The application of the co-operative concept in Malta

Abstract

Purpose: The objectives were to determine the co-operative concept and values as perceived by three major Maltese co-operative stakeholders, to assess the extent to which such concept and values have been applied, to date, through compliance with the co-operative principles, and to establish the major reasons for the relatively minor development of Maltese co-operatives. Design: Primary data for this research was collected through the use of semistructured interviews conducted with thirteen co-operative representatives, four co-operative institutional bodies representatives and five experts. Findings: The findings of this study indicated that many Maltese respondents were, as yet, deficient in their understanding of the co-operative concept made up of its elements, values and principles. In particular, a number of compliance barriers to the application of the seven principles seem to have persisted over the years. Nonetheless, minor improvements were indicated within the last decade with respect to the application of the concept. Furthermore, the minor recent development of co-operatives could be attributed to different reasons including their insufficient promotion, deficiencies in relevant education and training, regulatory framework restrictions, co-operative financing issues, as well as misconceptions about the particular adaptability of the co-operative structure to socially oriented entities. Conclusion: This research concludes that Maltese co-operatives and their major stakeholders lack a clear understanding of the co-operative concept. The significance of socially relevant elements which are meant to be entrenched within the concept need to be given more priority over the mere registration of surpluses. The study also concludes that the concept and values have, as yet, not been applied sufficiently through compliance with the co-operative principles. A final conclusion is that the reasons why co-operatives in Malta have developed less relatively well than LLCs and co-operatives in other European countries are serious and diverse. While such reasons have not become more accentuated over the years, as yet, they remain consistent barriers for the success of the Maltese co-operative movement. Value: It is hoped that this dissertation helps all co-operative stakeholders achieve a better understanding and appreciation of the co-operative concept, including its values and principles, in order to be able to apply better the cooperative concept to the benefit of the co-operative movement, particularly, although not solely, in Malta.