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ISS Institute of Social Studies

Master of Arts in Development Studies


Local and Economic Development Specialization











Cultural values and socio-economic performance:
Case Study of El Salinerito Cooperatives, Ecuador.
Research Paper









Author: Cecilia Condo Tamayo








The Hague, The Netherlands
December 2001
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TABLE OF CONTENTS
Acknowledgements

Chapter 1 Introduction
1.1. Statement of the problem
1.2. Background of the research
1.3. Objectives
1.4. Research Questions
1.5. Methodology
1.6. Structure of the paper

Chapter 2 Theoretical and conceptual framework
2.1. Cultural identity
2.2. Core values
Reciprocity
Solidarity
Justice/honesty
Tolerance/respect
2.3. Ethnicity
2.4. Associative enterprises
2.5. Conclusions

Chapter 3 El Salinerito cooperatives: An experience in Salinas
3.1. Historical and cultural background
3.2. El Salinerito cooperatives experience
3.3. Main stakeholders
3.4. Analysis of performance of this experience
3.5. Conclusions

Chapter 4 Cultural values and the performance of El Salinerito cooperatives
4.1. Core values in El Salinerito cooperatives
4.1.1. Reciprocity
4.1.2. Solidarity
4.2. Secondary values in El Salinerito cooperatives
4.3. Hierarchies and structure of power
4.4. Origin of these values
4.5. Conclusions

Chapter 5 Conclusions
5.1. Main Findings
5.2. Assessment of theories used in this paper
5.3. Final conclusions

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Chapter 1
Introduction


1.1. Statement of the problem
Culture is usually an element absent in research about organisational and enterprises
performance. Economists and sociologists/anthropologists have not come to an agreement on
the relevance of culture. Either economists do not take into account cultural elements as
related to factors of performance or they have not done any field research to prove their
theories; or sociologists/anthropologists reduce the size of other elements besides culture
in the analysis of their performance. Indeed, moral values mark important trends in human
organisations (Barloewen 1995). In any case, studies have rarely been done in contexts of
developing countries, as is the case of Ecuador.
Like many South American countries, Ecuador is composed by a diversity of cultures and
races, with a population of mestizos (40%), indigenous groups (40%), whites (15%), and
blacks (5%) (Radcliffe and Westwood 1996). In this context, cultural identity becomes an
important element to be taken into account studying performance of any kind of experiences,
but especially those developed at local level with a multicultural background, as is the case of
El Salinerito cooperatives. Previous studies have assessed different factors related to their
economic and social performance, but cultural identity has been missing in those researches.
This paper is assessing cultural dimension in its relation with performance of the
cooperatives.

1.2. Background of the research

In Ecuador indigenous people are a relevant part of the population. There is a variety of
ethnic groups such as Salasacas, Huaoranis, Awas, and others, the predominant are the
Quichuas
1
, usually settled in the Andes highlands and in the rain forest of the country. All
these ethnic groups have historically faced severe living conditions and have developed
collective initiatives as responses to them, transforming some of them in modern institutions
as cooperatives and community enterprises (ILO 2000).

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One of these experiences is El Salinerito cooperatives, a result of some initiatives coming
from the Catholic Church and international donors to foster local economic development.
They are located in Salinas, a rural locality in the central Andes of Ecuador, belonging to
Bolvar province, one of the three poorest provinces of the country (Barreiros 1987), where
around 33% of the population are indigenous (INEC 1995). They started in 1978 with cheese
production, and through the years they have diversified their production with textile
enterprises and food processing industries.

The study of these initiatives is important because they have grown and expanded during the
last three decades, while most of collective enterprises in the country, as well as any kind of
enterprise, have broken down due to economic crisis, political instability and other factors.

1.3. Objectives

This paper is trying to fill the gap of previous studies on El Salinerito cooperatives. Those
were conducted in economic terms. Elements of cultural identity were ignored in relation to
the performance of these enterprises.

By doing so, I am trying to come out with a balanced view between economy and
anthropology/sociology about the relevance of culture in the performance of economic
experiences. Economists have usually situated the capital as the core of performance and
have proved their importance, but they have relegated culture and other factors to a lower
level in economic assessments. Meanwhile anthropologists and sociologists have claimed that
culture is the main factor of economic performance, but without proving it through empirical
research.


1.4. Research Questions

a. How have El Salinerito cooperatives performed?
b. To what extent are cultural values related to the performance of these cooperatives?


1
Literature has called them quichuas, quechuas, kechuas, or qeshwa, but it always refers to the same group.
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1.5. Methodology

This study was conceived from a holistic approach based on qualitative analysis, and built
upon the experience of the case study of El Salinerito cooperatives in Salinas, a rural
locality of Bolvar province, Ecuador.

Literature review was the main methodology used for answering my first research questions.
For the second one, I collected primary data, organised in four main variables, namely
Reciprocity, Solidarity, Justice/Honesty, Tolerance/Respect, as elements of cultural identity
related to performance of El Salinerito cooperatives. These variables follow hierarchy of
values observed in some studies about organisational performance
2
.

Data was collected through 62 surveys
3
applied to indigenous and mestizos men and women,
who are members and/or workers of 17 cooperatives out of 20 El Salinerito cheese-
producing cooperatives; but also through 6 interviews applied to leaders of the cooperatives
and communities. Respondents belong to 12 territorial communities out of 25 forming
Salinas. Among them, 8 communities present at least a 80% of Quichuas indigenous
population
4
and the others are mainly mestizos inhabitants.

Collected data has been dis-aggregated by race (indigenous and mestizos), and by gender
(male, female). In order to classify respondents as indigenous or mestizos, similar criteria by
different authors were used. Basically fourth elements of ethnicity were taken into account,
namely language spoken by the respondent (quechua), his/her way of costume (anaco in the
case of women), his/her family name, and their physical phenotype (colour of the skin, eyes,
and hair, shape of the face and teeth) (Psacharopoulos and Patrinos 1994, Hutchinson and
Smith 1996).


2
See Reisman 1990, Nicholson 1991.
3
For a sample of the surveys see Annex 1.
4
Information was obtained from the interviews of community leaders and also confirmed by observation of the
research team. National statistics about indigenous population at community level in Salinas are not available.
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Limitations
The main limitation of this study is the difficulty in establishing a relationship between
reciprocity, solidarity and the rest of values and performance of El Salinerito cooperatives,
an usual problem in analysis of cultural values in organisational contexts (Dissanayake and
Rahman 1983). But also some limitations in the methodology were faced. First, surveys were
not statistically representative of the whole population In the cooperatives due to time
constraints. Second, questionnaires for data collection were in Spanish, language spoken by
the total population of Salinas, but translating them to quichua could have helped some
respondents to understand questions and to respond them in a better way. Third, collection of
primary data was not done by the author of this paper, so only results of surveys were used
and not observations. Fourth, there is not enough information about other similar
cooperatives in the country to compare with El Salinerito ones, so it was not possible to do
a control case. Therefore, the analysis of this paper should be interpreted recalling these
limitations.

1.6. Structure of the paper

This paper is structured in five chapters. Chapter one presents the statement of the problem,
background, justification, objectives, research questions, and the methodology and limitations
of the study. Chapter two presents a brief discussion on theories and concepts required for the
analysis of the case study. Among them are cultural identity, ethnicity, core values like
reciprocity, solidarity, justice/honesty and tolerance/respect, associative enterprises,
collective action, social and cultural capital, networking, and economic exchange. Chapter
three starts describing the historical and cultural background of El Salinerito cooperatives,
then it looks at the relevance that main stakeholders have in this experience, and finally it
examines economic, social, organisational and other indicators of performance of these
cooperatives. Chapter four analyses the relationship between cultural values and performance
of these cooperatives. Chapter five, first, examines other factors related to the performance of
these cooperatives, and later it summarises the main findings, draw conclusions and policy
recommendations.

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Chapter 2
Theoretical and conceptual framework

This chapter presents the theoretical framework on which the analysis of further chapters is
based. It has five sections. Section one discusses approaches of cultural identity. Section two
presents concepts of core values, namely reciprocity, solidarity, justice/honesty and
tolerance/respect, and the links that they have with theories and concepts of exchange,
networking, social and cultural capital, and collective action. Section three reviews the notion
of ethnicity and its relation with identity. Section four illustrates concepts of associative
enterprises, and among them cooperatives and community enterprises. The chapter finishes
with a conclusion of the main theories and concepts developed in this study.

2.1. Cultural identity

In order to understand the concept of cultural identity let us first understand the notion of
culture and identity separately.

There is a variety of definitions of culture made in the fields of anthropology, cultural studies
and others disciplines, which have never been agreed (Darnell 1997). As Jenks explains, there
are four main clusters of meanings of this concept, which respectively see culture as a
cognitive category, as the level of collective social development, as an art, and as a way of
life of people (Preston 1997). Even if all of them are useful for this study in some sense, I am
addressing the last one due to my analysis of values involved in peoples daily life of this
experience; a definition that Kluckhohn identifies as the consensus of anthropologists
(Hofstede 1991).
In this perspective, combining some elements from different authors, I understand that culture
consists in patterned ways of thinking, feeling and reacting (Hofstede 1991: 21) developed
in the sphere of complex practical activity(Preston 1997: 39) in daily life of people. Culture
determines the identity of a human group (Hofstede 1991: 21), and through this feeling
maintains cohesion in society, and provides the structure where all social, political and
economic activities are developed (Tri 1984).

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Identity is perceived in two main different perspectives developed in Western literature: the
classical tradition and the pluralist framework. I am using the concept of identity coming
from classic tradition due to the multiple sources of identity identified in people involved in
this experience. Therefore I understand it as the outcome of a complex series of social
processes, which does not arise spontaneously but is learned and relearned over time
(Gellner 1962, Giddens 1991 quoted by Preston 1997: 4). The pluralist framework is not used
due to the fixed and permanent character (Scott 1995) that authors give to this concept.
Moreover, it is important to clarify that identity is always relative and in constant process of
construction (Grossberg 1996).

Consequently, cultural identity would result in the combination of both terms, and can be
seen as the collective identity of a specific culture, society or ethnic group. Its main aspect is
the similarity among its members, which differentiate them from strangers (Eisenstadt 1998).
This is an element of social life continually linked with economic and power processes and
relations, whose core values are solidarity and trust, elements analysed later.
As almost everybody belongs to different groups and categories (namely nation, region,
ethnia, religion, gender, generation, social class, etc) at the same time, people carry out
various attitudes pertaining to their different levels of culture (Hofstede 1997). In this sense,
analysis of cultural identity in this study is addressing main layers of peoples culture, namely
their ethnic, religious and local identities.
This analysis corresponds to the theory of local capabilities developed by economists like
Maskell and others, who understand it as part of the institutional endowment of an
experience. This includes all the rules, practices, routines, habits, traditions, customs and
conventions associated with the supply of capital, land and labour and the market of goods
and services(Maskell et al. 1998: 54). Therefore it becomes an important element taken into
account in the analysis of the performance of the in this study.
In the same way, cultural identity in this experience is identified with the concept of cultural
capital developed in Bourdieus (1986) theory of capital. In this sense I understand cultural
capital as the capabilities that people have as members of specific cultures (namely ethnic
groups, religious one, and so on), as manifestations of the elements (core values and
principles) of their identity, which are related to their work and their economic performance.
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2.2. Core values
Values are expressions of cultural identity, implying tendencies of preferences among people
(Hofstede 1997). Core values are those that are fundamental for a groups culture, and
generally represent the heartland of the ideological system that become symbols for the
members of the group, and distinctive for other cultural communities (Smolicz 1981). They
provide cohesion between the cultural and social systems of a group, and generally they are
taken for granted and accepted almost unquestioningly (Ibid. 83).
Usually in any cultural group there are more than one predominant core value, and it is
possible to establish a hierarchy of importance among them (Ibid. 76). Moreover, it is also
possible that they are conflicting to each other instead of being in a state of harmony in most
of the people and in the social system (Hofstede 1991).

