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David Thompson Aurora Institute Vancouver, Canada aurora

Can Co-operative Structures Solve Public Policy Problems? Parkland Institute: Co-op - Friendly Think Tank. David Thompson Aurora Institute Vancouver, Canada www.aurora.ca. Parkland Institute. Alberta research network In Faculty of Arts, University of Alberta Non-partisan

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David Thompson Aurora Institute Vancouver, Canada aurora

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  1. Can Co-operative Structures Solve Public Policy Problems?Parkland Institute:Co-op - Friendly Think Tank David Thompson Aurora Institute Vancouver, Canada www.aurora.ca

  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?

  8. 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?

  10. Corporatization and Privatization 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? Can co-operative structures solve public policy problems?

  13. Transforming the Fossil Fuel Industry:Private sector ownership,Public interest mandate Power for the People Conference Parkland Institute University of Alberta November 17-19, 2006

  14. Ownership vs. Interest Served Public interest Charities Churches Social enterprise Crown corporations Public ownership Private ownership Business corporations Private interest 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: alterindustry • 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” Can co-operative structures solve public policy problems?

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