Question

4. Write three ways in which co-operatives help in community development


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Answer 1

Answer:

3 ways in which co-operatives help in community development are:-

1. Cooperatives solve the general economic problem of under or over production, business uncertainty, and excessive costs.
2. Cooperative businesses stabilize communities because they are community-based business anchors; and distribute, recycle, and multiply local expertise and capital within a community.
3. cooperative structures allow communities to pool together their resources to solve problems, identify common goals and target the causes and symptoms of poverty.

Explanation:

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Answer 2

Explanation:

1. Build the United States Federation of Worker Cooperatives. Help the Federation to recruit a majority of worker cooperatives, democratic ESOPs and other democratic workplaces in America to become a powerful political force to help create jobs, more dignity in work, and a more humane world. The force of numbers will strengthen our advocacy in the best interest of workers in democratic workplaces.

2. Make education for worker ownership and management a top priority in all of our work: inside our co-ops and other democratic workplaces, networks and other social and political contacts and organizations. This includes basic cooperative information, as well as more management and technical information. The development of movement-controlled educational structures and institutions will be fundamental to our evolution as a democratic movement. The following actions merit consideration:

Reserve the equivalent of 5-10% of total wage bill or 5-10% of surplus, or net income, to the education of worker-members on cooperative values and practices and the knowledge, skills and attitude to ensure the viability and growth of the cooperative or democratic workplace.

Provide an organizational space that facilitates a constant learning culture.

Develop teaching institutes that provide cooperative management with high level business skills/technical competencies to maintain the cooperatives’ competitiveness, innovation and democratic practices in the face of non-cooperative competition and aggression.

Collaborate with Southern New Hampshire University, The Democracy Collaborative, and other progressive educational entities to create the teaching institutes that are able to provide cooperatives’ management and workers with appropriate training and credentials in areas of critical needs.

Develop movement-controlled and -financed educational structures as a medium- to long-term goal. We must create the educational institutions that prepare our members and prospective members for worker ownership, governance and management. A modest percent of the surplus of each worker cooperative or democratic workplace could be provided to the apex worker cooperative organization to help sustain our educational facilities.

Build alliances to promote the inclusion of cooperative management and worker ownership in the curriculum of educational institutions that are financed with tax dollars.

3. Develop financing structures to help start-ups and to maintain and expand existing firms. This includes fundraising, starting or supporting loan funds, seeking foundation support, and/or creating a foundation.

Creation of financial institutions to provide debt financing of worker- owned and -managed businesses. Mondragon Cooperative Corporation’s Caja Laboral is a great example of the usefulness of a movement having its own financial institution to capitalize its businesses.

Strategically target credit unions in our areas of operation for their suitability as centers of financing for worker ownership and community economic assets. Community organizing and education may have to precede the integration of the appropriate financial cooperatives into the network of local and regional worker cooperatives. We must approach this task with the necessary delicacy and ethics, but still resolutely execute our plan without fear or favor.

Proactively and purposively effect the creation of community development credit unions where "strategic takeover" is not appropriate or possible.

Facilitate the emergence of worker cooperators with high levels of knowledge and skills in the operation of financial institutions. We exist in a hypercompetitive market economy and it is necessary for us to achieve this to realize our objective of worker ownership that is widespread, effective and the antidote to work without dignity.

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