Why Co-operatives?
In 2006, Muhammed Yunus and the Grameen Bank received the Nobel Peace Prize for their efforts through micro-credit to create economic and social development. Muhammed Yunus received the prize not in the field of economics because only sustainable development of the proletariat and the marginalised sections of society can bring peace. More than 80% of the world’s population lives in countries where income differentials are widening. The poorest 40% of the world’s population accounts for 5% of global income, while the richest 20% accounts for three quarters of world income. According to the World Bank (WB), the proportion of people in the developing world living on less than $1.25 a day was 20.5% in 2010, down from 43.1% in 1990 and 52.2% in 1981 (in 2005 prices). That is 1.22 billion people lived on less than $1.25 a day in 2010 compared with 0.91 billion in 1990 and 1.94 billion in 1981. In this paper an attempt is made to explain the relevance of Marxism and the need for the co-operative movement to assist in providing a means for social well-being of the downtrodden classes of people. Keywords: Economy and social development, sustainable development, Marxism