GEO has just posted The Silent Success Of Cooperatives In The Bolivarian Revolution, an article reviewing government support of co-operatives in Venezuela. It’s crossposted from venezuelanalysis.com. Our content editor, Josh Davis posted a blog summarizing it. Here’s a snippet of his summary:
The gist of the article is that the Chavez government threw a bunch of money at co-op development and it backfired on them--leading the administration, in 2008, to shift resources into worker take-overs coupled with state-ownership and away from supporting cooperative ownership structures. This unfortunate result occurred because of problems on two fronts, according to the article.
First, there was the PR front. While government money led to the creation of a lot of successful co-ops, it also led to the creation of many failed co-ops…
Secondly, the receipt of government funds has had the perverse effect of weakening resolve among co-op owners.