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Enabling Policy Environments for Co-Operative Development: a Comparative Experience

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Enabling Policy Environments for Co-Operative Development: a Comparative Experience ENABLING POLICY ENVIRONMENTS FOR CO-OPERATIVE DEVELOPMENT: A COMPARATIVE EXPERIENCE A Thesis Submitted to the College of Graduate Studies and Research in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy in Interdisciplinary Studies (Co-operative Studies Concentration) University of Saskatchewan Saskatoon By Monica Juarez Adeler © Copyright Monica Juarez Adeler, 2013. All rights reserved. PERMISSION TO USE In presenting this thesis/dissertation in partial fulfillment of the requirements for a Postgraduate degree from the University of Saskatchewan, I agree that the Libraries of this University may make it freely available for inspection. I further agree that permission for copying of this thesis/dissertation in any manner, in whole or in part, for scholarly purposes may be granted by the professor or professors who supervised my thesis/dissertation work or, in their absence, by the Head of the Department or the Dean of the College in which my thesis work was done. It is understood that any copying or publication or use of this thesis/dissertation or parts thereof for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the University of Saskatchewan in any scholarly use which may be made of any material in my thesis/dissertation. DISCLAIMER The views and opinions of the author expressed herein do not state or reflect those of the University of Saskatchewan, and shall not be used for advertising or product endorsement purposes. Requests for permission to copy or to make other uses of materials in this thesis/dissertation in whole or part should be addressed to: Head of the Department of Interdisciplinary Studies University of Saskatchewan Saskatoon, Saskatchewan S7N 5A2 Canada OR Dean College of Graduate Studies and Research University of Saskatchewan 107 Administration Place Saskatoon, Saskatchewan S7N 5A2 Canada i ABSTRACT This dissertation explores the particular evolution of an organization, the Mondragon Co- operative Corporation, to shed light on the co-operative development process, and compares some of its complexities to the Manitoba co-operative sector. This study uses historical, political, and socio-economic research, institutional analysis, policy and legal analysis, and semi- structured interviews to better understand the co-operative development process from a critical and interdisciplinary perspective. This study uncovers the importance of institutional frameworks in understanding the development of the Mondragon group. By analyzing its well-known development story through this critical and interdisciplinary lens, this dissertation helps rethink the assumptions of much of the literature on co-operative and policy development that often overlooks the study of this phenomenon. Co-operative development factors and strategies widely discussed in the literature often fail to analyze the invisible cultural assumptions that underpin and help determine the development process. By studying the extent to which Mondragon's development is deeply embedded in and shaped by its cultural, legal, and institutional contradictions, this dissertation aims to rethink the co-operative development phenomenon. This study finds that institutional frameworks are crucial to understand co-operative development choices and strategies. The contradictions and complexities of institutional frameworks create room to counter the status quo. The study of the Mondragon group tells us that co-operatives can unknowingly reproduce contradictions while challenging the dominant logic to seek change. The influence of institutional contradictions and complexities is highly important to make sense of co-operative development behaviours as well as to understand how institutions change in society. This study concludes with a comparison of the Manitoba co-operative experience in the light of the Mondragon case, and offers concluding thoughts and recommendations for the Manitoba co- operative sector. ii ACKNOWLEDGEMENTS I would like to thank my supervisor, Dr. Isobel Findlay, for her unwavering support, guidance, and mentoring throughout this life-changing experience. I am also very grateful to my committee members, Dr. Louise Clarke, Dr. Murray Fulton, Dr. Lou Hammond Ketilson, Dr. Norman Sheehan, and Dr. Martin Phillipson, who provided thorough and helpful advice for many years. Undoubtedly, my supervisor and committee were the cornerstone of the success of this dissertation. I also want to thank too the study interviewees for their open, honest, and frank answers, and for the considerable time and insight they dedicated despite their already full schedules. I am deeply indebted to the Centre for the Study of Co-operatives, University of Saskatchewan, who provided generous scholarship funding from the Social Sciences and Humanities Research Council of Canada (SSHRC) for many years. I also need to acknowledge the F.J.H. Fredeen Memorial Scholarship and the Norm Bromberger Research Bursary for the financial support received. The Winnipeg Inner City Research Alliance, University of Winnipeg provided me with the opportunity to do a meaningful research internship on the social economy funded by SSHRC. I also need to acknowledge my parents for their relentless teachings on the value of scientific achievement, hard work, and discipline. My father, who passed away in the course of this study, and my mother raised me with the clear conviction that education is the best vehicle for human development. This dissertation is a testament to their lifelong efforts. Lastly, my greatest debt is to my partner, Brendan Reimer, and our son, Adrian Soren, for their unyielding patience, support, and understanding throughout days, evenings, weekends, and vacations for many years. Brendan, a leader in the community economic development field, committed long hours of discussions, and helped me with translation and editing along the way. This dissertation is dedicated to both of them. iii TABLE OF CONTENTS PERMISSION TO USE…………………………………………………………..........i ABSTRACT………………………………………………………………………........ii ACKNOWLEDGEMENTS ……………………………………………………………..iii TABLE OF CONTENTS………………………………………………………………...............iv LIST OF TABLES ............................................................................................ vi LIST OF FIGURES .......................................................................................vii LIST OF APPENDICES ............................................................................................................viii LIST OF ABBREVIATIONS ................................................................................................... ix 1. CHAPTER ONE: BUILDING AN INSTITUTIONAL AND PUBLIC POLICY APPROACH TO CO-OPERATIVE DEVELOPMENT ...................................................................................... 1 1.1 Introduction: Why study co-operative development?........................................................... 1 1.1.1 Global context for co-operative development studies................................................... 2 1.1.2 Why study policy and institutional frameworks in Spain? .......................................... 8 1.2 Redefining co-operative identity for the 21st century ...................……………..................12 1.2.1 Social cohesion and social capital in co-operatives ....................................................17 1.2.2 Co-operatives' dilemmas: principal-agent problem, member conflicts and isomorphism............................................................................................................................... 18 1.2.3 Co-operatives and investor-owned firms ……………………………………......... 20 1.3 Co-operatives, collective action and responses to globalization………………….......... 22 1.4 Co-operative development……………………………………………………................ 26 1.4.1 Public policy and legislation ……………………................................................... 35 1.5 Research relevance............................................................................................................. 38 2. CHAPTER TWO: THEORETICAL FRAMEWORK & METHODOLOGY…………........ 41 2.1 Research Questions……………………………………………………............................. 41 2.2 Epistemology…………………………………………………………….......................... 44 2.3 Theoretical Perspective…………………………………………………...........................49 2.4 Methods ……………………………………………………………................................. 55 2.4.1 A personal reflection note on methodology ............................................................... 57 2.5 Conclusion………………………………………………………………........................ 58 3. CHAPTER THREE: CO-OPERATIVE DEVELOPMENT OF MONDRAGON IN THE BASQUE REGION (SPAIN)...........................................................………………........ 60 3.1 Historical context: role of the Spanish dictatorship and socio-economic depression ... 61 3.1.1 Manufacturing consent to domination during the dictatorship years..................... 67 3.2 The Basque uniqueness and a culture of resistance........................................................ 69 3.3 Father Jose Maria Arizmendiarrieta and Catholic Social Doctrine ............................... 72 3.4 Mondragon Co-operative development, 1956-1959...................................................... 81 3.4.1 Legal origins of the co-operative figure in Spanish legislation, 1906-1942.......... 83 3.5 Conclusion ...................................................................................................................
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