply, purchase, transport, organisation, planning, management,
limited finance, and the problems of volunteerism as their concerns; where the
State did not take care of these issues, it was left to the movement itself to
take care of them. There appears also to have been an interesting paradox in
regards to Co-operative education, in which people who were self-educated, or
educated within the movement, were seeking to improve the state of Co-operative
education and sought to use the State education system as a means of doing so.
And, finally, the movement was one which had survived for over a century with
minimal State support, and was one to which State paternalism (as represented by
the CDP) was seen as a threat; to which control from below - and forming
appropriate federal arrangements, was seen as a preferable means of resolving
problems. There was a need to create solutions in a manner compatible with
co-operative logic.
THE THREE APPROACHES COMPARED
These
three programmes are also interesting in that they also represent three
different strategies for formulating policy encouraging socialism outside the
State. Given that the MEAT’s and VFCSG’s recommendations were not implemented,
we cannot test their effectiveness, but we can measure their relative
compatibility with co-operative logic. They could also (if they are compatible)
point out a preferable alternative for any future co-operative development
policy over the interventionist approach of the CDP. As I noted earlier, we will
compare them on the impetus for their creation, the problems they identified,
who formulated their policies, their solutions to the problems, and the State’s
role in the solutions.
So how compatible were these approaches with
Co-operative logic? The impetus for the CDP, as we have seen, came about as a
result of a Hamer Government concern (the end of full employment) and the MACC
was the product of a Cain Government legislative review; the VFCSG, in contrast,
was created from below by The Brotherhood, and food Co-operatives themselves.
The CDP thus identified a Government concern (youth unemployment) as its key
problem; in contrast the MACC identified a mixture of concerns within the
movement (for example, Co-operative education and adequate representation)
alongside Government concerns (for example having appropriate Government
infrastructure to deal with Co-operatives), while the VFCSG largely dealt with
concerns within the food co-operative movement itself (such as problems with
supply, purchasing, transport, and information). In the CDP, policy was
formulated from above by Government, with the aim of overcoming Government
concerns; the MACC used working parties and submissions from the Movement
itself, and the VFCSG was run within the movement itself, with State funding.
Finally, where there was heavy State involvement in the CDP’s solution (in the
form of financial support, and technical support subject to meeting numerous
Government conditions) leading to an attempt to create a new Co-operative sector
whole - cloth, the MACC made a point of minimising State dependancy in assisting
the existing sector (while it recommended State funding of sector associations
and statutory bodies, individual co-operatives could receive only once-off
grants or loans) while the VFCSG’s Moving Food CWS required only a once-off
grant and a medium term loan. In short, while the CDP was largely a product of
the bureaucratic paradigm, the VFCSG and - to a lesser extent - the MACC
represent policies formulated by, and open to, co-operative
logic.
Returning to the central question of this thesis - the three key
differences between Marxism and Co-operative Federalism - the experience of the
three Cain Government programmes highlights a fundamental difference between how
State power can be used to advance Co-operative Federalist economy, as opposed
to a Marxist economy. For Marx, the initiative for economic policy in a
Dictatorship of the Proletariat was to come from the ‘vanguard’ of the the
proletariat (as the representative of the proletariat) following the seizure of
State power. Yet to maximise the scope of co-operative logic, initiatives should
either come from below with delegated State resources (VFCSG), or alternatively
come from the State in the forms of initiatives designed to identify concerns
within the existing movement (MACC), rather than fulfilling Government policy
concerns. Marx had already defined their problem - the State seizing control of
production and wrestling capital from the bourgeoisie; co-operative logic
demands movement input (MACC) or the movement itself (VFCSG) identifying the
concerns and problems it faces at a historical point in time. Marx and Engels
wanted the State (as representative of the proletariat) to dictate how solutions
to the pre-identified problem of production were to be implemented, where
co-operative logic (as per the MACC and VFCSG) calls for the movement to
identify its own solutions to its own concerns at a given point in historical
time. Finally, where the ends, for Marx, was the seizure of State power on
behalf of the proletariat, the MACC and VFCSG defined solutions which avoid
State dependancy, and are institutionalised in a manner that maximises the scope
and possibilities of co-operative logic through control from below.
In
short, then, the development of the Co-operative movement through the State
calls on a very different kind of political programme (in initiative, the
problems it identified, its solutions, and the State’s role in these solutions)
to that called for by Marx.
CONCLUSIONS
The question underlying this thesis - as with any academic work - is why
all this is relevant and important.
The answer lies in the world we live
in today. We live in the aftermath of the end of the Keynesian consensus, in the
wake of the fall of the Berlin Wall, and in a post-Cold War world. It is a world
in which the idea of a mass proletarian uprising imposing a Dictatorship of the
Proletariat in most of the West appears to be, in the foreseeable future, about
as utopian as anything suggested by Owen. Indeed, it is a world in which - in
one of history’s cruellest ironies - the Communism advocated by Marx and Engels
is often dismissed as being ‘utopian,’ and the Soviet Union is deemed a failed
utopian experiment as Orbiston, Queenswood, and Harmony Hall were in generations
past. It is a world in which Free Trade and the Neoliberal orthodoxy reign
supreme. The question is whether the project of socialism (that is, the project
of the "desire for the fullest possible development of man's highest
faculties... through society and a collective organization,"178 which "rejects individual property, not
absolutely, but as a source of income and even more, as a source of
power"179) is still relevant in the
contemporary world. More precisely, the question is whether socialism is
relevant to the academic (as a vantage point from which to critique the status
quo), the social activist (as a course of action), and the policy-maker.
