DEFINITION OF COOPERATIVE
A cooperative is an autonomous association of people who come together on a voluntary basis to meet their economic, social and cultural needs and aspirations, through a jointly owned and democratically managed non-profit company.
FEATURES:
In order to establish a characterization of cooperatives, we must establish the differences that exist in comparison with capital companies and state companies. The following table tries to show these differences.
| Elements | Capitalists | Public | Cooperative | |
| Headlines | Shareholders - partners | Public | Associates | |
| objective | Maximize the benefits in relation to the capital contributed | Increase the well-being of society | Provide services and / or products to its associates without discrimination | |
| Control and direction | Depending on the capital invested | The state | Depending on the Associates (one man one vote) | |
| Decision power | In charge of the owners and in relation to the integrated capital. | By state-appointed officials | It is based on the principle of equality, All associates have the same rights to comment and vote. | |
| Capital | Fixed, therefore generally cannot decrease from the amount constituted | Mixed, in accordance with public policies | Variable, according to the income and expenses of the associates, if an associate withdraws, the value of the integrated social contributions will be reimbursed | |
| Entry conditions | Restricted to capital | State restricted | Free subject to approval of the rest of the associates | |
| Profit or surplus | It is invested and distributed among its shareholders in proportion to the capital invested | If there are profits, they are capitalized | It is capitalized or distributed among the associates in proportion to the operations performed or services provided by the associates. Equity principle | |
| Business balance | Marginal revenue equals marginal cost | Average cost equals average cost | Marginal revenue equals marginal cost |
SYMBOLS OF COOPERATIVISM
The Two Pines of Cooperativism.- This symbol was born in the United States in 1920, and was later accepted in the rest of the world. Today it is the best known of all the symbols of cooperativism.
MEANING OF THE ELEMENTS
Each of the elements of the emblem has its meaning, by way of synthesis we explain the following:
THE PINE: The pine tree, considered in antiquity as a symbol of immortality and fertility, was respected for its ability to survive in less fertile lands and its surprising capacity for multiplication.
THE CIRCLE: HE represents eternal life, because a final horizon also represents the idea of the world, which contains everything and encompasses everything.
THE GREEN: The dark green of the trees represents the vital principle of nature.
YELLOW: The yellow-gold represents the sun, a permanent source of energy and heat.
THE EMBLEM: A circle that embraces two pine trees, indicating the union of the movement, the immortality of its principles, is the fertility of its followers. All this marked the upward trajectory of pine trees for those who project themselves high, trying to grow more and more.
HISTORICAL BACKGROUND OF COOPERATIVISM
OF THE COOPERATIVE SYSTEM IN GENERAL
The history of the cooperative system goes back to the practice of different modalities of traditional association, especially in rural areas and in activities of an agricultural nature, such was the case, for example in Latin America, the ayllus of the Inca culture that understood what is now It is Peru, Bolivia, Ecuador, part of Chile and northern Argentina. Similarly, in cultures of North America as the Azteca in Mexico and boardsin Costa Rica. These traditional expressions of cooperation are still in force in many Latin American countries and in the world, this system of cooperativism in past times, which was identified by self-help, solidarity and cooperation among its members in the different activities, were decisive in initiating what which today is known as the principles of the cooperative system.
Cooperativism, throughout its history has been considered and defined in multiple ways: as a political doctrine, mode of production, however, currently it can be said that cooperativism is an economic plan that is an important part of life in many countries., and its development and dissemination indicates that it could even modify the political structure of the societies that have implemented them.
One of the important characteristics of cooperative theory is its simplicity, since it does not arise as a product of brainy reflections of philosophers or theorists, but of common sense.
Within the global modern cooperative movement it takes hold in the town of Rochdale, county of Lancashire, England, near Manchester. It was in 1844 that a group of 28 textile industry workers, who lived in this town, tried to control their economic destiny by forming a cooperative called the Rochdale Equitable Pioneers Society (the Rochdale Equitable Pioneers Society).
