Decision Making, Participation and Development (Leaving Cert Geography): Revision Notes
Decision making, participation and development
What are cooperatives?
A cooperative is a group of individuals or businesses that voluntarily unite to meet their shared needs and goals. These organisations operate very differently from traditional businesses - instead of focusing primarily on maximising profits, cooperatives prioritise shared benefits and democratic participation in decision-making processes.
Unlike traditional businesses that focus on profit maximisation for shareholders, cooperatives operate on the principle of mutual benefit, where all members have an equal voice regardless of their financial contribution.
Cooperatives play a crucial role in increasing community participation and driving development. Members actively participate by making decisions together, electing leaders, and determining the organisation's direction. This creates a strong sense of ownership, community belonging, and empowerment among participants.
How cooperatives empower participation and development
Individual empowerment through participation
When people join cooperatives, they gain a voice in how the organisation operates. This democratic approach gives members real influence over decisions that affect their livelihoods and communities.
Practical Example: Agricultural Cooperatives
In agricultural cooperatives, farmers work together to:
- Share resources like machinery and equipment
- Negotiate better prices collectively with buyers
- Access markets that would be difficult to reach individually
- Pool knowledge and expertise for improved farming practices
Economic benefits through collective action
Cooperatives enable members to achieve economies of scale by pooling their resources and knowledge. Small-scale producers can compete in markets that might otherwise be inaccessible to them. This leads to increased income and improved living standards, particularly in rural areas where cooperatives are often most successful.
The power of collective action allows small producers to compete with larger businesses by combining their individual strengths into a more powerful economic force.
Addressing social challenges
Cooperatives tackle social and economic barriers that hinder development by providing essential services. They offer access to healthcare, education, and financial services in areas where these might be lacking. Credit unions, for example, provide banking services to people who might be excluded from traditional financial institutions.
Global significance
Worldwide Cooperative Impact
According to the International Cooperative Alliance:
- Over 3 million cooperatives worldwide
- More than 1 billion members globally
- Generate over 250 million jobs internationally
These figures demonstrate the massive economic and social impact of cooperatives across the globe.
Case study: Ireland's agricultural cooperative movement
Historical development
Historical Example: Ireland's Cooperative Foundation
The cooperative movement in Ireland began with the Irish Agricultural Organisation Society (IAOS), established in 1894 by Sir Horace Plunkett. This organisation aimed to unite the scattered agricultural cooperatives that already existed across Ireland. Over time, the movement expanded beyond agriculture and eventually became the Irish Cooperative Organisation Society (ICOS).
Scale and membership
ICOS Network Statistics
ICOS represents an extensive network with impressive reach:
- Over 150,000 individual members
- 12,000 employees within Ireland
- Additional 24,000 employees abroad
- Combined annual turnover of €12 billion
- Major companies include Aryzta, Tirlán, and Kerry Group
Diverse sectors of operation
Irish cooperatives operate across seven main sectors, demonstrating the versatility and adaptability of the cooperative model:
- Multipurpose dairy cooperatives: Essential to Ireland's thriving dairy industry, handling milk production, processing and distribution
- Livestock sector cooperatives: Involved in meat production and trading within the livestock industry
- Store, trade, and wholesale cooperatives: Contributing to Ireland's retail landscape through efficient distribution networks
- Service-related cooperatives: Providing essential community services, demonstrating the cooperative ethos of mutual welfare
- Community-oriented, culture, and leisure cooperatives: Enriching Irish communities by promoting cultural activities and leisure opportunities
- Food, fishing, and beverage cooperatives: Contributing to production, processing, and distribution in the food and beverage industry
- Advisory and education-related cooperatives: Supporting knowledge-sharing and providing valuable guidance services
Geographic presence
ICOS maintains offices in Dublin and Cork, showing its commitment to both urban and rural communities. The organisation also has a presence in Brussels, demonstrating its involvement in broader European cooperative initiatives.
