Cooperation Vs Capitalism and Cooperation Vs Socialism
Points of
similarity between capitalism and cooperation
1.
Like
Capitalism, cooperation also accepts the rights of private poverty and the rights of contract.
2.
Cooperatives
also use capital to carry on the business activities and pay interest for its
use, as the capitalistic organizations do.
3.
Like
capitalistic enterprises, cooperatives also employ the managers, and compensate
them on the basis of quality of the services they render.
4.
Cooperatives
also depend upon business efficiency for their success just as capitalistic
enterprises do.
5.
Cooperatives
also lay emphasis on profit. However,
earning of profit is not the primary aim of cooperatives.
6.
Both
capitalists and cooperators generally oppose the encroachment of government
interference.
Dissimilarities
between capitalism and cooperation
1.
Capitalistic
organizations are association of capitalists.
While cooperatives are associations of financially week, who work on
collective basis.
2.
In
capitalistic organization, the shareholders of higher number of shares play a
vital role. But in cooperatives,
whatever the number of shares held by the members occupy equal position, as
they practice one member – one vote system.
3.
In
capitalistic organizations, capital is given undue importance. Money rules men. But in cooperatives, importance is given to
human values. Though capital is required
for cooperatives, but it is given only secondary role to play.
4.
The
main motto of capitalism is to earn maximum profit at minimum cost. Whereas the prime motto of cooperation is to
render valuable services at reasonable cost.
5.
In
capitalistic organizations, voting power is assigned on the basis of share
holding one share one vote is in practice in joint-stock companies. While in cooperatives, every member has only
one vote irrespective of the number of shares held by him.
6.
A capitalistic organization is a combination
of strong to exploit weak. Whereas a
cooperative is a combination of weak to grow strong and seeks to end economic
exploitations.
7.
Capitalism
leads to concentration of wealth in fewer hands and breed inequalities. But cooperation tends to bring about
equalities and equal distribution of wealth.
Points of
similarity between socialism and cooperation
1.
Both
systems aim at the economic development of weaker sections.
2.
In
both systems, welfare of human beings is given top priority than any others
3.
Both
systems aim at the elimination of exploitation of common people by the
advantaged sections.
4.
Both
systems aim at rendering valuable services to society (people) and do not aim
for profit.
5.
In
both systems, there is a chance for equal distribution of wealth. Concentration of wealth in fewer hands is
done away with both the systems.
Differences
between socialism and cooperation
1.
Socialism
stands for abolition of private property.
While cooperation favours the extension of private property.
2.
The
object of socialism is public welfare.
While the object of cooperation is limited to member development.
3.
In
socialism, there is an element of compulsion.
Whereas, cooperative enterprise is a voluntary association. Voluntarism
is adopted for admission as well as withdrawal of membership.
4.
In
socialism, the decisions are taken by the central authority. But in
cooperatives the decisions are taken by the members on democratic basis. General body consists of all the members of a
society is the supreme authority in every cooperative which is responsible for
taking decisions.
5.
The
entire profit goes to the state in socialistic economy. But in cooperatives the profit is distributed
to various funds and to members
6.
In
socialism, control is exercised by the state officials. While in cooperatives it is done
democratically by the members.
7.
Socialists
advocate the revolutionary measures to attain the objectives. Whereas cooperatives desire to achieve the
goals through evolutionary means.
Useful and so simple
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