Cooperative-based economy

In a democratic libertarian society all businesses consisting of more than two people should be transformed by law into cooperatives with highly democratic status. A cooperative-based economy is an alternative to classical capitalism that can truly contribute to a more sustainable world. 

Unlike traditional capitalist enterprises, which are typically owned by a small group of shareholders, cooperatives distribute ownership and decision-making power among their members. This ensures that everyone has a say in how the business is run and that profits are shared equitably. This structure can help reduce income inequality and promote a more equitable distribution of wealth.

In traditional capitalist models, businesses are often in competition with one another, leading to cutthroat tactics and a focus on individual gain. In contrast, cooperatives promote cooperation and mutual support, as members work together to achieve shared goals. This can foster a sense of community and social responsibility, which can help create a more sustainable society.

In conclusion, a cooperative-based economy offers many advantages over classic capitalism. By prioritizing democratic decision-making, equitable profit-sharing, community-building, and environmental sustainability, cooperatives provide a viable alternative to traditional capitalist models. As we face growing challenges such as inequality and climate change, the cooperative model offers a promising path forward towards a more just and sustainable future.

​

Alternative economic theories developed in the last decade have many points in common: they emphasize the relationships among people and to the environment and insert values of solidarity into these relationships (cooperativism, egalitarianism, democracy, locally based, and sustainable business). They support an economy based on human needs rather than profit, and aim at breaking down oppressive economic hierarchies of all types, the development of human potential, and the preservation of local communities and the environment. Some recurrent concepts are shared by most of these theories. Decentralization is one of them, as it is common belief that the creation of networks of democratic local initiatives is more effective than that of a "world government", even a democratic one. [1]

​

Democratic libertarianism sees an economy based on private cooperatives with high democratic status, regulated by strong state legislation as a realistic alternative to classical capitalism. Cooperativism not only makes it possible to guarantee private initiative and avoid statism, but also makes it possible to guarantee at the same time democratic control and decentralization of production.

​

The International Cooperative Alliance provides seven principles of cooperatives, each that contrasts with capitalist firms [2]:

1. "Voluntary and Open Membership" (in contrast to coerced/involuntary participation)

2. "Democratic Member Control" (in contrast to nondemocratic control)

3. "Member Economic Participation" (in contrast to purely transactional relationships and closed-book management)

4. "Autonomy and Independence" (in contrast to state-owned or corporate-ownership)

5. "Education, Training, and Information" (in contrast to "Mushroom management" where workers are "kept in the dark," and information is intentionally funneled through power channels)

6. "Cooperation among Cooperatives" (in contrast to competition amongst firms)

7. "Concern for Community" (in contrast to purely product or profit-oriented concerns)

Amilcare Toscani in his Fundamental Charter of Freedom [3] promotes in fact a cooperative-based economic system: 

​

art. 53. Guarantee of private economic action

1. Everyone can engage in economic activity.

2. Anyone can establish a company with economic purposes.

​

art. 65. Private companies

1. Cooperative societies

Any society consisting of more than two people must function democratically and be a cooperative.

​a. The cooperative society must adopt bylaws.

b. Company capital consists of membership fees, contributions and profits.

c. Profits cannot be distributed and must be paid into the company capital.

d. Those who work for the cooperative must be members and pay the membership fee.

e. Unless otherwise provided in the bylaws, the cooperative is liable only from its own company capital.

​

2. Individual company

Each, when acting for economic purposes by working, is in fact an individual company.

​

​3. ​Pair company

​a. Pair companies are composed of two individual companies.

b. Agreements made on behalf of the pair company must be signed by both members to be valid.

c. The members are jointly and severally liable for all agreements made on behalf of the pair company and co-signed.

[1] https://base.socioeco.org/docs/solidarity_based_economy_in_europe.pdf (pag.8)

[2] "Cooperative identity, values & principles". Archived from the original on 2022-05-07. Retrieved 2022-05-02.

[3] Fundamental Charter of fredoom. Amilcare Toscani. Aria Edizioni, 2023, Lugano. (art. 53 e 65)