For the purpose of this study I analyse four core values established in a hierarchy of
importance, based on the relevance that they have with the performance of El Salinerito
cooperatives. Reciprocity and Solidarity as it has also been found in the literature occupy
the main place in this analysis, and Fairness/Honesty and Tolerance stay in the second level.
Therefore, definitions of all these terms are presented below.

Reciprocity
Using Polanyis theory of exchange, Reciprocity is a cultural element present in traditional
societies, that implies reciprocal obligations among people and/or organisations, where they
give to and receive from each other, in terms of goods or services, in traditional ways, based
on social and cultural values and norms, established just by virtue of their status relationships
(Barber 1995). One feature of these reciprocal obligations is its indeterminacy of rates, as
Sahlins (1972) states. Although Polanyi refers to the primitive societies, he clarifies that
different types of exchange are always present in any economy of the modern world, namely
reciprocal, redistributive and market exchange (Barber 1995). For my analysis I focused on
reciprocal exchange as a main element of their economies, due to the historic and traditional
character among people of this experience.

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Following the same perspective, reciprocity in indigenous cultures is apparently a
spontaneous, free and generosity based social relationship when in fact it constitutes a
economic system that enables access to goods and services without the need of investing
money (Moya 1998). It has primary importance for rural localities, but especially for poor
communities, both of which are suitable for my case study. This reciprocity strengthens
family relationships, promotes cohesion in the community and reproduces culture (Ibid.).

Going beyond, reciprocity institutes social networks, which look for expanding market
opportunities and facilitating externalities (Bennett and McCoshan 1993), in a way of
horizontal exchange or associations between various stakeholders (Helmsing 1999) of the
community/locality. In this case study most of the networks are identified as horizontal due to
the cooperativist character of the relationships between people and also between units of
production.
These networks also coincide with the concept of social capital (Bourdieu 1986), and provide
essential information about optimal production systems (Ruben and Strien 1999) and include
not just productivity of economic networks but also civic engagement and social norms
(Dasgupta and Serageldin 2000, Staveren 2000). It implies an element of social trust (Putnam
1993, Goss 2001), which is the most important dimension in terms of efficiency and validity
of social capital (Halpern 1998).

Based on these conceptualisations, I understanding reciprocity as any kind of reciprocal
exchange carried out by people/organisations with any kind of material/immaterial and/or
immediate/further expected return, especially those that can easily be valued in terms of
money. Therefore, my concept refers to the economic aspect of exchange within/between El
Salinerito Cooperatives.

Solidarity
The analysis of solidarity follows two interdependent dimensions: First, as the link that
maintains cohesion in a social system; and second, as an altruistic assistance given to the
weakest and the most needy.

In the first dimension, solidarity is seen as a cultural value that involves a within relation and
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feeling that ties core values with the social system they belong to; assuring collective group
identity, collective action and peoples participation; and overcoming individualism. This
concept entails some complementary meanings coming from anthropological theories and
cultural studies, with an economic analysis of primitive societies, but also involving a
Catholic perspective of the concept.
First, it implies Smoliczs anthropological notion of the term, where solidarity is seen as the
link of the social system they are part of, assuring group identity (Smolicz 1981), and based
on the membership of the group (Bourdieu 1986). In this sense, analysis of solidarity is also
done in the framework of Hirschs theory of social cooperation, where he assumes moral
values are requirements for economic success (Reisman 1990).
Second, it involves the economic concept of pooling from Polanyis theory of exchange in
primitive societies, where it is seen as a within relation and the collective action of a
group (Sahlins 1972: 188), where solidarity is analysed as a broader, further and deeper
extreme of reciprocity.
Third, it entails the notion of collective action, which is seen as joint initiatives among
different stakeholders in the locality, to overcome disadvantages and limitations, and
fostering clustering and agglomeration economies (Helmsing 2000: 12).
Finally, it also includes the view of the social doctrine of Catholic Church. This perspective
is used in terms of analysing solidarity as a core value involved in this experience, where it
occupies a substantial place. In this way, solidarity is a Christian and human value that
motivates peoples participation in the economic, political and cultural life of every society,
overcoming individualism (Prez 1998). Indeed this doctrine attempts to propose solidarity
accompany with disciplined and creative work- as the only mediator between the individual
and the capital (Ibid. 12), which implies a change of conscience to be placed in the social
enterprise the family, the community, the cooperative, etc.

Within this dimension, solidarity is established and sustained by socialisation processes and
enforced by social controls, economic incentives and external pressures, and it also
involves commitment in defence of own interests and boundaries (Esman 1994). In this
sense, it usually implies opposition of the collectivity against outsiders (Eisenstadt 1998:
247).
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In the second dimension, the concept of solidarity is analysed as an altruistic assistance given,
as a kind of charity but with a logic of social responsibility, where every person is to some
extent responsible for the others. In this study this notion basically comes from the Catholic
Church or from any Church, in a general sense , where solidarity is closely linked with
charity, one of the three main theological virtues. This value involves some kind of equity
among beneficiaries of this experience, trying to reach the more disadvantaged groups as a
way to achieve general welfare.
In this way, it is important to remark that this last dimension of solidarity reinforces its first
notion, because including the less advantaged groups in a society, at the end, gives more
cohesion to the group, normalises social conflict and contributes to collective action.
Therefore, in this paper I emphasise the first dimension of solidarity, but also take into
account less deeply - the last perspective, to respect peoples perception of this value within
this experience.

Justice/Honesty
In Hirschs theory of collective action, Justice and Honesty are two ought to be conditions
for economic growth (Reisman 1990). Justice in the sense of fairness, a moral issue involving
neutrality and impartiality, stability and impersonality (Ibid. 311) but also with a more
Catholic content of doing the right and legal things; and honesty in terms of truth-telling and
honest reliability, as the lack of them can drive legitimate business out of existence, and the
economic welfare of the community can be diminished (Ibid.). Both values are very well
known in the Catholic doctrine, especially justice, which is considered the basis for building
the new society (Sollicitudo rei Socialis 1987).

Both values are closely related to economic performance, creating trust, an element that
allows the establishment of networks and social capital, and becomes a core element in the
case of cooperatives, as analysed in this study.

Tolerance/Respect
Tolerance is the other ought to be value in the Hirschian world, which is complementary
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with willingness to share (either as reciprocity or solidarity in this paper) in the sense that
without tolerance it is hard to achieve and endure collaboration and collective work (Ibid.).
Besides it, tolerance is also identified as respect toward others, in terms of being patient and
humble with their differences, and accepting diversity of opinion, feeling and action.
These are part of the core values involved in the cultural identity of people in this experience,
and they are used in the analysis of the economic performance of El Salinerito
cooperatives.

2.3. Ethnicity

In anthropological studies, there are some theories about ethnicity, which follow two main
approaches: the classic ones and the alternatives. Among the classic theories, two basic
approaches are the primordialist and the instrumentalist (Hutchinson and Smith 1996).
The former concept lacks dynamism and explanations about the nature of ethnicity, so it is
not useful for this study. The latter treats ethnicity as a social, political, and cultural
resource of its group (Ibid. 8), forming a complexity of relationships that allows a deeper
analysis of this experience.

Among the alternatives studies, there are three main approaches: Barths transactionalist,
Horowitz social psychological, and Amstrongs and Smiths ethno-symbolic approaches
(Ibid.). None of them fist the analysis of this experience due to the fixity of ethnic boundaries
of the first one (as in Salinas quichuas and mestizos live altogether and there are no clear
boundaries among them), due to the individualistic perspective of the second one (as this
study is about cooperatives more than individuals), and due to the privilege that the last
approaches give to myths and memories within ethnicity (as in Salinas neither myths nor
memories have been rescued in a clear way).

Then, a main ethnia is identified in this paper, called the Quichuas. An ethnia is an
indigenous group, a named human population with myths of common ancestry, shared
historical memories, one or more elements of common culture, a link with a homeland and a
sense of solidarity among at least some of its members (Ibid. 6). All these six elements are
found in this study, but only cultural values are analysed here.
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In Latin American literature there are some common characteristics that can help to
determine ethnicity, as language use, phenotype, group perceptions, and self-identification
(Stephens 1989, Nash 1989, Hutchinson and Smith 1996). All of them help to assure the
ethnicity of Quichuas population in this study. As Balibar asserts, a language institution
of institutions is what determines an individual belonging to this culture, but also what
serves to appropriate it (Balibar 1995: 184). Besides them, the presence of an indigenous
family name in respondents of the surveys has been included as element of ethnicity in this
paper.

2.4. Associative Enterprises

An associative enterprise is defined as a productive unit in which the majority of the owners
and the majority of the workers are the same, and where processes of decision making are
organised in a collective way (Wils and Thomas n.d.: 1). Among them, the most common
types are cooperatives and community enterprises.

Cooperatives are seen as unit of production belonging to the third sector (non government
neither the private sector) of the economy, which work beyond profits. They are mostly
locally developed, and have a key role in local communities (Fairbairn 1995 quoted by
Brown 1997). Due to their collective feature they promote democracy and imply an important
experience of networking, showing increasing flexibility and adaptability toward economic
change (Brown 1994).

Community enterprises in Latin America are identified as associative ways of production
where the capital and work quota are done equally by the same people, who are co-owners of
the utilities of reserve and capitalisation, and who acquire equal management and work
responsibilities (Londoo 1965 quoted by Oliart 1975: 44). They also involve common
perceptions, values and regulations, and coordinated action, and very often it implies an
ideological perspective (Ibid.).
Some of the characteristics of community enterprises are not fulfilled in this experience, like
those about job specialisation within the enterprise. Due to some needs of the production
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process, in El Salinerito enterprises workers do specialise and a certain hierarchy of jobs is
settled.

Overall, enterprises analysed in this paper are defined as rural production-based community
enterprises (cheese producers), legally recognised under the name of El Salinerito
cooperatives, with a combination of territorial community and productive cooperatives,
where the whole community owns and controls the cooperative.
2.5. Conclusions

The preceding discussion explored a theoretical framework where I explored the relationship
between cultural values as elements of cultural identity and indicator of performance of
cooperatives. To do so, I discussed approaches of cultural identity and defined it as the
collective feeling of belonging to a culture, developed in peoples daily life. As part of it,
reciprocity, solidarity, justice/honesty and tolerance/respect were analysed as cultural values.
Their analysis was linked to theories and concepts of exchange, social and cultural capital,
collective action, and networking. These elements are linked with the concept of ethnicity,
built in a context of a kind of associative enterprises, a combination of cooperatives and
community enterprises.
The theoretical framework developed in this chapter leads to the analysis of the relationship
between cultural values and the performance of the cooperatives in this study (chapter 4), but
in order to do so, first I assess their performance (chapter 3).
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Chapter 3
El Salinerito cooperatives: An experience in Salinas


The present chapter addresses my first research question How have El Salinerito
cooperatives performed? To do so it describes the experience of these cooperatives, and
assesses the main features of their performance through analyses from previous studies.
Section one briefly illustrates the historical and cultural background where this experience is
developed, with an emphasis in rural areas and defining cultural identity of people involved
in the cooperatives. Section two describes the process followed by the cooperatives during
this two decades. Section three explains the input of main stakeholders in this experience.
Section four analyses the performance of the cooperatives in economic, social, organisational
and other terms. The chapter ends with some brief conclusions.

3.1. Historical and cultural background

As most of the countries in Latin America, poverty in Ecuador has been increasing the last
decades along the application of neo-liberal models in the economy of the country, expanding
to around 60% of the population. While this model has transformed Latin America
agriculture it has not overcome rural poverty, exclusion and landlessness (Kay 2000).
Currently around 41% of Ecuadors population live in rural areas, 58% of the poor resides
there (INEC 1990), and about 76% of total rural population is poor (Ibid. 1995).

In the Andean highlands of the country most of their rural population belongs to indigenous
groups, who live in worse conditions than mestizos, bearing discrimination, social exclusion,
exploitation and extreme poverty. But living in communities in rural areas, both groups face
similar problems and sometimes start collective initiatives to overcome them.

This is an experience of local economic development in Salinas, a rural parroquia (a
territorial unity) belonging to Bolvar province, in the Andean highlands of the country. At
the beginning in 1978, Salinas was one of the poorest zones of the country, with high levels
of malnutrition and sicknesses, infant mortality and illiteracy; isolated from commercial
routes. Majority of people there was working in exploitative conditions for Cordovezs
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hacienda (farm) and/or migrating to coastal cities (North 1999, Cadena and Boada 1998).

Cultural identity
In Salinas there are around 1,400 families (8,500 inhabitants) belonging to Matiav Salinas
comuna, a territorial political organisation legally recognised by central and local
government, who gives it some property rights in terms of land tenure and political
participation.

In Salinas around 65% of the population is indigenous
5
and 35% mestizos (Ibid.), living in
communities that vary from 35-40 families (indigenous communities) to 80 families
(mestizos), and with Salinas village with around 200 families.
This indigenous population is identified as Quichuas, an ethnic community historically
formed by multiple ethnic groups living along the Andean highlands in Ecuador, Per and
Bolivia (Moya 1998) and sharing a similar language strongly homogenised during the Incas
conquest, and latter reinforced through the indian lite during the Spanish conquest (Almeida
1999). They are considered ethnic community because they share racial features, belief
systems (religions) and common culture (Esman 1994, Psacharopoulos and Patrinos 1994,
Hutchinson and Smith 1996).
Quichuas are identified as a collectivist society because they share elements that Hofstede
(1997) identifies as collectivist, namely a common interest prevailing over individual
interests, integrating it as a strong and cohesive group, and giving a defined identity. They
have a holistic approach of the reality that implies an integral perspective of themselves and
of the universe, and define any type of human activities supported by the cooperation,
solidarity and collective action (Garca Miranda 1996:138).
Traditionally Quichuas have developed collective strategies in most of the spheres of life,
based on reciprocal exchange. One of the main types of reciprocity is the minga, a Quichua
word referring collective works that people carry out without payment, such as building roads
and houses, cleaning up plots, harvesting together, and so on. These mingas can be
symmetric, with equal exchange of services, or asymmetric, oriented towards the extraction
of profits (Moya 1998).

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In Salinas, indigenous people and mestizos live together in communities identified as
indigenous, where more than 80% of population is so, or mestizos, with at least 50% of its
population. Indigenous communities are located mainly in most remote areas in Salinas,
while mestizos communities are in or close to Salinas village.
Indigenous and mestizos living together in Salinas has resulted a positive combination, where
a logic of community work and ethnic diversity has been built among the people. Combining
quichuas cultural values and mestizos social characteristics has generated an interesting
combination of cultural identity, where reciprocity and solidarity as quichuas characteristics
, and participation and open-mind as mestizos ones - have become core elements of this
process.

One more source of their cultural identity is religion, which for majority of people in Salinas
is Catholicism, whose main values are solidarity and justice, both playing important roles in
this experience.

Therefore, in terms of cultural identity, adding the rural context where this experience is
developed, people in Salinas is mainly identified as Catholic Quichuas/mestizos peasants.
This combination gives them interesting elements dealing with the process of local economic
development raised in the last two decades.

3.2. El Salinerito cooperatives experience

This is a locally economic, social and cultural experience developed in a Catholic
Quichua/mestizos peasant framework in Salinas, where the main actor is El Salinerito
cooperatives. Initiated, promoted and supported by the Catholic Church, is coming from the
perspective of its social doctrine
6
, a social dimension that this Church adopted in Ecuador
by 1960-1970 (Chiriboga 1999).

This is a model of popular development, with productive objectives and with ample economic
redistribution, performed by collective actors, developing a process that combines

5
This is a non official figure result of some studies done in Salinas.
6
The most important theological sources of this doctrine are in The New Order Encyclical (1891), Master and
Magistrate by John XXIII (1961), Pace in the Earth by Juan XXIII (1963), Gaudium et Spes by Paul VI
(1965), The progress of the people by Paul VI (1967), The Work Exercise by John Paul II (1981).
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productive/administrative activities and new technology with organisational/associative
practices and local cultural processes (Bebbington 1992).
This model has a community agro-industrial logic, transforming production in goods
marketed in the biggest urban areas of the country through a set of productive community
enterprises/cooperatives, producing profits that are redistributed among the locality in an
associative way (Ibid.).

Initiated with the arrival of Father Antonio Polo, member of the Salesian Mission a
Catholic religious community and current priest of Salinas, it is formally recognised 1978
as the year of the opening of the first cooperative. But before this year, some efforts were
already done.
At the beginning, land tenure in Salinas belonged to three big owners: the Cordovez family,
the Catholic Church, and the Matiav-Salinas comuna (Cadena and Boada 1998). But
through the years they sold their land under pressure of people moving the agricultural
production model from long-extensions latifundio to small-scale peasantry minifundio.

This experience started by 1978 when just one cooperative was working in Salinas village,
and this project was approved by different local, national and international stakeholders. The
emphasis was drawn toward the use of new Swiss technology in cheese production, together
with access to credits and training processes (Ibid.).

After growth and success of this first cooperative, many others were created in different
localities of Salinas, diversifying and increasing production, expanding markets and offering
services to the whole community. Currently there are 20 cheese production cooperatives
functioning, but there are also other enterprises. Among them are two cooperatives for beef
processing, the wool processing cooperative, the Salinas textile enterprise, the mushroom
drier, the carpentry workshop, the mechanic workshop, the handicraft workshop, the tagua
button workshop, El Refugio hotel, and more than 20 small enterprises developed in the last
years (Gonzlez 1998).

3.3. Main stakeholders

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There are many internal and external actors that have intervened along these two decades of
this experience, but just the main ones are analysed in this paper.

El Salinerito cooperatives
El Salinerito is the brand name with what these enterprises are identified in the market.
They are a model of associative enterprises combining community enterprises (in terms of
ownership, and therefore, decision making) and production cooperatives (in terms of
management of production), that in this paper I always call cooperatives to avoid confusion.
They started producing cheese, but currently they produce a variety of goods and services,
some of whose follow a vertical integration in the locality.
In terms of workers they employ between 1 to 4 people and in terms of milk producers: from
20 to more than 150 producers each of them. Each of them produces separately but
everything is commercialised together in a horizontal network and profits are shared
among all of them.
These cooperatives play the key role in this experience, and all of them form a second grade
organisation called FUNORSAL Salinas organisations foundation.

FUNORSAL
It is a second grade organisation compounded by 29 organisations community enterprises,
cooperatives and others of Salinas. Promoted and directed by the Catholic Church (Father
Polo), it is functioning since 1982 but it was legally created in 1988, as a non-profit
organisation. Its main goal is strengthening Salinas organisations for the improvement of
their members welfare, through the execution of productive and financial proposals, and
through training, and social/cultural development (FUNORSAL 1999).
It manages some productive projects, distribute utilities of the enterprises, create new ones,
and implement social projects within the communities. In each territorial community
FUNORSAL creates a saving cooperative as its member and then this one owns the
production cooperative to be created.
It is the entity that concentrates capital investments, donations, credits and technical
assistance as institutional property. Their main properties are 470 has of land in Salinas and
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29 cooperatives/enterprises (Ibid.). In organisational terms, it is a combination of peasant
federation and NGO, that emerged as a modern expression of the power of the commercial
elite in Salinas (Bebbington et al. 1992).
In terms of hierarchy, FUNORSAL is the maximum organisation for decision making, where
all members of all communities participate. But for daily management there is a directory in
charge of supervision and control, and a professional team of around 30 people that execute
decisions made by the directory (FUNORSAL 1999).
FUNORSAL is the leading organisation of this process and the most qualified one. Currently
it is involved in a process of strategic planning, to be widespread through all organisations in
Salinas.

Salesian Mission
Father Polo is the main leader of Salesian mission in Salinas, is the mentor of the whole
project, is the president of executive board of FUNORSAL and, therefore, he has a strong
influence among the whole community mestizos and indigenous and in organisational
levels (Cadena and Boada 1998).

This mission has promoted the creation of each organisation, enterprise and cooperative in
Salinas, and even it does not have a formal hierarchical position, in fact it is the most
powerful one in terms of decision making in this process.

FEPP
It is an institution part of the Catholic Church in the country, whose name but also its
performance reflects the Social Doctrine of this Church. Basically it is an office which works
with international funds of the Church for supporting social and economic projects within the
country. It is also a member of FUNORSAL, and part of its directory.
It has played a main role in technical support, training and financing most of the projects and
enterprises developed in Salinas (Chiriboga 1999), and it has also a high hierarchical
position in the structure.

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COSUDE
It is an international donor that has played the main role in terms of technical support in this
experience, introducing and adapting Swiss technology for cheese production to the rural
conditions in Salinas. The main actor from COSUDE was Jose Dubach, a Swiss farmer who
moved to Salinas and worked there as technician, becoming one of the most influential
characters in the locality in terms of organisations. COSUDE has also been a key element for
international networks, accessing donors and markets on behalf of El Salinerito
cooperatives.

Besides them, basically there is no intervention from local and/or central government. But
there are also other local, national and international stakeholders dealing with secondary
processes in Salinas, such as provision of services, improvement of living conditions, and so
on; which are not part of this analysis.

3.4. Analysis of performance of the cooperatives

Some authors have analysed the performance of El Salinerito cooperatives and I use their
reports in this section
7
, including also my own findings that I state as Own surveys. Most of
the indicators are stated in all these studies, unless it is specified. I classified the results as
economic, social, and organisational indicators, and other results.

Economic indicators
- Creation of around 600 jobs (between direct and indirect, full and partial time), from
which 70 are workers of the cheese cooperatives, and 170 are milk producers.
- The cooperatives offer competitive salaries to their workers in comparison with similar
jobs in other places of the country: from 40% to 80% more than regular salaries. And
besides that, workers have all the benefits approved by law (which is not a regular pattern
in the country).
- Redistribution of land property among Salinas inhabitants: initially it was a latifundio
system owned by three big landlords, and nowadays every family has at least a small plot
(minifundio).

7
For more references see Bebbington et al. 1992, Ramn et al. 1995, Cadena and Boada 1998.
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- Increase of family properties: nowadays every family has at least 3 to 5 cattle units and
there are families with 80 heads.
- Increase of technical and professional skills by some members of the community, to fulfil
the requirements for the management of the cooperatives and enterprises.
- Creation of 98 productive projects including the cheese production cooperatives (4 in
other localities of the province and 45 in the country), but not all of them are working or
in a profitable way.
- Some levels of diversification have been achieved: from the production of fresh cheese
at the beginning of this experience to 12 different kind of cheese, but also production of
other goods derived from the milk (more than 20 diverse products).
- Diversification of markets: opening of 2 cheese specialised shops in Quito (the capital
city), and commercialisation of products in 5 cities of the country, in 9 different private
markets among them.
- Improvement of quality of milk based on improvement of quality of cattle, main resource
for cheese production in the cooperatives.
- Increase of milk production for cheese making, from 53 litres daily in 1978 to 6,750 litres
in 1998 (Gonzlez 1999)

In terms of local economic development, all this data evidences an important increase and
diversification of production by the cooperatives with their positive consequences for their
workers and their members (the whole community) in economic terms. Even if there is no
measure of changes in family income and family purchasing power in the last two decades, it
becomes evident the increase of their economic capacity.

In terms of the cooperatives, the increase of their productivity is a clear element for
sustainability in a time of national crisis in the country. Indeed while in other provinces
similar kind of cooperatives have been broken down, in Salinas all cooperatives are still
working.

Social indicators
- Decrease of infant mortality rate in a 76% from 1970 1990 (63% was the rate in 1975),
and in 55% of total mortality in the region. In terms of infrastructure, nowadays there are
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three medical centres within the communities.
- Definite return of recent migrated people, arrest of migration in the region (in 1975
migration rate was 25%), and immigration of people from other close communities
toward Salinas to fulfil job vacancies. However, primary and secondary mestizos students
are still going out of Salinas to study in the main cities of the country (Own survey).
- Around 70% of the current housing has been built through credits and organisation of the
cooperatives.
- FUNORSAL has built around 70km of transport ways, which are one of the main means
to access markets and integrate rural communities.
- Every village has its own primary school and there is a secondary school in Salinas
village (Own survey).

For most authors and literature this social impact in living conditions of the whole
community of Salinas is the main achievement of this process. Some minimum social welfare
has been accomplished in terms of nutrition and health, education, and housing, even tough it
has not been equal for everybody. This increase in living conditions encourages commitment
of the majority of the population toward the cooperatives, assuring their sustainability.

This result also assures peasantry subsistence in Salinas, in a period when peasantry in Latin
America is not disappearing but declining their relevance for agriculture (Kay 2000). In this
international context, any effort that assures peasantry subsistence especially in its
agricultural character can be considered positive and relevant in the sense of ceasing rural-
urban migration and all their consequences for the urban centres where people migrate to but
also for rural communities.

Organisational indicators
- Democratisation: Majority of people takes decisions in community spaces such as general
assemblies, meetings, and so on (Gonzlez 1999).
- Participation: At least one member of the 95% of the families participate in any or some
of the 29 organisations that belong to FUNORSAL.
- Capacity building: Improvement of managerial capacity of FUNORSAL.
- Capacity building: Improvement in the ability to negotiate with local and central
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government, and networking between cooperatives and other national/international
organisations.
- Legitimisation of enterprises: FUNORSAL and this experience has become a point of
reference for regional identity.
- Institutionalisation: Creation and strengthening of CONQUESTUCOM, a foundation that
includes almost all cooperatives, enterprises and organisations related to cheese
production in Salinas, in their different stages of the process, namely production,
marketing, distribution, and commercialisation.

In terms of local economic development, this experience has important results strengthening
social capital and networking between people/organisations in the locality but also outside of
it. It is also an important effort of local capacity building, self-management and empowering
people in their own cooperatives. This dimension also guarantee sustainability of this
experience.

Others results
Some other achievements of this experience are:
- Environment: The reforestation project through the whole community, which implies that
the peasants have assumed a forestation practice.
- Womens Empowerment: Less discrimination of women, and nowadays they have more
space in decision making and some family roles have been shared with men; and there are
women associations in 14 communities of Salinas (North 1999).
- New attitudes toward savings and investments, new services for the whole community,
and more social awareness of their living conditions (Own survey).
- Culture: Revalorization of their indigenous peasant identity (Gonzlez 1999).

But there are also difficulties, negative impacts during this two decades:
- Deforestation in subtropic zone due to use of land for food for cattle (Bebbington et. al.
1992).
- Inequities in distribution of profits: Some families have benefited more than others,
especially Vargas family and others who live in Salinas village (Own survey). Indeed,
most of the benefits go to Salinas village, where 10% of the population live, and while
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infant malnutrition has almost disappeared in this village in other communities it remains
in 30% (North 1999).
- Changes in the diet of people: More consumption of industrial products and less natural
food (Bebbington et. al. 1992).
- In complex organisations as the spinning factory there are difficulties in the social
relationships among workers-managers due to authoritarian stiles of management, lack of
trust of workers toward management, and lack of negotiation among parties (North 1999).
- Nowadays people are less willing to collaborate for free (Own survey).

Even if this experience still needs some improvements and shows some current limitations,
after analysis of productivity of the cooperatives, the improvement in living conditions of
majority of the population, the strengthening of peasantry, and the improvement of local
capacity building and networking, I agree with all authors who consider successful El
Salinerito cooperatives in economic, social and organisational terms.

3.5. Conclusions

I addressed my first research question through assessment in this chapter. It analysed the
performance of El Salinerito cooperatives during the last two decades in Salinas. I explored
the historical and cultural background of Salinas, identifying features of Catholic
Quichua/mestizos peasants as constituting peoples cultural identity. The cooperatives
performed in this cultural framework, directly supported by some stakeholders like
FUNORSAL, Salesian mission, and COSUDE. I examined the main features of their
performance in economic, social, organisational, and various terms. Creation of 600 (direct
and indirect) jobs, decrease of infant mortality rate, arrest of migration in the locality, and
improvement of managerial capacity of the cooperatives were the main positive findings
about their performance. On the other hand, deforestation, and presence of inequalities were
among the negative results.
After this assessment I conclude that these cooperatives have performed through a slowly
process successfully in most of the aspects of the analysis, in individual, community and
organisational terms. In this sense I agree with all previous studies. Besides that, the process
to overcome their limitations has already started. In the next chapter, I explore the
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relationship between cultural values and the performance of these cooperatives.


28

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Chapter 4
Cultural values and the performance of El Salinerito cooperatives

This chapter is addressing my second research question To what extent are cultural values
related to the performance of the cooperatives? By doing so I organised this chapter in five
sections. Section one and two analyses the presence of core values (reciprocity and solidarity)
and secondary values (justice/honesty and tolerance/respect) in the cooperatives and their
relationship with their performance. Section three explores the structure of power and
hierarchies where are developed those relationships. Section four examines the origins of
those values in the people in Salinas. This chapter concludes answering my research question
through the analysis of combined findings across values.

4.1. Core values in El Salinerito cooperatives
4.1.1. Reciprocity

In this section I analyse reciprocity in two steps: first, analysing whether reciprocity is or not
a cultural value present in El Salinerito cooperatives; and second, if so, assessing whether
or not there is a relationship with their economic performance.

Meaning and application of reciprocity

In El Salinerito cooperatives the concept of reciprocity as any kind of reciprocal exchange
with an expected return that has been developed by their members/workers through different
strategies fostering common welfare, protection against calamities and improvement of living
conditions. The most common initiatives observed and also confirmed by respondents are the
mingas, money collection to overcome peoples problems (accidents, natural disasters, etc),
the Social Assistance Fund (existent in every cooperative), general assemblies of the
cooperatives (which include the whole community, as they are indeed community
enterprises), and loans for upgrading home/business. These strategies deal with reciprocal
exchange in the sense that even if today they are supporting just one member of the
cooperative, it is generally acknowledged that tomorrow it will try to meet other persons
need. Therefore there is an expectation of return in the long term, which is usually not
symmetrical in terms of money value (as capital, goods or labour force) but it is so in terms
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of opportunities (as many times people participate, as equal times they can request help).
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Matrix 1
Cultural Values in relation with performance of El Salinerito cooperatives

Level
Indicators of
performance
cooperatives
Main values observed in their cultural identity Division of
Roles and
Hierarchies
Reciprocity Solidarity Justice/
Honesty
Tolerance/
Respect

Individua
l
performa
nce
Of
members
/
Workers
of the
Cooperat
ives

Commitmen
t
(measured
through
hardworking
, discipline,
responsibilit
y,
fulfilling
tasks and
problem
solving)
! Encourages
willingness to work,
discipline
hardworking
! Increases individual
production
(therefore, also the
production of the
Cooperatives)
! Encourages willingness
to work and
hardworking
! Motivates participation
and responsibility
! Encourages
willingness to
work when they
are treated
equally
! Increases
accountability
(better production
and sales)
! Encourages
participation and
willingness to work
! Motivates people to
keep improving
(correcting mistakes)
! There is an open
attitude towards
innovation
Based on differences of
gender, race, age, and
leadership, there is a variation
of:
Level of Commitment:
women are more
committed than men
Types of responsibilities:
characteristics of social
status
Discipline at work



- - -

- - -

- - -
- Extreme tolerance
decreases quality of
performance, and
decreases prestige of
cooperatives.

