Category Archives: Entrepreneurship

How to keep from tripping over the same stone twice?

How to keep from tripping over the same stone twice?

René Mendoza Vidaurre[1]

If they keep quiet, the stones will cry out (Jesús, Lc 29.40)

“I already saw that movie”, said the drunk, on seeing the animation of the lion that roars at the beginning of many movies. In the beginning of the 1990s, dozens of women from Marcala (Honduras) began to be trained to defend their rights and cultivate an awareness of equality, to “marry to live together and not to be the property of anyone”, “leave the house to participate in workshops on learning”, and “overcome conformism”. Over the years they understood that that awareness and that fight against violence would require generating their own resources, “on earning some money you can decide what to buy for the house”, so they envisioned an organization that would help them to have land, produce on it, and sell their products. So in 1988 they founded the Coordinator of Women Peasants of La Paz (COMUCAP), and learned that “organization is for bettering oneself and not for being envious”, and that “it is beautiful that both the man and the woman work, you have what you need to eat and you can rest.”

As COMUCAP grew in number of members and economically they acquired investments for processing coffee, aloe and juices; they exported coffee and sold soap, shampoo and juice; they bought land and planted it;M and many projects came in. Nevertheless in 2012 they learned that their organization of 283 women members was about to fall off a cliff. What had happened? What had pushed them to the edge? How could they move away from that cliff? In this article we try to respond to these questions, precisely to “not trip over the same stone twice.” Behind the animation of the roaring lion there is a movie that has not yet been seen. Let´s look at it.

  1. Crisis Situation in COMUCAP

An independent audit revealed that the debt of COMUCAP was close to one million dollars, that the assets of the organization had a lien on them due to the debt, that a piece of property bought for $150,000 had not been turned over to the organization, and that it was not clear where resources from international aid had gone. This information raised the eyebrows of the members in the 2012 assembly. Other data followed: 100% of the coffee exported was organic and fair trade, in the last 3 cycles prior to 2012 they had exported close to 10,000 qq of export coffee; a good part of that coffee was bought off of individuals who were not members, close to 1,000 qq of coffee was from the coordinator of COMUCAP herself, whose quality surprisingly scored at 85, while the coffee of the members was equal to or less than 81; the yields (from 1 qq of cherry coffee to export coffee) were dropping; the premiums for organic and fair trade were confused with project financed by international aid, making it impossible for the members to see that they had not received neither premiums. The crisis was even more harsh because it coincided with the arrival of the coffee rust on the plants, that not only lowered their production yields, but in many cases anthracnose came behind the rust leaving the coffee fields with dead trees.

What had happened? From the beginning the board of directors had granted the coordinator a General Power of Attorney, with which she was able to take loans out of the bank, buy and sell the assets of the organization and sign international aid projects. They had technical and administrative staff subordinated to the coordinator, whose daughter was the commercialization manager for all the COMUCAP products, her sister was the manager of the aloe plant, and her son in law was the coffee manager. The board of directors was used only to sign checks. The reports to the annual assembly appeared to be “sharp” bathed in a sea of numbers, reports that were legitimated by the representatives of international aid as “transparent”. The audit and fair trade and organic certification inspections would confirm every year that “everything was in order.”

The coffee rust and the “human rust” had bashed the organization of the 256 members. Obviously all those losses and debts had to be assumed by the members. All this is like the animation of the roaring lion, because this type of movie is repeated in many parts of Latin America. Nevertheless, as the philosopher Heraclitus said, though we bathe in the same river, we never do it in the same water; the next section responds to the question about what things pushed COMUCAP to the edge of the precipice. Let´s sit down to watch this film.

  1. Process that pushed COMUCAP to the edge of the cliff

Problem: COMUCAP in 2012 was on the edge of the cliff. What pushed it therer? To help, let´s use the “5 whys” of the methodology of Lean: find the cause of the problem, then the cause of that cause, until we reach the root cause. This methodology was developed in the 1950s by Taiichi Ohno, Toyota pioneer (http://www.toyota-global.com/company/toyota_traditions/quality/mar_apr_2006.html). It is the methodology that is behind Aristotle´s idea in seeking the origin of movement: “everything that moves is moved by something” and there is a “motor” that moves everything. That is why we ask ourselves 5 times “why”. See the Table with the 5 “whys” for identifying the “tripping stone.”

Why was COMUCAP on the “brink of a cliff” –debts, poor administrative management and a hold on their assets? The members and aid organizations listened to information in the annual assemblies, but it was information that was not telling them what was really happening. The staff was subordinated to the family that coordinated COMUCAP and the board of directors relegated to being “only for show”, to sign checks; even a leader turned into an employee for two years signed checks as if she were the president. In other words, they would produce information in a disloyal way for the organization and in a way subordinated to the coordinating family.

Why did they not have access to the real information. A good part of the 256 women had been trained for 10, 15 and 20 years in negotiating their rights, managing funds for groups, political advocacy and values like transparency and equality. Why then did they not demand the real information? “Because we fell asleep”, said one of the historic leaders: they stood by. Ther trust in the coordinator was blind and total, because since 1993 she had trained them in women´s rights, and used to tell them that “she worked for the women”, she was from a family with resources and they nearly worshipped her: “having what she needs to live and she works for us” they would say with gratitude, feeling themselves blessed. One member could not be mistrustful when the reports would be presented before the international aid organizations, who would repeat “everything is in order”. One member could not prove that she did not receive the organic nor fair trade premiums for her coffee when the fair trade and organic certification audits would conclude “that everything was in order.” If everything was in order, it was logical to conclude that the information that they were being presented was correct, and it was obvious that if a member dissented, she was running the risk of not being a beneficiary of the next project. It was like feeling like an ant under a transnational elephant that grew and grew.

