MOSHI CO-OPERATIVE UNIVERSITY

(MoCU)

DEPARTMENT OF LAW

FACULTY: FBIS

PROGRAMME: BACHELOR OF LAWS – SECOND YEAR

STUDENTS NAME: ALICE MHANDO

REGISTRATION NUMBER: MoCU/LL.B/563/18

COURSE: CO-OPERATIVE LAW AND POLICY II

COURSE ANTE: MAL 234

CORSE INSRUCTOR: DR. RUTABANZIBWA

TASK: INDIVIDUAL ASSIGNMENT 3

QUESTION:

Explain the origins of the cooperative movement and how it spread in the british, Indian and
African countries.
  What is the meaning of cooperative movement?

cooperative movement is a series of organized activities that began in the 19th century in Great
Britain and later spread to most countries of the world, whereby people organize themselves
around a common goal, usually economic. It began in Europe in the 19th century, primarily in
Britain and France. The Shore Porters Society claims to be one of the world's first cooperatives,
being established in Aberdeen in 1498 (although it has since demutualized to become a private
partnership). The industrial revolution and the increasing mechanism of the economy
transformed society and threatened the livelihoods of many workers. The concurrent labour and
social movements and the issues they attempted to address describe the climate at the time. The
first documented consumer cooperative was founded in 1769, in a barely furnished cottage in
Fenwick, East Ayrshire, when local weavers manhandled a sack of oatmeal into John Walker's
whitewashed front room and began selling the contents at a discount, forming the Fenwick
Weavers' Society. In the decades that followed, several cooperatives or cooperative societies
formed including Lennox town Friendly Victualling Society, founded in 1812.

By 1830, there were several hundred co-operatives. Some were initially successful, but most
cooperatives founded in the early 19th century had failed by 1840. However, Lockhurst Lane
Industrial Co-operative Society (founded in 1832 and now Heart of England Co-operative
Society), and Galashiels and Hawick Co-operative Societies (1839 or earlier, merged with The
Co-operative Group) still trade today. It was not until 1844 when the Rochdale Society of
Equitable Pioneers established the "Rochdale Principles" on which they ran their cooperative,
that the basis for development and growth of the modern cooperative movement was established.

Financially, cooperative banks, called credit unions in the US, were invented in Germany in the
mid-19th century, first by Franz Hermann Schulze-Delitzsch (1852, urban), then by Friedrich
Wilhelm Raiffeisen (1864, rural). While Schulze-Delitzsch is chronologically earlier, Raiffeisen
has proven more influential over time. In Britain, the friendly society, building society, and
mutual savings bank were earlier forms of similar institutions.

 Robert Owen

Robert Owen (1771–1858) is considered as the father of the cooperative movement. A

Welshman who made his fortune in the cotton trade, 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. It was here that the first
co-operative store was opened. Spurred on by the success of this, he had the idea of forming
"villages of co-operation" where workers would drag themselves out of poverty by growing their
own food, making their own clothes and ultimately becoming self-governing. He tried to form
such communities in Orbiston in Scotland and in New Harmony, Indiana in the United States of
America, but both communities failed.
  William King

Although Owen inspired the co-operative movement, others such as Dr. William King (1786–
1865) took his ideas and made them more workable and practical. King believed in starting
small, and realized that the working classes would need to set up co-operatives for themselves,
so he saw his role as one of instruction. He founded a monthly periodical called The Co-operator,
the first edition of which appeared on 1 May 1828. This gave a mixture of co-operative
philosophy and practical advice about running a shop using cooperative principles. King advised
people not to cut themselves off from society, but rather to form a society within a society, and to
start with a shop because, "We must go to a shop every day to buy food and necessaries why
then should we not go to our own shop?" He proposed sensible rules, such as having a weekly
account audit, having 3 trustees, and not having meetings in pubs (to avoid the temptation of
drinking profits).

 Rochdale Pioneers

The Rochdale Society of Equitable Pioneers was a group of 10 weavers and 20 others in
Rochdale, England, that was formed in 1844. As the mechanization of the Industrial Revolution
was forcing more and more skilled workers into poverty, these tradesmen decided to band
together to open their own store selling food items they could not otherwise afford. With lessons
from prior failed attempts at co-operation in mind, they designed the now famous Rochdale
Principles, and over a period of four months they struggled to pool one-pound sterling per person
for a total of 28 pounds of capital. On December 21, 1844, they opened their store with a very
meagre selection of butter, sugar, flour, oatmeal and a few candles. Within three months, they
expanded their selection to include tea and tobacco, and they were soon known for providing
high quality, unadulterated goods.

 How cooperative movement is spread in British.

The United Kingdom is home to a widespread and diverse co-operative movement, with over
7000 registered co-operatives owned by 17 million individual members and which contribute
£34bn a year to the British economy. Modern co-operation started with the Rochdale Pioneers'
shop in the northern English town of Rochdale in 1844, though the history of co-operation in
Britain can be traced back to before 1800. The British co-operative movement is most commonly
associated with The Co-operative brand (best known for its supermarket and Funeral care
brands) which has been adopted by several large consumers' co-operative societies; however,
there are many thousands of registered co-operative businesses operating in there. Alongside
these consumers' co-operatives, there exist many prominent agricultural co-operatives (621), co-
operative housing providers (619), health and social care cooperatives (111), cooperative schools
(834), retail co-operatives, co-operatively run community energy projects, football supporters'
trusts, credit unions, and worker-owned businesses. UK is the central membership organization
for co-operative enterprise throughout the country. This is a co-operative of co-operatives a co-
operative federation. Most kinds of co-operatives are eligible to join Co-operatives UK
Why was cooperative successful in Britain?

Often the more successful co-ops were established around the trades which were experiencing
the largest impact from the rapid industrialization such as mining and weaving. This was likely
due to the clearer direct benefits of membership and the solidarity of workers with a similar
plight.

What year did the cooperative movement began in the UK?

In 1844 the Rochdale Pioneers founded the modern Cooperative Movement in Lancashire,
England, to provide an affordable alternative to poor-quality and adulterated food and provisions,
using any surplus to benefit the community.

 How cooperative movement is spread in India.

The first Cooperative Credit Societies Act, 1904, marked the beginning of cooperative
movement in India. Initially, the primary objective of cooperation was to safeguard the interests
of the poor farmers from private money lenders. Mar 31, 1996

Who is the father of cooperative movement in India?

COONOOR: As the country gears to celebrate the 'National Cooperative Week' beginning from
Wednesday, only a few in the present era knew that for Sir Frederic Nicholson, known as 'Father
of the Cooperative Movement' in the country, Coonoor hills was his home where he lived for
three decades after retirement, and died.

Who started cooperative society in India?

The first co-operative movement in Asia was stated at Kanaginahal under the leadership of Sri
Siddanagouda Sanna Ramanagouda Patil (1843–1933), who is known as the 'Father of
Cooperative movement in Karnataka'. The Agricultural Credit Cooperative Society of
Kanaginahal was launched in Kanaginahal on 8.7. 1905.

The Co-operative Movement in India was born out of the distress that prevailed in the last
quarter of the 19th century. The Industrial Revolution had given a death blow to village
industries and brought people to agriculture, the only avenue of employment and livelihood. The
consequent sub-division and fragmentation of holdings had made agriculture an uneconomic
proposition. This, combined with the rigidity of land revenue collection, uncertainty of rainfall
and, therefore, of crop production, compelled the agriculturist to knock at the door of the money-
lender who advanced money cither by purchasing the crop at a throwaway price or by charging a
sky-high rate of interest.

The deteriorating condition of farmers under the heavy strain of increasing indebtedness and
frequent famines not only proved the inadequacy of legal measures but also emphasized the need
for the provision of cheap credit through an alternative agency.
  How cooperative movement spread in African Countries.   

Cooperative movement spread in Africa through the BIPC (British-Indian Pattern of

Cooperatives) it was introduced in the 1930s to Africa, starting in Goldcoast/Ghana (1931),
Tanganyika/ Tanzania (1932) and Nigeria (1935). Its rationale was in this quotation that: what is
good for Indian farmers must also be good for the African farmer, what was introduced were
state sponsored cooperatives with varying degrees of state control.

The promotion of these organizations to champion development has seen the history of
cooperative development in independent Africa generally phased into two eras: the first era
running from the immediate post-colonial period in the 1960’s to the mid-1990s and the second
era occurring during the global economic reforms from the mid 1990’s to the present, which has
been characterized liberalization of the economy. Whereas the first era was characterized by
stringent government control over cooperative development through enactment of policies,
legislation and programs that promoted cooperatives as vehicles for accelerating national
economic development, the second era has been the sphere of freeing cooperatives from the state
to enjoy autonomy and operate like business ventures responding to market demands. A review
of the historical development in Africa has shown some of the key challenges to cooperative
development have been excessive state control over cooperative development

REFERENCE:-

Books:
4
REFERENCES

Braverman, A. et al (1991), Promoting Rural Cooperatives in Developing Countries – The Case

of Sub-Saharan Africa, World Bank Discussion Papers No. 121, The World Bank,

Washington D.C.

Develtere, P. (2008), “Cooperative Development in Africa up to the 1990s”, in P. Develtere, I.

Pollet & F. Wanyama (eds.), Cooperating out of Poverty: The Renaissance of the

African Cooperative Movement, ILO, Geneva.

Develtere, P., Pollet, I. & Wanyama, F., eds. (2008), Cooperating out of Poverty: The

Renaissance of the African Cooperative Movement, ILO, Geneva.

Braverman, A. et al (1991), Promoting Rural Cooperatives in Developing Countries – The Case

of Sub-Saharan Africa, World Bank Discussion Papers No. 121, The World Bank,

Washington D.C.

Kwapong, N. A. and P. L. Korugyendo (2010), “Revival of Agricultural Cooperatives in

Uganda”, International Food Policy Research Institute Policy Note No. 10, December.

Muenkner, H. H. and Shah A. (1993), Creating a Favourable Climate and Conditions for

Cooperative Development in Africa, International Labour Organization, Geneva.

Oromia Coffee Farmers’ Cooperative Union (2011), “Status of Oromia Coffee Farmers’

Cooperative Union (OCFCU)”, Available at:

http://www.un.org/esa/socdev/social/meetings/egm11/documents/MeskelaStatus%20of%20OCFCU
%202010.pdf

Schwettmann, J. (2012), “Cooperatives – A Global Vision”, Paper presented at a Symposium

organized by the Friedrich Ebert Stifftung on Perspectives for Cooperatives in Southern

Africa, Lusaka, Zambia, 20-21 August

Wanyama, F. O. (2009), “Surviving Liberalization: the Cooperative Movement in Kenya”,

COOPAFRICA Working Paper No. 10, International Labour Organization, Dar es Salaam.

Wanyama, F. O., P. Develtere and I. Pollet (2009), “Reinventing the Wheel? African

Websites:
https://www.ica.coop
https://www.theguardian.com
www.economicsdiscussion.net