Cooperativas No Agropecuarias: The Emergence of a New Form of Social Property in Cuba

• DOI: https://doi.org/10.13169/intejcubastud.6.2.0137
• Pages: 137-156
• Published date: 01 December 2014
• Date: 01 December 2014
• Author: Steve Ludlam
• Subject Matter: economic reform,non-agricultural cooperatives,social property,alienation,non-state sector,workers rights,hired labour

IJCS Produced and distributed by Pluto Journals www.plutojournals.com/ijcs/

ACADEMIC ARTICLES

COOPERATIVAS NO AGROPECUARIAS:

THE EMERGENCE OF A NEW FORM OF

SOCIAL PROPERTY IN CUBA

Steve Ludlam

University of Sheff‌ield, UK

Abstract

Cuba’s ongoing economic reform programme includes a signif‌icant development of non-

agricultural cooperatives that has received little comment in spite of the priority accorded

to this off‌icially preferred form of non-state activity. The article notes the ambiguous

treatment of cooperatives in historical socialist debates in general and Cuban debates in

particular. Non-agricultural cooperativism, although seen as bringing eff‌iciency and income

gains, is now being theorised with a greater emphasis than in the past on self-management

and non-alienated forms of labour. Since the enabling legislation in 2012, the creation

of such cooperatives has been rapid, mainly due to the conversion of small-scale state

workplaces in the service sector, but such cooperatives, so far, remain a small component

of the wider shift of workers into non-state employment. Nevertheless, economic, social,

educational and media institutions are adapting to the economic, cultural and represen-

tational needs and challenges of the new cooperativism. The legislation addresses lessons

from experience elsewhere by limiting the exploitation of hired labour by prof‌it-sharing

cooperative members. The article concludes by considering factors inf‌luencing the rise of

the new cooperativism and its potential for rekindling a socialist consciousness of work.

Keywords: economic reform, non-agricultural cooperatives, social property, alienation,

non-state sector, workers rights, hired labour

Introduction

This journal has recently published a series of important articles on the

process of economic reform in Cuba, especially since the public consultation

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138 ACADEMIC ARTICLE  STEVE LUDLAM

I J  C S 6.2 W 2014

and Communist Party Congress that resulted in the adoption in 2011 of the

Lineamientos de la Política Económica y Social del Partido y la Revolución

(Guidelines of the Economic and Social Policy of the Party and the Revolution;

Kassman 2012; Lamrani 2012; Ludlam 2012; O’Sullivan 2012; PCC 2011;

Peters 2012; Rodríguez 2013; Triana Cordoví 2013; Wilkinson 2012; Wylie and

Glidden 2013). Very little of that analysis, though, made much comment on the

announcement of a new form of social property in the proposals to form non-agri-

cultural cooperatives of manual and professional workers in both the service and

the production sectors. In his article, nevertheless, one leading Cuban economist

at the heart of the change process identif‌ied the operation of non-agricultural

cooperatives as one of the four policies ‘decisive for the transformation process’

during 2013/14 (Triana Cordoví 2013: 126). And in the major new academic

collection on cooperativism and socialism in Cuba, the claim is made that the

island’s changed socio-economic reality has opened a new era of cooperativism

in the history of the Revolution (Fernández Peiso 2012b: 392–3).

The Cuban Constitution refers only, in article 20, to agricultural cooperatives

of small producers and makes no reference to them constituting a socialist form of

property (República de Cuba 1992: 13). The Lineamientos, though, opened this

new departure in the following sections (PCC 2011, off‌icial English translation):

COOPERATIVES

25. Grade 1 cooperatives shall be established as a socialist form of joint ownership

in various sectors. A cooperative is a business organization that owns its estate and

represents a distinct legal person. Its members are individuals who contribute assets or

labor and its purpose is to supply useful goods and services to society and its costs are

covered with its own income.

26. The legal instrument that regulates the cooperatives must make sure that this

organization, as form of social property, is not sold or otherwise assigned in ownership

to any other cooperative or any non-State organization or any natural person.

27. A cooperative maintains contractual relations with other cooperatives, companies,

State-funded entities and other non-State organizations. After satisfying its

commitment with the State, the cooperative may pursue sales operations free from

intermediaries and in accordance with the business activity it is authorized to perform.

28. Subject to compliance with the appropriate laws and after observance of its tax

and contribution obligations, each cooperative determines the income payable to its

employees and the distribution of its prof‌its.

29. Grade 2 cooperatives shall be formed and the partners of which shall be Grade 1

cooperatives. A Grade 2 Cooperative shall represent a separate legal person that owns

assets. The purpose of this cooperative is to pursue supplementary related activities

or conduct operations that add value to the goods and services of its partners (such as

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