For the project of socialism to be relevant to the modern world, it
requires a socialism relevant to the modern world. And, for many in the
political left, the challenge has been in identifying a socialism for the modern
world; a process which has often involved questioning the Marxian orthodoxy on
the roles of production, the State, and morality in socialism. It is a process
which has led to a number of movements reinventing (or rediscovering)
Co-operative ideas, some examples of which include the theories of Participatory
Democracy, the Open Source Movement, the student radicals of the 1960s and
1970s, and the words of a former leader of the Federal ALP.
The
implications of this challenge has been realised by the Participatory Democrats,
who seek to increase active participation by users of government services,
rather than to replace these services with services provided by the private
sector.180 Participatory Democrats, such
as Leo Panitch, reject traditional Government Bureaucracy as "an administrative
apparatus that is itself structured in a fundamentally undemocratic fashion,
along principles of strict hierarchy that owe much to the organization of the
nineteenth-century British Colonial Office.”181 Their solution is to be found by “replacing,
wherever possible, the 'appointment' principle with an elective one, or at least
the appointment of those who already have a democratic mandate and means of
popular sanction from the group."182 In
other words, Participatory Democrats seek to replace the Bureaucratic paradigm
with co-operative logic, as the MACC had advocated. What this would mean in
practice, according to Meyer Brownstone, is that:
...the forms of
delivering [Government / social] services should be decentralised, self-managed,
and democratically organized - in terms... of the clients, broadening and
enriching their experience with a democratic social structure. ...there should
be an active policy for effective - i.e. authoritative - decentralization of
functions, entailing (a) community / neighbourhood discretion (e.g.,
libraries, recreation, parks, community health center[s], housing); (b) popular
sector organizational control (including co-operatives in various
fields); and (c) worker -controlled enterprises and agencies.183 (Emphasis mine.)
Consider, secondly,
the Open Source Movement, and perhaps its biggest achievement to date,
Wikipedia. Wikipedia is a free, online encyclopaedia which - unlike traditional
printed encyclopaedias - allows any of its end users to ‘edit’ its articles,
contribute their own articles, and participate in its decision-making process.
This open source encyclopaedia is based on software called a Wiki, which allows
people with no knowledge of HTML to dynamically edit articles. It is not
produced by the State, but rather an end-user owned non-profit organisation
known as the Wikimedia Foundation.184 Just
as Co-operatives trading at Fair Price subverts monetised commerce, the
Wikimedia Foundation subverts copyright law by licensing its articles under the
GNU Free Documentation License; a license allowing the freedom to make copies or
create derivative works, on the condition that any copies or derivative works,
in turn, allow others the same freedoms.185 In short, it is an encyclopaedia built on
co-operative logic.186
Consider,
thirdly, the ideas of the student radicals of the 1960s and 1970s. According to
historian Eric Hobsbawm, one of the long term implications of the Russian
Revolution, both locally and abroad, had been that:
”The young who
thirsted to overthrow capitalism became... orthodox communists, and identified
their cause with the Moscow-centred international movement... Though anyone with
the slightest knowledge of ideological history could recognize the spirit of
Bakunin, or even Nechaev, rather than Marx in the student radicals of 1968 and
after, it led to no significant revival of anarchist theory or movements.187
While the student radicalism of the
new left indeed embodied the spirit of Bakunin and Nechaev, it appears to have
also contained undertones of the spirit of Owen and the Rochdale Pioneers.
Consider, for instance, that according to Charles Landry, et. al.,:
“An
essential feature of the political culture of the 1970s was its rejection of
formal, bureaucratic structures in favour of loose-knit informal networks. This
replacement of one type of organization by another was of central importance,
given that the emphasis at the time was as much on how things were to be
done as on what was to be done. The belief in the importance of
non-hierarchical structures and ‘networking’ was strongly influenced by the
women’s movement and by the forms of organization, such as the
consciousness-raising groups, which that movement had generated.”188
Based on this account, there appears
to be more than a passing resemblance between the student radicalism of the
1960s / 1970s, and the ideals of Co-operative Federalism. Some similarities are
immediately obvious: viewing control of State power a means but not necessarily
an end in itself, a resulting emphasis on change through consciousness raising
and education (a Rochdale Principle), and social analysis concerned with - but
not solely focused on - production, to cite but three examples. But the most
significant similarity was their rejection of the bureaucratic paradigm, and
attempt to reinvent co-operative logic. It is perhaps unfortunate, then, that
the Marxian Orthodoxy may have prevented them from taking aboard the lessons of
Post-Rochdale Co-operation.
While the student radicals may have
overlooked the lessons of Rochdale, (at least some) of their modern successors,
in the Green movement, have embraced these lessons. For example, prominent
environmentalists David Suzuki and Holly Dressel argue that non-profits and
co-operatives can be a viable, environmentally friendly alternative to corporate
capitalism. They demonstrate the point by examining a Co-operative known as the
‘Recycling Centre’ in Portland, Oregon.189 In this case study, Dressel and Suzuki cite
this organisation’s annual revenues (over $1 million per annum), that its
conditions and pay are better than its competitors, low staff turnover, and
environmentally sound business practices as an example to emulate.190
Consider, finally, the words of a
former Leader of the Federal Australian Labor Party, Mark Latham, who has stated
that:
“Marx was wrong in predicting the alienation of labour from the
economy as the catalyst of social discontent. It is the alienation of the
individual from community life that is the cause of so many social
problems.
...
