Carpetbaggers and credit unions : a sociological study into the paradox of mutuality in the late twentieth century

Dayson, KT

Abstract

This thesis explores the apparent paradox of mutuality in Britain at the turn of the
millennium. It contrasts the relative decline of building societies via demutualisation,
against the continual governmental support for and growth of credit unions. It begins
by constructing a cultural conceptualisation of mutuality, which comprises of four
interrelated elements: trust, reciprocity/habit, longevity, and caution. These are
formalised in an organisational model of cooperation, which seeks to explain how
mutuals function in reality. Both these models are employed to assess the validity of
competing explanations of contemporary mutuality. First, a functionalist interpretation,
which assumes that demutualisation is an inevitable result of growth, is examined.
Second, a neo-Marxist analysis, which believes resource appropriation by building
society management, was the motivation for change. However, neither theory was
substantiated by the evidence because they could not fully explain why demutualisation
did not occur earlier or why new mutuals, namely credit unions, were being established.
Consequently a third interpretation synthesising the Neo-Marxist thesis with a cultural
post-modern glocal turn was developed. Accordingly, demutualisation occurred
because building societies became disembedded from society. First, the culmination of
paternalism produced a transformation in the trust relationship between members and
management. Second, in the political and economic spheres, Thatcherism and
globalisation marginalised any alternative perspectives to the neo-liberal narrative,
through the commodification of the personal; discrediting and abasement of the mutual;
and the imposition of a crypto-Utopian discourse. Alongside this assault on mutuality a
counter-culture of opposition to globalisation, glocalism, created spaces for new
mutuals, such as credit unions. Many of these entities deliberately prioritised social over
economic objectives and based their attachment on a small locality. By examining
mutuals holistically it is hoped that this thesis contributes to a sociological
understanding of how cooperative organisations are affected by the state and
hypercapitalism.

Citation

Dayson, K. Carpetbaggers and credit unions : a sociological study into the paradox of mutuality in the late twentieth century. (Thesis). University of Salford

• Thesis Type: Thesis
• Deposit Date: Sep 22, 2011
• Publicly Available Date: Sep 22, 2011
• Award Date: Jan 1, 2002