Democratic member control in Chinese cooperatives: A study of the Gung Ho Movement
Table Of Contents
<p>
Table of Contents </p><p>Abstract .......................................................................................................................................... iii
Acknowledgements..........................................................................................................................v
List of Figures .............................................................................................................................. viii
Abbreviations..................................................................................................................................ix
Chapter ONE
: Introduction................................................................................................................1
1.1 Research Contribution ............................................................................................................4 </p><p>1.2 Chapter Outline.......................................................................................................................7
Chapter TWO
: Gung Ho ..................................................................................................................11
2.1 Cooperatives.........................................................................................................................11
2.1.1 Cooperative Definition...................................................................................................11 </p><p>2.1.2 Types of Cooperative Enterprise ...................................................................................16 </p><p>2.1.3 Cooperatives: development and modern significance ...................................................17 </p><p>2.2 History of Cooperatives in China .........................................................................................18 </p><p>2.3 The Gung Ho Movement......................................................................................................22
2.3.1 Rewi Alley and the beginning of the Gung Ho movement............................................22 </p><p>2.3.2 The Gung Ho Movement Goes into Hiatus ...................................................................24 </p><p>2.3.3 Revival of the International Committee for Chinese Industrial Cooperatives...............24 </p><p>2.4 The New Zealand China Friendship Society........................................................................26
2.4.1 Establishment of New Zealand China Friendship Society ............................................26 </p><p>2.4.2 New Zealand China Friendship Society and the Gung Ho Movement..........................26 </p><p>2.5 Shandan County....................................................................................................................27
2.5.1 The Shandan Bailie School............................................................................................28 </p><p>2.5.2 Shandan Cooperative Experimental Zone .....................................................................29 </p><p>2.5.3 Work of New Zealand China Friendship Society in Shandan .......................................29 </p><p>2.6 The 2007 Farmers’ Professional Cooperative Law ..............................................................30
2.6.1 Definition of a cooperative under Chinese Law ............................................................30 </p><p>2.6.2 Chinese Cooperative Principles.....................................................................................31 </p><p>2.6.3 Development of Chinese Cooperatives under the 2007 Law.........................................33 </p><p>2.7 Conclusion............................................................................................................................35
Chapter 3
: Cooperative Democracy ...............................................................................................36
3.1 Historical Development of a Democratic Workplace...........................................................36 </p><p>3.2 Variations in Terminology....................................................................................................40 </p><p>3.3 Working Definition of Workplace Democratization ............................................................43 </p><p>3.3.1 ‘Measuring’ workplace democracy................................................................................47 </p><p>3.4 Workplace Democratization within Cooperatives................................................................49 </p><p>3.5 Workplace Democracy within Chinese Cooperatives..........................................................61 </p><p>3.6 Conclusion............................................................................................................................70
Chapter FOUR
: Cooperatives as relationships of power ..................................................................72
4.1 The Contested Nature of Democracy ...................................................................................73 </p><p>4.2 Organization and Power .......................................................................................................74</p><p> 4.3 Discursive Reality.................................................................................................................76 </p><p>4.4 Critical Discourse Analysis view of power..........................................................................81 </p><p>4.5 Foucaldian Discourse Analysis view of power ....................................................................82 </p><p>4.6 Examples of Foucaldian Discourse Analysis in management studies..................................89 </p><p>4.7 Critiques of Foucaldian Discourse Analysis ........................................................................94 </p><p>4.8 Cooperatives as Relationships of Power ..............................................................................97 </p><p>4.9 Conclusion............................................................................................................................97
Chapter FIVE
: Research Design ......................................................................................................99
5.1 Research Strategies.............................................................................................................100
5.1.1 An ethnographic approach ...........................................................................................102 </p><p>5.2 Locating myself as a researcher..........................................................................................104</p><p>5.3 Data Collection...................................................................................................................106
5.3.1 Interviews.....................................................................................................................107 </p><p>5.3.2 Observation ..................................................................................................................112 </p><p>5.3.3 Secondary Data ............................................................................................................113 </p><p>5.4 Translation..........................................................................................................................114 </p><p>5.5 Ethical Implications............................................................................................................115 </p><p>5.6 Methodological Limitations ...............................................................................................116 </p><p>5.7 Data Analysis......................................................................................................................119 </p><p>5.8 Conclusion..........................................................................................................................128
Chapter 6: What’s in a name? Exploring the meanings of the Cooperative Enterprise in China 129
6.1 Local experience versus international standards................................................................132 </p><p>6.2 Under the Influence ............................................................................................................139 </p><p>6.3 Common people, uncommon knowledge ...........................................................................149 </p><p>6.4 Progress not Perfection.......................................................................................................157 </p><p>6.5 Conclusion..........................................................................................................................161
Chapter 7: The Meanings and Practice of Democracy in Chinese Cooperatives.........................163
viii
7.1 Chinese Democratic Parameters.........................................................................................163
7.2 Democratic Meanings.........................................................................................................169 </p><p>7.3 Cooperative Democracy in Practice ...................................................................................176 </p><p>7.4 The role of leadership.........................................................................................................187 </p><p>7.5 Conclusion..........................................................................................................................195
Chapter 8: Discussion...................................................................................................................196
8.1 Inconsistencies and opportunities in defining a ‘true’ Chinese cooperative ......................197 </p><p>8.2 Workplace Democracy and the leader/ member relationship.............................................205 </p><p>8.3 The Chinese Communist Party and its relationship to Workplace Democracy in the
Shandan cooperatives...............................................................................................................213 </p><p>8.4 Conclusion..........................................................................................................................222
Chapter 9: Conclusion..................................................................................................................224
9.1 Key Arguments...................................................................................................................224 </p><p>9.2 Contributions to the study of workplace democracy and cooperatives..............................231 </p><p>9.3 Methodological Contributions............................................................................................235 </p><p>9.4 Practical Implications.........................................................................................................236 </p><p>9.5 Future Research ..................................................................................................................237
9.6 Conclusion..........................................................................................................................240
REFERENCES...........................................................................................................................242
Appendix A: Interview Questions for ICCIC Members in Beijing and Shanghai.......................269
Appendix B: Interview Questions for Cooperative Leaders........................................................271
Appendix C: Interview Questions for Cooperative Members......................................................273
Appendix D: Observation Guidelines..........................................................................................275 </p>
Project Abstract
<p> <b>ABSTRACT </b><br></p><p>
Since the end of the Chinese civil war in 1949, the Chinese Communist Party has encouraged
various forms of collective agricultural organizations in an effort to improve economic
development for those living in rural areas. The introduction of a Specialized Farmers’ Cooperative
Law in 2007 has seen an upsurge in the formation and registration of agricultural cooperatives in
China. The law specifically states that Chinese cooperatives must be democratically managed.
The main aim of this thesis is to explore the various meanings of democracy within Chinese
cooperatives. To do this, the meaning and definition of the cooperative enterprise in China, is also
scrutinized. Modern day cooperatives in Shandan County, that have been historically associated
with the ‘Gung Ho’ movement, are the empirical focus of this thesis.
This thesis makes an original contribution to the field of workplace democracy by presenting a
qualitative exploration of democracy within cooperative organizations in China. Over recent years,
there have been a limited number of efforts by scholars to quantitatively measure the level of
democracy within Chinese cooperatives through the use of large-scale surveys. In contrast, this
thesis draws on ethnographic principles of data collection. A series of in-depth interviews,
conducted over a seven month period in China, provides a rich data source to examine the meanings
of democracy within Chinese cooperatives. Unlike the studies previously conducted within this
academic field in China, this thesis does not assume there is necessarily a single appropriate
definition that can accurately measure the complex concept of democracy on a quantitative scale.
This thesis adopts a critical approach to the research questions based on the analytical theories of
Michel Foucault, in particular, his theories of power/ knowledge relations. The discourse(s) that
interview informants used to describe their interactions and experiences within their cooperatives
allow for an exploration of the power relations that exist to circulate, regulate, and resist the
discourse(s) on democracy. This thesis presents an alternative perspective to the commonly used
quantitative studies and provides an alternative approach that is able to further analyze and
understand the function and presence of democracy in Chinese cooperatives. The use of this
theoretical approach leads to a discussion on the complex power relationships between cooperative
members and their leaders
<br></p>
Project Overview
<p><b>1.0 INTRODUCTION</b></p><p><b>1.1 BACKGROUND STUDY</b></p><p>
</p><p></p>
The underlying premise of this thesis is that cooperative enterprises have the potential to stimulate
economic development and encourage democratic participation. The focus of this thesis is an
exploration of agricultural cooperatives in China. However, the benefits of cooperative
development have been experienced worldwide. Over recent years, there has been a growing
interest in cooperative enterprises from major international agencies. In recognition of the
important role cooperatives play in social development, poverty reduction, employment creation
and participatory development, the United Nations (UN) declared 2012 as the ‘International Year
of Cooperatives’ (UN, 2011a). The UN has acknowledged the impact that cooperatives have on
improving social integration, and the successful development of common social and economic
needs and aspirations (UN, 2011b).
The International Labour Organization (ILO) hails cooperatives as people centred organizations
concerned for their members and communities, and which also place a high regard on democratic
and human values (Birchall, 2003). It is proposed that, through their promotion, cooperatives have
the potential to positively contribute towards the attainment of the Millennium Development Goals
that were set by the UN in 2000, especially in regard to halving poverty by the year 2015 (Logue
& Yates, 2006). Cooperatives have been touted as organizations that help the poor and should
hence be given more support in the interests of social equity and fair globalization (Birchall, 2004;
Bibby and Shaw, 2005).
The purpose of this thesis is to explore the definition of cooperatives from the perspective of
cooperative members in China. Specifically, it will focus on the meaning of democratic member
control, a pivotal feature of the cooperative enterprise. As defined by the International Cooperative
Alliance (ICA), cooperatives are “an autonomous association of individuals united voluntarily to
meet their economic, social, and cultural needs and aspirations through a jointly owned and
democratically controlled enterprise” (ICA, 1995). The ICA is the world’s largest nongovernmental organization (NGO) representing over a billion cooperative members worldwide.
<br><p></p><p>
Essentially, a cooperative is an organization that is owned by its members, controlled by its
members, and operates for the benefit of its members (Barton, 1989). There are a number of
different forms of the cooperative enterprise including: producer, supplier, worker, and financial
cooperatives, each with its own unique purpose for cooperation between individuals who choose
to join the cooperative. Cooperatives aggregate the market power of individuals who on their own
could achieve little or nothing; therefore, they provide a way out of poverty and powerlessness.
Through collective ownership, individuals pool resources together and share risks in order to solve
common problems.
<br></p><p>
<b>1.2 Research Contribution </b></p><p>This study contributes to the WD literature by offering an account of how democratic member
participation operates within the unique political and social environment of north-west China.
While there has been much theorizing about the potential and problems of WD, only a small amount
of empirical research looking at the phenomenon within cooperatives has been published. Only a
handful of studies look at aspects of WD in Chinese cooperatives. Democratic member control is
one of the most essential features of a cooperative enterprise and it differentiates them from other
types of business entity (ICA, 1995). However, scholars point out the lack of research published
on the inner workings of democracy within cooperatives (Harrison, 1994; Skurnik, 2002). Even
less has been published about how agricultural cooperatives in China approach democratic decision
making amongst their membership.
This study provides an insight into a fast growing cooperative sector, both in China, and across the
globe. It explores the significance of what it means to be a member of an agricultural cooperative
from the perspective of the cooperative members themselves. Considering the size, success and
long history of the Gung Ho Movement in China, it is surprising to see that very little has been
written about how this social movement operates within management, organizational behaviour,
and industrial relations literature (although there have been articles published on Gung Ho in
cooperative studies (Clegg & Cook; 2011) and development journals (Chen, 1999)).
<br></p>