nairobi unis CO-OPERATIVES AND PARTNESHIPS notes - LAW OF BUSINESS ASSOCIATION II Class Notes by T Mweseli \u00a9 2006 University of Nairobi The Historical

nairobi unis CO-OPERATIVES AND PARTNESHIPS notes - LAW OF...

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LAW OF BUSINESS ASSOCIATION II Class Notes by T. Mweseli © 2006 University of Nairobi The Historical Development of the Cooperative movement. Basically the cooperative movement was started in the 19 th Century in Europe. The countries, which are associated with its origin, are Germany, France and Britain. The initiative in these countries has been identified with 3 personalities. 1. F W Raifferson in Germany 2. Charles Fourier in France 3. Robert Owen in Britain However the movement is normally traced to the Rochdale Equitable Pioneers Society that started operations in 1844 . This society was composed of a group of cotton weavers and other workers in Rochdale Lancashire who met together to trade under the name of the society. This society succeeded so well that inspired the creation of other cooperatives. At the time Europe was experiencing pronounced social as well as economic changes. The most significant of these changes arose from the industrial revolution which had brought about poverty among many people. It had also brought about concentration of wealth in a few huts . This is the essence of capitalism. The cooperatives formed in this early periods were a reaction to the evils of poverty created by the economic system that was being established. Workers and peasants formed cooperatives in order to minimise poverty through mutual assistance and self-reliance . The original founders of cooperatives formulated guidelines with a view to assisting them in their operations. These guidelines have been subject to modifications over time. In 1966 the International Cooperative Alliance [IAC] which is a global cooperative organisation made recommendations which resulted in the formulation of the guidelines into 6 basic principles which represent the essential features of a cooperative society as a formal organisation. This was the 23 rd Congress Report of 1966 entitled the Report of the Commission on Cooperative principles, recommendations and conclusions . The principles relate to open membership,
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democratic control, limited rate of interest on share capital, disposal of surplus, promotion of Education and Cooperation with other cooperative organisations THE BASIC PRINCIPLES OF COOPERATION Cooperatives by their very nature contribute to the improvement of the living conditions of their members especially the low income earning segments of the population. Cooperatives through a voluntarily agreed association are able to tap the energies of a group effort and economies of scale for the benefit of their members. The benefits that can accrue from an autonomous mutually agreed self-help and self-controlled systems of carrying out income earning activities through a cooperative are many and varied.
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