Cooperatives as an antidote to economic growth Lindsay Cole, Yuill Herbert, Will McDowall and Colin McDougall We begin this paper with a caveat; the authors do not have an academic background in economics or in the study of cooperatives. We are: two sustainability consultants, a policy analyst and a fair trade entrepreneur and we all work for or with cooperatives. In our diverse experiences, we recognise the need for a different economic model and this paper is explicitly positioned to launch a discussion and debate around the role of cooperatives in a just and ecologicallysustainable society. Introduction The profound insight of the field of ecological economics is that economic growth is constrained by ecological limits. This insight has been illustrated using the ecological footprint model (Wackernagel, 2002); with a comprehensive survey of the state of ecosystems (MEA, 2005), theoretically (Daly, 2004) and, is highlighted in the “real world” by a full spectrum of social, ecological and economic implications arising from attempts to negotiate a coordinated global response to humaninduced climate change (UNFCCC, 2009). Modern capitalism, which can be considered the 'operating system' of the world economy (Speth, 2008), is growth dependent and becomes unstable in the absence of growth. Economic theory indicates that human welfare is dependent on and therefore justifies economic growth, yet economic growth is undermining the ecological systems which support life on earth. The current economic crisis has opened up intellectual space for discussions regarding the centrality of growth in policymaking. The UK Government recently published a major study on the implications of an economy without growth (UK 1 Sustainable Development Commission, 2009). Similarly, in France, President Sarkozy has established a Commission to explore ways of measuring 'social progress' that move beyond narrow measures of economic activity and growth such as GDP . 2 The Stiglitz Commission is exploring the idea that by focusing on narrow, monetary measures of social wellbeing, such as GDP, political leaders are neglecting the negative impacts of growth. However, these conversations have occurred or are occurring primarily at the macroeconomic level and limited consideration has been given to the organisational implications of an economy focused on sustainability and wellbeing as opposed to growth. These implications are potentially profound. For two reasons, the current financial meltdown can be viewed as a crisis of corporate governance. First because governments have failed to adequately regulate the irresponsible behaviour of the financial sector, and instead have sought to deregulate financial markets in the interests of growth. Second, and of greater interest to the cooperative movement, the ownership structure of much of the economy is based on the maximisation of profits in the interest of creating and growing shareholder value. In other words, the ownership of business is organized solely in the interests of profits and growth. Social and environmental concerns, while a necessary consideration under this model, become a constraint to be managed within the context of financial return. In contrast, cooperatives recognise that the objectives of a society are more than financial success alone. Instead of focusing on maximising shareholder value defined in narrow, monetary terms, cooperatives work to the general benefit of their members. In the case of cooperatives, it is financial return that becomes the constraint to be managed within the context of maximizing member benefit. This paper explores key drivers for a no growth economy the underlying theory and its implications  and why cooperatives can make an important contribution to an economy that is not focused on growth. Cooperatives are not a panacea to solve all the illeffects of global capitalism; however, we argue that the cooperative model offers a structure of governance that is better suited to an economy that aims for sustainable wellbeing and prosperity rather than growth for growth's sake. The growth dilemma Growth is unsustainable 1 Articles have made their way into the mainstream press. For example: Canwest News Service (2009). Time for a Green Bottom Line. March 28, 2009. Published in the Vancouver Sun, Ottawa Citizen. Accessed March 2009 at: http://www.canada.com/technology/Time+green+bottom+line/1438673/story.html 2 The Stiglitz Commission includes a number of nobellaureate economists. See: http://www.stiglitzsenfitoussi.fr/en/documents.htm