Co-operative contradiction

The experience of the Victorian Government's Co-operative Development Program (CDP) between 1981-85 illustrates, what happens when the development of co-operatives is not based on co-operative development. Very few of the originally supported worker, community and food co-operatives survived the CDPs eventual demise. Notable exceptions were pre-existing co-operatives that had been formed before the establishment of the CDP.

To understand the history of the Co-operative Development Program, it is critical to understand its contradictions, such as inappropriate legislative framework, a co-operative development vacuum and the ambiguity of government sponsored co-operative development.

At the time of its inception, the program suffered already from an incomplete rationale. It's knowledge base about co-operation and the theoretical expression of it was vague and imprecise - although this lessened during the period, 1981 - 85. Indeed, the more specific and precise the program became about co-operative development, the more precarious its future became. Its evolving philosophical and programmatic standing was inconsistent with a Government that had no interest in co-operative development and the program was devoid of significance, because it found itself outside of the co-operative movement.

The Victorian Government was increasing de-emphasised the philosophical implications of all its policies and programs - opting, instead, for a community consensus of responsible economic managers which included eschewing co-operative philosophy and principles. Furthermore, the program's philosophy of co-operation was insufficiently linked with the actual experience and philosophy of the established co-operative movement.

The CDPs attempt to adhere to and enforce co-operative philosophy and principles was in contrast to the realities of funded co-operatives that had a limited adherence to co-operative philosophy and principles. The program primarily attracted three kinds of co-operatives which contributed to its eventual demise.

• Opportunists - individuals and groups who were attracted to the program because of the possibility of Government funding, rather than a commitment to co-operative philosophy, principles and practices.
• Minorities - individuals and groups who were attracted to the democratic philosophy of co-operation, but who were politically devalued and were unable to develop a significant understanding of and commitment to co-operation.
• Oppositionists - individuals and groups who were actively opposed to co-operative philosophy, principles and practices and who sought to undermine and redefine co-operation.

The program was challenged, therefore, to educate itself and its co-operatives. This educational task created its own contradiction - a government program that assumed a capacity to educate an autonomous co-operative movement that was not autonomous, because of the dependence on government funding, the varying degrees of submissiveness and insolence towards government funding, and the opportunistic relationship of the co-operatives with the CDP.

Furthermore, the program under-utilised the established co-operative movement, in not understanding and capitalising on its experience. Only the established co-operative movement would have been able to provide the necessary co-operative education. In an article in the June 1986 issue of The Co-operator, the Co-operative Development Program's, Joe Burke, suggested: "The experience of the CDP also highlights the importance of clearly defining the nature of co-operative organisations and maintaining their integrity." Without the involvement of the established co-operative movement, this was not possible.

Co-operatives under the CDP were legally autonomous, but were financially dependent on the CDP, and subject to the directives of the CDP. An example of this was the requirement, that funded co-operatives had to be members of the Co-operative Federation of Victoria Ltd.

Since the CDPs establishment, the Co-operative Federation of Victoria Ltd had argued, that the Federation was the appropriate body to assist the Victorian Government in its program of promotion and development of Community Employment Co-operatives. This was rejected by the Government and the CDP.

In a note dated 4 October 1984, to the Ministerial Advisory Committee on Co-operation, the CFV's Executive Officer, Mr. W.W.Rawlinson, commented that its "Board was hindered in exercising its normal full authority over staff and planning by the absolute Government control on the staff, employed through the Federation to administer the program. The abrupt withdrawal of funds without any right of appeal or discussion was a most unfortunate state of affairs, and written requests to Government for reconsideration of the issues involved, remained unanswered."

For a comprehensive account of the establishment and development of the Co-operative Development Program: http://www.australia.coop/

David Griffiths is Secretary of the Co-operative Federation of Victoria Ltd. He established the Victorian Government's Co-operative Development Program and was the Program's first Co-ordinator.