MARX ON CO-OPS

 (a) We acknowledge the cooperative movement as one of the transforming forces of the present society based upon class antagonism. Its great merit is to practically show, that the present pauperising and despotic system of the subordination of labour to. capital can be superseded by the republican and beneficent system of the association of free and equal producers

(b) Restricted, however, to the dwarfish forms into which individual wage slaves can elaborate it by their private efforts, the cooperative system will never transform capitalistic society. To convert social production into one large and harmonious system of free and cooperative labour general social changes are wanted, changes of the general conditions of society, never to be realised save by the transfer of the organised forces of society, viz., the state power, from capitalists and landlords to the producers themselves.

(c) We recommend to the working men to embark on cooperative production rather than in cooperative stores. The latter touch but the surface of the present economical system, the former attacks its groundwork.

(d) We recommend to all cooperative societies to convert one part of their joint income into a fund for propagating their principles by example as well as by precept, in other words, by promoting the establishment of new cooperative fabrics, as well as by teaching and preaching.

(e) In order to prevent cooperative societies from degenerating into ordinary middle-class joint-stock companies (societies par actions), all workers employed, whether shareholders or not, ought to share-alike. As a mere temporary expedient, we are willing to allow shareholders a low rate of interest.- Marx Inaugural Address of the I.W.M.A.

He was indeed sympathetic to the cooperative model.

Apart from the above he previously wrote in 1864:
‘The value of these great social experiments cannot be overrated. By deed instead of by argument, they have shown that production on a large scale, and in accord with the behests of modern science, maybe carried on without the existence of a class of masters employing a class of hands...’

And later in Volume 3 of Capital Marx argued of co-operatives that ‘the antithesis between capital and labour is overcome within them, if at first only by way of making the associated labourers into their own capitalist, i.e., by enabling them to use the means of production for the employment of their own labour.'

However, in each case, Marx also described the limitations of co-operatives NOT advocating them as solutions.

‘...however... excellent in principle and however useful in practice, co-operative labour, if kept within the narrow circle of the casual efforts of private workmen, will never be able to arrest the growth in geometrical progression of monopoly, to free the masses, nor even to perceptibly lighten the burden of their miseries. … To save the industrious masses, co-operative labour ought to be developed to national dimensions, and, consequently, to be fostered by national means. Yet the lords of the land and the lords of capital will always use their political privileges for the defence and perpetuation of their economic monopolies. So far from promoting, they will continue to lay every possible impediment in the way of the emancipation of labour…To conquer political power has, therefore, become the great duty of the working classes.’ (IWMA 1864)

‘Restricted, however, to the dwarfish forms into which individual wages slaves can elaborate it by their private efforts, the co-operative system will never transform capitalist society. To convert social production into one large and harmonious system of free and co-operative labour, general social changes are wanted, changes of the general conditions of society, never to be realised save by the transfer of the organised forces of society, viz., the state power, from capitalists and landlords to the producers themselves.’ (IWMA 1866)

‘The co-operative factories of the labourers themselves represent within the old form the first sprouts of the new, although they naturally reproduce, and must reproduce, everywhere in their actual organisation all the shortcomings of the prevailing system’ (Capital, Vol.3)

Marx was saying that workers taking control of their own productive work processes, of organising co-operatively in firms, appeared to be a positive reaction on the part of workers to private capitalism. As such it was a source of growing confidence for the working class, proof that the historically progressive role of private capitalists had come to an end:

‘Co-operative factories furnish proof that the capitalist has become no less redundant as a functionary in production as he himself, looking down from his high perch, finds the big landowner redundant.’ (Capital, Vol. 3)