Category Archives: Democracy

Equitable distribution of surplus in cooperatives

Equitable distribution of surplus in cooperatives

René Mendoza Vidaurre[1]

Paying back is improving

The revolution and the agrarian reform came, people knew the word and their eyes were opened, many organized into cooperatives and received land, seed and technology, and they said “we are in power.” Within years they sold the land and forgot even the word. They received it, and lost it.

A woman received a cow and in months paid for it with a calf, which was given to another family. She understood that the cow pays for itself, she felt that she paid back, and made an effort along with other families. Paying back is improving.

(Based on a conversation with Gregorio Solórzano, Municipality of Cinco Pinos, Chinandega, Nicaragua)

This parable recalls the historic rules of indigenous and peasant communities. If the action of “giving” is connected with “paying back”, like the woman with the cow and the calf, their lives improve. While “receiving” unilaterally, without “paying back” to the community, creates a false world (“we are in power”) where people are left worse off (“without land and power”). The paradox is that “paying back” is not losing, it is gaining: it makes the person “make an effort” within a collective framework and community space.

That collective framework constitutes the paradoxical difference. In the case of the woman who received a cow and paid back with a calf, an arrangement (agreement, rule) underlies which she fulfills, an arrangement that is connected to a virtuous millennial indigenous institution, “giving-receiving-paying back”[2]. In the case of the beneficiaries of land on the part of the government, a damaging arrangement  underlies it, subordinating oneself and depending on the government, something that leads them to be connected to another historical institution, this time a counterproductive institution, “easy come, easy go”; people lose and the government loses. The gaze of the woman is toward the community, while the gaze of the people in the cooperative is directed outside the community.

Giving-receiving-paying back is growing in collective spaces mediated by rules that are connected with virtuous endogenous institutions of the people themselves. Within this framework, how can distributing (“paying back”) in the cooperatives be the key for growing with equity? Perhaps diminishing is growing?

In this article we study these questions in light of the cooperatives, even though it can be generalized to associations, associative enterprises or NGOS with initiatives under the framework of the social and solidarity economy. We start conceptualizing distribution as a different idea from the neoliberal economy, where the market is the great distributer. Then we look at five ways for the distribution of surpluses: legal reserve, cooperative reinvestment, social-educational fund, direct resources to members, and retribution by way of a member´s rights.  Then we work on how to carry them out. We conclude reconceptualizing equitable distribution as a cooperative concept and one from the social and solidarity economy, that goes along with the democratization of cooperatives, and connected to endogenous institutions of the peasantry.

1.    Distribution rules and policies

In capitalism “the invisible hand” attracts resources and distributes them with inequality, in dependence on the financial power of the actors, their connections, the support of the State for elites (e.g the policy of low taxes for mono-cropping enterprises), and guided by the rule “even the monkey dances for money”. The mediation network captures the resources and returns them as money that buys new products (and labor), mediated by institutions that worsen that inequality: usury, future purchases (crop lien system) and indebtedness. The capitalist, be it merchant, banker or industrialist, is the absolute owner of the surplus.

Polanyi (1976)[3], in an anthropological study, worked on the idea of reciprocity, distribution and interchange. For the topic that concerns us he says: “distribution designates the movements of ownership toward a center and then toward the exterior”, and added, “distribution depends on the presence to some extent of centrality in the grouping”” (1976:7). Santana (2014: 91)[4], rereading Polanyi, indicates that “what is unique here is that there must be trust and loyalty to be able to group the assets in that centrality, knowing that later it is going to be returned in an equitable way.” Let us reread both authors: resources come toward a center, let us say toward a cooperative (like taxes to the State), from there is “goes outside” of the cooperative, to the members in an equitable way. For those “movements of ownership” to happen, there has to be “centrality in the grouping”, which is possible if there is “trust and loyalty”. Without trust and loyalty, there is no “movement.” When is there trust and loyalty that takes resources to the cooperatives and makes them be  “paid back”? Our argument: there is trust and loyalty when the rules of the cooperative, connected to endogenous virtuous institutions, guide the cooperative from its beginnings with a societal and communitarian perspective. In other words, the cooperative, from and for the communities, is responsible for the distribution with equity.

Cooperatives currently, nevertheless, are formed and achieve a partial “movement”: they attract resources from dozens of their members, but it is difficult for them to “pay back” the surplus and pay them back in an equitable way. There is the challenge. For that reason, there are written rules. What are they?

Cooperatives include in their statutes, following the laws of each country, the distribution of profits[5]. Cooperatives include a percentage (%) for legal reserve, % for the social or educational fund, % for distribution among the members according to their contributions or economic transactions in the cooperative – note that improvement in the price of the raw materials is not mentioned as “distribution of surplus”, because it is not, the surplus is calculated after the annual financial year. This is consistent with the principles of historic cooperativism: among the Rochdale principles of 1844 is the “payback of surplus”, then  in 1966 the International Cooperative Alliance (ICA) reformed those principles and replaced it with “the surplus belong to the members”, and finally in another reform in 1995 the ICA said “the economic participation of the members”; in all of them the spirit of the distribution of surplus is maintained. These rules can be connected to the virtuous institutions of agrarian societies, giving-receiving-paying back, the gift that Mauss (1979) described.

Consistent with this cooperative and communitarian principle, the International Fair Trade Movement (FLO), begun in the 1980s and 1990s, in their policy of offering better prices to products coming from families that are organized, included a “fair trade premium”, which in the case of coffee, for example, is US$0.20/lb., a fund so that the members of a cooperative might decide to use it in educational, health projects, and farm improvements or investment in processing installations. Other buyers tend to include also a “cooperative premium”, a fund that the members might decide to use for collective investments that would benefit everyone.

In addition to rules, cooperatives have mechanisms for complying with them. They have their oversight board, the assembly, the education committee, there is also the administration with accounting that issues financial reports. In some countries the State has a role of comptroller of the cooperatives. The international fair trade organizations include their FLO certifier that audits the use of the Fair Trade premium and the democratic processes of the cooperative; social banks require financial statements and balance statements; aid agencies ask for audited reports and evaluate the projects that they finance, and in some exceptional cases withdraw their support when the cooperative fails to fulfill their rules for equitable distribution[6]; likewise some companies that buy coffee or cacao[7].

Having gotten to this point, what do we observe? In spite of having rules and mechanisms for distribution, it is rare the cooperative whose members participate in the decisions on the use of the social fund, reinvestment fund, or on the cooperative premium; it is rare the cooperative that is transparent with its members on the use of these funds; and it is rate the international aid agency or buyer who ensures this transparency, and that the surplus be distributed. In other words, the rules of the cooperative and the organizations are systematically not met; consequently, there is no confidence nor loyalty, which is why the “movement” is in only one direction: the resources from the members go to the cooperative and then to the companies (fair trade, direct trade, or independents), who do not “pay back” the surplus to the members. The rules of the cooperative and the organizations do not end up connecting to the virtuous endogenous rules.

2.    What opposes the distribution of the surplus

Even having rules and mechanisms, why do  cooperatives not distribute their surplus? It seems a matter of adding and subtracting, of knowing rules, signing and complying with agreements; it is not a technocratic matter, that a “scholarly” person might resolve; it implies adding and subtracting, showing the strength of the old anti-cooperative model, and of perceiving their own attitudes. Here we start with three interconnected responses, of the several that exist. See Figure 1.

First, the “business foot” of the cooperative, and organizations-international enterprises coincide in the fact that the business (sale-purchase of the product, disbursement-payment of the loan and execution of the project) works, not so much that the cooperative works.

They are content with the protocol, written and legal proof about the functioning of the cooperatives, proof that the elites of the cooperative learn to quickly fabricate: minutes that prove that the organs meet, audits with authorized signatures, financial and narrative reports including registry of data, and even members “trained” to repeat what the organizations want to hear, when some organizations visit. This practice, in turn, is read by the members as something that confirms their ideas that the cooperative does not change at all their way of working and selling their products: “If the organizations says that it is fine, surely it is fine, as we have always worked.” This is the formal structure that covers over the fact that the cooperative does not distribute its surpluses in accordance with its own rules, and the millennial aspiration of indigenous and peasant families.

“The peasant is interested in selling his product, he is not interested in whether there are surpluses”. This phrase presidents and managers of cooperatives repeat, along with buyers and international aid agencies, as well as technicians and boards of NGOs. This phrase underlies century old institutional practices. What are they? It is the institutionalized idea in the hacienda owner or the capitalist, that they have the exclusive rights to surpluses, that the peasantry were born to sell their labor and/or their raw materials. It is the same idea that the peasantry reproduces: “My country ends with my fence of piñuelas”, says the peasant family; “they pay my wage, that is all I ask”, says the working person (field-hand or peon); they never ask themselves about the surplus that their work or their product generates, they take it as given that it is not theirs. That institutionality absorbed the cooperatives and made them forget about the reason for their origins and their rules for distribution, and with that buried even more that indigenous-peasant right to the value that their work creates. So it is that the members demand that they increase the price of their sun-dried coffee, cacao pulp or their sugar cane; in some cases they demand an “adjustment”; “if we got credit as a cooperative so that you pay us a certain price for coffee, and if you paid us as the market price a little less than that set price, then pay us the adjustment”; no one demands their surplus; the presidents and managers behave like the hacienda owner or capitalist.  Figure 2 illustrates this institutionality: the worker reaches the wall of their days wage, the peasant their fence of piñuelas, the “business foot” of the cooperative goes as far as the “wall” of the port, and the buyers-roasters-distributors to the sale or even the cafeteria. Each one, and in each wall, seem to follow the rule of “I don´t touch you, and you don´t touch me.”

Second, the organs of the cooperatives are left bound up, because their rules are replaced by others that respond to what Polanyi (2001)[8] called the “market society”, and respond to colonial and patriarchal structures. One of those rules is: “To distribute, first you have to grow.” This rule comes from neoliberalism, that “economic growth is development”, from trickle-down economics: capturing the wealth of the members so that the cooperative might invest and accumulate in the short term, and benefit the members in the long term. This “development” and that “long term” with “benefits”, nevertheless, tends not to arrive; in other words, “they do not pay back”. Consistent with neoliberalism, the cooperatives assume that “distributing decapitalizes the organization” and they embark on the path of the “big headed dwarf”, whose head is large and is made of steel (concentration of physical investments and resources), and whose feet are clay (impoverished members who do not participate in the decisions of their organizations nor rotate offices). In this logic the managerial staff or the president tend to end up feeling themselves to be the true owners of the resources of the cooperative, that it is “their effort”, while the board members tend to abandon the volunteer nature that their offices imply, and seek any gap to take advantage individually, be it through travel allowances, loans on top of loans, or benefitting themselves from the donations that the cooperatives eventually might receive. Also consistent with neoliberalism, the fair trade and direct trade bodies reduce their relations with the cooperatives to just the financial aspect, and treat the cooperatives as just “businesses”.

Distribution, expressed in colonial rules, says to the members: “We always need a patron.” The field-hand depends on the patron, who “provides” for him (future purchase of his labor), like the peasant depends on the trader who “provides” for him (future purchase of his product). For them, this “providing for” is the best “distribution”; they know no other. This is what penetrates into the cooperative where the members confirm naturally that they never had rights to the surplus.

Distribution is also expressed in the heart of the family. There, the patriarchal rule says, “The father decides to leave the inheritance to the eldest son, and that will be carried out when he dies.” That will is conceived as something sacred. The family is an institution that attracts resources because of the family labor of its members, and in the end “pays back” (inherits) in an unequal way, leaving tacit that that older son is going to distribute the inheritance among his brothers and sisters, and what happens? Not always, but generally, that older son takes over the inheritance, or sells it and squanders it. That family institution also penetrates into the cooperative, where many times the person who occupies the presidency or management is seen like that “eldest son”, while the rest of the members are submitted to his will, in spite of the fact that they are the “parents” (owners of the cooperative) of that “eldest son.”

The cooperative, guided under this capitalist, colonial and patriarchal spell, tends to start with enthusiasm and when it capitalizes, the board members or the administrative staff turn into elites, exclude those who question them, and privatize the cooperatives. Thus, W. Berrios, from the CAFOD aid agency, observes, “In my years of work in Central America I have seen that it is in the maturation curve that the cooperatives go broke.” Infrequently they restructure the cooperative into a private enterprise, but many times they make it function as a private enterprise sheltered under the legal status of a cooperative, or under the discursive mantle of the social and solidarity economy.  In both cases the members are treated as simple sellers of raw materials.

Finally, there is dovetailing between the mentality of international organizations (buyers, banking institutions, certifiers and aid agencies) and that of the members. The international organizations turn a blind eye to the lack of compliance with the rule of distribution, because, following Streeck (2019), “the policy of distribution only function in nations; in world society there are donations,” global governance “is not democratic”, because “above the nation-state there is only the “international free market”, which consists in large enterprises that are free to do whatever they want.” That mentality leads them to have a mentality of turning a blind eye to distribution, which coincides with the mentality of the members, who have never had access to surpluses, they always saw them as something that belonged to the patron or intermediary, from there it is that the members also turn a blind eye to their right that they be “paid back” (distribute) the surplus. This is what Figure 2 expresses with the walls, “I don´t touch you and you don´t touch me.”

3.    Distribution of the surplus (“paying back”)

How can cooperatives unbind this adverse triangle and distribute the surplus? By distribution people tend to fall into two beliefs: that it is “distributing financial surpluses” and that it is “distributing all the surplus to the members.” From here comes the idea that “distributing is decapitalizing.” In this section we break down what equitable distribution of surplus is, expanding the content of the distribution already described in the rules of cooperatives.

Let us start with the attached graph. This illustrates the components of this “paying back” that include collective forms (legal reserve, reinvestment fund and social fund), and the individual forms that the members receive directly (distribution to members and payments when they leave the cooperative). The percentages in the graph are arbitrary estimates, they vary depending on the laws in each country, and the decisions of the cooperatives agreed upon in their statutes.

Note that this graph breaks with the belief that “distributing decapitalizes”: the reinvestment fund refers to the fact that their own fund or their own “capital” grows in accordance with the percentage approved in the cooperative. The assumption in the graph is that exercising distribution in the five ways, combination of collective-community and individual distribution, builds trust and loyalty, which makes the members turn in their products to their organizations in larger amounts and with better quality; from here distribution instead allows the economic transactions of the cooperative to increase, and therefore the entirety of their funds grow; in other words, ”decreasing” (paying back or distributing) is “growing” in resources. The graph also shows the underlying reason for cooperativism, that it is not to accumulate just to accumulate capital, the cooperative is a means, and the members and their communities are the end (final objective). We break down these funds in what follows, including some important remarks.

3.1  Components of collective distribution

Let us describe those funds that are in the statutes, let us clarify and add what they can have which is unique. “Legal reserves” is to cover losses that eventually the cooperative might have during the year in the economic fiscal year; it is a financial cushion that prevents the cooperatives from going broke. In the case that there are no losses, that reserve could swell the investment fund, or, for example, cover legal paperwork expenses, the opening or updating of bank accounts, the legal defense of the cooperative in the face of lawsuits from third parties, the legal defense of the members in cases that affect the cooperative, or to have legal counsel in the face of certain situations or issues.

“Cooperative fund” or “reinvestment fund”, belongs to the cooperative. In addition, some buyers tend to increase the price of the product that they buy with a “cooperative premium” or with an “infrastructure fund”, resources that are added to the funds of the cooperative. These funds are to buy equipment that the cooperative might need, repair or enlarge the infrastructure (building, harvest collection center) of the cooperative, and/or to increase the funds of the cooperative itself, which would increase the loan portfolio, or would pre-finance the payment that the members make on receiving products, while they process and sell them – avoiding the need to seek outside credit.

“Social or educational fund”. It is a fund from the rules of the cooperative itself, and is a fund that increases if the cooperative sells its product through fair trade organizations or buyers that condition a certain amount for a social fund. In general, cooperatives use it to finance some demand of the community school, provide backpacks to the children, provide support to the local sports team, or for trainings that their education committee might organize. Even though these initiatives are praiseworthy, physical investment in the school is the obligation of the State for which society pays taxes. The sports teams are going to function with or without the support of the cooperative, the children will go to school with an old or new backpack. Some innovative cooperatives use that fund under the following criteria: invest in something that generates value for the community, that is not the role of another institution, and doing so as a long-term investment. An example of this is the fact that two or three cooperatives from the same community might invest in libraries for children under 7 years of age, story books that their families might borrow to read to them before going to sleep, promoting reading in the family itself, and that the cooperative might organize reading circles with the support of people who promote reading; the long-term impact of this initiative in the creativity and cooperative spirit of the community can be significant.

3.2  Components of individual distributions

Following graph 1, 50% of the surplus of the cooperative is distributed to its members directly. The criteria for that varies from cooperative to cooperative, and depends on the services that they offer. In some cases, it is in accordance with the contributions of each member. In other cases, it is in accordance with the volume of product transacted with the cooperatives that collect the harvest and sell the product of its members. In other cases, it is in accordance with the quantity of products bought in their cooperative. And in other cases, it depends on the amount saved in their cooperative. There are cooperatives with similar services, and that “pay back” under different criteria; for example, the peasant store Los Encinos in Honduras “pays back” 100% of the amount of the agreed upon contribution, while the Esperanza of the Campesinos Cooperative with several supermarkets, “pays back” based on the amount that each member buys from those supermarkets.

These criteria promote the capacity of each member, and increase their trust in the collectivity that the cooperative is. There are members with more financial capacity and do not necessarily have larger contributions in the cooperative; it depends on the trust that the members have in their cooperative, and on the opportunity cost that each member thinks their resources have. In this sense, the biblical parable of the talents (Mt 25: 14-30) illustrates part of what the cooperative looks to incentivize with direct distribution; in that parable three people receive talents, one 5, another 2 and another 1, “in accordance with their capacity”. After a time, the person who received 5 and the one who received 2 double theirs, and the one who received 1 maintained it. In light of this, the person who gave them the talents rewarded the first two, and took away the only talent from the third, “because he who has, will be given more, and they will have an abundance, but he who does not have, even what they have will be taken away from them.”

From the religious context, this indicates that God gives people talents in order to develop them, which reveals an individual vision, where each person is responsible for duplicating their talents. From the cooperative context, one is “paid back” in proportion to the trust and loyalty of that member, demonstrated by contributions, savings, delivery of product or amount purchased; that “payback” is not taken away from them in the cooperative, in contrast with what happens in the parable of the talents, where each individual responds individually with the talents received; instead, there is cooperation among the members mediated by commonly agreed upon rules, compliance mechanisms and there is accompaniment so that each member might increase their capacities; there is individual responsibility within the framework of collective responsibility.

3.3  Compensating by rights those who resign from the cooperative

Following cooperative statutes, the member who resigns from the cooperative has the right to the return of their extraordinary contributions, and the “reimbursement of social assets” (shareable surplus) within a term generally of 90 days. This “departure” arrangement should be thought of and agreed upon from the beginning when the cooperative is founded, even though it is clear that in the beginning, being immersed in making the cooperative survive, no one thinks about this; it should be done, because it is thinking about the future, and because each member should be clear about their rights from the very beginning[9].

In our societies the member who resigns from the cooperative tends to leave without recovering, many times, not even their contributions; likewise, those who die, their relatives do not tend to receive any benefit that by rights the family members are due. For some members, having joined a cooperative is even a financial loss. In the case that there are voices that are raised about this, some board members pull out the ghost that “distributing is decapitalizing”.

If the cooperative does not pay the member who resigns, or the relatives of those who die, in accordance with their rules and the rights of each member, the cooperative signals distrust in its own future, and sends an erroneous message that they are not members, that the “cooperative does not belong to its members”, which undermines any sense of ownership of those who stay in the cooperative, and those in the community who observe it. If in contrast, the members fulfill the rights that each members has on leaving the cooperative, that they be paid the part that corresponds to them that the cooperative has at that moment, probably that person will leave with a good amount of resources, and happy for having been a member of a coop. In the short term, this is a hard moment for the cooperative, because it is going to disburse in cash resources what it surely needs; at the same time, each member will see themselves in the person who resigns: in the same way that they treat the person who leaves, they will treat me. If the member joined the cooperative with little, and leaves with a good amount of resources, those who remain will ask themselves: if after the cooperative fails, will we be the most unlucky ones? The doubts will keep them up at night. But in the long term, those who are left are less, which means that they will receive more from the future resources that the cooperative accumulates; more than that, each member, seeing that the one who left took what corresponded to him, will confirm that in truth he is a member of the cooperative, that the cooperative really does belong to him.

Let us talk about numbers to estimate the amount that could be due to a person who resigns. What is the arrangement with the member who leaves? A member who leaves or dies, that person or their relatives have the right to part of the assets or resources that the cooperative has generated. Let us help ourselves with an example. If through the use of the “cooperative fund” or the “reinvestment fund”, extraordinary contributions of $100 per member, and donations that the cooperative received, a cooperative has assets valued at $200,000; if that cooperative had 20 members at its founding 10 years ago; then if one of them resigns from the cooperative, they are due $10,000 (200,000/20 = 10,000). This amount could be paid over a term that the statutes indicate, or, if the cooperative does not have the $10,000 available, they can arrive at friendly arrangements for the time frame for the payment.

The biggest impact of this fact, nevertheless, is not in the financial “payback”, but in the fact that the 19 remaining members, and the rest of the community, confirm that effectively the cooperative does belong to its members. This is the seed of incomparable ownership. This implies greater trust, loyalty and the deployment of individual and collective capacities.

Concluding this section, distribution in the cooperative generates equity, and incentivizes the development of each member. An estimate of 40% of the surplus protect the cooperative from losses, increases their investments or their own capital fund, and contributes to the community with unique investment in education. With an estimated 50% of the surplus, the cooperative incentivizes the development of the capacities of each member, their trust and mutual loyalty. And with an estimated 10% of the surplus, the cooperative ensures the recognition of members who leave the cooperative, far from seeing it as a “financial loss”, they recognize the rights of the cooperative member and with that plant the seed of ownership. This collective and individual outcome is the way in which the cooperative distributes its surplus with equity, which is connected to the virtuous peasant institutions of giving-receiving-paying back, expressed in shared labor, sharecropping, and shared harvesting, among other institutions.

Now that distribution with equity appears obvious, along with its importance. How can it be carried out?

4.    How to implement equitable distribution

Inequitable pay back… breaks down the organization

The Spanish, Mexicans and US tried to dominate the Apaches; they failed. The Apaches had the nant’an as their leaders, they were decentralized, operated in circles. Their adversaries, as they did with the Aztecs and the Incas, did away with the

nant’an, but the Apaches did not fall apart, immediately another nant’an would emerge. But one day the North Americans donated cattle to the nant’an; since cattle were scarce, the nant’an had the power to distribute them, so everyone wanted to be nant’an, the egalitarian power structure became hierarchical. The Apaches were defeated.

