The authors have been investigating universities in their own countries for many years and are now turning their attention to exploring alternatives to current reforms. As part of these investigations, they spent two days of interviews and meetings at Mondragon, a town in Gipuzkoa in the Spanish Basque Country. Mondragon is at the centre of one of the largest groups of co-operatives in the world and in 1997 set up what is probably the only co-operative university in existence. This highly successful university has a solidary economy, effective methods of knowledge generation and transfer, and is expanding. Over two days, the authors were given a tour of the headquarters of the umbrella organisation for the co-operatives, called MONDRAGON, and met the former personnel director of one of the major co-operative companies to introduce them to the history and concepts of the movement. The rector and vice rector of Mondragon University made a whole morning available to present information and answer their questions with great generosity and openness. They then met a dean of one of the faculties, two lecturers from another faculty, and a lecturer from the third faculty who was also a member of the Social Council. In this report, the authors start with a brief analysis of labour and capital in universities and then give an overview of the co-operatives, and of the co-operative university. (Contains 2 notes.)