I regarded this as the big challenge for Left-of-centre
politics, to overcome the impersonal nature of bureaucracies and the market
economy, to help people reconnect with society, to get them more involved in
political and community life. In my eyes, it didn’t make sense for the Left to
condemn McDonald’s but to support Centrelink - both were large-scale
organisations that treated people as clients, not citizens. I concluded that the
true cause of Labor involved the dispersal of power and influence. We need to
break down the entrenched hierarchies that sustained social elites and insiders,
and to enable disenfranchised people in the suburbs and regions - the outsiders
- to do more for themselves.
...
This is best achieved by transferring
influence and resources to communities, devolving as many decisions and public
services as possible. Real power comes from giving power away. But this is not
how the parliamentary system works, especially a machine political party... The
square peg of Labor politics does not fit into the round hole of social
capital.”191
There is already a
term for what Latham is calling for: co-operative logic. Similarly, there is a
term for what Latham is arguing against: the bureaucratic paradigm. If Latham’s
discussion of ‘insiders’ and ‘outsiders’, of devolving power and giving the
community control is to be more than hollow rhetoric, it calls for a practical
socialism which is not (necessarily) tied to the Marxian orthodoxy on
production, the State, and, perhaps, morality.
As this thesis has
demonstrated, it is precisely such a socialism that has been maintained, in
theory and practice, by the co-operator for over a century and a half. And
Victorians continue to use the Co-operative model to serve themselves a range of
goods and services to this very day, in some cases adapting the model for tasks
that Robert Owen and the Rochdale Pioneers could never have imagined. Victorian
co-operators provide themselves with telecommunications services (NET-C),192 web hosting (TauCeti),193 books (the New International
Bookstore),194 a radio station (PBS
106.7FM),195 childcare (the East Melbourne
Childcare Co-operative),196 film-making
services (including equipment hire, training, studios, and production) (Open
Channel),197 healthcare (Victorian
Aboriginal Health Service),198 sporting
facilities (Bendigo Squash Centre),199
holiday accommodation (Olinda Ski Club),200 and countless other goods and services,
without profit, through Co-operatives.201
Co-operatives, as well as local Government and non-profit associations can, in
turn, collectively purchase goods and services through a CWS called Co-operative
Purchasing Services,202 and the
Co-operative Federation of Victoria - which now maintains the Australia.coop web
portal - still acts as the sector’s Co-operative Union.203
For the academic, Co-operative
Federalism holds a variety of useful theoretical tools forged by practical
experience, yet challenges the Marxian orthodoxy on production, morality, and
the State. In chapter 1, we explored how the Rochdale Pioneers built on the
ideas of Robert Owen, whose Fair Price doctrine was concerned with production
and consumption (rather than just production), and sought to build a New Moral
World outside the State. Drawing both on Owen and other pre - Marxian
socialisms, the Rochdale Principles were designed to enshrine the replacement of
a low moral motive in enterprise - profit - with a production as a community
service, which was seen by the Pioneers as being a high moral motive. In
establishing federal co-operatives (such as the English CWS), the Pioneers
established an economic model - Co-operative Federalism - which operates outside
the State, and is governed by co-operative (rather than bureaucratic) logic. To
Co-operative Federalists, State power may be a means to enshrining Co-operative
Federalism as the dominant mode of production, yet is not an end in
itself.
For the social activist, there are important lessons to be drawn
from the first century of Victoria’s Co-operative movement; both from its
successes, and its challenges. In chapter 2, we noted how Victorians have
successfully used the Co-operative model, and have adapted it to a range of
different environments and circumstances, including colonial Melbourne, a rural
economy, the emergence of a service economy, and the limitations of the
Registrar’s resources. In light of the emergence of the Conservative Christian
Right in both the United States and Australia (and the question of how the left
should respond), the history of progressive Christian groups (including the NCRM
and the YCW), and the adaptability of co-operative logic to progressive
religious beliefs, is particularly noteworthy today. Meanwhile, the challenges
faced by the early attempts by Co-operatives to federate highlights the
necessity of having an adequate support base in order to collectively organise
outside the State.
Finally, the experiences of the MACC and VFCSG
illustrate the implications of formulating policies in a manner consistent with
co-operative logic (as advocated by the Participatory Democrats, Latham, and
others). In chapter 3 we noted, firstly, that in order to maximise the scope of
co-operative logic, initiatives should either come from below with delegated
State resources (VFCSG), or alternatively come from the State in the forms of
initiatives designed to identify concerns within an existing movement (MACC).
Secondly, co-operative logic demands movement input (MACC) or a movement itself
(VFCSG) identifying the concerns and problems it faces at a historical point in
time. Thirdly, co-operative logic (as per the MACC and VFCSG) calls for a
movement to identify its own solutions to its own concerns at a given point in
historical time. Finally, the scope and possibilities of co-operative logic
needs to be maximised through control from below, and institutionalised in a
manner which avoids State dependancy (as defined in both the MACC’s and the
VFCSG’s solutions).
Marxian Socialism rejected its contemporaries (and
predecessors) as being ‘utopian,’ on the grounds of their views of production,
the State, and morality in socialism. The Russian Revolution had seemed to
confirm, for a time, that the Marxian analysis was ‘scientific.’ However, in a
post-Cold War world, the left is increasingly rediscovering economic focuses
other than production, collective organisation outside the State, and morality.
In doing so, it is (usually unwittingly) drawing upon the long and rich
traditions that this thesis has sought to document.
APPENDIX A: THE ORIGINAL ROCHDALE
PRINCIPLES
As listed in Cole, G.D.H., “A Century of Co-operation”, Oxford:
George Allen & Unwin Ltd., 1944, p. 64 and discussed pp. 64-74.
