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Abstract
The object of this paper is twofold: First, to demonstrate how the cooperative
business structure, rooted in democratic principles, when analyzed
within the framework of recent legal and critical theory, can be
shown to have a transformative effect in alleviating the adverse effects of
globalization. Second, to analyze the international legal environment, particularly
trade arrangements, to examine the capacity for co-operatives to
serve as social policy instruments for promoting social cohesion. This paper
uses Habermasian legal and critical theory in illustrating the close linkages
cooperative principles have with modern sources of legal legitimacy and
democratic theory. It is argued that cooperatives contribute to a healthy
public sphere and alleviate the “legitimation deficits” increasingly manifest
by the anti-globalization movement. This movement opposes the increasing
power of transnational capital and institutions vis-à-vis national governments,
and the lack of democratic control over such institutions and
organizations. In order for cooperatives to have an influence on social cohesion
and social capital, they must fully engage their democratic potential.
Cooperatives are one means of democratizing the market system, thereby
alleviating the negative effects of globalization. Consequently, there is a
policy interest in promoting cooperative development. Cooperation can offer
a viable alternative to global capitalism and transnational corporatism.
Policy recommendations will be offered for facilitating cooperative legislation
and for the promotion of cooperative development under international
trade arrangements. A number of United Nations sponsored international
conventions, such as the Co-operatives (Developing Countries) Recommendation
of 1966 (No. 127), already advocate cooperatives as an effective
means of social policy. With the increasing opposition to transnational corporatism,
opposition rooted in the democratic aspirations of citizens; there
is an increasing role for co-operatives to assert a democratic market alternative
for policymakers to facilitate this demand in the social economy.