Theme 13. International co-operative movement

Международное кооперативное движение

Text 1. Co-operatives worldwide

International co-operative movement is a global social and economic movement, which unites national co-operative movements in the countries of Europe, America, Asia, and Africa.

The international co-operative movement is a mass social and economic movement of the present day, which unites more than 800 million people-members of co-operatives of different types supported by governments and international organizations, research workers, public and political leaders.

Consumer co-operation of Russia is a socially oriented system of market economy. Co-operatives are engaged in various economic and social activities and are solving their tasks through business and public practice. Business activities include: trade, public catering, agricultural produce procurement, goods production, paid services, capital construction, agricultural production, transport; educational, spa, and health care services.

Co-operative movement in the countries of Europe is developed in Great Britain, Germany, Austria, the Netherlands, France, Sweden, Italy, Spain, Belgium, Switzerland, Denmark, Norway, Finland, and other countries. Great Britain is known for consumer co-operatives. Italy and France remain the largest worker co-operative sector in Europe. The most vivid example of the worker co-operative sector is the group Mondragon in Spain. The Scandinavian countries are the first to develop a co-operative housing sector. Agricultural co-operatives have become a significant part of every European country’s economy.

Co-operative movement of Americas involve agricultural, consumer, credit, housing and other types of co-operative.

Co-operative movement in the countries of Asia and the Pacific Region include agricultural co-operatives in Iran, Malaysia, South Korea, India, China, New Zealand, Indonesia, Israel; consumer co-operatives – in Japan, Singapore, Korea, Thailand, Malaysia, India, Bangladesh; other types of co-operatives are represented by credit banks in Asia; worker or artisan co-operatives – in India, China, Vietnam, Sri Lanka; a co-operative health service sector – in Australia; medical centers – in Malaysia, on the Philippines, in Singapore, in Japan; housing co-operatives – in Turkey. The International Co-operative Alliance is a world representative of co-operative organizations of all types.

Text 2. The co-operative enterprise, another form of entrepreneurship

Co-operation is now an actual economic reality, continuing to respond to society’s present and future needs and concerns. Co-operative businesses are truly at the heart of economic development and cover a broad spectrum encompassing all economic sectors.

Solidarity, independence, transparency, democracy, proximity, respect for individuals: these are the strong values on which co-operatives are based. The strength of co-operatives is also derived from powerful regional and national networks.

By giving a human dimension to essential economic activities, co-operatives offer an original and dynamic approach to entrepreneurship. The co-operative enterprise has adopted an operating mode focused on individuals. This value, shared by all entities engaged in the social economy, fosters dynamism, a commitment to entrepreneurship, and therefore, economic success.

Co-operative enterprises are the very core of domestic economy. They are involved in all industries: agriculture, crafts, small or industrial fisheries, retail, education, property, services, transport, banking and finance. Co-operatives may be distinguished among four main categories:

• users’ co-operatives ( consumers, low-rent housing, co-ownership);

• co-operatives of entrepreneurs and enterprises (agricultural, crafts, maritime, retailers’ and hauliers’ co-operatives);

• employees’ co-operatives;

• co-operative banks.

To enjoy lasting success, co-operative enterprises must be open to their environment and apply generally accepted business management principles, while remaining true to their values.

Co-operative enterprises are competitive: they adapt and respond to ever- changing market needs. They naturally invest in all industries, including growth sectors, such as new technologies: e-co-operatives are mushrooming.

To cope with more global markets, co-operative enterprises have been able to restructure, gain strength, and develop by forming groups that sometimes include companies with diverse legal statuses. These business combinations enable them to withstand competition and secure a new strategic market positioning.

The strategies of co-operative enterprises are increasingly taking on a more European dimension. They factor in the European market and prospects afforded by the enlargement of the European Union to countries where co-operation is undergoing thorough changes. Co-operative enterprises are joining their efforts to have the European community recognize the status of the European co-operative company in order to allow for their development and the broadening of their operations.

Text 3. Roles of co-operatives in the 21^st century

At the turn of the millennium the world is facing problems of a global dimension. It is no longer possible for any group of people or for any nation to concentrate on solving own problems inisolation. The interdependence of all inhabitants of our globe is becoming more and more obvious. All are affected and all have to react to problems like changes of climate, pollution of water, soil and air, globally spreading diseases like cancer and Aids and poverty or political unrest, forcing millions of people to leave their homes and to migrate to places where they expect better living conditions

The most important changes that have occurred and are still occurring in a world-wide dimension are of political, demographic, social, economic, ecological and technological nature.

Political change implies the need to pay more attention to economic, social and ecological problems of development.