1) Democratic control
“so that each member shall have only
one vote”
2) Open membership
“anyone... could join the
society”
3) Fixed or limited interest on shares
4)
Distribution of the surplus
“in proportion to [members’]
purchases”
5) Trading strictly on a cash basis
6)
Selling only pure and unadulterated goods
7) Providing for the
education of the members in Co-operative Principles
8) [Partisan]
political and religious neutrality
APPENDIX B: THE CO-OPERATIVE PRINCIPLES (1966
ICA REVISION)
As listed in Craig, John G., “The Nature of Co-operation”,
Montreal: Black Rose Books, 1993, p. 42.
1) Open and voluntary membership
2) Democratic
control
3) Limited (if any) interest on shares
4)
Return of surplus to members
a) by provision for the development
of the co-operative
b) by distribution among the members in
proportion to their transactions with the society
5) Co-operative
education
6) Co-operation between Co-operatives
APPENDIX C: THE CURRENT CO-OPERATIVE
PRINCIPLES (1995 ICA REVISION)
As downloaded from International Co-operative Alliance, “Statement
on the Co-operative Identity,” http://www.ica.coop/coop/principles.html,
downloaded 1/8/ 2006.
1) Voluntary and open
membership
“Co-operatives are voluntary organisations, 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
“Co-operatives are democratic organisations 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. In primary co-operatives members have equal voting rights (one
member, one vote) and co-operatives at other levels are also organised in a
democratic manner.”
3) Member economic
participation
“Members contribute equitably to, and democratically
control, the capital of their co-operative. At least part of that capital is
usually the common property of the co-operative. Members usually receive limited
compensation, if any, on capital subscribed as a condition of membership.
Members allocate surpluses for any or all of the following purposes: developing
their co-operative, possibly by setting up reserves, part of which at least
would be indivisible; benefiting members in proportion to their transactions
with the co-operative; and supporting other activities approved by the
membership.”
4) Autonomy and independence
“Co-operatives
are autonomous, self-help organisations controlled by their members. If they
enter to agreements with other organisations, including governments, or raise
capital from external sources, they do so on terms that ensure democratic
control by their members and maintain their co-operative autonomy.”
5)
Education, training and information
“Co-operatives provide education
and training for their members, elected representatives, managers, and employees
so they can contribute effectively to the development of their co-operatives.
They inform the general public - particularly young people and opinion leaders -
about the nature and benefits of co-operation.”
6) Co-operation among
Co-operatives
“Co-operatives serve their members most effectively and
strengthen the co-operative movement by working together through local,
national, regional and international structures.”
7) Concern for
community
“Co-operatives work for the sustainable development of
their communities through policies approved by their members.”
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1 Ministerial Advisory Committee on Co-operation, “The Co-operative Way: Victoria’s Third Sector: M.A.C.C. Report 1986”, Melbourne: Ministerial Advisory Committee on Co-operation, pp. 35-6.
2 Craig, John G., “The Nature of Co-operation”, Montreal: Black Rose Books, 1993, p. 166.
3 ibid., p. 107.
4 Lambart, Paul; as translated by Létarges, Joseph; and Flanagan, D.; “Studies in the Social Philosophy of Co-operation”, (originally published March 1959), Manchester: Co-operative Union, Ltd., 1963, p. 231.
5 Craig, John G., “The Nature of Co-operation”, p. 164.
6 Gide, Charles; as translated from French by the Co-operative Reference Library, Dublin; "Consumers' Co-operative Societies", Manchester: The Co-operative Union Limited, 1921, p. 122.
7 ibid.
8 ibid., p. 23.
9 Ministerial Advisory Committee on Co-operation, “Co-operation in Victoria”, Melbourne: Ministerial Advisory Committee on Co-operation, 1985, p. 5.
10 ibid., p. 114.
11 National Catholic Rural Movement, “Fruits of the Vine: Handbook of the National Catholic Rural Movement”, Fitzroy: Australian Catholic Publications, 1958, pp. 113 - 5.
12 Pulsford, Frank, “The Place and Power of Idealism in the Co-operative Movement”, in New South Wales Co-operative Union, “First Australian Congress of Consumers’ Co-operative Societies, Held 6th to 10th April, 1920”, Sydney: The Worker Trade Union Print, p. 30.
13 Craig, John G., “The Nature of Co-operation,” p. 28.
14 Lambart, Paul, “Studies in the Social Philosophy of Co-operation,” p. 40.
15 ibid.
16 ibid.
17 Owen, Robert, "A New View of Society" (originally published in 1813/1814), in Gartrell, V.A. (ed.), "Report to the County of Lanark / A New View of Society", Ringwood: Penguin Books, 1970, p. 246.
18 Engels, Frederick; as translated by Aveling, Edward; “Socialism: Utopian and Scientific”, Melbourne: Andrade’s / Smithson Bros., 1918, p. 27.
19 ibid., p. 37.
20 Marx, Karl; and Engels, Frederick; “The Communist Manifesto”, Melbourne: Communist Party of Australia / Ruskin Press, 1932?, p. 39.
21 Lukes, Steven, “Marxism and Morality”, Oxford: Clarendon Press, 1985, pp. 9 - 11.
22 ibid., pp. 17-29.
23 Long, Ted,”Helping Each Other Through Co-operatives: Revised Edition”, Melbourne: Co-operative Development Society, 1961, pp. 10 - 5, and 22.
24 Lambart, Paul; as translated by Létarges, Joseph; and Flanagan, D.; “Studies in the Social Philosophy of Co-operation”, (originally published March 1959), Manchester: Co-operative Union, Ltd., 1963, p. 40.
25 ibid., p. 40.
26 ibid., p. 231.
27 Gide, Charles; as translated from French by the Co-operative Reference Library, Dublin; "Consumers' Co-operative Societies", Manchester: The Co-operative Union Limited, 1921, pp. 131-2.
