History of cooperatives

Summary

This video script delves into the history of cooperatives, from ancient human groupings to the industrial revolution's impact on workers' livelihoods. It highlights the 19th-century emergence of the cooperative movement in Britain, spurred by economic transformations. The script details the establishment of the Rochdale Equitable Pioneers Society in 1844, which laid the foundation for modern cooperatives with the Rochdale Principles. It also touches on the global spread of cooperatives, their various forms, and their significance in the Philippines, emphasizing the movement's transformative role in social and economic development.

Takeaways

• 🏘️ The history of cooperatives dates back to ancient times with human groupings found in natural environments like caves, valleys, rivers, lakes, and seas.
• 🌾 During medieval times, agricultural production led to the creation of markets, where surplus products and raw materials were sold, indicating the early stages of trade and commerce.
• 🔗 The Greeks in 300 BC formed associations known as 'synoikismos', an early form of organized trade in Europe.
• 🛍️ Between the 17th and 15th centuries, merchant guilds emerged to protect their social and economic interests and conducted long-distance business.
• 🏭 The Industrial Revolution in the 18th century in England significantly changed social and economic life, leading to the obsolescence of traditional industries due to new machinery and technology.
• 🔄 The cooperative movement began in Britain in the 19th century as a response to the Industrial Revolution and its impact on workers' livelihoods.
• 📦 The Rochdale Pioneers Society, established in 1844, is considered the first modern cooperative business, selling basic items and emphasizing high-quality, unadulterated goods.
• 📜 The Rochdale Principles, formulated in 1844, laid the foundation for the modern cooperative movement, emphasizing democratic control, open membership, and limited interest on capital, among other principles.
• 🌍 Today, cooperatives have a global reach, with around 800 million members and employing approximately 100 million people worldwide.
• 🏢 Cooperative banks or credit unions, which originated in Germany in the mid-19th century, have evolved to become integral parts of the financial sector.
• 📚 Beatrice Webb's 1891 publication, 'The Cooperative Movement in Great Britain', provided significant insights into the cooperative movement's development and principles.

Q & A

What evidence of early human groupings were discovered in ancient times?

Evidence of human groupings in ancient times were discovered in caves, valleys, rivers, lakes, and seas.

How did the agricultural production during medieval times influence the creation of markets?

Agricultural production stimulated the creation of markets where surplus products and raw materials were sold, indicating a shift from producing only for consumption to producing more for trade and commerce.

What was the significance of the 'ironoy' associations formed by the Greeks around 300 BC?

The 'ironoy' associations were significant as they were among the earliest known forms of organized cooperatives in Europe.

What role did merchant guilds play in the economic activities between the 17th and 15th centuries?

Merchant guilds protected the social and economic gains of their members and conducted business over long distances, performing all operations in merchandising goods, transporting, and retailing.

How did the Industrial Revolution in the 18th century impact the livelihoods of traditional workers?

The introduction of machines in factories rendered traditional industries unprofitable and caused misfortunes for many workers who depended on manual labor, such as weaving.

What was the Shore Porters Society and when was it established?

The Shore Porters Society claims to be one of the world's first cooperatives, established in Aberdeen, Scotland, in 1498.

What were the original items for sale when the Rochdale Pioneers opened their store in 1844?

The original items for sale were flour, oatmeal, sugar, and butter.

What are the Rochdale Principles and how many were there originally?

The Rochdale Principles were a set of guidelines for cooperative organizations, originally consisting of six principles, which included democratic control, open membership, limited interest on capital, and others.

Who is credited with inspiring the Rochdale Pioneers and what were their beliefs?

Robert Owen is credited with inspiring the Rochdale Pioneers. He believed in creating a good environment for workers with access to education for themselves and their children.

What was the impact of the cooperative movement on the worldwide economy?

The cooperative movement has a significant global impact, with around 800 million people as members of cooperatives and an estimated 100 million people employed by them.

How did the cooperative movement begin in the Philippines and what was its initial focus?

The cooperative movement in the Philippines began with the influence of Filipinos who had traveled to Europe and were impressed by the success of the cooperative movement there. The initial focus was on rural credit associations to support farmers.

Outlines

00:00

🌟 History of Cooperatives: From Ancient Times to the Industrial Revolution

This paragraph traces the history of cooperatives from ancient human groupings to the industrial revolution. It discusses how early humans formed groups for survival and how medieval agricultural production led to the creation of markets and trade. The paragraph highlights the development of merchant guilds and craft guilds, which were early forms of cooperatives. It then details the impact of the industrial revolution on traditional industries and the rise of the cooperative movement in Britain in the 19th century. The Shore Porters Society and the Fenwick Weavers Society are mentioned as early examples of cooperatives. The paragraph also covers the establishment of cooperative banks in Germany and the pivotal role of the Rochdale Pioneers in defining the modern cooperative movement through the Rochdale Principles.