The idea had its origin at the end of the year 1843, at that time the textile industry was at its peak and was providing great activity in the most important manufactures in Rochdale. Faced with the helplessness of the working class, some weavers recalled the ideas of Robert Owen, considered the father of cooperativism.
Far from trying to shirk responsibilities, on October 24, 1844 they gave their company a legal constitution. The entity was registered under the title: "Rochdale Society of Equitables Pioneers". Due to its simplicity and as an alternative solution for the establishment of a new way of life, it quickly gained adherents, in addition to the fact that the conclusions formulated by them, revised and expanded, constitute the foundations of cooperativism.
One of the conclusions reached by the textile workers of Rochdale, when integrating the first consumer cooperative is: «The profit incentive is the origin and the raison d'être of the intermediaries, and must be replaced by a notion of mutual service or cooperation among consumers ». The essence of this conclusion is that the consumer class, permanent and universal, is always at the mercy of the action of intermediaries, whose main motive is profit; therefore, the working class has the right and the duty to defend, and the best way to do it is with solidarity.
These values are put into practice through the Seven Rochdale Principles, the principles that Rochdale pioneers originally established for cooperative societies were as follows:
- Free entry and free withdrawal Democratic control Political, racial and religious neutrality Cash sales Return of surpluses Limited interest on capital Continuing education.
Thus, the oldest cooperatives are consumer cooperatives, and their main objective is to supply their members, at reasonable prices, with the items they require to satisfy their needs. But it is necessary to indicate that the cooperative movement is not limited to this area, since different classes of cooperatives have also been developed according to the needs of man.
Later the social current of thinkers, politicians and religious, promoted cooperative organizations to establish conditions of social justice, even in several countries the laws preceded the cooperative act.
The religious current of the Catholic Church had its importance in the development of the cooperative system from the encyclicals Rerum Novarum, Quadragesimo Anno and Populorum Progressio, which sought cooperative mechanisms to solve the problems that affected large layers of the population, finding in the cooperativism a possible solution. This action was important in the countries of Central America and those of the Andean Region.
The Latin American state current that began with very significant legislative and initial impact measures, which created a legal framework for the operation of cooperatives. Starting in the 1950s and 1960s, the Alliance for Progress Program provided a strong impulse to cooperativism as an inducer of economic and social progress, also allowing States to establish special offices for the promotion, development and registration of cooperatives., thus channeling many of its resources and benefits towards cooperativism.
Since the 1970s, the cooperative movements in Latin America, with the exception of El Salvador, have had qualified professionals, graduated from European and Central American universities to work within the framework of the integration process in cooperative companies.
Currently, there are organizations worldwide that encourage cooperativism, such is the case of the International Alliance of Cooperatives (ICA).
Today, the Rochdale Society Cooperative continues the legacy of the spirit of cooperation established in 1844, more than 150 years ago.
OF THE COOPERATIVE SAVING AND CREDIT SYSTEM
Friedrich Wilhelm Raiffeeisen, born on March 30, 1818 and died on March 11, 1888, this man left a legacy to humanity with a rich experience in savings and credit cooperativism.
Raiffeeisen promoted the Cooperative Savings and Credit system, based on the principles of self-help, self-responsibility and self-administration, in his time he founded several cooperatives in his native country, and those principles and ideas are still in force in more than 100 countries around the world, with around 300 million members, in more than 700,000 cooperatives.
The beginning of industrialization in the twentieth century, gave rise to a free and independent economy, appearing in the poor sectors, unscrupulous lenders who exacerbated misery, given this situation Raiffeeisen, founded in 1846, the association for obtaining bread and fruit. After considering that only self-help would be the most efficient means, he founded the Heddesdorf Credit Association in 1864.
Subsequently, in 1866 Raiffeisen wrote his experiences in his book: "the associations of credit boxes as a measure to avoid the misery of the rural population, artisan and urban workers", this book had 8 editions and spread throughout the world.
In order to offset liquidity between the small Savings and Credit Cooperatives, the Renano Agricultural Cooperative Bank in Neuwiend was created in 1872 as the first rural central bank. He also tried to create a Cooperative Insurance, which was founded in Berlin in 1922 and today bears his name.
Therefore, the month of March constitutes a month of remembrance for the savings and credit cooperative system, since it was the month of the birth and death of one of the main managers of savings and credit cooperatives.
Currently the Cooperative Savings and Credit system has shown a continuous and sustained evolution, through the organizations: at the national level which is the National Federation of Savings and Credit Cooperatives (FECOAC), at Latin American level, the Latin American Confederation of Cooperatives of Savings and Credit (COLAC), and worldwide, the World Organization of Savings and Credit Cooperatives (WOCCU).
OF THE COOPERATIVE SYSTEM IN ECUADOR
The Cooperative legislation dates from 1937, but it was in the 1950s and 1960s that it gained real presence at the national level when most of the first and second degree Cooperative organizations were created, in which agents directly or indirectly intervened outside the sectors involved, that is, public and private institutions and promoters; Among the latter, religious, foreign volunteers and some professionals can be singled out, in a personal capacity or commissioned by some political or social organization. It is also worth mentioning the action carried out by the unions, workers unions, class organizations and personnel of the cooperative movement, especially the United States.
The action of religious institutions was aimed at creating and promoting the organization of credit unions.
On September 7, 1966, in the interim presidency of Clemente Yerovi Indaburu, the Cooperatives Law was enacted, and on January 17, 1968, the respective regulations were issued.
Cooperative growth in the decade from the sixties to the seventies was vigorous (449% of entities and 402% of associates); however, towards the end of the 1970s, as resources and actions to promote the State and abroad were reduced, this process slowed cooperative growth.
Currently, service and consumer cooperatives predominate, but it is worth noting the organization that they have managed to develop on their own initiative, the Savings and Credit Cooperatives. Cooperative integration is supported by vertical and central federations; In addition, the cooperative penetration index has had slight increases in the eighties, while in recent times, in response to the current crisis in the country, cooperatives, especially savings and credit cooperatives, have been strengthened.
COOPERATIVE EVENTS OF THE MILLENNIUM
The Cooperative Savings and Credit System has its own history, the «Cooperativa No: 23» magazine published by FECOAC highlights the following as main events:
1849.- The idea of cooperative credit arises as a solution to the poverty and hunger suffered by the inhabitants of southern Germany. In this year Federico Wilhelm Rraiffeisen (1818-1883) founded the first Credit Society, for this reason he is considered the father of the cooperative credit movement.
1864.- In Heddesdorf, Raiffeisen establishes the first credit union of the type that now operates in Germany, urges the people to collective savings and loans with minimal surcharge interest, and each member can vote. Only people associated with the credit union can save and apply for loans, and the reputation of the member is the primary guarantee to grant them. Raiffeisen founded 423 credit unions. The idea extends to other countries.
1900.- The first American credit union was born in Levis, Québec; It is the work of journalist Alfonso Desjardins (1854 - 1920) who, after studying cooperative credit in Europe, decides that credit cooperatives act as a replica of the usury that prevails in America
1906.- Québec legislation promulgates the first law concerning North American credit unions.
1909.- Alfonso Desjardins, establishes the first Credit Union in the United States and the first Law of Credit Cooperatives is enacted in the USA, in Massachusetts.
1934.- The Credit Union National Association (CUNA) is created, in Estes Park Colorado, a non-profit self-help organization formed by credit cooperatives
1935.- In order to protect the members of credit unions and these, CUNA MUTUAL INSURANCE SOCIETY are founded.
1937.- On November 30, with General Alberto Enriquez Gallo as Supreme Chief, the first Cooperative Law in Ecuador is issued.
1948.- The National Association of Savings and Credit Cooperatives (CUNA) of the USA, and the Mutual Insurance Society, chose the third Thursday in October as the day of celebration of the savings and credit cooperatives
1958.- CUNA becomes a worldwide association, accessible to credit union leagues around the world.
1961.- In Ecuador, under the government of Dr. José Maria Velasco Ibarra, the National Directorate of Cooperatives is created, begins its activities of dissemination, education, Legalization, supervision and statistics of the cooperative movement.
1963.- On June 30, the Federation of Savings and Credit Cooperatives of Ecuador is constituted. On September 23 of the same year, the Statutes of this governing body of the cooperative savings and credit movement were approved, initially made up of 34 COACs that brought together 3,000 members.
1964.- The Bank of Cooperatives of Ecuador is formed, as a credit entity and liaison of the different lines of Cooperatives; It begins with a considerable loan granted by AID with the fundamental objective that the COACs be the ones to capitalize on this entity. On December 12, 1964, he received legal authorization to operate, and on May 13, 1965, he granted the first loans. At present it no longer exists, as it was forced to close its doors due to managerial administrative malpractice.
1966.- The second Law and General Regulation of Cooperatives is promulgated, in the Presidency of Clemente Yevori Indaburu.
1969.- COOPSEGUROS del ECUADOR was born, under the auspices of the National Federation of Savings and Credit Cooperatives of Ecuador, according to the Ministerial Agreement of February 20, 1970
1971.- A data of great historical importance was the Resolution of the Ministry of Education No. 622 of March 5, which declared the teaching of cooperativism compulsory at the primary and secondary levels.
1971.- On May 18, 1971, with the purpose of promoting the cooperative spirit in Ecuadorian society, through the Ecuadorian Cooperative Institute, which is made up of various integration organizations and cooperative services, public and private institutions that promote the cooperative development.
1976.- The Ecuadorian government's support for cooperativism declines substantially. The budget allocation to the National Directorate of Cooperatives is significantly reduced.
1988.- FECOAC begins working on loans with two sources of financing: one from BIDCOLAC funds and that constitute the most important base of the portfolio; and the other source based on own resources, but it is a small percentage of the total portfolio (4%). One of the most controversial and questioned interventions by the Superintendency of Banks, the Savings and Credit Cooperative «San Fracisco de Asís »Ltda., The most renowned continental entity in its field. After this intervention, the state of liquidation was declared on November 15 of the same year.
1991.- The Corporation for Cooperative Studies and Development, CEDECOOP, is born on December 13, as part of the Curricular project promoted by the DGRV-CONCAF.
1992.- On August 7, 1992, Dr. Rodrigo Borja Cevallos, Constitutional President of the Republic, totally objected to the bill that created the Superintendence of Cooperatives, cutting serious and valuable projections for the development of national cooperativism.
1995.- On May 15 the specialized service corporations are created: AUDICOOP, SYSTECOOP AND CONSULCOOP, to meet technical assistance requirements of savings and credit cooperatives.
1998.- Dr. Fabián Alarcón, Interim President of the Republic, issues the Regulations for the Constitution, Organization, Operation and Liquidation of savings and credit cooperatives that carry out financial intermediation with the public, subject to the control of the Superintendency of Banks, that among other aspects, it provided that the COACs open to the public and that were under the control of the National Directorate of Cooperatives, should request their entry into the control of the Superintendency of Banks.
1998.- In the city of Santo Domingo de los Colorados, with the participation of 27 cooperative entities, the Consortium of Savings and Credit Cooperatives of the Rural sector of Ecuador was formed.
1999.- Arch. Guillermo Celi, Minister of Social Welfare, through Ministerial Agreement No. 02243, granted legal status to the Cooperative Credit Center, FINANCOOP; it started with 21 cooperative savings and credit entities and specialized service corporations. In the same year, he extended his legal status to the National Union of Credit Savings Cooperatives for Financial Security, SOLIDARIA.
1999.- The report of the Secretary General of the United Nations, UN, reaches conclusions and results that support the cooperative movement and for the first time contains draft guidelines aimed at creating a favorable environment for the development of cooperatives and stresses that these entities must be recognized and enjoy true equality with respect to other types of associations and companies.
1999.- APRIL, for the first time in the history of the cooperative movement of savings and credit, an unprecedented peaceful and massive march of leaders, leaders and partners was carried out, to demand from the government in office the money that the cooperatives kept to be thawed. On the bench; The march was a success, because the economic authorities immediately determined the respective thawing.
THEORETICAL AND PHILOSOPHICAL FOUNDATIONS.
To promulgate and understand the philosophical principles of the cooperative system, it is not necessarily a matter of knowing philosophy, but rather of philosophizing or knowing how to question ourselves in this changing world.
The principles of the cooperative system take as their starting point the principles formulated by the late cooperative member, Mauricio Colombain, which were published by the ILO in 1976, and which are currently in force; Today 7 basic principles of cooperativism have been determined. These principles are also known as the Rochdale Principles, in memory of the small town in England, where the Rochdale principles were first collected and put into practice; These ensure that a cooperative maintains its democratic spirit and operates as a solid and strong business, that is, it must be a company of solidarity economy, these principles have been disclosed by different organizations such as the International Alliance of Cooperatives (ACI).
VALUES
Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, cooperative members endorse the ethical values of honesty, transparency, responsibility and social vocation.
BEGINNING
First Principle: Voluntary and Open Adhesion
Cooperatives are voluntary organizations, open to all people able to use their rights and willing to accept the responsibilities of membership, without social, political, religious, racial or gender discrimination.
Principle Two: Democratic Management by Partners
Cooperatives are organizations democratically managed by members, who actively participate in setting their policies and making decisions. The people chosen to represent and manage the cooperatives are responsible to the members. In first-degree cooperatives, members have equal voting rights (one member, one vote), and cooperatives of other degrees are also democratically organized.
Third Principle: Economic Participation of Members
Members contribute equitably to the capital of their cooperatives and manage it democratically. At least part of that capital is normally the common property of the cooperative. Members normally receive limited compensation, if any, on the capital delivered as a condition for Members allocate surplus for all or any of the following purposes: the development of their cooperative possibly through the establishment of reserves, of which a part at least would be irrepartable; benefiting members in proportion to their operations with the cooperative: and the support of other activities approved by the members.
Principle Four: Autonomy and Independence
Cooperatives are autonomous self-help organizations, managed by their members. If they sign agreements with other organizations, including governments, or if they obtain capital from external sources, the terms that ensure democratic control by their members and maintain their cooperative autonomy.
Fifth Principle: Education, Training and Information
Cooperatives provide education and training to members, elected representatives, managers and employees so that they can contribute effectively to the development of their cooperatives. They inform the general public, especially young people and opinion leaders, of the nature and benefits of cooperation.
Principle Six: Cooperation between Cooperatives
Cooperatives serve their members as effectively as possible and strengthen the cooperative movement by working together through local, national, regional and international structures.
Seventh Principle: Interest in the Community
Cooperatives work to achieve the sustainable development of their communities through policies approved by their members.
DEMOCRACY IN COOPERATIVES
A democratic society, according to the studies of J. Rawls, is an equitable system of cooperation, based on consensus, between free and equal people.
Cooperation implies the idea that its terms are fair and equitable, and that each participant can reasonably accept them, provided that all others also accept them. The equitable terms of cooperation imply an idea of reciprocity or mutuality; all those who have engaged in cooperation play their respective role in accordance with the accepted rules and procedures, should take advantage of it appropriately, assessed by a correct criterion of comparison. The idea of social cooperation requires that you have an idea of the rational advantage of each participant.
The notion of cooperative is inseparable from the notion of justice. The sense of justice is the ability to understand, apply and respect others. A democratic society is a society whose members are citizens considered free and equal people; free people, because they are endowed with moral aptitudes, reason and judgment; Equal persons, since having these capacities, they are full members of society.
IMPORTANCE OF THE SYSTEM IN THE ECONOMY OF THE COUNTRIES
Since its creation, the International Labor Organization (ILO) has recognized the important role of cooperatives in achieving the social and economic development of peoples. With this perspective, he has conducted a series of technical meetings and promoted specific initiatives to highlight the vast potential of cooperatives and other solidarity support organizations for the betterment of societies, and thus achieve social justice in various parts of the world.
The cooperative system, of making a series of adjustments and generating certain positive factors, can be a real alternative and capable of integrating a wide range of people and groups, in structures that foster the development and expansion of their potentialities, in socioeconomic settings of a participative and solidary nature, with justice, freedom and transparency that are so necessary for the transformation of today's societies.
Speaking at a seminar held in San Pedro Sula, Arturo Londoño, a Colombian expert in this type of business, stated that the cooperative system, founded by Roberto Owens, "is an effective response against neoliberalism," he also explained to fifty Hondurans. that cooperativism "is not a temporary measure to confront neoliberalism, but the response to reduce the gap between rich and poor" that neoliberalism causes. "You can no longer live as a small farm, or a small association," said the speaker, suggesting the search for "mutual aid" to organize in a cooperative system where everyone contributes. Londoño considered that the cooperative system has matured sufficiently to contribute to the development of peoples both economically and socially.Reason why the cooperative system has to jump from simple and traditional operations to financial and industrial ones, in order to boost production that is on track to face the problems of devaluation and inflation caused by neoliberal measures. In order to compete, cooperatives have to enter into alliances with counterparts in other countries to ensure their financial capacity and explore markets, that is, they must not lag behind the now widespread globalization.Cooperatives have to enter into alliances with counterparts in other countries to ensure their financial capacity and explore markets, that is, they must not lag behind the now widespread globalization.Cooperatives have to enter into alliances with counterparts in other countries to ensure their financial capacity and explore markets, that is, they must not lag behind the now widespread globalization.
Towards the end of the century, cooperativism will have to face the challenge of insertion in the world market. Although some cooperatives in Ecuador currently meet the established levels of quality, as a whole the cooperatives are not yet ready to enter the world market. However, the integration process has been accelerated during the last presidential summits. Despite the existing problems, the president of the Confederation of Cooperatives of Central America and the Caribbean (CCC-CA), Rolando Baquiax, stated that: "the cooperative movement is ready to face the challenges of integration."
The importance of the cooperative sector has also been highlighted in the report of the Secretary-General of the United Nations, in addition, for the first time guidelines are formulated to suggest to all countries to create a favorable environment for the development of cooperatives.
The tendency to profit by mere profit has given rise to an increasingly unequal society, with a situation in which large companies, which are shrinking in number, possess most of the world's resources. While developing countries are perhaps the most seriously affected by many of these issues, developed nations are also not spared due to the global reach of large companies, the labor force in developed countries is now in direct competition with that of developing countries, which inevitably creates unemployment and lowers wages and living standards in many countries around the world.
But globalization has also had many positive effects for cooperatives in many countries, opening markets and allowing the growth of better and more efficient companies. However, this situation differs from country to country depending on the economic and political environment in which cooperatives operate and their ability to quickly adapt to the challenges of the new world order.
In today's environment, however, cooperatives are increasingly the victims of attacks by the private sector, mainly due to the lack of public awareness of the cooperative difference. It is important to develop a solid communication system within the movement, so that the various economic sectors understand and support each other, since this will achieve greater ideological unity. Education is essential at all levels and it is of utmost importance that the movement invests in promoting the image of the system and that it explains to the world the difference of this kind of solidarity economy companies, which are based on cooperative principles and values. Cooperatives perform multiple functions that are not only economic, but also social and environmental,and they are not explained only by trade. A cooperative differs from any other business organization in that its main objective is to serve its members, but at the same time it has a positive impact on the community in which it operates.
