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Origins of the Cooperative Movement

The cooperative movement emerged in 19th century England in response to poor working conditions during the Industrial Revolution. Reformers like Robert Owen and William King advocated for improving workers' lives. In 1844, weavers in Rochdale, England formed the Rochdale Society of Equitable Pioneers, establishing the Rochdale Principles of cooperation which included open membership, democratic control, interest on share capital, distribution of surplus to members based on purchases, cash sales, political and religious neutrality, and education on cooperation. The Rochdale Society successfully implemented mutual self-help and established common interests for members' protection and community betterment.

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281 views2 pages

Origins of the Cooperative Movement

The cooperative movement emerged in 19th century England in response to poor working conditions during the Industrial Revolution. Reformers like Robert Owen and William King advocated for improving workers' lives. In 1844, weavers in Rochdale, England formed the Rochdale Society of Equitable Pioneers, establishing the Rochdale Principles of cooperation which included open membership, democratic control, interest on share capital, distribution of surplus to members based on purchases, cash sales, political and religious neutrality, and education on cooperation. The Rochdale Society successfully implemented mutual self-help and established common interests for members' protection and community betterment.

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shabukr
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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History of the Cooperative Movement

The cooperative movement in its modern form emerged in England, which is


considered as the birthplace of cooperation. Industrial Revolution in the nineteenth century
brought a clear division of the capitalists and the working class. The poor working class had
to struggle a lot to earn their livelihood, and their life was miserable. Several reformers
like Robert Owen, Charles Fourier and Dr. William King took initiatives to improve the living
and working conditions of the poor working class. Robert Owenimplemented various
reforms in his spinning mill for the benefit and welfare of the workers. His contributions
were such that and he was called the Father of Cooperation. The contributions of Dr.
William Kingwere also remarkable for improving the working conditions and propagating
the idea of cooperation, particularly among the working class.

In 1844, 28 workers from the cotton mills in a small town known asRochdale joined
to form the Rochdale Society of Equitable Pioneers to improve the members' social and
economic life, which is marked the birth of modern cooperative movement. They framed
certain rules and regulations for their society's administration which were known as the
Rochdale Principles. These principles were summarised as follows:
1. Membership was open and was given to allthose who volunteers themselves and there
were no discriminations on the political or religious grounds.
2. They insisted on democratic control and wanted to manage their society on their own.
The rule of one man, one vote was one of the features of the Rochdale Principles.
3. They allowed a fixed rate of interest on share capital. They encouraged the members to
invest their surplus funds with the society to enhance its financial soundness.
4. The society's surplus was distributed to its members based on their purchases and not
according to their shareholding.
5. The society adopted the principle of cash sales, which was an important factor that
contributed for the success of the society.
6. Society adopted the principle of political and religious neutrality.
7. They decided to spenda portion of their surplus fortheir members’ education on the
cooperative principles and philosophy.
8. They enforced honesty in its business by selling only pure and unadulterated goods.
9. The society sold the goods at the prevailing market rates, realizing that selling goods
below the market rate may adversely affect the society's financial position.

The Rochdale Societywas successful in converting its ideology of self-help through


mutual help into practice and they established a common forum to save and protect the
interests of the members from the exploitation of money lenders and for the betterment of
the community as a whole. Society gave a final shape to the cooperative principles by
successfully implementing them for the welfare of its members.  In 1895, International
Cooperative Alliance (ICA) was established in London, England, to represent the
cooperatives and cooperative movements worldwide. It is the oldest international
organisation dedicated to the promotion of cooperativemovement.

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