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Speech dcs u_wisc_jan_2012_draft_copy_dcastillo

  1. 1.   Solidarity economics and cooperatives in Colombia: observations of a model under construction  By: Dario Castillo Solidarity Studies Unit Coordinator - UNES Pontificia Universidad Javeriana - Colombia Madison, Wisconsin - january /24/ 2012 [email_address] Edited version for
  2. 2. Special thanks to: <ul><li>Brent Hueth (Uwiscc) </li></ul><ul><li>And the sources cited: </li></ul><ul><li>Ricardo Dávila (Dávila 2010) </li></ul><ul><li>Alveiro Monsalve (Monsalve 2009) </li></ul>
  3. 3. Content <ul><li>About us (UNES) </li></ul><ul><li>The solidarity sector, the solidarity economics and cooperatives </li></ul><ul><ul><li>Concepts </li></ul></ul><ul><li>The Cooperatives in Colombia </li></ul><ul><ul><li>Structure </li></ul></ul><ul><ul><li>Size </li></ul></ul><ul><ul><li>Distributions of benefits </li></ul></ul><ul><ul><li>4. Moment, Observations and conclusions </li></ul></ul>
  4. 4. 1. About us
  5. 5. Some information about Colombia <ul><li>Colombia, officially the Republic of Colombia ( Spanish : República de Colombia , pronounced is a constitutional republic in northwestern South America . Colombia is bordered to the east by Venezuela and Brazil , to the south by Ecuador and Peru ; [10] to the north by the Caribbean Sea ; to the northwest by Panama ; and to the west by the Pacific Ocean . Colombia also shares maritime borders with Venezuela , Jamaica , Haiti , the Dominican Republic , Honduras , Nicaragua and Costa Rica . With a population of over 46 million people, Colombia has the 29th largest population in the world and the second largest in South America, after Brazil. Colombia has the third largest population of any Spanish-speaking country in the world, after Mexico and Spain . </li></ul>
  6. 6. 1. About us <ul><li>The solidarity studies unit (UNES) is a unit of teachers and researchers in charge of developing multidisciplinary tasks: researching, teaching, consulting and Extension related to the Solidarity and Social Sector Economy in Colombia. We are in </li></ul><ul><li>Throughout our 33 years of work, the UNES has established itself as an innovative experience around enterprise partnership and solidarity, and Co-operation, solidarity and development. </li></ul><ul><li>UNES is part of two national networks (CIRIEC Colombia and UNICOSOL network) and 2 international networks (rulescoop, Unircoop) institutions which promote solidarity by associative enterprises. </li></ul><ul><ul><li>I´m economist. Also I studied a master in rural development. Nowadays I lead this group and I came here to know more about the work of UWISCC and the cooperatives from USA. </li></ul></ul><ul><li> </li></ul>
  7. 8. 2. The solidarity sector, the solidarity economics and cooperatives
  8. 9. Why discuss the existence of a Sector? <ul><li>Analysis according to Pablo Guerra (Uruguay): 1. From the sociology and economics 2. From Organizations Different names for the same concept? </li></ul><ul><li>- Solidarity Sector </li></ul><ul><li>Solidarity Economy Sector </li></ul><ul><li>Third Sector </li></ul><ul><li>Social Economy Sector </li></ul>
  9. 10. Third Sector (I) <ul><li>Some authors do not take as axis definition to the economy, but that classify a number of organizations with different management mode to private and public organizations; </li></ul><ul><li>The influence on the economy and society, established with such organizations, there is so different from the traditional relationship between state and market. </li></ul><ul><li>Several authors address the issue of Third Sector, however the term does not have an agreement in terms of its concept. </li></ul>Dávila, R. 2010
  10. 11. Third Sector (II) <ul><li>In Sarachu (2004), the Third Sector is the result of changing relations between state and civil society. </li></ul><ul><li>Guerra (2004) refers to the socio economic solidarity of the Third Sector as a third logic to economics, beyond the commercial and state, in its own right in various stages of production and the rationale used NPO (non profit organizations) </li></ul><ul><li>The Center for Civil Society Studies of Johns Hopkins University, known as NPO, to all organizations that meet the following characteristics: - Organized formally - Private - Non-Profit - Self-governing - With voluntary participation </li></ul>Dávila, R. 2010
  11. 12. The Third Sector Industry Government / Public Sector Private Sector Defining the Third Sector (USA – JHU/ Europe/ CIRIEC): According to different meanings, to refer to the Third Sector we can find different names such as &quot;nonprofit&quot; (NPO), &quot;Nongovernmental Organizations&quot; (NGOs), &quot;Voluntary Associations&quot;, &quot;Solidarity Organizations,&quot; &quot;humanitarian organizations&quot;. ..all refer to the third sector, nonprofit sector and in some coutries, solidarity sector. ¿Solidarity Econmics Sector? Dávila, R. 2010
