Democratizing Rural Economy: Institutional Friction, Sustainable Struggle and the Cooperative Movement*

Abstract

Abstract Sustainable development demands institutions manage the conflicts and struggles that inevitably arise over material and ideal interests. While current cooperative theory privileges the economic element, a political economy of cooperation emphasizes cooperatives' tentative bridging of economic and political spheres with a democratic ethos. The cooperatives' democratic political structure exists in tension with a capitalist economic structure and other sites of friction. These contradictions are: in the realm of social relations, between production and consumption; in the realm of spatial relations, between the local and the global; and in the realm of collective action, between cooperatives as both traditional as well as new social movements. Where neo‐classical economic models seek to eliminate or reduce these tensions, political economy views these tensions as functional to sustainability by creating an “institutional friction” that facilitates innovation, flexibility and long‐term adaptability. This political economy of cooperation is intended as a step toward the development of a multidimensional sociology of cooperation.

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