Gray, Thomas W.

English

Research Papers in Economics

BookReview
The NatureofCooperation. ByJack Craig. NewYork: Black Rose Books, 1993, 254 pp.
Thisbookcanbeunderstoodbyrecognizingtheconflictingtensionsembeddedwithin
it. There are at least six. They include: (1) contractual versus directed cooperation, (2)
service versus comprehensive cooperation, (3) bureaucratic logic versus cooperative
logic, (4) centralizedversusdecentralizeddecisionmaking, (5) democracyversus effi-
ciency, and (6) state directed, top-downcooperationversusgrass roots, bottom-up co-
operation. For discussion purposes, I present these tensions as dichotomies, though,
empirically,theyarebetterunderstoodasexistingoncontinuums.
Craig writes from a social idealist position, seeing values as the basis of much of
social organization. The ideasofequality, equity/socialjustice, andmutualself-help/
assistance are understood as valuesthatundergirdcommitments to cooperativeprin-
ciples and provide rough guides to their diverse and global applications. The non-
sociologistreadermayalso find ithelpfultorememberthatthediscipline ofsociology
placesinequalityandpowerdifferencesatthecenterofmuchofitsanalysis.Craigisno
exceptioninhighlightingclass, gender,race, andcenter/ peripherydisparities.
Craigapproaches these areas ofconflictingtensions as follows:
1. Directed versus contractualcooperation Under directed cooperative arrangements,
organizationalstructureandgoalsarepre-established. Individualswithinanorganiza-
tionare directed, orexpected to comply,ina marmerthathelpsachieve organizational
goals.Thistypeofcooperationistypifiedbyauthorityanddecisionmakinghierarchies
withinvarious bureaucratic organizations, includingpolitical governments. Contrac-
tual cooperation exists where there is explicit agreement among individuals to work
towardcommongoals. Behaviorisvoluntaryandformalized. Thistypeofcooperation
is typical withincooperatives,laborunions, and othervoluntaryassociations.
2. Service cooperation versus comprehensive cooperation Craigcharacterizes service co-
operatives as those organized tomeetthe "segmented," orspecialized needs ofmem-
bers,asspecifiedthroughparticipatorydemocraticstructures.Efficiencyisemphasized.
Good decisionswouldbethosethatresultinthelargestnumberofmembershavinga
need serviced, over the longestperiodoftime. NorthAmericanagriculturalcoopera-
tives andcreditunionswouldbeexamples.
Comprehensive cooperationis thatcharacterizedbyface-to-face and daily interac-
tionorganizedtomeeta largerangeofhumanneeds. Life meaningandcooperationas
a way of life is sought. Good decisions would be those that have involved as many
membersintheprocessaspossible.Workercooperatives,andthemoshavandkibbutz
systems ofIsraelwouldbeexamples. Craigcites as some ofthe contributions ofcom-
prehensive cooperatives: (1) a sense ofcommunity, (2) individual growthindecision
makingandleadership,and (3) non-exploitationofothers.
3. Bureaucraticlogicversuscooperativelogic: Bureaucraticandcooperativelogicreferto
kinds of decision making criteria and patterns of structuring within an organization.
Bureaucraticlogic refers toorganizationalhierarchiesanda flow ofauthorityandcen-
tralized decisionmakingfrom the top down. Efficient use ofresources is emphasized.
Cooperativelogicemphasizesequality,equity,mutualself-help,decentralizeddecision
making,participation,andinvolvement. Local responsivenessisemphasized.
4. Centralizedversusdecentralizeddecision making: Centralized decisionmakingisun-
derstoodasanaspectofabureaucraticlogicoforganization,anddecentralizationasanBook Review/Gray 69
aspectofcooperativelogic oforganization.Centralizeddecisionmakingmayoccurat
the top of an organization with management, and/or with directors alienated from
members, aswell as geographically within metropolitan, headquarters, and/or gov-
ernmentallocations.Causality;authority;andcontrolwithinanorganizationflowfrom
the center. Decentralized decision making is multipoint, multicausal, self regulating,
andwithmulti-pointscooperatingwiththecenter,butnotdominatedbyit.
5. Efficiencyversusdemocracy. Acooperativehasthe dilemmaof"beinga socialorga-
nization responding to the needs ofmembers and the reality ofthe marketplace" (p.
76). It has the "internal contradiction of trying to achieve goals effectively, make effi-
cient use ofall resources, yetremain responsive to the need oflocal people..." (p. 49).
Efficiencygenerallyaccompaniesbureaucratization,butbureaucracyfrequentlyresults
indeclinesindemocraticparticipationandincreasedcentralization.
6. State directetl top-down cooperation versus grass roots, bottom-up cooperation: Craig
givessomedescriptionsofcooperativedevelopmenteffortsinlessindustrializedcoun-
tries, in particular India, the Peoples Republic of China, and Tanzania. He presents
variousfailures andsuccessesofcooperativedevelopment,makingthepointthattop-
down, state directed cooperatives frequently fail, because they are not"owned" and
developedbylocalpeople. Whatmaybedesirablemaynotbedesired. Those thatare
responsiveto, andinvolvedwith,localpeopleatthegrassrootslevelhavemuchhigher
probabilitiesofsuccess.
Thesedilemmasanddichotomiesareblendedwithissuesofinequality,power,and
empowerment. Poweris understood as a social relationship betweengroups thatde-
termine"accessto, useof,andcontroloverthebasicmaterialandideologicalresources
insociety."Empowermentisaprocess"aimedatconsolidating,maintaining,orchang-
ingthenature anddistributionofpower"(p. 191). "Empowermentisbasic to theidea