Why did they stand by? Because they left the decisions in the hands of the coordinator who had an administrative role, and was part of the staff of the organization, not elected by the assembly, as were the women on the board. The decisions that should have been made in the cooperative bodies (board of directors, committees and assembly) and supervised (oversight board or auditing body), were taken on by the coordinator. For the members the coordinator was “the gate” to the market and to international aid projects, and for the fair trade buyers and the aid agencies, the coordinator was the gate to the women leaders and the members. If a aid representative would visit a member, she would say marvelous things about the coordinator, and if a member visited Germany, the buyers would say wonderful things about the coordinator. So COMUCAP functioned as if it were a private enterprise where the 256 members were the poor beneficiaries, defined as such by the coordinator herself: “the women of the board are not capable of administering even 100 lempiras ($5).” This woman who did training on rights saw them as ignorant and those who financed projects and bought coffee saw her as the “Honduran Che Guevara.”

Why did they leave the decisions in the hands of the administration? Because the millennium institution of “we always need a patron” absorbed them. The women had been trained to defend their rights in their homes and to seek equality with their husbands. And this they were doing, supported by an office of COMUCAP itself. Nevertheless, they did not expect that “the patron” would appear in the “new guise”: who would subordinate the staff with loans and salaries, control the members on the basis of projects, and the leaders through travel allowances, and ran COMUCAP as something independent from the members. Like a large estate owner who believes that the land and everything on it is his, or like the holder of an encomienda in the colonial period that would receive land “including the indians that lived on it”, she would repeat to them: “without me COMUCAP would not exist, everything that is here is because of me” – meaning that everything was hers.

Why did the old “patron-client” institution absorb them? Because even though the women woke up about their rights and the importance of generating their income to sustain that awareness, COMUCAP was an external product with members dispersed in several municipalities, started on the basis of external resources and not on the basis of the contributions of the members; and because they did not learn to lead the organization through its organs (assembly, board, oversight board), and in accordance with its rules (statutes), because “we felt it was far away, someone else´s”. That is why they would hold an assembly once a year, as if an organization would have so few decisions that merited meeting only once a year; the board members were content to sign checks and travel every now and then; the groups never met with their boards; a member who needed something from COMUCAP would not propose it in the group meeting, nor to her group board, she thought it was not her right but a favor, which is why she would go directly to the “big honcho.” This lack of ownership and effectiviness in leading the organization left COMUCAP in conditions where the proverb “in an open treasure even the just sin” became a reality. COMUCAP had become a “factory” where a member would become a beneficiary, a leader subordinated, and a coordinator with a social vocation would become the big honcho (patron). Here is the root of the problem – “the motor” as Aristotle would say.

  1. The energy to get out of the crisis

The member assembly in 2012 heard the results of the audit. There was a mixture of everything: silence, murmurs, rage, impotence, feeling of having been betrayed…Some returned to their homes, and recalling the sacrifices that they had made for so many years, cried wanting to hear an echo in the universe. Others moved to defend the offices and the coffee and aloe business of COMUCAP, because the coordinator, her family and allies did not even want to turn over the assets with liens on them. They spent 3 years in hard legal battles, negotiating with the banks, getting the aid agencies and the buyers to see the obvious facts of what was happening, getting the members to trust again, looking for money to buy coffee, looking for markets for their coffee, their aloe, their shampo and juices.

On this path they continued to wear themselves down and had financial losses. The interest and arrears for the debt grew year by year, even though negotiating they were able to get considerable relief. They lost the best coffee areas to the labor lawsuit from the ex-employees, and had expenses on lost trials. They had international coffee buyers who decided NOT to buy their coffee under the logic that “COMUCAP without the “big honcho” did not exist, and because, as one leader said, “a dozen stars will fall from the sky before they ¡recognize that they were mistaken.” And a star did fall! The representative of an aid agency recognized: “I believed in her (the coordinator); forgive me because I did not believe in what you were telling me.”

What really caused the beginning of the change in COMUCAP? Each year an audit would be done, fair trade and the organic certifiers also did audits. There were more than 17 bank accounts because the aid agencies wanted their money to be administered separately. The results indicated that none of that ensured good administration. It is very possible that without the support of two people who worked in 2 aid agencies, who detected the problem, recommended an independent audit, and accompanied the board for some time, and without the awakening of the new board, COMUCAP would now have fallen off the cliff or been completely privatized by the coordinator and her family.

Crisis happens when what should die, does not, and what should be born, does not. After 5 years COMUCAP has been able to grab ahold of some “rock” and not fall off the cliff, in contrast to the prophesy of those who opposed it. Nor has it moved away from that “cliff”, the risk that it might trip over the same “stone”, described in section 2, and fall even harder off the cliff is real. In other words, that which should die still has not died. How can it move away from the cliff, or build a bridge to cross it? For what needs to be born to happen, we suggest three steps (see attached Figure) under the sequential order that follows: awareness and vision of the members as a reference point, looking inward where their roots are, and looking outward to be accompanied.

First step, start from the awareness and vision of the women members. Awareness: “everything that exist is there because we sweated with our fellow members with the sacks of fertilizer planting coffee, aloe, cooking, leaving the family on their own.”; as Jesus would say, if they keep quiet, the stones from the aloe and coffee business and the orange and coffee farms, WOULD CRY OUT. The original vision of dozens of women: COMUCAP started to sell the products of its members and accordingly built equity in their homes and communities. To sell whose products? The products of ITS members!

Second step, finding a solution to the root of the problem, ownership and operating within the democratic mechanisms of COMUCAP. There is their new “motor”. Their “break even point” is not buying coffee from whoever and however, it is not adding new members as best as possible. It is going back and building trust in each family, each group, the board of each group, the asembly, the board of directors, the oversight board and the staff that they have. COMUCAP now has 505 members. Let us recall popular wisdom, the stronger the daughters and sons are, the stronger their parents will be – in other words, the stronger the families are, the stronger the groups will be, the stronger the groups are, the stronger their board and their staff will be, and COMUCAP will be stronger.

Third step, weave alliances with people (and organizations) like those who helped them to begin the change in 2012 and who left them the secret for getting ahead: study the reality itself, wake up to what the study finds, and be accompanied in the process of change.

For these three steps the notion of stewardship helps us: our lives are a breath in the life of the universe, our participation in an organization like COMUCAP is at the most a tenth of a human life: a leader who lives for 90 years will hold posts for less than 9 years, a salaried worker will not be there for much more than that. In other words, while we hold positions of responsibility we must give the most of ourselves serving the 505 women, many of whom are single mothers taking care of their grandchildren, assuming the roles of mother and father. Stewardship, according to Block (2013, Stewardship: Choosing Service Over Self-Interest), is “the willingness to be responsible for the wellbeing of the organization, working in service of those who surrond us, instead of controlling them. It is responsibility without control nor compliance”.

Can the 505 women and the organizations that consider themselves to be their allies let die what needs to die, and give birth to what need to be born? The lionesses of Marcala are roaring: this movie has barely begun.

[1] René has a PhD in development studies, is an associate researcher at IOB-University of Antwerp (Belgium), collaborator of the Winds of Peace Foundation (http://peacewinds.org/research/) and member of the COSERPROSS cooperative RL. rmvidaurre@gmail.com

 

Community, that circular mobilizing utopia

Community, that circular mobilizing utopia

René Mendoza Vidaurre[1]

Utopia is on the horizon. I walk two steps, and it moves away two steps, and the horizon runs ten steps further. So what good does utopia serve? For that, for walking. Eduardo Galeano (1940-2015)

Once they discover the strength of the community, they will be able to do anything. Priest Héctor Gallego (disappeared in Panama in 1971).

The myth of the “harmonious” community was held by anthropology (see: Redfield R., 1930, Tepoztlan, a Mexican village: A study in folk life) until the 1950s, when Lewis (1951, life in a Mexican village: Tepoztlan restudied), restudying the same village that Redfield did, found that communities are disputed spaces mediated by power relations. In spite of the fact that this myth was debunked, it continues to attract followers: “living community”, “autochthonous community”, “peasant community”, “indigenous community”…; and they idealize it again as “harmonious”, at times as “exotic” to be directly visited, and other times as opposing globalization (Pérez J.P. Andrade-Eekhoff K.E., 2003, Communities in Globalization, the Invisible Mayan Nahual). In this article we describe a peasant-indigenous community in Honduras and argue that, following Gallegos, their disputed processes indicate steps with their diverse forces, this time in glocal (global and local) spaces, and that this path shows the utopia and horizon of Galeano, which the allied organizations of the communities –also conflicted – pursue.

  1. Glocal economic transformation
Events in the community
1975 Los Encinos Peasant Store
1996 Alcoholics Anonymous (AA)
1999 Juan Bautista Community Store
1997-2003 Introduction of vegetables and marketing (IAF: Honduras Foundation for Agricultural Research)
2003 APRHOFI: Intibucá Association Of Vegetable and Fruit Producers
2003 Los Encinos Store joins the COMAL Network
2010 Introduction of irrigation systems (USAID, State agreement, EDA)
2011 EMATE: Los Encinos Thread Craft Enterprise
2011 Recovery of APRHOFI
2012 Introduction of Ecological Agriculture
2012 ESMACOL:Lenca Alternative Community Multiple Service Enterprise. (7 stores are the owners of Esmacol)
2016 Introduction of greenhouses

 

The community of Encinos, with a population of 500 and  Lenca roots, emerged at the beginning of the XX century[2]. In the last 42 years this community has experienced big changes in their agriculture, forms of organization and access to markets, one part with national and international aid organizations, and another part based on their own funds. It is the product of a millennial indigenous culture and globalization, as ideas and resources came to this place. How did this transformation happen? See the above Table .

The 1960s and 1970s were marked by changes in the social doctrine of the Catholic Church with the II Vatican Council (1962), through which radio broadcast schools came to the rural areas that taught reading and writing and encouraged people to organize. And the Alliance for Progress of the United States came in to prevent the contagion from the Cuban revolution, pushing governments to permit the emergence of the National Association of Peasants of Honduras (ANACH) and the National Union of Peasants (UNC). In that context, a group in Encinos envisioned a store in and for the community, while in other places they envisioned a piece of land to leave to their sons. It was a time when they introduced potatoes and began to plant by “ploughing” their cornfield. It was when they built leadership coordinating families using their own resources.

The decades of the 1980s, 1990s, and 2000s were times of international conservatism in religion and economics, and a boom time for international aid. The struggle for the land was blocked by the law for farm modernization (1992), and the protection of the agro-food basis for the country was removed with the free trade agreement (CAFTA, 2004). The arrival of Popes John Paul and Benedict made the priests return to their parishes. Projects from organizations with physical investment and training crossed the rock and barbed wire fences. In this context organizations multiplied, and a group of leaders from various organizations envisioned “if we already have land and are producing on it, we need markets to sell our products”. Thus the COMAL network emerged in Honduras, and another additional store opened in Encinos. It was a time when vegetables and irrigation were introduced to Encinos, and the tug of war with the markets began. It was when they built leadership based on negotiating external resources.

The decade of 2010 found Honduras under the coup, additional reforms to the law of agricultural modernization, the approval of the anti-terrorist law that criminalized social protests, international aid withdrawing from Central America, a Catholic Church that seemed to be reanimated with the arrival of Pope Francis to the Roman Curia, and a world concerned about climate change. It was a period in which the COMAL Network saw itself forced to end mediation as a wholesaler of products, while the leaders of Encinos envisioned organizing enterprises to improve their stores and sell their products. Accordingly, along with 5 other stores from other municipalities of Intibucá, they bought ESMACOL as a distributor of products, recovered APRHOFI to sell their potatoes and vegetables to supermarkets, introduced greenhouses and sustainable agriculture practices to increase their productivity and lower costs, and organized another associative weaving enterprise in a decentralized fashion. It was a time when they built a leadership connecting the resources that they had (stores, distributor, renovated agriculture and commercialization enterprise) and cultivating relationships with the few aid agencies.

  1. Circular dynamic in process

This description appears to be an expression of a virtuous circle between technological change, markets, organization and financing. It is more than that: see the figure inspired by a 4 layer onion. The organizations (stores, distributor, commercialization enterprise, weavings), the introduction of potatoes and vegetables and investments in irrigation systems and greenhouses, reveal that there is an interaction between the technological, social, economic, cultural and spiritual aspects. In other words, new crops and greater productivity (technology) implies more cooperation between families (social), which generates costs and income (economic), which requires changes in habits (cultural) as agriculture intensifies and deals with the market, this has repercussions in the spiritual-religious life of families, and this in turn on technology…

This network of organizations and changes creates prospects for improvement. There is a technological change (farm), business change (administration and entrepreneurial initiatives) and change in social relations with external actors. Multiple perceptions can be appreciated in this dynamic: in the business administration staff, in the members of the producer families, in the consumers in – and outside of – the community, in the aid agencies determined to “manage and execute”, and the leaders moving about in various “waters”. What explains this 42 year old circular process? In addition to what is described in section 1, we point to two facts. First, after several decades of cultivating the same areas, in the 1970s the weariness of the land began to be felt (decrease in fertility), due to that institution of “I will sow as I have always sown”, handed down for generations. It gave way to “ploughing”, at the same time that they organized the peasant store as a way of getting closer to a market that they could control. Second fact, like in many communities, in Encinos alcoholism reduced them to “measuring the streets”[3], and put the very existence of the store at risk. So Professor Jenny Maraslago saw this, suggested a solution and created the conditions for the change. This is how Bernardo González remembers it: “The professor in 1966 said,”it makes me sad to find these intelligent young men in the gutter”. Then the professor brought us the rules of AA and introduced us to a professor friend from AA. Encouraged by my older brother, we would meet continuously, and look, we quit getting drunk, from that day on everything changed.” 20 years later we find those young people no longer in the gutter, but leading the organizations.

These two changes contributed to creating the conditions so that Encinos in the following years would multiply their organizations. Nevertheless, seen from our times, the changes that occurred emphasize the technological-social-economic-cultural-religious elements that are the first layer of the onion (See Figure), while the changes in the other layers of the onion – on the level of the individual, family and community – are slight. On the community level, it is estimated that half of the population is outside of the described organizations, which means that there is exclusion and internal dispute: “they are conformists” vs “they do not let us in, only they eat”; in fact, 4 or 5 last names in the community underlie all the organizations, they are families whose commitment has generated organizations and benefits, and at the same time are the “bottlenecks” of local power, the door to external organizations. On the family level, the stores in the last 10 years have not included  even one new member, not even their own sons and daughters, which is not strange given that the institution of land inheritance favors the sons, and does not discharge the inheritance “until the pig sheds it lard”;  in addition a quick survey shows that the existence of children outside of marriage is similar in both organized and unorganized families. On the individual level, centuries-old beliefs have nested in their minds: “there are children outside of marriage because the women allow it”, in other words, following the mentality that “the man has the rights”, and “the woman is to blame”, something tremendously discriminatory. At the same time, all these points are in silent dispute: daughters who work in agriculture demand their rights, and wives who raise their voices against  unfaithfulness (“if he does it to me, I will do it to him”).

The changes in the first layer are unsustainable without changes in the communal, family and individual areas. It is like “learning to fish” assuming that there will always be water in the river, and if the water is diverted for mono-cropping, held back by dams, or dries up from deforestation? In 1975 they woke up to the possibility of bringing in a store for the community, and in 1996 the rules of AA and the discipline of not drinking liquor for 24 hours renewed indefinitely, showed them a path for waking up to harsh realities. How can that capacity for change be expanded on the individual, family and community levels in synergy with the different initiatives achieved so far? Once again the image of the onion helps us to respond to that question: all the layers appear to be separate, but they are united by the root of the onion. In the next section we identify that root.

  1. Mobilization of forces under democratic mechanisms

The elites of the world predict that “economic growth generates democracy”. Encinos shows that is not true. It is important to “manage” the economy with democratic mechanisms where the entire community moves and cultivates a capacity to awaken their consciences in the face of each new reality.

These mechanisms include that the rules (statutes) of each organization be respected, their organs (board of directors, oversight board, assembly) make decisions, there be interaction between the associative side (organs) and the business side (administrative and technical staff) without any side replacing the other, the rotation of leaders be done and the fact that one person would take on various posts be avoided. As they study their realities, the corresponding bodies include policies so that sons and daughters of the members might join the organizations, and exclude those who fall into gender violence, and/or after forming their family, have children outside of marriage. That part of the mission of the organizations be to help the other half of the community, that has been left invisible for the aid agencies, to organize  their own initiatives. That the external organizations contribute to the communities being vigilant about compliance with these mechanisms, and coherent in their democratic processes, overcoming the neoliberal institution of “managing and executing” that goes along the lines of the idea that “the economy generates democracy”, and that instead listens to the forces in the communities and translates them into ideas that are backed by other organizations.

This reminds me of the dilemma of the pons asinorum (bridge of asses) of St Thomas: the asses cannot cross the river because they cannot find the bridge. In our case the “bridge” are these democratic mechanisms interlinked in different spheres – individual, family, community and global – interacting with the economic, social and religious organizations. This is the mobilizing circular dynamic. Nevertheless, many times what happened to the asses happens to us, in spite of the fact that we see the bridge, we do not cross the river on it; and other times we say we did cross it, without really moving from the side of the river where we are. In contrast, the professor alluded to above saw the challenge of crossing, saw the bridge (AA) and brought them to the community of Encinos, and they crossed over!

The priest Gallego said that when people discover “the strength” of the community, people can “do anything.” The writer Galeano said that utopia “serves for walking.” The community of Encinos teaches us that utopia is on the other side of the river, and reveals its strength in the “bridge.” Can we see that bridge and cross the river on it? Here is the dilemma.

[1] René has a PhD in development studies, associate researcher of IOB-Unversity of Antwerp (Belgium), collaborator of the Winds of Peace Foundation (http://peacewinds.org/research/) and member of the COSERPROSS Cooperative. rmvidaurre@gmail.com

[2] The success of the peasant store of Los Encinos we describe in : Mendoza, 2016, “Honduras: las comunidades organizadas valen ¡y mucho!”, in: Tricontinental. http://www.cetri.be/Las-comunidades-organizadas-valen?lang=fr

[3] Popular saying to refer to way drunk person staggers from one side of the street to the other.

There is no chocolate without organized family agriculture

There is no chocolate without organized family agriculture

René Mendoza Vidaurre[1]

Eve left the Garden of Eden over chocolate! Anonymous.

Life is like a box of chocolates, you never know what you are going to get. Forrest Gump

The exodus of the people of Israel from Egypt to the Promised Land, the Bible says, had a decisive moment when, pursued by Pharaoh and his Army, they arrived desperately to the sea, and then Moises raised his staff and the sea opened up; so they turned a page and wrote their history. The chocolate industry predicted that by 2020 they will need 30% more chocolate; nevertheless, the cacao supply does not seem to be responding to the demand. Said figuratively, the state institutions, the market and society, like Moises, are raising the staff of productivity, quality, inclusive businesses and fair trade so that there might be more cacao and Eve might have a reason to not go back to Eden, but the sea is not opening up! Why? What “staff” is needed for the sea to open? This article deals with that question.

For full article:

peacewinds.org/…/Artículo-cacao-oficial-eng.pdf

[1] René (rmvidaurre@gmail.com) has a PhD in development studies, is a collaborator of the Winds of Peace Foundation (http://peacewinds.org/research/), an associate researcher of IOB-Antwerp University (Belgium) and a member of the COSERPROSS Cooperative RL. We note that the name of the municipality “Sasha”, the Dalila cooperative, the ABC and RDA NGO, Flesh company, and the last names Konrad, Peñaranda and Peña, mentioned in this article, are ficticious. We did this to protect those identities from any inconvenience that this article might cause them.

http://peacewinds.org/wp-content/uploads/2017/05/Artículo-cacao-oficial-eng.pdf

The Need to Own It

I have written here often about some of the cooperatives with whom we work and, especially, the remarkable people encountered in these organizations.  Along the way, I have shared descriptions of some of the tools that we have shared with Nica partners (like Open Book Management and Lean principles), because many rural producers have become convinced of the need for organizational strengthening.  It should be no surprise that Winds of Peace Foundation regards these tools, and others that encourage inclusiveness and participation, as key to sustainable organizational strength.  So do many Nica partners.  But thinking that something is true does not automatically prove that it’s true.  So I decided to share some data about ownership that has recently been published.

The National Center for Employee Ownership (NCEO) has published a new study of employee-ownership in the U.S.   Now, the U.S. is not Nicaragua, and employee stock ownership is not cooperativism.  But the results cited in the report focus on enterprise ownership, owning the business and social equity of an enterprise, and that definition encompasses an entire spectrum of stakeholder models.  And this is a portion of what the study has found:

*Enterprise-owners in this dataset have 33% higher median income from wages overall. This holds true at all wage levels, ranging from a difference of $3,160 in annual wages for the lowest-paid employee-owners to an extra $5,000 for higher-wage workers.

*Median household net wealth among respondents is 92% higher for owners than for non-owners. This disparity holds true for the great majority of subgroups analyzed, including single women, parents raising young children, non-college graduates, and workers of color.

*Enterprise-owners of color in this data have 30% higher income from wages, 79% greater net household wealth, and median tenure in their current job 36% over non-employee-owners of color.

*For families with children ages 0 to 8 in their household, the ownership advantage translates into median household net worth nearly twice that of those without employee ownership, nearly one full year of increased job stability, and $10,000 more in annual wages.

The report is full of additional data which supports the organizational value of ownership; take a look at it for lots of details. But the picture being painted here is one of many colors: organizations that involve their workers as owners are more successful;  greater opportunity comes from ownership; greater participation through ownership yields greater strength and organizational growth; there is a central tendency in us as human beings to nurture and protect that which we own.

Concurrent with the publication of this groundbreaking study was the publication of Fortune Magazine’s 2017 100 Best Companies to Work For.  Of the 73 corporations recognized for their outstanding workplaces, more than half of them (35) incorporated ownership plans for their members.  It’s hardly a coincidence that many of the best companies to work for are companies owned, in whole or part, by the employees or members themselves.  (The Fortune list is traditionally weighted heavily toward technology and healthcare providers; the preponderance of ownership would presumably be even higher in a more representative sample of U.S. businesses.)

There is no mistaking the fact that Nicaraguan cooperatives are owned by their members, in at least the structural, legal sense.  But like their U.S. employee counterparts, Nicaraguan owners need the understanding of what ownership is, of what their ownership obligations and rights are, and how their success truly rises or falls based upon the members taking responsibility, collectively.  Successful ownership is not reliant upon heroes or the efforts of the few or the presence of a beneficent patron.  Success follows a basic understanding of how their cooperative works, how A+B=C, and importance of each member to the whole.

So when the third Certificate Program is convened in August, there will be modules about family strategic planning and access to markets and means of improving production and quality.  But at its core, the Program will be about ownership, seizing the opportunity for self-improvement by embracing both self and collective responsibility.  We’ll be there to help conversations about Open Books and Lean, but the days will really be about our partners’ futures, and their appetite to own it….

 

Can the youth fall in love with the countryside again?

René Mendoza Vidaurre[1]

You cannot direct the wind, but you can change the direction of the sails. Chinese Proverb

Let the wind blow and carry you where it will. Bible saying.

