Friedrich Wilhelm Raiffeisen
Encyclopedia
Friedrich Wilhelm Raiffeisen (3 May 1818 – 11 March 1888) was a German mayor
and cooperative
pioneer. Several credit union
systems and cooperative banks have been named after Raiffeisen, who pioneered rural credit unions.
before he entered the military at the age of 17. His career in the military led him to Cologne
, Coblenz and Sayn
. An eye disease forced him to resign from the military service in 1843 and he went into public service. He was mayor
of several towns: from 1845 he was mayor of Weyerbusch
/Westerwald
; from 1848 he was mayor of Flammersfeld
/Westerwald; and finally he was mayor of Heddesdorf from 1852 until late 1865, when, at the age of 47, his worsening health cut his career short; he had caught typhus
in 1863 during an epidemic during which his wife had died. Since his small pension was not sufficient to meet the living of Raiffeisen’s family he initially started a small cigar factory and later on a wine business. In 1867, he married the widow Maria Panseroth. She outlived him by 12 years; their marriage remained childless. He died on 11 March 1888 in Neuwied-Heddesdorf, shortly before his 70th birthday.
self-help during his tenure as the young mayor of Flammersfeld. He was inspired by observing the suffering of the farmers who were often in the grip of loansharks. He founded the first cooperative lending bank, in effect the first rural credit union
in 1864.
Motivated by the misery of the poor part of the population he founded during the starvation winter of 1846/47 the “Verein für Selbstbeschaffung von Brod und Früchten” (Society for bread and grain supply). He had flour bought with the help of private donations. Bread was baked in a self-built bakery and distributed on credit to the poorest amongst the population. The bread society as well as the aid society founded in 1849 in Flammersfeld and the benevolent society created in 1854 in Heddesdorf were pre-cooperative societies based on the principle of benevolent assistance.
In order to secure the liquidity equalization between the small credit banks, in 1872 Raiffeisen created the first rural central bank at Neuwied, the “Rheinische Landwirtschaftliche Genossenschaftsbank” (Rhenish Agricultural Cooperative Bank). In 1881, Raiffeisen created a printing house in Neuwied which still exists today, carries his name and was merged in 1975 with the German cooperative publishing house “Deutscher Genossenschafts-Verlag”.
, self-governance
and self-responsibility. Originally in German
: Selbsthilfe, Selbstverwaltung and Selbstverantwortung. When put into practice the necessary independence from charity
, politics
and loansharks could be established.
s are named after Raiffeisen:
Mayor
In many countries, a Mayor is the highest ranking officer in the municipal government of a town or a large urban city....
and cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
pioneer. Several credit union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
systems and cooperative banks have been named after Raiffeisen, who pioneered rural credit unions.
Life
Friedrich Wilhelm Raiffeisen was born on 30 March 1818 at Hamm/Sieg (Westerwald). He was the seventh out of nine children. His father Gottfried Friedrich Raiffeisen was a farmer and also mayor of Hamm for a while. One can go back to his family’s origin until the 16th century in the Swabian-Franconian area. The family of his mother, Amalie Christiane Susanna Maria, born Lantzendörffer, came from the “Siegerland”. Leaving school at the age of 14 he received three years of education from a local pastorPastor
The word pastor usually refers to an ordained leader of a Christian congregation. When used as an ecclesiastical styling or title, this role may be abbreviated to "Pr." or often "Ps"....
before he entered the military at the age of 17. His career in the military led him to Cologne
Cologne
Cologne is Germany's fourth-largest city , and is the largest city both in the Germany Federal State of North Rhine-Westphalia and within the Rhine-Ruhr Metropolitan Area, one of the major European metropolitan areas with more than ten million inhabitants.Cologne is located on both sides of the...
, Coblenz and Sayn
Sayn
Sayn was a mediæval German County located in the Rhineland-Palatinate and North Rhine-Westphalia. There were two Counties of Sayn: the first County emerged in 1139. It became closely associated with the County of Sponheim early in its existence. Count Henry II was notable for being accused of...
. An eye disease forced him to resign from the military service in 1843 and he went into public service. He was mayor
Mayor
In many countries, a Mayor is the highest ranking officer in the municipal government of a town or a large urban city....
of several towns: from 1845 he was mayor of Weyerbusch
Weyerbusch
Weyerbusch is a municipality in the district of Altenkirchen, in Rhineland-Palatinate, in western Germany....
/Westerwald
Westerwald
The Westerwald is a low mountain range on the right bank of the River Rhine in the German federal states of Rhineland-Palatinate, Hesse and North Rhine-Westphalia. It is a part of the Rhine Massif...
; from 1848 he was mayor of Flammersfeld
Flammersfeld
Flammersfeld is a municipality in the district of Altenkirchen, in Rhineland-Palatinate, Germany. It is situated in the Westerwald, approx. 35 km north of Koblenz....
/Westerwald; and finally he was mayor of Heddesdorf from 1852 until late 1865, when, at the age of 47, his worsening health cut his career short; he had caught typhus
Typhus
Epidemic typhus is a form of typhus so named because the disease often causes epidemics following wars and natural disasters...
in 1863 during an epidemic during which his wife had died. Since his small pension was not sufficient to meet the living of Raiffeisen’s family he initially started a small cigar factory and later on a wine business. In 1867, he married the widow Maria Panseroth. She outlived him by 12 years; their marriage remained childless. He died on 11 March 1888 in Neuwied-Heddesdorf, shortly before his 70th birthday.
Works
Raiffeisen conceived of the idea of cooperativeCooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
self-help during his tenure as the young mayor of Flammersfeld. He was inspired by observing the suffering of the farmers who were often in the grip of loansharks. He founded the first cooperative lending bank, in effect the first rural credit union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
in 1864.
Motivated by the misery of the poor part of the population he founded during the starvation winter of 1846/47 the “Verein für Selbstbeschaffung von Brod und Früchten” (Society for bread and grain supply). He had flour bought with the help of private donations. Bread was baked in a self-built bakery and distributed on credit to the poorest amongst the population. The bread society as well as the aid society founded in 1849 in Flammersfeld and the benevolent society created in 1854 in Heddesdorf were pre-cooperative societies based on the principle of benevolent assistance.
In order to secure the liquidity equalization between the small credit banks, in 1872 Raiffeisen created the first rural central bank at Neuwied, the “Rheinische Landwirtschaftliche Genossenschaftsbank” (Rhenish Agricultural Cooperative Bank). In 1881, Raiffeisen created a printing house in Neuwied which still exists today, carries his name and was merged in 1975 with the German cooperative publishing house “Deutscher Genossenschafts-Verlag”.
Philosophy
Raiffeisen stated that there is a connection between poverty and dependency. In order to fight poverty one should fight dependency first. Based on this idea he came up with the three 'S' formula: self-helpSelf-help
Self-help, or self-improvement, is a self-guided improvement—economically, intellectually, or emotionally—often with a substantial psychological basis. There are many different self-help movements and each has its own focus, techniques, associated beliefs, proponents and in some cases, leaders...
, self-governance
Self-governance
Self-governance is an abstract concept that refers to several scales of organization.It may refer to personal conduct or family units but more commonly refers to larger scale activities, i.e., professions, industry bodies, religions and political units , up to and including autonomous regions and...
and self-responsibility. Originally in German
German language
German is a West Germanic language, related to and classified alongside English and Dutch. With an estimated 90 – 98 million native speakers, German is one of the world's major languages and is the most widely-spoken first language in the European Union....
: Selbsthilfe, Selbstverwaltung and Selbstverantwortung. When put into practice the necessary independence from charity
Charitable organization
A charitable organization is a type of non-profit organization . It differs from other types of NPOs in that it centers on philanthropic goals A charitable organization is a type of non-profit organization (NPO). It differs from other types of NPOs in that it centers on philanthropic goals A...
, politics
Politics
Politics is a process by which groups of people make collective decisions. The term is generally applied to the art or science of running governmental or state affairs, including behavior within civil governments, but also applies to institutions, fields, and special interest groups such as the...
and loansharks could be established.
Organizations named for Raiffeisen
Several credit unionCredit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
s are named after Raiffeisen:
- Raiffeisen Zentralbank, RZB, a cooperative bank based in Austria, and operating in Eastern Europe
- The Kosovo subsidiary of RZB sponsors the Raiffeisen SuperligaRaiffeisen SuperligaRaiffeisen Superliga e Futbollit të Kosovës is the top division of football in Kosovo. The division was set up in 1945 and its official name has changed a number of times. Raiffeisen Superliga is organized by the Football Federation of Kosovo and the division currently has a 12-team format. The...
, a soccer league in Kosovo.
- The Kosovo subsidiary of RZB sponsors the Raiffeisen Superliga
- Bundesverband der Deutschen Volksbanken und RaiffeisenbankenBundesverband der Deutschen Volksbanken und RaiffeisenbankenThe Bundesverband der Deutschen Volksbanken und Raiffeisenbanken is the association of co-operative banks in Germany...
, a federation of Raiffeisen cooperatives in Germany - Schweizer Verband der Raiffeisenbanken, the federation of Raiffeisen cooperative banks in Switzerland
- Raiffeisen RomaniaRaiffeisen RomaniaRaiffeisen Bank is a top universal bank on the Romanian market, providing a complete range of products and services to private individuals, SMEs and large corporations via multiple distribution channels: banking outlets , ATM and EPOS networks, phone-banking and mobile-banking .Raiffeisen Bank...
, the Romanian Raiffeisen Zentralbank branch - RabobankRabobankRabobank is a financial services provider with offices worldwide. Their main location is in the Netherlands. They are a global leader in Food and Agri financing and in sustainability-oriented banking...
, officially Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., cooperative banking system in the Netherlands - Banque RaiffeisenBanque RaiffeisenBanque Raiffeisen is a bank in Luxembourg....
, Luxembourg
See also
- Bond of associationBond of associationThe bond of association or common bond is the social connection among the members of credit unions and co-operative banks. Common bonds substitute for collateral in the early stages of financial system development...
- Hermann Schulze-Delitzsch
- History of credit unions
- MicrofinanceMicrofinanceMicrofinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services....
External links
- Deutscher Raiffeisenverband e.V.
- International Raiffeisen Union, dedicated to promoting the life, work and ideals of Herr Raiffeisen and his cooperative movement's ideals.