05:01

🌐 Global Influence and Growth of the Cooperative Movement

This paragraph delves into the global spread and influence of the cooperative movement. It discusses the early popular support for consumer cooperation in European countries and the establishment of credit unions in the UK. The paragraph also touches on the development of British building societies as a form of financial cooperative. It then shifts focus to the history of cooperatives in the Philippines, highlighting the influence of European cooperative movements on Filipinos who traveled and studied abroad. The paragraph mentions key figures like Dr. Jose P. Reisel and Teodoro Sandico, who played significant roles in introducing cooperative concepts in the Philippines. It also covers the establishment of rural credit cooperatives and the enactment of laws to support the cooperative movement in the country.

10:01

🏛️ Legislative Support for Cooperatives in the Philippines

This paragraph focuses on the legislative support provided to cooperatives in the Philippines. It discusses Republic Act 821, which was enacted in 1952 to establish a system of liberal credit for small farmers and created the Agricultural Credit and Cooperative Financing Administration. The paragraph emphasizes the recognition of the strategic position of farmers in the country's social structure and economic development. It also acknowledges the contributions of Professor Mung Ellen and the production team behind the video in educating about the history and impact of cooperatives.

Keywords

💡Cooperative

A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. In the video's theme, cooperatives are presented as a response to the economic transformations brought about by the industrial revolution, aiming to protect the livelihoods of workers and provide a more equitable way of doing business. The script mentions the first modern cooperative business, the Rochdale Equitable Pioneers Society, as a key example.

💡Industrial Revolution

The Industrial Revolution refers to the period during the 18th and 19th centuries when agrarian, rural societies in Europe and America became industrial and urban. The video discusses how the introduction of machines in factories during this period caused significant changes in social and economic life, leading to the displacement of traditional industries and the rise of the cooperative movement as a means to counteract the negative impacts on workers.

💡Rochdale Principles

The Rochdale Principles are a set of guidelines established by the Rochdale Society of Equitable Pioneers in 1844 to define the operation of cooperative organizations. These principles include democratic control, open membership, limited interest on capital, and the distribution of surplus in proportion to a member's contribution, among others. The video highlights these principles as the foundation for the development and growth of the modern cooperative movement.

💡Merchant Guilds

Merchant guilds were associations of merchants or artisans that existed during the medieval times. They were formed to protect their social and economic interests and conducted business over long distances. The script mentions that these guilds performed all operations in merchandising goods, transporting, and retailing by the 12th century, highlighting their role in the development of trade and commerce.

💡Crafts Guilds

Crafts guilds were organizations of artisans or craftsmen in the medieval era, which started to split off and form separate organizations by the 12th century. The video script refers to the formation of these guilds as part of the evolution of trade and commerce, where they played a significant role in the economic life of the time.

💡Ironoy

The term 'ironoy' refers to associations formed by the Greeks as early as 300 BC. These were early forms of cooperatives, organized in a way that is reminiscent of the cooperative movement that would later develop in response to the industrial revolution. The script uses 'ironoy' as an example of early human groupings that laid the groundwork for modern cooperative structures.

💡

💡Cooperative Banks/Credit Unions

Cooperative banks or credit unions are financial cooperatives that are owned and controlled by their members. They were invented in Germany in the mid-19th century and have since become a significant part of the global financial landscape. The video script discusses their invention and the role they play in providing financial services to communities, particularly highlighting their establishment in the context of the cooperative movement.

💡Beatrice Webb

Beatrice Webb was a prominent figure in the cooperative movement in Great Britain. She authored 'The Cooperative Movement in Great Britain' in 1891, which the script mentions as a significant work contributing to the understanding and development of the cooperative movement. Webb's work is an example of the intellectual contributions to the cooperative ideology.

💡Dr. William King

Dr. William King is recognized in the script as an advocate for the establishment of cooperatives by the working classes. He founded 'The Cooperator,' a periodical that provided both cooperative philosophy and practical advice on running a shop using cooperative principles. His approach to education and practical guidance is highlighted as instrumental in the development of the cooperative movement.

💡Building Cooperatives

Building cooperatives are organizations where members pool resources to build housing, often using a significant amount of their own labor. Once the building is completed, each member becomes the sole owner of a homestead. The video script discusses building cooperatives as a form of cooperative that has evolved to meet specific housing needs, illustrating the diversity of cooperative models.

💡Agricultural Credit Cooperatives

Agricultural credit cooperatives are organizations that provide financial services to farmers, particularly in the form of credit. The script mentions the establishment of the Agricultural Credit Cooperative Association of Cabanachuan, Nueva, formed on October 18, 1916, as an example of such cooperatives. These cooperatives are part of the broader movement to support farmers in their economic activities.

