HomeArchiveProponents: Cooperatives Can Help Alleviate

Proponents: Cooperatives Can Help Alleviate

THIRTEEN years ago a group of poorentrepreneurs pooled their resources andformed a grocery store cooperative in thenorthern Pacific province of Guanacaste.They used their collective buyingpower to negotiate lower prices and competewith the big supermarket chains, andtoday, Coopecompro employs 380 peoplein 20 stores throughout the Northern Zone,Guanacaste and the Nicoya Peninsula.Every worker owns a share in the business,the lowest salaries are 15% aboveminimum wage, and the business providestraining seminars and scholarships foremployees and their families.“Most of the workers have never seenthe kinds of incomes that they see now,”cooperative manager Walter Trejos toldThe Tico Times.“Most own houses, cars, and manyhave cell phones,” he said, adding “but inCosta Rica even the shoe shiners have cellphones.”THAT kind of success has been repeatedhundreds of times around Costa Rica,which is why proponents of cooperativesagree the movement could be the wind thatblows the country’s poverty level out of thedoldrums.Though they have evolved into morecomplicated, and, detractors argue, bureaucratic,beasts, the idea of a cooperative isthat people have stronger bargaining powerand more capital in groups than alone.For example, small coffee farmers canbuy tools and supplies less expensive whenthey buy in bulk for the whole group, andthey can negotiate better prices when theircombined crops can compete with thecrops produced on big plantations.Cooperatives are usually owned by theworkers, which keeps profits in the community,and by Costa Rican law mustreserve certain percentages of their profitsfor education, insurance, health and othersocial programs for employees, their families,and the communities in which theyoperate.COSTA Rica’s more than 300 cooperativesencompass a broad spectrum ofbusinesses, including produce, coffee,dairy, electricity, savings and loan, jetrepair, cleaning services and tourism businesses,among others. Although statisticsvary, the National Institute for thePromotion of Cooperatives (Infocoop) estimates500,000-600,000 people either workin cooperatives or are affiliated and usetheir services, such as electricity clients,for example.Cooperatives often have been aresponse to hardship and economic shifts,such as after Argentina’s recent economiccollapse when neighborhood cooperativesthrived and some workers even tookover the factories in which they wereonce employed, and many here believethey can turn around Costa Rica’s povertyproblem.For more than a decade, the povertylevel in Costa Rica has hovered around20%, but jumped from 18.5% in 2003 to21.7% last year, the highest rate since1993, according to the Annual HouseholdSurvey by the National Institute ofStatistics and Census (INEC).TO combat this state of affairs, CostaRican economist Luis Garita prescribesmore investment and a broader emphasison social programs.“If we keep going along like this,poverty will not decrease and jobs will notbe created. Most employment comes fromsmall to medium-sized businesses. It’simportant to give them access to creditsand consultation,” Garita said.Garita is a professor of economics at theUniversity of Costa Rica, sits on the board ofdirectors of the state-owned Banco Popular,is former rector of the university, formerpresident of the Chamber of Economists andthe director of the official magazine forCosta Rica’s cooperative movement,Horizontes Cooperativos.Investment and social programs are themeat and bread of cooperatives, he said.

Trending Now

Costa Rica Unveils New ₡100 Coin Celebrating Limón Calypso

Costa Rica is paying tribute to one of its most distinctive musical traditions with a new ₡100 coin celebrating Limón calypso, a genre deeply...

El Niño Squeeze on the Panama Canal Could Raise Costa Rica Import Costs

Drought at the Panama Canal could raise costs for Costa Rica's corn, soy and wheat imports, trade experts say.

Costa Rica’s Nosara Free Nature Trails Through Forests and Wetlands

Nosara is best known for its beaches, surfing and laid-back lifestyle, but visitors to this popular destination on Costa Rica's Nicoya Peninsula have another...

Pacific Coast Faces Its Highest Tides of the Season Through Saturday

If you live near the shore or have a beach trip planned on the Pacific coast this week, expect the sea to reach farther...

JetBlue First Class Is Coming to Three Costa Rica Routes This Winter

JetBlue's BlueFirst first class reaches Liberia Dec. 26 and San José Jan. 5. Here is what the new cabin includes.

Canadian Says She Lost $350,000 to Costa Rica Community Now Under Fraud Investigation

A Canadian woman says she sold everything she owned and lost about $350,000 to a religious community in the southern area of Pérez Zeledón,...

Someone Can Sell Your Costa Rica Land While You’re Away

If you own land or a house in Costa Rica that sits empty for long stretches, someone could transfer it out of your name...

Costa Rica Gets Five Weekly Nonstop Flights From London Heathrow

British Airways now flies nonstop between London Heathrow and Costa Rica five times a week, and for the first time the route will run...

Costa Rica Banks Rank Second Only to Argentina for Dollar Risk, Moody’s Says

Costa Rica's banking system is among the most exposed in Latin America to a sudden squeeze on dollar funding, second only to Argentina, according...
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel