The Framework Law for the Cooperatives in Latin America

Topic 18 Stage 3 Macro This presentation deals about the case of the Framework Law for the Cooperatives in Latin America, an experience in harmonization of cooperative law which, even not new, is not sufficiently known. ... [ view full abstract ]

Topic 18 Stage 3 Macro

This presentation deals about the case of the Framework Law for the Cooperatives in Latin America, an experience in harmonization of cooperative law which, even not new, is not sufficiently known.

The presentation recalls the process of elaboration of the Framework Law taking into account, two circumstances peculiar to the region. On one side, most countries have common basis of private law institutions. On the other hand, there is a background of academic work in the field of cooperative law developed through several continental congresses held about the matter. Both aspects contribute to explain the coming out of the Framework Law.

In spite of its name, the Framework Law is not a law (an act) in the proper sense of the word but a private document with the form of a law designed in order to provide orientation for the harmonization of cooperative legislation in the Continent. Thus is not a product of the parliamentarian labor; instead is a technical work done by experts and approved by the continental cooperative organizations to promote the progress of cooperative legislation; it is not a model law to be reproduced. It aims at embedding the cooperative principles in the law and to clearly differentiate cooperatives from capital based societies.

The initiative to elaborate the Framework Law was adopted by the former Organization of the Cooperatives of America (OCA) and after some years the ICA Americas updated the original version. In both cases the pattern was the same: a group of experts from different countries was formed to prepare a draft taking into consideration the best experiences of the region, the comparative law and the documents produced by the ICA and the international organizations. Once the draft was finished a broad consultation with cooperatives and governmental agencies was undertaken. Finally, the text was revised and submitted to the aforementioned organizations for approval.

Dissemination of the Framework Law to make it known with the view that its institutions might be adopted by the national legislators was the final step that gives sense to the whole process.

The analysis of the cooperative legislation passed after the Framework Law was approved shows that it reached an interesting degree of influence in numerous cases. It was even adopted by the Latin American Parliament as a recommendation to the national parliaments.