Colombian co-operatives ask government to recognise their enterprise model

20 Apr 2015

Colombian co-operatives have called on the national government to recognise the co-operative enterprise model as an important tool for the growth of the country’s economy. Earlier this year President Santos presented the national Plan for Development for 2014-2018. The plan, themed “All for a new country” has already been approved by the Congress and will be debated in plenary sessions.

The document included a provision to enable the National Health Superintendence to issue decrees to convert co-operative enterprises in corporations. This measure, included in Article 64 of the Plan has now been removed. The co-operative sector welcomed the decision.

Darío Castillo, President of Confecoop, the Colombian Co-operative Confederation, said that co-operative enterprises, as part of the social economy, were crucial to building a new country and promoting peace, particularly at rural level. He added that the co-operative model was the engine for development and employment.

“We celebrate that article 64 has not been included in the plan because it did not recognise the co-operative law that forbids their conversion in stock companies,” he said. Mr Castillo explained how unlike stock companies, co-operatives did not favour the few with more shares, but acted in the interest of all member owners, based on the “one member, one vote” principle.

The president of Confecoop has also called for a national fund for the solidarity economy to help promote rural co-operation. Recognising the important role played by co-operatives and their contribution to the human and social development of the country would also be key to growing the sector, he said.

“Fake co-operatives have damaged our image, there has to be more control and supervision”, added Mr Castillo.

Carlos Acero, executive director of Ascoop, the Association of Colombian Co-operatives, also said: “The existing rules and legislation have to be extended to small and medium enterprises and undertakings, to promote other economic models and means of generating business. Co-operatives have power in the world”.

“The government must understand that it has in its hands a mature co-operative sector to support the country. It is important that the enterprise model of the solidarity economy is clear”, added Darío Castillo.

Photo: President of Colombia, Juan Manuel Santos.

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