28 Lewis, Gary John, “A Middle Way: Rohcdale Co-operation 1859 - 1985”, Curtin: ACT: Australian Association of Co-operatives, 1992.p. 180.
29 "The share of retail trade done by the Co-operative Societies has been dropping fairly steadily during the decade of the sixties; while the multiples increased their turnover by over 80 per cent the Co-operative increased by only 10 per cent and indeed, except in foods, the volume of their sales actually decreased... the Co-ops find change difficult simply because they are not solely commercial organizations but have a social philosophy and political affiliations. Each store has a good deal of autonomy and committee members are often unwilling to close down a small shop - even if it is demonstrably inefficient." - Williams, Gretrude, “The Economics of Everyday Life: Third Edition”, Ringwood: Penguin Books, 1972, p. 117.
30 Haymarket Business Publications Ltd., "Careers: Company CV: The Co-operative Group" in "Marketing", accessed via Expanded Academic ASAP / Thomson Gale / La Trobe University Library, 27 March 2006, p. 50.
31 Co-operative Group (CWS) Limited, “The Co-operative Group Annual Review 2005”, New Century House, Manchester: Co-operative Group (CWS) Limited, 2005, pp. 4 - 6.
32 Engels, Frederick; as translated by Aveling, Edward; “Socialism: Utopian and Scientific”, Melbourne: Andrade’s / Smithson Bros., 1918, p. 27.
33 ibid., p. 37.
34 Marx, Karl; and Engels, Frederick; “The Communist Manifesto”, Melbourne: Communist Party of Australia / Ruskin Press, 1932?, p. 39.
35 Lukes, Steven, “Marxism and Morality”, Oxford: Clarendon Press, 1985, pp. 9 - 11.
36 Engels, “Socialism: Utopian and Scientific”, p. 25.
37 Lukes, Op. Cit., pp. 17-29.
38 ibid., pp. 40-1.
39 Cole, G.D.H., “A Century of Co-operation”, Oxford: George Allen & Unwin Ltd., 1944, p. 28.
40 Potter, Beatrice, “The Co-operative Movement in Great Britain”, London: Swan Sonnenschein & Co., 1891, pp. 15-6.
41 The Apple Lisa, the predecessor of the Apple Macintosh, was a desktop computer introduced in the early 1980s. It introduced consumers to a number of features that were ahead of their time (such as a mouse-driven graphical interface, virtual memory, multitasking, etc.) which have since become standards. Yet, due to its flawed implementation, the Apple Lisa failed in the marketplace.
42 Owen, Robert, "A New View of Society" (originally published in 1813/1814), in Gartrell, V.A. (ed.), "Report to the County of Lanark / A New View of Society", Ringwood: Penguin Books, 1970, p. 207.
43 ibid., p. 222.
44 ibid., p. 222.
45 ibid., p. 223.
46 ibid., pp. 222-3.
47 Lambart, Paul, “Studies in the Social Philosophy of Co-operation”, pp. 180-4.
48 Potter, Beatrice, “The Co-operative Movement in Great Britain”, p. 215.
49 ibid., pp. 199-204.
50 Owen, Robert, "A New View of Society", pp. 242, 246-7.
51 Lambart, Paul, “Studies in the Social Philosophy of Co-operation”, p. 40.
52 Owen, Op. Cit., p. 246.
53 ibid., p. 236.
54 Cole, G.D.H., “A Century of Co-operation”, p. 19.
55 Owen, Robert, "A New View of Society", pp. 18-9.
56 Cole, op. Cit., pp. 59 and 408.
57 ibid., pp. 62-3.
58 ibid., p. 155.
59 Lyons, Mark, “Third Sector: The Contribution of Nonprofit and Co-operative Enterprise in Australia”, St. Leonards, N.S.W.: Allen & Unwin, 2001, p. 13.
60 Cole, Op. Cit., p. 37.
61 ibid., p. 63.
62 Pulsford, Frank, “The Place and Power of Idealism in the Co-operative Movement”, in New South Wales Co-operative Union, “First Australian Congress of Consumers’ Co-operative Societies, Held 6th to 10th April, 1920”, Sydney: The Worker Trade Union Print, p. 30.
63 This discussion is based on Cole, “A Century of Co-operation”, pp. 63-74; as well as analysis of co-operatives and corporations in Donnelly, Mary, “Co-operatives: What are They? What do They do? How Can They Help You?”, Sydney: Australian Association of Co-operatives Ltd., 1989, p.4; Charles, Graeme, and Griffiths, David, “The Co-operative Formation Decision: Discussing the Co-operative Option”, Frankston: Co-operative Federation of Victoria Ltd., 2003 and 2004, p.3.
64 Birchall, Johnston, “Co-op: The People’s Business”, Manchester and New York: Manchester University Press, 1994, p. 54.
65 Op. Cit.
66 Craig, John G., “The Nature of Co-operation”, Montreal: Black Rose Books, 1993, p. 33.
67 Cole, G.D.H., “A Century of Co-operation”, p.89.
68 Craig, Op. Cit., pp. 24-5.
69 ibid., p. 34.
70 Gide, Charles, "Consumers' Co-operative Societies",p. 122.
71 ibid., p. 122.
72 Craig, John G., “The Nature of Co-operation”, p. 164.
73 ibid., p. 166.
74 ibid., p. 165.
75 ibid., p. 166.
76 Lukes, Steven, “Marxism and Morality”, pp. 9 - 11.
77 Gide, Charles, "Consumers' Co-operative Societies",p. 198.
78 ibid., pp. 5 - 6.
