member benefits democratic Adult Educators in Co-operative Development Agents of Change BRENDA STEFANSON Occasional Paper Series autonomyeducation community participatio C ENTRE FOR THE S TUDY OF C O - OPERATIVES A DULT E DUCATORS IN C O - OPERATIVE D EVELOPMENT: A GENTS OF C HANGE A DULT E DUCATORS IN C O - OPERATIVE D EVELOPMENT A GENTS OF C HANGE Brenda Gail Stefanson This paper was originally a thesis submitted to the College of Graduate Studies and Research in Partial Fulfilment of the Requirements for the Degree of Master of Science in Agricultural Extension at the University of Saskatchewan, Saskatoon. Centre for the Study of Co-operatives University of Saskatchewan Copyright © 2002 Brenda Gail Stefanson Centre for the Study of Co-operatives University of Saskatchewan All rights reserved. No part of this publication may be reproduced in any form or by any means without the prior written permission of the publisher. In the case of photocopying or other forms of re- prographic reproduction, please consult CANCOPY, the Canadian Copyright Licensing Agency, at 1–800–893–5777. Cover and logo design by Byron Henderson Editing, interior layout, and design by Nora Russell C ANADIAN C ATALOGUING IN P UBLICATION D ATA Stefanson, Brenda. Adult educators in co-operative development (Occasional paper series ; 02.02) Includes bibliographical references. ISBN 0–88880–462–8 1. Cooperative societies—Study and teaching. 2. Adult education— Social aspects. I. University of Saskatchewan. Centre for the Study of Co-operatives. II. Title. III. Series: Occasional papers (University of Saskatchewan. Centre for the Study of Co-operatives) ; 02.02. HD2955.S83 2002 334’.07 C2002-910511-0 Printed in Canada 02 03 04 05 06 / 5 4 3 2 1 Centre for the Study of Co-operatives 101 Diefenbaker Place University of Saskatchewan Saskatoon SK Canada S7N 5B8 Phone: (306) 966–8509 / Fax: (306) 966–8517 E-mail: [email protected] Website: http://coop-studies.usask.ca T HIS I S D EDICATED TO M Y S ONS Torin Kent Debs Erik Sven Wilson Jay Stefan C ENTRE FOR THE S TUDY OF C O - OPERATIVES HE CENTRE FOR THE STUDY OF CO-OPERATIVES is an interdisciplinary T teaching and research institution located on the University of Saskatchewan campus in Saskatoon. It is supported financially by the co-operative sector—Credit Union Central of Saskatchewan, Saskatchewan Wheat Pool, Federated Co-operatives Ltd., Co-operative Trust, The Co-operators, and the CUMIS Group—the Government of Saskatchewan, and the University of Saskatchewan. The university not only houses our offices but provides in-kind contributions from a number of departments and units—Agricul- tural Economics, History, Management and Marketing, Political Studies, and Sociology—as well as financial assistance with operations and nonsalary expenditures. We acknowledge with gratitude the ongoing support of all our sponsoring organizations. The objectives of the Centre are: • to develop and offer university courses that provide an understanding of co-operative theory, principles, developments, structures, and legislation; • to undertake original research into co-operatives; • to publish co-operative research, both that of the Centre staff and of other researchers; and • to maintain a resource centre of materials that support the Centre’s teaching and research functions. For more information about the Centre, please contact: Centre for the Study of Co-operatives 101 Diefenbaker Place University of Saskatchewan Saskatoon SK S7N 5B8 Phone: (306) 966–8509 / Fax: (306) 966–8517 E-mail: [email protected] / Website: http://coop-studies.usask.ca Our publications are designed to disseminate and encourage the discussion of research conducted at, or under the auspices of, the Centre for the Study of Co-operatives. The views expressed constitute the opinions of the author, to whom any comments should be addressed. C ONTENTS L IST OF T ABLES x A CKNOWLEDGEMENTS xi A BSTRACT xiii C HAPTER 1: INTRODUCTION Background 1 Research Questions 3 Methodology 4 C HAPTER 2: THE R OLE OF THE A DULT E DUCATOR IN C O - OPERATIVE D EVELOPMENT Introduction 6 The Process of Change 7 The Work of Alan Rogers 8 A Perspective on Adult Education 9 Rogers’s Five-Step Model for Development 10 A Closer Look at the Model 11 Surveying the Existing State 11 Awareness Enhancement 12 Improving Knowledge and Skills 12 Decision Making 13 Action towards Change 13 The Work of Paulo Freire 14 O CCASIONAL P APER S ERIES #02–02 VIII C ONTENTS The Work of Moses Coady 16 Introduction and Background 16 The Antigonish Movement 17 The Leader 19 The Methods 21 The Mass Meeting 21 The Study Clubs 22 The School for Leaders 22 The Impact 23 Summary 24 C HAPTER 3: THE D ECISION TO F ORM C O - OPERATIVES Introduction 26 Overview 26 Transaction Costs 28 Bounded Rationality and Opportunism 29 Prisoners’ Dilemma, Expectations, and Assurances 29 Free Riding versus Playing Fair 32 The Role of Emotions 33 Critical Mass 33 Adult Education’s Contribution to the Decision to Form Co-operatives 35 Collectivity 36 Experience-Knowledge Base 37 Summary 38 C HAPTER 4: CASE S TUDY: A MODERN C O - OPERATIVE M OVEMENT Introduction 40 Background 40 The Changes in Agriculture and the Impact on Farmers 41 C ENTRE FOR THE S TUDY OF C O - OPERATIVES C ONTENTS IX New Generation Co-operatives 45 Characteristics of New Generation Co-operatives 48 A Community of Co-operatives 49 Vertical Integration through Co-operation 50 The Development Strategy 51 The Network of Support 53 Cooperative Development Centers 54 The Partners in Cooperative Development 56 Minnesota Association of Cooperatives 56 The Cooperative Foundation 57 North Dakota State Agriculture Department 57 United States Department of Agriculture 57 The Quentin N. Burdick Center for Cooperatives 58 North Dakota State University Extension Service 59 Farm Credit System 59 The St. Paul Bank for Cooperatives 59 The Change Agents 61 The Methods 66 Summary 70 C HAPTER 5: SUMMARY AND C ONCLUDING T HOUGHTS Summary 72 Concluding Thoughts 75 R EFERENCES 78 A PPENDIX: INTERVIEWS C ONDUCTED 83 L IST OF P UBLICATIONS 85 O CCASIONAL P APER S ERIES #02–02 X L IST OF T ABLES L IST OF T ABLES 1. The Principles of the Antigonish Movement 18 2. Alternative Explanations for Collective Action 37 3. Concepts in Agriculture 42 4. Perceptions in Agriculture 43 5. New Generation Co-operatives in North Dakota, Minnesota, and South Dakota 46–47 6. The Ten Cooperative Development Centers 55 7. North Dakota Programmes Supporting Development 58 8. Six Phases of Co-operative Development 68 C ENTRE FOR THE S TUDY OF C O - OPERATIVES A CKNOWLEDGEMENTS AM GRATEFUL FOR THE ADVICE AND GUIDANCE of my research su- Ipervisor, Murray Fulton, my committee, Richard Gray, Gordon Thompson, and Scott McLean, and external examiner Janice MacKinnon. Your insightful suggestions and challenging questions made this an invaluable learning experience. Thank you Gwenna Moss for thoughtful assistance. I wish to acknowledge the contribution of the co-operators and educators who are part of this study. Thank you for sharing your experience and knowledge. I thank my colleagues at the Centre for the Study of Co-operatives, the Department of Agricultural Economics, and the Extension Division. A special thank you to Marianne for help and encouragement at every stage. Thank you to my friends and mentors Nancy, Pauline, and Brenda. Thank you Mom, Dad, Barry, and Rick for a lifetime of love and encouragement. Thank you Torin, Erik, and Wilson; I am so proud of you. Thank you Teri for help in many ways. Thank you Don for reality checks (and escapes) and for being my best friend. O CCASIONAL P APER S ERIES #02–02 A BSTRACT HIS WORK ATTEMPTS TO CONTRIBUTE to our understanding of the T role of the external agent and, in particular, the adult educator, in co-oper- ative development. By focussing on the role of adult education in co-operative movements, we can better understand how education contributes to a change in attitude, to building trust and cohesion in groups, and to encouraging people to work together to make improve- ments in their economic situations and in their communities. The objective of this work is to describe the role of adult educators and extension agents in the co-operative development process. To accomplish this objective, information is com- piled from literature dealing with adult education, co-operative development, economics, and other disciplines, and from primary research presented as a case study. Information for the case study was gathered through study tours, personal and telephone interviews, and from literature describing co-operative development in North Dakota and Minnesota. The results of this research emphasize the importance of the active participation and encourage- ment of a variety of external agencies. The role of the change agent as co-ordinator and facil- itator appears to be a crucial element in fostering collective action. In summary, the role of the adult educator is to: • facilitate a change of attitude; • co-ordinate the expectation of reciprocal co-operation; • assist in identifying common goals and a common vision; • expand the frame of reference by providing information in an appropriate manner; and • foster and nurture leadership within the constituent group. Adult education programmes involved in co-operative development tend to employ similar methods, such as group learning, community capacity building, individual capacity building, discussion forums, and a broad education in economic, social, and political issues, as well as the more practical elements—literacy, life skills, and general information. The adult education programme does not stand alone. A network of external agencies provides support and services to the programme and to the fledging co-operative. This net- work focusses on a common goal: to develop policy and resources to support and encourage education and collective action to address social and economic problems.