Case study: Brazil's agricultural cooperative movement
Historical foundations
Historical Example: Brazil's Cooperative Origins
Brazil's cooperative movement dates back to 1889 with the founding of the Economic Cooperative of Public Employees of Ouro Preto in Minas Gerais. This initial cooperative focused on agricultural product consumption. The movement expanded across states including Pernambuco, Rio de Janeiro, São Paulo and Rio Grande do Sul. In 1902, Swiss priest Theodor Amstad established Brazil's first credit union, marking another milestone in the movement's development.
Massive scale and impact
Brazil's Cooperative Movement by Numbers
Brazil's cooperative movement has grown to impressive proportions:
- 6,828 cooperatives operating nationwide
- 425,318 employees working within the cooperative sector
- 14,618,720 members participating in cooperatives
Agricultural dominance
Brazil, often called the 'breadbasket of the world', relies heavily on its 1,543 agricultural cooperatives for food production. These cooperatives contribute to 50% of the nation's food supply. Approximately 361,000 people find employment within the cooperative sector, and 6.2% of all Brazilians are associated with a cooperative. Over 70% of the country's food consumption originates domestically, with cooperatives playing a vital role in Brazil's exports, accounting for more than USD $5.2 billion.
Brazil's agricultural cooperatives are not just significant domestically - they play a crucial role in global food security by contributing substantially to international food supplies.
The role of OCB (Organisation of Brazilian Cooperatives)
Organisational Example: OCB's Functions
Established in 1969, OCB serves as the national trade body for cooperatives across all 27 Brazilian states. The organisation develops strategies and manages cooperative local organisations.
Key OCB Activities:
- Supporting smallholders by providing machinery, equipment, and financial aid through rural credit unions
- Handling logistics while farmers focus on producing high-quality products
- Ensuring optimal product quality through OCB-affiliated cooperatives
Legislative support and advocacy
Government Support for Cooperatives
OCB advocates for legislation favouring the cooperative sector. Federal government actions, supported by OCB's efforts, have directly benefited cooperatives through:
- Permissions for establishing free accession cooperatives
- Creating cooperatives comprising professionals or business groups from multiple categories
- Facilitating credit cooperative operations in rural areas
Community and environmental impact
Local community benefits
Cooperatives create far-reaching positive impacts on local communities. The following examples demonstrate how cooperatives address both social and environmental challenges while empowering their members.
Community Example: Mossoró Cooperative
The cooperative Mossoró in Rio Grande do Norte has provided agro-ecological technical assistance, enabling members to practice sustainable crop cultivation. Mossoró has also improved water supply systems, benefiting over 3,000 families in the region.
Environmental stewardship
Environmental Example: CoopCerrado
CoopCerrado, a cooperative of organic farmers, demonstrates environmental leadership through its two-decades-long effort to promote regenerative and organic production for smallholder and traditional communities. This cooperative, consisting of 238 smallholder and traditional communities across five states, plays a crucial role in sustaining the fragile biome of the Cerrado region. By sustainably commercialising non-timber forest products, CoopCerrado provides a blueprint for sustainable supply chains that preserve ecosystems.
Sustainable development model
The cooperative movement in Brazil, exemplified by organisations such as OCB and CoopCerrado, has created positive economic, social and environmental changes. Through collaborative efforts, advocacy and sustainable practices, these cooperatives contribute significantly to Brazil's economy, food security, and environmental conservation. The movement empowers communities while setting an example for sustainable and inclusive development.
Key Points to Remember:
- Cooperatives are democratic organisations where members voluntarily unite to meet shared needs through collective decision-making rather than profit maximisation
- Participation creates empowerment by giving members a voice in operations, leading to stronger communities and improved livelihoods
- Economies of scale benefit small producers by pooling resources to access markets and negotiate better prices that would be impossible individually
- Global impact is substantial with over 3 million cooperatives worldwide serving 1 billion members and generating 250 million jobs
- Case studies demonstrate diverse applications from Ireland's €12 billion turnover across multiple sectors to Brazil's 50% contribution to national food supply through agricultural cooperatives