Highlights

Ancient human groupings were discovered in natural environments like caves, valleys, rivers, lakes, and seas.

Medieval agricultural production stimulated the creation of markets for surplus products and raw materials.

People began to produce more than their needs to acquire money, leading to the development of trade and commerce.

Greeks formed associations known as 'ironoy' as early as 300 BC, indicating early forms of cooperatives.

Merchant guilds in 15th-17th century Europe protected social and economic interests and conducted long-distance business.

By the 12th century, crafts guilds had split off and formed organizations, performing all operations in merchandising.

The Industrial Revolution in 18th century England changed social and economic life, impacting traditional industries.

The cooperative movement began in Britain in the 19th century as a response to the Industrial Revolution.

The Shore Porters Society in Aberdeen, Scotland, established in 1498, claims to be one of the world's first cooperatives.

The Fenwick Weavers Society in 1761 expanded activities to include collective purchasing of food items and books.

Cooperative banks or credit unions were invented in Germany in the mid-19th century.

The Rochdale Principles were established in 1844, providing the basis for the modern cooperative movement.

The Rochdale Equitable Pioneers Society was the first modern cooperative business, selling high-quality goods.

Rochdale Principles included democratic control, open membership, and limited interest on capital, among others.

Bill Robert Owen is considered the first cooperative theorist and inspired the Rochdale Pioneers.

Dr. William King founded 'The Cooperator' in 1828, providing practical advice on running cooperatives.

Beatrice Webb authored 'The Cooperative Movement in Great Britain' in 1891, documenting its history.

Worldwide, cooperatives have around 800 million members and employ around 100 million people.

Cooperatives in the Philippines were influenced by European movements and began with rural credit associations.

Republic Act 821 in the Philippines established a system of liberal credit for small farmers in 1952.

Transcripts

history of the cooperative

during ancient times proofs of human

groupings were discovered in caves

valleys rivers lakes and seas

during medieval times agricultural

production stimulated the creation of

markets

surplus products and raw materials were

sold

at this economic stage people no longer

produced only what they could consume

they had to produce more to acquire more

money from their own needs and comforts

thus trade and commerce developed and

prospered

as early as 300 bc the greeks had formed

associations known as ironoy

which were organized in toy tonic europe

between the 17th and 15th centuries

merchant guilds arising from the need to

protect their social and economic gains

conducted business over long distances

by the 12th century

they performed all the operations in

merchandising goods

transporting and retailing by the 12th

century

all types of crafts guild start

splitting off and formed organizations

the industrial revolution started in the

18th century in england

it changed the social and economic life

of the people

the introduction of machines in

factories caused misfortunes to many

people who had depended mainly on

weaving for their livelihood

the traditional industries were rendered

unprofitable by other factories that

utilized better machines and technology

the cooperative movement began in

britain in the 19th century in response

to the industrial revolution and the

economic transformations that were

threatening the livelihoods of many

workers

there were earlier efforts by workers to

form cooperatives

the shore porters society claims to be

one of the world's first cooperatives

being established in aberdeen scotland

in 1498 the fenwick weavers society in

1761 foster high standards in the

weaving craft

but activities later expanded to include

collective purchasing of bulk food items

and books in 1769 members formed a

consumer cooperative and manhandled a

sack of oatmeal into john walker's

white-washed front room and began

selling the contents at a discount in

the decades that followed more scottish

cooperatives formed

including lennox town-friendly

vetu-aling society

founded in 1812 the focus of the lennox

town group was operation of the busy

linux mill

where tenants of the wood had a state

brought their corn to be ground

the printing of calico and other cotton

cloth was soon established as a major

industry in the area

cooperative banks or credit unions were

invented in germany in the mid 19th

century

by 1830 several hundred cooperatives had

been formed

some were initially successful but most

had failed by 1840.

it was not until 1844 when a cooperative

society established the roachdale

principles

on which they ran their co-op that the

basis for development and growth of the

modern cooperative movement was

established

in 1844 a group of 28 artisans working

in the cotton mills in the town of

roachdale

in the north of england established the

first modern cooperative business

the roachdale equitable pioneers society

initially there were only four items for

sale

these are flour oatmeal sugar and butter

[Music]

