Unit 5: Co-operation in Foreign Countries

Co-operation in Foreign Countries

Cooperatives are not only popular in India but also have a strong presence in many foreign countries.
Different nations have developed cooperative movements according to their economic needs and social structures.

Here we will study three important cooperative models from other countries:

• Co-operative Credit Movement in Germany
• Consumer Co-operatives in U.K. and Sweden
• Dairy Co-operatives in Denmark

Co-operative Credit Movement in Germany

• In the 19th century, German farmers and small businessmen were suffering due to poverty and lack of access to formal credit.
• Private moneylenders charged very high interest rates, so poor people couldn’t grow their business or farms.

Pioneers

There were two main leaders who started the co-operative credit movement in Germany:

Leader	Type of Cooperative	Focus Area
Friedrich Wilhelm Raiffeisen (1818–1888)	Rural Credit Cooperatives	Helped poor farmers in villages
Hermann Schulze-Delitzsch (1808–1883)	Urban Credit Cooperatives	Helped small traders, artisans, and shopkeepers in towns

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Raiffeisen Model (Rural Cooperatives)

• Based on self-help, mutual help, and self-responsibility.
• Members contributed small savings to create a common loan fund.
• Loans were given to farmers for seeds, tools, and land improvement.
• Interest rates were low and fair.
• Cooperatives were managed democratically by local members.

Schulze-Delitzsch Model (Urban Cooperatives)

• Focused on self-reliance of small urban workers and traders.
• Encouraged regular savings and responsible borrowing.
• Profits were shared among members.
• Helped small businesses compete with big firms.

Impact

• Reduced exploitation by moneylenders
• Promoted saving habits
• Increased agricultural and industrial productivity
• Inspired cooperative credit movements in other countries (including India)

Consumer Co-operatives in the U.K. and Sweden

(a) United Kingdom – The Rochdale Model

• The Rochdale Pioneers (1844) started the first successful consumer cooperative in England.
• They were a group of 28 weavers who opened a small store selling basic goods (flour, sugar, tea) at fair prices.
• The profits were returned to members as “dividends” based on their purchases.

Features of U.K. Consumer Cooperatives

Feature	Explanation
Democratic Management	One member = One vote
Fair Prices	Sold quality goods at reasonable prices
Member Benefits	Members shared profits as bonus/dividend
Education Fund	A part of profits used for cooperative education
Social Welfare	Promoted fairness, honesty, and community welfare

Impact

• U.K. cooperatives became a model for the world, known as the Rochdale Model.
• They helped control unfair pricing and monopoly practices by private traders.

(b) Sweden – Advanced Consumer Cooperatives

• The Swedish consumer cooperative movement began in the early 1900s.
• The largest cooperative organization is KF (Kooperativa Förbundet) – a national federation of consumer cooperatives.

Features of Swedish Cooperatives

Feature	Explanation
Strong Federation	Local cooperatives are members of KF
Modern Retail System	Operate supermarkets, online stores, and manufacturing units
Member Involvement	Members participate in planning and decision-making
Focus on Quality	Provide high-quality products and customer satisfaction
Sustainability	Encourage eco-friendly production and social responsibility

Impact

• Sweden’s cooperatives are highly efficient and modern.
• They combine member welfare with professionalism, and have strong brand value in the market.

Dairy Co-operatives in Denmark

• Denmark is a small European country known for milk, butter, and cheese production.
• In the late 19th century, small farmers faced problems selling milk at fair prices.
• They joined together to form dairy cooperatives.

Features of Danish Dairy Cooperatives

Feature	Explanation
Member-Owned Dairies	Farmers pooled milk and shared profits equally.
Use of Technology	Introduced modern machinery for processing milk and butter.
Export Focus	Danish dairy products were exported worldwide.
Training and Research	Farmers were trained in best dairy practices.
Strong Federation	Cooperatives united under the Danish Dairy Board for coordination and marketing.

Results/Impact

• Improved income of farmers
• Enhanced milk quality and hygiene
• Denmark became a world leader in dairy exports
• Inspired dairy cooperatives in India like AMUL

Summary Table

Country	Type of Cooperative	Founder/Organization	Main Features	Impact
Germany	Credit Cooperatives	Raiffeisen & Schulze	Self-help, fair loans, democratic	Reduced exploitation by moneylenders
U.K.	Consumer Cooperatives	Rochdale Pioneers	Fair prices, dividends, education	Foundation of modern cooperative model
Sweden	Consumer Cooperatives	KF Federation	Modern retail system, sustainability	Efficient and professional cooperatives
Denmark	Dairy Cooperatives	Danish Dairy Board	Technology, exports, farmer unity	World leader in dairy production

Conclusion

The cooperative movements in Germany, the U.K., Sweden, and Denmark show how cooperation can solve economic and social problems.
They proved that mutual help, democracy, and professionalism can build strong and successful businesses — even without private ownership.

Inspiration for India: The success of cooperatives like AMUL and NABARD’s rural credit programs is deeply inspired by these foreign cooperative models