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

Co-operatives and Public Policy

Greetings from the

Master of Management – Co-operatives and Credit

Unions Program

Tom Webb

Co-operatives and Public Policy

Setting the Context•Co-operative Economics•Democratic Government

Co-operatives and Public Policy

Democratic Essentials

Collective Agenda and

Decisions

Equality of Persons not $$$1 Person – 1 Vote

Equity or fairness

EducationInformation

No Outside Control

ParticipationOpen to All

Liberty Community

Balance

Rights:Assembly

Speech

Robert Dahl

Co-operatives and Public Policy

Economy:

Complex set of relationships through which people provide themselves with

the goods and services they need.

Investor Owned

Not for profit & Family Business

Co-operative& Mutual Business

GovernmentDepartments& Agencies

Co-operatives and Public Policy

Scope for

discussion

1900 1945 1989 2009

Scope for

Discussion

?

Communist Revolution

Cold War

Co-operatives and Public Policy

Current Economy

Dominated byInvestor-owned Firms

withSingle bottom line

Operating inUnfettered Markets

One dollar one vote

Self-interest(greed)

Wealth =

GoodEnormous

Wealth Creation

Property Liberty

The long view…

EnergyCrisis

EnvironmentCrisis

Rate of Change

TechnologyCrisis

Urban Rural Crisis

Financial Melt Down

Food CrisisIncome

Distribution

Inter RelatedProblems of a Market Driven Investor-owned Economy

Co-operatives and Public Policy

Not a problem? Make a note

Values

Purpose

Principles

Justice

Being Clear About the Co-op Difference

The four pillars of co-operation

Co-operatives and Public Policy

Co-operatives and Public Policy

2009 Realities•Investor-owned, unregulated market system and democracy have few common values and significant values friction

•Co-operatives and democracy have no values friction

•Characteristics of current dominant causing or exacerbating major economic and social issues

•Trillions spent bailing dominant economic system out.

Smith’s Market

Small equal producers with none big enough to influence prices

Global Market:

Oligopolies supported by states

Co-operatives and Public Policy

Co-operatives and Public Policy

Problems with

unfettered markets

Only respond to

money

Often unstable &inefficient

Basic needs often unmet

Vulnerable to

speculation

Co-operatives and Public Policy

Problems with

growth

Firms too biglet to fail

Finite world

Failing to produce happiness

Political & Economic

fixation

Unhooked from need

Narrow accounting

On being seduced…

……….and the need for common sense

“If only mom had invested our family

allowances in mutual funds that

got 40% a year, we could have

retired by age 16”

But some people live

on $2 a day?

UsUs

Co-operatives and Public Policy

About common sense…

………….. And economic relationships

“I want to build our

relationship on

self interest and greed.

OK?”

“No, lets build

our economy

on it.”Us Us

Co-operatives and Public Policy

Co-operatives and Public Policy

Why Co-ops are Good Public Policy

•Less tension on democracy

•People centred = less exploitation

•They work – Europe/Co-op 300/Billion-3 billion

•Improved economic stability

•Less regulatory need

•Higher productivity

•Meet crisis points

Co-operatives and Public Policy

Why Co-ops are Good Public Policy

Respond to Emerging Crisis – Need over Greed

•Not casino capital nor foreclosure happy

•Food – need focus

•Energy – local and regional economies

•Community green focus

•Rural builders

•Income distributors

Co-operatives and Public Policy

•Value Co-op alternative•Increase co-op presence as a policy goal

•development •conversion

•Equitable not equal – housing/labour law/taxation•Encourage co-operative capital development•Challenge co-ops to meet social and economic needs•Co-op driven regulation based on co-operative problems

Guiding Principles of Good Co-operative Public Policy

Co-operatives and Public Policy

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

Guiding Principles of Good Co-operative Public Policy

Co-operatives and Public Policy

If Co-operators believe in themselves and the value of their alternative to the world

They will demand public policy

That makes the co-operative alternative A possibility for themselves and our

Children and grandchildren

Co-operatives and Public Policy

Thank you For

Your Kind Attention

Co-operatives and Public Policy

Co-operatives and Public Policy

Capitalism Works – For 20%

1996

Co-operatives and Public Policy

Financial Post

Forget oil,

the new global crisis is food

BMO strategist Donald Coxe warns

credit crunch and soaring oil prices will

pale in comparison to looming catastrophe.

Alia McMullen,  

Monday, January 07, 2008

Co-operatives and Public Policy

0

50

100

150

200

250

FAO FoodPrice Index

Co-operatives and Public Policy

Co-operatives and Public Policy

Co-operatives and Public Policy

Some Reading:

Mill, John Stuart (1852) Principles of Political Economy, 3rd Edition (p. 772).

Dahl, Robert, (1985) A Preface to Economic Democracy

Porritt, Jonathan, (2009) Living within our means: Avoiding the ultimate recession, Forum for the Future, Overseas House London

Homer-Dixon, Thomas (2007) The Upside of Down: Catastrophe, Creativity and the Renewal of Civilization, Random House, Toronto, Canada 

Soros, George (1997) The Capitalist Threat, Atlantic Monthly 279, No. 2 (February 1997) 45-58

Rubin, Jeff (2009) Why Your World is About to get a Whole Lot Smaller, Random Random House, Totonto, Canada

Mitchell, Alanna (2009) Sea Sick: The Global Ocean in Crisis, McClelland and Strewart, Toronto