III. OWNERSHIP, PARTICIPATION & ECONOMIC ORGANIZATION

The New Traditional Economy

Cooperatives, community and economic participation in the Arctic

The concept of the New Traditional Economy was introduced by J. Barkley Rosser and Marina V. Rosser in their work on comparative economic systems. Gorm Winther took this concept into the Arctic context, developing it as a framework for understanding the relationship between traditional forms of cooperation, community organization and participation and modern economic institutions.

This perspective is particularly relevant in the Arctic, where economic organization cannot always be understood simply through the conventional distinction between market and state.

The importance and form of cooperatives vary considerably across the Arctic. Arctic Canada has developed a particularly extensive cooperative sector, including consumer, producer, supplier and multipurpose cooperatives. Greenland provides a different but equally important example: consumer cooperatives are widespread and successful, particularly in the larger towns, while attempts to establish supplier cooperatives largely failed to take hold. Non-cooperative employee ownership is extremely limited in Greenland, with only one employee-owned firm.

Alaska also has consumer, supplier/producer and worker cooperatives, alongside ESOPs and other forms of employee participation. The important point is that the scale and relative importance of these forms differ considerably between Alaska, Greenland and Arctic Canada.

The presentation explores

• What is the New Traditional Economy, and how can the concept be applied to the Arctic?
• How can traditional forms of cooperation interact with modern economic institutions?
• Why have cooperatives become particularly important in Arctic Canada?
• Why have consumer cooperatives developed successfully in Greenland while supplier cooperatives did not?
• What distinguishes consumer, supplier, producer, employee and multipurpose cooperatives?
• How do cooperative enterprises differ from conventional investor-owned corporations?
• What can Greenland and Alaska learn from the broader cooperative experience of Arctic Canada?
• Can cooperative institutions strengthen economic self-reliance and local decision-making?

Ownership, Participation and Economic Development

Who owns the economy—and who benefits from it?

Economic development is often discussed in terms of investment, productivity, employment and economic growth. But an equally important question is who owns the businesses and resources that generate economic value.

Ownership affects not only the distribution of income, but also decision-making, investment priorities, employment and the ability of local communities to influence their economic future.

This briefing examines the relationship between ownership, participation and local economic capacity.

The presentation explores

• How does ownership influence economic decision-making?
• Who controls investment and development?
• What happens when businesses and resources are predominantly owned outside the region?
• How much economic value remains locally?
• Can local ownership strengthen development?
• What role can public, cooperative, employee and private ownership play?
• How does ownership relate to economic self-reliance and political self-government?

Employee Ownership and the Democratic Enterprise

Can businesses combine economic performance with greater participation?

Employee ownership is one form of participatory economic organization, but it is not synonymous with the broader cooperative tradition.

Employee ownership exists in a variety of forms, including employee-owned companies, cooperative enterprises and Employee Stock Ownership Plans (ESOPs). In the Arctic, its development is uneven. Alaska provides important examples of ESOPs, while non-cooperative employee ownership remains much more limited in Greenland and other Arctic regions.

This briefing examines the economic and organizational logic of employee ownership and democratic enterprise while placing it within the wider landscape of ownership structures.

The presentation explores

• What is an employee-owned enterprise?
• What are ESOPs and how do they operate?
• How does employee ownership differ from cooperative ownership?
• Can employee ownership improve commitment and organizational performance?
• Can workplace democracy coexist with commercial competitiveness?
• Could employee ownership contribute to economic development in northern communities?

Cooperatives as Economic Institutions

Consumer, producer, supplier and multipurpose cooperatives

Cooperatives are not a single organizational model. They can be organized around different groups of members and different economic functions.

This briefing examines cooperatives as economic institutions and considers why particular forms develop successfully in some societies but not in others.

The Arctic provides a valuable comparative field. The cooperative experience of Arctic Canada differs significantly from that of Greenland and Alaska, illustrating how history, settlement patterns, markets, political institutions and local economic conditions influence institutional development.

The presentation explores

• What distinguishes different types of cooperatives?
• Why do consumer cooperatives flourish in some northern communities?
• Why have producer and supplier cooperatives developed differently?
• What makes multipurpose cooperatives relevant to small communities?
• How are cooperative enterprises governed?
• How can cooperatives retain economic value within communities?
• Why have cooperative institutions developed so extensively in Arctic Canada?
• What can Greenland's consumer cooperative experience teach other regions?

Economic Democracy and Participation

Can democracy extend beyond the political sphere?

Democracy is normally associated with elections, political representation and government. But people also make important decisions through the economic institutions in which they work, invest, consume and participate.

This briefing examines economic democracy through ownership, participation, cooperatives, employee ownership and democratic enterprise.

The presentation explores

• What is economic democracy?
• How does economic power relate to political power?
• Who makes decisions within enterprises?
• What difference does ownership make?
• Can employees exercise meaningful influence over their workplaces?
• How do cooperatives organize democratic decision-making?
• Can economic democracy strengthen communities?

Participation Beyond Ownership

Workplace participation, co-determination and grassroots action

The New Traditional Economy should not be understood solely in terms of cooperative ownership or employee-owned enterprises. Participation in economic life can take several different institutional forms.

One important form is participation within conventional enterprises, including state-owned enterprises (SOEs). This can involve employee representation on company boards, labor-management cooperation committees and shop-steward systems. Such arrangements have been particularly significant in Greenland.

This should be distinguished from co-determination. Participatory internal management concerns involvement within the enterprise itself. Co-determination is broader: it involves the representation and articulation of organized interests in economic and political decision-making, including trade unions, employers' associations, fishermen's and hunters' associations and other organized groups.

In this respect, co-determination is associated with the Scandinavian corporate political model. Here, corporate refers to an institutional system of interest representation and social coordination, not to a business corporation in the North American sense.

Participation also takes place through grassroots movements and community organizations. Greenland provides examples in local resistance to uranium mining and oil and gas exploration. Such movements can influence whether, how and under what conditions economic development takes place.

Together, cooperative organization, workplace participation, co-determination and grassroots mobilization provide different channels through which people and organized interests can influence economic development.

The presentation explores

• What forms can participation take beyond ownership?
• How does employee representation in SOEs work?
• What is the difference between workplace participation and co-determination?
• How does the Scandinavian corporate political model differ from the North American use of corporation?
• How can organized interests influence economic and political decisions?
• What role can grassroots movements play in resource development?
• What can Greenland and other Arctic societies learn from these different forms of participation?