Cooperative Thought - Rochdale Model
Rochdale
Model
Rochdale was a woollen and cotton milling town in
Lancashire hills, England. In Rochdale all the evils of industrialisation were
rampant. During 1840, the mills were paying low wages, strikes and lockouts
were frequent, hours of work were long, the housing conditions of the workers
very poor, rents were very high, there was much unemployment, the trade system
was deplorable – they supplied adulterated goods and charged high price. Hence,
this period was called as ‘the hungry forties’ by the historians. Several efforts were taken by several persons
including the government to save the workers.
The pioneers started their way to save the workers from
the different kinds of exploitation in 1843.
It was Charles Howarth, one of the leading and outstanding of all the
pioneers, who persuaded to choose the cooperative solution to solve the
problems. The cooperative store was the idea suggested and implemented by the
pioneers. The societies started by them
was registered on 24th October 1844 and started its business on 21st
December 1844.
The rules and regulations and business practices
adopted by the Rochdale society were:
1. The capital
required to run the society should be from the members only.
2. The capital brought
by the members will get the fixed rate of interest.
3. The members were
supplied with the articles / goods procurable by the society.
4. The full weight and
measures should be given for each product.
5. All the goods and
services of the society are based on cash and carry basis (no credit)
6. The principle of
‘one man one vote’ is practiced in governing the society.
7. Equality of the
sexes is in practice in admitting members as well as in the management.
8. The management
should be in the hands of office bearers and committee which are elected
periodically.
9. The profit should
be divided based on the purchases made by each member from the society.
10.
A
defined percentage of profit is allocated for education.
11.
The
statement and balance sheet of the society are presented to the members
frequently.
The Rochdale society made a great success. The success
of the society was mainly due to the rules adopted by the members in the
business transactions. These rules are
considered as the guiding principles which enable the cooperatives for its
growth and success.
The Rochdale Pioneers where successful in converting
their philosophy of mutual help into a practical economic system.
This post really opened my eyes to new ideas. I appreciate how you broke everything down so clearly!
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