The two key aspects of the long history of co-operative enterprises in Western countries are their origins, which date back to before the industrial revolution, and the bottom up process that generated them. The first feature is in contrast with the prevailing literature which links the birth of co-operative firms to the Industrial Revolution. In 1908, Fay, in the very first geography of co-operatives across Europe, provided an historical overview based on interviews and documented records. The author dated back the origins of co-operatives to the 18th century. Already in 1760 corn mills were founded on a co-operative basis as a countermeasure against the high prices set by the corn-millers who held the local monopoly (p. 14). However, as Cole stated 40 years later (Cole 1944), the first co-operatives "were not followed up, and never constituted a movement. They were isolated experiments; and no one knows now who inspired most of them" (p.15). Eventually, during the first half of the 20th century, when books and pamphlets on co-operative enterprises came out, a literature of their development appeared as well and connected their diffusion to the social disruption and economic thought generated by the industrial revolution. In addition, co-operative enterprises were considered as being a part of a wider movement deeply rooted in the 19th century social and political attitudes. This version has been often re-circulated (Birchall 1997). However more recent studies on the Middle Ages leave room for questioning the above conviction. The 1997 paper by van Driel and Davos pre-dated the origins of co-operatives to as early as the 14th and 15th century in Belgium and Holland. Indeed the Antwerp naties and the Dutch vemen were organized respectively in the late 15th and early 16th century. Both were set up as co-operatives of porters or other auxiliary merchants’ workers. These structures exhibited many features of modern co-operatives. We shall take, for example, the “one member one vote” principle, or the habit to collect revenues from each member in order to periodically share within the co-operative (van Driel and Davos 1997). It is also important to recall the regulated companies, set up by merchants in the United Kingdom in the 15th century, which followed the one member one vote rule. Adam Smith in the Wealth of Nationscompares the regulated companies to the emerging joint stock companies, so to focus on what he considered to be the main weaknesses of this form of enterprises: the 'corporation spirit' (p.580) and the open door principle. The latter actually obliged the firms “to admit any person, properly qualified, upon paying a certain fine” (Smith 1812, 579). Therefore we could conclude that co-operatives appeared in the 15th century, at the dawn of the market economy. However only in the age of industrial revolution and particularly during the 19th century they caught experts’ and politicians’ attention together with the support of the various social and political movements of the time. In the century when Commercial Codes made their appearance (Ripert, 1951) co-operative enterprises gained a legal status. In many countries the deregulation of limited liability companies was the occasion to enter the definition and regulation of co-operative enterprises into the Commercial Code (Guinnane and Martínez-Rodríguez, 2010; Battilani and Bertagnoni, 2010). The 19th century institutional innovations did not have the purpose of strengthening only investor-owned enterprises, they also included the concept of undertaking through which ownership was assigned to stakeholders who were not investors – in other words the co-operative . The first countries to provide a legal framework for this form of enterprise were Austria and Belgium. In many countries the new laws were the expression of liberal ideals which considered co-operatives a possible solution for the social issues. In conclusion, since the beginning, Western co-operatives showed aspects of voluntary organizations and emerged as a result of a bottom up process driven by values and social inspirations which sometimes changed over time. Very often worker, religious and economic movements had an impact in shaping and fostering this form of enterprise (Schneiberg, King and Smith 2008).
Features and determinants of co-operative development in western countries
Battilani P.
2014
Abstract
The two key aspects of the long history of co-operative enterprises in Western countries are their origins, which date back to before the industrial revolution, and the bottom up process that generated them. The first feature is in contrast with the prevailing literature which links the birth of co-operative firms to the Industrial Revolution. In 1908, Fay, in the very first geography of co-operatives across Europe, provided an historical overview based on interviews and documented records. The author dated back the origins of co-operatives to the 18th century. Already in 1760 corn mills were founded on a co-operative basis as a countermeasure against the high prices set by the corn-millers who held the local monopoly (p. 14). However, as Cole stated 40 years later (Cole 1944), the first co-operatives "were not followed up, and never constituted a movement. They were isolated experiments; and no one knows now who inspired most of them" (p.15). Eventually, during the first half of the 20th century, when books and pamphlets on co-operative enterprises came out, a literature of their development appeared as well and connected their diffusion to the social disruption and economic thought generated by the industrial revolution. In addition, co-operative enterprises were considered as being a part of a wider movement deeply rooted in the 19th century social and political attitudes. This version has been often re-circulated (Birchall 1997). However more recent studies on the Middle Ages leave room for questioning the above conviction. The 1997 paper by van Driel and Davos pre-dated the origins of co-operatives to as early as the 14th and 15th century in Belgium and Holland. Indeed the Antwerp naties and the Dutch vemen were organized respectively in the late 15th and early 16th century. Both were set up as co-operatives of porters or other auxiliary merchants’ workers. These structures exhibited many features of modern co-operatives. We shall take, for example, the “one member one vote” principle, or the habit to collect revenues from each member in order to periodically share within the co-operative (van Driel and Davos 1997). It is also important to recall the regulated companies, set up by merchants in the United Kingdom in the 15th century, which followed the one member one vote rule. Adam Smith in the Wealth of Nationscompares the regulated companies to the emerging joint stock companies, so to focus on what he considered to be the main weaknesses of this form of enterprises: the 'corporation spirit' (p.580) and the open door principle. The latter actually obliged the firms “to admit any person, properly qualified, upon paying a certain fine” (Smith 1812, 579). Therefore we could conclude that co-operatives appeared in the 15th century, at the dawn of the market economy. However only in the age of industrial revolution and particularly during the 19th century they caught experts’ and politicians’ attention together with the support of the various social and political movements of the time. In the century when Commercial Codes made their appearance (Ripert, 1951) co-operative enterprises gained a legal status. In many countries the deregulation of limited liability companies was the occasion to enter the definition and regulation of co-operative enterprises into the Commercial Code (Guinnane and Martínez-Rodríguez, 2010; Battilani and Bertagnoni, 2010). The 19th century institutional innovations did not have the purpose of strengthening only investor-owned enterprises, they also included the concept of undertaking through which ownership was assigned to stakeholders who were not investors – in other words the co-operative . The first countries to provide a legal framework for this form of enterprise were Austria and Belgium. In many countries the new laws were the expression of liberal ideals which considered co-operatives a possible solution for the social issues. In conclusion, since the beginning, Western co-operatives showed aspects of voluntary organizations and emerged as a result of a bottom up process driven by values and social inspirations which sometimes changed over time. Very often worker, religious and economic movements had an impact in shaping and fostering this form of enterprise (Schneiberg, King and Smith 2008).I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
