International Cooperative Alliance

International Cooperative Alliance Alan Brouder I. Introduction Th e International Cooperative Alliance (ICA) is an independent non-gov- ernmental organization (NGO) whose aim is to unite, represent, and serve cooperatives around the world. Th e ICA defi nes a cooperative as “an autono- mous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise” (ICA 1995). Its 227 member orga- nizations represent more than 800 million people in 91 countries, making it the world’s largest NGO by membership. ICA member cooperatives are conservatively estimated to employ some 100 million people worldwide, 20 percent more than all multinational companies combined. Cooperatives are a signifi cant presence in the global economy; each of the 300 largest cooperatives has an annual turnover of at least USD 100 million (ICA 2006). In 1994, the UN estimated on the basis of ICA membership alone that cooperatives contribute directly to improving the living standards of 3.1 billion people (A/49/213). Th e ICA is headquartered in Geneva, and has offi ces in Argentina, Belgium, Burkina Faso, Costa Rica, India, Kenya, and Singapore. It has the legal status of an association organized as a corporate body and is regulated by the Swiss Civil Code. II. Origins and Development Th e cooperative movement emerged in Britain in the fi rst half of the nine- teenth century in response to the social and economic upheaval of the industrial revolution. Dramatic changes in the nature and scale of production were accompanied by the decline of mercantilism, the consolidation of the market economy, and legislative reform conferring absolute property rights on landowners. Th e legislative and customary rights of the poor were grad- ually eroded as common lands were enclosed, prohibiting public access for grazing livestock, hunting game, and collecting fi rewood. For those in paid employment, wage levels ceased to be set by magistrates, and the Poor Law 156 Alan Brouder Amendment Act of 1834 introduced a new category of the poor – the unemployed person to whom no social assistance or ‘poor relief’ would accrue. Th is period also saw the collapse of trade unionism, rapid urbanization, a dou- bling of the population, and a concurrent drop in living standards. Prior to the introduction of government regulation towards the end of the century, labour conditions and product standards declined as factory, mill, and mine owners competed to maximize output and minimize costs. Although cooperative responses to these changes emerged as early as 1760 (and included major practical and theoretical contributions from Robert Owen and William King in the 1820s and 1830s), the movement found its fi rst successful expression in 1844 when the Rochdale Society of Equitable Pioneers was established by 28 artisans in the north of England. Having learned from the mistakes of earlier cooperative ventures, the Rochdale Pio- neers based their society on eight principles designed to ensure democratic member control and long-term viability. Th eir success was largely attrib- utable to the distribution of the surplus from their cooperative shop as a dividend on purchases; members were rewarded not as workers or investors, but as consumers. In addition, the principle of fi xed and limited interest on capital ensured that the cooperative was secure from any threat of takeover by external shareholders (Birchall 1997). Th e success and growth of their society proved that an alternative model of economic enterprise could thrive, even in a liberal market economy, providing that the principles were adhered to, and a supportive environment existed. In 1852 the movement received its fi rst legislative support with the passing of the Industrial and Provident Societies Partnership Act. Th e Rochdale principles were quickly adapted in other countries and applied to almost every sphere of economic activity. In Germany, the credit cooperative was developed in the 1850s and 1860s by Hermann Schultze- Delitsch and Friedrich Wilhelm Raiff eisen. Agricultural cooperatives quickly emerged in the United States, Denmark, and Switzerland, and spread rap- idly across Europe. Worker cooperation developed in France and became particularly strong in Italy. Cooperative housing developed in Germany and spread to Scandinavia and beyond. Health cooperatives arrived later in the form of ‘mutuals’, cooperative insurance schemes which spread the risk among as many people as possible, and took root particularly in Japan. By the twentieth century the cooperative model had been adopted in forestry, fi sheries, social care, and the provision of basic services. Cooperative leaders from across Europe began to visit each other as early as the 1850s in order to share ideas and to see what new forms the cooperative model was taking. Many early cooperators believed that creating a network across national borders was a natural and obvious progression for .

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