TOPIC 19 – STAGE 2 – MACRO At first glance, the rarity of co-operatives in the Portuguese industrial sector may appear as a puzzle. By international standards, Portugal has a relatively egalitarian wealth and income... [ view full abstract ]
TOPIC 19 – STAGE 2 – MACRO
At first glance, the rarity of co-operatives in the Portuguese industrial sector may appear as a puzzle. By international standards, Portugal has a relatively egalitarian wealth and income distribution and a moderately high level of social capital (Ferragina, 2012; UNU-WIDER, 2008); a substantial part of its industrial sector has been traditionally reliant on labor-intensive activities, and its economy has experienced extended periods of high and persistent unemployment (OECD 2014, Villaverde Cabral, 1997).
In the political realm, the demise of the authoritarian corporatist regime, in 1974, paved the way for fundamental legislative and regulatory changes. The new Constitution, enacted in 1976, recognized the pivotal role of co-operatives in society, and stressed the need to support their development through active policy intervention. Soon afterwards, the government established National Institute for Co-operatives (INSCOOP), and the number of industrial worker co-operatives reached an all-time record of 674 -an impressive figure, considering that two years before there had been only 10 of such enterprises operating in the country (Ferreira Da Costa, 1979).
In spite of the seemingly favorable environment, however, the movement rapidly lost momentum. Most co-operatives began to close their operations in the 1980s and by the early 2010s their number had declined to just 71.
In my presentation, I will examine the factors that have led to this disappointing outcome. The discussion will be based on the preliminary findings of an ongoing postdoctoral research project, funded by the Portuguese Foundation for Science and Technology (FCT). Relying on the process-tracing approach, the analysis will conceptualize co-operative failures as a path-dependent phenomenon, helping to identify some critical, yet often overlooked, areas for policy intervention. Special attention will be given to the role of supportive institutional structures (government and sectoral apex bodies), as well as to the conditions (social, economic and political) that affected their capacities and performance.
References
Ferragina, E. (2012). Social Capital in Europe. A Comparative Regional Analysis. Cheltenham: Edward Elgar.
Ferreira Da Costa, F. (1978). Le coopératisme au Portugal. Revue des Études Coopératives, 194(4), 41-52.
OECD (2014). OECD Economic Surveys: Portugal 2014. Paris: OECD Publishing.
UNU-WIDER (2008). World Income Inequality Database, Version 2.0c, May 2008. Available at http://www.wider.unu.edu
Villaverde Cabral, M. (1997) Unemployment and the Political Economy of the Portuguese Labour Market. South European Society and Politics, 4(3), 222-239.
