MAKING DEMOCRACY ECONOMIC COOPERATION WITH

MAKING DEMOCRACY ECONOMIC COOPERATION WITH


• Praise hadiratIllahi we pray toward the rabbi who gave health,
strength, and the opportunity for us all to attend and participate in
National Discussion of ICMI in 2007. This meeting is important for ICMI,
perhaps even for the Indonesian nation as a whole. One of the problems
large nation facing Indonesia today, is the economic stagnation
society as a result of input control by a group of people.
Unilateral mastery of the national asset, resulting in improved macroeconomic performance
economy has not been fully able to touch people in kesejahateraan
family household.
• Therefore, should ICMI called to give answers
concrete for the problems facing the nation and country. Strengthening the role of folk
in economic development will encourage the growth of structure and fundamental
economy strong and independent. So in turn, economic democratization
able to walk in balance with the growth of democratization in the social and
political.


Democracy Issues in Economic Development
• Political Indonesia adopts democracy, namely the sovereignty is in the hands of the people, as well as its economy, Indonesia is a country democratic ideology adherents. Apparently the founders of our Republic would like to state that political democracy alone is not sufficient because it must be accompanied by economic democracy. With economic democracy do not want to be guaranteed that the state will turn the direction toward the realization of social justice for all Indonesian people. Economic democracy in Indonesia's economic system is expressly formulated in the articles of the 1945 Constitution, especially Article 33.
• Reform current continues to run has not looked fully followed in
economic field. The approach is still trickle down effect is felt to be groove

economic development policy up till now. Access and huge resources are still addressed to a handful of big business. Medium small, medium, and cooperatives-where most economic activity beradamasih people continue to struggle with old problems. The implications of not touching the people's economic activities adequately, visible from the public income gap between regions, between sectors, and among regions
• Improving people's welfare and well-deserved to be valid for
barlangsung barometer of whether the democratic process in the economic field. Even
recipient of a Nobel-class economist Amartya Sen (2000) has clearly described the
Key word democracy as the main corridor in understanding the problem of poverty.
Thinking Amartya Sen also has inspired a lot of thought about how
poor understanding of democracy is more often bear injustice than
justice. The presence of an injustice as a continuation of the ineffectiveness of democracy
becomes difficult to be refuted, and cultivate various forms of poverty. Poverty
economically difficult to argue too closely linked to advanced process pullback
democracy in the true meaning. The lack of voice of the poor in
aspirations, could result in many programs targeted diluted
economic development program.
• Experience and much of the literature shows how democracy is contested
with stability and economic progress in the early years after World War
second. What a lot of thought in developing countries leads to the need for
government's "strong" (read: no need to democratic), to ensure stability and
bring progress. Economic growth without democracy will not run
sustainable manner. This is evidenced by the experience of communist countries, and
journey of our own nation. Also, economic growth in the system that are not
heed the people's political participation, tend to produce inequalities, namely
gap between the have the opportunity and did not get a chance
in a closed system.

Cooperatives as a Social System
• Cooperatives as a social system is based on the growing movement
common interest. This implies that the dynamics of the cooperative must

aligned with those objectives together. Collegial spirit necessary
maintained through the application of deliberation in decision-making. Cooperative
is a non-governmental organizations (self-helf organization) but unlike
Other non-governmental organizations, cooperatives have different characteristics
(Hanel, 1985.36).
• Cooperation by the teachings of the institutional economics of John Commons
priority to the membership that is not based on capital strength, but based
however small business participation. Cooperatives are associations of people or
legal entity not a bevy of capital. Cooperatives will only be successful if
management is open / transparent and truly participatory. Role of members
is an important indicator in the universally recognized cooperative, with no
limited by the vision of political and socio-economic conditions in which groups of people
cooperative living. Both roles are a criterion of identity for cooperatives.
The role or dual identity (dual identity) indicates that the cooperative
working together (cooperation) is a human being or its members. Both at the time
manage and present uses the results of cooperative efforts. Unique Role of
member is used as a reference in recognizing cooperative systems in various
countries. Roy (1981.6) in definsinya include the role of members in business
cooperative as :"... a business voluntarily organized, operating at cost, the which is owned,
capitalized and controleed by member-patrons as users, sharing risks and benefits
Their proportional to participation. "Similarly, Packel opinion, as
cited Abrahamsen (1976.5), which states the cooperative are: "... a democratic
association of persons organized to furnish themselves an economic service under a
That eliminates plant entrepreneur profit and That Provides for substantial equality
in ownership and control ". It is also implicitly declared by Munkner
(1985), Ropke (1989) and Chukwu (1990).
• Although the current members of the cooperative role in crisis, this
proposed by Herman (1995.66), after reviewing the articles, "Trends in Co-
operative Theory "(Wilson)," Homo Homo Oeconomicus and Cooperatives in
Cooperative Research "(Weisel)," Basic Values Cooperatives "(Laurikari), as well as
"Cooperative Today" (Book), the changing role of key members is anticipated by
tersisihnya by economic democracy. But until now I believe, that
cooperatives will, can, and should thrive in an atmosphere of independence

