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 Ranks Fifth in the World for Retirees in Global Relocation Index

Costa Rica ranks 20th out of 192 countries and territories in the 2026 Global Relocation Index, and fifth in the world for retirees, according...

Costa Rica Fires Foreign Minister After Trump Meeting Dispute

President Laura Fernández fired Foreign Minister Manuel Tovar today after saying he failed to tell her about a high-level security meeting with U.S. President...

Why Experts Say Costa Rica Is the Best Wellness Trip After 50

Costa Rica keeps turning up at the top of lists aimed at older travelers and retirees. The latest comes from Travel + Leisure, which...

Honduras Adopts El Salvador-Style Prison Measures Against Gangs

Honduras has approved stricter prison rules targeting suspected gang members and drug traffickers, adopting measures similar to those used in El Salvador’s anti-gang crackdown.

Five More Arrested as Costa Rica Steps Up Sea Turtle Protection at Ostional

Five more people have been detained during sea turtle protection operations at Ostional National Wildlife Refuge in Guanacaste, bringing the number of people arrested...

Costa Rica Velodrome Shows Damage Less Than Two Weeks After Upgrade

Less than two weeks after reopening following more than ₡105 million (about $219,000) in repairs, the velodrome at Parque de La Paz in southern...

Brazil’s João Fonseca Pulls Out of Asian Tennis Swing to Focus on Recovery

Brazilian tennis star João Fonseca has withdrawn from the upcoming Asian swing, including the Japan Open in Tokyo and the Shanghai Masters, as the...

Tovar Firing Leaves Costa Rica Without a Foreign Minister for UN Speech

Costa Rica is days from its UN General Assembly address with no confirmed speaker, as a timeline of the Trump meeting dispute and warnings from former diplomats raise new questions.

Atlantic Reaches Late September Without a Hurricane for the First Time Since 1914

The Atlantic Ocean has reached late September without producing a single hurricane, something that has not happened in 112 years. As of this morning,...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

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