A new study has found that co-operative members in Central America are better off economically, have more social capital and are less likely to migrate from their communities than their non-co-op member counterparts.
The research was commissioned by the International Cooperative Research Group (ICRG), the learning arm of the United States Overseas Cooperative Development Council. The study, What Difference Do Cooperatives Make in Central America? examined the impact of co-operative membership on the lives of members in Honduras, El Salvador, and Guatemala.
Co-op members were found to have significantly higher incomes than non-co-op members in all three countries. Honduran members’ income was found to be, on average, 63% higher, El Salvadorians’ 47% higher, and Guatemalans’ 37% higher.
For women in Honduras and El Salvador, this difference is even more pronounced, with female co-op members in these countries earning on average 72% and 58% more, respectively.
Young co-op members also have higher incomes than their counterparts. Those aged 18-34 in El Salvador made 74% more than comparable non-members, while those in Honduras made 58% more.
The study also looked at the social benefits of being in a co-op, finding that members across all three countries reported a greater sense of well-being and optimism for the future than non-members. Guatemala reported the highest percentage of members with a “very good” sense of well-being 54%, compared with 44% of non-members, followed by Honduras with 53% compared with 34%, and El Salvador with 44% compared with 38%
Co-op members were also more than 10% more likely to want to stay in their communities than the comparison group of non-members.
The report includes testimonials from co-op members living in Central America, including Ada Lilian Pérez, president of the Kakawira Beekeepers Co-operative Association in El Salvador.
“Being a co-operative member has been incredibly beneficial for me,” said Pérez.
“I was able to build a small house, and through my work, I’ve provided my daughter with an education. I’ve also inspired other women to join the co-operative and improve their economic standing.”
The report’s authors state that the study’s findings show that “investing in co-operatives is an investment in people”, as well as in “in building a more hopeful and prosperous future for all”, and suggest that the co-op movement offers solutions to the root causes of migration.
