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ABMC 2012 Presentation Evolution or Devolution: Toyohiko Kagawa’s Attempt to Create a Stable Cooperatives-based World Federation in an Apoplectic Era Toyohiko Kagawa: 1888-1960 Stig Lindberg 11/18/2012 3rd Annual ABMC, Ramada Inn, Osaka Why Economic Cooperatives & Why Kagawa? 2012: United Nations’ Year of the Economic • “It is almost cliché´ toCooperative say that those who do not know history are bound to repeat it. That usually is applied to the history of errors. Yet those who know the history of great ideas, the figures who thought them and moved them from theory to reality, do not mind and may even seek to repeat history.” • “…the rich are getting richer and the poor are getting poorer…our environment is being mined with increasingly calamitous results. If democratic countries are to preserve their political democracy in the face of multinational business, they need to build their economic democracy.” • “In remembering Toyohiko Kagawa, we in the cooperative movement are reminded that the actions of an individual may have a profound influence on the world. Cooperative economy is a promising idea. The effective communication of that idea makes all the difference.” (A Discussion Course on Cooperatives. East End Food Co-op. Pittsburgh, 2007. pp. 11, 12, 21) “Civilization needs a new operating system” (Paul Hawken) rd • Rash of capitalism is broken & 3 Way books & orgs. – The Enigma of Capital and the Crises of Capitalism (David Harvey) – Beyond the Global Capitalist Crisis: The World Economy in Transition (Berch Berberoglu) – Global Capitalist Crisis and the Second Great Depression: Egalitarian Systemic Models for Change (Armando Navarro) – Global Capitalism: Its Fall and Rise in the Twentieth Century (Jeffry A. Frieden ) – America the Possible (Gus Speth) – Patient Capital (Acumen Fund): a third way that seeks to bridge the gap between the efficiency and scale of market- based approaches and the social impact of pure philanthropy. Kagawa’s New Operating System: • Trade unionism • Guild Cooperativism/Collectivism/Democracy • Industrial democracy • Brotherhood Economics/Christian Socialism • “Dynamic Socialized Personalism” • 「動的人格的社会化主義」 “Dynamic Socialized Personalism” To create a more just & equitable society focused on individual dignity – Structure: • Producers’ cooperatives: 1. Emphasize personal dignity & creativity 2. Increase productivity through this empowerment 3. Increase efficiencies for the betterment of society • Consumers’ cooperatives: 1. Eliminate middleman 2. Help ensure fair price for producers 3. Regulate consumption with the aim of making consumption an art. Eliminate waste & conspicuous consumption Kagawa’s Political Economy: “dynamic subjective personhood-based society- building” True Industrial Democracy is premised upon a collective social consciousness, overcomes exploitation, returns profits, regulates concentration of wealth, creates a commonwealth based on one-person, one- vote, and preserves the integrity of unions to accomplish jobs too large for individuals*, abolishes the management-labor class tension, eliminates unemployment, restores trust & credit and guarantees a minimum living standard. (13:151) Quandary: if the goal is to create a society conducive to personal fulfillment… • Trade Unionism (the form) is a necessary social context for the ultimate goal of liberating the human personality and for self-realization. CONTEXT • A certain degree of personal liberation and self-realization (the substance) is a prerequisite for the cooperative system to succeed, to avoid ossification and to being condemned to just another “perfunctory system.” SUBTEXT Solution: 1905: Kagawa first learns about economic cooperatives by Japanese lecturer (idea) 1916: Kagawa witnesses the textile workers’ strike/ demonstration in Manhattan (idea in action) 1919/20: Kagawa establishes 1st cooperatives 1925 visit to Askov folk higher school, Denmark: “… Kagawa thought he discovered the primary reason for the remarkable success of the Danish Cooperative Movement…advanced education during the off-season…strong craft-orientation… particularly attracted by the program’s successful rationalization of Lutheran pietism into a workingman’s ethic which preserved the intrinsic worth and dignity of manual labor.”(The New Jerusalem: 181)=>Japan Farm Village Evangelical Association, est. 1927 Consumer Cooperative Storefront Solution: Modus Operandi • The Socio-economic Component: – Establish schools to educate the masses in the ideas of Christian Socialism, which includes cooperative economics – Establish a full array of cooperatives 1. Insurance/health 2. Production 3. Marketing: purchasing & selling 4. Credit 5. Education & unemployment 6. Utilities 7. Consumer Solution: Modus Operandi, cont’d. • The Political Component: – Organization of self-governing enterprises – Proletariat takeover of existing parliamentary institutions: • Social Congress: – protect interests of the consumers & nonproletarians (artists, scholars, homemakers, etc.) (New Jerusalem: 227) – Settle legislative, judicial, administrative problems – Charged with promotion of national culture, morality & aesthetics – Power over provisional police force • Industrial Congress : – Oversee conversion from capitalism to state cooperativism, including property communalization – Budgetary control – Supervise annual redistribution of all state surplus – Levy taxes GOVERNMENT OF A CO-OPERATIVE STATE SOVEREIGN SUPREME COURT JUDICIAL CABINET ADMINISTRATIVE LEGISLATIVE Social Congress Industrial Congress Cooperative Labor Union Federation Federation 1. Insurance cooperative Various labor TO INITIATE LEGISLATION 2. Producers’ " unions including 3. Marketing " farmers’ and TO INITIATE LEGISLATION ON ON 4. Credit " fishermen’s •Taxes •Religion, thought, 5. Mutual Aid " organizations •Relation to National education 6. Utilities " Enterprises 7. Consumers’ " •Ethics, art, customs •Changing private property •Diplomacy system to cooperative system •Social Problems •Related economic measures: •Military and Police Affairs budgetary control •National Enterprises •State surplus redistribution •National Budget Union Organization • Unions for each trade would be integrated at the regional and national level into guilds, following the functional conceptualization of the British Guild Socialist, G.D. H. Cole (New Jerusalem:224) • Factories would become pleasant places to work where the laborer would find restored opportunities to create and invent freely in a humanized environment… (loc. Cit.) a la Google, Apple, Oracle, etc. Characteristics of the Guild Government & Society • No political party • All property, with few exceptions, state-owned • Surplus wealth redistributed periodically & equally on basis of need, not merit (productivity): supreme goal= just distribution rather than maximum production • No state seizure of private property, but over time the wealthy would be persuaded to donate their holdings to the state • No wages, but full remuneration (by unspecified means) • State subservient to the individual: no “organic state” • No production of luxury goods (New Jerusalem: 228-232) The Mature Guild Society • “Under the carefully rationalized controls instituted by the Cooperative Diet, overproduction would be completely eliminated and periodic unemployment and cyclical panics would vanish forever.” (New Jerusalem: 229) • “With all accidents, sicknesses (etc.) covered by the national insurance program, with the right to inherit property or wealth abolished, with no luxury items available to arouse the desire for possession, for what really would one save? Freed from the psychopathology of greed and the kinds of anxieties typical of capitalism, man would be absolutely liberated to cultivate his spiritual and aesthetic growth and search for personal salvation.” (New Jerusalem: 229) I Have A Dream “…continuing to write of the coming age of brotherhood and love, a peaceful and nonviolent world founded upon international cooperative institutions. Thus, he looked far beyond the short range goal of Japan, the powerful nation state, to the day when national boundary lines would dissolve, racial and creedal differences would disappear, and all men would respect one another equally as brothers.” (New Jerusalem: 230) Kagawa Invited to Teach Cooperative Economics in U.S. • President Roosevelt invites Kagawa to the U.S. in 1936 to foster the cooperative movement – Dilemma: • Crippled capitalism triggers worldwide depression • Communism & fascism spread as solutions; Pres. Roosevelt pressed to find a solution viable for democratic America and looks to Kagawa as the leader of Japan’s thriving cooperative movement – Kagawa embarks on a whirlwind lecture circuit in the U.S., culminating in his hallmark lecture at Rochester Divinity School, which led to the book Brotherhood Economics Kagawa’s Teaching on Cooperatives in the U.S. • Q: Does the co-operative idea destroy personal initiative? • A: We don’t want to destroy personal initiative. It is too sacred. What we need is the socialization of profit and doing away with the exploitation motive. (Kagawa in Lincoln’s Land: 109) Kagawa Resumes Cooperative Movement after WWII with World Federation in Mind • Ist Asian Council of International Cooperative Alliance held in Hiroshima. Kagawa presides • 3rd conference held in Malaysia in 1958; Kagawa on directorial board • Student Movement in U.S. leads to roughly have the states’ legislatures adopting the World Federation manifest • A similar ratio of prefectures and Diet members in Japan sign on Kagawa en route to Asian Council
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