“Our problem, says A. Argueta, from the COMAL network (Honduras), is that our offspring do not want to know about agriculture; many times in a family of 7 only two are working, Mom and Dad.” R. Villegas, also from the COMAL network, says, “when they are little our children help us in the work, but once grown up, returning from their studies they do the numbers on our crops, and they tell us that planting corn and beans no longer works, and they tell us it is better to sell the land.” What Argueta and Villegas tell us we hear in every country in Latin America.

If this situation intensifies, it will affect world food production. Because it depends in good measure on family agriculture, which, according to ECLAC, FAO and IICA (2014, Prospects for Agriculture and Rural Development in the Americas) represent more than 75% of total production units in nearly every country of Latin America. The organization of that peasant economy, according to A. Chayanov (1925, The Organization of the Peasant Economic Unit) is based on family labor to meet their needs. From that situation, to now where youth are increasingly disenchanted with farm work, means that the peasant economy is growing old and the depopulation the rural sector is increasing.

We are facing a world problem that we deal with in this article from a rural perspective. We break down the dynamics that led to this situation, we look into the specific nature of family agriculture and we provide some ideas for the youth to fall in love again with the countryside. For these points and others, taking up again the Chinese Proverb and the bible passage quoted above, we argue that it is important to change the direction of “our sails” (perspectives) as we understand the direction of the “wind.”

The conditions for the disenchantment

There are structural conditions that are conducive to this disenchantment. The first refers to the current generation of parents and children. In Europe they talk about the “neither-nor” youth; they neither study nor work. Bauman (2014, Does the Wealth of the Few Benefit Everyone?), studying the inequality, observes that the generations after the second world war, supported by redistribution policies, looked forward in order to improve; while today the “neither-nors” are the first generation that are not managing the achievements of their parents as the beginning of their career, that instead are asking what their parents did to improve, and that in this way these youth are not looking forward, but back. Some years ago in rural Latin America, parents would receive their inheritance and would go into the forest to expand their area in order to, later on, leave it to their children, and they to theirs. The inheritance was the starting point for each generation. But now the agricultural frontier has reached its limits, and there is almost no more forest to go into. So, on the one hand, the parents are not expanding their areas to leave behind, nor did they have time to inculcate their farming culture on their children, because they passed their childhood, adolescence and part of their youth studying; and on the other hand, this growing group of youth did not find work in their majors, nor did they like their parents farming, and in the case that they did, it is common to hear their laments; “Dad says that as long as he is alive I cannot raise different crops on his land”, “they do not want to leave me my inheritance because they say that ‘the pig sheds its lard only after it dies’”.

Table. Corn profitability (Honduras, 2016/17)
  Units Price (L) Value (L) Dollars
Production (qq) 24 300 7200 309.0
Costs 7040 302.1
Preparation (wd) 16 120 1920 82.4
Planting (wd) 4 120 480 20.6
Seed (lbs) 25 4 100 4.3
Fungicide (wd) 1 120 120 11.2
Fungicide (lt herbicide) 2 130 260 20.6
2 fertilizations (wd) 4 120 480 20.6
2 fertilizations (sacks fertilizer) 4 500 2000 85.8
Bend and harvest (wd) 12 120 1440 61.8
Clean 2 120 240 10.3
wd =work days

Source: based on cases of several producers in Honduras

The second condition refers to the knowledge perspective acquired by the youth. There is a boom of youth studying; in 2015, according to the UNESCO report, 98% of the youth of Latin America were studying. Going back to where their parents are, many of them do economic calculations and conclude that what their parents are growing it not profitable (see Table for corn; calculations for beans are more generous, $400/mz costs and $1200/mz income). This acquired knowledge, nevertheless, underlies a perspective contrary to the peasant economy: they take crops as a comodity isolated from the production system where it grows, and outside the logic of the family that produces it. These assumptions are in line with the perspective of big enterprise: monocropping, betting on volume based on intensive and mechanized technology, and the maximization of financial earnings.

The third condition refers to the growing gap between parents and their children. The children are caught between the love for their parents and their belief that “I did not study to go back to the fields” – by “fields” they assume backwardness. The parents feel impotent in not being able to explain their “agricultural profitability” showing their production systems and their social and economic life, surprised they recall when they encouraged their children to study, telling them that “a shovel weighs more than a pen”, and get frustrated in not being able to direct their children to the future, even worse not knowing the digital technology in which the youth move. These facts make the gap that separates them even greater, the parents grow old and the youth are at risk of falling into that old expression of “the idle mind is the devil´s workshop” in a Central America that finds it difficult to free itself from violence.

The fourth condition refers to rural organizations. It is common to run into peasant associations, stores, banks and cooperatives whose members´average age is 50. If life expectancy in the Central American countries is around 73 years of age, the paradox is that the organizations are aging while they close themselves to the youth. A mother who returned to dedicate herself to her family, after 8 years in an organization, said, “if I would have continued as a leader, I would have lost my son, because he was already on a bad path.” The logical thing would be that the family life of those who are organized would improve, but that mother says that it did not. Others look for people to blame: “the governments hassle the organizations with taxes and repressive measures, businesses hassle them through their harvest collectors or intermediaries, and aid organizations keep them busy with projects.” It could be. But the chasm between the organizations and the youth is deep.

The Specific Nature of Peasant Production

Why do they take such great pains with corn and beans? What is it that we do not understand about them? Full of millennial patience, the peasant families husk the ear of corn for us. “We plant corn, beans, chicory…because we learned it from our parents to feed our families, not to make a lot of money.” Looking at me skeptically, they continue on: ”by planting corn we eat tamales, atol, corn on the cob, baby corn, new corn tortillas, would we be able to eat all this if we quit planting corn?”, “the protein from a recently harvested corn cob is not comparable to that anemic imported corn”, “with beans we eat green beans, bean soup, cooked beans…” We understand that corn is more than tortillas, and beans are more than bean paste. “When we have corn and beans it makes us feel relieved, so we look for plantains, eggs…we go from serving to serving.” And then, “the beans that we are not going to eat we sell, likewise with the other products, in order to buy other needs and pay for the studies of our children.” And the profitability?

With weatherbeaten skin and a cold stare, they explained to us. “If we don´t plant corn, we would have to buy tortillas; we are 6 in the family and we would need 30 tortillas for each meal, that is L15; if I plant we eat 20 tortillas because the tortillas we make are thick.” Time to do the numbers: 1) 20 tortillas come from 1 lb, 3 lbs per day, 90 lbs per month, in other words 10.8qq per year, the remaining 13.2qq are for seed, chickens and pigs, from which we get between 6-10 eggs each day and 2 piglets every 6 months; 2) not planting corn, a family of six people needs L16,425 ($714) to buy tortillas in the year, another amount for atol, eggs and pork. In other words, the Table does not show that the corn is linked to small livestock, does not count the corncobs, little corn, new corn tortillas…If the peasant families subjected themselves to the “profitability calculations” of the large enterprises, they would have to go into debt, sell their land, and become farm workers to buy corn in times of scarcity at double the price or buy 90 tortillas/day at $1.90. “They say that it does not work, but it does”- the roar of the wind is heard.

The peasant cornfield includes basic grains, root plants, bananas, trees, chicory, poultry, pigs, water… Is it time to change the direction of our “sails”?

Thinking about the youth

Observing, listening and dialoguing can happen in the family, particularly if their organizations help. The Colega of Colombia cooperative shows us the way. Their members are milk ranchers and the cooperative collects and sells the milk. “We are second in world productivity, behind New Zealand,” they state. This cooperative organizes the children of the members into two groups; the little Colleagues are those under 14, and the pre-Colleagues are between 14-18 years of age. Each little Colleague is given one calf to take care of, the cooperative gives milk to the child as a provision for the calf, and the family of the child provides the inputs for raising the calf; in school they include courses on cooperation and the cooperative invites the little Colleagues to their events; so, from an early age they are cultivating the “member-rancher of the future.” The pre-Colleagues, who were able to take care of and multiply their calves, are provided scholarships for their studies, and member benefits, because they already participate in the production processes like their parents.

Youth are joining the Fe y Esperanza Rural Bank of Palmichal in the COMAL network, encouraged by their families. “My stepfather insisted that I attend the meetings, I thought that this was about old guys who do not change, then I realized that here you learn to improve.” “My grandfather is trustworthy, he told me to join the Bank because one day it would work for me, I paid attention to him, and it is true, now it is working for me.” In a few years this organization is growing in savings and loans, has efficient administration and its organs (board of directors, oversight board and assembly) meet each second Saturday of each month to discuss their numbers and opportunities. Another organization, the 15th of July (a community in Corozo, Yoro) also from the COMAL network, recognized the capacity of a young woman (D. López) who has finished her Certificate Program, and named her as President, and that organization got itself up to date with its internal and external paperwork, and finished its factory for processing granulated sugar.

These three experiences express three ways of including youth. They also tell us that, in contrast with the large businesses where you learn to do a task, in small organizations youth learn to follow their dreams with deep passion. So if an organization would dedicate 1% of its profits to provide a calf, a piglet or a contribution of 5 dollars to each son or daughter of each member, and if that organization accompanied that initiative, it would be planting its own future and that of humanity. If that is accompanied by the universities teaching the perspective of the large business sector, and also that of that 75% of producers who make up family agriculture, we would be turning the direction of our “sails”, and the youth would once again fall in love with the countryside. In this way, organizations could continuously reinvent themselves under the following expression, that D. Zuniga from the COMAL network saw in a home for the elderly in Copan: “you will be as young as your faith and as old as your doubts.”

[1] PhD in development studies, associate researcher of the IOB-University of Antwerp (Belgium), collaborator of the Winds of Peace Foundation (http://peacewinds.org/research/) and member of the COSERPROSS Cooperative. rmvidaurre@gmail.com.

TOWARD THE RE-INVENTION OF “FAIR TRADE” by René Mendoza Vidaurre

The height of injustice is to be deemed just when you are not. Plato

With an open treasure, even the most righteous sins. Saying.

The VII song of the Odyessy tells how the goddess Circe warned Ulysses that the sailors of those waters were so enchanted by the song of the sirens that they went mad and lost control of their ships. To not succumb to that enchantment, Ulysses asked that he be tied to the mast of the ship, and that the oarsmen have wax put in their ears, and ordered that if he, because of the spell of their song, would ask that they free him, instead they should tighten the knots. So it was that Ulysses and his oarsmen were saved, and the sirens, failing in their objective, threw themselves off the cliff.

Facing unfair commercial relations, Fair Trade (FT) emerged as an alternative so that people who organized might improve their lives and be a space of solidarity among different actors beyond their countries´ borders. Nevertheless, the institutional structure of the power relationships under the market rule of elites is like the sirens of the myth, capable of seducing the FT network, of turning it against its own principles, and turning solidarity into just a bunch of words, numbers and papers[1]. How can FT tie itself up to not succumb to the song of the sirens, and in this way, grow, enhancing its FT alternative principles? To respond to this question, we take as given that there are exceptional cooperatives, organizations, and people who confirm the importance of organizing and cultivating global solidarity, and that there are still more successful cooperatives, in countries in the south as well as in the north, in FT as well as outside of it. Nevertheless, in this article we study certain practices of the FT framework that seem to indicate its regression, and on that basis we suggest that FT re-invent itself. To do so we focus on coffee, which constitutes 70% of the volume of what is sold through FT[2].

It should be noted here that this analysis does not presume that all parties in the FT framework will view its conclusions with favor or agreement; indeed, some of the actors within the FT arena are very well-served by the current status of the FT mechanisms. Nor does the author attempt to provide a blueprint for all of the actions necessary to cultivate change. The intention herein is to describe the realities of the FT network as it most often operates, and to draw attention to the ways it could be returned to its original objectives and principles.

