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Can Co-operative Structures Solve Public Policy Problems?
Parkland Institute:Co-op - Friendly Think Tank
David ThompsonAurora Institute
Vancouver, Canadawww.aurora.ca
Can co-operative structures solve public policy problems?2
Parkland Institute
• Alberta research network
• In Faculty of Arts, University of Alberta
• Non-partisan
• Progressive think-tank – bridge academy and public/media
• CCPA, Fraser Institute
• Academic standards – peer review
Can co-operative structures solve public policy problems?3
Parkland - Outputs
• Research reports, books, occasional papers• Conferences
– “Power for the People: Determining our Energy Future”
– Nov 17-19, 2006, University of Alberta– Keynote: John Ralston Saul– Go!
• Media – op-eds, articles, interviews, etc.• Policy options to solve problems
Can co-operative structures solve public policy problems?4
Parkland – Research Areas
Public Policy Issues:• Energy
• Environmental problems
• Health care
• Poverty and social justice
• Democracy and government
• Fiscal, economic issues
Can co-operative structures solve public policy problems?5
Traditional Public Policy Solutions
• Regulation– Statutes, regulations, codes– Essential, but not enough
• Fiscal– Spending and taxation powers– Essential, but not enough, not done here
• Voluntary approaches– Ineffective, inefficient, costly – OECD (2003)
Can co-operative structures solve public policy problems?6
Traditional solutions not effective
• Why?– Create incentives for good outcomes– Accept structures that produce bad outcomes
• For-profit business corporation– Profit good motivator to increase production– Profit good motivator to reduce costs– Increasing production or reducing costs not
always a positive thing• Example: environmental harm from production and
externalization of costs
Can co-operative structures solve public policy problems?7
Policy issue: Energy Security
• Raises questions of:– resource conservation– environmental protection– resource rents for owners (“royalties”)
• Parkland recommendations included structural changes: – Democratic management– Public interest mandate, not just profits– Didn’t address cooperatives specifically
Can co-operative structures solve public policy problems?9
Policy Issue: Corporatization and Privatization
• Sell City drainage function to EPCOR?
• Huge asset – many billions of dollars
• EPCOR corporatized utility owner/operator– Power and water utilities here, Canada, US– No public control or accountability– Transparency very restricted
• Thus significant public debate on drainage
• City council vote
Can co-operative structures solve public policy problems?11
Corporatization and Privatization
Parkland Report and presentation to City Council:• Reject proposal to sell off drainage
– Successful, despite millions spent by other side
• Reform EPCOR– Convert to utility cooperative– Utility cooperatives common throughout the world– Accountable to people served– Serve broader range of goals than just profit
maximization – e.g. environment
Can co-operative structures solve public policy problems?12
Policy issue: Energy and democracy
• Parkland conference: “Power for the People” (Nov. 17-19)
• Panel: Can we transition to a post-carbon economy?
• Major challenge: Energy corporations– extremely profitable, politically powerful– aggressive at protecting their interests
• Can we ever succeed with this structure in the industry?
Transforming the Fossil Fuel Industry:Private sector ownership,Public interest mandate
Power for the People Conference Parkland Institute
University of AlbertaNovember 17-19, 2006
Can co-operative structures solve public policy problems?14
Ownership vs. Interest Served
Public ownership Private ownership
Public interest
Private interest
Business corporations
Charities
Churches
Social enterprise
Crown corporations
Can co-operative structures solve public policy problems?15
Issues in transforming the industry
• Legal capacity
• Financial capacity
• Trade challenges
• Corporate culture
• Political will
• Others…
Can co-operative structures solve public policy problems?16
How is this emerging structural policy approach different?
• Old approach: alter rules (regulatory or fiscal)– Corporate programming conflicts with rules– Industry not cooperate / oppose– Limited success
• New approach: alter industry– Industry programming mirrors rules– Industry comply, cooperate– Far-reaching outcomes
Can co-operative structures solve public policy problems?17
Why do we need a new policy approach?
• Why not just continue with the traditional policy instruments?
• Because outcomes not good enough in those policy areas
• Einstein:“Insanity is doing the same thing
over and over,
and expecting a different result”