79 ibid., p. 7.
80 ibid., p. 9.
81 Cole, G.D.H., “The British Co-operative Movement in a Socialist Society: A Report for the Fabian Society”, London: George Allen & Unwin Ltd., 1951, pp. 77, 82-3, and 118.
82 ibid., pp. 140-2.
83 ibid., pp. 81-2.
84 The Mutual Store Limited on the Co-operative Principle, “Objects and Constitution of the Society with Catalogue of Stock”, Melbourne: Stillwell and Co. Printers, April 1881, pp. iii - 2, and 162.
85 Equitable Co-operative Society Limited, Melbourne; “Rules of the Equitable Co-operative Society Limited, Melbourne”, Melbourne: Mason, Firth, & McCutcheon, General Printers, 1882.
86 The People’s Co-operative Society, Williamstown, Limited, “Articles of Association of The People’s Co-operative Society, Williamstown, Limited”: Williamstown: Publisher and date unknown.
87 Lyons, Mark, “Third Sector”, p. 99.
88 ibid., p. 99.
89 Craig, John G., “The Nature of Co-operation”, p. 164.
90 Australian News and Information Bureau, “Co-operatives in Australia”, Canberra: Australian News and Information Bureau, 1972, p. 4.
91 Lewis, Gary John, “A Middle Way”, p. 56.
92 Burke, J.A., “The Starting of New Societies” in New South Wales Co-operative Union, “First Australian Congress of Consumers’ Co-operative Societies, Held 6th to 10th April, 1920”, Sydney: The Worker Trade Union Print, pp. 141-4.
93 ibid., p. 142.
94 Ministerial Advisory Committee on Co-operation, “The Co-operative Way: Victoria’s Third Sector: M.A.C.C. Report 1986”, Melbourne: Ministerial Advisory Committee on Co-operation, pp. 35-6.
95 Lewis, Gary John, “A Middle Way”, p. 18.
96 ibid., p. 18.
97 ibid., p. 25.
98 ibid., p. 26.
99 Australian News and Information Bureau, “Co-operatives in Australia”, p. 9.
100 Lane, M.J., "Opening Remarks", in Co-operative Federation of Australia, "Australian Co-operatives National Convention Report", Canberra: Co-operative Federation of Australia, August 1973, p. 14.
101 New South Wales Co-operative Union, “First Australian Congress of Consumers’ Co-operative Societies, Held 6th to 10th April, 1920”, Sydney: The Worker Trade Union Print, 1920, pp. 56 - 65, and pp. 86 - 99.
102 ibid., p. 70.
103 Burke, J.A., “The Starting of New Societies”, p. 146.
104 Griffiths, David, "Co-operation Between Co-operatives", http://www.australia.coop/publish/article_240.php Uploaded 12/2/2006 Downloaded 23/2/2006.
105 Lyons, Mark, "Co-operatives in Australia: A Background Paper," Sydney: University of Technology, June 2001, p. 10.
106 Hobsbawm, Eric, “The Age of Extremes: The Short Twentieth Century: 1914 - 1991”, London: Abacus Books, 1994, p. 74.
107 ibid., p. 66.
108 O'Sullivan, Hugh, "The Chatter of Wooden Clogs: A Challenge for Today's Young Worker", Granville: Australian Young Christian Workers Movement, 1991, p. vii.
109 Long, Ted,”Helping Each Other Through Co-operatives: Revised Edition”, Melbourne: Co-operative Development Society, 1961, p. 4.
110 National Catholic Rural Movement, “Fruits of the Vine: Handbook of the National Catholic Rural Movement”, Fitzroy: Australian Catholic Publications, 1958, p. 7.
111 Giddens, John, “Invest in the Future of Your Credit Society”, Melbourne: The Australian Catholic Truth Society, 20th October, 1963, p. 3; and Long, “Helping Each Other Through Co-operatives”, pp. 5, and 13. This having been said, in 1966 the ICA updated the Rochdale Principles (as listed in Appendix B), removed “[Partisan] political and religious neutrality”, “Trading strictly on a cash basis”, and “Selling only pure and unadulterated goods” as principles, and officially added in “Co-operation between co-operatives” (i.e. Co-operative Federalism) as a principle.
112 Long, ibid., pp. 10 - 5, and 22.
113 Long, ibid., pp. 5-7.; as well as Pepper, Susan, “ GIving Credit to the People: A History of the Credit Co-operative Movement in Victoria”, Windsor, Vic: The Victorian Credit Co-operative Association, 1985, pp. 11 - 34.
114 Griffiths, David, "Co-operation Between Co-operatives", http://www.australia.coop/publish/article_240.php Uploaded 12/2/2006 Downloaded 23/2/2006.
115 National Catholic Rural Movement, “Fruits of the Vine”, p. 9.
116 ibid., pp. 87-92.
117 ibid., p. 26.
118 ibid., p. 114.
119 ibid., pp. 113 - 5.
120 Registrar of Co-operative Societies (Victoria), “Annual Report of the Registrar”, 1955 Edition, Melbourne: Government Printer, 1955, pp. 1 - 5.
121 Registrar of Co-operative Societies (Victoria), “Annual Report of the Registrar”, 1972 Edition, p. 4.
122 Registrar of Co-operative Societies (Victoria), “Annual Report of the Registrar”, 1975 Edition, p. 3.
123 ibid., p.5.
124 Jenkinson, Jo, “A History of The Emerald and District Co-operative Society”, Emerald: Emerald Museum, 2005, pp. 32-9.