democratic. That is, developing or not depends on how strong cooperative internal fundamentalist support the achievement goals cooperatives. In fact so far, both successful and cooperative cooperatives that have failed, caused more by internal fragility of the organization. Even if there is an external strategic environment cooperative contribution to the failure of cooperatives, it is often caused by "double-edged knife" public policy in effect.
• History records, initially co-operative ideology was born along with the emergence
resistance movements against economic hegemony. And to deal with
sources of economic exploitation and marginalization of the role of people's economy.
Movement is run by forming a collective economic institutions
people to help themselves (self help). The phenomenon was seen both in Europe
west, where the cooperative was born during the industrial revolution with the market economic system
capitalists who have been marginalized groups of workers, small farmers and
Other people who do not have the capital to structural poverty and
stupidity. In 1884, in an industrial town of Rochdale, Manchester, England
has established a cooperative "Rochdale" by the workers to fight for
social interests of their economies better. Similarly in Indonesia,
Hulp en birth Spark Bank, which was pioneered by RA. Wirjaatmadja in Purwokerto.
• Entering the Post-Independence era and the Old Order, the economic character
populist-socialist then called with Indonesia-a philosophy and
the basic ideology of economic struggle waged by the founding fathers country
this. Cooperatives have an honorable place with the inclusion and
explanation in chapter 33 UUD 1945, the cooperative became the only institution
economic principles that are appropriate for the country's economy. Cooperatives are encouraged as
"Cornerstone of the economy" Indonesia, where the economy is expected to grow from
bottom with its own power. Unfortunately, socio-political conditions are not conducive to
healthy economic growth, and development of cooperatives was not running
• In the New Order era, the economy is interpreted to spur growth
economy through industrialization various sectors based on economic models
development, based on the familiar neo-classical economics and the theory of phase
Rostow development. Cooperative development is placed as a chain
people's economy. The impact of this policy, cooperatives would have felt
shift values and essence. Cooperatives are strongly encouraged by the political policies, but

without adequate socialization so that the pendulum is more structural than cultural sticking.
• Entering the Post-New Order era, the role of cooperatives is very clear, especially in times of crisis
economic progress. The discourse of democratic economy returned to the show to the surface,
but have to deal with the fact that cooperatives are at the point imaging
nadir. Stigmatization occurs, the cooperative is only a political jargon, the rhetoric
development program, which is far from the truth. Policy to generate
the role of cooperatives is often interpreted as character assistance funding
"Charity" Because of this dependence and are not encouraged to become an institution
independent. Number of aid that is channeled into cooperative or through
formation of economic groups, it forced a false understanding of society
against the cooperative. We have failed to encourage the growth of a true cooperative, the existence
independent cooperatives in accordance with cooperative principles and identity is
minority of the many pseudo-cooperatives, cooperative board name, and cooperative plate
red or cooperatives formed by the project alone.
• Placing a true cooperative in that position as a social system,
seyognyanya began with serious attention to pemyelenggaraan
human resource education cooperatives. Rugged and educational institutions
tough going necessitates cooperative performance is realistic in the future. For
it serious attention and support to the growth of cooperative educational institutions
quality should be our common concern and a national agenda.


