No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

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

US Cracks Down on Costa Rica’s Narco Network with New Sanctions

The US Treasury Department moved against a Costa Rican drug trafficking ring today sanctioning four individuals and two entities tied to cocaine smuggling and...

Nicaragua Hosts Historic 2025 AmeriCup Basketball Tournament

The 2025 AmeriCup, the men’s basketball Copa América, tips off this Friday in Nicaragua, marking the most significant international sporting event in the country’s...

Costa Rica Anglers Catch Rare Orange and Albino Nurse Shark

Anglers on a fishing trip off Costa Rica's Caribbean coast caught a nurse shark unlike any seen before: bright orange skin and stark white...

In Costa Rica, Rare White-Lipped Peccaries Still Survive

Today we meet the white-lipped peccary, a large animal that travels in large groups that has disappeared from a large part of its historical...

Honduras Community Demands Justice in Environmental Murder Case

Three defendants accused of murdering an environmental activist in Honduras 11 months ago appeared before a court this Thursday for a preliminary hearing, the...

Costa Rica Drivers Face Yearlong Delays as Tárcoles Bridge Undergoes Repairs

Those who frequently use the South Coast Highway, near the Tárcoles river, will have to be more patient.  Repair works have started on the...
Avatar
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica