More interesting info. The economics of it--your favorite stuff--is at the end...

Bader, I think we can leave the lion alone for a while and concentrate on the way out of the jungle, shall we?
PS: Notice this has been written Down Under. And there are also many cooperative links. There's one on New Zealand--the Kiwi Revolution?--we can discuss later. You are from there, right?
Cooperatives
Alternative economic structures
and business enterprises
By Dieter Dambiec
The basic reason for having cooperatives as a form of economic enterprise in an economy is to help people work together and move forward in a collective way. Cooperatives are considered to be the best form of economic enterprise because they are capable of seeking a balanced adjustment between collective spirit and individual rights. Dieter
Dambiec summarizes Prout's views on cooperatives.
Cooperation means getting things done with collective effort. The benefit
of cooperatives is that they combine the wealth and resources of many
individuals and harness them in a united way. To help achieve this,
however, cooperatives should be structured so that individual interest
does not dominate collective interests. Individual dominance can
adversely effect the welfare of different social groups and the
environment.
Essence of cooperatives
Cooperatives as a form of economic enterprise involve getting things done between free human beings with:
(i) equal rights;
(ii) equal human prestige (and mutual respect for each other);
(iii) equal locus standi (eg, legal standing) so that everyone's welfare
is considered.
This is called "coordinated cooperation" and is needed for equilibrium
and equipoise in social life. A socio-economic system should be based on
coordinated cooperation not subordinated cooperation.
"Subordinated cooperation" involves people doing something individually
or collectively, but at the same time keeping themselves under other
peoples' supervision or control. This can degenerate the moral fabric of
an enterprise and should be avoided when structuring cooperative business enterprises.
(snip)
Unemployment
Sarkar further states that in the cooperative system unemployment will be solved. This is because as production increases the need for more human resources and for the construction and operation of more facilities will also increase. Educated people can be properly employed as skilled
workers. There will also be a need for tractor drivers, labourers,
cultivators, etc. who as cooperative members will naturally do this work.
In times of economic downturn everyone's labour will be proportionately
reduced so that no one suffers the stigma of being unemployed. In this
way economic downturns will always be short and temporary.
Sarkar is confident that cooperatives will solve the unemployment problem and states that in the cooperative system there should be no compulsory date for superannuation. People should be free to work as long as they like providing their health permits. This is in contrast to some government policies which encourage older people to retire in order to make room for younger people. Following is a look at other aspects of
Sarkar's cooperative concept.
Workforce composition
All groups in the cooperative workforce will benefit from the
cooperative's profits. The members of a cooperative will be composed of:
(i) shareholders - who receive salaries for their work plus a return on
their shares;
(ii) non-shareholders or labourers - who enjoy stable employment and
favourable wages.
Non-shareholding labourers can be further categorized into those who are:
(i) permanent labourers - who get bonuses and premiums (dividends) as
incentives besides their wages; and
(ii) casual or contract labourers - who only get wages for their labour.
Labourers or workers also include those who are engaged in cooperative
management. They will be entitled to draw dividends and salaries on the
basis of their membership in and services they render to the cooperative.
This structure allows cooperatives to develop a proper incentive system
so that individual initiative by talented people is encouraged. An
incentive system should ensure that intelligent people are not forced to
do work which is unsuitable for them, or be paid the same wages as
ordinary workers. If skilled workers get paid more than unskilled workers
there will be an incentive for all to become skilled and work harder. In
this way the cooperative will encourage the educational and skill
upgrading of its members.
In addition, workers who give the greatest service to the cooperative
should get the greatest bonuses. Bonuses should be paid in proportion to
wage rates and should reflect both the skill and productivity of the
worker.
Shareholder composition
Members who purchase shares in a cooperative should have no power or
right to transfer their shares without the permission of the cooperative.
Such a pre-emptive right allows existing shareholders to determine the
basis of membership, and prevents capitalist entrepreneurs from
purchasing large numbers of shares in a cooperative and speculating in
the market. Speculative activity can easily lead to a depression and this
will of course effect the cooperative.
Shares can however be inherited. The shares of cooperative members
without descendants simply pass on to their legally authorised
successors, who become members of the cooperative if they are not already members. Different countries have different systems of inheritance, so the right of inheritance should be decided according to the system in vogue. In western common law countries if someone inherits shares in a business enterprise and does not want to become a member of that enterprise, existing shareholders simply buy that person out. Presumably the same reasoning can be applied to cooperatives. Following this arrangement will help cooperative members avoid litigation.
Because cooperative members will be from the same vicinity they will all
know each other, so there should be no difficulty in deciding who should
be able to buy such shares due to ignorance about potential shareholders.
Disadvantaged persons can also benefit from the cooperative system. A
widow, disabled worker or minor can all own shares and derive an income
based on the number of shares they own. Therefore even if as cooperative members are unable to work, they will still be entitled to an income from cooperative profits. Establishing such a structure on a large scale should be able to do away with the welfare state mentality prevalent in capitalist societies.
Dividend distribution
In a cooperative system there will be no preference shares. Today
preference shares are used by some financial institutions as a substitute
for debt investments (ie., loans to businesses). Preference shares really
mean that a lender in the guise of a shareholder has first grab at co-op
dividends and therefore co-op profits. Such investors should become
ordinary shareholders like other co-op members and share proportionately
in the success (or perhaps otherwise) of the co-op.
The state and cooperatives
Taxation
Taxes, levies, excise duties, etc. should be paid collectively by the
cooperative, not individuals. This frees individuals from financial
pressure and economic exploitation through personal taxation systems.
The primary source of taxation revenue in a PROUT system would appear to be at the point of production. This makes sense in that enterprises which make first use of resources have a social responsibility to ensure proper utilisation and rational distribution; taxation imposes some restraint to ensure this responsibility is carried out.
full text...
http://www.proutworl...tures/coops.htm