ofcooperation,wherepeopleworktogethertoachievegoalsthattheycouldnotachieve
asindividuals"(p.193). Craigisverycarefultostate,however,thathowempowerment
andcooperationareapplied,andinwhatcontextandinwhoseinterest,canresultinan
improvement,ora worseningofinequalities.
Thebookcontainssevensubstantivechaptersvariouslydealingwiththese themes
andissues.Chapter2, "RootsandEvolution,"presentsa seriesofsociologicalconcepts
and approaches to analysis, butalso a briefhistorical sketchofthe cooperativemove-
mentandorganizationaldevelopmentoverthelast150years. Agricultural,credit,and
consumercooperatives, drivenfrom farmerand/orworker class interestsand articu-
latedas comprehensiveorservice cooperatives, makeupmuchofthediscussion.
Chapter3, "Co-operativesintheWorldToday," focuses discussiononservice co-
operatives, detailing volumes, membership, and market share. Type ofcooperative
predominance(forexample,agriculture,credit,orconsumer)incountriessuchasthe
UnitedStates, UnitedKingdom,Canada,Denmark,Ireland,Germany, Norway, and
Sweden,islinked to respective originatingclass interests (for example,middle-class
farmer orlabor) ineachofthecountries. Craigcitesascontributionsofservicecoop-
eratives: (1) breaking of monopolies and cartels, (2) elimination ofwindfall profits,
(3) eliminationofmiddlemen, (4) moreequitabledistributionofwealth,and(5) new
economicpowerrelationships.
Chapter 4, "Comprehensive Co-operatives," presents discussion of worker coop-
eratives in Westernand EasternEurope and India, and the Moshav and Kibbutz sys-
temsinIsrael. Organizedmorefor life style andmeaning,Craigidentifiesseveralfac-
torsimportanttotheirsuccess.Thesefactorsincludecommitmentsto: (1) asuperordinate
goal, (2) non-exploitation of others, (3) democratic decision making, (4) mutual self-
help, (5) voluntarism, and (6) organizational skills. Difference between directed and
contractualcooperationsare discussedintheEasternEuropeancontext.70 Journal of Cooperatives 1996
Chapter 5, "Co-operatives in Developing Counties," presents top-down, state di-
rected experiences of cooperative formation in India, the Peoples Republic of China,
and Tanzania. The chapter details how failure occurred, as well as how successes oc-
curred. Successestypicallyinvolved more grassroots, bottom-upinitiatives.
In Chapter 6, "The Problem: Co-operatives with Little Cooperation," Craig intro-
ducesexplicitly thebureaucraticversus cooperativelogic dilemma. Craig argues that
cooperative failures are frequently due to leadership adopting a bureaucratic logic,
rather thanretaining and deepening a cooperative logic. Hesuggests the cooperative
logicispartofanewparadigmmoreinkeepingwithmodem,decentralized,participa-
tive,andworkableapproachestosocietalorganization.Heextendsthisviewbylinking
it to larger societal issues of "sustainable societies," as opposed to growthist, bureau-
craticallyorganizedsocieties.
Issuesofinequalityandpowerareintroducedinchapter7, "SocialInequality: Gen-
der, Race and Class." Gender and class are discussed at length, and concepts of "em-
powerment" are used. TheSaskatchewanWheatPool is presented as anorganization
thathelpedempowerfarmers. Variouscreditunionsare usedas examplesofempow-
ermentvehiclesforworkers.TheCalgaryConsumerCooperativeandaSaskatchewan
creditunionarepresentedasorganizationsthatreversedsomeofthepowerinequality
betweencenterandperiphery.
In chapter 8, "Empowerment ofWomen In ConsumerCo-ops inJapan," Craig, in
collaboration withDeborahSteinhoff, presents aninteresting exampleoffemale gen-
derempowermentwithinaJapanesetraditionalculturethatprescribeswomen'sroles
as homemakers and mothers. Because women's responsibilities are culturally under-
stood as home focused, womenare given greatlatitude in thatarea oflife. Food, food
quality, environment, and elderand child care all come under this venue. Consumer
cooperativeswithwomenas membersandleadershaveemergedinresponseto these
culturally mandated roles and have had a far-ranging impact on the economy and
societalorganization.
Unfortunately, thebookpresentsnochapter9. The authorstates, "Thisbookis con-
cernedprimarilywithdevelopinga sociologicaltheorythatexplainstheformandevo-
lutionofthe cooperativemovement." However,anintegratedtheory, carried through
the entire book, and/or synthesized in a final chapter does not occur. The task is per-
haps too ambitious: the author trying to integrate micro, mezo, and macro aspects of
cooperative organization, articulating these historically in the global socio-economic
context, andtyingthisanalysis torace, class, gender, andperiphery/ centerempower-
mentissues. The author does provide a wealthofbadlyneeded sociological concepts
and ideas relevant to cooperative organization and cooperatives. The linking of eco-
logicalandsustainablesocietyconcernsisa littleforced conceptually,beingintroduced
late inthebook.
However,thebookilluminatesbestthehistorical,national,andclassbasesforpresent
day cooperatives and how bureaucratic logic/cooperative logic issues and service/
comprehensive cooperative organizations get articulated empirically in a global con-
text. This is anexcellentreadfor bothsociologists andeconomistswhowishtounder-
standcooperativesandcooperativeorganizationintheirsocietal,global,andhistorical
complexity
Thomas Jv. Gray
RuralSociologist,
RuralBusiness-CooperativeService,
CooperativeServices,
us. Department0/Agriculture

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