125 Registrar of Co-operative Societies (Victoria), “Annual Report of the Registrar”, 1971 Edition, p. 5.
126 The YCW Central Credit Co-operative, for instance, being folded into the Hibernian Credit Co-operative in 1977 (Registrar of Co-operative Societies (Victoria), “Annual Report of the Registrar”, 1977 Edition, p. 9.) while the YCW Co-operative’s breakaway Geelong branch folded in 1971. (Registrar of Co-operative Societies (Victoria), “Annual Report of the Registrar”, 1971 Edition, pp. 4-5.)
127 Mathews, Race, “B.A. Santamaria and the Marginalising of Social Catholicism: A Study in Unintended Consequences,” Unpublished paper preparaed for ‘The Great Labor Split 1955: Fifty Years Later’ Conference, Parliament House, Melbourne, 15th and 16th April, 2005.
128 Griffiths, David, "Co-operation Between Co-operatives", http://www.australia.coop/publish/article_240.php Uploaded 12/2/2006 Downloaded 23/2/2006
129 Registrar of Co-operative Societies (Victoria), “Annual Report of the Registrar”, 1971 Edition, p. 4.
130 Griffiths, Op. Cit.
131 Registrar of Co-operative Societies (Victoria), “Annual Report of the Registrar”, 1973 Edition, p. 4.
132 Registrar of Co-operative Societies (Victoria), “Annual Report of the Registrar”, 1974 Edition, p. 5.
133 Registrar of Co-operative Societies (Victoria), “Annual Report of the Registrar”, 1976 Edition, p. 4.
134 Craig, John G., “The Nature of Co-operation”, p. 38.
135 ibid.
136 Hamer, Hon. Sir R.J., “Closing Address to the Conference on Structural Change and Employment”, in State Government of Victoria, “Work for Tomorrow!: Proceedings of the Victorian Government Conference on Structural Change and Employment”, Stonnington: State Government of Victoria, 12th to 14th December, 1978, p. 444.
137 ibid., p. 444.
138 The Co-operator, “CDP: What Next?”, in “The Co-operator: Victoria’s Journal of Co-operative Affairs”, No. 2., Sept. / Oct. 1984, p. 5.
139 Greer, Brian, “A Review of Worker Co-operative Development Agencies in Australia”, Canberra: Department of Education and Youth Affairs, 1984, p. 10.
140 ibid.
141 Kison, Rose (ed.), “Managing a Community Employment Co-operative”, Melbourne: Victorian Ministry of Employment and Training, 1951, pp. 1-3, and 9.
142 Ministerial Advisory Committee on Co-operation, “The Co-operative Way”, p. 53.
143 Greer, Brian, “A Review of Worker Co-operative Development Agencies in Australia”, p. 10.
144 Department of Management and Budget, "Victoria: The Next Step: Economic Initiatives and Opportunities for the 1980s: Detailed Papers", Melbourne: State Government of Victoria, April 9th, 1984, p. 25.
145 Charles, Graeme; and Griffiths, David; "The Co-operative Formation Decision: Discussing the Co-operative Option", Frankston: Co-operative Federation of Victoria, 2003, p. 7.
146 Burke, Joe; and Griffiths, David; “Democracy at Work”, in Society: Magazine of Social Issues, Woden: Australian Institute of Criminology, November 1986, p. 16.
147 Ministerial Advisory Committee on Co-operation, “The Development of the Co-operative Movement in Victoria”, Melbourne: Ministerial Advisory Committee on Co-operation, 1984, p. 5.
148 Ministerial Advisory Committee on Co-operation, “The Co-operative Way”, p. 23.
149 ibid., p. 23.
150 Ministerial Advisory Committee on Co-operation, “Co-operation in Victoria”, Melbourne: Ministerial Advisory Committee on Co-operation, 1985, p. 5.
151 ibid., pp. 5 and 10.
152 Ministerial Advisory Committee on Co-operation, “The Co-operative Way”, p. 65.
153 ibid., p. 66.
154 ibid., p. 63.
155 Meredith, Geoffrey Grant; and Greer, Brian; “Democracy Through Education: The Development of Co-operative Education and Training in Victoria: Prepared for the Ministerial Advisory Committee on Co-operation,” Melbourne: Ministerial Advisory Committee on Co-operation, December, 1984, pp. 36 and 101.
156 ibid., pp. 15, 36, and 41.
157 Ministerial Advisory Committee on Co-operation, “The Co-operative Way”, p. 94.
158 ibid., p. 71.
159 ibid., pp. 69-70, and 73.
160 ibid., pp. 119-21.
161 ibid., pp. 83 - 4.
162 ibid., pp. 67, 82, 102 - 4 and 119.
163 Alderton, Glen, “Pride and Poverty: An Examination of Unfilled Needs”, Fitzroy: The Brotherhood of St. Laurence Needs Action Review, 1980.
164 Brotherhood of St. Laurence, “Co-ops Save”, in “Action”. no. 250, December 1983, p. 3.
165 Brotherhood of St. Laurence, “Mr Vu” in “Action”, No. 249, October 1983, p. 4.
166 Manton, Joe, et. al., “Under Current Co-op Helpful Information for Co-ops”, Fitzroy: Under Current Co-op., September 1983, p.2.
167 Brotherhood of St. Laurence, “Co-ops Save” in “Action”, No. 250, December 1983, p. 3.
168 Bourn, Alison, et. al., “Food Co-operatives in Victoria by The Victorian Food Co-operative Study Group”, Collingwood: Victorian Food Co-operative Study Group, July 1984, p. 2.
169 Victorian Food Co-operative Study Group, “Moving Food Co-operative Limited, the Food Co-operatives’ Warehouse: Business Plan,” Collingwood, Vic.: Victorian Food Co-operative Study Group, 1985, p. 13.
