Category Archives: Well-Being

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 alternative path of associativism

The alternative path of associativism

René Mendoza Vidaurre[1]

The betrayal of their own path

People dispossessed for so many years collected their savings and gave them to one of their sons, Solin, for him to pay for the coffee that was collected from their own group. Solin had never had so much money; he was like a deer in the headlights. He paid for the coffee. Some of the same people who had saved, behind the back of the rest, went to him to get him to lend them money. Solin first said no, but these people insisted, and he gave in. More people showed up, also from other parts of the country, and he ceded. Solin felt like a little patrón, “The people trust me”, his chest puffed out like a balloon. This path of giving out other people´s money, saying that it was his, led him to lie and believe his own lie. When other people showed him his mistake, Solin offered them money to shut them up, and if they did not accept it, he would slander them. One day he looked himself in the mirror and was frightened to find that he did not recognize himself.

When the owners of the money asked him to give it back, he had lent it all out. “And where is the money?”, they raised their voices. “You have already eaten it,” the theft reverberated like 10, 100 and 1000 years ago. Solin and several of the savers had betrayed their own path. Both took the path trodden for centuries by the old hacienda owners and fieldhands, by the comandante and those who died, by the manager and those who believed themselves to be cooperative members.

This story illustrates what happens frequently in cooperatives. A group of people save, define their purposes, agreed on their rules and then betray that path. The old path trodden by the patrón where the fieldhands follow for their pay, become indebted and to look for a favor, a path also taken by governments and churches (“Holy Patron Saint”), clouds and blocks any other path. In the story this group of people and Solin look at themselves in the mirror, or ask about their resources, and are surprised to be on the old path of dispossession, moving from being “servers” to “being served”. Their biggest tragedy is not so much the use of the money, but the fact that they have betrayed their path, this is the reason for the bad use of the money and the fact that their lives have taken a 360 degree turn, arriving at the same place. How can people who organize be able to follow their own path?

1.     Individual-collective duality and the dilemma of betrayal

In organizations that face corrupt acts, there is finger pointing, accusations and complaints. “He is incorrigible”, “he is guilty of bad administration”, “she is not accountable”, “she uses our money for her benefit and that of her managers”, lash out the members. These

 phrases in a cooperative belie an individual perspective, accentuated by the religious conservatism of “personal salvation”, and by the neoliberal doctrine where what is important is the individual and not society–there is no such thing as society, said the first female British Prime Minister M. Thatcher in 1987, during the full eruption of neoliberalism. Reproducing this perspective, nevertheless, is a way of “washing our hands”, of showing oneself to be innocent while pointing out others as the guilty parties.

These same expressions, nevertheless, can be read as “spitting against the wind” from the collective perspective. Because the member who is doing the accusing, with or without a title in some organ of their organization, on seeking a loan directly from the administrator, behind the back of his own cooperative, is not exercising his/her role, and/or violates the rules of their own organization; on the other hand, the corrupt administrator establishes himself reproducing the idea of the patrón;: “With 100 cordobas I keep them happy.” Many times even the State or aid organization officials who support the cooperatives borrow money from the managers, knowing that it is money that belongs to the cooperatives. “The spit” also falls on this member and this official who preaches cooperativism. A systematic act of corruption happens, above all, because of the lack of functioning of the respective organs, because of the lack of compliance with the rules of the organizations, and the accounting norms on the administrative side, as well as because of the acceptance of aid organizations*.

The members know the rules and procedures, but they see them as tedious, “paperwork”, “bureaucracy” – high transaction costs, they would say in economics. The members of the organs also see it in this way: “meeting is a waste of time.” While the patrón “from one big roll” decides to lend to them or not. In this process the members believe the administrator about any version about the source of the money, there is no culture of verifying their versions, because, they think, it would be distrusting and ungrateful; for that very reason, they do not ask for receipts either, the patrón does not do receipts – his word is enough! In addition to believing him, they fear him, “a person with other people´s money is capable of anything”, they whisper, so they keep quiet – do not speak in front of the patrón! This is a rule that is resurrected. From here the “vice” of playing with “other people´s money”, more than individual and exclusive of the manager or some president, is a collective “vice”; a collective act causes individual behavior – of corruption or honesty. See the upper part in Figure 1.

“The law is not being applied to him”, state the members and advisers of the organizations. With this they mean to say that organizations have laws, the State oversees compliance with the law; and that aid organizations have rules, and they do not apply them. This, however, continues to assume an individual perspective, believing that by “applying the law” “the patron is going to self correct”. It ignores what the history of any country tells us, “the patrón makes the laws”, be that with his right hand or his left. So we detect that this individual perspective, clothed in a collective and legal perspective, is moved by structures of dispossession; the “accusing”, the “abusing other people´s money” and “preaching laws” make the path of cooperativism disappear, and accentuate the path of dispossession – it is the dilemma of the betrayal. So we perceive that this structure is like rails for a train, it does not matter who the conductor is that is driving the train, nor how many years of schooling he might have, how many advisers and protectors of the law he has, that train will move along the rails; not matter who the administrators or presidents may be, these structures (“rails”) trap the conductors. In this way cooperatives can go broke, while these structures remain unmoved –“in an open treasure even the just will sin”, goes the saying.

At the same time this structure is being challenged. On the one hand, there are some members who cultivate a contingent awareness, that it is possible to make your own path and walk it; and on the other hand there are administrators who understand their role, respecting accounting rules and the collective perspective of organizations, shunning “inflating themselves” like balloons that run the risk of “bursting.” They do not “spit into the wind”, but recreate that collective perspective which finds itself supported by mechanisms that are coherent with more communitarian structures, and consultancies that study these rural underworlds – this is overcoming the dilemma of betrayal. See the lower part of Figure 1.

2.     Innovative mechanisms for cooperatives as the vehicle for repossession

“They do not let us be peasants”, shot off a Costa Rican leader in 1991, recognizing the onslaught of neoliberalism in turning the peasantry into workers and “wetbacks”. The “be peasants” has been more coherent with community structures, in conflict with structures of dispossession. It goes with mechanisms that make an alternative path possible, mechanisms that we have been learning from the exceptional organizations in Central America: see figure 2.

They are mechanisms that “de-commodify” peasant life, they involve awakening and organizing, deepening their roots, improving the organization of the commons, and sharing the path in a glocal alliance- because every space is glocal (global and local).

Mechanism 1: Voluntary genesis of cooperativism congruent with community principles

Nearly two centuries ago a group of textile workers in England saved part of their salaries to start a store, and with that stabilize their income and defend their basic needs. In Germany peasants organized to free themselves from usury. In both cases, the people understood that individually they were not able to overcome structural problems, like the low buying power of their salary and the usury that indebted them for life; organized, they could do so. Thus they defined their path and walked it. Over time cooperativism has expanded throughout the entire world and has become a double edged sword, a means for repossession for its members and communities from whence they come, and a means for dispossession when small elites appropriate it for profit. Read the brief dialogue in the box.

From the angle of the genesis of cooperativism, this dialogue shows the incomprehension of the administrator about what a cooperative is, as well as the wisdom of the younger brother about the social rule of “respecting someone else´s assets”. “The need of the other affects me”, says the administrator; precisely the crude “need” of people led to the fact that cooperativism emerged standing under the principle of respecting collective assets. The error of the administrator in this dialogue is providing a loan from money that is not his, and doing it outside of the rules and organs of the cooperative that named him “administrator”; with that he dispossessed the members of their resources, and full of a short term vision condemned needy people to suffering. Being “proud” is abusing “another´s assets”. This deformation results from the individual perspective derived from structures of dispossession.

The cooperative that originated in the will of its members to overcome structural adversities, and does it with rules based on community principles, like those expressed by the “younger brother” in the dialogue of respect for collective goods, is a long term structural mechanism.

Mechanism 2:  Rooted in diversified bases

The market demands a product and does not matter whether the one who produces it comes from one place or another; the State and aid agencies behave in a similar way, they legalize organizations or demand changes like “including women as members” without regard to where they come from. From working with cooperatives we learned that a cooperative that is rooted in its micro-territory has more possibilities of walking their walk, of being inclusive…

How to be rooted? Even though the members of a cooperative come from the same micro-territory, deciding that the administration –and therefore the financial transactions – are done in the territory itself, requires making explicit in a reflective way several beliefs written in stone for centuries: “Here they are going to steal from us, in the town there are Policemen and that is why it is safer there”, “no buyer or certifier is going to come out here to our place, we have to go out to civilization”, “here we are living in the brush, the patrón lives in the town”, “that little girl doesn´t know anything about administration, only men who ride on motorcycles know it.”

