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New opportunities for Cuban and USA co-operatives as governments re-establish diplomatic relations

18 Feb 2015

With the United States (USA) and Cuba announcing plans to normalise diplomatic relationships, co-operatives in the two countries could also develop new ties.

Historic talks are taking place in Havana, where representatives from both the USA and Cuba are exploring plans to restore relations. In light of the new developments, the National Business Cooperative Association (NCBA CLUSA), which represents co-operatives businesses from across the USA, has already expressed interest in engaging with Cuban co-operatives.

These are playing a crucial role in decentralising the Cuban economy from state-controlled enterprises to citizen-controlled co-operatives. The first reforms started taking place in 2011, when the Cuban Sixth Communist Party Congress approved a set of reforms as part of the Guidelines on Economic and Social Policy for the Party and the Revolution. As a result, the Cuban government has begun transitioning state-owned farms and enterprises into co-operatives.

Michael Beall, president and chief executive of NCBA CLUSA, said: “NCBA CLUSA has already started working to develop relationships with co-operative businesses in Cuba. The co-operative model is internationally recognised as a centre for democratic participation, member-owned business promotion and economic development”. 

“We look forward to continuing our support of the Cuban co-operative sector as it grows and evolves,” added Mr Beall. 

Last year NCBA CLUSA led a US State Department approved research and education trip to Cuba for a better understanding of the co-operative movement there. The Cuba Cooperative Working Group included more than a dozen representatives from agriculture, finance, housing, energy, worker and consumer sectors. Following the visit, the working group wrote a report containing recommendations on how to support Cuba’s co-operative sector.

The report suggests engaging in technical exchanges from the USA and international co-operative businesses to strengthen Cuban co-operatives. Another recommendation is to share international best practices in strong legislative-enabling environments, governance and principles for co-operative enterprises to grow.

Amy Coughenour, chief operating officer for International Development, who also represented NCBA CLUSA on the trip, said: “Co-operatives create jobs, stimulate the economy and address both economic and social needs across economic sectors, such as agriculture, housing, finance and productive sectors. NCBA CLUSA is ready to leverage its 60 years of experience and that of its co-operative members and partners to create and strengthen co-operative business in Cuba”.

Picture: Havana, Cuba.

 

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