Relations
hips
among
members
/
Workers

With
authority:
following
instructions
! Willingness to
follow instructions
when both sides
(manager and
worker/member) are
reciprocal

- - -
! Mutual
confidence among
workers/manager
s when both are
fair/honest in
their performance
! Overcomes minor
frictions with the
authority
Leaders/managers are
usually:
Indigenous/mestizos men
Mestizos women (few
cases)
Between 35 to 50 year
old
With secondary or higher
education

- - -
- Solidarity among
members/workers have
implied opposition
against managers in
some cooperatives,
especially when
management was not
legitimised

- - -
- Tolerance toward
mismanagement has
worsened
breakdowns of
cooperatives
(delayed decision
making)
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With other
members:
collaboratio
n
! Builds up synergy,
networking, and
social capital, within
and between
Cooperatives
! Reduces the
presence of free
riders
! Motivates
participation
! Build trust, confidence,
cohesion, within and
between Cooperatives
! Sustains confidence and
collective action as units
of production
! Reinforces social system
and its values
! Animates mutual support
! Promotes faster and
better problem solving
! Creates trust,
collective
production,
supportiveness,
mutual
collaboration
! Diminish
inequities
! Avoids conflicts
! Creates trust,
harmony, peace,
positive feelings and
leads to consensus
! Is important due to
diversity of people,
especially living in
community
! Motivates
participation
The main tendencies
observed were:
Strong and constant
collaboration among
members of similar and
lower level (based on
age, race, gender,
education, social
position)
Attempts to reach
consensus in decision
making

- When there are no
social constraints,
there is a decrease of
collective action and
an increase of
individualistic
behaviour
- Presence of free riders
in the cooperatives

- - -
- Allow the presence
of free riders in the
cooperatives, and
therefore can
discourage
participation of other
members

Institutio
nal
context

Values
written
down in
rules and
regulations
! Assures participation
(otherwise
punishments and
fines)
! Enforces collective use
of utilities of
Cooperatives
! Enforces assistance
funds
! Avoids orruption
! Improves
allocation of
resources and
effectiveness

- - -
Rules and regulations are
mainly proposed and
established following:
Father Polo suggestions
(Catholic values)
Suggestions of outsiders
(COSUDE, FEPP)
Cooperativism principles
Tradition (Quichuas)
- Social coercion is
not as effective as
motivation

- - -

- - -

- - -
Direction of Association between cultural values and indicators of performance
Positive association (for instance, as more reciprocal, more committed)
Negative association (for instance, as more reciprocal, less committed)
Non clear/observed association
Level of Relationship
Strong positive association
Strong negative association
!
-


-
-
-
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These types of strategies coincide with what Guillet (1979) and other authors report about the
persistence of reciprocal labour in Andean peasants. He argues that reciprocal labour is
flourishing, in areas fully monetised, where commercial agriculture and craft production
exist, where is a semi-proletarian labour force offering labour for sale, and also in localities
with specialisation and division of labour (Guillet 1979)
8
. Even if he analyses a reality of the
past, his report perfectly suits the analysis of current Salinas reality. First, nowadays USA
dollar replacing the Sucre, the former national currency is present in most of economic
activities in the different localities of Salinas. Second, there exists a low-scale commercial
agriculture, especially cheese production. Third, many people are selling their labour force to
the cooperatives and other small business/families of the communities. Fourth, in the
cooperatives there is an important specialisation and division of labour, especially in the new
enterprises such as spinning factory, cloth production, and so on. Most importantly,
reciprocity is flourishing in the sense that people are increasingly willing to work when they
get some returns for their work, as respondents have stated repeatedly.

In terms of hierarchies, two main tendencies are observed: a strong and constant collaboration
among members of similar group/level; and a weak reciprocity among people from different
hierarchies. In the first trend, intensity of reciprocity is strongly perceived among women and
among youth, probably due to their respective responsibilities at home and in the
communities that push them to support each other. In the second trend, reciprocity has been
hard to achieve when it implies people from higher positions (as highly educated people, the
rich, managers and leaders), except with Catholic leaders.

The networks of reciprocity, as explained above, have basically features of horizontal
exchange, and in a less degree, are vertically integrated, especially in terms of cooperatives
rather than individual performance. Indeed, the cheese production cooperatives are
established in a structure of vertical cooperation, which involves almost the whole
community, starting from the milk producer and ending with the sellers.
Accordingly, networks are fully developed in Salinas across different groups, enterprises,
localities and communities forming a complex structure formed by small/local networks
which can be analysed as independent systems; starting from the basic one which are the

8
For additional sources see Celestino 1972, Orlove 1977a, Brush 1977, and Esteba Fabregat 1994.
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family units and ending with the second grade organisations, called FUNORSAL, which
indeed is part of broader networks out of Salinas, as CONQUERUCOM and the Ecuadorian
Union of Cheese.

Relationship between reciprocity and indicators of performance in the cooperatives

Relationships between reciprocity and indicators of performance are analysed through two
main variables: individual performance of member/workers and relationships among them
(see Matrix 1).

I used commitment (measured through problem solving and fulfilling tasks) as indicator of
individual performance for assessing its link with reciprocity. Respondents perceive
commitment as making no mistakes, working better with a high quality, producing enough
for selling, and fulfilling tasks. Most of them perceive themselves as highly committed to
their work. Especially women show a higher tendency to commitment than men, except that a
majority of them were not willing to work extra time for finishing their duty, which is
understandable due to their family responsibilities at home.

A high degree of commitment (as hardworking, discipline and responsibility) is a generally
accepted factor of success in any kind of enterprise. This means that people involved in this
experience are by themselves potential indicators of success for the cooperatives, as
commitment increases individual production, and consequently, increases the overall
production of the cooperatives, which leads to increase of sales and profits, and therefore, to
their success.

Majority of respondents stated that they have become hardworking and also responsible (as
expression of commitment) since they started working as children or teenagers except
mestizos men. The difference also resides in the working place mentioned by people:
indigenous men refer to working in the cooperatives, while indigenous/mestizos women refer
to agriculture and usually in a family context (working with parents, especially mother) while
mestizos women also mentioned the cooperatives as working place. Moreover, the presence
of reciprocity also implies a reduction of free riders and, therefore, a better performance of
the rest of members/workers.
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Besides that, I observed that collaboration with other members of the cooperative has a very
strong positive relationship with reciprocity. For an understanding of this correlation, two
theories have been used: social capital and networking. Reciprocity has built them up within
and between these cooperatives. It is generally recognised that a well established network
and a positive social capital are main factors of economic success, especially when the units
of productions stand any kind of exclusion from the markets. Moreover, networking in
Salinas has been developed among different stakeholders between indigenous groups and
wealthy mestizos through solidarity, as a consequence of facing common exploitative
conditions from Cordovez family (Bebbington et al. 1992, Ramn 1995). Participation of the
second group has become a substantive element for assuring success of the cooperatives,
especially in terms of investment and assets.

Social trust is other element present in the analysis of networks and social capital, which
motivates participation as a collectivity. In this sense many economists have seen it as a key
factor of economic success, especially in those initiatives that do not imply immediate or
symmetrical return.

But reciprocity sometimes is also constraining collaboration among members of the
cooperatives. Three main arguments illustrate this point. First, about expectations of return
within reciprocal exchange, when there are no clear social constraints (determined by values,
norms and regulations), there is a decrease of collective action and an increase of
individualistic behaviour. This is rarely the case of cooperatives in Salinas, but has been
observed in those communities with a lack of leadership and with a decrease influence of
strong leaders of this experience, as Father Polo and others.
Second, it has been observed that people fear to take independent decisions about themselves,
due to tight networking, not just in the cooperatives but also in the whole communities.
Indeed as Goss (2001) states strong kinship may provide substantial support but can also
imply heavy obligations and limited possibilities, and moreover, could close the community
from other sources of social improvement. An example of it is the fact that one community
met (one of the days of the surveys) to reprimand a couple because their 22 year old daughter
was still single; it was seen by the community as a problem and parents were advises to
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take immediate actions to solve the problem. One may wonder what would happen if in the
future that single woman or even her whole family- moves out of Salinas to a place where
she/they can take their own decisions.
Third, networks can also be too cohesive, and sometimes even become coercive towards
individual members. When there is a core disagreement in decisions and some sanctions are
taken through coercion, divisions within the cooperative and/or community start taking place.
If they are not positively solved, conflict can result as it has happened in the past in the
breakdown of the cooperatives with important economic and social losses.

Consequently, after an analysis of relationship between reciprocity and the various indicators
of performance in El Salinerito cooperatives, it is quite clear that this cultural value has a
strong positive relationship with their success, in terms of individual but also collective work.

Final analysis of reciprocity
The presence of reciprocity among people/cooperatives involved in the process in Salinas,
and the relationship that it has with their performance has been demonstrated. It is evident
that all stakeholders within the locality are involved in the process of developing the
cooperatives (and the community in an ampler way), even though in different degrees of
commitment based on their cultural/social identities (race, gender, age, social status,
education) and the position they hold in the organisational structure of Salinas.

Nevertheless, with the implementation of this process within the cooperatives, it is also clear
that people are moving from a profound non-monetary informal reciprocal exchange towards
a more diverse, market oriented (with a shift in the form of the expected return, nowadays
based on money), and more formally institutionalised exchange, within the frame of modern
organisations such as cooperatives and social funds.

Finally, past trends and current situation have been analysed in this section in terms of
reciprocity, yet there is still a need of assessing future possibilities in El Salinerito
cooperatives. Sustainability of reciprocity is strongly supported by its formal successive
institutionalisation in modern structures, but even tough, the core question about the future of
reciprocity is whether it will remain or not in the absence of Father Polo, as one day he will
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not be in Salinas any more. Findings suggest that in the current situation, unless another
strong leader replaces his position, probably this experience could fail in a long term.

4.1.2. Solidarity

Meanings and application of solidarity
The notion of solidarity in this study implies two basic meanings: as an element of cohesion
of social systems, and a value that involves helping the needy. In the first perspective,
respondents identify this value with collective work, being a collectivity, and helping to walk
together in harmony. The second dimension coincide more with a traditional vision of
solidarity from the Catholic Church giving a content of charity and sensitivity towards others
needs, as is reflected in expression of respondents such as to wear somebodys else shoes,
and accompany others in the good and bad moments.

In terms of the main strategies that, as collective work, are developed through solidarity, the
most common are general assemblies for decision making and problem solving, cropping
together, arranging local festivities by groups, and executing mingas for the improvement of
the community/cooperatives. Solidarity as helping others is observed in initiatives such as
helping others in problems, lending vehicles when there is an emergency, and promoting poor
communities to be part of this process.

The main tendencies identified are: First, in all the surveyed groups except mestizos men
people perceive themselves less solidary than how they are really acting so. This can be
explained by a difficulty of understanding the meaning of the word solidarity or by a low
self-esteem in most of the people. Second, while most of male mestizos respondents see
themselves very much solidary, less than half of them are currently acting solidary, which
suggests that they have a high self-esteem that motivates them to answer in this way,
probably shaped by their higher level of formal education in comparison with the rest of the
respondents.
In this sense, very few mestizos women and very few indigenous men see solidarity as one of
the most important values in their jobs. This finding corresponds with the evidence of a
decrease in solidarity in the cooperatives through time, as it has become less important in
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their hierarchy of values. Even if people today act less solidary than in the past it remains a
strong feeling that motivates quick action especially in moments of overall crisis and natural
disasters. This action is observed across different levels of hierarchy and among all
stakeholders in Salinas. At the bottom of the structure solidarity becomes stronger and
permanent, and it decreases (but not disappears) in higher levels.

Relationship between solidarity and indicators of performance in the cooperatives
The presence of solidarity either with a meaning of collective action or helping the needy is
identified in all the indicators of performance analysed in this study, but a more evident
relationship has been found between this value and collaboration among members/workers of
the cooperatives.

There are positive relationships between solidarity and commitment, which are measured
through hardworking, discipline, responsibility, fulfilling tasks, and problem solving. As
Esman (1994) admits, solidarity implies commitment toward their own interests. In the case
of Salinas it refers to the job in the cooperatives. It was found that in
cooperatives/communities where people show more solidarity, they also show more
motivation to participate and be responsible for specific tasks/activities. In this sense,
respondents also state that solidarity encourages willingness to work and hardworking, as
well as the feeling of responsibility to solve problems in the cooperatives, and correcting their
own mistakes.

An important negative correlation has been noted between solidarity and members/workers
performance toward the authority (measured through following instructions). This is the case
of some cooperatives where solidarity among members/workers has implied resistance to
their managers, implying serious labour conflicts. Thus, if solidarity is not addressed
positively, can become a threat for the sustainability of enterprises.

