lobs OF OUR own BUILDING A STAKEHOLDER SOCIETY ■ ALTERNATIVES TO THE MARKET & THE STATE Foreword by the Rev. Peter Thomson - Anglican Priest and mentor to Tony Blair race mathews radical writing JOBS OF OUR OWN Building a Stake-holder Society Alternatives to the Market and the State RACE MATHEWS jo4int*ly published <27 Pluto Press First published in 1999 under fhe Radical Writing imprint, jointly by Pluto Press Australia Locked bag 199, Annandale NSW 2038, Australia http://www.socialchange.net.au/pluto and Comerford and Miller 36 Grosvenor Road West Wickham, Kent, BR4 9PY, United Kingdom UK and Ireland distributors Central Books, 99 Wallis Road, London El 1 5LN All rights reserved. Copyright © Race Mathews 1999 Design and typesetting by Wendy Farley, Anthouse [email protected] Cover photographs are from The Family of Man exhibition, Museum of Modern Art, New York. Front: Howard Sochurek Back: Arthur Lavine Printed and bound by Aiken Press Australian Cataloguing in Publication Data Mathews, Race, 1935- . Jobs of our own: building a stakeholder society: alternatives to the market and the state. Bibliography. Aus ISBN 1 86403 064 X 1. Distribution (Economic theory.) 2. Cooperation Australia. 3. Cooperation - Great Britain. I. Title. 339.2 A catalogue record for this book is available at the British Library UK ISBN 1 871204 17 8 What people are saying about Jobs of Our Own... Race Mathews has produced an exciting, informative and visionary manuscript. As I read and re-read this work, 1 was continually struck by its relevance to the contemporary political scene here in Britain, as well as in other parts of the. world. It is a scholarly study which reads as easily as a novel. Peter Thomson, Anglican Priest, and, by Tony Blair's account, “the person who most influenced me”. In Britain, Canada, Spain and Australia, there have been on going efforts to develop an alternative and kinder way of doing business — a Middle Way - dating back to and beyond the opening of this century. Race Mathews has uncovered a fascinating and unexpected linkage between these apparently unconnected reform movements. Are these the roots of a 21st century renaissance? Father Greg MacLeod, Director of the Tompkins Institute, University College of Cape Breton, and author of From Mondragon to America: Experiments in Community Economic Development. Race Mathews’ book penetrates to the heart of the Mondragon Co-operative experience. There is a common factor in all three of his case studies: individual men - believers — who interpreted their mission in terms of responsibility to their natural community. Sr. Jesus Larranaga, former associate of Don Jose Maria Arizmendiarrieta, and one of the five founder members of the Mondragon co-operatives. This is a remarkable social history that illustrates the influence of personalities on the course of events. Conscience and the rejection of poverty was the dynamic that, led to insights into the necessity of equity in the distribution of wealth as a corrective. In England, intellectual debates and theories; in Antigonish, discussion and study issuing in social action; and in Mondragon insight, theory and action combined! And lastly, hope for the future. Sister Irene Doyle, former Antigonish Movement field worker and associate of Father “Jimmy” Tompkins and Father Moses Coady. JOBS OF OUR OWN iii RACE MATHEWS is a Senior Research Fellow in the Inter national Centre for Management in Government at the Monash University/Mt Eliza School of Business and Government in Melbourne. He has been a state MP and minister, a federal MP and a municipal councillor. He was Principal Private Secretary to Gough Wliitlam as Leader of the Opposition in the Australian Parliament 1967-1972 and to Opposition Leaders in the Victorian Parliament 1976-1979. His Australia's First Fabians: Middle-Class Radicals, Labour Activists and the Early Labour Movement was published by Cambridge University Press in 1994, and he is currently editing case study collections in public sector transparency and accountability and police and emergency services management. His E-mail address is [email protected] iv JOBS OF OUR OWN As an Australian I am disappointed that my own country is no longer part of the emerging Third Way consensus that is evident across Europe and the United States. Australia is languishing in a complacent comfort zone, unsure of its role in the global community. What appeared as a promising start during the Hawke-Keating years has fallen flat on its face under the present backward-looking conservative government, which continues to yearn for a lost past it can never recover. A warning to us all that there is nothing inevitable about progress. Race Mathews has remained a ‘true believer’. This book is a testament to his continuing search for the Third Way in politics. It is full ol optimism and hope. My wish is that it will be warmly received. Foreword ix Contents Foreword by Peter Thomson vii Author’s Preface x Ac kn o wlc dgc me n ts xiii PART I: BRITISH DISTRIBUTISM 1 Distributism: The Socialist Seedbed, the Catholic Harvest and the Public Benefit 2 2 ‘Why Are the Many Poor?’: Conscience and the Rejection of Poverty 20 3 Precursors and Converts: Henry Manning and Cecil Chesterton 42 4 The Originator: Hilaire Belloc and the Idea of Distributism 60 5 The Missionary, the Doctrine and the Debates 90 6 Putting Distributism on the Map: The Distributist League and the Weeklies 111 PART II: DISTRIBUTISM REBORN 7 The New Distributism in Nova Scotia: ‘Jimmy’ Tompkins, Moses Coady and the Origins of the xAntigonish Movement 134 8 The Antigonish Movement and the Limits of Rochdale Co-operation 154 9 Mondragon: The Role and Significance of Jose Maria Arizmendiarrieta 179 10 Mondragon: The Structure and Operation of the Co-operatives 198 11 Evolved Distributism: The Performance and the Promise 232 Bibliography 248 Endnotes 263 Index 294 JOBS OF OUR OWN v To the memory of Jimmy Tompkins, Moses Coady and Jose Maria Arizmendiarrieta vi JOBS OF OUR OWN Foreword by Peter Thomson Peter Thomson is an Australian Anglican priest, currently marking in Britain. Britain 5 Prime Minister, Tony Blair, describes him as 'theperson who most influenced me\ RACE MATHEWS has produced an exciting, informative and visionary manuscript. I am honoured to have been invited to write this foreword. As I read and re-read this work, I was continually struck by its relevance to the contemporary polit ical scene here in Britain, as well as in other parts of the world. It is a scholarly study which reads as easily as a novel. The scene is set deeply in that distinctive phenomenon of nineteenth-century British history, Christian socialism, and allows us to see the very wide meaning thinkers of the time gave to the term. Christian socialism had not then been subjected to the hijacking of its meaning and value by other groups on the Left, which so damaged its visionary warmth and appeal. Subsequently, the sense of hope for a people dispossessed of a stake in the emergent industrialised world was shattered by ideologies of the Left and the Right that were barely a caricature of the reality of human existence. From that perspective, the book traces the rise of distributism, through Hilaire Belloc and Gilbert and Cecil Chesterton and their links with Catholic social thinking, especially the work of Cardinal Manning, its account continues with the founding of the Antigonish initiative in Nova Scotia, through to the ongoing success of the collective Mondragon experience in northern Spain. Both Antigonish and Mondragon owed their birth to the entrepreneurial work of visionary yet ‘earthed’ Catholic priests, eagerly seeking a way to deal with one aspect of the legacy of industrialised capitalism: poverty, and hence dispos session. That so shameful a disregard of our brothers and sisters had occurred was not only a failure of intelligence but, worse, a failure of the heart: of character, even morality. We had lost our way. In our world of late twentieth-century capitalism, hope has now re-entered the political vocabulary with the advent of Foreword v i i New Labour, and its sweeping victory in the recent elections in Britain- A new symphony in a new key has been born, bearing the mark of a new and positive form of political democracy, where fraternitas — the common good — is seen to underpin the familiar tunes of equality and freedom. The name of the symphony is community. It is the Third Way. Together with hope, there has been a return of trust: another word which sears its way into the language of politics and the common good. The political polarities of the past are seen to be transcended by the realities of the present, by an acknowl edgement of the global economy and of the political possi bilities of the global village. Our human condition cries out ‘we long to belong’, but it is also the paradoxical nature of humanity that the ongoing tension — and often open tribal conflict — between the T and the ‘we’, with which even our families deal in the course of their daily round, can threaten the very fabric of our fragile social existence. If individualism is dying, collectivism in the form of state socialism is dead. Can we live with the understanding of that paradox within our political structures? the challenge is squarely before us. The future of our civilisation is at stake. The crisis is there to be met head-on. The answer must be that change is possible. Critical analysis is of the utmost importance, but cynicism must be seen for what it is: the product of a lazy intelligence, unnat ural in its cosy conservatism, fearful of risk, rejecting the power and energy of change. The new agenda of the Third Way, pioneered in Britain, has lit a flame that is spreading across Europe, and is finding its way into America. It is sharply focused. It is an investment in people. It is an admis sion that we belong together, and the key to it all is partner ship. The growing belief in the commercial world is that good business depends on a healthy society; In the eyes of Labor’s True Believers, the challenge for the social sector is to acknowledge that it needs all the help and support it can muster from other sections of society; in order to change a culture of dependency into one of enterprise and initiative. It is axiomatic politically that individuals prosper in a strong and active community of others, where the meaning of citizenship demands not only individual rights, but also responsibility and obligation. viii JOBS OF OUR OWN