170 Bourn, Alison, et. al., Op. Cit.
171 Bourn, Alison; Hayward, Louise; Luker, Trish; “Development of the Food Co-operative Sector: Appropriate Resource Provision,” Collingwood, Vic: Victorian Food Co-operative Study Group, 1985, pp. 29-30, 37- 8, 52 and 703.
172 Bourn, Alison, et. al., Op. Cit., pp. 47, 57, 67, and 70.
173 ibid., pp. 94-5.
174 Victorian Food Co-operative Study Group, “Moving Food Co-operative Limited:”, pp. 53-5, p. 70.
175 Victorian ALP 1985 Election Platform (authorised by Peter Batchelor), “Social Justice: The Next 4 Years: John Cain and Victoria. The Partnership Works.”, Carlton: Victorian ALP, 1985, p. 9.
176 Keenan, Michelle, “Government Wastes Resources in Food Co-operative Sector”, in “The Co-operator”, No 12: June 1986, p. 6.
177 Murray, Robert, and White, Kate, “The Fall of the House of Cain”, Melbourne: Spectrum Publications, 1992, p. 67.
178 Lambart, Paul, “Studies in the Social Philosophy of Co-operation”, p. 40.
179 ibid.
180 Albo, Gregory, “Popular Power and Democratic Administration,” in Albo, Gregory; Langille, David; and Panitch, Leo (eds.), “A Different Kind of State? Popular Power and Democratic Administration”, Toronto: Oxford University Press, 1993, p. 32.
181 Panitch, Leo, “A Different Kind of State?”, in Albo, Gregory; Langille, David; and Panitch, Leo (eds.), “A Different Kind of State? Popular Power and Democratic Administration”, Toronto: Oxford University Press, 1993, pp. 6-7, p. 11.
182 ibid.
183 Brownstone, Meyer, “Moving Beyond the Limited Democracy of Social Democracy”, in Albo, Gregory; Langille, David; and Panitch, Leo (eds.), “A Different Kind of State? Popular Power and Democratic Administration”, Toronto: Oxford University Press, 1993, p. 183.
184 Wikimedia Foundation, “Home - Wikimedia Foundation”, http://wikimediafoundation.org/wiki/Home
185 Free Software Foundation, “GNU Free Documentation License”, http://www.fsf.org/licensing/licenses/fdl.html
186 Leadbeater, Charles, “The Enterprises that People Trust,” in “The New Statesman,” Vol. 129, No. 4428, 1996.
187 Hobsbawm, Eric, “The Age of Extremes, pp. 74-5.
188 Landry, Charles; Morley, David; Southwood, Russell; and Wright, Patrick; “What a Way to Run a Railroad: An Analysis of Radical Failure”, London: Comedia Publishing Group, 1985, pp. 9-10.
189 Suzuki, David; and Dressel, Holly; “Good News for a Change: Hope for a Troubled Planet”, St. Leonards, N.S.W.: Allen & Unwin, 2002, p. 42.
190 ibid., pp. 41 - 4.
191 Latham, Mark, “The Latham Diaries”, Carlton: Melbourne University Press, 2005, pp. 9 - 18.
192 North East Telecommunications Co-operative Ltd., “NETC Portal - About NetC”, http://www.netc.coop/about_netc, downloaded 1/8/ 2006.
193 Tau Ceti Co-operative Ltd., “About the Tau Ceti Co-operative,” http://www.tauceti.org.au/aboutTauCeti.shtml, downloaded 1/8/ 2006.
194 The New International Bookshop Cooperative, “The New International Co-operative Bookshop Cooperative: About Us”, http://www.nibs.org.au/?page_id=2, downloaded 1/8/ 2006.
195 Progressive Broadcasting Service Co-operative, “PBS 106.7FM - About”, http://www.pbsfm.org.au/Index.asp?Action=Section&ID=232&Title=About, downloaded 1/8/ 2006.
196 East Melbourne Childcare Co-operative “What is the EMCC?”, http://emcc.org.au/index.php?page=emccwhat, downloaded 1/8/ 2006.
197 OPEN CHANNEL Cooperative, “Membership”, http://www.openchannel.org.au/a_join.html ; and “About Us”, http://www.openchannel.org.au/about.html, downloaded 1/8/ 2006.
198 Victorian Aboriginal Health Service Co-operative Ltd., “Victorian Aboriginal Health Service Co-operative Ltd.”, http://www.inform.webcentral.com.au/t_vicaborig.htm, downloaded 1/8/ 2006.
199 Bendigo Squash Centre Co-operative Limited “Bendigo Squash Club... Proving Fitness can be Fun!: History of the Bendigo Squash Centre Co-operative Limited”, http://www.bendigosquashclub.com/about.htm, downloaded 1/8/ 2006.
200 Olinda Ski Club, “About Olinda Ski Club”, http://www.skioldina.org.au/, downloaded 1/8/ 2006.
201 A list of Victorian Co-operative society websites is online at: Co-operative Development Services Ltd., “Links to Victorian Co-operatives”, http://www.coopdevelopment.org.au/viclinks.htmldownloaded 1/8/ 2006; a number of Co-operative profiles is available online at: Co-operative Federation of Victoria, “Co-operative Profiles”, http://www.australia.coop/case_studies.htm, downloaded 1/8/ 2006.
202 Co-operative Purchasing Services Ltd., “About CPS”, http://www.cps.asn.au/about_cps.cfm, downloaded 1/8/ 2006.
203 Co-operative Federation of Victoria, “Australia.coop Front Page”, http://www.australia.coop/publish/index.php, downloaded 1/8/ 2006.
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