on december 21 1844 they opened their

store for only two nights a week

within three months they expanded their

selection to include tea and tobacco and

the business had grown so much that it

was open

five days a week they were soon known

for providing high quality

unadulterated goods the original

roachdale principles defining

cooperative organizations were

democratic control open membership

limited interest on capital

distribution of surplus in proportion to

a member's contribution to the society

cash trading only no use of credit

providing for the education of members

in cooperative principles

and political and religious neutrality

these have evolved somewhat over time

and the international cooperative

alliance

the official governing body of

cooperatives now considers the first

four of the roachdale principles central

to the governance of member

organizations with the last three deemed

important but not

vital the fact of the matter is that

many cooperatives have very clear

political or religious agendas

most also use credit as a means of sale

bill robert owen is the first

cooperative theorist and credited with

inspiring the roachdale pioneers

who in 1844 began the cooperative

movement at roachdale

lancashire owen believed in putting his

workers in a good environment with

access to education for themselves and

their children

these ideas were put into effect

successfully in the cotton mills of new

lanark

scotland owen had the idea of forming

villages of cooperation

where workers would drag themselves out

of poverty by growing their own food

making their own glows and ultimately

becoming self-governing

dr william king believed in starting

small

and realized that the working classes

would need to set up cooperatives for

themselves

so he saw his role as one of instruction

he founded a monthly periodical called

the cooperator

the first edition of which appeared on

may first 1828

this gave a mixture of cooperative

philosophy and practical advice about

running a shop using cooperative

principles

he proposed sensible rules such as

having a weekly account audit

having three trustees and not having

meetings in pubs

to avoid the temptation of drinking

profits charles fourier the pioneers

established the first consumer

cooperative

leading to a worldwide movement they

also experimented with a producer

cooperative

which soon failed beatrice webb

was the author of the cooperative

movement in great britain

1891. the roachdale pioneers as they

became known set out the roachdale

principles in 1844

which have been highly influential

throughout the cooperative movement

in modern form cooperatives date from

1844

then a group of 28 impoverished weavers

of roachdale

england founded a mutual aid society

called the roachdale society of

equitable pioneers

the successful example of cooperative

business provided by the roachdale

society

which also established between 1850 and

1855 where a flower mill

a shoe factory and textile plant was

quickly emulated throughout the country

[Music]

world cooperative movement worldwide

some 800 million people are members of

cooperatives

and it is estimated that cooperatives

employ some 100 million people

notable among the european countries in

which consumer cooperation received

early popular support were france

germany belgium austria italy

denmark finland norway and sweden

credit unions are also established in

the uk

the largest are work-based but many are

now offering services in the wider

community

the association of british credit unions

limited represents the majority of

british credit unions

british building societies developed

into general purpose savings and banking

institutions with one member

one vote ownership and can be seen as a

form of financial cooperative

although many demutualized into

conventionally owned banks in the 1980s

and 1990s

members of a building cooperative pool

resources to build housing

normally using a high proportion of

their own labor

when the building is finished each

member is the sole owner of a homestead

and the cooperative may be dissolved

history of cooperatives in the

philippines

filipinos who have traveled europe in

the later part of the 19th century must

have been impressed with the success of

a new economic movement

bringing about a gradual transformation

in the economic and social life of the

people

at the turn of the century filipinos in

increasing number

traveled and studied abroad and brought

home with them new ideas

two names worthy of note were doctor

jose p reisel and teodoro sandico

in dubpitton rizzle had his ideas and

cooperation partially fulfilled

he put up a school for the poor

community in a store with the help of

his pupils on a purely cooperative basis

one noteworthy group organized by

russell was a law sociedad the loss of a

coleros

society of abaco producers this

functioned for only one year

russell returned the members share

capital without any loss

teodoro sandico and his travels to

europe

must have had a close contact with the

cooperative movement in germany where he

came across with the ray fison movement

he was very much impressed by this type

of cooperative that he looked forward

for an opportunity to introduce it in

the philippines

the administration of the rural credit

law was entrusted to the bureau of

agriculture

the first rural credit association that

was organized under this law was the

agricultural credit cooperative

association of cabanachuan

nueva it was formed on october 18 1916

with this initial organization farmers

in different provinces were organized

at the end of 1926 there were 544 rural

credit cooperatives organized in 42

provinces and by 1930 there were 571

associations formed all over the country

in 1935 however about 90

of these cooperatives were inactive with

no funds left in their treasury

the cooperative marketing law act

was enacted and approved on december 9

1927

by 1939 only 164 societies were actually

organized with a total membership of

around 5 000

farmers with this number only 35

reported their sale of products to the

bureau of commerce

the number of associations reporting

indicated that only 20

of the organized associations were

active

in recognition of the strategic position

occupied by our farmers in the social

structure and economic development of

the country

the philippine congress enacted republic

act 821 in 1952

this law established a system of liberal

credit which is specially designed to

meet the needs of the small

farmers it also created an

administrative agency known as the

agricultural credit and cooperative

financing administration

special thanks to our beloved professor

mung ellen

and to the people behind the production

of this video