Progress Report for Cooperatives in Barlovento, Venezuela
Wednesday, March 11, 2009 (22:27:41)

Posted by maheshvarananda

New data obtained between Oct. 19th and Oct. 23rd of 2008
by Spencer Bailey
The Prout Research Institute of Venezuela (PRIV)

A.Introduction and Methodology
B.Cooperative Profiles and Assessments
C.Recommendations and Conclusions
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A.Introduction and Methodology

Between June and July 2007, the Prout Research Institute of Venezuela, along with other volunteers and community workers visited over sixty cooperatives in the Barlovento region of Venezuela. Their goals were threefold:

i) strengthen the relationships between cooperative members, the broader Barlovento community and the representatives of PRIV;
ii) obtain video footage of interviews with cooperative members and a glimpse into their daily activities for use in a documentary film project*;
iii) administer an eighty-question survey to document in more detail the genesis, composition and activities of the cooperatives to gain a general sense of the collective character of the organization.

In October of 2008, PRIV volunteers returned to Barlovento to conduct follow-up investigation into the status of the cooperatives and to present them with a copy of the documentary film.

There were three methods of investigation:

i) informal dialogue to gain a general sense of their collective well-being;
ii) review of last year’s survey and repetition of select questions to record and explain any changes in structure, operations or morale;
iii) audio recording with the following questions used to prompt discourse:

a.What challenges has the cooperative faced, how were they
dealt with and what was the end result?
b.What successes has the cooperative enjoyed and what led to them?
c.What are the cooperative’s main strengths and weaknesses?
d.What does the cooperative need most at this very moment?
e.What changes can the government make to better support the cooperative movement?
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B. Cooperative Profiles and Assessments

1. Lanceras de Dedal
Sewing Coop., founded in 2005 with 65 original members.

Profile:

This all-female coop took out 230,000 BsF in credit to purchase the building, sewing machines and materials. Between 2005 and 2007 their contracts increased slowly, but steadily. In 2006 they earned 19,000 BsF and a significant portion of the original loan remains.

The outgoing and incoming administrators have all received training in coop management and financing from Vuelvan Caras. Members with little or no previous sewing skills were trained to use the machines.

Assessment for 2008

Unfortunately this coop has fallen on increasingly difficult times since the beginning of 2007, but their story provides a valuable example of the challenges that face most coops and the pitfalls that can result from disharmony in the collective body and poor communication.

Of the original 65 members, only eight remain. They currently have no standing president or treasurer, which has led to a leadership vacuum and an effectively frozen financial account. Remaining members were not sufficiently trained to take over the finances (ex. unsure of how to fill out documents) so they are unaware of the status of their accounts and feel disempowered.

Presently, the greatest challenges to the cooperative are filling the administrative vacuum with an honest and educated individual; obtaining new contracts; and finding workers who are already trained.

Many people would like to join the coop but lack training. The remaining members cannot afford the time or the money to adequately train them.

They have received some government contracts in the past (ex. to supply local military units with new uniforms), but nothing in the past year.

Administration and Communication
This has been the weak link responsible for most of the cooperative’s problems. Many issues that could have been remedied over time with strong leadership and open communication were neglected and allowed to worsen.

The mass exodus of members was caused primarily by a lack of confidence in the administration: the original president was caught stealing and the second president, along with the treasurer, walked out without telling the rest of the coop or turning over valuable bookkeeping information.

Total lack of transparency, equality, accountability and leadership.

Past administrators behaved like capitalist owners: they failed to manage according to cooperative theory and made no effort to instill the collective body with cooperative ideals and principles.

Meetings were not fully participatory and administrators did not share financial information or progress reports with the members at large.

When outside help was sought, consultations were held behind closed doors with the administration only and members were completely shut off from the managerial process.

Values and Vision
No effort was made to build a common work ethic, morality or vision; therefore greed was allowed to dominate the productive process.

Many members did not appreciate the house and the machines they had at their disposal and wanted instead to sell them and divide the money.

Training and Education
Remaining members believe that the government officials responsible for cooperative training and education themselves lack the necessary knowledge and do not hold a clear vision of how the community ought to reassemble itself through the cooperative movement.

Since previous governments did not support cooperatives, many people still lack the basic understanding required to be an effective member in a cooperative project.

In regions such as Barlovento, many people lack an understanding of basic finances (such as the conditions of a loan) and therefore hold skewed appreciations for capital obtained through borrowed money.


2. Asociación Cooperativa ASOPA
Fishing Coop., founded in 2006 with 7 original members.

Profile:

This all-male group has been working together as an association since 1999, forming the cooperative to become more structured and secure and to have better access to government financing. They are a close-knit group that works well together and shares a common work ethic and value system.

They received a loan from the Municipal Government to purchase the building and a truck. The coop was able to independently purchase their boats and a computer.

The group possesses great confidence in their leadership and enjoys open and effective channels of communication, including well-structured meetings and strong interpersonal relations between individuals.

Most of the group has received some basic training from SUNACOOP.

Assessment for 2008

ASOPA has paid off their loans and are financially independent. They frequently turn a profit and in the last year have been able to purchase another boat and make donations to the local community, which has helped establish their reputation as a committed and generous group.

They continuously utilize outside labor, hiring non-member employees on 6-month rotations. People who wish to join the co-op must first work a total of one year as a non-member and then provide a contribution of 6000 BsF. The one year ‘trial period’ is to ensure mutual benefit, build a relationship and to solidify a common understanding of the cooperative’s principles, work ethic and group dynamics.

As a group, they practice, teach and study the cooperative constitution and make a conscious effort to embody its ideals. They believe that this has allowed them to overcome greed; everyone is happy with whatever payment, big or small, they receive from one month to the next, since incomes fluctuate greatly according to season and ocean temperament.

There are still 7 members (4 original) and people come and go based on other personal commitments or circumstances.

At the end of the year they divided up half of their earnings and kept the other half in their account to act as a safeguard against unexpected events (critical repairs to boat motors or building plumbing, etc)

The president is not a rotating position and the current individual has held the post for several years. They feel that there’s no need to make changes in that area since there are no complaints or problems.

Their greatest challenge is getting access to new materials to replace worn out equipment and perform general repairs and maintenance to existing capital.


3. Posada Paraiso
Hotel/Tourism Coop., founded in 2005 with 16 original members.

Profile:

This cooperative is primarily female. They are highly dedicated and motivated and they have a clear vision to expand their operations.

They took out a loan of over 300,000 BsF to obtain the capital.

All of the members have received extensive training in tourism and cooperative management from both SUNACOOP and Vuelvan Caras.

Assessment for 2008

Pasada Paraiso has shown consistent improvements in member satisfaction as well as positive collective growth and unity. They are a great example of the benefits of having pro-active problem solving abilities and a clear, commonly held vision for the cooperative.

Whereas in 2007 some members were ‘discontent’ with income levels, the new consensus is ‘generally satisfied’. Also, some members felt that certain individuals were lazy and worked less, but since last year a common work ethic has been universally achieved.

Scheduling grievances were peacefully resolved during meetings. They agreed to divide into two groups of eight and rotate one week on, one week off. As such, each member works an average of 84 hours a month. Most members have a second job or pursue supplementary income in some other capacity.

The coop easily makes monthly payments on their loan and continues to make donations to the local community, most recently a sports team. They hope to expand their business by purchasing one of the adjacent building sites and installing a swimming pool and lounge area.


4. Restaurante Casa Bony
Restaurant Coop., founded in 2005 with 47 original members.

Profile:

This cooperative began with high hopes, positive morale and a genuine love for cooking. There was confidence in the administration and effective, open channels of communication between leaders and other members.

A bank loan of 100,000 BsF was taken to obtain the start-up capital (building, kitchen appliances). Five members and the entire administration had received formal training in coop management from Vuelvan Caras.

By 2007, all original members remained and even though they had not yet been able to make loan payments or produce profit, the morale was still positive and confident.

Assessment for 2008

Only two of the original 47 members remained and the coop was inoperative due to this worker shortage.

Many members became discouraged at the lack of progress. They were too few customers and the lack of income forced many members to find work elsewhere, which proved more economical.

They believe that the government has not spent enough money on training and education programs and that those responsible for administering such programs lack the necessary knowledge and resources themselves to effectively carry out their mandates.

Some new people are interested in joining the coop and they were expecting to be back in business within a few months.
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C. Recommendations and Conclusions

1.An open door policy must exist at all times between all members, meaning all decision-making processes must be completely participatory and democratic.

When the administration of Lanceras del Dedal (1) held closed-door meetings with outside consultants it was clearly out of self-interest. Also, they were denying the potential of the collective mind to envision solutions to their problems and preventing the group from developing and uniting behind the common goal of running a successful enterprise.

2.External changes to government policies or economic structure must be accompanied by complementary priority to nurturing internal change within individuals and communities so as to realize and effectively use the external mechanisms in order to pursue the greater social agenda. The cooperative movement is engaged in a struggle against an entrenched capitalist system based on greed, exploitation and poverty. Integral to the pursuit of equality and self-sufficiency is the development of a collective consciousness through, among other things, acting according to a common set of ideals and having an active visioning process supported by positive community activities.

The self-serving behaviors of the former administrators of Lanceras del Dedal (1) speak to the need for such transitions on both an individual level, where empathy would override greed, and on a community level, where such actions would incur disapproval as an act against collective wellbeing.



3. Feedback mechanisms must be in place between smaller communities and central organizations to learn from the trials, failures and achievements of individual cooperatives to better serve the collective movement.

Members from the ‘Consejos Comunales’ groups in Barlovento feel that their role is directly related to this necessity. Some coop members worry that this unity would simply lead to more bureaucracy and inefficiency.

4. Education and training must be deeper and farther-reaching. Those responsible for training and educating communities and individuals about cooperative principles and management must themselves hold close to their heart the values and the vision of the cooperative movement. Ideally the people occupying such government positions are there out of their own strong volition and possess an understanding or intimacy to the region for which they are responsible.

You cannot expect a vegetarian to prepare a world-class fillet mignon, no more than you can expect an inexperienced public servant to functionally install coop theory onto a dynamic and totally unique cooperative. Models of success, such as esteemed members of Cuba’s cooperative community, should be invited to share their experiences and help educate.

5.The government might consider drafting a simple, universally applicable ‘Cooperative Contract’ that serves to promote and ensure the exercise of cooperative principles and relevant legality. Since members would be responsible for ensuring that the contract is upheld they would have to be educated on its content and function. The contract should be binding and disobedience should carry sufficient, enforceable penalty to prevent exploitation.