Cooperatives in Costa Rica: NO to More Bureaucracy

In the view of the union of cooperatives the Law on Social Solidarity Economy being discussed in Congress is unnecessary and will only create more bureaucracy and duplicity of functions.

Monday, September 14, 2015

More bureaucracy, confusion in the application of the laws governing cooperatives and duplication of functions is what will come from, if approved, the Social Economy Act, which is being promoted by the Solis administration. This is the approach of the National Council of Cooperatives (Conacoop), an entity created by law and who has the power to make rules for the sector.

Nacion.com reports that "...The cooperative claims that the law will generate more "red tape", as it aims to assign to the government functions to boost the social economy which are currently being performed by cooperative organizations in the private sector. "

According to the explanation given by Conacoop's Secretary General, Freddy Gonzalez, "... In particular, they criticize the creation of the National Council of Social Solidarity Economy (Conaess) under the Ministry of Labour, which would address the formulation of policies and strategies for the promotion of a social solidarity economy. 'We came to the overwhelming conclusion that it is a rehash of the laws that already exist, it could even generate friction with other laws. It does not strengthen social institutions'. "



More on this topic

"Social Solidarity Economy" by Decree

August 2016

President Solis has signed a decree declaring of public interest the "promotion, development and formalization of businesses in the social solidarity economy", at the same time as a bill with the same concept is not advancing in the legislature.

When the bill on the Social Solidarity Economy was presented in July 2015, the private sector expressed doubts about a concept that "... represents unfair competition against formal private companies and contributes nothing to the serious fiscal problems of the country, because it reduces the question of tax collections."

Economía Social Solidaria = Sharing Economy

July 2015

The twin sister of an old concept of cooperatives which today enemies of capital want to reinvigorate, the ultramodern collaboratively economy creates value by using the internet through more efficient use of available resources.

EDITORIAL

"Sharing Economy", collaborative markets.

"Social Solidarity Economy" in Costa Rica

July 2015

A bill creates the regime of "Social Solidarity Economy", which creates exemptions from virtually all taxes for companies registered in the scheme.

The vice president of the Chamber of Commerce of Costa Rica, Victor Ruiz, said that "... the model of the ESS (Social Solidarity Economy) represents unfair competition against formal private companies and contributes nothing to the serious fiscal problems of the country because it reduces the question of tax collection. "

New Law on Cooperatives in Honduras

August 2013

The reform of 47 articles of the old Law on Cooperatives and the addition of another 14 has been agreed to by the Honduran cooperative movement.

An article in Proceso.hn reports that the nationalist deputy Rolando Dubón Bueso noted that "cooperatives favor the development of a democratic economy which is people-centered, and which cares for the environment while promoting economic growth, social justice and a fair form of globalization. "

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