Building Economic Democracy through Cooperation
• On Article 33 clearly stated the main points of the Indonesian people thought about
economic democracy. Here is reflected the essence of democracy, namely the people, for the people,
and by the people. Principal element in the economy based on democracy for
Indonesia is the principle of family-oriented nation. This principle is not in line with the understanding
individualism, nor with the understanding that is taught by Marxist collectivism.
In realizing economic democracy, must be calculated and used
institutional-institutional or economic institutions and politics, and must be as strong as
may steer in the desired direction. Thus, it can be avoided
the institutional barriers, which causes malfunction

(Disfunctioning) existing institutions, which in conditions of relatively equal or comparable to the institutions in place or in other countries turned out to function properly.
• It's in the world economy inevitable trend toward free markets, namely the trading system without any barriers, whether the obstacles created by the state or by a group of countries. However, every state has sovereignty, including economic sovereignty. Economic sovereignty can not be released to the market mechanism simply because this country was built by serangkuman ideals and idealism. On the other hand, has long been known that the market mechanism was not able to produce a just welfare. The free market will tend to strengthen an already strong position, thus leading to the participation and market domination by a limited number of people. Market failures that led to the need to make corrections to the interventions of government through a variety of public policy, which is actually in the original theory is not desired.
• Cooperative and SMEs as an instrument of economic growth of society in the era
globalization remains an important and relevant role in the development context
present. Even in developed countries though, the role of cooperatives still
taken into account. At the global level, the cooperative is known as - to cite the concept of
Anthony Giddens economy - the third way of the ideology of economic development. In
several areas of Asia like Japan and Taiwan, people's economy
developing healthy and closely linked to the national economic system.
Institutionally, the economy is represented by people who UMKMK
grown with the power of knowledge and technology-based (technolgy
and knowledge-based economy TKBE) so competitive kukuh.1 UMKMK like that is what needs to be cultivated in every region throughout Indonesia simultaneously.
• America is a very capitalist even in running the economy turns
apply the concepts and principles of cooperatives as an economic organization
driven on self-reliance in business with the participation anggota.Keswadayaan

members coupled with professionalism based manajamen be a good keyword cooperatives, thus able to expand inter-state markets and is acknowledged to be the world's economic giants.
• The nation must learn from experience and past history. Economic
democratic character, where one of the prominent symbols are cooperative,
proved to have been able to become a safety valve, if not we say as
savior, at the time of our nation's economic crisis ten years ago. In
while our modern industrial economy collapsed due to exposure to hurricanes, it turns out
cooperatives are able to provide economic and social services to its members
so that they remain capable of running wheels of the economy, both the production activity
and consumption, with relatively good. The contribution of primary sector to grow, even
into the machine triggers the growth of secondary sector. But again we must
deplores our attention towards this sector was still ambivalent, and tend to
inconsistency, the approach trickle down effect which proved unsuccessful in the past,
is realized or not is still the foundation of our economic policy.
Development of economic sectors based in the community (members) has been proven
become a powerful tool to combat poverty and growth
unemployment at the grass root level. The essence of this populist economic development
triggered by the reality that most economic actors in Indonesia moves on
small-scale enterprises.


Recommendation
• The development of cooperatives should be an integral part of a package of economic and democratic development in our nation's great effort to overcome poverty. Cooperatives as a business entity that develops the potential of society is the concrete form of the system of social economy. If the first government can create a banking system, non-export, investment incentives and protection policies in major industrial sectors, the same spirit it should also be done to reconstruct the development of cooperatives.
• To support the growth of cooperatives as a form of concrete economic democracy, then there are some things that must be done in the format of economic development, among others:

(1) Elimination of monopolistic practices and harmful oligopoly
community. Until recently the problem of monopoly and oligopoly are not yet
handled well, so that the business climate in general has not
support the development of a strong economy.
(2) Efforts to create a more balanced economic structure with a number of
powerful medium entrepreneurs are increasingly numerous.
(3) Empowerment of weaker economy, especially small-scale enterprises and
cooperatives. Included in this is an effort to improve
mutually beneficial partnership relations between different scales
business.
(4) The role of government should be geared towards building institutions
Printer cadre of human resources cooperation, rather than on business practices
cooperatives. Because the last thing that will create more
permanent dependency, while the first will ensure
sustainable development of cooperatives as a form of democracy
economy.




TUBAN, December 2, 2010