Promoting cooperatives would benefit Scotland

Across the UK, the cooperative economy is thriving. In contrast to the mainstream economy, the cooperative economy has grown by 19.6% since 2008 and clocked a £35.6 billion turnover for 2012. Membership of cooperatives is growing too, reaching an all-time high of 15.4 million: a 36% increase since 2008 and a 13.6% increase on the year previous. In Scotland alone, there are 593 co-ops with a combined turnover of £4.21bn. Cooperatives exist in a variety sectors crucial to daily life including retail, financial services, education, health and social care, and renewable energy providers. In comparison with its neighbours, Scotland’s cooperative economy is larger per capita than in England, Wales and Northern Ireland.

In Scotland alone, there are 593 co-ops with a combined turnover of £4.21bn

The cooperative economy goes far beyond The Co-operative Group and its troubles of late. Working from a true grassroots level, cooperatives offer a local alternative to the conventional provision of services underpinned by the principles of cooperation. Whether under the structure of consumer, worker, enterprise or mixed ownership, the relationships with those involved are at the heart of the model. The cooperative economy is thus independent, owned and controlled by the members within it, placing their benefit as the number one priority. Indeed, Scotland holds an important place in the history of the cooperative movement. The mills at New Lanark, under the direction of Robert Owen in the early 19^th century, were influential in the development of the cooperative movement and Owen himself is regarded as one of its founders. Recent plans to develop a community owned, self-sufficient settlement in South Lanarkshire under cooperative principles demonstrates Owen’s legacy is alive and well. Named Owenstown, Scotland could become the flag bearer for this model of cooperative living. Connected with the cooperative economy is the rise and success of Scottish employee-owned businesses. In a recent study conducted by Napier University, employee-owned businesses were found among Scotland’s high-growth firms and when compared to businesses of a similar size under conventional structures, their performance was generally superior. Scotland should strive to promote this model. Encouraging as this picture may be, it is important to note that cooperative and employee-owned structures alone will not secure Scottish prosperity – they must work alongside existing structures and receive sufficient support to grow. To be sure, the difficulties of The Co-operative Group demonstrate the importance of ensuring cooperative principles are protected and are not sidelined for short-term gain and rapid expansion. Irrelevant of the result this September, Scotland has an opportunity to place the principles of cooperative and mutual business models, as well as employee ownership structures, at the heart of its future. Such a move will not only benefit the Scottish people, but also bring an economic identity to the type future Scotland wishes to create for its citizens. David Fagleman is a researcher at ResPublica working in the new economies and innovative markets workstream. He tweets as @DFagleman.