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Cooperatives
The International
Cooperative Alliance defines a cooperative as "an autonomous
association of persons [people or businesses] united voluntarily
to meet their common economic, social, and cultural needs
and aspirations through a jointly-owned and democratically-controlled
enterprise." Ownership by those who use the services, financing
through users, and distribution of profits in proportion to
use of the coop distinguish a cooperative from the typical
investor-owned model that characterizes most enterprise.
Cooperatives
are based on seven principles, developed by the International
Cooperative Alliance: voluntary and open membership; democratic
member control; member economic participation; autonomy and
independence; education, training, and information; cooperation
among cooperatives; and concern for community.
According
to the National Cooperative Business Association, in the United
States today there are 47,000 cooperatives which generate
over $120 billion in annual economic activity. These cooperatives
directly serve approximately 100 million Americans, or 40
percent of the population.
Coops are
generally divided into three types, based on who owns the
cooperative: consumer, producer and worker. A well-known example
of a consumer-owned cooperative is REI, the outdoor clothing
and equipment company. Other consumer-owned cooperatives are
smaller and include local grocery or health food stores. Typical
examples of producer-owned cooperatives are those owned by
farmers, who pool their resources to market the commodities
they produce, and utility cooperatives which provide electricity
to rural areas that otherwise may not receive service due
to their outlying location. The worker-owned manufacturing
Mondragon Commercial Cooperative in Spain has over 40,000
worker-members.
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