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.