(Based in Brafman, O. and Beckstrom, R.A., 2007, The spider and the starfish. Barcelona: Empresa Activa).

This historical passage shows us that distribution is more than distribution of surplus. It is important to have holistic egalitarian structures that include equitable rules and mechanisms for carrying them out. Before continuing, we cannot avoid comparing this event of the Apaches with the action of the government in the parable at the beginning of this article; the government in the parable, and the North Americans in this other one, seek to subordinate the cooperative or the Apaches, the first donates land to them, and the second donates cattle, in both cases without “payback”, thus they undermine them before their members, leave them not looking toward their community, which causes the cooperative and the Apaches to fall apart. Militarily the Apaches were indomitable, but a simple donation eroded their entire organization, like termites on wood. How did this happen?

The Apaches lacked equitable rules for the distribution of assets donated to their leaders. The North Americans took advantage of that gap, and donated the asset that was the scarcest, cattle, directly to the nant’an and not to the Apache tribe that surely had their own organization. This practice internally stirred up the Apaches, who fought over being nant’an, for having that connection to the North Americans and accessing the cattle; surely, like the managers or presidents in conventional cooperatives, the nant’an said to their tribe that the “cattle had cost them”, that they should be content with what “trickled down”, that they were their “connections”, and that without them they would all die of hunger -or in other words, the evil of the “big headed dwarf” began to corrode the minds of the nant’an and sow distrust in the rest of the tribe. This process led them to become hierarchical structures, and consequently to collective failure; it is what has also happened to most of the conventional cooperatives.

Cooperatives, in contrast to the Apaches, have rules and mechanisms for equitably distributing the surplus (including donations), but they lack democratic processes in their functioning, which is why they do not comply with their rules for equitable distribution. In many cases the cooperatives were started by the State with donations in land or other assets, undermining them from their own beginnings. International organizations (buyers, financiers and donors) have continued on this same path. Like the North Americans with the Apaches, they only connect with the nant’an of the cooperatives (managers or presidents), and they are not interested in knowing the consequences that their actions provoke. How can cooperatives fulfill their rules and make distribution their most valuable attribute for growing equitably?

This point about the Apaches leads us to understand that a cooperative that distributes its surplus with equity is that which, in addition to having rules for it, is democratic and transparent: See Figure 3.

If the organs, in democratic exercise, ensure the fulfillment of the agreements about equitable distribution, that cooperative will embark at a good port. In the case of the Apaches, their organs operated around resisting militarily, including their food, but they lacked the rules for donations and relationships with external actors. We can imagine that the Apaches, in decentralized groups, hunted animals for food; for which they had their rules and they applied them, but not so that some nant’an individually might receive 10 head of cattle as a gift behind the backs of the tribe, even precisely for their tribe.

This combination (rules-democracy) requires, nevertheless, a third foot: transparency. It is depressing to find members who after contributing for 5, 10 or 15 years do not know how to add up their contributions, and that do not recognize their rights over the surplus. It is not just having democratic economic management coherent with the rules themselves and the rotation of members in the different offices and decision making in the corresponding organs, but informational transparency with the members and with the allies. The idea of transparency or accountability in the cooperative is not being subject to trial, measured and humiliated by “the magic of the numbers”. It is sharing information that in turn forms and commits the members. A member can understand that their surplus might be $30 per qq of coffee that they have delivered to the cooperative, if he is informed about how that surplus was produced; otherwise that person will see that surplus as “an award” or a “favor” of the patron, as his historical rules make him see it. Distributing surplus implies distributing responsibilities (democracy) and information; the way “the legal reserve”, “investment fund” and “social fund”; the expenses and income… were produced and used. This information forms people and commits them: the member, based on transparent information, will want to participate in the definition of the goals for the year for their cooperative, and will want to be part of the implementation of those goals, because he recognize that his individual surplus will increase, that the benefits to his community will improve, that if the cooperative increases its reinvestment, any member who leaves will be able to go with more resources. In addition, if the first tier cooperative is a member of a second tier cooperative, the member also needs to be informed about the second tier cooperative, know how surplus is generated in that organization, and how much is due his cooperative, and how much of that amount is due each member. That explanation can happen in an assembly, in visits to each member family, on whiteboards or through brochures, and on the day of the distribution of surplus, combine festivities and information.

Correspondingly, transparency implies being accountable; for example, it is commendable that the credit record include columns for the amount of credit, amount past due and contributions; it is also commendable that the record include the amount that the member is leaving for “legal reserves”, “social fund” and for the “reinvestment fund”; the first format for the record contains control information for the member, and the second format has the accounting of the cooperative to its members. Being accountable in the assembly about their resources expresses the rights of each member, and it is an obligation of the cooperative that each member know that. From here, if the members are informed about each step of their cooperative, they will be committed to their cooperative, if their cooperative faces difficulties, they will sweat the fear of failing and will row the canoe together even in the midst of the biggest waves.

Equitable distribution is possible within a framework of democracy and transparency. There, being a cooperative member is thinking beyond salary, beyond raw materials and beyond exported product; it is thinking about the entirety of the cooperative, and the entirety of the chain of actors where value is created. In other words, it is breaking down the walls of Figure 2 and understanding that what creates value is the human work of the working person, producer, processer, importer, roaster and seller of the coffee in the stores and coffee shops. It is “I touch you and you touch me”, entering into different worlds. This implies including the international organizations and companies, which goes in the direction of global triangulation that we worked on in several other articles, about an alliance of actors that work for equitable distribution.

5.    Conclusions

You read a book from beginning to end. You lead a business just the opposite way. You start with the end, then you do what you have to in order to achieve it.

Harold Geneen, 1984, Managing. New York: Double-day

At the beginning of the article we asked ourselves how cooperatives can distribute (“pay back”) in order to grow with equity. Equitable distribution in a renovated cooperative is very different from the distribution of the market in the neoliberal economy, which is one unilateral way, from society to businesses and institutions, from which there is no “pay back” beyond what “trickles down”.

In the renovated cooperative, and in alliance with global actors, equitable distribution is illustrated in Figure 4.

It is the distribution of surplus combining the collective (social fund, reinvestment fund, and legal reserves) and the individual (direct distribution to the member for their differentiating actions and payment of what by right is due the member who leaves); it is financial and social distribution. Then, equitable distribution implies that the organization be democratic (rotation of officers, collegial decisions and compliance with the rules). Then equitable distribution implies distributing information under the maxim that the more informed the members are, the better their decisions will be.

This notion of equitable financial, social and political distribution (democratic and transparent), mobilize energies and hearts when it is connected to the endogenous institutions of the members, in our case, the peasantry. Consequently, each member feels part of the cooperative, seeks to know its goals, have an impact on them and commit themselves to fulfilling them.

Finally, when the members and their global allies follow equitable distribution connected to endogenous institutions, that is when they see the entirety of the cooperative and the entirety of the value-added chain with equity. Far away are left the “walls” that separated the worlds. Paraphrasing Harold Geneen, we organize a cooperative from its end, from its equitable distribution to the benefit of the members and their local and global communities. The more that is distributed, the more that it grows.

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

[2] Mauss (1979: 204-211), based on a type of distribution known as potlach, practiced in Eskimo societies in the Northwest of the US, finds the triple obligation of the gift culture: giving, receiving and paying back. “You do not have the rights to reject a gift, a potlack, because acting in this way makes clear that you are afraid to have to pay back and be left diminished, it is losing the “importance” of your name, it is declaring oneself beaten in advance, or in some cases proclaiming oneself victor or invincible” (p. 208). Marcel Mauss, 1979, Ensayo sobre los Dones. Motivo y forma de cambio en las sociedades primitivas, en: Sociología y Antropología, Madrid. Note that this identified institution is pretty similar to institutions of indigenous communities in Latin America.

[3] Polanyi, K., 1976, El sistema económico como proceso institucionalizado, en: Antropología y Economía (ed. Godelier, M.), Barcelona pp. 155-178

[4] Santana, M.E., 2014, “Reciprocidad y Redistribución en una Economía Solidaria” in: Ars & Humanitas 8/1. Slovenia.

[5] Surpluses result from deducting costs and expenses of the cooperative, amortization (value for deterioration of fixed assets). In associative organizations the term “profits” is used more, which is pretty similar to “surpluses”. The term “earnings” is different, there could be earnings through a discount if a product is sold above its acquisition price.

[6] W. Berrios, from the CAFOD aid agency, refers to the fact that some aid agencies linked to churches in Europe tend to withdraw their support for organizations that in theory assume the social and solidarity economy approach, but in practice do not follow it, and that instead become part of conventional mediation.

[7] Several buyer companies left Fair Trade on realizing that their premium payments were not getting to the member families, so they formed another movement called direct trade, to get around “cooperative mediation”. There are also European enterprises and cooperatives that buy coffee or cacao in Central America and want the cooperative that they work with to distribute their surpluses; correspondingly, some of them avoid the second-tier cooperatives and prefer buying directly from the first-tier cooperatives.

[8] Polanyi, K., 2001, The Great Transformation: The Political and Economic Origins of Our Time. Second Edition. Google Books. (First publication in English in 1957).

[9] See: Jack Stack, 2002, A Stake in the Outcome, New York: Doubleday. Stack, along with other workers, founded an innovative enterprise in the United States. In this book he recounts how they struggled with this issue from the beginning of their company. If they did it as a company, how much more should a cooperative!

The Principle of Stewardship in Cooperatives

The Principle of Stewardship in Cooperatives

René Mendoza Vidaurre[1]

I dedicate this article to my daughter Itza Irene and my sons Jaren and Inti Gabriel.

 

Planting a cooperative

A cooperative was attacked from outside and inside; it went broke. Its administrative council called the last assembly where they provided an accounting of each cent of the cooperative, the motorcycle, the computer, the desks, the portfolio of debts…

Given that their own sons and daughters and other youth from the community formed a new cooperative, the assembly agreed to donate all their resources to them: “We started with 10,000 córdobas and we worked 20 years, receive these 300,000 córdobas and let them serve our community at least 30 times more than us”, they said. Along the paths and creeks the rumor of the people was left etched in the stones: “The president, the Vice President, all left with a clean slate”, “humble and honest they started, humble and honest they left”. And more helpful”, shouted an elderly woman.

The 10,000 or 200,000 was not as important as the humility, honesty and service.

Is this what it means to be a cooperative member? Asked the granddaughter of the president. “In part, daughter, in part”, responded her mother as she gave her a hug.

The graveyard for cooperatives is sizable, larger in some countries than in others, generally because their members forget that the cooperative is a mean for a larger objective, their community. They do not follow their own agreements. Some of their board members “get big heads”, stay in their posts under “death do they part”, and others take over the resources that belong to all the members of the cooperative. In this way the collective effort turns into “damned money” that is served mouth to mouth in bars, and this type of cooperative, like a vine that climbs into the branches of lemon, tangerine and orange trees, choking them off and preventing them from bearing fruit, chokes off the communities where their members come from.

The parable reveals a different prospect, where even death, a good death, can generate life. Sporadically we know how to find some cooperatives that, even going broke, plant the future: they leave good footprints in women and men who were their members. This footprint is like the collective effort of 300,000 córdobas that the cooperative did not split up into pieces, nor let some few appropriate them, as happens with most peasant families who are always dividing up their land into pieces. Those members, in assembly, agreed to give it to the new cooperative that was starting, and committed it to return to the community “30 times more”. Behind this collective effort are values like humility and honesty that guide their steps, and what the cooperative cultivated and the elderly woman observed: service. Behind these values and that sense of service is the vision of a cooperative as a means (instrument) of living communities, that is the horizon in which that inheritance of values and resources become very important, but let us notice, just “partly”, as the mother points out to her daughter.

Those of us who also share these perspectives and support these processes in rural communities tend to be asked by rural families, with some incredulity, why do you come in to support us? What interest do you have in us when not even presidents of cooperatives nor mayors visit us? Even though in our mind it is that “part” of being cooperatives that the stones whisper “along the paths and creeks”, sometimes we have responded recounting the experience of the Catholic Church between 1958 and 1978, within the framework of its social doctrine, that opened the doors of their churches and monasteries and allowed for decades of religious and laity to accompany impoverished families in their communities; that experience allowed believing that God was living in these impoverished families, a seed of service and commitment that has germinated in hundreds of people.[2]. Other times we have responded alluding to the fact that each person has a sense of service, and that each person deploys that service in a thousand ways in the places where they live.

In this article we show the idea of stewardship as a more thought out response to the questions that they tend to ask us. Stewardship is a perspective that gives more meaning to cooperativism and that adds another additional “part” about what the mother saw and the daughter heard in the parable. We do so basing ourselves on something from the indigenous, religious and business traditions, to then conceive of the cooperative as a rooted organization that could take on stewardship in their communities. At the end of the article we re-conceptualize this idea of stewardship as the greatest motor and the most intense light of humanity.

1.     Seventh generation thinking

 “Now we crown you with the sacred emblem of buck antlers, the emblem of your lordship. Now you will become a mentor of the people of the Five Nations. The thickness of your skin will be seven tranches, in other words you will be a test against anger, offensive actions and criticism. […] Look and listen to the wellbeing of all the people, and always have present in mind not only the present but also the coming generations, even those whose faces are still below the surface of the earth, the future nation that has not yet been born.”

(Law of the Iroquois nation written between 1142 and 1500)

A Confederation of five Iroquois nations in the United States wrote their law between the years 1141 and 1500, that started seventh generation thinking. It is a principle of innovative stewardship, conceived and taken on prior to the Spanish colonization in Latin America, and before the British colonization in the United States. The principle suggests that in each deliberation its impact up to the seventh coming generation should be taken into account, that is, thinking about the great-great grandchildren of our great-great grandchildren. In other words, when we deliberate, make decisions and take actions we should ask ourselves: “Where is the seventh generation in these decisions? Where are we going to take that generation? What are they going to have?”[3] Imagine if you were an Iroquois, let us say  centuries ago, when the climate was relatively stable, your people were connected to nature, living certainly with conflicts between nations, you had that thought to the seventh generation. Meanwhile now, in the current conditions of climate and degraded nature, we realize clearly that we have abandoned that thinking. In spite of that, this thought challenges and guides us. Correspondingly, the decisions that we make today on the environment, water, energy, social relations between indigenous and non-indigenous people, the relations between women and men, or about the life of the communities, are going to have an impact on the lives of coming generations, up to the seventh, which is a nation of people who have yet to be born. It is a matter of living and working for the benefit of that future seventh generation; that really is thinking long term!

There are two ways of understanding this principle. The first way, if each generation differs from the previous one by 20 years, the seventh generation is in 140 years, which is why we should think about 140 years in our deliberations and decisions: see Figure 1.

The second way is varying the thinking about the seventh generation, and expanding the period in years in which a person is touched (influenced, awoken[4]) in their lives by their great-great grandfather/grandmother, who in turn was touched by their great-great grandfather/grandmother[5]. In other words, we place ourselves in a 360 year period and from there, looking 180 years backward (7 generations) and 180 years forward (7 generations), we can understand our roots and plant our future: see Figure 2[6].

When from our peasant realities we look at the questions asked within the framework of the seventh generation, they seem very hard. Following the first perspective, most peasant families are reducing their land area by inheritance and the sale of land, this means that the seventh generation will be left without land, and with a relationship divorced from nature, for example. Given the graveyard for cooperatives and those cooperatives taken over by elites, what cooperative are we leaving for the seventh generation?

Following the second perspective, this very reality of the division of land is demonstrated by looking at the 180 years since our mothers/fathers and grandmothers/grandfathers, and so we question ourselves looking at the the next 180 years: How can we stop this dividing up? What are we leaving the great-great grandchildren of our great-great grandchildren? We can respond to these questions in each family and community, or we can respond to them alluding to current issues like climate change, water…we can also see them from the history of our countries with a historical perspective, issues or challenges like peace and indigenous and non-indigenous social relations. For the case of Nicaragua, Oscar René Várgas (1999)[7] argues, based on an event that happened in the XVI Century, more than 400 years ago, that Nicaragua is a prisoner of the syndrome of authoritarianism and disregard for law; Alejandro Bendaña (2019)[8] presents to us the invisibility and margination of women by historians and the guerrilla leaders themselves in the war of Sandino between 1926 and 1934, something that in light of our current realities appears not to have changed. In that 400-year view and 100-year view, it frightens us to confirm that authoritarianism (hierarchical structures) and gender inequality, both accompanied by violence, changed so much as to not change “even a little”. We find the same thing in each country[9]. It would seem that each generation that has gone by has not been able to leave not even a little change that might benefit the seventh generation, it would seem that each generation intensifies those old and harmful institutions.

The notion of stewardship, from the Iroquois indigenous tradition, begins to move us. It makes us think about the change of any “syndrome”.

2.     Stewardship in the biblical tradition

The Catholic and Evangelical religions, professed by most of the population in Latin America, have the notion of stewardship in the Bible, which can be understood in two ways. The first way is God as the creator of the earth, where people are his administrators (stewards). Paul explains it this way: “Because we are collaborators with God, and you are the work of God, God´s edifice” (1 Cor 3:9). Stewardship is oikonomos: the person who administers. The second perspective is that people, women and men, are co-creators with God: if previously they had to multiply as the creation of God, in the new testament women and men are co-creators: “Go and make disciples of all peoples” (Mt 28:19).

The first perspective assumes that the patrón (owner) of all is God, and that tends to justify “each one of the verticalisms on earth”, warns the ex-Jesuit priest, Peter Marchetti. Correspondingly, Marchetti continues, “at the level of subjectivity, it is up to the grassroots to begin to work on the concept of God”. The second perspective as “co-creators” is a more horizontal perspective, even though the subordinated relationship of nature to human being persists. Marchetti counsels us: “The challenge is recovering traditional ecological knowledge that existed prior to the idea of God the patrón; the path is emulating traditional knowledge to be able to dismantle the idea of God the patrón.” Correspondingly, the Iroquois seventh generation thinking, for example, is very useful for us, because it comes precisely from prior to the Spanish and English colonization, where we could say that the “patrón” is the seventh generation.

From both sections, our challenge is “working on the subjectivity at the same time as the materiality”. The latter is, for example, the democratization of organizations and their economies, while the subjectivity is working on attitudes. Among these attitudes is dialoguing with the biblical perspectives of God as “creator” (patrón) of everything and humans as co-creators, as well as dialoguing with our great-great grandfathers and grandmothers, and at the same time thinking about the impact of our actions on – or dialoguing with – the great-great grandchildren of our great -great grandchildren. Here are the first brushstrokes about what stewardship is, which combines subjectivity and materiality, begins to dialogue with other perspectives, generations and with the attitude itself to free ourselves from the “patróns”, not matter what they may be. Now let us look at how businesses address and take on stewardship, to later focus on cooperatives.

3.     Stewardship in businesses

In the past the church and the military caste dominated the world. 30 years ago the private sector dominated the world. Common interest, the State, education, the church, health care, the army are all read from the perspective of business; for example, each one of these areas or institutions are measured by their efficiency, costs, and their power relationships defined as technical things, that can be resolved through social engineering, through management. It is recognized that businesses create jobs, that they fight against racism, assume actions compatible with environmental sustainability and “social responsibility.” Business people who achieve financial success are admired as true heroes, and are named as directors of health care, education, churches or presidents of countries, like war heroes or religious martyrs used to be venerated, no matter what side they were on.

We identify two perspectives in these enterprises. In the first perspective are most of the large corporations, who prioritize their profits, dividends (% of profits) for their shareholders, while they are desperate to produce wealth today, and satisfy consumer society; this is short term thinking that produces short term results. There are few corporations in the second perspective, they are, for example, investors in pension and insurance funds, businesses that innovate, invest in the formation of their staff and get involved in profitable recycling actions instead of dumping it in spaces of poor countries; they look to develop long term thinking (MacNamara, 2004[10]). Nevertheless, business organizations, like the churches and military structures in past centuries, intensify those millennial authoritarian, patriarchal and hierarchical structures that concentrate wealth and power. It changed so much in order to not change much at all.

Recognizing these hard institutions, and at the same time seeing the potential of companies, Block (2013)[11] proposes the notion of stewardship as

An alternative to leadership. Stewardship asks us to be profoundly responsible for the results of an institution, without forcing the purpose of others to be defined, controlling them or overprotecting the rest. It can be defined more simply as ordering the dispersion of power.

Block defines stewardship as the change in the governance of businesses, that distribute power, privileges and wealth in favor of the people below and people marginalized in the businesses. Stewardship as “alternative to leadership” conceived as hierarchical and patriarchal, that does not subdue nor treat others as “minors” (“overprotected”); more than directing organizations, it is cultivating organizations, more than controlling and deciding for others, it is facilitating so that people might be empowered – controlling is accepting “the dispersion of power”; facilitating is democratizing (ordering) power. Stewardship is seen as an option of action at the service of those with little power and for the common good, it is long term thinking. This is taking care of the wellbeing of the next generation. How can this idea of stewardship be carried out? Block thinks that it is difficult to carry out with the dominant patriarchal leadership of our times, in the service of the short term and being operational with those few who have power.

Block provides the elements that characterize a real stewardship, whose notion we try to draw in Figure 3.

Stewardship has to do with a partnership of working together in democracy, which is opposed to the colonial belief that those above are the only ones responsible for the success of the organization and the wellbeing of the members. It is a matter of empowering each member of the enterprise, where it is assumed that their security and freedom is in their own hands, contrary to depending on those above, believing that they know what the rest of the people need, and contrary to the fact that they treat people as subordinated children. And it is a matter of service, that is committed to their organization and their community without expecting anything in exchange, cares for the common good and creates community, and distributes power and wealth, because it assumes a commitment for something beyond oneself, contrary to looking out for ones own interest at the cost of others.

In this notion of stewardship, of working together, in partnership, empowered and in service, underlies the idea that our life is brief, “we are on borrowed time”, as rural populations say, and our work in any organization or area is even briefer, which is why we want to turn over any task that we have taken on in the past in a more advanced stage. In this sense, let us remember the parable of the talents (Mt 25. 14-30), that we should multiply the talent received; this challenge becomes difficult in the case of peasant families, for whom if that talent was the land that they received from their parents as inheritance, after some 30-40 years that land would have to be more fertile and not “worn out” (less fertile, eroded soils) – something very difficult, while for enterprises, the land conceived as something that produces only based on agrochemicals, it is impossible for them to turn over land in 30 or 40 years with more fertile soils.

Bringing  those questions about the seventh generation here, we would say: How can businesses be built in partnership, that empower and are of service to the seventh generation? How can the land be worked so that it might benefit the great-great grandchildren of our great-great grandchildren? If the land is the mother of any product and any life, can businesses be built of any size with long term thinking, which would be watchful over its social and environmental impact and the elements of stewardship that Block advocates? Paraphrasing Jesus of Nazareth, probably it is easier for a camel to pass through the eye of a needle, than C-Corporations to assume this role of stewardship that Block proposes. Nevertheless, from the world of corporations there are good attempts; B-corporations[12], founded in 2006 and by the end of 2018 totaled 2500 in 50 countries around the world, could meet what Block proposes; B-corporations are certified for having good governance, transparency and good social and environmental impact. Also businesses whose workers become owners, governed by the ESOP law in some countries[13], could be taking on Block´s stewardship, particularly those that function under the approach of “open book management”[14], because they cultivate a culture of ownership (of being owners) for long term success.

4.     Stewardship in cooperatives

B- corporations and ESOP enterprises with “open book management” could be exercising a role of stewardship. But the most suitable seem to be cooperatives, and even more so, if they bring together people with few resources. The problems is that most cooperatives also are an expression of hierarchical structures, like C-corporations, and are more and more moved by the short term thinking of the god of the market. Recognizing this fact, we argue that a renovated cooperative, that “is born again”, can be a serious option. To assume this role of stewardship, the cooperative must take up the ideas of Block and impress on it their own historical essence, because it is with renovated cooperatives that the ideas of Block could have greater possibilities of being carried out. See Figure 4.

We reread Block from the perspective of a renovated cooperative: in partnership we understand that people from different ages (grandparents, offspring, grandchildren), sexes and social sectors (e.g. workers) participate in a cooperative; that the cooperative is a space where each person is empowered in horizontal and vertical agricultural and non-agricultural diversity, using the market and not subordinated to it; and that the members cultivate a sense of voluntary service coherent with the idea of co-creation in dialogue with nature. Given this interpretation, the type of renovated cooperative is one that walks with both of its “feet”, the associative and the business one, is distinguished by its democracy, transparency and for distributing its profits (wealth). With these elements the members, and also their allies, make their own values and cooperative values their own, more and more intensely illuminated by a long-term perspective, and deliberately seeking to have an impact on – and dialogue with – its seventh generation.

This is the perspective of stewardship which a reborn cooperative implements, which pushes it to reorganize itself systematically as an alternative to despotic, hierarchical and patriarchal leadership. This is the promise that each member makes to the other members and to themselves from the first day in which they join a cooperative, which in turn, bears the potential of significant self-realization, which frequently is lacking in our organizations.

Correspondingly, how can a cooperative be reorganized from a role of stewardship? How can a cooperative member be a steward? First, a member accepts an office conceiving it as a service, serving other people, it is not to serve oneself at the cost of the other people. The office responds to the mandate of the members, which is why this service implies willingness and availability, being a person who does not have time, and always has time to serve other people, who listens and helps them to connect events and ideas, so that the members resolve their problems and/or take advantage of opportunities. Coherently, a person who occupies the office of president fulfills their role of president, and respects the role of each member of the Administrative Council and respects the functions of organs of the cooperative (Administrative Council, Oversight Board, Education Committee, Credit Committee). The same does the vice president, treasurer, secretary. Likewise, each member of the Oversight Board, the credit committee, the education committee. In addition to taking on their own role and respecting the other roles, these member help other people to exercise their offices; if the secretary has difficulties in writing the minutes, or the treasurer doing their financial report, the people from other offices, or those who already had those offices, support them (facilitates or trains them), so that they might lean to do the minutes and the financial report, but without taking their place. The assembly does not name people to posts to just to fill a post, nor out of formality, but it is a real need.

Promoting the culture of stewardship is going against the current of the culture of most of our rural organizations, where a person tends to believe they are the patrón and God, it is like a person walked around with 10 hats on their head at the same time, the hat of president, secretary, treasurer, oversight board, assembly, education committee, credit committee…That is not possible, right? That is what generally happens. One of the consequences of this fact is that that person believes himself to be the owner of the cooperative, and treats the members as their “minors”, does not let them grow, wants them to serve him, be subject to him; he disempowers them. “My poor patron, he thinks that the poor person is me” goes the song of Cabral, that seems applicable to this type of person with multiple hats, and who does not obey the mandate of his assembly. A president or manager with the commitment of stewardship is completely different: he supports and celebrates the work of the oversight board, administrative council, credit committee, because those structures help him to fulfill the sacred responsibility of co-creating the cooperative to the benefit of their communities, to redistribute power and surpluses, to empower the members so that they might take their own steps.

Secondly, a cooperative member, with or without an office, administers in a responsible way – and generates – financial resources (money), physical resources (building, infrastructure, assets) and productive resources (coffee, cacao, beans, bananas…) for the members. There is an awareness that those resources will last beyond our present lives. No one individually appropriates them under the pretext that “it is my effort”. Everyone cultivates the relationships of their organization with other global and local actors (financiers, buyers, accompaniers), without centralizing those contacts for their own exclusive benefit. Each person is accountable to themselves, their families, the cooperative and their community. It makes them think about co-creating and benefiting their community and the seventh generation, a task for which they are guided by the virtuous rules from the time of the great great grandparents of their great great grandparents, and in accordance with agreements and rules of their cooperative in line with the cooperative principles defined 175 years ago, in 1844, by 28 working artesans in cotton factories in the city of Rochdale, England. Correspondingly, any loan of money to a member, for example, is done from the appropriate body, according to agreements, with a receipt and later accountability  to the assembly; the board members understand that they cannot make and use the resources of other at their own discretion, that there are organs and rules under which the resources, information and power relations flow. This very specific exercise can be generalized to other levels, including the country, building citizens with rights and obligations, not so much consumer societies.

Third, support to people to exercise their offices, and the fact that there are rules and structures that guide being cooperative members, implies also that the members be committed to learning and changing. If there is no transformation inside each member, if there is no re-evaluation of our desires, yearnings and expectations as far as we are explicit about the harmful and virtuous rules that govern us, any structural change for the operations of our cooperatives will be like a stripped bolt. In fact, in Central America we have experienced dictatorships and revolutions, a boom of organizations and religions, and all those changes have been like stripped bolts, our lives continue being guided by century-old structures and harmful rules that reproduce social, environmental and gender inequalities, which make us see the cooperative as “a thing of men”, “mono-cropping services” and “hierarchical and authoritarian bodies.”

Joining a cooperative means that we have chosen and accepted that relationship of organizational and personal transformation to energize our communities. The choice and acceptance become our contract. Our desires for financial gain, participation, self-expression and the expectations that we have for being part of a community, are only possible if we are committed to the objectives, results, limitations and principles of the organization in general. The agreement on the elements of the contract is the basis for the association and the basis of the community. Stewardship offers more options and local control, in exchange for that promise of commitment on the part of its members, a promise that should be given from the very beginning (Block, 2013).

With these three elements the cooperative can “be born again” and assume its role of stewardship in light of its community, which is as local as it is global. Forming its own membership, generating collective innovations, working on equitable rules, adding value to the products of the community, producing good land…to benefit the seventh generation.

5.     Conclusion

The Church dominated the world for centuries. The military as well. For half a century, businesses have dominated the world. Century after century the land and the relationships between human groups seem to have deteriorated, currently we find ourselves in an inflection point in terms of the future of the earth; the domination of the private sector – the god of the market – intensified it. Our bet is that the decade of 2020 the community might begin, through its forms of cooperative organization, not to dominate the world, but contribute to the democratization of the world, and that we rethink nature not as something subordinated to homo sapiens, not even in a relationship humans-nature, but homo sapiens as part of nature. This is possible if the communities, through their cooperatives, and other organizational expressions, take on the role of stewardship.

In this article we have reviewed the idea of stewardship from the indigenous tradition, religious tradition and from economic business sciences, in order to re-conceptualize cooperatives. From this review and re-conceptualization, we understand that stewardship can be applied to individuals, businesses, organizations, institutions and communities. Stewardship is the word that summarizes the vision of the cooperative, and any organization, for its members. That is so if the community is the starting point, while at the same time the horizon – that community as local as it is global. It makes us learn another way of understanding and organizing life. What is the idea of stewardship that we have been shaping in this article?

Figure 5 shows the perspective of the community that rereads the cooperative in its material expression (organizational) and its subjective expression (personal), from which originate 4 elements that make the meaning of stewardship visible.

The community of human beings and nature is something living, geographically concentrated and at the same time globally clustered through dense relationships around products. This utopia or horizon makes us reread the transformation of a cooperative in its material expression, organizational change, and in its subjective expression, individual change. In other words, a person awakens, for example, to the fact that only through collective actions can some problems be resolved, like hierarchical and authoritarian structures; it is that material-subjective combination that mobilizes the cooperative in its role of stewardship, expressed in its 4 elements. First element, thinking about the great-great grandchildren of our great-great grandchildren, in other words, more than 140 years, which is contrary to the short term thinking or the mining and push button culture, of wanting to earn money immediately believing that tomorrow everything could change. Second element, co-creating that world along with other people, with nature and with divine energies beyond our human comprehension, empowering particularly impoverished people, which is contrary to believing oneself to be the patrón (owners of this world), intensifying social and environmental inequality. Third element, cultivating a spirit of voluntary service, taking on offices and cultivating the cooperative, which in the long term benefits each individual, which is contrary to abusing the cooperatives for personal profit at the cost of coming generations. Fourth element, being guided by human values like humility, honesty and respect for the collective good, which is contrary to just betting on finances.

With this reconceptualization of stewardship, we can reorganize the cooperative in another way. We can even expand on the Iroquois law; that each person have “skin as thick as the bark of a pine tree” to confront not only “anger, offensive actions and criticisms”, but to exercise a stewardship that benefits “the future nation that has not yet been born.”

In the parable, “planting a cooperative, the daughter “reads” being a cooperative is about that collective force, values and sense of mission, while her mother recognizes that precisely is what it means to be a cooperative member, even though just “in part”. With the expansion of the framework that we have worked on, the reader can read this article again and contribute “30 times more” to the effectiveness of their decisions and actions. Even so, in light of the seventh generation, that contribution to the notion of stewardship, surely, will continue being “in part”.

[1] René has a PhD in development studies, is an associate researcher of the IOB-Antwerp University (Belgium), collaborator of the Winds of Peace Foundation (WPF) and a member of the cooperative COSERPROSS RL. rmvidaurre@gmail.com  I am grateful to Steve Sheppard and Mark Lester, president and director of  WPF, respectively, for the inspiration and ideas that they have offered us in the work with cooperatives, and particularly in regards to a very brief first text on this topic, published at the end of 2019.

[2] We recount the experience of the Catholic Church, but the same happened with a good number of protestant churches, particularly the historic ones- Presbyterians, Methodists, Baptists, Lutherans. Also, university students in those years, without necessarily professing any religious faith, also moved to the countryside and marginal neighborhoods. It is also the experience of many people who later on were connected to guerrilla movements.

[3] These questions we adapted from the questions that Oren Lyons, chief of the Onondaga nation, formulated and are quoted in “An Iroquois Perspective”, in: Vecsey, C. and Venables, RW (Eds), 1982, American Indian Environments: Ecological Issues in Native American History. Vol. 46.4. New York: Syracuse University Press. p. 173, 174. For a broader understanding of the indigenous culture in the United States and their lessons for today, see: Kathleen E. Allen, 2018, Leading from the Roots: Nature Inspired Leadership Lessons for Today’s World, USA: Morgan James Publishing.

[4] “Touched” is when a person feels gratitude for something good that someone did for that person. In the context in which we are using it, by “touched” we mean when your great-great grandmother or grandfather made you look at your life in a different way, or something fundamental in your life, that marked you in your feelings or perspectives for the rest of your life. What is yours for the future, the possibility that you, on becoming a great-great grandfather, might influence (“touch”) the lives of your great-great grandchildren, which is possible because you had the possibility of learning about life for nearly a century.

[5] This variation in interpretation is found in “seven generation sustainability” (https://en.wikipedia.org/wiki/Seven_generation_sustainability)

[6] There have also been methodological proposals based on seventh generation thinking. One of them is the alternative proposal to the logical framework, a planning tool that organizations tend to use. See: Kathleen Allen, 2018, “Seventh Generation Thinking – A Replacement for SWOT”, https://kathleenallen.net/seventh-generation-thinking-a-replacement-for-swot/ It deals with locating ourselves in the fourth generation and from them gathering lessons from the three previous generations and using them as information for our future decisions that would include the next three generations. This can be done as an organization, particularly if there are people from 3 generations within its membership; they can be worked on in groups.

[7] Vargas, O.R., 1999, El Síndrome de Pedrarías. Managua: Centro de Estudios de la Realidad Nacional.

[8] Bendaña, A., 2019, Buenas al Pleito, Mujeres en la rebelión de Sandino. Managua: Anama ediciones.

[9] For example, Goodwyn (1978,  The Populist Moment,  New York: Oxford University Press) studied the rural populist movement that occurred between 1870 and 1910, about a peasantry that organized into cooperatives in such a way that they founded their own political party and came close to an electoral victory, but which the political and economic elites coopted and subsumed until crushing them. Goodwyn concludes that that democratic process in the United States was the last opportunity for the US nation to democratize.

[10]Doug MacNamara, 2004, Stewardship, in: Leadership Acumen http://www.banffexeclead.com/iitl/PDF/LeadershipAcumenStewardship.pdf

[11] Block, P., 2013, Stewardship: Choosing Service Over Self-interest. California: Berrett-Koehler Publishers, Inc. 2da edición https://www.bkconnection.com/static/Stewardship_2nd_EXCERPT.pdf

[12] See: Yale Center for Business and the Environment, Just Good Business: An Investor’s Guide to B Corps https://cbey.yale.edu/sites/default/files/2019-09/Just_Good_Business_An_Investors_Guide_to_B_Corps_March_2018_0.pdf

[13] Owners can sell their businesses to their own workers, there is a law in the US and England to facilitate this. In the United States it is called Employee Stock Ownership Plan (ESOP), and in England there are two types, the incentive plan and the savings plan. There are also ESOPs in India.

[14] Jack Stack and a group of workers bought the business of Springfield ReManufacturing Corporation in the 1980s. More than being successful, they designed a transparent form to govern and work the business, which they called “open book management”. See: Stack, J and Burlingham, B., 2002, A Stake in the Outcome, New York: Doubleday.

Not tripping over the same stone

Not tripping over the same stone

by Fabiola Zeledón, Freddy Pérez, Claudio Hernández, Hulda Miranda, Rebeca Espinoza and René Mendoza

Juan, president of the cooperative, got off the bus, and walked like a rooster, with his chest held high.

-Greetings, young lady. I am the president of the cooperative

-Good day, Juan.

-Call me “Mr Juan”. I was born a leader. I am the way, the truth and the money, hahaha.

-Ahh… Who said that…?

Didn´t you hear me…? Tell your Dad to send his contributions. I will give him a loan.

A sparrow that was flying around the area, seeing that was happening, crashed against a tree. The bird couldn´t believe what it was hearing!

When at last there was a restructuring of the organs and administration of a cooperative, winds of change were felt. Among other reasons, the cooperative was founded to be a democratic space and a place for learning for the members. Nevertheless, a short time after the changes, the cooperative tends to return to its old course: hierarchical structure, absence of information, disillusioned members, lack of ownership… How things change so as to not change. Why do we trip over the same stone time and time again? Here, in contrast to the sparrow, we reflect on what is happening. Then we add a second question: How can we avoid this stone and walk along the cooperative path without “crashing” into the first tree? In this article we reflect on these questions based on our own experience of recovering a cooperative.

1.     That tripping stone

In Chapter 12 to 16 of the Book of Revelation in the Bible, John, from the island of Patmos, warns about the first beast that shows itself to be powerful. But he warns us that its power comes from another beast, that we should not get confused. That second beast also is powerful, but its power is not its own either, but comes from a third beast. Something similar happens in a good number of cooperatives. See Figure 1.

The manager or president personified in a person tends to appear as the patron. He says: “Aid organizations only write to me”; “I am going to give the members directions because you are like children”; “I give you loans”; “You owe me”. The members resign themselves: “to whatever he says”; “we are small producers”; “I go to him for loans”. The leader or patron who centralizes decisions and concentrates resources, ends up believing that there is no need for assemblies, that he was born a leader and that is sacred. If some institution sees that that cooperative is like a hacienda, the patron shouts to the four winds about “autonomy” and against “third party [outside] actors”. He believes himself to be the general assembly, oversight board, administrative council and manager all rolled into one. The members dream of one day becoming that patron; Fanon said that then in Algeria: “The oppressed dream about being the oppressor”.

But his power is not his own. He or she is the face, generally, of a group that is as global as it is local, who live off the control of the resources that revolve around the cooperative. These include buyers, certifiers, agro-industry, State institutions, financial organizations…Behind these acronyms are individuals who manipulate their own organizations. They say: “information confuses the members”; “Buy coffee or cacao in the street and pass it off organic”. The patron senses that he lacks power, that his power comes from that group, so he goes to church and there whispers to himself: “I am not a bad person, I was tempted by money”.

The power of this group is not its own either. It comes from the patron-fieldhand structure, wedded to capitalism. This structure says: “everything is possible with money”; “more volume, more earnings”; “everything has already been studied”; “even God does not like stupid people”. Any natural force or wealth, economic wealth and friends of the member families remain diluted in the face of this structure.

Now we are able to understand how it is that we trip over the same stone. The saying goes: “human beings are the only animal that trips twice over the same stone”. We started a cooperative, and it is trapped by this harmful group, and this group responds to that hacienda and capitalist structure. If our patron is removed from his post, the new president or administrator takes his place, they make him repeat [his term] and keep him as an errand boy, while they make him believe that he is the top honcho! What happened? That structure awaits the new president or administrator as the “spare tire”, once he arrives, they exchange him for the “flat tire”, while the “vehicle” keeps rolling on. So it is that time and time again we trip over the same stone.

2.     Walking on the cooperative path

There were elections in the Reynerio Tijerino cooperative. The members were happy.

-Luis Javier Vargas, a member, quoting the Bible, exclaimed: “When the just rule, the people are happy”

-the recently named president, Justo Rufino Espinoza, responded: “Let´s not be overconfident”.

It was a moment of joy, heart, reason and consciousness.

A hummingbird that was flying by, began to sing of joy.

When we began to get tired of tripping, discovering those three “beasts” woke us up. We refused to be that patron, that “spare tire”. The brief conversation between Luis Javier and Justo Rufino reveals that individual and collective combination, between emotion and reason, between hope and reality. A person makes themselves just, they are not born just. “In an open treasure, even the most just sins”, says an old saying, that is why the new president warned: “Let´s not be overconfident”. In other words, the cooperative has to create mechanisms to build trust and produce justice. How can it do so? Here we list some mechanisms.

The first is preparing for each activity. This means studying each situation and reflecting on the notes that we have taken of past conversations and meetings. Claudio Hernández says: “I have been taking notes for years, I can lose anything in my house, but not my notes”. Freddy Pérez adds: “If I would have known that my notes were important for learning, I would have taken notes sooner”. On the basis of notes and other information, we prepare ourselves for each meeting, negotiation and activity – imagining each detail before doing things. In this way we overcome the old practice of the patron, of doing things impulsively, because you feel safe under the shadow of the second beast, we overcome relying on the patron who says “leave it to me, I will solve it”. The more we prepare ourselves and coordinate as a group, the more our confidence increases and the more we help the cooperative.

The second mechanism is realizing that in the cooperative people have the power that comes from interpreting and applying the rules of the cooperative. These rules are the result of the decisions of the Assembly, wedded to the values of our communities. Our patron are the legitimate rules and processes. We guide ourselves by these rules, and we apply them through the corresponding organs. Our loyalty is not to money, but to the general assembly composed of the members, who produce these rules and who every three years elect other members for the different posts. Money is a means; the end are the members.

So if a member is looking for a loan, he goes to the credit committee, and follows the rules that the assembly of the cooperative approved. No one should take the place of the credit committee in a cooperative; it is not like in the haciendas, where the patron is at the same time the credit committee, general assembly, oversight board and manager. Our statutes tell us that profits are redistributed in the cooperative, therefore we must redistribute the profits of the cooperative. In a cooperative each member has rights, voice and vote, without regard to whether they produce a little or a lot, each member has the right to become president, to their part of the profits, and to have a copy of the statutes of their cooperative. In a cooperative the directions do not come down from above, they are made in the Assembly, and in the other organs of the cooperative. “Oh”, said Freddy Pérez, “I thought that being a board member was solving the problems of the members, rather it is the members who solve their problems through the cooperative”. “It pains me what I experienced, I know that I should not lend the money of the cooperative to the members, but I did it again”, expressed Claudio Hernández, recognizing that those “3 beasts” have formed a nest in our minds, but that our consciousness wrestles with them, and that being a cooperative is gaining more and more terrain. “We do not need credit, we need our profits”, insists Josué Moisés Ruíz.

The third mechanism is connecting the inside forces with the outside ones. Figure 2 shows the harmful leadership style, the patron who believes himself to be the door to the cooperative and to outside the cooperative; while Figure 3 shows the style of leadership that a real cooperative practices. If the cooperative is guided by its statutes, the State will legalize its path. If this process happens making its organs function, external institutions and aid agencies will respect the cooperative; they will treat it as a cooperative, and not as a hacienda arranging everything only with the patron. For example, the credit committee will meet with the institutions or organizations that might provide credit to the cooperative. The commercialization committee will meet with commercial enterprises and organizations that provide processing services for their products.

Internally, the members of the organs visit the members, and encourage them to visit one another as members. Members of the commercialization committee visit a member family, see their product and their wet mill, and at the same time come to understand the family in their multiple interests – most deeply felt needs and dreams; it is on this basis that the committee advances in their work strategies. The members of the oversight board, credit committee, education committee and the Administrative Council all do the same. A visit is a blessing that makes friendship and trust, loyalty and truth blossom. The more informed a member family is, the more it contributes with their ideas and oversight to the cooperative; the more connections are cemented in visits that generate friendship, the more the cooperatives become instruments for the majority of their members.

The fourth mechanism is that organizational improvement must improve our farms and homes. The cooperative is not there to apply agrochemical inputs and then lie, saying that we have organic production. Nor is producing an organic crop leaving it “without applying anything”. If we visit the member families, each family should visit their plants every day as well. The cooperative is not there so that our members might consume the coffee dregs, but to consume the best of their coffee, honey, grains, vegetables, bread and the best of their enchiladas…

3.     In conclusion

This article is the product of 5 months of tension, and the pursuit of a cooperative to defend its rights, speak the truth and have the strength to change. This process taught us that a small group, in alliance, is capable of making cooperativism contagious. The biggest changes start in our own minds. The rule that “we will always need a patron” or that “leaders are born” comes from the hacienda institution and capitalism, and has built a nest in our minds. How can we get that idea out of our heads? To the extent that we reflect, demonstrating it, trying mechanisms out and being persistent, we can free ourselves from that idea.

At the beginning of the article we asked ourselves why we were tripping over the same stone. Throughout the article we have discovered the “three beasts”, who have trapped most of the cooperatives in our countries. These “beasts” make us trip time and time again.

The second question was how to avoid tripping again. We listed 4 mechanism that we have experimented with: preparing oneself for each meeting and not moving impulsively, following the rules of the cooperative, being a leader who connects with the members and the external actors, and making organizational improvement go hand in hand with the improvement of our production. Our aspiration is that these four mechanisms might help us to get those harmful norms out of our minds that come from the “3 beasts”. Being a cooperative is path that we peasant families need to hone. If we do it, the hummingbirds will be joyful as well, and the sparrows will not longer crash against any trees!

Let us end this article recalling another rule of the patron: “you should not help members, because they are ungrateful”, the patrons repeat. When Sandino decided to not surrender, General José María Moncada said to him, “The people are ungrateful; what is important is living well”. Sandino did not crack. There is no better gratitude than the members recovering their cooperative and closing the door on the thief, the patron, and the three beasts, and follow their own path.

 

Getting off the old path and getting on the cooperative path

Getting off the old path and getting on the cooperative path

[for pdf version]

René Mendoza Vidaurre[1]

I was a fieldhand. I was a foreman. I knew how to become a patron. That is what I wanted. That is what I was doing when one day in 1968, on returning home, I ran into an unknown person on a mule. He extended his hand to me, greeting me:

  • I am the priest of Santa Fe- he told me.
  • I do not believe you, priests only greet the rich – I responded.
  • There is always a first time for everything, I invite you to a meeting this Thursday – he surprised me.
  • I do not have time for meetings- I reacted, turning my head back to the path.
  • No? Those are the people I am looking for, people who do not have time – he said good-by and left me without a foot to stand on.

I went to the meeting. I saw him greeting people, even the children, that shook me. We sat in a circle. What I saw that day, what I heard that day, made me think differently. That day changed me forever”.

Jacinto Peña, founder of the Esperanza de los Campesinos Cooperative, Santa Fé, Panamá

In this story there are three moments. In the first, Jacinto knows the patron-fieldhand path and dreams about becoming a patron, who priests greet. In the second, the encounter happens on a muddy path, a moment of awakening between the clash of events and words; the priest goes to people and shakes the sweaty and calloused hands of peasants, exchanging words, where two mentalities confront one another and at the same time coincide in “people who do not have time” (people involved in initiatives), and the possibility of change appears: “there is always a first time for everything”. In the third moment, the meeting takes place, and a new path takes shape in which what stands out is what happened before and during the meeting: greeting people, including the littlest, time to reflect in a circle and listening to one another, causes “thinking differently”. A year later they would organize their cooperative, and with that they would channel this awakening and new path in a sustainable way.

In this article we describe that old path, its reproduction in coopted cooperatives, and the appropriate path of the cooperative that, connected to peasant and indigenous roots, guides the centenary dreams of people. In the wrap up we leave open ended conclusions.

1.    The old path

The old path is a dominant perspective and seen as the only one; it is a structure defined with rules honed over centuries. See figure 1.

It is a relationship of power over the labor force, peasant products, female bodies and nature. The perspective is that what is important is what comes from above; if someone has a pressing need or emergency, they look upward, and go to the person considered to be the “top honcho”. In this structure each person knows their place. This is where the expression “know your place”, fieldhands or peasants understand “their place” and consider themselves “brutes” and “powerless”, that is why the cook on a farm or hacienda works twice the amount of time than the men, and earn less than one day of work of a man, and in addition is sexually harassed as her daughters are – “whatever moves in my hacienda is mine”. The patron believes he owns the land, the cattle and the truth: while the fieldhand or peasant dreams about becoming a patron (see in the story of Jacinto Peña how he dreams of becoming a patron) on the basis of impoverishing the most vulnerable and nature, or resigns himself to his current condition under the belief that “the corncob, even though there is a good rainy season, will always be a just a corncob” (if you are born mediocre you will always be mediocre), ashamed of being “small” and believing that his current position is by “the will – or punishment – from above (God).”

Fear and subordination are generated on this path, while “going to the top honcho” is glorified: being “close to a tree with shade”.

“By your side I am safe”, repeats the woman. The foreman moves about safely because he answers to the patron and walks under his “shade”, he protects that door and is afraid that others might go pass through it. Fieldhands and peasants, including technicians from the haciendas or farms and the State itself, do not ask about the origins of the profits, it is considered that the economic distribution (wages for work, payment for product and earnings for the patron) is natural and divinely fair. Asking about these topics is considered a sin. Only technical and de-politicized questions are asked: where to weed or whether to use more agrochemicals. Meanwhile, whoever dares to ask about the accumulation of capital or its redistribution, do so because they “have lost their mind”, are drunk or are not controlling their anger, and when that happens, that person is accused of “equalizing himself” by his fellow workers and the “shade” of the patron fails to cover him. There are people, nevertheless, who awaken up to how unjust this path is, but since they cannot see another path, express their disagreement by cutting down a plant, stealing bananas, using more agrochemicals, or putting stones in the bag of coffee that he has sold. There is no absolute power of the patron (or trader-broker) over the peasantry, there are always cracks for rebellion, but they are channeled–even armed rebellions– without moving outside this path or structure.

From several rules that exist along this path, in addition to “profits belong to the patron”, and “profits organize the economy”, let us highlight the rule that “without money there is no work” or better said “if I am not in debt I do not work”. As they say in Brazil “the pig squeals for its crossbar[2]”, if you take the crossbar off of the pig, after a while the pig will squeal. Peasants reproduce this same rule: “I will provide product based on what you lend me”; peasants await the “crop lien loan” in the “months of silence” to commit their coffee for the next cycle; they harvest a product that “is already paid for”. In this way they are not able to get out of the cycle of dispossession, because the crop lien loan means that they sell their product or work at less than half its price several months before the harvest (see Mendoza et al, 2012[3]); they do not work without being “lent to”; and the distribution of the wealth is the decision of the patron. This circle of iron squeezes the peasant or fieldhand, who see that their only way out is sticking to this structure, and it squeezes the patron or merchant who understands it as their only way to accumulate wealth. See Figure 2, the iron circles under which the economy is organized (see green arrow showing where value is pulled upwards), inequality moves and people and nature are impoverished.

This patrón-foreman-fieldhand or peasant unit is so durable and has become so natural that, following the history of different countries, we see them together even in war itself, some fighting as soldiers and others as captains and generals.

This millennial path crushes any possibility of a different path or rules that oppose it from the family, the farm (diversified) or the community. These perspectives of virtuous rules and a different path, nevertheless, still persist –“there are still embers where there was fire”, we would say with a phrase used about people in love.

2.    Cooperatives that reproduce the old path

The boss and his hen house

Maria was making tortillas when Reymundo arrived upset. “They tell me that you are organizing a cooperative. Why do you want another hen house? Shot off Reymundo, the eternal president of a cooperative.

“Ahh we were talking…”, stammered Maria.

“Cooperatives are made with money, and there is no money”, he interrupted her.

“For that very reason, a cooperative is for thinking and helping one another; in your hen house the members do not think nor is their vote respected”, Maria responded more strongly.

Reymundo raised his index finger: “you are deluded, leaders are born, not made …”

“Do you think you were born from the Virgin Mary?”, María laughed heartily.

“Chicken brain! –shouted Reymundo– a leader is sacred, the people at the grassroots get confused …”

“Do you see a hen´s beak on me?” –Maria laughed again.

“You can´t talk to women!” Reymundo left in a huff.

María, flipping the tortilla, ruefully watched him leave: “He thinks he is the little boss, king of the world! He treats people like chickens, he never understood what a cooperative is”.[4]

In this story the president of a cooperative is a captive of the old path. He understands the cooperative as a “hen house”, and the members as chickens without agency (decision and vote) who follow the rooster each time he crows when he finds some worms. He understands that “nothing is done without money”. In contrast to a cooperative where leaders are made, he believes that “leaders are born”, that he “is sacred”, that those who are “confused” are the members, and that insubordinate women have “chicken brains”; he thinks exactly like the traditional patron.

2.1  Ceremonial glocal cooptation

The presidents are products of structures where the coopted cooperatives reproduce the old path[5].

Following figure 3, compared with figure 1 and how it is described, essentially it is the same structure with two differences. It is more glocal (global and local) which includes international actors, and it is more ceremonial in that hundreds of rules appear (e.g. fair trade rules and those of several types of certifications), and documents signed (buy and sell contracts, financing contracts, forms filled out, written reports and minutes). These two elements contribute to the fact that the role of the management/administration becomes more important (“professional”), becomes the hinge or the entity that has the key to the inside and  outside of organizations. By outside we are referring to international market actors (buyers, financiers, certifiers, aid organizations) and the State. This ceremonial and glocal differences, in addition, expressed in more bureaucratized ways, shape the entire structure with impersonalized relationships.

In this structure the buyers are interested in making money, and therefore are interested in the coffee, cacao or sesame seed product; the private banks and social banks are interested in recovering their capital; the aid organizations want financial reports; and the certifiers want their formats filled out; all of them are interested in arranging things with one person in the cooperative. On the side of the cooperative, the manager or president understands those interests, and respond with product, payment of loans and reports –“whatever the papers can stand”. If the buyers want to hear the song about the “poor producers”, “women members” and “democratic cooperative”, that intermediate layer learns to satisfy them, sings that song for them. Thus business is done in that small “club” of external actors (buyers, financiers and/or aid organizations), and the manager or president of the cooperative. It is a deal around goods – coffee or cacao – based on formal agreements. The role of the State there is to legally provide legitimacy to the existence of the cooperative; this involves confirming that the documents (official minutes) of the cooperative are done well as the state wants them, regardless of whether those documents are pure inventions of the manager or president of the cooperative.

A common characteristic is that, apart from speeches with good intentions, none of them are interested in the origins of the product, nor how the cooperative is functioning, much less whether the members have access to the profits of their organization, whether they received the loan, whether the members benefitted from the project, whether the members meet and there is rotation in the leadership, or whether the organic product really is organic. It is assumed that the fieldhands or peasants have nothing to do with that product, because any product “is made with money” that comes from outside. They are interested in the papers that conceal the expropriation of profits.

This structure makes the associative side of the cooperative disappear (see Figure 4). The external actors connect only with the business foot. The cooperative moves only on that foot. The manager and/or president is seen to be on the old path, with the difference that the control of the “patron” (external actors) is not ongoing, but ceremonial. This structure pulls them from their roots: the president “becomes independent” from the members who elected him, they put the statutes in a drawer; the staff on the business side “become independent” from the associative side which gave birth to it. From that business foot where the old glocalized and bureaucratized path takes over, the manager and/or president present themselves as indispensable to the members: “Those above only receive and send messages to me, only I can negotiate resources – not even God loves you”, “without me, the cooperative would fall apart”; in other words, they mention the external actors as their backing (“their patron”) and their work is rather a favor so that the cooperative does not go broke. They (manager or president) centralize relationships with the actors, they see them as their connections, instead of contacts and/or alliances of the cooperative. In this way the manager or president remain in their posts eternally and deadlock the cooperative; so, when a person enters the cooperative, they understand that there is no possibility to scale up on the associative foot, nor on the business foot, because the president or manager change “on the death of a bishop”.

2.2  The subsumption of the members

Under this framework of cooptation, the cooperative subsumes the members. The notion of subsumption we take ¡from Dussel (1990: 353)[6] who, rereading Marx in the context of industrial capitalism, understood that the worker (living work) and the machine (objectified work) are subsumed by capital; it is a secret way of creating surplus value for the capitalist. Here the member loses control over their product beyond their “picket fence,” and loses their organization while breaking away from their associative foot (figure 4), left as a producer of raw materials and encapsulated as a “member”, while the global chain appropriates the surplus value. How does this happen?

Figure 5 shows the same logic of figure 2 of the old path. The three rules that move the members are the abduction of the profits (surplus value), the fact that the cooperative is to “provide credit” and that the business foot might “manage the yield of the product and buy wherever what is needed to meet the market demand”. These three rules make the members turn in (“sell”) their coffee, and resign themselves to letting the business side run them.

The global chain pulls up the value of the product, those who do not produce the coffee capture 88% or more of the total value of the coffee, while the members get less than 12% (Mendoza, 2012: 159)[7]. From this global chain framework, the cooperative assumes the role of “not distributing the profits of the cooperative” and the mentality of the member is that of being a producer of raw materials – and nothing more. How does this work? The cooperatives that sell organic coffee or cacao turn over the “organic premium” as an effort of the manager and the technicians, as a “favor”, and not as the effort and right of the members. It is like some political parties who when they get to power in a country, redistribute something of the wealth without changing the capitalist path nor model; it is the trickle down economics of neoliberalism, of the assumption that ‘the more the capitalist accumulates wealth, the more it spills over´. They redistribute as a good patron would, who instead of providing grilled meat once a year, gives it to them three times a year, reinforcing that old path even more. The managers who run these cooperatives, tacitly assuming that the cooperatives are like “their properties”, justify it: “we do not redistribute the profits because we are consolidating the future of the cooperative by investing in assets”; they are cooperatives that are more than 20 years old, that continue investing in assets vetoing the redistribution of profits. The paradox is that the redistribution of profits is in the statutes of the cooperatives, something that the State tends to ignore.

The members do not ask about the profits (or earnings), because they believe that it is not their right nor the fruit of their effort as members. By not conceiving the cooperative and its efforts as their own, they do not do the calculations for the conversion of coffee in cherry to export coffee, nor cacao in pulp to dry cacao, nor the value formation of their product, nor do they calculate to the amount to be paid from the loan received, nor the expenses and income of the cooperative. Many producers do the calculations of their farms: ”I calculate how much I am going to harvest, what I am going to sell it at; and from there I go down, what I am going to pay the workers, the food, and I spend accordingly” (Rufino Espinoza); but they do not do the same with their cooperative, because they see it as “someone else´s”. The mentality of the members is: “I am a seller of raw materials, the rest is not of my interest”; “they lent me money and they said how much I am going to pay, the rest is up to them”. It is like borrowing money from the patron, whose earnings are unquestionable because he is “doing you a favor”. In the cooperative the money of the members is read from the lens of the old path, they say “it is money from the cooperative, not our money, the money of the members”; and even worse, “the manager lent me the money, I owe him” – the paradox is that it is a resource of the members themselves.

Now let us look at the second rule: “I do not work if they do not give me credit (crop lien loan)” (Figure 3). The members appear to doubt that their farm is theirs and disengage from it; correspondingly, it is common to find ourselves in coffee fields in bad shape, particularly in the case of organic crops. The members have the idea that the cooperative (manager and/or president) is there to “bring them credit” and to “buy their production”, which is why they do not work their farm if there is no credit. It would seem that to become a member is to neglect your own farm, because the “foreman” (manager or president) does not come in to supervise them. If the manager or the president shows up to visit them, they do not see it as a visit, but as “credit”, that he is coming to “provide credit”, “to collect”, or to “supervise”. The board members behave like “foremen”. “If we redistribute the profits, the members are going to feel free, without a commitment to the cooperative; if we give out earnings as credit, they are going to assure coffee for the cooperative” (a president of a coffee cooperative); “If we are going to visit the members they are going to believe that we already are bringing loans, and then they are only going to want to talk about that” (Idem).

The third rule refers to the yield of the product, and the fact that products from non-members comes in as if it were from the members. The yield refers to the processing of the product and its production on the farm. The former happens from the harvest collection to its sale (be it exported or sent to the national market): from sun dried coffee to dried, warehoused, hulled, selected and bagged; from cacao pulp to fermented, dried, bagged and warehoused; from sugar cane to the extraction of juice, boiled in cauldrons, granulated and bagged. This phase is carried out under the leadership of the business foot of the cooperatives, which is interpreted by the members as “not my job”, which is why they do not demand the earnings referred to in the first rule, and do not access information about that yield. This is what leads them to say, “I am a seller of sun-dried coffee, of cacao pulp, of sugar cane…” and not of “export coffee, or granulated sugar”.

Another rule emerges for the yield of the organic produce on the farm: “an organic farm is not applying anything”. It means zero agrochemicals. It has been extended from there to “zero organic inputs”. A good number of the members, except those who apply agrochemicals in secret, let their coffee field produce what natures provides it, that organic fertilizer “is nature itself”, as if they were in the agricultural frontier areas where the virgin soils are fertile. Behind this is the idea that growing coffee or sugar cane is applying agrochemicals under the order of the patron, and that nature “just responds to the mandate of the patron”. In other words, the cooperative reproduces the old path, but in a feeble way: the “foreman” does not supervise the production nor determines how to manage nature. This gets worse when the organic certifiers  prohibit them from planting other crops in the same area as the organic crop, pushing them towards monocropping, intensifying this feeling that these organic areas are “someone else´s”, that they belong to the technicians and the buyers who give them the “organic premium”. It is probable that the reaction by some members to not work these organic areas is also a form of protest, “well they manage that part, so I am not going to apply anything”; or that the rule of “if there is no credit I do not work” is even more true in the case of organic producers, because they work less, when they would have to work triple the amount of time in organics, because if a conventional coffee area requires 10qq of urea, a similar area of organic coffee requires 30qq of organic fertilizer, which implies more family labor. Consequently, production drops, families get more impoverished[8] and managers or presidents, responding to the market (global chain of actors), buy conventional products from non-members, and pass them off as organic coffee from the members, without the members realizing it.

Some members and leaders hear rumors about these practices, and are tempted to ask about them. But the business foot reacts strongly: “You owe me”, says the manager or the president to the member, as if the cooperative were the manager or president, or as if the resources of the members belonged to the manager and/or president. “The cooperative spends more on you who only turns in 500 lbs”, they accuse the smaller producers of coffee or cacao, reproducing the ideas of the old path, where the one who has more materials resources rules the rest. The accusations escalate: they throw in their face that they are small producers, that they had to buy produce from outside to cover administrative costs. On one hand, the members are afraid of the manager, president or technical trainer; they do not demand their rights out of fear that they will not give them loans, exclude them from some project, collect what they owe in front of the other members; the women are doubly afraid, afraid of their husbands and the manager or president. In this way the members end up believing that they are “small” and that is something to be ashamed of (“we do not make demands because we are small producers”), that the cooperative “is someone else´s”, and therefore their actions are not connected to the results of the cooperative. In other words, the members also are disengaged from their cooperative.

In this process there are people who wake up, but they are not able to get beyond this structure, they thought that by joining a cooperative they would leave that old path. They discover this reality, awaken, when they realize that the rules that they are following are not their own, nor do they come from their community nor from the cooperative, but from those who exploit and oppress them, that they do so clothed as cooperatives, democracy, revolution or fair trade. They understand what is happening, they abhor it, and see their relatives moving under these pernicious “exogenous” rules, believing that they are “their own”. It is when they feel disgusted, that their mind is conflicted, they do not know whether to believe in what woke them up, they become schizophrenic, wander on paths like sleepwalkers, while dragging along pieces of humanity. If they share their meditations, they are accused of being crazy, so with the look of someone lost, they murmur “I am disoriented” or “I am confused”. This happens to them because they have awoken to their condition, but the cooperative through which they thought they could leave that situation, ends up being the same structure, more global, more formal and offering more training, but it is the same structure. Of course, there is no absolute power over the members, they divert their coffee or their cacao, avoid paying their debts, wait…

2.3  Advice or assistance to, and from, the business foot

In these cooperatives the accompaniment on the part of allied organizations, or on the part of the technical area of the second-tier cooperatives, is linked to the logic of the business foot of the cooperative. Consequently the trainings and consultancies do not cover the entire glocal chain of actors, nor deal with the redistribution of profits, analysis of the financial information, nor the real traceability of the product – about whether it comes from the members, about whether it really is organic, whether it really comes from women members, whether it is or not a cooperative.

Let us look at two examples. The first, seeing the depressing situation of the coffee field, the aid organizations easily deduce – along the lines of monocropping .- that the members need to be trained, which is convincing or evangelizing the peasant about something that it is assumed he does not know, and that the trainer assumes he/she does, something like “not putting anything on organic cacao”, or pruning, or crop varieties. Nevertheless, in previous pages we have seen that the low production has to do with technical aspects connected to the rules of the old path, something that the accompaniment does not tend to include. The second element is about training in gender, it tends to be about the habits of the couple, that the husband cooks as a favor to his wife, that women work in agriculture, that the cooperative incorporate women to make it look like they are more equitable (husband signs over a piece of his property so it be in the name of his wife); they are trainings that reduce patriarchal relationships to technical responses.

It is a consultancy that does not start from studying the pernicious and virtuous rules on gender or production. They are consultancies that assume that they know them already, because everything has already been “studied”. How can women join cooperatives when their own rules (“having land”) excludes them, in addition to the fact that they tend toward monocropping? Other consultancies insist that the members not be afraid of criticizing their board members and managers, but that can be an act of suicide, if the members themselves do not move beyond the patron-fieldhand structure, and if they are not accompanied by their advisers in that effort. Understanding the problems and opportunities of the member families is also understanding that these problems are also the problems of consultants.

3.    The cooperative path

Is it possible to wake up and take another path? The fact that most of the cooperatives reproduce the old path makes this possibility more difficult, like what happens when a political revolution reproduces the same hierarchical structure that it apparently fought. We say “apparently” because in reality it was “get rid of you to install me”. But of course another path is possible! Here we present the conditions that create a cooperative path, its results in terms of the 3 rules, and the appropriate accompaniment.

3.1  Mechanisms needed for an associative path

We begin with the first mechanism, awakening and envisioning an alternative path.

Louise convinced her husband, Harold, to take a vacation. In 1983 they went to Mexico, El Salvador and Nicaragua, the last two countries in civil wars in those years. One night Harold awoke with a start, sat up in bed, and began to sob. “This is crazy” – he said to himself – “I have not cried as an adult, and now I am crying.” Why was he crying? The previous day while walking through the streets of Managua, a naked child ran up to him and hugged his legs. He looked down at the child, and the child looked up at him. He never saw that child again. That event stayed in his mind. So talking with Louise they decided to make more money with his business, Foldcraft, in the United States to organize a foundation that would provide support in Nicaragua. In 1986 they established the foundation. The couple has since died, and that Foundation continues supporting dozens of peasant families through their rural organizations in Nicaragua.

Harold and Louise as a young couple began to make furniture in the garage of Harold´s mother´s house, a business that over the years became a million-dollar enterprise. That daily effort made the couple believe that the rules under which they moved were the rules of the rest of the world. Nevertheless, that night when Harold woke up crying, he realized that it is NOT true; that his rules in his business were not the same rules in countries like Nicaragua. According to what people close to the family tell us, Harold was a very conservative member of the Republican party, and Louise was from the Democratic party. Being so conservative, how did they realize that the rules were not the same? The couple were mentally open to understanding that their rules and the rules in Nicaragua were not the same, that so there was injustice. That small, naked boy had shaken their hearts and their minds. Harold and Louise did not become cooperative members, but they found a path to make their awakening effective. They sold their business to their own workers, and they understood that the biggest challenge was that the workers would become owners, and that that also was the challenge of the members of cooperatives. So they left behind their resources for this new path of justice.

Now let us consider the awakening of Jacinto Peñas, described at the beginning of this text. He awoke and envisioned another path based on “thinking differently”. That path took shape in a matter of months. He and other founders remembered it.

We awoke to the injustice of the wages, the cheating that the stores did to us through the weighing, and the prices for what we produced, and what we bought from them. We decided to form a cooperative. But how could we do that if we had no money nor anything? So Fr. Hector threw a nickel in the middle of where we were sitting and asked, “How many pieces of candy can we buy with this coin?” “Five!” we responded. Another person among us looked then for a nickel in his pocket. And others threw in more coins. Father picked up ten coins and told us that it was enough to buy 50 pieces of candy. He asked a boy to go out and buy them. It was noon and we were hungry.

The boy shared the candy with the fifty of us peasants who were there, and Father asked us again. “What does it taste like”” Someone said, “It tastes like glory!” We laughed. “This is how cooperativism is done”, concluded the priest.

The next week a group from Pantanal bought a hundred-pound sack of salt to resell as retail, and in El Carmen each person began to save 10 cents per week. In this way la esperanza de los campesinos [the hope of the peasants] was started, that is how our cooperative got started.

So started the Esperanza de los Campesinos[9] [Hope of the Peasants] Cooperative. Surely after several visits and group reflections they were awoken. They realized that the old path produced injustice, that money was made by lowering salaries and on the basis of cheating in the weight and the price. They understood that together they could solve these structural problems, like the weighing and pricing, that that was possible with the accompaniment of the priest Gallego, taking another path. Hope begins for them, and they propose forming a cooperative. At the very beginning a rule of the old path, and a belief about themselves, pop up: “without money nothing can be done”; (we have) “nothing”. They have a collective awakening there about the cooperative path, where they discover their own capacities: their own resources to contribute, initiatives for generating resources (in El Pantanal with a “hundred-pound bag of salt”); it is a collective awakening that frees up their energies to start their cooperative path in their own territory; and a reflective process, accompanied by the priest Gallego, who in our language “throws the ball back to them” – it is a type of accompaniment that we espouse in each one of these mechanisms.

Figure 6 shows the second mechanism, cooperative functioning in a circular path. Instead of elites sending directions down from above, like in figure 3, reproducing the old path expressed in figure 1, now the international actors are part of a triangulated relationship, where buyers and financiers are interested in the product and in their capital in so far as the cooperative improves as a resource for the members, and in so far as the international organizations themselves are freed from the NY price for different products. On this path the most important product is not the coffee, cacao or granulated sugar, but the organization itself, and the chain of organizations with the allies.

The third mechanism is that the cooperative walk on two feet, the associative foot and the business foot (see Figure 7). It is the interaction of both feet that makes it move forward, as the song days “there is no path, you make the path by walking”. The associative foot defends redistribution, democratic exercise, and informational transparency; the society side. And the business foot defends the increase in wealth, efficiency (more income and less expenses) and effectiveness in economic transactions; it is the market side. One foot dominating the other is the termination of this cooperative path. An organization that only walks on the associative foot shares its wealth and is left with unsustainable democratic methods. Likewise, an organization only with the business foot is left as a means of dispossession subject to the market.

Within this framework a cacao buyer wants to negotiate, talk and reflect with people from both feet of the cooperative; the same with a financial or academic institution. There are no followers there, but leaders, there are no small nor large producers; one person, one vote; all the members have the right to elect and be elected, which is why the rotation of leadership is a principle on the associative side as well as on the business side. New members or a new worker in the cooperative will see from the beginning that, regardless of their level of schooling, they can scale up in title and learning.

The fourth mechanism is about values. On the old path values are talked about, but those values are turned into fetishes – words (values) that hide their commodification, and separate human actions from their economic, social and political results. The cooperatives that reproduce those old values repeat the laws, cooperation and solidarity, but their meaning comes from the old path, it means subjecting themselves and using the law for individual interest at the cost of the collective and its processes. In cooperatives that depart from the old path, values like honesty, solidarity or cooperation are connected to the origins of cooperativism, the roots of their members, and communities where they come from – see Figure 8. These values are connected with our childhood and with fair norms and equity in our families and communities: “equal inheritance”, “respecting collective assets”, sharecropping”, “shared labor”. These values, said figuratively, we have buried under layers of soil and we have to dig them up; on this path doubts about whether we are on the right path assail us. Swimming against the current is rare and difficult; the question guides us.

The fifth mechanism is the rootedness of the organization in its communities and in the diversified nature of its production. The old path makes society subject itself to the market, and with that promotes the extinction of the peasantry through monocropping, a colonial strategy for dispossession, now intensified by capitalism. This old path expressed through cooperatives coopted by the market follow that same strategy, even promoting organic production, just as we saw previously. This path leads us to serve the market, adopt monocropping, turns us into enemies of nature, disconnects us from other people and from ourselves. On the cooperative path, we deepen the horizontal and vertical diversification, it connects us to nature and our roots. The more diversified we are, the more we energize our communities, the more we connect ourselves to different markets. The more agroecological practices we adopt, the greater autonomy that we attain, and the more we pull our cooperatives to function in our own territories. It is in this context that we talk about improving production, the quality of what we produce, to the extent that we improve the land.

Finally the mechanism that reinforces a contingent awareness. The old path makes the worker disconnect from the wealth that is produced on the farm, hacienda or factory, makes the producer family believe that their country ends at their own hedgerow, makes the member believe that it only means calling yourself a member, while always being a “seller of raw materials”. This old path makes the accompanying NGO or technician believe that their advice does not have to do with the results of the cooperative or the family. This act of believing that our actions have nothing to do with the situation of a country, the environmental situation, and the democratic system or not of our countries, is an act of alienation that intensifies climate change and social inequality. The cooperative path is precisely reconnecting our actions and their aggregated effects of unintended consequences.

On throwing in 10 nickels, 50 members saw how that act was turned into candy, into their redistribution, in a collective act that started a cooperative, a space for learning and created a living community. In the story “the little boss and his henhouse”, contrary to the mentality of the president Reymundo, Maria connects the actions of people, that “a cooperative is for thinking and helping one another.” The mental openness of Harold and Louise led them to think that there were unjust rules that generated results like that “naked boy”. It is Jacinto in the story at the beginning of this article that connects processes and “thinking differently”. The redistribution of profits is one of greatest expressions for members to connect their actions with the results of their organization.  It is the connection between individual ideas and actions, and their collective aggregated effects (results), that gives us the possibility of awakening, and consequently of changing. This is the basis for cultivating a contingent awareness, that there is nothing that is given, that we humans transform realities; that there is no “above”, only the circle of Figure 6.

3.2  Elements of repossession

Ownership is the biggest result of the mechanisms just mentioned. This ownership is expressed in three rules: redistributing profits, providing credit that breaks with the crop lien system, and horizontally and vertically diversifying in a way connected to nature. The three rules are interdependent on one another. See Figure 9.

Redistributing is the first rule. On the old path, the member summarizes their identity as “I am a seller of sugar cane”, “seller of sun-dried coffee”, “seller of cacao pulp”, or “seller of my labor”. On this old path, reproduced by the coopted cooperatives, that mentality of treating the members as “hens” is intensified, giving them “the organic premium”, or improving the price for their sugar cane, coffee or cacao. These cooperatives do not allow discussing the profits of the cooperative, nor do their global actor allies bring up these topics. In contrast, on the cooperative path that notion of redistribution* is inherent to being a cooperative.

In the story about the emergence of the “Esperanza de los Campesinos” cooperative, 10 peasants contributed 5 cents, and 50 candies were redistributed among 50 peasants; the object of that meeting was not to buy candy and distribute them, but that act of re-distributing them (“multiplication of the loaves”) gave them the sense of ownership of being a cooperative from the very beginning. This is what Harold and Louise experienced after that night of tears, that ownership was the biggest challenge for the workers to become the owners of the business, and likewise in the case of members with their cooperatives. Redistribution is a means of ownership over your organization, which makes profits, information and rotation in leadership be shared. This is what wakes up the member, generates in the member interest in being informed, occupying positions of leadership, and keeping watch over their organization. In this way, Rufino Espinoza who calculates his income and costs for his farm, could ask for information and calculate the income and expenses of the cooperative; the members can calculate the yield of their coffee from cherry form to export coffee, and even roasted and ground coffee. Because “where your treasure is, there your heart will be” (Mt 6:21); a (economic, social, political and environmental) treasure that is the result of collective effort.

Contrary to “giving credit to go into debt” or “providing credit as payment for your produce at less than half its market price”, the second rule of change is: credit that frees the members from indebtedness and the crop lien system. This is possible coupled to the rule of redistribution of the cooperative´s profits, as well as receiving part of the loan in kind (farm inputs), making the relationships and information transparent in the heart of the family, that leads them to savings in times of  “fat cows” for the lean times, and stagger income throughout the year.

This takes us to a third rule: diversifying connected to nature. It is not possible to stagger income without breaking with colonial mono-cropping; nor to save if a family and their cooperative are not promoting diversification in its various expressions. Staggering income comes from horizontally diversifying on the farm and vertically in forms of forward agro-industrialization (e.g. roasting coffee, making chocolate, making marmalade from fruit on the farm) and backward industrialization (making organic fertilizer and natural fungicide, protecting water sources). This rule fights that pernicious rule of “not putting anything on it”, connected to the lack of ownership over their own farm and cooperative; let us recall the old Spanish proverb “what nature does not bestow, Salamanca cannot provide[10]. That relationship between production and nature must be rethought from the idea of holistic ecology, proposed in Laudato Si. There Pope Francis urges recognizing one common cry from the most impoverished people and degraded nature; not seeing nature are something isolated nor much less as a thing, but connected, people with the environment, with God, with oneself and with other people; it is a notion that starts from the fact that there is an interconnection between society and nature, politics, economics and the environment, personal dignity and the common good, generational justice, culture and lifestyles. In other words, diversifying linked to nature is something that you connect with multiple and different areas.

These three rules are interconnected within a glocal framework. Composting is not done, in spite of hundreds of trainings received, because doing composting is a technical matter connected to policy, ownership of the farm and the cooperative. Credit can be a means for freeing the members from their debts and keeping the business foot from subjecting the cooperative to its interests, if that loan is connected to the redistribution of surpluses, if the financial organizations support this purpose, and if the member families improve their capacity for savings in so far as they diversify their activities.

3.3  Transformational accompaniment

This glocal cooperative path requires an accompaniment coherent with, and in the interest of, the aforementioned mechanisms (3.1) and results (3.2). It requires that we be in the home of the member family, and at the same time connected to the entire chain of global actors, in other words, working in networks, in teams, moving as part of the circle in figure 6. “Staying on top of the pulse”, and “being in the game”.

The priest Gallego is a source of inspiration in this. He had his religious network for working with the peasantry, he moved in the communities themselves, reflected in a circle with the peasant families, and contributed to the fact that the peasant families organized; his idea of church went beyond the temple in the municipal capitals. Pope Francis would add: listening to the cry of those most impoverished and the cry of nature as one cry. And we add the compelling need to conceptualize what we learn from the cooperative and from ourselves as accompaniers. We are not looking to do the impossible, but to break down our limits.

Open ended conclusions

Few rules move the world, even though below that “bridge” there might be a lot of running water. What this article dealt with should not be seen as a prescription. It is only a small door to multiple realities in which it must be reinterpreted, corrected, expanded and added to. How to wake up and build cooperatives that would channel the dreams of peasant and indigenous families? How to accompany them breaking through our limits which the traditional academy imposed on us?

In this article we showed that sustained changes are possible if a specific cooperative in a certain community decides to do it. Even more so, if the global actors awaken and join the circle of change. Will global actors have the courage to awaken and change?

What is seen here is not exclusive to cooperatives and the chain of actors linked to them. We find the same structures in any organization or institution, be it grassroots, on the national or international level, the academy or the church. Nevertheless, the hope for change is present even in the most pernicious and inhumane organization or institution that has existed on the face of the earth. Can these organizations dig into their history and that of humanity to re-encounter their real mission in our common home?

[1] Collaborator of Winds of Peace Foundation (http://peacewinds.org/research/), associate researcher of IOB- University of Antwerp (Belgium) and member of Coserpross (http://coserpross.org). rmvidaurre@gmail.com

[2] Crossbar refers to two stick tied to its neck to keep it from digging under a fence.

[3] R. Mendoza, E. Fernandez y K. Kuhnekath, 2012, “¿Institución patrón-dependiente o indeterminación social? Genealogía crítica del sistema de habilitación en el café”, en: Revista ENCUENTRO, No. 92. Managua: UCA

http://www.lamjol.info/index.php/ENCUENTRO/article/view/787  In English at: https://peacewinds.org/patron-dependent-institution-or-social-indetermination-critical-geneology-of-the-crop-lien-system-in-coffee/

[4] This parable is inspired by a visit that a colleague had. I changed the names to protect them.

[5]The old path exists in an infinity of types of organizations: political parties, NGOs, Universities, Churches or sports organizations. “If a teacher misses a class, he does not let us know that he is going to miss, and later decides when to make up that class without consulting the students; that is the order in the University”. I was told this by a student in the fourth year of Oriental medicine studies.

[6] Enrique Dussel, 1990, La producción teórica de Marx, un comentario a los Grundrisse. México: s. XXI.

[7] R. Mendoza, 2012, Gatekeeping and the struggle over development in the Nicaraguan Segovias. PhD tesis. Belgium: University of Antwerp.

[8] Several studies have now found this correlation between organic production for markets and poverty. See: Joni Valkila, 2009, “Fair Trade organic coffee production in Nicaragua — Sustainable development or a poverty trap?” in: Ecological Economics.

[9] In an article we pulled together the genesis of this cooperative, see: R. Mendoza, 2017, “A priest, a coop and a peasantry that regulates the elites”, in: ENVIO 425. Managua: IHCA-UCA. This year the cooperative celebrates its 50th anniversary, see: https://www.youtube.com/watch?v=5v9aKUIecuw

[10] This expression probably refers to the fact that one of the most prestigious universities of Europe is in Salamanca, and the first to receive the title of university. It is a saying that indicates nothing is a given, your genes do not ensure your success, rather it is sustained effort that is required.

They’re Coming to America

“Free, only want to be free, We huddle close, Hang on to a dream.” 

America by Neil Diamond

There’s no shortage of patriotic music today, July 4.  From God Bless America sung by Kate Smith to America by Simon and Garfunkle,  America the Beautiful by Ray Charles, God Bless the USA by Lee Greenwood, I’ve heard songs all day in honor of our nation’s birthday.  It’s part of the enjoyment that is the 4th of July, the quintessential holiday in our country.  But there was one song that stopped me and caught my breath as I listened to it.   It was America by Neil Diamond.  Both the music and the lyrics are powerful, which is why the song became so popular when originally released.  But today the words hit hard, and rang with an ironic twist that, frankly, pulled some of the energy out of the day.

On the boats and on the planes
They’re coming to America
Never looking back again,
They’re coming to America.

Yes, thousands flock to our country on boats and planes, but many also reach our borders for their dreams on foot.  The Mexican border holds thousands in detention at present, and not just in waiting for legal processing for possible admission to the U.S., but in separation from children, spouses, and in cell-like detention for indeterminate periods of time.  Those realities don’t quite match the drama and grandeur of Diamond’s song.  I guess things have changed.

Home
Don’t it seem so far away
Oh, we’re traveling light today
In the eye of the storm
In the eye of the storm

Immigrants coming to America today find themselves in the eye of the storm of a different sort.  The pride of Americans embracing their role as the “melting pot” of the world has faded these days, replaced by a storm of blame, suspicion, racism, and even hatred.  It has not helped to have a political leader who has fanned the flames of those reactions and re-shaped the notion of immigration from a beautiful dream to a horrible nightmare.

Home
To a new and a shiny place
Make our bed and we’ll say our grace
Freedom’s light burning warm
Freedom’s light burning warm

And suddenly it makes a difference to whom you are praying for your suppertime grace.  Some in this land of all faiths now want to know the nature of one’s spirituality so that interpretations can be made and aspersions cast, often in the densest of understanding.  Freedom’s light burning warm becomes ever cooler to the touch.

Everywhere around the world
They’re coming to America
Ev’ry time that flag’s unfurled
They’re coming to America

It’s true that the American dream resonates everywhere in the world, because we have exhibited some of the visions to which all human beings aspire: freedom, choice, participation, pursuit of happiness.  In recent times, though, it would appear as if we vastly preferred those coming from Norway.  Something about looking like more of us than those in detention on the border.

Got a dream to take them there
They’re coming to America
Got a dream they’ve come to share
They’re coming to America

The dreams driving today’s immigrant populations are no different than those of generations before.  They come for opportunity.  They come to escape persecution.  They come for freedom of thought and expression.  In years past, some even came because they perceived opportunities to lie, cheat, steal and break the law with impunity.  But the U.S. figured that the good that came through our doors far outweighed the inevitable bad that is a part of our human reality.

My country ’tis of thee (today)
Sweet land of liberty (today)
Of thee I sing (today)
Of thee I sing
Today, Today, Today
Today, today, today……

Today, we celebrate our country as we have every year on July 4.  There is much in which we take pride, and rightfully so.  Our stories are mythic and powerful and full of the promise of what our future can be.  I had a joyous day with family.

Or at least until I shed a tear upon hearing Neil Diamond sing about coming to America today….

The Pain That Will Not Go Away

Coincidental or not, ever since my official departure from Winds of Peace as its leader, I’ve been afflicted by a worsening hip pain.  The discomfort did not stop me from my daily workout routines, however, until two weeks ago.  The ache in my hip and back became both chronic and intense, resulting in an inability to sleep for more than about 60 minutes at a time.  Then I need to get up and walk around for a while before going back to bed for another hour.  Multiple medical consults have failed to achieve any relief; I’ll have another intervention later this week.  Will this be the initiative to end what, for me, has been a painful nightmare?  Time will tell.

I’ve been fortunate throughout my life to have suffered few physical difficulties.  I knew that the ravages of age were undoubtedly compounding within me, but I have worked hard to keep them at bay.  That likely makes me less patient in light of my current malaise.  I don’t have a sense of its rhythm or its source.  Medical folks have massaged, medicated, probed and examined  X-rays, without reaching conclusion.  My pain seemingly worsens every day and I grow a bit panicky.

But it’s not the intensity or even the constancy of the pain that bothers me the most.  Rather, it’s the uncertainty about whether it will eventually come to an end.  And more importantly, whether that end will be a positive one.  It’s the uncertainty that is disabling.

Living with this reality for the past two weeks and analyzing my temperament about it has engulfed me with self-pity from time to time, as I have wondered whether this is the way my life will be from now on, whether the days of freedom of movement and happy expressions of physical capacities are suddenly things of the past.   I continue to push myself to the limits of pain tolerance, but that has not been much help.

Then, at 2:14 A.M. last night, as I crawled back into bed after a 10-minute stretch, filled with a self-centered sadness for my plight, I was struck with a sudden clarity of understanding about an event totally unrelated to my own pains.  My epiphany concerned the impasse unfolding in Nicaragua over the past twelve months and a new perspective on what I have regarded as  my own personal calamity.

For Nicaraguans the pains of death and detention have been intense and continuing; the grief of loss has been compounded by the surprise eruption following long-simmering pains within the civil body.  Even as Nicaraguans recognized the country’s issues, they felt, or hoped,  that eventual remedies would be peaceful and democratic.  But quite suddenly there was this great pain, this great stain, that fell upon Nicaraguan society.  It hurt.  Relief has been unattainable, no matter what position the ailing have taken.  And they wonder whether this is the new normal, the way that future society will function.

As painful as the losses are, it’s the uncertainty of the future that festers in the hearts of Nicaraguans today.  They know how they want to feel.  They know how they wish to live and move within society.  But the current uncertainty robs them of an essential component of well-being: hope.  Without faith in some actions or initiatives on which to focus, the future becomes an unknown, dark place.  This has been the day-to-day suffering of not just a retired yankee but of an entire Central American population.

That’s perspective.  The chances are pretty good that the discomfort that I have experienced for the past several weeks will go away; one way or the other, I’ll likely get over it.  For most North Americans, most of our daily aches are inconveniences at worst.  But 2:14 A.M. is a good time of the day to reflect upon the source of real pain….

 

 

Conditions and processes where youth energize family agriculture cooperative movement

Conditions and processes where youth energize the family agriculture cooperative movement

René Mendoza Vidaurre[1]

You cannot direct the wind but you can change the direction of your sails.

Chinese proverb

Tell me something and I will forget it, teach me something and I will remember it, make me participate in something and I will learn it.

Confucius

Abstract

The paradox of the last thirty years is that the peasantry, in spite of having offspring with higher levels of formal education, is experiencing an economic and social crisis that threatens their very existence. Cooperativism could be its “ship” to resist and reach a safe port. To do so this cooperativism, coopted by economic and political elites, needs to “change the direction of its sails” and reorganize. This is possible if they youth are participants in this process. So, under what conditions can rural youth participate in this process of the reinvention of cooperatives to make family agriculture viable? This article wrestles with this question and arrives at a conclusion: when the peasantry in cooperative spaces studies the harsh rules, studies their own attitudes and mobilizes to innovate for the peasant families who are organizing, that crisis can become an opportunity to improve our societies.

Summary

Key words: rural youth, family agriculture, cooperative reorganization, innovation

Introduction

In the last thirty years the peasantry have faced greater crises over climate change, systematic dispossession from elites, and because there is no more virgin land to “colonize.” A form of resistance has been organizing into cooperatives, but these tend to be coopted by the State, markets and international aid. Likewise, as never before in rural history, there are more rural youth with higher education, but they are distancing themselves from agriculture and are migrating to the cities and outside the country. If this situation continues, in addition to deepening the inequality and the democracy deficit in our societies, it will affect world food that depends in good measure on family agriculture, which according to ECLAC, FAO and IICA,[2] represent more than 75% of the production units in nearly every country of Latin America. If the youth who graduated are participants in the change of “direction” of the “sails” of cooperativism, as never before in rural history they can make family agriculture – also called peasantry and small producers – viable. Under what conditions can rural youth participate in this process of the reinvention of cooperatives to make family agriculture viable? We respond to this question throughout five sections. In the first section I review historical experiences in Europe, the United States and Latin America to show that in spite of the heterogeneity of the rural situation in Latin America and the variety of historical contexts, certain common patterns have worked against family agriculture. After understanding these patterns, in the second section I discuss how this peasant (family agriculture) crisis has been faced. To do so I summarize the idea of “heroic voluntarism” which has generally prevailed with adverse results. I go back to look at the experience of productive youth in the United States during 1870 and 1910, and I summarize the path of how to innovate, based on Albert Einstein, a method that if used by the youth, could contribute to resolving the crisis of family agriculture. After recuperating historical responses to the crisis and a referential framework for innovating, in the third section I discuss the conditions under which the youth and their parents could build bridges in pursuit of this innovation. In the fourth section, I show concrete cases of the type of innovations that lead to the reinvention of cooperativism. And in the fifth section I list guidelines about how to generate a cooperative movement hand in hand with the youth.

  1. Crisis in family agriculture

The waves of the sea and the current of water under the waves tend to go in opposing directions. So goes economic growth and representative democracy in Latin America, where the military dictatorships were left in the past, while family producers are pulled by the “current” of dispossession. Time and time again the peasantry (currently called family agriculture) in the world has been at the point of triumphing in the face of this dispossession. What has made the laws of the elites unassailable? What has kept the peasantry from charting their own farm and industrial path? In this section we briefly review the situation of the peasantry (or family agriculture) in Europe, the United States and Latin America. We do it to surprise ourselves about what concurs in the conditions that oppose the peasantry through the crop lien system, usury and trade mediation, which have been dispossessing them of their resources, turning them into proletarians and expelling them from their places.

1.1. In Europe and the United States

In Europe industrial capitalism was imposed, and dispossessed peasant families of their lands, which turned them into proletarians so that they might work in industry, which they opposed with thousands of forms of resistance. Part of this resistance was the emergence of cooperatives in England with textile workers, as well as cooperatives in Germany in the decade of 1840 with Hermann Schulze-Delitzch, in the decade of 1850 with Friedrich Raiffeisen, and in the decade of 1860 with Wilhelm Haas, cooperatives which in part were a reaction to the failed revolution of 1848-1849 in that country, and mostly to the suffocating economic laws. Raiffeisen, for example, found a relationship between poverty and dependency on usury and on commercial mediation, and argued that to overcome poverty that dependency had to be overcome, which is why he promoted cooperatives under triple S: self-help, self government and self responsibility.[3]

A closer picture we have in the United States. After the Civil War there (1861-1865), the industrial and commercial elite – between 1870 and 1930 – destroyed the hopes of the peasantry organized into cooperatives. What happened there? Lawrence Goodwyn[4] describes that the Civil War, accompanied by economic “prosperity”, was followed by a period of stress under the “new rules” of trade. In the face of these “hard times”, the peasantry had to “work even harder”. Since this did not turn out well, millions of families migrated to the western part of the country believing that with “hard work” on virgin lands they would generate more income than debt. That did not work out either. They realized that the rules of trade in Kansas and Texas were the same as those in Ohio, Virginia and Alabama. Rosa[5] described what was happening in the United States:

Such are the characteristics of the domination of capital in the world. It expelled the peasantry from England (after having left them without land) to the Eastern part of the United States; from the East to the West on the ruins of the economy of the Indians, to turn them into small producers of merchandize; from the West it expelled them again, once again ruined, to the North; ahead of the peasantry went the railroads, and after it, ruin; capital always went before it, as guide, and capital followed behind it to finish them off. The general scarcity of farm products has followed the great drop in prices in the last decade of 1800, but the small North American farmer has obtained as few fruit from it as the European peasant.

Figure 1. Framework of the crop lien system in the United States. (1860-1930)

What rules? The crop lien system backed by laws and the economic power of the country. That is, a merchant manages two prices, one for cash and another on credit; a producer family is not able to buy with cash, which is why the merchant provides them with food, inputs and tools on credit, to be paid with the harvest of cotton at implicit interest rates between 100-200%. The harvest arrives, the merchant is paid with cotton, and the family generally is left in the red. In the case that the producer family lacks land and/or mules, the landowner rents them out to them and, in coordination with the merchant, are paid with the harvest. For the next harvest the merchant provides credit again, this time the family leaves their property mortgaged. In the second, third or fifth year, the merchant is paid with the property.

This system was part of the mediation and national industry structure. Industry provided the inputs and tools to the intermediaries, and they in turn to the producers on credit. Those red balances got worse, because the cotton buyers in England turned their purchases to Egypt and India, in other words, the producer family was suffocated by the nefarious “embrace”: cotton prices fell and prices of inputs and tools for growing cotton rose. If the family did not raise cotton, they were not given credit; if they planted cotton, they had to depend on agro-chemicals. This system, in addition, was backed by laws of the State and by the economic power of the elites behind industry and commerce.

With these mechanisms the concentration of land and industry increased, as well as corporate centralization and the policy of the United States under a cover of being “democratic.” Something similar had happened in Europe, on the one hand, they extracted wealth from the peasants and turned them from farmers  into their workers, because they withstood better the harsh and long hours of work in the industries than the urban people did; and on the other hand, they created resigned behavior in the population, by making them believe that these situations were natural, that their luck was due to the fact that they were “lazy”, “insecure” and “backward” and that things could not be changed.

1.2. In Latin America

Even though the mechanisms of dispossession varied from region to region, and within each country, there are certain common patterns. “Peasants are like stones, we are bouncing downhill”, said Félix Meza, a peasant from the agricultural frontier in 1991 (Wiwilí, Nicaragua). Based on the harsh rules of trade, from the metropolis that demanded meat or sugar, to the mountains, the pressure of the “domino effect” was felt on the purchase of land, from the wealthiest to the least wealthy in cascade. This means that a peasant family would stay in a place for an average of twenty years; then they would leave the land to their children, who would sell it and go farther into the mountains to expand their land area. This history repeated from generation to generation has intensified in the last thirty years, because the amount of “virgin lands” has been dramatically reduced, which has expelled the rural youth toward the cities and outside the country.

Figure 2. Crop lien system framework in Latin America, XX and XXI Centuries

Source: Author´s elaboration based on field observations in countries in Central America

It seems like this anti-peasant system of Europe and the United States is pretty similar in Latin America, with the respective variations that each context brings to it. We will explain this in terms of products, labor and land. With products, the trader buys coffee futures during “times of silence” (months of scarcity) at half of the market price, to be paid with coffee when the harvest arrives.[6] With labor, large estate owners and companies tend to get their permanent workers indebted and ensure themselves of temporary workers for the next harvest. For example, a family receives a loan during the “time of silence” for which the woman (single mother or wife of the peasant) will cook on the large estate serving the workers 16 hours a day for an average of $6 dollars a day during the coffee harvest; in contrast, without that debt she could make $6 working 8 hours a day in the harvest itself. With land, even though land purchasing continues, for some crops like peanuts, tobacco and sugar cane companies tend to have the peasant families rent them the land, which after a period of time is left useless because of the excessive use of intensive technology (mechanization and agro-chemicals). It is a system that provides resources for the short term and erosion in the long term, makes the payments evaporate quickly, and the families get indebted and are systematically dispossessed.

These rules are made more harsh by the nefarious “embrace” of peasant product prices that are going down, and the prices of agro-chemicals that are going up; and by the “pliers” effect, on the one side, the system of commerce and on the other side, the extractive system of natural resources that in many cases goes hand in hand with criminal organizations. This situation is taken advantage of by intermediaries to get them indebted around one crop, with increasingly mechanized technology and dependent on chemical inputs. It is a system that leads to mono-cropping. In fact, for centuries big businesses have moved on these rails, first with sugar cane, then with cotton, cattle, coffee, peanuts, sunflowers, soy beans, African palm… This system of mono-cropping has been permeating into peasant families because the financial and agro-chemical industries also condition them to that. What is noteworthy is that a good part of the cooperatives and the so-called “fair trade”has moved along these same rails.

Consequently, the concentration of land, natural resources, industry and commerce, like extractive concessions, are on the increase. They are doing it backed by the State, legitimized by the Church, and with universities that educate the children of peasants with their backs to peasant agriculture. In this way, hierarchical structures combined now with neoliberalism impress a resigned, providential attitude, and with an awareness of believing themselves to be free. This is the order from which orientations are issued for peasant families.

  1. Heroic, deliberate and innovative voluntarism

How can these “harsh rules”, erected by the elites and internalized by families, be confronted and overcome? For the last thirty years Raul Zibechi[7] has described several social and political movements that have emerged in Latin America with certain differentiating characteristics: assemblies, youth, communities and greater flow of people in their leadership, and in terms of the rural situation, they deal with movements against extractive and mono-cropping – colonial inheritances. Years later, nevertheless, Zibechi[8] himself criticizes some of those who went on to assume Governments and turned against their origins, and argues for movements to be alternatives to the State. In retrospect, the history of humanity is full of rebellions and demonstrations, for example, the student movement of the 1960s where the students believed they were influencing the inherited structures of power and privilege,[9] rural uprisings in past centuries in Europe,[10] rebellions that were put down by institutionalized violence or coopted by elites.

Why did these rebellions fail? In the previous section, we delved into the system that opposed rural families. Now we will understand, from the side of the rural families, the structures that sustain their resignation and we will describe an outstanding cooperative peasant movement.

2.1. Heroic voluntarism

Andrés Pérez-Baltodano[11] describes how the youth of the new millennium in Nicaragua are repeating the elders of the 1980s, and detected that, after two hundred years of wars and revolutions, Nicaragua continues being one of the most backward societies of the continent. This history of failures, according to the author, is explained by a trinity of ideas: Providential God the father, the resigned pragmatism offshoot, and the heroic voluntarist spirit (see figure 3).

Figure 3. Pillars of societal behavior

Source: Author´s based on ideas proposed by Pérez-Baltodano (2013).

The notion of providentialism offers a vision of history as a process controlled by a God who decides everything, where people deny the need for politics: i.e. human decisions that generate change. Pérez-Baltodano (2013) makes a distinction between general providentialism and meticulous providentialism. The former explains the history of Europe where what prevailed was the idea of a God as a force that did not block the exercise of freedom, and that “free will” existed. It is a process through which the absolutism of God in history was ended, and where the Enlightenment of the XVIII Century expressed the idea that people make their history and their destiny. Meticulous providentialism, in contrast, was a vision that prevailed in the Middle Ages, when it was believed that God decided everything and nothing escaped his control. The author concludes that this latter notion dominates Latin American society today.

The notion of resigned pragmatism comes from the providential culture and has history seen as a game of chance where the only thing left is to respond intuitively. It is a vision of politics as the ability to accommodate oneself to the circumstances defined by power, accept that reality, not be scandalized by the injustices, and abandon any willingness to transform that reality.

Finally, the notion of heroic voluntarism provides a vision of activism (action over reason) to transform reality. It is thought that events result from fortuitous causes and that will prevails over understanding. It is an impulsive, emotional voluntarism that depends on physical force to determine history, like mechanically copying European political ideologies without knowing the philosophies that they came from. This is what Edelberto Torres Rivas[12] calls “activism without theory” in his review of the revolutions and democracies in Central America.

This trinity of notions explains the failed uprisings and movements. With a providentialist mentality, where we deny human decisions as motors of change, we adapt ourselves to the reality imposed by power, and we react spontaneously to events. The absence of reflection and study has taken our societies to not transforming their realities, and to the fact that the different expressions of resistance ended up failing. The consequence of this would be that the providential and resigned mentality is even more accentuated.

2.2. Challenge to the century old structure

Probably this trinity of notions also influenced what was described about the United States, particularly the resigned pragmatism and heroic voluntarism. In fact, Goodwyn[13] notes that the first reaction of the producers was political insurgency: it did not work for them. They learned that lesson and organized a movement based on cooperativism. How did it go?

We said that after the Civil War (1861-1865), peasant migration to the west of the country was a victim of the harsh rules of trade prevailing throughout the country. In the face of this, in the decade of the 1870s some producers shared their problems, and several youth, with and without formal education, began to read books on the economy to explain for themselves why the “times were hard” when the entire country believed it was living a time of “economic progress”. So some youth began to speak strongly about their “right” to say that the things that were happening were “not right”. So they formed the Producers Alliance, and from there they formed self help economic organizations, cooperatives, and over the years even a political party.

This movement was noteworthy by the decade of 1880, even though their effects were not felt in the change of the crop lien system described above, rather the crisis continued to get worse. Nevertheless, producer families did not give up, their organizations multiplied and they grew into a massive and coordinated movement that spread throughout the country. Millions of people believed that the “new day” would come, that cooperativism would lead to the democratization of the economy. This is the movement that in the decade of 1890 was known as the “populist uprising.”

Knowing that the agrarian uprising had been aborted by industrialized societies, how were they able to achieve this massive and sustained character for nearly two decades? According to Goodwyn,[14] it was a sequential process. First, the formation of the movement: they studied their situation and had interpretations contrary to the dominant narrative. Second, entry into the movement: ways were created so that people in a massive way could join the different forms of cooperative organization that they created. Third, the education of the movement: they did a social analysis of the process, which created collective self confidence and internal communication. The principal basis of education was the cooperative experiment in itself and its opposition to the commercial stores, distributors, banks, railroads, land companies, etc. The idea was to cooperate, not compete. Fourth, the politicization of the movement: the process of education led them to generate new ideas, share them massively, and organize independent political actions as a possible reality, that led them to propose the democratization of the national monetary system.

Training, gathering, educating and politicizing is how they formed that massive agrarian uprising. The gradual evolution of the cooperative was the basis of that uprising. Thus the Producers Alliance was able to buy and sell cotton, increase the number of itinerant speakers, form different cooperative expressions, acquire machinery and infrastructure to economically scale up, have newspapers and a political party. It was a factory of indignant leaders with the capacity of articulating their ideas and communicating with producers in their own language.

That massive movement, in spite of harvesting success and lasting more than twenty years, collapsed in the end. They failed above all for falling into the same liberal logic of their time, economies of scale, mono-cropping and for the tendency toward the hierarchicalization of the movement. They left us some lessons: a movement generated by youth and producer families themselves, and the political awakening of the youth to the extent that they studied their realities, experimenting with cooperative forms and reflecting on their processes, elements that allowed them to build a shared vision of democratizing the economy through cooperativism – without using violence.

2.3. Innovation possible from the youth

If we return to current Latin America, which is a witness to the boom of youth with more formal education, along with more intensification of the rules of the commercial-financial system opposed to family agriculture, how can the youth reinvent cooperativism which could transform agrarian realities?

We begin with the crisis of family agriculture in Latin America, and we include the migration of youth from rural areas. Then we identify the “hard commercial and extractive rules” in the history of Europe and the United States, as well as in current Latin America. We verify that these processes were resisted, but that in the end capitalism was imposed. To the question as to why the agrarian uprisings failed, in addition to the harshness of the opposing system, with the focus on Latin America, we argue that it is due to a providential and resigned mentality, and wanting to change the system through the force of pure will. Nevertheless, we find the agrarian revolt of the United States based on cooperatives, where they studied and self-studied (not just voluntarism), they envisioned democratizing the economy (overcame resignation) and built their own history (not providential). On this basis we now work on the innovative role of youth. 

Figure 4. Innovative capacity

Source: Thorpe (2000).

 

We take this step supported by Scott Thorpe.[15] He analyzes how the genius of the XX century, Albert Einstein, discovered the theory of relativity. Einstein was 23 years old when, while working as a washing machine electrician, observed that the speed of light and time seemed to be the same velocity relative to the observer. This problem had not be resolved because Isaac Newton, three centuries earlier, had decreed the rule of absolute time: time did not pass quickly or slowly, it was a constant of the universe – because God is behind the universe. Scientists never challenged that rule. Einstein, in contrast, broke it. Thorpe finds something more, after that innovation: Einstein spent his life establishing it and did not achieve another innovation, he fell into the rule of certainty. So the elderly Einstein said: “God does not roll dice with the universe”. The experience of Einstein is not an exception: the younger a person is, the less they know, and more capacity they have to solve problems (see Figure 4).

Far from voluntarism, Table 1 summarizes a methodology for innovating, which interests us for the youth. A “problem” is structural, whose presentation seeks to satisfy real, felt needs. From Einstein we learn that each detail can be a space for great ideas (for example, when a washing machine is repaired). If that problem was not resolved, it is because there are rules that keep it from being resolved, that is why, as Einstein said, that a problem cannot be solved with the same thinking that created it. While identifying those rules, we detect them in our own minds. We break them. Then the conditions are ripe for solutions to emerge.

Table 1. Methodology for innovating

Problem Rules Breaking rules Solution
-Constructing a problem to find solutions.

-It is a “Gordian knot”, diffícult to untie

-It is something cognitive: it causes problems, it creates crises.

-If there is a problem, there is a rule.

-The rule is like the rails on a train: if you go where they do, fine; some solutions are not found on those rails

-They seem right, but they are old rules that block the solutions that are outside of those rules

-They seem to be unbreakable rules, which they are if we believe then to be so.

-Behind the rules are ideas.

-On discovering the rule, you have to find those protected beliefs as “sacred” in the mind itself.

-“Common sense is the series of prejudices acquired by the age of 18” (Einstein).

-The secret of the genius is discovering those rules of common sense, see them as absurd and break them.

-On breaking the rule, solutions emerge.

-an idea appears different to the idea that started the problem.

Source: based on Thorpe (2000).

The challenge in Latin America is that the youth push for breaking the rules, and generate new thinking to find solutions to the viability of family agriculture. Let us go there (see table 2).

Table 2. The innovation that youth can work on

Problem Rules Breaking rules Solution
Cooperatives coopted by elites subject their members to mono-cropping and are submissive. -“Change comes from above”: resources, laws, market salvation and directions.

-Thought: democracy functions if a minority directs it; belief that “we are nothing without a patron”.

-Providential, resigned thinking and actions based on voluntarism. A member awakens.

-New thought: the cooperative is a means of resistance to the dispossession when it responds to its members.

-Studying and self study

-Organizing the cooperatives as schools for learning and innovating.

Source: author.

Family agriculture is in crisis, more and more corralled by the economic system, fiscal policies, large estates and companies that rent and buy land to expand the mono-cropping system, and by extraction. Families can revert this corralling if they organize into cooperatives, but they have become functional for the system that opposes the peasantry; they are like private enterprise that responds to markets, while they neglect their associative side; they are committed to mono-cropping; they take on the logic of maximizing profits and neglect the redistribution of their earnings; they tend to concentrate physical investments and centralize decision making; they are guided by hierarchical structures of elites who manipulate markets and States.[16] This type of cooperatives are given legitimacy by aid agencies, States, fair trade and the International Cooperative Alliance that emphasizes mega cooperatives. The rule that moves them: “Changes come from above”. Nevertheless, if these cooperatives reinvent themselves and recover the original meaning of opposing industrial capitalism (England) and usury (Germany), commit to democratizing the economy (United States between 1870 and 1910), to the extent that their members govern them through their organs, they could be the best means to make diversified family agriculture viable, and consequently a new society with less inequality. This is possible if the youth contribute to their reinvention. How? That is what the following sections are about.

  1. Generational disputes

If an increasing majority of youth have higher educational studies and the capacity to innovate, why are the youth still not participants in this process of reinventing cooperatives? There are three structural conditions in dispute that explain it.

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. Zygmunt Bauman,[17] in his studies on inequality observes that the generations of Europe after the Second World War, supported by redistribution policies, looked forward to improve, while today the “neither nor” are the first generation that do not manage the successes of their parents as the start of their career, but rather ask themselves what their parents did to get ahead. These youth are not looking forward, but backward.

Up until some years ago in rural Latin America, parents received their inheritance and would go farther into the mountains to expand their area (buy cheaper land or clear virgin land) so that, later on, they could leave that land to their children, and these in turn to theirs. The inheritance was the starting point for each new generation. But now the agricultural frontier has reached its limit. So, on the one hand, parents are not expanding their areas to leave them, nor are they inculcating their children with farm culture. Because in contrast to the years prior to 1980 when the children grew up working on their farms and homes, their children now spend their childhood, adolescence and a good part of their youth studying, and on the other hand, this group of youth are not finding jobs in their majors, nor do they like the agriculture of their parents. And in those case where they do, they run up against a wall: “They are not leaving me an inheritance because they say that the “pig sheds its lard only after it has died”.[18]

Table 3. Profitability of corn in dollars (Honduras, 2017)

Units Price Dollars
Production (qq) 24 12,9 309,0
Costs 302,1
Preparation (pd=person days) 16 5,2 82,4
Planting (pd) 4 5,2 20,6
Seed (lbs) 25 0,2 4,3
Fungicide (pd) 1 5,2 11,2
Fungicide (lt herbicide) 2 5,6 20,6
2 fertilizing (pd) 4 5,2 20,6
2 fertilizing (sack fertilizer) 4 21,5 85,8
Bend and harvest (pd) 12 5,2 61,8
Blowing 2 5,2 10,3

Source: Author based on cases of producers in Honduras de Honduras.

The second condition refers to the perspective of the knowledge acquired by the youth in higher education. In 2015 according to a report from UNESCO, 98% of the youth of Latin America study. When they return to their parents, many do economic calculations and conclude that what their parents are growing is not profitable (see table 3 for corn). Underlying this acquired knowledge is a perspective contrary to the peasant economy: they consider the crop as merchandise isolated from the production system where it grows, and outside the rationale of the family that produces it. The same thing happens with other crops, for example, they study coffee or cacao and ignore the citrus trees, plantains and forest trees that are in the same area as the coffee or the cacao. These assumptions are in line with the perspective of companies who embrace the mono-cropping system, they bet on volume based on intensive technology and maximizing their profits. In other words, in spite of the fact that 75% of the production units are family agriculture, universities are teaching the logic and technologies of this remaining 25% of modern agriculture, which is why the youth come out deaf and blind to that 75%. The paradox is that the peasantry pays for the studies of their children, and yet their children learn how to belittle the culture of their parents –“you raise crows and they take your eyes out”, as a popular expression goes.

These facts are contested in families. Children love their parents who are getting older, but no longer for their decisions and actions. Parents and children are trapped by an old belief that they themselves repeated. “Son, go to study so that you might not be like me, a peasant” and “a pen weighs less than a shovel” say the parents; “I did not study to go back into the weeds” say the children. By “weeds” they understand family agriculture as equivalent to backwardness, a seed that the university planted in their minds. By “shovel” they assume that agriculture is a thing of physical force, of muscles. When the children do not find jobs in the majors that they studied, the parents get frustrated on not being able to set them on their future, as their parents did for them when they inculcated them in how to think and work on the farm. Now the world of digital technology in which the youth swim is foreign to their parents: “The more they study the more complicated they talk to me.” The youth and their parents do not understand that in family agriculture today the most important muscle is the brain. Distrust builds a nest in their minds; “If I leave him an inheritance, he does not know how to work the land, so he will sell the land and leave, he is like the oxen, if we do not know how to manage them they get tangled up”, and “unoccupied mind is the devil´s workshop”, say the parents; “if I stay with my parents, I studied for nothing” and “old people don´t change” – say their children. The paradox is that the youth reject the vertical decisions (heroic voluntarism) of their parents, but in time reproduce them (resigned pragmatism) for their own children, as happened to their parents.

If the youth along with their parents loaded themselves up with patience, a dialogue could be helpful, like what we reproduce in what follows with a Honduran family. I asked them, “Why are you devoted to corn and beans?” With a millennial patience, the family stripped back the husk, “we plant corn, beans, chicory…because we learned it from our parents to feed our families, not to accumulate money”. Yes, the times have changed, and you have to plant what is profitable (I react). They respond: “planting corn we eat tamales, montucas, atol, corn on the cob, baby corn, tortillas, new corn tortillas. Could we eat all that if we quit planting corn?”, “the protein from recently harvested corn does not compare with that anemic imported corn”, “the tortillas that we eat, have nothing to do with those corn meal tortillas that look like ears”, “with the beans we make green beans, bean soup, cooked beans..” I hear, I like what they are telling me, I understand that corn is more than the tortilla, and the beans are more than ground beans. They continue: “When we now have corn and beans we feel relieved, then we look for plantains, eggs…we go from mouthful to mouthful”. And then “the beans that we are not going to eat we sell, like the other products, to buy other needs and to pay for the studies of our children.”

And profitability? I insist. With a cold stare and face tanned by the sun and the cold, he explained to me: “If we do not plant corn, we would have to buy tortillas. We are six in the house and I need thirty tortillas for each meal, that is 15 lempiras (L); if I plant we eat twenty tortillas because the tortillas we make are thick.” Time to do the numbers so that we convince our parents: 1) from 1 lb comes twenty tortillas, 3 lbs per day for the three meals, 90 lbs per month, in other words 10.8 qq per year, the remaining 13.2 qq from Table 3 are for seed, the chickens and the pigs, from the chickens come between 6-10 eggs every day and 2 piglets every 6 months; 2) if a family does not plant corn, then a family of six needs L16,425 ($714 dollars) to buy tortillas in the year, another amount for atol, eggs and pork. I begin to wake up. On looking at my notes, table 3 and the numbers they give me, I understand that table 3 does not explain that the corn is linked to smaller livestock and also leaves out the corn on the cob, baby corn, new corn tortillas…

To save what the universities have taught us, I ask: And if you only plant corn like the wealthy? “To buy tortillas and what I told you, more in months when money is scarce, I would have to go into debt. The wealthy want that in order to hire me as a peon and pay me the salary that they want. I would end up selling this land, and all the trees would disappear, as you see where there are sunflowers, soy beans, sugar cane…” They say that it does not produce, but it does” – the roar of the wind is heard because my “sails” have changed direction. Where did they learn that? “Listening and working on the farm with my parents.”

The third condition refers to the rural organizations that tend to express the excluding rules and mentality of the elites. It is common to find cooperatives whose members average 50 years of age. If the life expectancy of the countries of Latin America is around 75, the paradox is that the organizations are getting old while they are closing themselves from the young – particularly young women. They make a condition that you have to have land, they support them only in one crop and only in farming activities. A tacit rule is: “organize so that when you are old you can forestall the youth”. In addition, international aid agencies promote the idea of “generational replacement”, an approach that assumes “replacing the old people”, which clashes with the machista culture of organizations, where men “replace” their wives (discard culture), but as elites they do not accept being “replaced”. Explaining these rules can lead to the fact that the cooperative and the member families rethink themselves.

The three conditions are related and are being contested. Studying them is rethinking them in order to innovate in any area of the family, farm, home, cooperative, universities, organizations, etc (see table 4). The challenge is explaining those rules that underlie the problems, and realize that they respond to hierarchical and neoliberal thinking, identify them in our minds, and open a window toward new, more democratic ideas in families and organizations, and in this way glimpse solutions for a family agriculture that would not depend on land, be internally autonomous and consider the cooperatives as spaces for dialogue.

Table 4. The path for the youth

Problem Rules Breaking rules (underlying ideas in our minds) Solution
Without land there is no farm nor are you a cooperative member. “Pig sheds its lard after it dies”. -Agriculture is done when one has land.

-If I give him land he will abandon me (discard).

-More than land, he inherits the hierarchical form of decision making.

Doing agriculture without depending on the land.
Anti-peasant education. Modern agriculture is the future.

Private enterprise is development.

-being a peasant is being backward; family agriculture ia a matter of physical strength.

-Modern agriculture is capital, big companies, mono-cropping.

-Research, basis for autonomy in university and family.

-Dialogue with capacity to listen to one another.

Aging cooperative with a wall for the youth. Cooperative is for people with land; cooperative, without having members, defends its assets. -Cooperative reproduces who we are, rather than protects assets, we inherit the rule of discard: change her for someone younger, but without letting go of decisions (posts). -Cooperative: space for dialogue between generations and people of different sexes

-Member family creates their future.

Source: Author.

  1. The strength of the youth and their importance for reinventing cooperativism

Our vision is democratizing the economy, which would expand family agriculture, and to do so, the strategy is the reinvention of cooperatives. This means building cooperatives that grapple with the economy to the extent that they are schools of learning for making rules and following them, for innovating and training themselves as a team. It is the path of autonomy and citizenship, possible if the youth are participants. Here we pinpoint ways for creating those spaces from the cooperatives to the youth, and viceversa.

4.1. From the cooperatives, spaces for the youth

Box 1. Conversation with the administrator

 

-How much is your salary?

-Administrator: I do not have a salary, nor do the board members. We rotate.

-I do not believe you. Why don´t you have a salary?

-Producing milk generates good income for us, more than charging for administrating the cooperative.

We start from a concrete experience. The Colega cooperative in Colombia, with members who are ranchers, collect and sell milk. “We are in second place in productivity, behind New Zealand”, they say. These words have backing: they are efficient members who innovate in the management of the livestock, they zealously care for the forest that surrounds them, and their board members administer the cooperative as a service.

Box 2. Conversation with a young member

-You were a little Colega, pre-Colega and now a member.

-Yes.

-Why did you stay here?

-My friends left for Bogotá to study and I took the risk of staying. There, they did not study and they tell me that they do not feel safe going out at night. In contrast, I, studied here and I feel completely safe visiting my friends at night.

This cooperative organizes two groups with the children of their members: the little Colegas who are under 14 years of age, and the pre-Colegas who are between 15 and 18 years of age. Each little Colega is given a calf to care for, the cooperative gives milk to the child as provision for the calf, and the family of the boy or girl provides the inputs for the calf. When the little Colegas become pre-Colegas, because they cared for and increased the number of their calves, the cooperative gives them scholarships to study and benefits as if they were members, because they already participated in production like their parents. When they reach 18 year of age they become members (see Box 2 on the experience of becoming a member, and the externality of security that it generates in the community).

The cooperative, in addition, seeks to create a sense of pride in being a member of the cooperative. In the school they teach a course on cooperation. Each year the cooperative organizes events to which they invite the little Colegas. So from an early age they are cultivating being a future “rancher-member”.

What do we learn from this experience? In contrast to the “generational replacement” a cooperative can form new members with the children of their members and conceive this process as an economic and social investment that energizes the cooperative and the community where it is located. In contrast to large companies where one learns to do a job, in small organizations, like cooperatives, youth learn to pursue their dreams with deep passion. From here, if a cooperative, without waiting on the members leaving land to their children, dedicates 1% of its earnings to provide them an asset (a calf, $1 a month of savings, a pig or a pair of chickens) as an incentive to a child so that, accompanied by the cooperative and the member families, they are trained as people committed to family agriculture and being cooperative members, that cooperative will be planting its own future. And if that policy is supported by universities that teach the perspective of the 75% of the producers of family agriculture and 25% of companies, we would be turning the direction of our “sails”.

4.2. Spaces are opened from the youth

Also the youth should open up spaces. They are the ones who, in spite of having less knowledge, possess more capacity for solving problems. Through what we learned, these steps should be taken to the extent that we discover our providential mentality of “it is not the lightening that kills us but the stingray”[19], adapting ourselves resignedly to the power of structures where “for money even the monkey dances” and the voluntarist impulse that pushes us to solve hard problems spontaneously “just pure man style” or “pure talk” (based on hearsay or threats of force). The peasant experience of the United States in the 19th Century gives us a guide. Their uprising for many years implied organizing into different forms of cooperatives. Youth started it who were looking for books to read and study their realities, on that basis they did not mobilize frontally against the State, but reflected strategically and organized cooperatives. According to Goodwyn,[20] they almost achieved it. Probably the economy of scale logic, concentrating physical investments, competing with private enterprise on an equal basis, the hierarchical structure that permeated them and had roots in the families, ended up undermining their path. But it constituted a good starting point for the youth of today: studying their realities, reading, organizing and continue reflecting on their strategic prospects.

In what follows, we provide some more steps: recover the written culture for the cooperative movement, that the youth organize into different cooperative forms, innovate in the area where they find themselves, and disseminate their learnings to produce a real movement.

4.2.1. Bridges between oral and written cultures

Peasant families are based on oral traditions, transmitted from generation to generation, while the youth of today pass through the academic classrooms based on written culture. Combining both traditions, instead of one replacing the other, is a promising path.

Let us challenge this apparent duality: the oral tradition is not so oral, nor is the written tradition so written. The oral tradition is not just the transmission of cultural expressions from parents to children, but about why and how to produce the food and keep a family. This tradition is also expressed as living hierglyphs through a farm (diversified crops, agriculture-forests), garden (“the green thumb of my Mom”, referring to horticulture and medicinal plants), cornfield, diet, design of the home and idiomatic expressions that reveal perspectives. The written tradition does not seem to find a home in universities, because most of the universities in Latin America do not do research for the formation that they offer, and because, according to Torres Rivas,[21] the “faith in reason” of the Enlightenment is replaced by the “postmodern and neoliberal logic” where “one walks from the academic to the role of the consultant”. Consequently, the youth who graduate have little written tradition and investigative spirit.

Table 3. Strategic Conversation between parents and children

-My parents taught me to plant corn and beans, and that will kill me!

-Dad, times have changed, why don´t you plant other crops?

-For you who have studied talk is easy. I am a peasant

-And how is it that my grandparents decided to plant corn and beans?

– Daughter, for food, if I have food I am not going to be a worker for a bad salary, I can decide to or not, that is how your grandparents were

-This is a very good reason. How did my grandparents plant corn? Why didn´t they plant cassava which also is food?

-We should never be without corn. My parents took a piece of land here and there, they looked where it was better for corn, plantains…they went around testing it

-They taught you to study the land and thus decide what to plant…

-I used to observe them. I would listen to them talk in their bed.     They talked with the neighbors. At times they would tell me “I brought this seed, test it to see if it sprouts”. “You have to plant several things so that the soil gets fed”

 

 

To combine them requires unlearning. Table 3 is a dialogue from the peasant side. There are three moments to which we provide color to help understand it. In the first moment is the belief that being a peasant is to be a planter of corn and beans, believing that that is the inherited knowledge. When the daughter questions him, her father shuts her down, “I am a peasant”. That belief, reduced to “what” (crops), blocks the possible learning of both of them. In the second moment, the daughter does not give up, she asks again. There is when the family wakes up, is unblocked: they had learned how to cultivate autonomy, study the soil and experiment. In the third moment, the oral tradition is undressed: observation, conversation, curiosity, experimentation, relationship to the land. This type of strategic conversation is behind a variety of diversified farms or a stew of food. The best of the grandparents is capturing the “how” they taught and how their children learned. And that is reviving them.

Table 4. Strategic conversation between parents and children II

 

-Mom, I feel bad, I did not get a job as an engineer.

-Work here, son, we need arms on the farm.

-I am not a peasant, I am an agronomist!

-Don´t you think it would help you to practice being an “agronomist”?

-I studied modern agriculture to think big

-What is “big”

-Plant just one crop, mechanized, agrochemicals…

-And who works on that?

-Companies, large estates, businesses, corporations…

-Aren´t they the ones who divert rivers for their rice, they leave areas without trees and unusable land where ever they go?

–Noooo, yes, but …

-They won you over without having to pay for your studies, we being backward and paying for your studies, lost you…

-Ah Mom, I don´t know what to tell you

From the other side, the youth move about self secure for having studied in universities. The attached table expresses another three moments. In the first, Mom and son coincide in that the “agronomist” looks for work, while they need “arms” on the farm. This idea of agronomist blocks the possibility of seeing opposing realities like the peasantry versus large estate owners, production systems on farms versus mono-cropping. In the second moment, the Mother asks and makes the son strip down what he learned in the university. In the third moment, what modern agriculture consists in is explained, and the curtain falls dramatically: the “backward” ones paid for the studies so that the companies might have another engineer. The security of being an engineer at the beginning of the conversation is replaced by the doubt: “I don´t know what to tell you”. Mother and son are awakening.

This unlearning gives way to re-learning. Retrospectively, we started from the duality of the oral-written tradition, then we set out to hold strategic conversations between children and parents where both sides are awakening. Notice, the two tables are like the notes that we take in our notebooks, while the analysis is what we are writing alongside. This re-learning is the bridge between the written culture and the oral culture, which we argue is what the peasant way in Europe and the United States lacked, and what we can undertake in Latin America. This bridge implies: observing, questioning, conversing and analyzing attitudes in the other person and in oneself (for urban youth these steps are possible through immersion).[22] To that we add what was learned from the agrarian uprising in the United States: reading, studying the realities of the harsh rules, reflecting massively with the peasantry, and organizing cooperatives as a result of those studies.

Writing is thinking, accumulating knowledge and sharing it. “Papers talk”. In this process the belief tends to appear that “studies are not done without money”, which assumes surveys, laboratories, and people with doctorates. If there is a will, there is a way. Youth and people of any age can buy a notebook and pen for 1 dollar to take notes, find the veins and follow them. Writing is combining pen and shovel with the greatest stubbornness in the world. From there, what is written are living hieroglyphs: published articles, farms, gardens, financial statements, communities, plates of food, webpages… Taking notes begins the circle of innovation.

4.2.2. Innovative role of the youth in the details

The fact that the youth can build bridges between oral and written traditions opens them to the field of innovating in any area – farm, garden, store, community, family, cooperative. Here we describe two groups of examples where it is important to innovate.

The first group is the farm. If organic agriculture saves us in chemical inputs and feeds the soil in a lasting manner for good production; if bee-keeping, in addition to producing honey, contributes to reordering the farm and increasing its productivity; if the combination of agriculture and ranching is one of the successful veins; if agro-industry in communities adds value to products, knowledge to families and expands social relations in the community; if poultry and pigs are a food source and generator of income; if the garden with horticulture and other plants are food and medicine for families; if stores generate daily income and provide a service to communities bringing them products and selling their products…What innovations can be worked on in these cases and under what conditions can they be expanded? If in the last 30 years Governments and international organizations have failed in their support for gardens, bee-keeping, poultry raising, organic agriculture, agro-industry and commerce, then innovating in these areas is a real challenge.

The second group is the family. The peasantry are made up of decentralized and extended families, while hierarchical at the same time. Elizabeth Dore[23] talks about “patriarchy from below” and refers to the fact that the man in the house is the patriarch, who keeps their financial accounts and centralizes decision making. This patriarchal relationship from “below” is transferred to cooperatives where the president or the manager keep the financial accounts and centralizes decision making. This is true also in community and other organizations. If the family frees itself from the hierarchical institution that forms it, the entire family will review their receipts, and recognize that in that they have an instrument to demand their rights as members.[24] This will have a positive repercussion on the family, cooperatives and other spaces where the members of the family participate: Church, sports, municipal government…It will contribute to social, economic and political equity. Thousands of trainings and sermons have not made a difference in families and organizations. How can this patriarchy from below be transformed which Jesus already challenged 2,000 years ago? What can be done so that in the family the financial accounts are managed by the entire family? I mention this issue of the receipts because it is a detail, so that, like Einstein, the youth might focus on the details and innovate.

4.3. Youth as counterbalance in the cooperatives

These innovations can be facilitated in cooperative spaces. There are some like the Colega Cooperative that systematically include the youth (4.1), while in most the youth lack the instruments to insert themselves in the cooperatives. By proposing to reinvent or create cooperatives with a new design, we are suggesting a role of counterbalance for the youth. This role is a concrete instrument to facilitate innovation.

Cooperatives can reinvent themselves if the youth take on the role of counterbalance from within. In Nicaragua, we work along this line. Between an accompanying organization, like that to which the author of this article belongs, and cooperatives, we agreed to collaborate. The cooperative recognizes that its business side absorbed the associative side, and that this has caused breakdowns, and accepts that its associative side be responsible for the strategic decisions, and its business side for making them operational, as the statutes and cooperative law indicate (see Figure 5).

Figure 5. Youth as counterbalance

Source: Author´s own.

First, there is a tripartite relationship of coordination between the cooperative, financial organizations and buyers, and the accompanying organization, to ensure that the cooperative be treated as a cooperative and not as a private entity by the organizations. Second, within the previous framework, the accompanying organization prepares instruments (guides) so that each organ might function effectively; it does so to the extent that it studies it and is part of the process of change. Third, one young person per cooperative has the role of studying the cooperative, accompanying each organ while using the instruments, and ensures that the information and its analysis flow from the business side of the cooperative to the associative side, and viceversa. Studying the operation of the cooperative allows the youth to detect attitudes in play, make them visible, and propose new innovative rules. Fourth, the accompanying organization creates spaces for workshops with the youth that work on these arrangements, where each one talks about their concerns and innovations, ideas are shared and methodologies worked on about how to hold conversations with member families, innovate, write and share their findings.

Some lessons from this experience. To the extent that the youth study the reason why an organ is not functioning and how it can function, instead of only sticking to the what (statutes and cooperative law), the members see that the cooperative is a different path from private enterprise. When the youth perceive that technical language is a wall in their communication, they understand that they are behaving as technocrats, believing that they have the solution without studying the realities, then, humility gains space, they study the details of the hierarchical structure and how they give way in the face of cooperativism. For example, they understand the tacit rule of the members that “loans are decided by the person at the top”, not the rules agreed upon in the assembly, which is why they study what makes this informal rule persist – there are always reasons! This path of making the organs function according to the rules agreed upon by the member assembly avoids the common result of the work of NGOs, who tend to train leaders and “replacement” youth, who, on assuming their posts, turn into the “person at the top” under the rule of “get rid of you to put me in”. To the extent that the youth devote themselves to this role of counterbalance, the belief that they are “useless slackers” gives way to greater trust.

Box 5. Learning cycle in cooperative reinvention

Steps Content
Study Harsh (adverse) rules and bases for resignation, strategic conversations.
Self study Beliefs that control our minds.
Innovate Experiment with products (farm, stores, processing), services (credit, commerce), relationships (family, community).
(Re) organize Redesign existing cooperatives (role of internal counterbalance) and creation of new cooperatives with new design.
Share Dissemination of results and lessons.

Source: Author´s own.

There are also youth who prefer to create new cooperatives. The advantage is that they are not going to be “organized” by the State or some external organization, they are born with autonomy. The disadvantage is that they do not have external resources for their first steps. They can perdure over time if they start based on innovations that can only be carried out with the collaboration of several people. How can they be accompanied? Table 5 provides the steps, worked on here. Each one of them requires taking notes and analyzing them. It is circular: after the first cycle of study, self study, innovate, (re) organize and share, the next cycle returns to the study of the changing realities, this time self-study is about the operation of the cooperative, reflecting and looking at the world without letting it pass by, and so on successively. Rene Mendoza is developing instruments about how to observe, converse, analyze notes, analyze secondary data and how to innovate along with the youth, texts which, although they are drafts, can be downloaded by young people.[25]

  1. Sharing in the digital era

More than reinventing a cooperative, it is a matter of generating a movement for the reinvention of cooperativism. In this text we focused on the agrarian reality, but it is equally necessary to do it in other areas. How can a movement be generated? The steps of Table 5 are basic ones. Planning each innovation as Pep Guardiola teaches us, and sharing it through different media as Chef Acurio teaches us.[26] In this effort the use of webpages and social media, in addition to other written media and videos, can be paths to explore.

Inti Mendoza[27] finds that the use of webpages is still limited in organizations. The cooperatives who have a webpage are few, and of those that have them, few use them. Innovating in this area to use it as a means for learning is an pending task. In Nicaragua we are experimenting combining webpages[28] with murals in the cooperatives: the same information (minutes of meetings, financial statements, loan portfolio, innovations) disseminated on the webpage month by month, are also presented on the mural of the cooperative. On that same webpage articles are published, databases, guides for the operation of the cooperative, learning guides for the youth, accounting software, stories about how cooperatives are organized, strategic conversations, and basic information is offered on the cooperatives with which they collaborate. We look for students from different universities in the world to study the cooperatives through the webpage, because of the information that is found there and because they can be in direct contact with the cooperatives.

Social networks are another means to discuss difficult topics of the cooperatives. If a cooperative is the captive of hierarchical structures, it can be discussed in social networks. Likewise, how a cooperative constructs its autonomy, or the conditions under which women organize or are excluded from the cooperative; why a cooperative embraces mono-cropping; whether the cooperatives has policies that are excluding youth (for example, having land) or policies against machismo (for example, expulsion of a member who physically mistreats his spouse); whether the international organizations treat cooperatives as cooperatives or only as businesses; whether cooperatives distribute their profits; whether second tier cooperatives concentrate investments and centralize decision making, or whether they facilitate first tier cooperatives scaling up. These topics can be debated on social networks under the question about what is it to be a cooperative and how does the cooperative support the well being of its members?

In the digital era the youth can innovate on ways of sharing their reflections and successes. The webpage is a means for analysis, and social networks a means for informing themselves and debating.

By way of conclusion

There are three ways in which the youth mobilize for social change. One is confronting the State in the streets in a violent way, generally in circumstantial reaction to policies, acts of corruption or acts of repression. Another way is where the peasantry studies the harsh rules (commercial and/or extractive), but forgets to study their own mentality, this is the case of the populist cooperative movement of the United States between 1870 and 1910. The third way is when the peasantry studies the harsh rules (commercial and/or extractive), self-studies their mentality, and mobilizes not to confront the State, but to innovate for the peasant families who are organizing.

Throughout this text we worked on the third modality of mobilization of youth who are moved to reinvent cooperativism as a means to make family agriculture viable. According to L. David Covey, “we are in the midst of one of the most profound changes in the history of humanity, where the principal work of humanity is moving from the industrial era of ‘control’ to that of the worker of knowledge”.[29] The viability of family agriculture is possible today, based not on strength and virgin lands as in the past, but on knowledge and innovation, for which the youth can be the principal motor. The most important muscle in current family agriculture is the brain.

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Wolf, E., People without History. California: University of California Press, 1982

Zibechi, R. La revuelta juvenil de los 90. Las redes sociales en la gestación de una cultura alternativa. Montevideo: Nordan, 1997.

La mirada horizontal. Movimientos sociales y emancipación. Montevideo: Nordan, 1999.

Dispersar el poder. Los movimientos como poderes antiestatales. Buenos Aires: Tinta Limón y Textos Rebeldes, 2006.

Descolonizar. El pensamiento crítico y las prácticas emancipatorias. Bogotá: Desdeabajo, 2015.

Latiendo resistencia. Mundos nuevos y guerras de despojo. Granada: Baladre-Zambra, 2016.

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

[2] CEPAL, FAO e IICA (2014).

[3] Pineda et al. (1994).

[4] Goodwyn (1978).

[5] Luxemburg (1913), 201.

[6] See Mendoza et al. (2013).

[7] Zibechi (1997, 1999, 2006).

[8] Zibechi (2015, 2016).

[9] Ver Barker (2008).

[10] Ver Munck (1990), Wolf (1982).

[11] Pérez-Baltodano (2013).

[12] Torres Rivas (2015).

[13] Goodwyn, op. cit., 26.

[14] Goodwyn, op. cit.

[15] Thorpe (2000).

[16] Mendoza (2017, 2018).

[17] Bauman (2014).

[18] The lard is taken from the pig once it has died (been slaughtered). In rural areas of Central America this expression is used to indicate that the parents in the countryside wait until they die to leave their land to their sons and daughters.

[19] This saying relies on a play of words that does not exist in English: rayo=lightening, raya=stingray

[20] Goodwyn, op. cit.

[21] Torres Rivas (2001).

[22] See Mendoza (2015).

[23] Dore (2008).

[24] Edgar Fernández, a consultant to cooperatives, tells that he visited a member of a cooperative in crisis. Fernández asked if he had receipts. The member showed his receipts and began to tremble: “Please don´t tell the manager that I showed you the receipts”. The extreme in some cooperatives is that they have their members so subjected that they begin to believe that ceasing to cover up acts of corruption is “betraying” their cooperative, that “making demands is a thing of cowards”. A receipt is a detail. How important are the details!

[25] http://coserpross.org/spa/blog/gu%C3%ADas_de_estudio_e_innovaci%C3%B3n.php last date accessed: August 19, 2019.

[26] Oppenheimer (2014).

[27] Mendoza (2018).

[28] See, http://www.coserpross.org.

[29] Covey (2012), xiii.

“Construimos Nicaragua” [We are building Nicaragua] Program

An earlier version of this document was published in September. With minor changes it was inserted in the version of La Prensa on January 14, 2019. This translation includes the minor changes.

 

We are Building Nicaragua 

“We are Building Nicaragua” Program

This document is the draft of the Program of the Social and Political Movement called “WE ARE BUILDING NICARAGUA” which we submit to the consideration of the readers to open a public discussion among all social sectors on the urgent tasks that we need to promote for a real democratization of Nicaragua.

PROGRAM FOR THE DEMOCRATIZATION OF NICARAGUA: GIVE BACK TO THE PEOPLE THE RIGHT TO DECIDE!

Introduction

The days of struggle, started in April 2018, are forging and consolidating a strong sense of collective national identity in favor of democratization and justice, as had not occurred in our nearly two centuries of independent history around fundamental symbols and values: the blue and white flag, inextricably linked to republican democracy, public liberties, citizen participation in the State affairs, a strong sense of social equity and true solidarity.

The democratic struggle started by the youth opened the possibility of rebuilding and re-founding our nation on the bases of democracy, justice and social equity. The enjoyment and exercise of public liberties, as well as absolute respect for citizen rights, should not depend ever again on the will or discretion of any government. We all the sectors of the people (youth, students, women, workers, peasants, indigenous, etc) need to recover our popular sovereignty to re-found a new Nicaragua, creating a Social and Democratic Rule of Law on new bases, that imply eradicating forever the use of violence, repression or intimidation by those in power for the purpose of remaining in it, or limiting and blocking the exercise of these freedoms and rights.

The fundamental decisions of Nicaragua should not be made by small oligarchies, but by the broad majorities of men and women through democratic and deliberative processes with all the information on the table, where the broadest sectors can participate.

So that our society might move from the discretional and arbitrary and personalized use of power, to a social interaction more and more regulated by laws, norms and policies that are implemented in a more impartial, transparent and impersonal way possible, that is, with the absence of discrimination and punishment for some, and privileges and “awards” for others.

Currently State institutions have lost their public character by being completely subordinated to partisan control and the discretional management of the rulers. It is urgent to begin the transition toward the new Nicaragua, where national public institutions exist that fulfill their function of providing public goods and services, and that are capable of ensuring confidence, security and certainty to economic agents and all the citizenry.

Nicaragua needs a radical democratic revolution that would build national public institutions that can keep themselves relatively isolated from the pressures of economic groups and those in power, be focused on effective, professional performance and their objectives and responsibilities, establishing mechanisms that would ensure transparency and accountability, and that would make citizen control possible over the institutions that administer power.

Within the framework of this context, we a group of youth, men and women from all social strata, have agreed to launch a new political organization called “WE ARE BUILDING NICARAGUA”, an inclusive, horizontal, democratic and progressive political movement for the purpose of promoting structural changes for the sustainable development of Nicaragua.

WE ARE BUILDING NICARAGUA is a social and political movement where all us Nicaraguans find the opportunity to voice our opinions and participate to achieve our political, economic, social, cultural and environmental aspirations.

The mission of WE ARE BUILDING NICARAGUA is to provide each Nicaraguan the opportunity to promote and defend their rights to achieve a full, just and prosperous life.

We present, then, our proposal for a political program that we submit to the consideration of the citizens for their study, critique and improvement, because only united will we be able to accomplish the immense task of democratizing Nicaragua for the benefit of the great majorities.

16 BASIC POINTS FOR FOUNDING THE NEW NICARAGUA

  1. Free and Sovereign Constituent National Assembly

We men and women of WE ARE BUILDING NICARAGUA, many of us had not even been born during the time of the revolution, we think that the first thing that we should do is dismantle the status quo of the political power that was established in the last period, and that has roots in the institutions created during the process of the death of the revolution of 1979.

It requires returning sovereignty and decision making capacity to the people, in other words, the citizens. This elemental principle of democracy has been systematically denied in the history of Nicaragua. It requires profoundly reorganizing the State institutions. And this can only be achieved by repealing the Constitution of 1987 and its reforms, discussing and approving a new democratic Constitution, that would minimally bring together the issues that we discuss in what follows and that would bring the Nicaraguan State into the modernity of the XXI Century.

For the will of the majority of the people to be reflected, the call for a free and sovereign National Constitutive Assembly should be preceded by a profound revolution of the electoral system, which would ensure the democratic participation of the people and eradicate the possibility of new electoral fraud.

  1. A new electoral system

A complete reform of the electoral system is needed, approving a new Electoral Law that would do away with the bipartisan system inherited from Somocism, and that served as a cover for installing a new dynastic dictatorship. A new Party and Political Association Law should be approved, which also should have constitutional standing, that would allow for the creation of groups, associations and political parties at the municipal, provincial, regional and national levels.

The obstacles created by the constitutional reform of 2000 should be ended, that demand a minimum of 4% for a party to maintain their legal status, because it limits the right to representation of minorities. The myth of the dictatorships, that only the traditional parties should exist, should be done away with,. Democracy rests on the principle of diversity and the respect and protection of minorities.

But, above all, the monopoly of the political parties should be ended, which are the only ones who can propose candidates. A new emphasis should be placed on the fact that citizens can run as candidates regardless of whether they are party members, in any type of election, including presidential elections, prioritizing the fact that youth, who have traditionally been marginated from political activity, can have a dominant role in the destiny of the country.

The election of deputies should be by provinces or districts, doing away with the election of national deputies. The right to proportional representation of minorities should be ensured, especially of indigenous, in every type of election.

The functions exercised by the Supreme Electoral Council (SEC) should be decentralized in different institutions (identity cards, parties and associations, organization of electoral processes, etc), completely reorganized, not just with the participation of the political parties, but civil society organizations, who should play a role of oversight and control.

The new electoral system should include the partial or total renovation of the deputies of the National Assembly halfway through each presidential period. The dates for legislative elections should coincide with municipal and regional elections which should be held every two years, so that the elected officials might know that their posts will always depend on the assessment of their performance and the will of the electors.

To be a candidate for popular election they should be qualified and honest. In addition the 50/50 Law should be kept and respected that ensures the presence of women on electoral ballots which opens the doors for their participation in political decision making posts.

Finally the new electoral system should ensure the right to vote of the citizenry who, for economic or political reprisal reasons, went into exile and live outside the country.

  1. Limits to re-election for popularly elected officials

Re-election is not a problem of principles in democracy, everything depends on the political culture and the electoral system, whether it is sufficiently democratic to respect the popular will.

Nevertheless, this is a key discussion in Nicaragua, because the emergence of the dictatorships of José Santos Zelaya (1896-1909), Anastasio Somoza and his successors (1937-1979), as well as the new dictatorship of Daniel Ortega and Rosario Murillo (2007-2018) have been related to presidential re-election.

For this reason, and taking into consideration that a good government is not improvised, presidential re-election should only be permitted for a second period, so the new election becomes a plebiscite on the first mandate. Starting with the second period, there should be an absolute prohibition of presidential re-election, establishing iron clad clauses in the new Constitution that would prevent a third presidential period.

Likewise the deputies should only be elected for two consecutive periods. This same norm should be applied to mayors and council members and the members of regional governments.

  1. System for direct election and renovation of magistrates and of other high officials, under citizen control.

The citizens should be given back the capacity to elect and remove magistrates, as well as other high officials from other branches and institutions of the State. That vicious cycle should be ended where the executive branch proposes candidates for magistrates who end up being approved through agreements and negotiations among the deputies, who generally obey the interests of party leaders, who include them on the electoral lists, annulling the capacity of the citizens who elected them.

On establishing a percentage of votes of deputies to choose the magistrates, the problem is resolved through transactions or political pacts, turning the deputies into the principal electors, annulling the popular will. This type of indirect election makes possible the creation of political rings and castes, which are the negation of democracy.

It should be established that the holders of the executive branch, deputies, mayors, councilpersons, members of the regional governments, all popularly elected officials, are subject to the evaluation of the people through a recall referendum. In this way any popularly elected official, having finished a third of their mandate, and in the face of a petition for their removal signed by a certain number of citizens, those signers should have the capacity to call for elections in that specific case, so that it be the electors who decide if the official continues or not in their post.

  1. Restructuring of the judicial branch

Democracy is, in the last instance, the governance of judges. These officials are the ones who decide on the freedom of people, the future of their assets and settle political conflicts. The one who controls the judicial power, controls the State and political power. That is why a profound reform and restructuring of the judicial system should be done. The magistrates, judges should be directly elected by the people, and submitted every two years, when intermediate elections are held, to the control of the citizenry.

The judicial profession should be submitted to periodic controls. Only the people through their vote can decide whether a judge continues in their post for one more period. The re-election of judges and magistrates should have a limit, no more than three periods, to open the way for the formation of new judges and magistrates.

A commission composed of recognized jurists and national and foreign academics should examine and review the curriculums of the aspirants, and they will be the candidates who would be subject to popular balloting. Political parties cannot campaign in favor of the candidates under pain of disqualification.

The Supreme Court of Justice (SCJ) should decentralize their functions, so that the administrative functions are not mixed with jurisdictional ones, and with those of control and sanctioning. Deputies cannot be candidates for judges or magistrates. It is a matter of building a new judicial branch that would supervise jointly with the citizenry the functioning of public administration and democracy.

Amparo [constitutional or administrative protection order] should not be an appeal but a judgement, as happens in Latin America. A Constitutional Tribunal should be created, whose magistrates will not obey political parties, but the mandate of the citizenry.

  1. Ongoing fight against corruption

In Nicaragua corruption is an evil embedded in all the State institutions, and it has become part of the political culture: popularly elected posts and public service have been turned into ladders for illicit enrichment. That is why the fight against corruption should be ongoing and at every level. Corruption is one of the principal causes of the increase in poverty and social inequality. It is not possible to fight poverty without fighting corruption at the same time. Indeed corruption erodes and weakens democratic institutions, annulling existing legality, promoting impunity and social chaos.

The existing laws for fighting corruption are not applied because the State institutions responsible for fighting it, like the Comptroller General of the Republic (CGR), the Attorney General of the Republic and the different tribunals of justice have been victims of the concentration of power phenomenon, which centralizes the mechanisms for the election of magistrates and other high officials solely on the deputies of the National Assembly, who are elected through the lists of the political parties who exercise a monopoly on popular representation.

The anti-corruption legislation should be modernized, administrative processes should be greatly simplified, a new law of State Purchasing and one for Conflict of Interest of Public Officials should be approved, establishing online bidding, so that everyone can see what is happening with prices and technical specifications, taking into consideration citizen participation at all levels, developing to the maximum electronic governance.

Transparency should become a new fundamental right, a key factor for strengthening social confidence and a sense of participation and co-responsibility in the construction of a shared destiny. Public information should never be managed as if it were private. The people have the right to know all the affairs, no matter how complicated they may seem. The officials who violate this principle of access to public information will be submitted to severe penal sanctions.

Likewise, the obligation should be established of all officials to be accountable to the general assembly of workers of the public sector with the participation of the citizenry every three months for spending, investments or purchases made. The result of these reports should be placed on the web page of the respective institutions.

In all State institutions an assembly of public servants should be organized to create citizen control commissions responsible for overseeing the implementation of the budget, plans for purchasing and bidding, with the legal faculties to file the corresponding charges. Those who make any denouncements will not be able to be fired nor will there be any administrative reprisals against them, unless it is shown that they had no basis.

The new constitution should establish the new principle that there is no immunity for crimes related to corruption. All assets obtained through acts of corruption or money laundering are imprescriptible, it is the obligation of the State to pursue them until they are recovered, trying and punishing those who are guilty. The officials punished for acts of corruption through a final judgement will be disbarred for life from running for public posts or providing public service, as well as prohibited from being a supplier of the State or contracting with Public Administration.

  1. Professionalization and dignity of public service

A radical democratization is required so that workers in public administration never again are hired or fired based on their party affiliation or loyalty, but rather on the basis of their capacities and competency, and so that the career of civil service be respected.

The Civil Service Law should be governed by the principle of the merits and capacities of the applicants, we should eradicate the culture of sharing posts by pacts and political arrangements or by electoral quotas. Likewise they should promote reforms so that the youth can make a career in public service in a decent way and with facilities for access.

  1. A fair tax system

The taxes of all Nicaraguans should not be used or diverted to enrich small groups, but should form part of the sacred national patrimony. Tax collection should be based on transparency, social control and the principle that the payment of taxes should be proportional to income. In this way society will have the resources needed to cover social spending and ensure the minimum functioning of democracy and the construction of a medium and long term national development plan that is able to transcend changes in government.

  1. Incorporating new rights in the Constitution

Respect for human rights in Nicaragua will never be limited by any government, placing arguments of “national sovereignty” above the relevancy of international treaties on this matter.

New fundamental rights should be incorporated and applied, like Gender Equity, and other specific rights of women, that should be implemented in all the State institutions and at all levels of social life.

Likewise, basic income should be established in a progressive manner for people who are living in levels of poverty. It is the only way of ending the political patronage that does so much damage to democracy, and so that the State might protect in this way those most in need.

Nicaragua should be proclaimed as a Social and Democratic Rule of Law State, governed by fundamental rights, by the principle of absolute respect and equality under the law, the control of the citizenry in the affairs of the State, and the defense of the environment.

The right to rebellion or insurrection against dictatorial or dynastic governments should be recovered, as a fundamental essential right of Nicaraguans.

Likewise, new procedural guarantees should be reformed or incorporated: the function of the Police should be to investigate crimes and send the accused to the judicial authorities in a term no longer than 24 hours. In their investigations the Police should be subordinated to the Prosecutor´s office, who should be responsible for directing the investigations and the gathering of proof. Detentions can only be done through a judicial order or when catching a crime in progress.

Jury trials should be re-established for all cases, and exceptional jurisdictions should be ended.

In addition, Nicaragua should bring itself into the XXI Century and promote the access of all children and adolescents to information technologies and the internet.

  1. Reorganization of the Army and the Police

The role that the National Police have performed in the current civic insurrection, as a small, very centralized repressive army, forces us to re-examine the role of the police forces. The Police should play a very important role in ensuring citizen security, in a context of the advance of the drug trafficking cartels and organized crime in Central America.

To keep the National Police from being a small, mercenary army at the unconditional service of a dictatorial government, their operation should be decentralized, creating municipal police who will maintain a national coordination or command, but whose members will be recruited from within the community, who will be subject to the local authorities. The naming of the Chief of Police in each municipality, as well as their term in the post, will be done through direct election of the citizens. The monopoly of the control of the president of the republic over the National Police must end, it should be shared with the local authorities.

The National Police should have a Community Policing approach, composed of people from the community on a rotating manner, with a reduced administrative apparatus and permanent officials. More women should be incorporated into the chain of command of this Community Police.

Likewise, the role and conception of the National Army should be re-evaluated. The collective trauma that the implementation of military service had during the civil war (1982-1990) has made it possible, contradictorily, for the evolution of the National Army as an institution ever more separated from the people.

In times of peace, the Army should have a very reduced apparatus, it should be composed of citizens who provide their civil service regularly within the armed forces at certain times. Likewise, more women should be incorporated into the chain of command of the Army.

It should not only defend the national sovereignty against drug trafficking and organized crime, but also exercise a social function in the most vulnerable social sectors, protecting and defending the environment, enabling youth to join as their first job and acquire technical training. This is the only way to prevent having an Army of full time paid soldiers unconnected to the people. The Army should not have, nor its officers, businesses or companies to finance retirement systems different from those that most of the population have, or caste privileges that promote social inequality.

Due to the importance of this issue, a special plebiscite should be promoted on the reorganization of the National Army and the National Police, so that the people might democratically decide the path to follow.

  1. Educational revolution, academic freedom, and university autonomy.

Nicaragua will never come out of poverty without being able to raise the educational level of its population.

Nicaragua is losing the only opportunity from the “demographic dividend” as dozens of thousands of youth do not have the opportunity to study and work. The dichotomy between primary education and higher education is false. Both are complementary. That is why academic freedom and university autonomy should be insisted on for training the technical staff and the professionals that the country requires.

Primary and secondary education should include a class on civic education, so that the students might learn from an early age how the State functions and what the principles of democracy are.

Within the framework of basic income, it should be ensured that all children finish their primary and secondary schooling. For that purpose 15% of the Gross Domestic Product (GDP) should be used for public education. State resources should be used to develop public education, and the businesses of private schools and universities should never be subsidized. The universities should never be submitted to political power and party control.

The teaching profession and scientific research should be encouraged and protected by the State.

Social innovation and entrepreneurship should be encouraged by the State to expand the labor prospects of the recently graduated youth from the Universities so that they can be inserted into the work world. Likewise, the Youth First Job Law should be approved where the universities and companies will coordinate to provide facilities of access to work to recently graduated youth, and so that the relationship between professional majors and market demand might be improved.

  1. The role of the State in the economy

The principal of the social function of property should be rigorously ensured. The State must protect and promote small and medium ,urban and rural producers.

Given the backwardness of the productive forces in Nicaragua, the State should play the role of promoting economic development, the only way of doing away with migration and poverty. Within a social market economy framework, the principal public services (water, health care, education, energy and communications) should be in the hands of the State. The acceptance of mixed enterprises in these areas, and the percentages of private, national or foreign participation, will depend on the needs of each concrete case.

A State bank should exist that would promote financing, at fair interest rates, to the benefit of the peasantry, artisans and small urban and rural producers. To prevent political patronage and corruption that can lead to their bankruptcy, the workers and clients of the state bank should be allowed to form a verification and control commission of the loans, focused on citizen participation.

The profits of the private banks should be regulated, through a policy of fair interest rates, that do not exploit the population.

National or foreign private investment should respect the universal labor rights and gains of the workers. The State should protect with special care worker-owner relationships.

  1. Agrarian reform and the defense of the environment

The agrarian reform that was promoted under the revolution in the 1979-1990 period was reversed in later decades. A process of land concentration functioned and now we have the existence of new large landowners. This process was possible because the peasantry did not have financial and technical assistance that would allow it to develop agriculture or ranching. Not only should the right of the peasantry to land be ensured, but also the right of peasant women to be owners of land. Likewise, a state bank is needed whose principal function would be to develop the peasant economy. The State should ensure a policy of fair prices for peasant products.

The agricultural production of Nicaragua in large measure rests on small and medium producers. It is necessary that these sectors grow through increase in yields and productivity, more than by the expansion of the agricultural frontier, which has degraded hydrological basins, produced sedimentation and the disappearance of water sources, and destroyed biodiversity.

Protected areas should be expanded, like Bosawás and Indio Maíz, and other new ones created. Protecting the national capital of the country should be a priority – water, soils, forests and biodiversity – the State should ensure that they be used in a sustainable manner.

The agrarian reform should have an ecological approach, one of defense of the land, forests, water and the environment. Zones apt for agriculture should be defined, planting should not be done on hills or inclines, what lands are apt for ranching should be pinpointed. Extensive ranching should be eliminated, promoting the creation of modern farms with breeds of cattle that allow production to increase without the need to destroy forests. Peasant or indigenous communities should be the protectors of the forests. A process of reforestation should be promoted and the protection of natural reserves for the purpose of caring for the water of rivers and lakes.

  1. For true autonomy in the Caribbean Coast

Raising the autonomy of the Caribbean Coast to constitutional status in 1995 implied great progress, but the real effects of the Autonomy Statute of the Regions of the Caribbean Coast of Nicaragua are more formal than real. The principal decisions on the economic resources of the Caribbean Coast, and investment in them, in reality are not up to the Regional Councils, nor the indigenous communities, but the central government, which continues limiting the right to autonomy of the native population.

Not only should the customs, language and culture be preserved, but also the communal forms of organization of the indigenous population, which should administer and protect the natural resources.

Even though it is true that as a result of the struggle of the indigenous communities progress has been made in the titling of communal lands, as long as there is no resettlement of non indigenous on their land, the autonomy of the Caribbean Coast will be a fiction.

  1. Consolidation of municipal autonomy

Municipal autonomy has been enshrined in the Constitution since 1987, but in reality the municipalities are subordinated to the central government, in spite of the existence of the Municipal Law. The role of the State in society should be realized through the municipalities. The national budget should be invested in the municipalities. The role of the central government should be reduced, and the functions decentralized in the municipalities. The structure of the State should rest on the municipalities, who should control education, the supply of potable water, public services, services of police, sewage and the defense of the environment.

The democratization of Nicaragua passes through transferring more national power and resources to the municipal governments.

  1. Reconstructing the Central American nation

In the XXI century the countries of Central America are intimately linked by their economic bases, but not on the level of state superstructure. What happens in some of the countries of Central America has repercussions on the rest. SICA [Spanish acronym for the Central American Integration System] has played a great role as a project for the reunification of the national economies, but it has not achieved the goal. The establishment of PARLACEN was a great step forward on the political plane, but it has very limited functions. We should make more progress. The deputies to PARLACEN should be the same deputies of the national legislative organs, so that there is no separation and ignorance about the regional reality.

We should proceed until achieving the call for a Central American Constituent Assembly that would allow for the creation of a Central American federation or confederacy.

Managua, Nicaragua, September 14 & 15, 2018.