  12. 13. Solidarity Economic Sector <ul><li>In Latin America, many years ago, some authors started to use the concept about “Solidarity Economics”. This sector is in the middle of “the private sector” and “third sector”. </li></ul>Dávila, R. 2010 The Third Sector Industry Government / Public Sector Private Sector
  13. 14. <ul><li>So, no all the organizations in the third sector are parts of Solidarity Economics Sector, because in the point of view in Latin America, and also in Spain, there are some companies, in the market, with sales and costs, but without profit behavior. These are the Solidarity Economics: companies with economics goals, but with social goals too and their motivations to success in markets are not the profit, are the reach of happiness of their members/ owners. </li></ul>
  14. 15. In other words <ul><li>Although most of the cooperatives and other social and solidarity enterprises operate in a capitalist market, they do not operate, at least in theory, motivated by capitalism, where the rational defined by neoclassical economics is the prevailing logic, and where in practice, it is expected the highest economic return per unit invested in a market transaction, which is a rule for the &quot;rational&quot; individual (insatiable, who prefers more to less and who thinks that to stop earning means lose). </li></ul>
  15. 16. Social Economy? <ul><li>- According to Chavez and Monzon (2000), historically the term social economy is the oldest with respect to the other terms, but the delimitation and definition of this field of economics, is exempt from consensus among the scientific community. </li></ul><ul><li>- Dunoyer (1830) proposes in his &quot;New Deal for Social Economics&quot; another way of reacting to economic policy from the eighteenth century to the spread and effects of capitalism. </li></ul>Dávila, R. 2010
  16. 17. Solidarity Economy <ul><li> Razeto (1989 - Chile), is one of the authors who talks about the subject of Economics Solidarity with arguments that seek a construction and science from a recognition of Solidarity as part of the practice and theory in economics. </li></ul>Dávila, R. 2010
  17. 18. Solidarity Economy IS COOPERATION <ul><li>Cooperative Cooperation - Joint action. - To benefit each other - And to benefit others. </li></ul>Monsalve, A. 2009
  18. 19. Solidarity economy sector <ul><li>The solidarity economy sector includes all non-profit companies that provide goods and / or services under associative forms designed to meet the needs of its members and the community. </li></ul>
  19. 20. <ul><li>Elementos of cooperation: </li></ul><ul><li>Human being </li></ul><ul><li>The group </li></ul><ul><li>The organization </li></ul><ul><li>The work </li></ul><ul><li>The objective </li></ul>Solidarity Economy IS COOPERATION Monsalve, A. 2009
  20. 21. <ul><li>Human being </li></ul><ul><li>Is the center of cooperation, its reason for being. </li></ul>Solidarity Economy IS COOPERATION Monsalve, A. 2009
  21. 22. <ul><li>The Group </li></ul><ul><li>It's a powerful effort that have come together to help. </li></ul>Solidarity Economy IS COOPERATION Monsalve, A. 2009
  22. 23. <ul><li>The organization </li></ul><ul><li>Give efficiency and order to achieve the purpose for which they have joined. </li></ul>Solidarity Economy IS COOPERATION Monsalve, A. 2009
  23. 24. <ul><li>The Work </li></ul><ul><li>Is the contribution of all who are helping each other. </li></ul>Solidarity Economy IS COOPERATION Monsalve, A. 2009
  24. 25. <ul><li>The goal </li></ul><ul><li>It is the common purpose, is what we all want, for that you have joined.  </li></ul>Solidarity Economy IS COOPERATION Monsalve, A. 2009
  25. 26. <ul><li>Summary: </li></ul><ul><li>The successful integration of all the above elements, is the foundation of the power of cooperation. </li></ul>Solidarity Economy IS COOPERATION Monsalve, A. 2009
  26. 27. In the solidarity economy there are different kinds of cooperation <ul><li>Simple and complex cooperation </li></ul><ul><li>Open and closed cooperation. </li></ul><ul><li>Vertical and horizontal cooperation. </li></ul>Monsalve, A. 2009
  27. 28. In the solidarity economy there are different kinds of cooperation <ul><li>Cooperation simple and complex: Simple, when people do the same/ Complex, as do different things. </li></ul><ul><li>Open and closed cooperation: Open: The agreements are open independently/ In the closed, there is cooperation and objectives in the same group </li></ul>  <ul><li>Vertical and horizontal cooperation: Vertical: It is between different hierarchical levels. </li></ul><ul><li>Horizontal: It occurs in one level. </li></ul>Monsalve, A. 2009
  28. 29. <ul><li>It is a system socioeconomic, cultural and environmental Comprised of a set of social forces Organized forms of association, How we define the solidarity economy in Colombia, practices identified by Self-management, solidarity, democratic and humanist Nonprofit, for the integral development of human being, as a subject, actor and goal of the economy.                                              (Law 454/98) </li></ul>How we define the solidarity economy in Colombia by Law? Monsalve, A. 2009