When the members of a cooperative come from the same micro-territory, and decide that their building and its administration are going to be in the same space, then we create favorable conditions for a good cooperative. The possibility that corruption might emerge and intensify is reduced. The mobility of the members to the cooperative´s building, as well as the attendance of women and men in the meetings is greater. We say that more women and men go to the meetings, because of the geographic proximity and because they do not have to travel to the municipal capital to attend meetings; the women can go to the meeting with their babies and/or children, something that is difficult if the meeting is in the municipal capital. This contributes to the cementing of trust among the members. Also the coordination between the administration and the organs of the cooperative can improve. The care of the members and board members over their administration increases, which is why the security of the resources of the cooperative in that place increases. Accessing information and asking their questions is also more possible.

The payments that are made in the territory itself to the members, be it for coffee, cacao, sugar cane or another crops, has an impact on the economy of the territory. The storefronts and small businesses sell more, new businesses tend to emerge. The interest of the partner of the member, and their children, in the receipts that their Father or Mother bring from the cooperative is greater. The possibility of having lovers under the argument that “I am going to town for a meeting” is reduced. It is like the butterfly effect in a world as interconnected as today´s world is, even more so is life interconnected in a micro-territory and in families.

Mechanism 3: the functioning of the cooperative organs and administration

The fact that a member might understand that organized they can overcome their structural problems is one step, the fact that they can facilitate that because their cooperative is rooted in their territory is a second big step. Nevertheless, there are cooperatives that in spite of having taken both steps, go broke or turn into a means for dispossession manipulated by small elites. The third mechanism is that each member, with or without a title, function in accordance with the rules and organs of their organization, without going “in secret” to the “real person in charge”, because the “real person in charge” in the cooperatives are its rules and organs.

It is easy to say that the organs of a cooperative function according to its rules. But it is difficult for it to happen. The phrase that is read in laws and management, that they are “management organs” illustrates that they are not “decision making organs”, that the power of making decisions was expropriated by the elites. How can the organs be “decision making” and the administration “management”, the former with a strategic role and the latter with an operational role? Apart from the fact that they know their statutes (rules), meet systematically and cultivate connections with their members and with external actors, the key is in the fact that they become learning organizations. How? First, each member is seen as a leader in their community, understanding that the biggest treasure is in their own social territory; consequently, their first task being multiplying their visits to other people, members or not of the cooperative, so that through conversations, they might understand the problems and opportunities that exist in their territory. Knowing them and sharing them is their fuel for pushing the cooperative to improve, and it is their source of ideas for enlightening cooperativism.

Second, the relationship between the administration and the organs is developed to the extent that they organize information, analyze it and on that basis define their policies and strategies to be followed. This provides work content for each organ. For example, information on loans and arrears is analyzed by each organ, particularly the credit committee; the Oversight Board finds one of its principle follow up tasks in this; the education committee, as a result of this analysis, proposes to work on financial education with the members about how to save, invest better and working with more autonomy, breaking with that old institution of “going into debt” and putting up with any exploitation for being “indebted”.

Third, making decisions based on the visits and the data analysis makes it possible for them to make better decisions. A particular area is diversification. A cooperative, even one with organs functioning acceptably, if it continues embracing mono-cropping, sooner rather than later will go broke; if it continues, it will work to dispossess. Promoting diversification, nevertheless, is difficult because of the atrocious structure of international power. Today to speak about agricultural cooperatives is nearly to talk about mono-cropping. So there are “successful” cooperatives that have credit, marketing and technology services just for one crop; the effect of mono-cropping on the peasant economy and the environment have been horrible for decades and centuries. The attached box illustrates the expansion of mono-cropping even through organic agriculture reduced to its dimension as a commodity, and the fact that people of good will from international organizations work against the peasantry while believing that they are “benefitting” them. Visiting and analyzing data leads us to question the origins of our policies and respond to the millennial strategy of peasant resistance: diversification and environmental sustainability. If the organs and the administration of a cooperative focus their tasks on diversification of the farm and agro-industry, their cooperative will democratize a little more, and will include more youth and women in general.

The geographical proximity facilitates organizational functioning, and this, focused on diversification, makes the cooperative be even more rooted, produces new innovative rules and starts the path of being an organization of repossession – of peasant viability with economic and social diversification, and environmental stability.

Mechanism 4: Glocal alliance for the cooperative path

These three mechanisms facilitate changes in the cooperative and in the economy of the member families and their territories, but they will achieve sustainability to the extent that they take on the attitude of a cooperative member. It is not just organizing voluntarily, looking at their territory, making decisions through their organs, it is feeling themselves to be, and being cooperative members. What does this mean?

For centuries indigenous and peasant families have cultivated a mentality of producing to eat. Then in the 1920s in Central America cash crops came in like coffee, sugar cane, cacao, and cattle. In that process they molded a mentality of being a “seller of coffee”, “seller of sugar cane”, or “seller of milk”. Consequently, they reasserted their territory (“country”) in their plot or farm: “My country ends with my agave fence”, they declared, which means that within this area there is a structure and a person in charge, that outside of that is not his world, that his world ends at the fence where the buyers come to buy his products. They do not even sell, they buy off of him. This mentality was intensified by the markets, “I will buy your coffee sun-dried or wet, the rest does not matter”, “I will buy your sugar cane”; likewise national and international aid organizations, allies of associative organizations, with people trained in universities that taught them that only “Inc.” companies produce profits, say to them: “work on the raw materials and the rest will we take care of”, “you are good for harvesting, industry and trade is our thing”.

What is the problem with this mentality? The peasant receives payment for their coffee or milk, that is their world; the other world is that of the patrón, where the profits are; the peasant never is interested in this other world, knowing what their patrón did with his profits; the very fact of asking him was showing ingratitude, insubordination and social suicide – their own people would treat them as someone trying to be his equal. This institutionality has been reproduced in associative organizations and their allies; a member looks for payment for their coffee, sugar cane or milk, they are not interested in knowing whether their organization generated profits or not; in Fair Trade the use of the premium of US$20/qq of coffee is previously defined in social investment, infrastructure… and $5 for the member family to invest in their farm; the premium for organic coffee of US$30 is perceived like this, “premium”, equal to a “roasted cow” that the patrón would provide for them at the end of the harvest, “premium” of a day of fiesta. In other words, the agave fence of the peasant member is “price of NY + premium” (see box); the member family understands that their profits and premiums are not an expression of their rights, but “a favor” (something “extra”, “charity”) of the local or global patrón, that is why they do not ask about it, do not ask for information, nor keep their receipts nor complain over the distribution of profits. Knowing this reality, the patrón (administrator or fair trade coffee buyer) repeats, “with 100 córdobas I keep them happy”, “with pig rinds and booze they leave happy”, “I buy from them at a good price and I give them a premium, whether that gets to the member´s family or not is their issue.”

Complaining over your profits is like being a “beggar with a club”. It is like a woman subjected by her husband, she feels “kept” and without the right to ask him about the “rest of his money”, and it is the mentality of the citizen who pays taxes and instead of complaining that his government reinvest in public works and provide him “good service”, see these works as the result of the goodness of the government (patrón).

The three mechanisms listed need to be complemented by this fourth one, with which we will move beyond this glocal mentality. How? First, building a mentality where the peasant family has awareness about the fact that their actions create value and have unexpected consequences, which is why they can refine their policies and carry out actions of even greater value and impact. This is possible if they observe and reflect on some details; for example, making sure that through the payment for the harvested coffee in that territory positive aggregate effects are generated in the economy of that territory, beyond their “agave fence”; observing the impact of their diversified organic agriculture on their farms as well as on the territory; reflecting on the effect of violating the agreements of their own cooperative, that leads them to lose resources as a cooperative and as a territory. On observing these positive and negative effects, the members can awaken their awareness of being coop members and of moving from their “agave fence” to understand that regardless of their purposes, their actions have a repercussion on the territory. In a parallel fashion, let also global actors awaken and understand that their actions have repercussions on the lives of the peasant people; if they look at a cooperative just as “coffee” or “cacao”, commodities, and believe that by providing a good price and premium they have already contributed to the families, they should ask themselves if they are sure that they have “contributed”; if one person turns into an elite capturing those premiums, are the buyers contributing to the well being of the peasant families?

Second, making relationships between different glocal actors (global and local) be living alliances that are committed to the formation of associativism, complementing the mechanisms mentioned here. This does not mean improving the prices of raw materials. It means that organizations add up all the income (value of sold product +premiums+incentives for quality and other bonuses), subtract their expenses and costs, and from the gross profits they agree to redistribute according to a certain percentage, let us say 50 or 60%. We repeat, it is not a matter of improving the price of the sugar cane or the coffee, it is not distributing the premiums; it is redistributing the gross profits of your organization.* The remaining 50 or 40%, or other percentage, goes to internal funds, social fund, legal reserves, investment fund in the organization…

Third, all the actors, cooperative, associative enterprises, aid agencies, Universities and State Institutions, we all should commit in an ongoing and systematic way to cooperative formation, based on the lessons and challenges of the organizations themselves. On emphasizing profits we are not reducing ourselves to the economic, we understand with Aristotle that quantity is an element of quality; consequently, the members will move from a mentality of “I am a seller of sugar cane” to “I am a seller of granulated sugar”, from “I am a seller of coffee” to “I am a cooperative member exporter of export quality coffee”. This will mean that each member pushes that their organization generates more profits and redistributes them, they will make an effort to be informed, to be trained, to diversify more. With these elements, the formation will help their cooperative and territory, the board and their members, the cooperatives in the north and the south, to maintain strong ties of collaboration and mutual learning.

3.     “Muddy” accompaniment from the underworld of the member families

Most cooperatives have been accompanied, be it by the State, Churches, aid agencies or Universities. Standardized accompaniment has meant providing them trainings, legalizing them, buying products from them and /or providing them with donations; it is an accompaniment that does not cross over toward the communities and the underworld of the cooperatives, which is why it ends up legitimizing corruption, or that cooperatives get turned into a means for dispossession. A new type of accompaniment is required so that these four mechanisms emerge, are adapted and make a difference.

Owen and other associative people inspired the emergence of cooperativism in England, Friedrich Wilhelm Raiffeisen accompanied the first cooperative in Germany. A distinctive accompaniment in Central America has been that of the Catholic Church in the years 1960-1970; that accompaniment helped them to reflect on a God living among them, and a Reign of God that began in those very communities – the “treasure” (God) was in the communities themselves. This accompaniment gave rise to dozens of cooperatives and peasant stores based on their own resources; a good part of them still persist after 40 and 50 years[2]. Consistent with this type of accompaniment, even though not from a religious perspective, we describe here an accompaniment that enters into the cooperative underworld in interaction with the 4 described mechanisms.

What are the distinctive characteristics of this accompaniment? The first is that the accompanying people understand that only by entering the underworld of the cooperatives and their territory will they be able to understand the process in which the cooperative finds itself, awaken reflection and help create mechanisms like those worked on here. The fact that we intellectuals might have the “best” assessment is useless if the members are not reflecting on and walking their own cooperative path. For that reason the accompaniers need to pass beyond the control of the “patroncito”, be that the administrator, manager or president, and through the conversation be exposing the struggle between the path of the patrón and that of the cooperative, as well as the complexity of walking their own path.

Second, accompanying is discerning mindsets from the inside. Along with studying the cooperative underworld, where the old path is imposed based on betrayal and subordination, and where people wander between doubt and intuition, the accompaniers discern the mindsets in the cooperatives, and their own mindset as accompaniers. When the cooperative is trapped in acts of corruption, it is moving under the rules of “the clever one takes advantage of what he administers”, and “we always need a patrón”; these rules conceal actions against their own organization; then the members see the accompaniers as “intruders”, unfurl the banner of “autonomy” to keep the accompaniers from “crossing over the threshold” of the territory, and make up lies in the territory that these accompaniers “are taking advantage of the cooperative.” Discerning their mindsets implies “muddying ourselves” in their beliefs and lies, at the risk that this might erode the legitimacy of the accompanier and drive him/her out of the territory. What distinguishes good accompaniment is the persistent act of overcoming our own mentality that it is “enough to train, legalize and help them to export in order to live better”, “taking their pulse” and innovating with member families to the extent that destructive mentalities that prevent learning are dispelled.

Third, accompanying well is allowing member families to take their own steps, provided that we understand that our actions also have repercussions in the lives of the member families. The accompanier risks the fact that the members might perceive him or her also as a “little patrón”, impairing them from walking their own cooperative path. Let us illustrate this with one experience; in a cooperative, after the second mechanism took place, of rootedness, the results in terms of informational transparency, reduction of corruption and a motivating environment because of its economic and social impact in the territory were admirable. So the board members complained to the accompaniers: see attached box.

In the box the leader sees the accompanier as a “little patrón” with the capacity to stop the corruption and impose decentralized administration on the territory of the cooperative. The response of the accompanier to the first complaint is that having intervened as a “firefighter” to “put out the fire” of corruption, even though this act would have saved them financially, it would have constrained them from building their own cooperative path, which is structural and long term. The response to the second complaint reveals an accompaniment that helps to innovate mechanisms to the extent that it studies and learns from the cooperative itself and its underworld. Even now that we have innovated these four mechanisms they would not be recipes for any organization, they are mechanisms that need to be adapted to each situation, and that each cooperative should experience their processes. These two responses illustrate that accompanying is letting member families walk their path, provided that it studies them and provokes reflection.

Finally, in this process we are getting to know ourselves, re-knowing ourselves in our actions, and we are developing a sense of reasoned compassion. Not the “rational being” of homo economicus. On understanding the mentality of a group of members who “always need a patrón that steals from us”, we understand that for more than 100 years this institution has been deeply etched in their grandparents and parents, reproduced now by this group. At the same time we understand that this institution is not characterized by “being peasants”, but that it is the centuries old path of the patrón-fieldhand. This reflective reasoning envisions this reality for us, and awakens “being peasants” in the lives of cooperative member families and our lives, through respecting the collective good, the rules of the collective and mother earth, the horizon for which we produced the four mechanisms.

Accompaniment makes us remember that the change is in alliance between the peasant families and those of us who accompany them, while we walk together. It is not a stationary accompaniment, but along the road. It is a tense alliance, with stumbles and doubts, but embracing each other for the purpose of creating a vehicle for repossession to the benefit of peasant families.

By way of conclusion

We began this text with the following question: How can people who are organizing follow their own path? First we identified how the colonial patrón-fieldhand path intensified by capitalism that only values merchandise (commodities) erodes the cooperative path, and leads people to betray their own path. This teaches us that individual actions respond to certain perspectives (individual or collective), and they in turn come from structures in conflict, communitarian structures and structures of dispossession; and that this cooperative path is connected with community life, also in resistance for centuries. These two paths clash, for example, in “the good of others”: the colonial and capitalist path is nourished by dispossessing “the good of others” (land, financial resources, labor) from the peasantry, while the cooperative path is connected to community structures which precisely originate in repossessing “the good of others”, which in this case is the “collective good”, material assets (financial resources), as well as alliances and collectively decided arrangements. This “good of others” in the cooperative path is then a “social relationship”, as Federici would say.[3]

Lining ourselves up with this cooperative path, we list four innovative mechanisms that, contrary to the saying that “in an open treasure even the most just sins”, make the cooperative into “a treasure with rules and associative governance where even the biggest sinner becomes just.” These four mechanisms are: voluntarily organizing, rooted in specific micro-territories, making the cooperative organs and administration function, and within a glocal alliance framework help the member families to cultivate an awareness of “being a cooperative member”, that their actions generate changes in their lives and the life of their territory, and making the cooperatives expand their profits and redistribute them with informational transparency and as an expression of respecting “the good of others” (common good, collective good, their own good), in contrast to capitalism that is nourished from dispossessing material assets from peasant families. Then we argued that cooperatives need an accompaniment that makes a difference, that crosses over formal and despotic structures and gets into the underworld of the territories, from which they innovate with the member families, like the mechanisms listed here, and accompany them through thick and thin.

Is this text important only for cooperatives and their allies in their social territories? What happens in the cooperatives and their social territories at the micro level is happening in countries at the macro level. Following the cooperative vision is overcoming the “commodity” vision, the colonial patrón-fieldhand path and the belief that “with money you can even make monkeys dance”, and it is creating a society that cooperates, makes rules and follows them, expands their profits and redistributes them, learns and democratizes. Will it happen?

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

[2] A case to illustrate this type of accompaniment is that of the Cooperativa La Esperanza de los Campesinas in Panama. See: R. Mendoza, 2017, “A priest, a cooperative and a peasantry that regulates the elites”, in: ENVIO 425. Managua: IHCA-UCA. http://www.envio.org.ni/articulo/5304

[3] Lucia Linsalata, 2015, “Three general ideas for thinking about the commons. Notes around the visit of Silvia Federici” in Bajo el Volcán, year 15, number 22. Federici talks about the commons in the community, she says “there is no commons if there is no community”. In this article we present the cooperative as an expression of people from a community who decide to organize, and for them “the commons” is within the cooperative, even though in relation to their communities or social territories.

Toward the Re-Invention of “Fair Trade” (updated edition)

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

Even an honest man sins in the face of an open treasure. Saying.

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

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

Pull down full article here

 

Choices

My wife and I were looking at some photos of ourselves the other day, marveling at how young we once looked and subsequently commiserating at how old we appear today.  I stared for some time at one photo in particular, one that seemed to capture the relative innocence and naivete of the young man in question.  I tried to recall his state of mind at the time of the photo, what issues weighed heavily upon him, and the decisions with which he would be confronted in the days and years ahead.  Hindsight is a wonderful perspective to play with; when you already know the result, the journey becomes an interesting study of choices.

Each of us is, after all, the sum total of choices we have been permitted to make throughout our journey of life.  Our choices reflect not only preferences but, more importantly, our values, our principles, our character.  They serve as articulations of who we wish to be and of who we actually are.  And they are the milestones of our journey, marking the signal events of our lives.

Choices are the acts of bringing to life our beliefs.  They are the expressions of our innermost feelings about lifestyles, about the type of vocation to which we aspire.  Choices reflect our most intimate feelings about having a family and what is important in our personal and spiritual lives.  Choices are dynamic portraits of who we are.  I reflected long and lovingly about the choices that the young man in the photograph made over his coming years, with a sense of satisfaction that his decisions had been, for the most part, the right ones for his own unique psyche.

But what if I had not had the luxury of choice?  What might my portrait look like if my life, instead, had been channeled at every turn. if the circumstances of my being were such that I had no choice?

I might never have been introduced to and courted by music.  Maybe I would not have encountered the opportunity to know sports and fitness, the elements of my physical well-being.  Perhaps I would never have known the centering peace of my spirituality.  What if there had been no option for education?  Possibly I’d have served in the military during the Viet Nam war.  What if Katie and I had never met?  Our adopted children would have been raised in different homes; our mutual, familial love for one another would never have come to be.  Maybe our beautiful grandchildren would never have been born.  What if circumstance had dictated that I spend my days in search of food instead of organizational strengthening?  The list of choice-based outcomes is nearly endless.  How might you own life have evolved differently if you had not had the blessing of choice?

The luxury of choice stems, in part, from political philosophies which recognize and value human independence.  It also arises from circumstances that allow the human spirit to envision new aspirations and realities for itself.  In the absence of these elements, choice is minimized.  And outcomes are dramatically different.  It’s true everywhere.  In the U.S.  In Nicaragua.

Winds of Peace Foundation works with many organizations and individuals in Nicaragua who have few choices.  They are moved in directions dictated by their realities and their histories, in the former cases often motivated by need for survival, in the latter cases motivated only by what they know from previous generations.  And when motivation stems from either absolute need or limited knowledge, then choice is often a forgotten, impractical dream.  The nature of the Foundation’s work is to create the environments for more choice, with the certain knowledge that, over time,  greater choice invariably leads to better outcomes.  I wonder what Nicaragua might look like today if their history was populated with greater choice and fewer outside impositions that eliminated it.

In the years ahead, I expect to make lots of choices about things.  Perhaps the Foundation will adopt some new methodologies. Maybe I’ll move into a new vocation altogether.  I might do some more writing.  My wife and I will make some determinations about eventual retirement.  We’ll think about travel that might be important to us.  I’ll even continue to choose the kinds of food I want to eat, whether for my health or for my enjoyment.  But whatever the issue, I’ll have in mind my gratitude for having the opportunity to choose, and a hope to be a resource to those who do not….

 

 

 

 

We Never Even Know We Hold the Key

“So often times it happens, that we live our lives in chains, and we never even know we hold the key.”                            -The Eagles

As the new year has begun its reign, WPF has been thinking about and planning for some of the activities that will consume our time and attention over the coming months.  Our team in Nica has already designed the next major workshop, a two-day session to analyze the land and its use, through the gathering and understanding of data about that land and its use.  The workshops are digging deeper and challenging conventional thought more than ever before.  For the participants, it’s scary and thrilling.

The team works hard to discern what the rural producers need.  They have become intimate partners with many of the coops, cultivating a deep understanding of the challenges faced there.  In turn, the team does its own analysis to identify the tools that they might bring to workshops and on-site sessions so that the farmers might become better equipped to succeed.  The farmers, in turn, are eager to hear new ideas, maybe even to discover a “magic pill” that can make their production and commercialization efforts substantially improved over the past.  In short, the team is determined to deliver and the “students” are avid learners of methodologies.

But as I consider the ideas and tactics that WPF might provide, or that I personally might be able to share, I’m struck by another factor, one that likely receives too little emphasis in development efforts.  (Maybe I’m wrong.  I’ve only been involved in this field for 12 years, a mere blink of the eye over the history of poverty.)  The notion occurred to me as I read a short meditation the other day, one that rekindled thinking that I have cherished myself for many years.  The quote reads as follows:

“The fragrance of flowers spreads only in the direction of the wind.  But the goodness of a person speaks in all directions.”      -Chanakya

It’s a beautiful thought.  But its meaning runs deeper than just a sweet sentiment.  For herein is the truth of the power of the individual, the potential that each human being has for impact on the world around him/her.  Even in the face of incredibly difficult circumstances, whether climate, political, social or economic in nature, we each have the faculty- an enormous capacity- for impacting everything that surrounds us.  For many, it’s a gift that we are reluctant to acknowledge and trust; it seems so much smaller than a new methodology or technology.  It’s too inherent within us to feel credible.  But like our very core understanding of right and wrong, it’s a reality.

What our partner producers may need is something more than a technique.  It’s a message of personal deliverance, the need to remember each and every day the absolute truth that we impact every person around us, either for good or for ill, intended or not, and those impacts shape the success of our endeavors.  How our influences work is not preordained or fated.  It is by choice.  The cooperative’s success, the relationships between members and even success of a single producer are all outcomes over which the individual has tremendous influence, and in ways that most of us do not comprehend well enough.

Like any organization, the cooperative prospers or fades based upon the character of individual leadership, and every member of a cooperative is a co-leader.  Successful cooperatives need transparency, which in turn requires the stewardship of individuals to share information- good or bad- with fellow members.  Collaborative work thrives on honesty, putting the good of all before the individual good of one’s own circumstances.   That’s a tall order when faced with the daily struggle of trying to simply provide for the basic necessities of family life.  But therein lies the irony of success: sometimes the surest way to one’s own well-being is to look out for the well-being of others first.  Even in our so-called developed nations, we are limited in our own well-being by the level of well-being in others.  If you doubt that, see the condition of the world today.  Neither the have’s nor the have-not’s are as well-off as they could be.

The impoverished people of Nicaragua and elsewhere in the world assuredly deserve support, be it financial or the wealth of true accompaniment.  But that accompaniment is most effective when coupled with the truth of self-direction.  When any of us come to understand our impact, our influence and what we are capable to give, we stand at the threshold of making the greatest single contribution to our work that we could ever make.

I know that it’s one thing for someone to speak of these things and another thing to put them into action.  When it comes to advice , Nicaraguans know that it’s cheap, whatever the source, and usually carries with it some kind of “catch” for which they will pay a price.  As a result, they continue searching with healthy skepticism.

And we never even know we hold the key….

 

 

Book It

“No one who can read ever looks at a book, even unopened on a shelf, like one who cannot.”                         -Our Mutual Friend by Charles Dickens 

I finished reading two books last week, one an historical recounting of the life of Native American figure Red Cloud and the other about the worst hurricane ever to hit the U.S.   I love to read.  Reading informs my world view, piques my curiosities, temporarily abducts me from the nonsense in everyday life, makes me laugh, makes me cry.  It shapes my opinions and my character.  In fact, a love of reading was the lifeline that helped me through college, aided in obtaining my first real job, and guided my vocational choices, even to the present: in my next career, I’d like to return to performing voice-over work, reading for the benefit of others.

There’s nothing terribly unusual in that confession; indeed, most of us are creatures of the written word.  Reading is the central tenet of education, vocation, communication with other human beings and of evolution itself.  Imagine, for a moment, where civilization and the human parade might be without the ability to read.

It’s not such a far-fetched thing to imagine.  There are people who cannot read; not that they choose not to read, but that they are unable to read the written word.  They are certainly to be found in the U.S.  And I have met far too many of them in Nicaragua, frequently in the rural areas where education often may not exceed third grade due to the need for every family member to work for the family’s basic sustenance.  The need to eat comes before the ability to read.

This is the context in which “Let’s Read, Reading Is Fun!” was born and continues to grow in Nicaragua.  (I have written about the program here previously, but it continues to be one of the most directly impactful and [for me] personally satisfying endeavors that Winds of Peace Foundation supports.)  The premise is simple: get books into the hands of school-age children and thus release the inherent joys to be found in reading.

It’s easy to take reading for granted when using the skill everyday.  We read books.  We scan newspapers. We network within social media.  We send and receive e-mails.  We read menus before dining, ballots prior to voting, road signs while driving, and airline tickets before boarding.  In short, reading is perhaps the essential skill of modern living.  But in Nicaragua, books are not in great supply, so reading skills become stalled for lack of attractive and engaging materials.  I can only imagine what my own literacy might be today without help from Dr. Seuss and The Hardy Boys.  Where might you be today without the ability to read?  (Among other things, you wouldn’t be reading this essay!)

“Let’s read, Reading Is Fun” recognizes the essential need and right that is reading.  In 2017,  another 9,670 books were distributed within 313 schools.  Since its inception in 2010, nearly 54,000 children have participated in the reading program, honing a skill that forever changes who they are and what they will become.  (The full report of the “Let’s Read” campaign for 2017 and its cause and effect is posted under the Education Funds section of this website, located on the homepage.)

