The Co‐operative as Institution for Human Development: The Case Study of Coppalj, a Primary Co‐operative in Brazil

Abstract

What is the added value of co‐operatives in a people‐centred development setting? Applying the human development and capability approach to co‐operatives in a case study in Brazil, this article investigates the impact of co‐operative membership on member agency and well‐being as well as on community development. It uses both participatory and econometric methods to understand the real contribution that co‐operatives, as people‐centred participatory enterprises, can bring to human development and poverty reduction. The article aims to contribute evidence on how co‐operatives work for the poor and identifies the crucial role of policy‐makers in creating the appropriate environment for co‐operative development. Copyright © 2014 John Wiley & Sons, Ltd.

Rethinking Rural Co‐operatives in Development: Introduction to the Policy Arena

“…In particular, co‐operatives have shown greater resilience, particularly when they have more control over the value chain. Vicari (, this Policy Arena) shows, by contrast to Murekezi et al ., how co‐operative organisation in Brazil has benefited babaçu producers financially compared with those who are not in co‐operatives, enhancing incomes and promoting well‐being of members. The Fairtrade link also enabled co‐operative members to add value to their products through changes in technology and packaging.…”

“…However, as indicated by Hannan (, this Policy Arena), whether and how co‐operatives access wider networks and how they use them are important dimensions of leadership and governance. By contrast, Vicari (, this Policy Arena) shows that, in the case of the co‐operative she studied in Brazil, members were able to challenge the grip of landowners and traders over the production and processing of farm products and to generate multiple benefits. Equally, Hartley (, this Policy Arena) has also shown that enhancement of capabilities and agency in youth co‐operatives has influenced the livelihood prospects of members.…”

“…These articles underline that challenges for policy remain, particularly as follows: How to create a better understanding of the co‐operative model and the importance of co‐operative governance (Hannan, ) and to avoid co‐option by donors and governments (Develtere et al ., ; Münkner, ). How to address gender and youth inequalities in the co‐operative movement, which inevitably reflect inequalities in wider society (Majurin, ; Shaw & Rawlings, ; Hartley, ; Vicari, ; Hannan, ). How to secure and enable access to more and better finance and investment in co‐operatives and in member production and marketing (DFID, ) and support co‐operatives in accessing wider networks that can support and promote their development (all three contributors to this Policy Arena).…”

What Makes Rural Co‐operatives Resilient in Developing Countries?

“…We are not the first to suggest this aspect. However, co‐operatives do not only depend on, and help build, individual capabilities in the Senian sense (Sen, , ; Hartley & Johnson, ; Vicari, ). As membership organisations with a stated democratic mode of governance (Hannan, ), co‐operatives can both possess and require collective capability if they are to be resilient organisations.…”

The long march of Chinese co-operatives: towards market economy, participation and sustainable development

“…As far as growth and human development are concerned, the co-operative sector has longstanding worldwide experience of providing solutions (Vicari 2014). Farmers' cooperatives and consumers' co-operatives have served the cause of food security and Asia Pacific Business Review 347 responsible supplies (Münkner 2012).…”