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7
III. Project Design
Review of the Literature

As previously discussed in the community needs assessment, the goal of this project,
broadly speaking, is to increase the level of cooperation among cooperatives in the
Northeast region in order to bolster their individual success as independent, locally-
owned businesses as well as contribute to building a cooperative economy and movement
in the Northeast.

The literature on cooperatives points often to cooperation among cooperatives as a key
feature that contributed to the success of the Mondragón cooperatives in the Basque
region of Spain. For example, Davidmann (1996) writes "To a considerable extent the
success of Mondragón's co-ops resulted from the way they co-operated with each other
in providing for the needs of their local community."

Beyond providing for the success of individual cooperatives, cooperation is also
necessary to build a strong cooperative movement. Davidmann (1996) points out that
"the co-operative movement's ability to achieve its aims and to prosper depends on
taking... into account [that] there is... a mutuality of interest, a partnership, between co-
ops and more particularly between co-ops of different kinds, between co-ops co-
operating, supporting and advising each other."

There are clearly many forms that cooperation can take. One way that coops can
cooperate with each other is to form support cooperatives that are collectively owned and
managed. These can provide essential services, such as insurance, health care, or research
and development, or can be sources of business advice. All of these types of support
cooperatives exist in Mondragón. In the past, the banking coop, the Caja Laboral Popular,
provided business advice (Davidmann 1996). Currently the Mondragón Cooperative
Corporation (MCC) central offices provide management consulting services to affiliated
cooperatives. For example, the central offices directed the introduction of Total Quality
Management (TQM). (Clamp 2005) A few of the MCC cooperative companies provide
consulting services for a fee to both MCC and outside clients. (See for example,
www.mondragon.mcc.es > Products and Services > Services > Technicians for a partial
listing of several of the different consultancy companies within the Mondragón
organization.)

Another possible form of cooperation is building a recognized cooperative brand. This
can take place at many different levels. The worldwide cooperative movement took one
step toward that goal when it created the ".coop" top-level domain (ICA 2004; see Figure
1-A). North American cooperatives use a logo with twin pines to identify themselves as
coops (see Figure 1-B, NWCDC 2004). Cooperative grocers in the U.S. have started to
make certain purchases collectively to receive volume discounts, and then place these
items on sale in their stores under the heading "Co-op Advantage." (See for example
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