People-Centred Businesses: Co-operatives, Mutuals and the Idea of Membership

Abstract

It is not until the end of the second, or perhaps the beginning of the third, chapter of this book on peoplecentred businesses, a slim volume coming in at slightly more than 200 pages, that one begins to wonder if the author, Johnston Birchall, is slightly mad to have written it.Birchall may be familiar to many who study co-operatives, including those who focus on co-operatives' role in poverty reduction or community building.He has authored various works, including some for international bodies such as UNDESA and ILO, so his international reach is significant.This particular book identifies its main question as being "How significant are member-owned businesses [MOBs] in the wider scheme of things?"Its attempt to answer this question is underpinned by much background research and the project, based on the title, seems reasonable enough.And then one realizes that this question is only the tip of the iceberg and that, in fact, the approach of the book is not at all about trying to come to grips with a particular descriptive aspect of MOBs, or even a theoretical approach (i.e., the idea of membership), but is rather an attempt to explain how MOBs began in various places and periods, how and why they survived (or not), and their prospects for the future.The study is not confined to one country, continent, or region: the whole world is fair game here.And neither is it limited to one sector: distinct chapters deal with consumer-owned retail businesses, insurance providers, housing, public services and utilities, consumer-and producer-owned banks, and producer-and employee-owned businesses.To add to the mounting task, a general description of the importance of MOBs and definitions (including a taxonomy of MOBs) are set out in the first chapter.The second chapter then sets out no fewer than 10 theories that "explain why co-operatives succeed or fail" (and bravely declares that all may be put to use depending on their utility), in addition to historical accounts, case studies, and empirical studies, although the author finally decides to use an overall "ecology" theory of businesses, identifying seven periods of development and three level of analysis.The penultimate chapter focuses on MOBs in developing countries; and the final chapter deals with the idea of membership.Right.Then, "we should now be able to get on and begin to provide a detailed description and analysis of each of the MOB sectors in turn" the book declares at the end of Chapter 2, before, of course, introducing yet another question to be answered: where to begin the historical clock ticking.Dispensing with that analysis in the space of less than two pages, off we go to start with retail consumer co-operatives.

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