Question

Explain with an example how economy is a system of mutual cooperation among producers.

Answer 1

Answer:

A major historical debate in co-operative economics has been between co-operative federalism and co-operative individualism. In an Owenite village of cooperation or a commune, the residents would be both the producers and consumers of its products. However, for co-operative enterprise other than communes, the producers and consumers of its products are two different groups of people, and usually only one of these groups is given the status of members (or co-owners).

We can define two different modes of co-operative business enterprise: consumers' cooperative, in which the consumers of a co-operative's goods and services are defined as its members (including retail food co-operatives, credit unions, etc.), and worker cooperatives and producer co-operatives. In worker cooperatives, the producers or workers producing or marketing goods and services are organized into a co-op effort and are its members. Worker cooperatives are owned by their workers, for example by the owners of the farm, the cheese production, etc., wherever production is taking place. These farms are not required, and are rarely in actuality, owned by workers. (Some consider worker cooperatives, which are owned and run exclusively by their worker owners as a third class, others view this as part of the producer category.)