[1] Even though strictly speaking currently FT is the organization known as FLO International (Fairtrade Labelling Organization International) and FT-USA (FT-United States), we call “the FT network” the series of cooperatives, certifiers, social banks and buyers who operate under the FT seal.

[2] We have followed the topic of fair trade in coffee since 1996 (See: Mendoza 1996, 2003, 2012a and 2012b; Mendoza & Bastiaensen, 2002).

[pull down full article here]

Cooperativism, a means for an arduous peace in a space of ‘conflict’

Cooperativism, a means for an arduous peace in a space of ‘conflict

René Mendoza Vidaurre[1]

War is the continuation of politics by other means.  Clausewitz (1780-1831)

My husband and son were killed in the war. I was left with a little bit of land. The cooperative was like my husband. I supported myself in it to raise my children. E. Terceros, producer, cooperative member, Nicaragua.

The stronger the sons and daughters are, the stronger the parents will be. Proverb in Rural Central America

War and peace are the continuation of politics by other means, we would say, hoping that Clausewitz would agree with the addition “and peace”. Countries with wars that sign peace agreements experience a period that De Sousa (2015) called “post peace accords.” It is a period of the continuation of conflict where different development paths clash with one another, and where associative organizations are an expression of that, and have the potential to make a difference. Under what conditions do associative organizations contribute to peace? What alliances are needed to make a difference? This text responds to both questions from the reality of war and peace that Central America experienced over the last 50 years.

[pull down full article here]

[1] The author has a PhD in development studies, is an associate researcher of IOB-University of Amtwerp (Belgium) and a collaborator of the Winds of Peace Foundation (http://peacewinds.org/research/) and member of the COSERPROSS Cooperative R.L. rmvidaurre@gmail.com. This article, for now a draft, will be the basis for our presentation in the Peace Prize Forum to be held in Minnesota (September 2017).

 

 

For Example

During the recent Certificate Program conducted at the foot of Peñas Blancas, participants were able to study the methodologies of Lean Continuous Improvement, a practice designed to remove waste of all forms from our daily work.  It’s a very precise process improvement technique, thus one that is not quickly or easily assimilated by most people.  As a result, teachers of this process, which really involves transforming the way one looks at everything in a new way, frequently use examples to illustrate the concept.  Our Lean leader for the week, Brian Kopas of FabCon Precast, selected examples which would be familiar to the rural Nica audience and yet demonstrative of the ideas of Lean.  One example that week stood out .

The story is of a successful conference center which, among other amenities, includes on-site lodging accommodations, a beautiful setting, exercise opportunities, and a full complement of meals for their clientele.  It’s an operation that has sought to constantly make improvements in the range and quality of its offerings, so an attempt to streamline kitchen operations and meal services seemed like an obvious initiative.

img_5586
The “Before” Diagram

The kitchen staff gladly accepted the participation of several observers from outside the enterprise, to make notes of wasted time and motion, to document actions and capture the flow of work and the demands upon the staff members.  Using the Lean tools of observation and measuring, together they created a pictorial  snapshot of the breadth of the kitchen staff work for just one meal of the day.

The visual was shocking, to say the least: each one of the colored lines in the photograph represents the travel of one of the staff members in preparation of one meal.  It turned out that the staff members were walking miles within the confines of their kitchen, and most often incurring the high mileage as a result of inefficient placement of materials or redundant movement.

img_5591
“After”

The graphic example provided an immediate blueprint for improved customer service and timeliness, less strain on the staff and better care of kitchen implements and ingredients. Upon actually seeing what a morning preparation looked like, the staff members and their outside “helpers” set out to remove as much of the wasted time and energy as they could, cleaning up the process so that it looked more like that to the right.

Granted, the travel lines were not drawn in this “after” diagram, but the open spaces in the drawing were indicative of the clean-up that was possible, all in the course of a few hours of observation, discussion, modeling and decision-making.  (It didn’t hurt that these particular Lean practitioners decorated their “after” diagram with flowers along the edges, either!)

The example resonated with the participants in the Certificate Program, partly because the topic- cooking and eating- are very familiar and important activities.  In part, they understood because they recognized what those spaghetti-style travel lines represented in the way of excess steps and the drain that such extra movements create during the course of a day’s labors.  They could identify with the notion that there is opportunity for improvement in even the most repetitive, everyday kinds of activities.

But most of all, they attendees could identify with the example because it was of their own making.  Because the example described above was one of the three Lean projects actually undertaken during our week at the conference site at Peñas Blancas.  The “students” grabbed the Lean concepts voraciously, asked questions about process steps, immersed themselves in the work of the kitchen at 5:00 one morning, making themselves part of the the morning’s business, quizzing the kitchen workers, empathizing with difficulties and frustrations likely never before observed.  When they had applied the tools that Brian had provided, they went steps further, preparing written analysis and reasoning for proposed changes, estimating the impacts and the costs of such alterations, and even adding the beauty of those wildflowers along the border of their diagram.  (I have never seen that before!)  The best example of the entire week was the one that the Nicas produced themselves.

The reality of our time spent with participants on the topic of continuous improvement methodology is that they not only absorbed the ideas, but ran with them,  embraced them as though they were hanging on to lifelines in a relentless storm.  Even as newly-initiated to Lean, they added their own signatures to the results, thereby further underscoring the notions of continuous improvement.  Indeed, I have witnessed few Kaizen projects, in my own company and of even longer duration and study, that were as exhilarating as this one.

img_5588
Preparing the Ideas Visual
img_5589
Inputs from Everyone
img_5568
Brian’s Teaching Absorbed

It’s an example I intend to use in the future, with other groups of curious learners.  And it’s one that will utterly dissolve any excuse that the concepts are simply too difficult for some folks to apply.  What a week….