  29. 30. The law 454/98 defines various solidarity organizations Monsalve, A. 2009 Cooperatives Pre cooperatives pre-cooperatives and the funds of employees / ( like cooperatives for employees from specific companies) Mutual associations
  30. 31. The law 454/98 defines various solidarity organizations Monsalve, A. 2009 community enterprises Workers Cooperatives auxiliary institutions of solidarity economy agencies second and third degree that group cooperatives (umbrella organizations)
  31. 32. The law 454/98 defines various solidarity organizations Monsalve, A. 2009 … service companies in the forms of government cooperatives (like blended cooperatives/ half public/ half privates) …” all those forms of solidarity associations that meet the characteristics mentioned in this presentation”
  32. 33. What is the fundamental goal of the Solidarity Economy? Is to promote sustainable development among those who have come together to help each other, improving, above all, their own quality of life. Its action is against social inequality and economically. Monsalve, A. 2009
  33. 34. <ul><li>Legal persons </li></ul><ul><li>Nonprofit. </li></ul><ul><li>Workers and users are contributors and managers. </li></ul>What are the characteristics of organizations of solidarity economy? Monsalve, A. 2009
  34. 35. What are the characteristics of organizations of solidarity economy? <ul><li>Meet needs of its members. </li></ul><ul><li>Help other people in the community. </li></ul><ul><li>They are based on principles of solidarity and mutual aid. </li></ul>Monsalve, A. 2009
  35. 36. <ul><li>These are companies in integrating resources. </li></ul><ul><li>These partnerships, in that up to people. </li></ul><ul><li>The social and economic balance and complement each other. </li></ul>What are the characteristics of organizations of solidarity economy? Monsalve, A. 2009
  36. 37. What are the characteristics of organizations of solidarity economy? <ul><li>Establishing a link partnership. </li></ul><ul><li>Guarantee equal rights and duties. </li></ul><ul><li>Integrate with other nonprofit organizations. </li></ul>Monsalve, A. 2009
  37. 38. 3. The Cooperatives in Colombia
  38. 39. <ul><li>“ It is an autonomous association of people who have joined voluntarily, to meet their needs and build their aspirations economic, social and cultural common through a company jointly owned and democratically controlled”. Law 79/ 88/ Colombia </li></ul>A Cooperative is… Monsalve, A. 2009
  39. 40. Cooperatives are not ... <ul><li>They are not charities. </li></ul><ul><li>There are not commercial establishments to sell cheaper. (…but they can do it!) </li></ul><ul><li>There are not poor companies. </li></ul><ul><li>They are not welfare agencies. </li></ul>Monsalve, A. 2009
  40. 41. <ul><li>“ On the contrary, We have our own identity and we differentiate ourselves.” Member of cooperative in Colombia </li></ul><ul><li>The cooperative is a form of economic and social organization </li></ul><ul><ul><li>BUSINESS for economic development ... </li></ul></ul><ul><ul><li>PARTNERSHIPS for human development. </li></ul></ul>Yes! The cooperatives are… Monsalve, A. 2009
  41. 42. Characteristics of cooperatives according to law 79 of 1988 <ul><li>· The number of partners is variable and unbounded. · To work in accordance with the principle of democratic participation. · To make a permanent cooperative education activities. · What is economically and socially integrate the cooperative sector. · To ensure equal rights and obligations of the partners without consideration of their contributions. · That heritage is variable and unlimited, however, the statutes set a minimum amount of social contributions not be reduced during the life of the cooperative. · To set the no redistributions of social reserve in case of liquidation, the remnant. · That an indefinite duration in the statute. · That promotes integration with other organizations that have, at last promote the integral development of man. · That the income of both partners as his retirement is voluntary. </li></ul>Monsalve, A. 2009
  42. 43. Structure Dávila, R. 2010
  44. 45. 100% of Benefits To Fund for education To Fund solidarity To Reserve protection contributions To help to Education Formal. (G) To make decisions of the Assembly. To Fund for education To Fund for solidarity Monsalve, A. 2009 Distribution of Benefits 20% 20% 20% 10%
  45. 46. 4. Moment, Observations and conclusions
  46. 47. The Moment <ul><li>Problems with Worker cooperatives (CTA) </li></ul><ul><ul><li>Trade Agreements (FTA with USA) </li></ul></ul><ul><li>Coop Health Reputations </li></ul><ul><li>Leaders with poor cooperative spirit </li></ul><ul><li>Poor regulation of the Goverment </li></ul>
  47. 48. Conclutions <ul><li>The model under constructions </li></ul><ul><li>The conceptual discussions </li></ul><ul><li>The inter cooperation behavior </li></ul><ul><li>The educational issue </li></ul><ul><li>The Net Work Cooperative </li></ul><ul><li>The USA Coops and The Colombia Coops </li></ul>
  48. 49. Thanks !