Cooperatives cannot survive in the current environment unless countries create a legal and regulatory environment in which independent, democratic cooperatives can grow and become competitive and sustained; Due to the absence of these conditions, some cooperatives have been forced to modify their statutes, to become limited companies or for profit.
To reverse this trend, cooperatives at regional and national level must respect the cooperative principle of Cooperative Inter-Cooperatives and form their own alliances, not only to promote their economic interests, but also to form pressure groups, to ensure the benefit of global opportunities. that they will not only favor their members, but will ultimately benefit local communities as well.
IMPORTANCE OF THE SYSTEM IN THE SOCIAL CONTEXT.
In the recitals for the promulgation of the Cooperatives Law of September 7, 1966, the importance of cooperatives is mentioned, and also that they are a positive instrument for the social economic development of peoples, textually it says:
“That through said system, which involves the joint action of citizens, many of the needs can be solved; that in countries like ours, which is in the process of development, cooperativism is the important factor in the implementation of social improvement programs ”.
"That the current time of the world encourages peoples to obtain a peaceful structural transformation, which is in tune with the human meaning of life, which advocates the human rights of man, set forth in the United Nations charter, and the principles and norms of justice and universal morality ”;
"That cooperativism is also the appropriate system to achieve these structural changes, in an orderly and democratic way, as our country wants";
"That the Ecuadorian cooperative movement is doing hard work today to obtain the solution of the fundamental needs of the great majority";
"That the general development plan of the country, prepared by the National Board of Economic Planning and Coordination establishes the need to enact a new law on cooperatives that is in accordance with the national development process";
"That the 49th General Conference of the International Labor Organization, held in Geneva in 1965, recommends, in a special way, the updating of legislation, cooperatives in developing countries".
In other words, although the cooperative system is constituted as a corporation, it finds its true nature when it bases its activities on the concept of association. An ordinary corporation can exist and act apart from its base power, but a cooperative cannot exist behind the back of the group of people who are its members.
For all these reflections the cooperative system implies a set of values, of principles; it has its own historical analysis and is also based and sustained with the contribution of science and technology, in other words, it has another way of understanding the world, its philosophical assumptions and its doctrinal world that guides it.
In Ecuador there are approximately 3,000,000 members grouped into 6,000 cooperatives that have contributed significantly to production and employment that would otherwise have placed a burden on society.
In other countries, cooperativism constitutes the backbone of their economies and is considered the most suitable mechanism to combat social inequalities.
THE ECONOMIC AND FINANCIAL SAVINGS AND CREDIT COOPERATIVES
Faced with the instability and crisis in the national banking system where the client has shown his distrust, especially in banks, which has led to an increase in the country's economic crisis, for which it has been necessary to look for alternatives to demonstrate to the client that there options that promote savings and provide credit.
Many sectors have raised the need for a change in model, which must rescue the values and principles that our modern society has lost. An alternative that deserves attention from the State is the solidarity economy sector, especially the cooperative Savings and Credit system, where the principles of solidarity, mutual aid, self-management and democratic control are best practiced. Putting as a fundamental objective of its activity, the development of man, which of course must be modernized and managed with technical knowledge, to provide services in an efficient, effective and economic way.
Cooperatives are characterized by the democratization of capital, savings and credit, therefore there is no linkage or concentration of resources in a few hands, which is one of the evils that the country suffers and a very common practice in banking entities, that today they are in a state of shock.
The bankruptcy of several banks has been a strengthening of the cooperative savings and credit system, since confidence has been shown by their solvency, which is reflected in an increase in deposits, especially in fixed terms, which grew in 110.9% in the period from January to June 1999, which shows that people have increased confidence in cooperatives more than in banks.
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