How Mutualism Empowers Communities

. Political figures of all stripes have sought to claim moral capitalism as their own personal high ground, although this sentiment is yet to translate into serious policy commitments. There has, it should be noted, been a great deal of frustration at the sluggish pace of reform since the initial crash of 2008, prompting many people to wonder whether we really have learned the necessary lessons to prevent a repeat in future.

There have, however, been some encouraging developments at grassroots level. More and more people, it would seem, are looking at mutualism in a new light to see whether it has real relevance to todays society. The endurance of many mutual firms, which sustain local communities and economies all over the country and have done for generations, suggests that they must have something going for them. Centuries after the first consumer cooperative founded in East Ayrshire in 1769 was founded, the idea of encouraging the formation of a new generation of mutually-owned firms has once again started to gain traction.

The current economic malaise which has now stretched into its sixth year has led to a number of awkward questions being levelled at the very cornerstones of the Anglo-American capitalist model. One pillar of this model, shareholder value maximisation, is being looked at in a critical light by many. Critics say this particular model, which places shareholder value above all other concerns, is simply not conducive to a stable society and promotes short-term returns above long-term stability. They point to the German social market which reminds firms of responsibilities to stakeholders including employees and local communities as a superior alternative, and note that the German economy has been more robust in recent years than many of its more liberal counterparts.

Whatever happens over the next few years, it seems as if the financial crisis and subsequent slump has left an indelible mark on millions of people not just in the UK but abroad as well. It remains unclear just how were all going to find our way out of the downturn, but dont be surprised if new mutually-owned businesses empowering workers to shape their own futures and trusting them with real responsibility play a crucial role in driving the UK economy into a new, more stable era.

by: Amy

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