If you are able to read this entry, congratulations on possessing the skill to do so.  While the content written here may not shape your future or your character, what you absorb from the written word elsewhere most certainly will.  Go read a book- it will change you.  It’s a particularly good thing to know that in rural Nicaragua, those same transformations are happening.  You can make book on it….

 

The construction of a just peace in Colombia

The construction of a just peace in Colombia

René Mendoza Vidaurre[1]

Colombians, weapons have given you independence, but only the law will give you freedom.

Francisco de Paula Santander (1792-1840), Colombian leader

The law of the jungle should not be the law that our children follow

Seanna Wolf, ex Irish prisioner.

The weak can never forgive. Forgiveness is an attribute of the strong

M. Gandhi

Colombia is the country with the highest level of inequality, the oldest democracy and the longest armed conflict in Latin America. It is a country that now has the opportunity for peace, strengthen its democracy and reduce its inequality, particularly the agrarian inequality. Will it be able to take advantage of this opportunity? Far from showing majority support, and improving laws so that they be given freedom, as Santander would suggest, the peace process appears to polarize society even more, making the “law of the jungle” bleed their social leaders, and contrary to the words of Gandhi, making forgiveness a sign of weakness. How can changes be generated that would lead toward peace with justice and shared prosperity? That question concerns us in this article.[2]

1.     Introduction

The signing of the Peace Accords in November 2016 marked a before and after in Colombia. Society is involved in a broad debate. The most repeated words are: peace accords, reincorporation, reinsertion, demobilization, ex-combatants, reconciliation, normalization, forgiveness, illicit crop, territory, guerrilla, comrade, partner…They are disputed words: “worthy reincorporation into the legal system” versus “reincorporation of the communities against the system of injustice”; “normalization” versus “Who is normal?”; “peace accords of the government and the FARC” versus “rural communities do not know these accords and the governors of the regions are opposed to these accords” and “we already disarmed them, now let´s do what is in our interests, let´s ensure that they do not return to dissidence”; “Colombian democracy is the oldest democracy in Latin America” versus “it is a mafia-like, oligarchial and corrupt democracy”. They explain the meanings: “partner, in the war we would hunt some animal and the family would give us rice, or we protected them and they gave us food, that is why we would call them partner”; “demobilized from weapons, but mobilized by the ideals of justice and democracy”. And solutions for attracting excombatants abound: solidarity economics, inclusive business, cooperativism, corporations, Jesus Christ Savior, production projects…

After 52 years of war between the Revolutionary Armed Forces of Colombia (FARC) and the government, and even in the process of negotiation with the National Liberation Army (ELN), society seems more polarized about the peace process. The October 2016 plebiscite revealed this reality: half of the country said it should be ratified, the other half said no. What explains this polarization that is capable of undermining the peace process? There are at least two attitudes (see Figure 1), one that is cultivated by a society at war, manipulated by elites and resting on a brutal, even though resisted, inequality[3]; and the other that sees the peace process as the opportunity to economically, socially, and politically democratize the country.

Inequality is the key element for explaining the realities of Colombia, be those the armed conflicts or the successes that the peace accords might have. Consequently, following the words of Stiglitz in Bogotá in February 2017[4], “there can be no sustainable economic prosperity unless that prosperity is shared”. How can changes be generated that in the long term might lead toward a peace with justice and shared prosperity?

In this article we reflect on this question taking inspiration from some experiences in Central America, having shared with different actors in the framework of international events in Bogotá, and listened to friends in Colombian academia who are working so that this peace opportunity might help democratize the country. Our motivation is the conviction that if the most unequal country in Latin America deepens its democracy, all of Latin America will feel those winds of inclusion and democratic aspiration.

2.     Perspectives on peace and democracy

Here I identify two models of interpretation of the conflicts and democracy. The first model is “top down”, from war to peace and from authoritarianism to democracy; or polyarchy, a system for containing the pressure of the masses for social change, where decisions and mass participation are reduced to choosing leaders in elections controlled by elites (Robinson, 1996, 2002, 2014[5]). In this perspective the conception is that the armed struggle is an obstacle for democracy, that democracy generates a society without conflicts, that society resolves its contradictions competing for votes, and is modernized based on free trade competing efficiently. Correspondingly, judicial and electoral reforms are done so that laws guide the masses, and the (neoliberal) economic model is fine-tuned, understanding that peace is established on the basis of development; and development means economic growth and the extraction of natural resources to the benefit of an elite (traditional extractivism), or neoextractivism that, as Escobar observed (2012)[6], is also to improve social infrastructure (education and health) and reduce poverty – in other words, the extractivist model is invariable- what varies is whether it is only for an elite or for more,[7] and whether the State plays an active role (iun the neo-extractivism).

The second model is the “bottom up” one, where the idea is that armed conflicts were, and now the social movements are, the basic conditions for resolving historical contradictions and promoting a sustainable democracy (Robinson, 1996, 2002, 2014). Correspondingly, the participation of the population is promoted with their respective life paths, that peace is established with alternatives to development where economic growth and markets, as Gudymas and Acosta argue (2011[8]), are subordinated to the model of wellbeing understood holistically, with social, economic and environmental sustainability. In this framework, peace is achieved to the extent that inequality cedes and the (neoliberal) economic model changes to one of collective well being.

Figure 1 and the words within which the entire country moves can be reread in the light of these two models. From the first model the peace accords express the victory of democracy over the armed struggle, which is why those who are demobilized should submit to the law, ask forgiveness for their fighting and integrate themselves into the neoliberal economy and formal democracy, while the government provides material and legal benefits to the disarmed groups and ensures order. From the second model the idea is that the armed struggle opened an opportunity for democracy to deepen, disrupting State institutions and markets within a perspective not of intensifying development, but of providing space for development alternatives, because it is precisely the reigning development model that produces the inequality and armed conflicts.[9]

Making these perspectives explicit can be reflected in the role of the State, the FARC, social movements, academia, the churches, cooperatives and international aid agencies. Let us give two examples. The first example, academia, following the example of model 1, it is seen armed with categories and methodologies that have sustained the model of development that has generated the inequality and that is opposed to peace; or, following model 2, it can be seen proposing new categories and methodologies coherent with the development alternatives model. The second example, international aid, following model 1, believes it knows the realities of the rural communities and it knows the solutions, which is why it aligned up project writers to hunt for profitable “production projects”, or that at least in the short term would keep ex-combatants from taking up arms again; or, following model 2, democratizes their decisions and opens itself up to understanding the multiple realities of the peasant, indigenous, and afro-descendent communities, and takes the risk of listening to and responding to solutions that maybe do not fit in the neoliberal economic model in which it tended to locate itself. Being part of the solutions and contributing to peace begins disrupting our own attitudes and comforts, that maybe are as authoritarian and centralizing as those of any institution or organization that we are happy to criticize.

3.     What is concealed and what is sought to change

Having this broad perspective, we notice that the armed conflict with the FARC began with two key concepts, the agrarian reality and democracy. The Historical Commission on the Conflict and its Victims (2014) published 12 essays of authors who studied the causes and effects of the conflict in Colombia[10]. Even with different perspectives, all of them agree on the fact that the agrarian issue and the fragile liberal democracy were determining causes, which is why in their recommendations they highlight the fact that changes should happen in land use and access, and that work be done on an economic model where equity would prevail. If Colombia is the most unequal country in its income (CEPAL, 2017), the inequality is worse in the agrarian reality: the gini coefficient for income, where 1 is equal to complete inequality and 0 is equal to complete equality, was 0.530 and the gini coefficient in rural property was 0.897 in 2015; while that coefficient for income improved, because it dropped from 0.564 in 2009, the coefficient for property went up from 0.885 in 2009.

The agrarian question refers to landownership, its use, technology and markets. The key in that is access to ownership of the land. The graph and table 1 show that in the same period of the armed conflict inequality for access to property in Colombia has gotten worse: the Gini Coefficient from 1960 to 2014 went from 0.868 to 0.897.[11] In the same period 0.5% of total owners with more than 500 Hectares of land went from having 29.2% of total land to having 68.2%; while around 88% of total owmers with less than 20 hectares went from having 17.3% to only having 8% of total land[12].

Table 1. Comparison of number of APUs and land used by range of size
1960 2014
APUs AREA APUs AREA
<5 66.7 5.4 70.5 2.7
5 to 20 20.4 11.9 18 5.3
20 to 50 6.7 12.4 6.2 5.8
50 to 200 4.7 24.2 4 11
200 to 500 1 16.9 0.8 6.9
>500 0.4 29.2 0.5 68.2
100 100 100 100
Source: IGAC (2012) Atlas of rural property distribution in Colombia; 2014 Agricultural Census

The cause that generated the armed conflict intensified. This is even worse if we take note of the increasing use of mono-cropping and extraction of natural resources, as well as the financial barriers (e.g. credit in accordance with “capacity to pay”) and commercial barriers (free trade treaties) that affected around 80% of the property owners of the country. The impact of that reality on the country is alarming; socially, Colombia is the country with the largest number of internally displaced people in the world, and “violation of human rights has become a habitual practice” (Oxfam Internacional, 2017)[13]; politically, it is fragile democracy because of its liberal institutions where the connection between arms and politics prevails (Gutiérrez, 2014)[14]. Peasant, indigenous and Afro-descendent communities have suffered the dispossession of their means of life and culture, creating uprootedness and extreme poverty, which has contributed to the armed conflict. Behind that inequality and its impact are hundreds of years of distrust between peasant, indigenous and Afro-descendent families and the families of that group of less than 1% backed by the State and the ideas of “development”; this reminds us of the historian Wolf, who says that the French peasantry at the end of the XVII century had included a phrase at the end of the Our Father that they would pray every night before going to bed: “ and from justice, free us Lord” – that “justice” (State) that dispossessed them from their land and territories,[15] and which the agrarian scholar Machado (2009:54[16], confirms: “the facts show that State action continues breaking up medium size rural property, while large traditional property is not transformed, and small ownership gets even poorer; in other words, the State and society are supporting a bimodal rural structure in ownership as well as in their forms of controversial and not very efficient exploitation, that does not help promote economic growth; in addition, it is a structure that destroys natural resources, undervalues the rural reality and creates conflict between rural society and national society.”

At the same time, that agrarian reality should be qualified. In 1940 the urban population was 30% and in 2012 it was 74%, which is why obviously the weight of the agrarian reality and the notion of what is rural has changed drastically. We do not know the reliability of the Censuses for making distinctions about those changes; but given the large extensions of land that the war included, and the typical problems of legality and forms of land acquisition that our countries of Latin America have tended to suffer, it could be that the table on land ownership would vary, that that bimodal structure might be less and that therefore that structure might express more potential than it now expresses.

The peace accords happened within that context of the incease in inequality and the awakening in society that another economics subordinated to life and democracy is possible. In spite of the fact that after a year there may have been no land distribution yet, while the political opposition defending that 0.5% of large property owners is growing, the peace accords do provide an opportunity for the country to democratize. The question is: will it? Following the mentality of model 1, the problem and its solutions are understood as something technical-administrative, like a “lack of”, precisely to conceal that inequality produced by the fragile formal democracy and the conventional economic model – and to that we would add a perspective closed to the bimodal structure that only sees land and crops. Following the mentality of model 2, the problem and the solutions are understood within the framework of power relationships, change in the power structure (questioning land ownership) and in the people through a different model of improvement – and with that we would add an agrarian perspective that includes land, crops, crafts and recreation of identity). Consistent with the historical perspective and the data presented, we understand that the inequality is above all a problem of the assymmetry in the power relationships, not a technical or administrative problem.

4.     Danger of using peace to heighten the inequality

The bigger risk is that in the name of peace that oligarchic belief is imposed that peace needs more development: economic growth with (neo)extractivism of the natural resources and mono-cropping. It is like saying, the regions of the country are impoverished because of lack of “development”, when it could be the opposite, they are impoverished because of too much “development”.

It is probable that this 0.5% of owners, maybe connected to the finance industry, agroindustry, commerce and the communications media, might see the peace accords as the opportunity to increase their wealth, in addition to legalizing the land that perhaps they obtained through illegal means. That is, far from ceding an inch of land and understanding its importance for peace, they see it as an opportunity for the expansion of the agricultural frontier (in addition to being able to use 70% of the arable land which is unused), new areas free for extraction and mono-cropping, repurchase of land that eventually the State might give out, cheap labor and members of private security bodies among the disarmed, zones free from the FARC in order to control them with armed criminal groups[17] and drug trafficking networks that respond to the demand of the US market, expansion of the financial and agro-chemical industries, “controlable” cooperatives that collect their harvested products and intermediate inputs to them…To take advantage of these opportunities they make use of trade rules, commercial treaties, usury, credit rules[18] and the rules of making policy; and they see the opening of roads, schools and health centers as support.

In a parallel fashion, the avalanche of more-of-the-same solutions makes the disarmed and the rural communities – peasants, indigenous and Afrodescendents –confused. “Inclusive businesses” where the anchor are private enterprises under the principles of “more volume, more profits” and “economies of scale”; cooperatives that discipline their members in mono-cropping, aid organizations responding with projects to “the lack of” technology, knowledge, capital and markets; bilateral aid agencies that with one hand support their own extractive companies and with the other finance actions that would mitigate the effects of climate change; religions (Catholic and Protestant) that win over individuals who would recognize their sins and find forgiveness and glory in the beyond. It is institutionalized technocratic conceit: elites believe they know the realities of the communities, they believe they have the solutions (money, knowledge and decisions) and they believe that change comes from above, while they are moved by a mentality of seeing the agrarian reality as in the past, only land, crops, technology and markets; the worst that can happen is to see the disarmed as agricultural producers and that agriculture is a matter of having land, equipment, inputs and buyers for what is produced.

These solutions also express centenarian and even millennial hierarchical structures. The mono-cropping structure is sustained by a transnational hierarchical structure – be they enterprises, aid industry, Churches, States or academia. The guerrillas also come from a hierarchical Leninist structure of “democratic centralism”. What is common among them is the centralization of decisions in an elite based on informal rules located in the mentality of model 1, not on rules like the Constitution of a country, that statutes of an organization, the agreements of assemblies or the rules of Afro-descendent communities. What is also common in them is the belief that there is nothing good in those “from far below”, and that is why the technician, priest and politician work on persuading. This institutionality, in good measure, tends to be reciprocated by those who are “from far below”, who have internalized that without the boss, commandante or patron, life has no direction; in addition, it becomes a social code: an ex-combatant that shows up to work on a mono-cropping hacienda is familiar with their “order-obey” structure; it seems normal to an activist of a social movement, turned into the director of an aid agency, to have the power to approve projects.

How can this danger be confronted where some good local institutions and communities with strong social and economic networks are being battered? “Everyone for themselves” is a common reaction, ex-combatants and ex chiefs who will seek their own paths in different areas and spaces; others will insist on the promised tangibles goods; many will organize to depend on external resources; in this dynamic, those who persist in their struggle for equality and justice, beyond individual benefits, will be described as terrorists, considered rebels[19] and candidates to be excluded from external benefits and to be part of those leaders physically assassinated[20] and then “assassinated by neoliberalism”. “Everyone help one another” would be more strategic; that is committed to the viability of family agriculture (small scale production or peasant economy) and crafts that would generate autonomy and energize the communal level; a peasant family that diversifies in agricultural and non agricultural activities, uses markets to scale up their income and ensure their food. Within this framework, if that family organizes in a cooperative to resolve collective problems and negotiate resources that inject energy into their production systems and endogenous institutions, they will be contributing to mobilizing their communities and with that, the resurgence of a more just and peaceful society. This does not deny the existence of monocropping and large transnational enterprise, but restrains it, makes visible what is at play in society and shows that it is not a matter of “persuading” and of responding to “the lack of”, but of creating the appropriate conditions in which changes happen in the mentality of society and its institutions

5.     Imperative to focus the direction and the prospects for building an arduous peace

This step requires that the different actors (State, academia, aid organizations, Churches, popular organizations, unions, FARC) rethink their actions. Not only should they support mono-cropping and “the lack of”, but above all families in their agricultural and non agricultural activities, forms of organization and logic in territories of indigenous and Afro-descendent communities, and communities that as Arjona (2016) shows have diverse social institutions, which would have to be understood before prescribing “development” for them. Here we deal with the how.

Figure 2 illustrates the form of relationship between the aid organizations and the communities –populations, disarmed groups, small scale producers or family economy (agriculture, home made products, non agricultural activities). There we see that there is a certain amount of dispersion between the organizations and institutions and they have different discourses with the different rural communities – peasant, indigenous and Afro-descendent. But they coincide in relating to the communities through the “intermediate stratum of development”, who are the technicians, promoters, religious and aid workers. This “stratum” connects two worlds, that of the aid agencies and institutions, and that of the communities[21]; even though in practice the “intermediate stratum” might be more a prolongation of world 1, it tends to turn into world 3, interpreting world 1 and 2 from its perspective. For example, the State through the Reincorporation and Normalization Agency (RNA), has hundreds of technicians going to the communities, as do the aid agencies, churches or the FARC through their structures and technicians responsible for writing projects, encouraging and facilitating organizational processes. We predict that the peace process will be consolidated in its version of responding to “the lack of” with goods and services coherent with the perspectives of model 1, or its version of responding to the democratization of the country coherent with the perspective of model 2, or combining both versions, to a large extent depending on the work of this “intermediate stratum.”

What is common in this “intermediate stratum” molded by world 1? It tends to avoid the fact that the root of the problem is the inequality, underlying a mentality of the rural reality as equivalent to agricultural area and families in need of equipment and infrastructure, and assumes as a mandate the clamor of the aid agencies (“we want production projects”) and that of the government (“we are going to finance viable projects in market economies”). They assume that the work is persuading – be that about tangible goods like replacing illicit crops, the gospel, rules of associativity, productivity, commerce, democracy or gender equity. Each one has their reference in something external to the community: the religious, in the Bible; lawyers, in the laws of the country; agronomists, in the manuals for monocrops, the promoters of cooperativism, in the Statutes…All of them march to evangelize the communities in order to hear what they want to hear, and then returning to their offices they can also make the aid organizations hear what they want them to hear: number of technicians trained, people empowered, projects approved, people benefitted, cooperatives…

John P. Lederach, a Peace Accord advisor, said: “peace is achieved when each Colombian has respect for differences and establishes constructive relationships with the other, with that other that it has not wanted to, or not been able to listen to, for more than a half century[22].” Specifically the challenge is that this group from the “intermediate stratum of development” would overcome their logic of persuading and be capable of listening and observing, processing what is heard and observed, and learning from their conversations under the principle that “light comes from striking stones” – that light can be an idea about a project, awakening to alienating processes and their profound traumas, or paths for collective action. And that then, that “intermediate stratum of alternative development models” can talk with the organizations of world 1 and contribute to their change.

Let´s illustrate this perspective with the formation of a cooperative. According to the logic of persuading, a cooperative is organized with 40 hours of training in cooperativism, they name their manager, and it is provided resources and markets for their products; as a result, the criteria of success is forming hundreds of cooperatives without considering that this type of cooperatives fail quickly or end up being run as private enterprises in “cooperative” clothing[23]. With a logic of learning, the cooperative is organized when its members wake up in the face of an adversity,[24] and because they realize that there are obstacles that they cannot solve on their own, discover the value of their own resources, and that there is another way of organizing outside of the hierarchical structures of mono-cropping and the boss-followers – or as José M. Navarro would say, a member of the La Fábrica cooperative in Barcelona, “a cooperative enterprise opposed to capitalism”. Along this path the member families, studying their realities and experimenting with changes, discover their capacity to innovate, their citizenship (rotating leaders, complying with their rules and agreements, supervising that compliance), administering and investing their collective resources and strengthening their connections with the rest of the community, and recreating new identities within the framework of new realities that look beyond the agrarian reality seen as equivalent to crops. Table 2 shows some elements of this type of cooperative that responds to its members, and that it is possible to produce within a framework of mutual learning and in alliance with the three worlds in accordance with each specific context, and thanks to the creative and catalyzing role of the “intermediate stratum”.

 

Table 2. Keys for successful cooperatives
·       Interaction between the associative side (organs) and the business side (administrative-technical)
·       Effective functioning of the holy cooperative trinity: oversight board, administrative council and assembly
·       Organization around differentiated products (e.g. specialty coffees, organic products) because it requires coordination among several families, geographic concentration
·       Distribution of earnings and definition of goals in the assembly
·       Based above all on their own resources and on endogenous institutions (of aid)
·       Accounting system that generates updated information to be used by the administration and the cooperative´s organs
·       Organizing 1st tier cooperativen on the basis of their members, and organizing 2nd and 3rd tier on the basis of the 1st tier cooperatives, and not the reverse.

This way of working, illustrated with the formation of a cooperative, requires accompaniment with a mentality of going to learn from the communities, from the disarmed groups. Said figuratively, the families in the communities know 50% of their problems, risks and opportunities, and their accompaniers (the restructured “intermediate stratum”) know the other 50%. The innovations emerge from among both sides (“from the striking of the stones”). Correspondingly, this group of accompaniers needs to unlearn in order to learn, increase their capacity to observe and dialogue so that together with the families they detect innovative practices and rules. In this way technicians and promoters will get ideas that they can turn into projects, experiments or initiatives; religious discern that God is in the people who seek justice and organize; administrators learn that the accounting information is not a tool for domination but formation (“informing is forming”)…The best guide that this type of work is on the right path is that both, the families and the accompaniers, awaken to the extent that they are learning.

For this purpose it is fundamental that all the actors from the different worlds rethink their role[25], in particular academia and international aid agencies. Academia, in order to contribute to the formation of that “intermediate stratum”, should produce appropriate categories coherent with model 1 as well as model 2. For that purpose it should organize basic research (e.g. sector analysis of agro and non agro) along with specific research combined with experimentation in specific territories, whose results would be the basis for organizing training. This, nevertheless, requires that academia understand that the source of knowledge is not just imported theories, but different communities with their multiple realities, all of them in need of being conceptualized within a framework of alliance and not just applying theories; and that requires that they include in their gamut of methodologies the organization of thoughtful immersion processes on the part of professors and students in those very territories[26]. The best critiques and policies of conventional theories, and rereadings of the land ownership table, will come from seeing the realities from the multiple perspectives of the countryside.

This strategic change from the “intermediate stratum” and the work of decolonialized academia, requires an active and renewed role of international aid. For this role, international aid should review their own practices in the last 3 decades, practices questioned in the entire world (see for example, Anderson et al, 2012)[27] because their aid has generally helped the type of “development” that has contributed to the inequality and have “ngo-ized” organizations (unions, cooperative and associative organizations) and social movements, dispossessing the families of their own organizations. This revision implies that the aid organizations in Colombia quit waiting for “production projects” from the “intermediate stratum of development”, and influencing the type of projects and centralizing decisions about those projects. This implies that they contribute to creating institutional environments in the territories where the different actors of each territory and the “restructured intermediate stratum” study those realities and produce ideas that really matter to them, and that the decisions about the projects that emerge be decentralized. It implies that the international aid agencies be conceived as allies of the peasant, indigenous and Afro-descendent communities, in favor of democracy and the reduction of inequality in those very territories – allying is like falling in love, and this requires that the “boyfriend” or “girlfriend” (aid agency) moves to the territories where their partner is.

If the communities feel that they have allies in academia and in aid agencies, who join their voices to those of the communities so that their leaders do not continue to be murdered and that they value the fact that they organize on the basis of their own good – and correcting the bad – institutions, then the peasant, indigenous and Afro-descendent communities with different degrees of connections with the FARC and other actors, will take their steps for improvement, will mobilize, will make their decisions more democratically and will understand that the reduction of inequality from the territory itself – with geographic variations – is possible, necessary and just.

6.     Conclusions

The agrarian and (neo) extractivism realities continue to weigh economically, socially and politically on the country, which is why peace should be built on the basis of reducing inequality. The greatest obstacle to the peace process is the institutionality that sustains that inequality. This institutionality has to do with elite economic groups that want to consolidate the peace process with the same mechanisms that caused the armed conflict, and with an agrarian mentality from when the rural population were the majority in Colombia. These mechanisms are expressed in the extractivist and mono-cropping neoliberal economic model moved by the law of the jungle, even though clothed in democracy, a model that has been called “development” or “motors of the economy”. The paradox is that an attempt is made to consolidate peace with the same measures that led to the armed conflict.

This “development” model is clear, seen as the economic model of the elites; but it is not so clear to us that the actors who declared themselves in favor of peace had a functional modus operandi for this model. Because it would seem that there is not much difference between centralizing the decisions of approving “profitable productive projects” and the decisions of the political and economic elites concentrating land, between academia that believes it has solutions in imported theories and the aid organizations that believe they know the future of the peasantry without studying it, or businesses that think that the market knows more than any human being, between the hierarchically organized FARC and the Church and families also organized hierarchically…This shakes up our minds and wakes us up!

If waking up matters a lot, we identify the most important point of change is the “intermediate stratum of development” (administrators, technicians, aid workers, religious) who have served to convince the world of indigenous, peasant and Afro-descendent communities about the world of “development”. We suggest investing in retraining this “intermediate stratum”: that they move from a logic of “persuading” and writing projects for “the lack of”, toward a logic of “learning” and identifying along with the communities ideas in accordance with the different routes and rural institutions in which they move; from prescribing to knowing how to negotiate in the midst of uncertainty. To do so, we argue, the work of the university research centers and international aid agencies is needed; the former with alternative categories to the “development” model, and the latter constituting itself as serious allies of the different communities, recognizing that they are sources of knowledge and seeds for a more democratic and just society.

The peace process in Colombia is a global challenge that generates optimism. In Japanese culture we find two meanings for the word “optimism”: rakutenteki, the feeling of the future that a young person has about their adult life, and rakkanteki, when people accept their problems as challenges to be faced[28]. This optimism (rakkanteki) encourages us to review our own mentality and to recognize that peasant, indigenous and Afro-descendent resistance is also our resistance to inequality and the mechanisms that sustain it. Peace is possible, in spite of “development”, under the spirit of Santander, and as the “effect of justice” (Isaiah, 32:17).

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

[2] I am grateful to the comments of A. Bendaña, E. Baumeister and J. Bastiaensen for their commentaries on a previous version. The text is a draft to be improved and commented on by each person who reads it.

[3] CEPAL, 2017, Social Panorama of America Latina 2016, Table I.A1.2, shows the gini coeficiente for income for 14 countries in Latin America. In 2008 or 2009 Colombia is the country with the greatest inequality (0.564) and for 2015, even though it improved, continues being the most unequal country in Latin America (0.530). See: http://repositorio.cepal.org/bitstream/handle/11362/41598/4/S1700567_es.pdf

[4] Stiglitz, J., 2017, “Challenges    and       Opportunities      for         Colombia’s        Social    Justice   and Economy”, power point presentation, see: https://www8.gsb.columbia.edu/faculty/jstiglitz/sites/jstiglitz/files/Challenges%20and%20Opportunities%20for%20Colombia%27s%20Social%20Justice%20and%20Economy.pdf I am grateful to A. Grigsby for suggesting this text.

[5] Robinson, W., 1996, “Promoting Polyarchy: Globalization, U.S.,” in: Intervention and Hegemony. Robinson, W., 2002. Remapping development in light of globalization: From a territorial to a social cartography, in: Third World Quaterly, No. 23.6. Robinson, W., 2014, “Democracy or polyarchy?” in: NACLA. https://nacla.org/article/democracy-or-polyarchy

[6] Escobar, A., 2012, “Alternatives to development”, in: Transition Culture. Dave Chapman´s interview of Escobar, See: https://www.transitionculture.org/2012/09/28/alternatives-to-development-an-interview-with-arturo-escobar/

[7] It is thought that neoextractivism is generally the case of Bolivia and Ecuador, but more and more used in several Latin American countries.

[8] Gudynas, E. y Acosta, A., 2011, “El buen vivir o la disolución de la idea del progreso” in Rojas, M. (Coord.), La Medición del Progreso y del Bienestar. México: Foro Consultivo Científico y Técnico, in: http://www.gudynas.com/publicaciones/capitulos/GudynasAcostaDisolucionProgresoMx11r.pdf

[9] This duality of “development” / alternatives can also be seen in the duality between contemplation (leisure) and work (business) from the ancient times of Greece up to our times. It has moved from favoring contemplation to giving the highest moral value to work (business), passing though the religious thought of Calvin where leisure (contemplation) became sin and business like the glory of God (see: Rul·lán Buades, G., 1997, Del ocio al neg-ocio… y otra vez al ocio. Papers 53, 171-193. https://ddd.uab.cat/pub/papers/02102862n53/02102862n53p171.pdf). It is a duality that model 2 would seek to connect to one another.

[10] The 12 essays of the Historical Commission of the Conflict are in: https://www.ambitojuridico.com/bancoconocimiento/constitucional-y-derechos-humanos/los-12-ensayos-de-la-comision-historica-del-conflicto-y-sus-victimas

[11] Using indexes like THEIL, instead of Gini, the inequality is even worse. A more detailed study probably can demonstrate the weight of the medium strata, more than a bimodal structure, which would be important in light of more appropriate rural policies.

[12] For a more detailed study of the Agricultural Census in Colombia, see: Oxfam International, 2017, Radiografía de la Desigualdad. https://www.oxfam.org/sites/www.oxfam.org/files/file_attachments/radiografia_de_la_desigualdad.pdf

[13] See Oxfam International in Colombia: https://www.oxfam.org/es/paises/colombia.

[14] Gutiérrez, F., 2014, “¿una historia simple?” en los 12 ensayos de la Comisión Histórica del Conflicto y sus Víctimas. https://www.ambitojuridico.com/BancoMedios/Documentos%20PDF/una-historia-simple-1447167162-1460380556(1).pdf

[15] Wolf, E., 1982, Europe and the People Without History. University of California Press.

[16] Machado, A., 2009, La reforma rural, una deuda social y política. http://www.cid.unal.edu.co/cidnews/archivos/ReformaRural.pdf See also UNDP, 2011, Colombia Rural, razones para la esperanza. Informe Nacional de Desarrollo Humano 2011, http://www.co.undp.org/content/dam/colombia/docs/DesarrolloHumano/undp-co-resumen_ejecutivo_indh2011-2011.pdf

[17] Arjona (2016), contrary to the idea that war zones are chaotic, lawless zone, finds communities with social institutions where the armed structures becomes de facto governments and communities with strong justice institutions capable of negotiating with the armed groups. See: Arjona, A., 2016, Rebelocracy: Social Order in the Colombian Civil War. Cambridge University Press.

[18] The norms for providing credit include “lending money to people with the capacity to pay.” This supposes that those who are not in monocroipping and do not have large areas, are outside of the credit system. This type of mentality was turned upside down in Bangladesh by Yunus and his team, in the 1970s they proved that everyone is capable of paying and that the bank needs to adapt to their realities. If more than 50% of the food comes from peasant families, why doesn´t the financial system respond to that reality?

[19] Hale (2002) observed in Guatemala how international organizations make distinctions of the indigenous organizations between the “permitted” ones, those who drop their agendas to take on the agenda and rules of international aidm and the “rebels”, those that resist and respond to the agenda of their members-communities. The former are given financial support and the latter are not. See: Hale, Ch., 2002, “Does Multiculturalism Menace? Governance, Cultural Rights and the Politics of Identity in Guatemala” in: Journal of Latin American Studies 34.3 Cambridge University Press.

[20] See the newspaper el Tiempo (17-Octubre-2017), “Líderes asesinados, la mayoría en zonas claves para la paz”: http://www.eltiempo.com/politica/proceso-de-paz/asesinato-de-lideres-sociales-fue-en-14-zonas-de-circunscripciones-de-paz-142126

[21] Academia (Universities and research centers) also are part of the block of aid organizations, but their relationship with the communities tends to be sporadic, which is why we have not included them in the figure, while their relationship with the “intermediate stratum” is strong because that “stratum” was trained in the universities and they also organize training courses in solidarity economics and other topics directly for that “stratum”.

[22] Interview of John Paul Lederach, “La paz lo construye cada Colombiano”, El Espectador, June 8 2016. See: https://colombia2020.elespectador.com/pais/la-paz-la-construye-cada-colombiano-john-paul-lederach

[23] Honesty is not lacking in the organizations of world 1 (figure 2): “it does not matter that these cooperatives or projects are not sustainable years later, the important thing is gaining time so that the ex-combatants do not go back to war”.

[24] The adversity is the inequality in land access, the commercial mediation that steals from them in the weighing of their produce, quality control and in prices, or in usury. A savings and loan cooperative that organizes in the face of usury, for example, begins on a good step, because having awareness of the adversity means having recognized (studied) and having realized that bringing their own resources together they can avoid the usury.

[25] For example, for the business actor, the persepective of Kaiser is interesting (2012, La fatal ignorancia La anorexia cultural de la derecha frente al avance ideológico progresista, http://ciudadanoaustral.org/biblioteca/23.-Axel-Kaiser-La-fatal-ignorancia.-La-anorexia-cultural-de-la-derecha-chilena-frente-al-avance-ideolo%23U0301gico-progresista.pdf). He observed that the business class and the right in Chile “do not understand nor believe in the power of ideas and culture as decisive factors of the political, economic and social evolution”, and that they only focus on productivity, technology and financial incentives, forgetting that human beings are moved by beliefs, values and ideas transmitted by the family, schools, books…Kaiser thinks that that bourgeoise and that right fell into a mental anorexia that opened the door to the left. From our perspective, that mental anorexia also is shared by the left and most of the organizations and international aid organizations today.

[26] Mendoza (2015) describes this methodology, precisely based on an experience of a Research and Development Institute in Nicaragua, that for some years was capable of based a good part of their proactive innovation on that methodology of immersion. See: Mendoza, R., 2015, “Inmersión, inserción, escritura y diálogo: Mecanismos de aprendizaje para el desarrollo territorial”, en: Bastiaensen, J., Merlet, P. y Flores, S. (eds), Rutas de desarrollo en territorios humanos. Las dinámicas de la vía láctea en Nicaragua. Managua: UCA Publicaciones. http://www.fao.org/fileadmin/user_upload/AGRO_Noticias/smart_territories/docs/RUTAS%20DE%20DESARROLLO_VERSION%20FINAL_LIGERA.pdf

[27] Anderson et al, 2012, Time to Listen: hearing people on the receiving end of international aid. http://www.elrha.org/wp-content/uploads/2015/07/time-to-listen-book.pdf

[28] This notion of optimism was expressed by Kishida Junnosuke, chief editor of the Asahi Shinbun newspaper, to the question of Peter Schwartz in 1984. See: Schwartz, P., 1991, The Art of the Long View. New York: Doubleday.

How to keep from tripping over the same stone twice?

How to keep from tripping over the same stone twice?

René Mendoza Vidaurre[1]

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

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

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

  1. Crisis Situation in COMUCAP

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

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

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

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

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

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

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

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

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

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

  1. The energy to get out of the crisis

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

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

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

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

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

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

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

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

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

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