In terms of demographic change it is estimated that the world population will increase by 93 to 97 million per year and will reach 10 billion in the year 2050.

Social change demonstrates a world-wide decay of value systems: family structures, caring for the aged, role of women may be pointed out.

The most far reaching economic change is the transition from centrally planned economy to market economy. In all countries, there is a growing disparity between the rich and the poor.

Ecological change shows that pollution of water, soil and air has reached dimensions which can no longer be ignored neither by the ordinary citizen nor by the politicians.

Technological change is an actual reality: the development of global information and communication networks has brought people closer together, facilitates the diffusion of information and innovations and allows communication over any distance.

Co-operators and their co-operatives have to react to the changes of their environment. Today, there are additional problems threatening the individual citizen and motivating persons to take self-help actions and form or join cooperative societies.

Fighting unemployment by forming self-managed enterprises for self-employment or developing innovative forms of job-sharing and part-time employment; organizing community co-operatives.

Taking joint action against exploding cost of health insurance by organizing preventive health care on a co-operative basis.

Taking measures against isolation and marginalization of a growing number of elderly persons without family ties, by forming self-help organizations of senior citizens in form of service co-operatives,housing co-operatives, and other mutual aid groups.

Mobilizing citizens for joint action against further destruction of the environment by giving preference to ecologically safe products and technologies, by pooling consumer power through consumer co-operatives, shareholders associations and pressure groups to force producers of consumer goods to adopt ecologically sound production methods.

Promoting the use of renewable sources of energy by encouraging research, production and sale of appropriate technology through industrial co-operatives, consumer co-operatives and specialized service co-operatives.

Avoiding or recycling waste as a branch of activities of consumer co-operatives or special recycling co-operatives.

Forming agricultural co-operatives for ecologically sound production of food and cash crops.

In all these fields co-operators could empower their co-operatives to assume the role of innovators.

If they want to become the forerunners in the post-industrial society, co-operatives will have to invest in member information and education and in new ecologically sound technologies.

In the developing countries, co-operatives in the 21st century will play their classical roles known in the industrialized countries during the 20th century: supply, marketing, savings and credit, consumer, housing, transport, insurance, wholesale and retail trading, services of any kind, industrial co-operatives, etc. But they will also have to cope with problems of high unemployment, degradation of the environment, introduction of new technologies and providing substitutes for a decaying system of family-based social security in form of new social networks beyond family and clan boundaries in an ethnically mixed society.

The main challenge of co-operatives in the 21st century will be to fill the growing value vacuum by offering a consistent and convincing value system, complete with guidelines (principles) which can direct people towards finding solutions for their most pressing problems by helping themselves, by accepting responsibility for their own future, relying on their own strength and on the force of combined efforts, on self-help and group solidarity.

Task 1. Read the texts. Translate them into Russian, and render them.

Task 2. Memorize the key terms, concepts, expressions and the their meaning.

public catering	общественное питание
agricultural produce procurement	заготовка сельхозпродукции
spa	курорт с минеральной водой
encompass	окружать
transparency	прозрачность
proximity	близость
derive	происходить
dimension	измерение
entrepreneurship	предприниматель
entity	экономическая единица
be engaged in	быть вовлеченным
fosters	благоприятствовать
distinguish	различать, отличать
hauliers	откатчик
environment	окружающая среда
mushroom	быстро расти
to cope	чтобы справится
factor	включать, выступать в качестве посредника
occur	происходить, случаться
imply	подразумевать, предполагать
estimate	оценивать
decay	разрушать
disparity	несоответствие, неравенство
explode	взрывать, разрушать
renew	возобновлять
empower	уполномочивать
assume	предполагать

Task 3. Answer the questions. Solve the problems. Do the tasks.

1. Identify common trends for the development of consumer co- operatives in Europe.

2. In which countries of Europe is the agricultural co-operative sector the most developed?

3. What is the International Co-operative Alliance?

4. Specify values on which co- operatives are based?

5. What do co- operatives offer?

6. What activities are co- operatives enterprise involved?

7. How many categories may co- operatives be distinguished?

8. Prove that co- operative’s enterprise is competitive?

9. What should co- operative’s enterprises do to cope with more global markets?

10. What is interdependence?

11. Point out the most important changes that are occurring in a world-wide dimension.

12. Name the additional problems threatening the people and motivating them to take self-help actions.

13. What will co- operative have to do if they want to become the forerunners in the society?

14. What problems face the developing countries?

15. What is the main challenge of co- operatives in the 21^st century?

Task 4. Discuss the international co-operative movement, exchange informed opinions, argue your points effectively and listen carefully to the views of others.

Task 5. Do the test. Form new words with the help of suffixes and prefixed from: