The co-operative as The co-operative as institution for human institution for human

development:development:the case study of COPPALJ, the case study of COPPALJ, a primary co-operative in a primary co-operative in

BrazilBrazil

Sara VicariSara VicariResearch Associate - Co-operative Research Associate - Co-operative

CollegeCollege

Panel “Re-thinking Co-operatives”Panel “Re-thinking Co-operatives”London, 3 November 2012 – DSA ConferenceLondon, 3 November 2012 – DSA Conference

A co-operative is...A co-operative is...

VALUESVALUES

self-help, self-responsibility,

democracy, equality, equity, solidarity,

honesty, openness, social responsibility,

caring for others.

PRINCIPLESPRINCIPLES

1. Voluntary and Open Membership2. Democratic Member Control3. Member Economic Participation4. Autonomy and Independence5. Education, Training and

Information6. Co-operation among Co-operatives7. Concern for Community

“An autonomous association of persons united voluntarily to meetmeet their commoncommon economic,

social, and cultural needsneeds and aspirationsaspirations through a jointly-owned and democratically-controlled jointly-owned and democratically-controlled

enterpriseenterprise” (ICA, 1995)

Criticisms from past experienceCriticisms from past experience

Failure of co-operatives in developing countries (Lele, 1981; Attwood and Baviskar, 1989; Holmén, 1990) :

• incapacity in bringing structural change and benefiting the poor;

• affected by bad management;• exhausted by government interference.

But in developing countries, co-operatives, as autonomous member-owned businesses, have rarely been tried (Birchall, 2004)

Human Development and Capability Human Development and Capability ApproachApproach

“Process of expanding real freedoms that people enjoy” (Sen, 1999)

Capabilities: various combinations of beings and doings, reflecting person’s freedom to choose from possible livings (Sen, 1992)

Agency: what a person is free to do and achieve in pursuit of whatever goals or values he or she regards as important” (Sen, 1985)

Framework to conceptualise, measure and evaluate poverty and well-being as well as the institutions and policies that affect them

(Robeyns and Crocker, 2009)

The co-operative advantageThe co-operative advantage

ENTREPRENEURIAL FEATUREENTREPRENEURIAL FEATURE

• Local development actors – wealth distribution

• Income- related capabilities:

(e.g. nutrition, housing, etc.)

PARTICIPATORY FEATUREPARTICIPATORY FEATURE

• Empowerment from economic democracy to other life domains

• Gender relations and household decision-making (Burchi and Vicari, 2012)

The case study of COPPALJThe case study of COPPALJ

Aimed at verifying through empirical assessment whether participation in a primary genuine co-operative, located in a low human development area, might improve member agency and well-being

Lago do Junco, HDI: 0.567 (Angola, 143°)

Maranhão HDI: 0.68 Brazil HDI: 0.813

Controversial history of co-operatives

COPPALJ as a genuine co-operative• Founded in 1992, as a result of a common action

against monopsonistic power of landowners

Invited5%

Participation and

community development

21%

Access to knowledge

5%Access to market,

production, work40%

Family wellbeing

29%

• “Open door”; 40.4% of members has been in charge of decision-making positions (max for 4 years – turnover)

• Governance: 2 General Assembly per year; on average 4 meetings per month in every community

MethodologyMethodology

QUALITATIVEQUALITATIVE QUANTITATIVEQUANTITATIVE• Survey: 63 members – 84 non-

members• Questionnaire based also on OPHI

work on missing dimensions• Propensity Score Matching

(Rosenbaum and Rubin, 1983)• It “corrects” the estimation of

treatment effects checking for the existence of other factors which could influence participation

• Card game• 4 groups• 14 cards out of 30

Findings/1 – economic freedomFindings/1 – economic freedom

• Increased Babaçu value and member purchase power

• Price 50% higher than average price of dealers

• Members can buy goods at 20% less

• Yearly refund

Findings/ 2 – nutrition/shelterFindings/ 2 – nutrition/shelter

*p-value<0.1; **p-value<0.05; ***p-value<0.01

*p-value<0.1; **p-value<0.05; ***p-value<0.01

Findings/ 3 - GenderFindings/ 3 - Gender

• Power relations at home• Balanced gender

representation in the Board (42% women, 58% men)

• 2 women presidents• co-operative members:

higher capability to participate in decision-making and share decisions with their partner than people in the control group (domains: job tasks; health; HH expenditures) (Burchi and Vicari, 2012)

Findings/ 4 - AgencyFindings/ 4 - Agency

• 'Babaçu Livre' law legally provided small farmers with free access to Babaçu palms, even if located on landowner property;

• Woman co-operator elected as Municipality councellor

Findings/ 5 - EducationFindings/ 5 - Education

• Adult and youth education

• Intergenerational transfer of values

• “Learning by doing”

Conversion factorsConversion factors

• Personal CF: Education

• Environmental CF: Own truck and community-based system of production collection

• Social CF: strong bonding and bridging social capital; supportive government; inclusion in ethical domestic and international value chains.

ConclusionConclusion

• Co-operative uniqueness relies on its double entrepreneurial and participatory nature, thus expanding member agency and capabilities

• Further empirical studies to learn more about agency and well-being dimensions affected by co-operative membership and relevant conversion factors

• Insights for policymakers to foster the “conducive environment”