But the most important and evident relationship observed in Salinas is between solidarity and
collaboration among members/workers of the cooperatives, both as a collectivity but also as a
result of addressing the less advantaged groups of the locality (helping the needy), which has
a positive and a negative side.
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Positive relationship is observed in terms of building trust and confidence, within and
between cooperatives. This motivates mutual support, promotes faster and better problem
solving, sustain self-confidence and collective action, and also reinforces the values involved
in the social system of Salinas. In this sense, strengthening cohesion of the cooperatives,
through an extended and meaningful system of social relationships, is important due to the
discouraging economic conditions that they have to face in terms of market competition and
access to resources. These linkages and cohesion are theoretically identified as collective
action (Helmsing 2000) and as the system of pooling (Sahlins 1972) in primitive societies,
which is also relevant in modern economies.
In their explanations about why solidarity has a positive relationship with their success, the
most common reasons given by respondents were because solidarity is the core part and the
power that moves them on, it creates trust and confidence among members, and it is a fast
way to solve problems and overcome difficulties as a collectivity. Barloewen (1995) states
about Latin Americas lack of trust in its own productive potential that can easily give rise to
a negative national identity. Likewise, this study suggests that in the case of El Salinerito
cooperatives the presence of solidarity is accompanied by trust among
members/organisations, shaping a positive local identity, which is also increasingly being
recognised by external actors in a national and international level.

As negative relationships between solidarity and collaboration among members/workers of
the cooperatives, the study shows that in extreme cases it can increase the presence of free
riders. Few responses suggest that in this way presence of solidarity is inhibiting success, as
sometimes when people receive too much for free, they get accustomed to get things without
working.

Final analysis of solidarity
The presence of solidarity as collective action across groups and levels of hierarchy in El
Salinerito cooperatives is evident through the multiple initiatives described at the beginning
of this section. Its intensity varies accordingly to the group they are involved in, the
commitment they feel and depending on the motivation that leaders of their organisations
promote in the people, but it is more evident among mestizos groups and within them, among
women.
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Relationship between solidarity and performance of these cooperatives has become evident
through the analysis of indicators of individual performance, such as commitment, but also
through collective indicators, as assessing the relation among members/workers of these units
of production. Indeed, emphasis in this last dimension shows the importance of collective
action to increase efficiency and opportunities of success in these cooperatives.

The presence of solidarity as helping the needy has also been observed across different
groups and levels in the cooperatives that mobilises people for helping others in the same or
lower socio-economic status.
This solidarity through time has been shifting from a more informal way (helping the needy
in problems) towards a more institutionalised system that implies a solidarity of work, where
the management of capital and profits are pointing out the creation of new jobs for the new
generation, to avoid migration and to increase community welfare. This modern type of
solidarity has a new emphasis in sustainability of organisations, increasing opportunities for
success of the cooperatives.

4.2. Secondary values in El Salinerito cooperatives

Justice/Honesty
As justice and honesty has a similar meaning for respondents, I analyse them together. Both
concepts refer to neutrality and impartiality, stability and impersonality; but they have a
slightly different meaning when they are applied in different contexts. For daily performance
in the cooperatives, people refer to justice/honesty as doing the right/legal things, being
honest and reliable, not to harm anybody, living in the truth, and so on. But for distribution of
profits or for decision-making, these terms refer to distributing equally for everybody.

An analysis of the relationship between these values and all indicators of performance in the
cooperatives shows that there is a positive link are observed (see Matrix 1). First,
justice/honesty encourages willingness to work as people are motivated when they are treated
equally. Second, honesty increases accountability of the cooperatives, in terms of production
and sales. Third, when there is no justice, corruption starts in the cooperatives and the
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problems begin; avoiding corruption improves allocation of resources and savings. Fourth,
justice/honesty creates trust, a feeling of collective production, supportiveness and mutual
collaboration, elements that makes the whole organisation work, even with the presence of
inequalities.

Tolerance/Respect
Most of respondents see tolerance and respect are two complementary values with a similar
meaning, mainly related to being patient toward others with a polite attitude especially
towards seniors, and understanding diversity of opinion. In general, people seem to be very
little tolerant but very respectful, even much more than acting reciprocal and solidary. Data
collection evidences more respect as a kind of fear also toward people in higher position
and more tolerance as a kind of compassion toward people in lower levels. This pattern
also applies in the families, where younger respect the older, and women respect men in
terms of decision making. In this aspect literacy and formal education not necessarily imply
more respect from people of lower education.

The relationship between tolerance/respect and performance of the cooperatives has positive
and negative implications. In the positive side, the presence of these values have encouraged
willingness to work and participation, implied an open attitude to new ways of doing things
(innovation), motivated people to keep improving (correcting mistakes), and overcome minor
frictions with the authority. They can also avoid conflicts or diminish the intensity of them,
create trust, harmony, peace and positive feelings toward each other; and leads to consensus.
In this sense, these values are important due to the diversity of people in the cooperatives, and
hence they are closely related to networking, social capital and collective action, since
tolerance and respect reinforce them, smoothing collective processes in the communities.

The relationship between tolerance/respect and performance of the cooperatives shows some
negative features also. First, in few cooperatives, extreme tolerance has decreased the quality
of performance of some workers, and the prestige of the cooperative as a consequence.
Second, tolerance toward mismanagement has worsened breakdowns of some cooperatives,
delaying the process of decision making. Third, being extremely tolerant allows the presence
of free riders, and therefore, can discourage participation of other members, which can
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restrain economic growth of the cooperatives.

Final analysis of secondary values
The presence of justice/honesty and tolerance/respect in El Salinerito cooperatives has a
clear relationship with their performance, but probably more with negative implications in
cases of extreme application of them. Therefore, the key point with these is to warn about the
possibility of becoming extreme, aggravating current difficulties and reducing opportunity of
success in the cooperatives.

4.3. Hierarchies and structure of power

The structure of power and hierarchies are closely linked with the presence of cultural values
in relation to the performance of those units of production. This analysis follows the order of
Matrix 1, reading it in a horizontal way (by rows). Therefore, assessing links between cultural
values and individual performance, relationships between members/workers and the
authority, and collaboration among members/workers.

Individual performance of members/workers in this study was measured through
commitment, which has been applied in different degrees by people in different groups
(gender, race, and age) and also by different status, but anyway observed in different levels of
hierarchy in the cooperatives. But in general women, irrespective of the place they occupy in
the hierarchy, show a stronger and more permanent level of commitment.
In the cooperatives, the presence of commitment is related with all cultural values in this
study, but strongly linked with reciprocity and justice/honesty. But this relationship also has a
negative side in the case of tolerance/respect, where the extreme application of the value
implied a decrease in the quality of work.

In terms of the relationship between members/workers and the authority, some clear
tendencies are present in the cooperatives in terms of leadership and levels of authority. In
general, leaders/managers are indigenous and mestizos men (and very few mestizos women,
but never a manager of the cooperatives), mainly between 35 to 50 year old, with secondary
or higher education.
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This consistency of the hierarchy can be explained by some features of the people involved in
the cooperatives, related to the cultural values analysed in this study. First, obeying orders is
one of the most important values for some mestizos women. Second, up to 40% of
respondents stated they are always willing to follow instructions even if they disagree with
them. Third, a passive attitude toward new tasks is found in the cooperatives, with a great
difference by gender (80% and 71% of indigenous and mestizos women respectively stated
they will always wait for instructions before they start a new task, while57% of indigenous
men and 14% of mestizos ones will do so). This attitude toward new tasks suggests that men
start new challenges more often than women, a situation that perfectly corresponds with the
structure of power in Salinas, where men are in charge of duties outward of the family and
women inward of it.
Another finding is that members show a strong presence of values in their relation with the
authority (and people in higher position) when the values involve a kind of fear and/or are
reinforced by rules and regulations in the cooperatives; that is the case of reciprocity, justice
and respect. Meanwhile people show also a strong application of values toward people in
lower position (the disabled, the poor, the illiterate, and sometimes the women) when they
imply a content of charity and compassion, such as solidarity and tolerance.

Finally, the core of the analysis of the relation between cultural values and performance of
the cooperatives resides in the last indicator, namely collaboration among members/workers.
All values show a positive strong relationship, and in some cases also present a negative side.
This convergence of all values towards collective work becomes a key element of the success
of the cooperatives, as it gives coherence to the whole structure and system developed in
Salinas, strengthening their collective identity and reinforcing individual motivation towards
different initiatives.
Therefore, the structures of power where these links are developed also become very
important in the sense that sometimes they modify those links. Across all cultural values, this
structure basically follows two tendencies. First, there is a strong and constant collaboration
among members of similar and lower level (based on age, race, gender, education, social
position), but always on a reciprocal basis, that is giving as much as they receive from others.
Second, there are consistent attempts to reach consensus in decision making, with the
participation of all levels of the hierarchy, even if the decisions follow the suggestions given
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by the leaders.

4.4. Origin of these values

The presence of cultural values in El Salinerito cooperatives is explained as a result of the
combination of three main kinds of process, namely cultural identity, personal motivations,
and local capabilities.

In terms of cultural identity, even in different degrees, all cultural values analysed in this
study are a feature of their cultural identity, identified as Catholic Quichuas/mestizos
peasants. From these sources of origin, there is ample literature about Catholic attributes and
also about Quichuas culture, which coincide with the application of the values in these
cooperatives.

From a Quichua perspective, reciprocity has appeared through different strategies (like the
minga, for instance) since centuries ago, much before than Spanish and Inca conquest.
Solidarity has a long cultural tradition also, but basically in accidents and natural disasters.
Justice/honesty has permanently appeared in a very strict way, opposing the presence of
tolerance, which has not been observed in Quichua tradition.
But it is important to remark that these traditions of values have been developed in
combination with mestizos features, smoothing extreme application of values in some cases
(as justice), and changing the nature of them (as solidarity) in others.

From a Catholic perspective, these are cultural values that Catholic organisations (the
Church, FEPP) have been tried to apply in the cooperatives and Salinas, following principles
of the Social Doctrine of the Catholic Church. Solidarity and justice, for instance, are very
well known in the Catholic Church tradition and it is easy to find them in their literature.
Indeed, respondents identify the Salesian Mission and Father Polo within it as the main
promoter of all these values, through learning processes in Catholic groups (especially youth
groups) and in the different organisations of Salinas.

About the sphere of socialisation where people learnt to be reciprocal, solidary, just/honest
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and tolerant/respectful, the family is the main space declared in data collection. Majority of
respondents stated they learnt since they were kids, participating in collective structures,
where their efforts where needed for the survival of the whole system. With their efforts they
obtained immediate returns (food in the case of agricultural activities, social benefits and
money in the case of the cooperatives) or long term ones. But also people have started being
reciprocal, collaborative (as an expression of solidarity), just/honest and tolerant/respectful
since they were part of the cooperatives and the community, doing collective efforts as
mingas, and other activities where everybody help.
Indeed, family and agricultural work are two spheres that always appear together in rural
areas. In Salinas these have been the two main places of socialisation of cultural values, with
emphasis inside the family for women especially indigenous ones and with new forms of
work such as the cooperatives and sales, in the case of men. In this way, these values were
culturally reinforced, and established through hierarchies and roles existing in the
communities.

Most of the personal motivations that strengthen these cultural values in people in Salinas can
be explained understanding them as rational actors who calculate the cost-benefit of their
initiatives (Guillet 1979).
About reciprocity, for instance, it is easily understandable in a community where everybody
may face difficulties at any time, since those can be overcome through reciprocal strategies
(Sahlins 1972). It is also cheaper, faster, no bureaucratic, do not require the use of cash
(important in rural and especially poor communities, where access to cash is constrained to
travelling to the city), and strengthen social networks (Guillet 1979).
About solidarity and other values, there is a common sense of social responsibility, where
everybody knows everybodys situation and people feel responsible of the community.
Therefore they are willing to act solidary, just/honest, tolerant/respectful in their daily lives.
But the most important criteria for majority of people to act in this way is they are fostering
economic growth in the cooperatives to overcome poverty, a powerful motor that encourages
them to act reciprocal, solidary, just and tolerant.

Within local capabilities, analysis reveals three main features that promote these values in the
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cooperatives: the presence of an institutional structure with rules and regulations reinforcing
these values, and the influence of external stakeholders in this process.
First, the presence of an institutional structure is observed, where all values are promoted
through all organisations and people involved, through different levels of hierarchy, along the
roles that each person is in charge of as his/her individual gender, cultural, and religious
condition. Their rules and regulations are mechanisms of enforcing these values, establishing
fines (a fine of US$3 per meeting for non-attendance is charged) and punishments (extra
work, for instance), except in the case of tolerance, that is not evident in any regulation of the
cooperatives. Nevertheless, social coercion in not as effective as motivation, and sometimes
can imply more difficulties rather than increasing opportunities for success.
Second, in terms of the presence of external stakeholders, such as members of the FEPP,
Catholic Church (specifically Father Polo) and COSUDE (specifically Mr. Jos Dubach), a
direct link between them and these values is observed, also by previous researches of this
experience. They are models that people imitate, especially in the cooperatives, and they have
become informally responsible of promoting these cultural values among people. There are
other organisations and political/social leaders but they do not have a strong and direct
connection with the performance of the cooperatives, neither there are mentioned by any
respondent.

4.5. Conclusions

I answered my second research question through the analysis in this chapter. A relationship
between cultural values and performance of the cooperatives was clearly identified and its
features and extent is following illustrated.

The application of all values in El Salinerito cooperatives are based on reciprocity, which
means that people are willing to act solidary, just/honest and tolerant/respectful as much as
they see others doing the same. This finding makes reciprocity the key value of this study,
and assuring it in the cooperatives they are also assuring the permanence of other values
there, increasing possibilities of success.

Then, the presence of solidarity gives cohesion and a sense of unity to the complex
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organisational structure where El Salinerito cooperatives are built, becoming a key element
for their success. This unity and sense of community strengthen their cultural identity and
reinforces all cultural processes involved in this experience.
These two core values in the cooperatives are closely related in many ways. The main finding
is that traditional solidarity in people is shifting toward more reciprocal oriented
relationships, where they can assure any kind of return. Indeed, this movement has also been
encouraged through institutionalisation of traditional solidary initiatives becoming more
reciprocal as Social assistance fund and others.

Among structures of hierarchy, the presence of Father Polo and Mr. Dubach partially
explains the success of the cooperatives. Although both of them started a process of handing
over the management of the cooperatives to the communities the presence of paternalism is
still evident (as result of these hierarchies) in decision-making, structures and roles.
Therefore, there is a need of delegating more responsibilities in people and allowing them
(through collective activities) to take their own decisions.

Besides that, there are other cultural values involved in this experience and they also have an
important place in the performance of El Salinerito cooperatives, but due to time
constraints they have not been analysed in this paper. Constancy and loyalty are important
among them, and they deserve further research.

The presence of all these values have been identified as closely related to the performance of
the cooperatives mainly successful but it is important to remark that there are other factor
of success, analysed in previous studies. However, there are other similar cooperatives in
other provinces of the country that have not achieved the success of El Salinerito, but there
is no enough information to make them a control case for this study.

Finally, through the analysis of the presence of these values in the cooperatives, and their
relation with their performance, I am answering my second research question. Indeed, it is
evident the mainly positive but also negative relationships between cultural values and
performance of El Salinerito cooperatives, especially through reciprocity and solidarity,
core values in this study. This relationship has been analysed through indicators such as
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commitment and relations among members/workers and with the authority. Values relate to
each indicator in a different degree, depending also on roles and hierarchies existent in the
cooperatives and Salinas, but all values are linked positively with collaboration among
members/workers, which gives the strongest connection in this study.
48

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Chapter 5
Conclusions

This chapter is structured in two sections. Section one briefly assesses theories used in this
paper. Section two summarises the process developed through this research. It starts with the
research questions of this study, follows with a brief description of El Salinerito
cooperatives as the case study of this paper , continues with the main concepts and
theories used in this study, then answers the first research question through economic, social,
organisational and other indicators; and concludes answering the second research question
through a brief explanation of main findings.

5.1. Main findings

I developed my study in order to answer two research questions (Chapter 1).
1. How have El Salinerito cooperatives performed?
2. To what extent are cultural values related to the performance of these cooperatives?

El Salinerito cooperatives are an experience of local socio-economic development with a
Catholic Quichua/mestizo peasant framework in Salinas, a rural locality in the Andes
highlands of Ecuador. They started in 1978 opening the first cheese production cooperative,
and currently they are 20 cheese production cooperatives and more than 20 other small
enterprises in Salinas.

In order to develop this analysis, theories of cultural identity, cultural values (reciprocity,
solidarity, justice/honesty and tolerance/respect), ethnicity and associative enterprises were
used as framework for this study. But also concepts of social and cultural capital, networks,
and collective action were utilised (Chapter 2).

I collected primary data through application of qualitative surveys to members/workers of the
cooperatives, assessing the self-perception, perception and current application of values in the
cooperatives, and their relation with the performance. The sample is not statistically
representative but illustrate the main findings, which basically are related to respondents
data and not to the whole group of people in the cooperatives.
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The first research question, How have El Salinerito cooperatives performed? (Chapter 3),
assessed performance in economic, social, organisational and other terms. To do so, I built
my conclusions based on results of previous studies.
In economic terms, main results are creation of around 600 (direct and indirect) jobs,
redistribution of profits, increase of productivity, diversification of production and markets,
and improvement of quality of goods.
In social terms, definite return and arrest of migration towards urban areas, decrease of infant
mortality rate in a 76%, and a general improvement of living conditions are the main results
of performance of the cooperatives during the last two decades.
In organisational terms, efforts towards capacity building (improvement of managerial
capacity and ability to negotiate with local/central government), participation and
empowering of people, democratisation of decision making, and institutionalisation of
structures (creation of second grade organisations) are the main outcomes of this experience.
But there are also other results, which are not necessarily positive in this experience. Among
them, deforestation substantial in a rural context , inequities in distribution of profits,
changes in the diet of the people (more consumption of processed food), and others reveal
that not everything is working properly in the cooperatives.
Nevertheless, assessing positive and negative results I conclude that indeed El Salinerito
cooperatives have performed successfully, as previous researchers have stated in their
studies. Even if some changes can be made in order to improve their performance, social and
economic indicators evidence their success at individual and collective levels.

My second research question, To what extent are cultural values related to the performance
of the cooperatives? (Chapter 4) analysed the relationship between reciprocity, solidarity,
justice/honesty and tolerance/respect with performance of the cooperatives.

First, the whole experience in El Salinerito cooperatives shows great coherence between
cultural values, division of roles and hierarchical structures across different groups. Most of
external leaders of different organisations such as the Catholic Church, FUNORSAL,
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FEPP, COSUDE intentionally reinforce and/or have reinforced these values fostering
success of these enterprises, integrating social, economic, organisational and other factors in
the process. This cohesion strengthens their cultural identity through the application of their
values, and reinforces them.
All cultural values converge in a positive relation with collaboration among
members/workers as indicator of performance in these cooperatives, and this is the main
finding of this study. This convergence gives a sense of collectivity to them, strengthening
collective action and fostering social capital and networking, all elements of economic
success, and producing social trust. But if they become too cohesive can become also too
coercive, possibly pushing people out of the collectivity when their interests differ from the
majority.

Second, there are some positive links between these values and performance of the
cooperatives. Reciprocity and solidarity as core cultural values are clearly an important
part of peoples daily life in the cooperatives and in the communities; meanwhile the
secondary values justice/honesty and tolerance/respect are partially present depending on
the situation, gender/race/age groups and hierarchies.
Among those values, reciprocity is the most evident, persistent and related to the success of
the cooperatives, and it is found across all other values. Therefore, people act solidary,
just/honest, and tolerant/respectful in the extent that they receive solidarity, justice and
tolerance.
Meanwhile survey findings indicate that solidarity is the other core value that gives cohesion
to the cooperatives and makes them a unity, becoming a collectivity rather than a group of
individualities. This is important due to the discouraging economic conditions that they have
to face in terms of markets and resources. This condition is identified as collective action
(Helmsing 2000) and the system of pooling (Sahlins 1972).
Therefore, the successful alternative in this experience has not been a matter of being good, it
has been a proposal of a combined model of cooperatives and community enterprises, based
on a principle of solidary cooperativism. In this sense the individualism is not abandoned
but matured enough to become part of a collectivity, where each individualism is respected.
In this sense solidarity is not compassion or charity, but a mutual relationship where
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everybody is part of the process, a kind of solidary production and solidary property.
Through time, there is evidence that people are shifting from a solidary attitude towards a
more reciprocal one, and currently engaged in more formal/organisational strategies. For
instance, strategies for helping others when they are in problems, in the past have currently
taken the shape of a Social Assistance Fund, where individual support is based in reciprocity
rather than in solidarity. This implies a relation between people and organisations that in the
past was basically a relation among people.

Third, there are also negative relationships between application of these cultural values and
performance of these cooperatives, especially in terms of the presence of free riders,
decreasing quality of work, and delaying decision making. This is mostly observed in
secondary values rather than the core ones, and basically in extreme application of them,
tolerance and solidarity, for instance.

Fourth, in terms of the hierarchies and structure of power where these cultural values are
developed, values are applied toward authorities and people in higher positions when they
involve a kind of fear or if they are reinforced by rules and regulations in the cooperatives, as
reciprocity, justice and respect. They are mostly applied toward people in the same or lower
position when they imply a content of charity or compassion, as solidarity and tolerance.

Fifth, in terms of origin of these values in the people, three categories were identified, namely
cultural identity, personal motivations, and local capabilities. Even if in different degrees, all
cultural values analysed in this study have been observed as features of their cultural identity,
identified as Catholic Quichuas/mestizos peasants. Reciprocity, for instance, has traditionally
been present in Quichuas strategies since centuries ago, as is the case of mingas. Solidarity,
on the other hand, is traditionally present in Catholic literature, especially in a new dimension
that is called the social doctrine, based on a solidary way of life.
In terms of personal motivations, very often application of values in the cooperatives can be
explained by understanding people as rational actors (Guillet 1979), who take decisions based
on calculation of cost-benefit. Therefore, they perform those values based on the assumption
that they will assure economic growth, as a way of overcoming poverty and improving living
conditions, and therefore a main motivation to remain acting in this way and, moreover, to
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encourage and strengthen their application.
Within local capabilities, analysis reveals three main features that promote these values in the
cooperatives: the presence of an institutional structure with rules and regulations reinforcing
these values, and the influence of external stakeholders in this process. Almost all these
cultural values were observed in rules and regulations of the cooperatives, except tolerance. It
suggests that people would apply them to avoid punishments and sanctions. Sometimes this
has been a coercive but effective way of promoting those values. Also, the presence of
external stakeholders promoting these values (international donors and national NGOs) has
made people imitate them, becoming influent in this process.
Sixth, assessing sustainability of the cooperatives a positive and a negative side were
observed. The positive one is the finding that many of previously informal strategies fostering
any of these values except tolerance have been institutionalised through the organisations,
in their structure, principles and regulations. This can assure sustainability in some extent, as
far as people across levels of hierarchies foster them; otherwise they will remain only on
paper but not in real life.
But the negative side is that paternalism is still present in the cooperatives in the person of the
main leaders, especially the external ones, namely Father Polo, and the representatives of
FEPP, FUNORSAL, and some NGOs. The process of handing over the management of the
organisations to people from the communities is not finished yet, and can still take many
more years.
Consequently, while capitalist structures in majority of economic strategies developed all
over the world have produced wealth, it has gone to the elite and it has increased inequalities.
This experience in Salinas is developed in a collective logic, where even being part of the
capitalist system, their principles differ greatly from them. Therefore, this experience is a
good alternative in rural contexts with cultural diversity for overcoming poverty and
decreasing inequalities.

The summary of the main findings of my analysis briefly evidences the extent to which core
values mainly reciprocity and solidarity are linked with the performance of the
cooperatives. They are clearly linked in a positive but also a negative side. Positively mainly
focusing in collective action and networking. Negatively in extreme application of some
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values, with the presence of free riders, and delaying decision making. The presence of these
values was analysed as a result of peoples rational choice (to overcome poverty) but with a
basis of cultural identity as Quichuas and also as Catholic, in a peasant context.

5.2. Assessment of theories used in this paper

Main theories and concepts used in this study converge in cultural identity and associative
enterprises. The concept of cultural capital was used for the overall analysis of this
experience. After that, theories of social capital and networking were used in the analysis of
reciprocity and solidarity core values in this study in their relation with performance of the
cooperatives. The theory of exchange was mainly used assessing the presence of reciprocity,
meanwhile collective action was used examining the application of solidarity.

Cultural Capital

About Bourdieus theory, he has a European perspective where culture has the content of
cognitive category, the first cluster of meanings in cultural studies (Preston 1997), where
Bourdieu sees education as the main element of culture. In this sense, when applying this
theory in Latin American contexts, the concept of culture should be broadened up, and the
meaning should include elements of identity such as ethnicity, religion, gender, and race.
Doing so, the concept of culture would refer to the fourth cluster of meanings, where Jenks
sees culture as a way of life (Ibid.).

Exchange

Polanyis theory of exchange in primitive societies is useful for this paper, demonstrating that
it is valid not just in primitive societies but also in current ones, as in Salinas, where access to
markets and national economies evidence their modern conditions. However, two
contributions might be made to this theory.
First, when Polanyi refers to reciprocity he assumes it is a double sided relationship, and
reality is much more complex than that. Even if there is always one side giving and other side
taking, in Salinas this implies participation of multiple parties composing a whole system.
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This reciprocity is developed differently across all levels of hierarchy and depending on
gender/race/age features, and they imply not just people but also organisations.
Second, his concept of pooling here analysed as collective action, part of the analysis of
solidarity implies an element of centrality, which is also true in Salinas, but with a
clarification that there is no need of just one centre and many peripheries around it, but there
can be as indeed in Salinas it happens many centres being periphery of others, and hence
constituting a complex structure of power. This is easy to observe with the presence of the
cooperatives which are part of the FUNORSAL, which is part of the communities, and so on.

Social Capital and networking
In relation to theories of social capital
9
and networking
10
it can be said that they perfectly fit
the analysis of this experience. They rightly take into account elements for strengthening
these concepts, they mark differences across levels in hierarchy and status, and they point out
consequences in terms of organisational performance. All these are necessary elements for a
thorough analysis of those concepts. Nevertheless, in Latin American contexts analysis of
social capital and networking should also take into account differences across groups, dis-
aggregating analysis across gender, race, age, and so on. Hence it is not convenient to make
generalisations about them.

Collective action
Olsons and Hirschs theory of collective action rightly takes into account cultural values as
elements which give coherence to collective action, all of them analysed in this paper.
Unfortunately modern studies not very often take them into account, neither have studied
similar cases, as in Andean indigenous communities. Therefore, this paper constitutes a small
sample for understanding this theory in Andean peasant contexts, as a particular reality in
Latin America.
Additionally, following Helmsings approach towards collective action, El Salinerito
cooperatives constitute a good example of a small cluster. Basically they prove that clustering

9
For more readings of social capital see Dasgupta and Serageldin 2000, Bourdieu 1986, Ruben and Strien 1999,
Halpern 1998, Staveren 2000, and Goss 2001.
10
For more readings of networking see Bennett and McCoshan 1993, Helmsing 1999.
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and joining efforts among different stakeholders can overcome disadvantages in local levels,
and can foster economic development and growth.

5.3. Final conclusions
The presence of cultural values in El Salinerito cooperatives (mainly reciprocity and
solidarity) in a context of modern structures (cooperatives, enterprises and organisations) has
reached a balance between tradition and modernity, combining mainly the positive side of
each dimension, implying a successful experience of local development. These values seem
to be a combination of Quichua tradition with mestizos characteristic, led by Catholic leaders
in a peasant context.

Also the presence of solidarity and reciprocity may also be seen in a shifting process from
tradition towards modernity, where reciprocity encourages modern expression of economic
exchange and solidarity gives cohesion to the collective goals.

Moreover, all these values, the main stakeholders and the structure of power where this
experience is developed converge to similar collective goals, giving coherence to the system,
reinforcing values and increasing possibilities of success.

The relative harmony of all these diverse parties and hierarchies in Salinas, which were
antagonistic in the past, claims that success is possible when all actors are willing to work
together for collective goals. In Salinas they did it and they reached some welfare, starting a
path to overcome poverty in the long term. The utopia of a new society is possible!
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Structuralism, in Social theory and the politics of identity. Cambridge: Blackwell publishers.
Pp. 198-215.
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Annex 1
Encuesta para miembros de las cooperativas El Salinerito
(Survey to members/workers of El Salinerito cooperatives)

Nombre: ______________________________________________________________________________
Sexo: F [__] M [__] Edad: _________ Domicilio: _______________________________________
Estado Civil Soltero/a [__] Casado/a [__] Unido/a [__]
Tiene hijos/as? S [__] No [__]
Raza:
Usted se considera mestizo/a o indgena? M [___] I [__] No sabe [__]
Si contesta indgena
A qu etnia pertenece Quichua [__] Otra [__]_____________________
Percepcin de la entrevistadora M [__] I [__] No sabe [__]
Porque ________________________________________________________________________________
Habla usted algn otro idioma adems del espaol? ____________________________________________
Cul fue su ltimo estudio? Primaria [__] Secundaria [__] Universidad [__] Otro[__]
Especificar cul, an cuando sea informal o slo tcnico ________________________________________
Usted practica alguna religin? S [__] No [__] ____________________________

Informacin de la cooperativa
Nombre de la cooperativa ___________________________________________
Ubicacin ___________________________________________
Relacin con la cooperativa Trabajador/a [__] Miembro [__] Otra[__]
Desde hace ___________________________________________

Su opinin sobre algunos valores culturales
1. Qu significa para usted ser una persona trabajadora? No sabe [__]
______________________________________________________________________________________
2. Qu significa para usted ser justo/a? No sabe [__]
______________________________________________________________________________________
3. Qu significa para usted ser tolerante y respetuoso/a? No sabe [__]
______________________________________________________________________________________
4. Qu significa para usted ser solidario/a? No sabe [__]
_____________________________________________________________________________________
5. Se considera usted una persona trabajadora? Mucho[__] Poco[__] Nada [__] N.s.[__]
justo/a Mucho [__] Poco [__] Nada [__] No sabe [__]
tolerante Mucho [__] Poco [__] Nada [__] No sabe [__]
solidario/a Mucho [__] Poco [__] Nada [__] No sabe [__]
responsible en su trabajo Mucho [__] Poco [__] Nada [__] No sabe [__]
colaborador/a con otros/as Mucho [__] Poco [__] Nada [__] No sabe [__]
capaz de cumplir con su trabajo Mucho [__] Poco [__] Nada [__] No sabe [__]
capaz de resolver problemas Mucho [__] Poco [__] Nada [__] No sabe [__]
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capaz de seguir instrucciones Mucho [__] Poco [__] Nada [__] No sabe [__]
6. Desde cundo y cmo aprendi a ser una persona trabajadora? No sabe [__]
______________________________________________________________________________________
7. Desde cundo y cmo aprendi a ser una persona justa? No sabe [__]
______________________________________________________________________________________
8. Desde cundo y cmo aprendi a ser tolerante? No sabe [__]
______________________________________________________________________________________
9. Desde cundo y cmo aprendi a ser solidario/a? No sabe [__]
______________________________________________________________________________________
10. Desde cundo y cmo aprendi a ser responsible con su trabajo? No sabe [__]
______________________________________________________________________________________
11. Desde cundo y cmo aprendi a ser colaborador/a con otros/as? No sabe [__]
______________________________________________________________________________________
12. Desde cundo y cmo aprendi a resolver problemas? No sabe [__]
______________________________________________________________________________________
13. Cree usted que el ser una persona trabajadora influye en el xito de la cooperativa?
Influye mucho [__] Influye poco [__] No influye [__] No sabe [__]
Ayuda al xito [__] Ni ayuda ni molesta [__] Dificulta el xito [__] No sabe [__]
Influye a largo plazo [__] Influye a mediano plazo [__] Influye enseguida [___] No sabe [___]
Porque ______________________________________________________________________________________________
14. Cree usted que el ser justo/a influye en el xito de la cooperativa?
Influye mucho [__] Influye poco [__] No influye [__] No sabe [__]
Ayuda al xito [__] Ni ayuda ni molesta [__] Dificulta el xito [__] No sabe [__]
Influye a largo plazo [__] Influye a mediano plazo [__] Influye enseguida [___] No sabe [___]
Porque ______________________________________________________________________________________________
15. Cree usted que el ser tolerante y respetuoso/a influye en el xito de la cooperativa?
Influye mucho [__] Influye poco [__] No influye [__] No sabe [__]
Ayuda al xito [__] Ni ayuda ni molesta [__] Dificulta el xito [__] No sabe [__]
Influye a largo plazo [__] Influye a mediano plazo [__] Influye enseguida [___] No sabe [___]
Porque ______________________________________________________________________________________________
16. Cree usted que el ser solidario/a influye en el xito de la cooperativa?
Influye mucho [__] Influye poco [__] No influye [__] No sabe [__]
Ayuda al xito [__] Ni ayuda ni molesta [__] Dificulta el xito [__] No sabe [__]
Influye a largo plazo [__] Influye a mediano plazo [__] Influye enseguida [___] No sabe [___]
Porque ______________________________________________________________________________________________
17. Ha visto usted cualquiera de estos valores en su cooperativa?
S [__] No mucho [__] No [__] No sabe [__]
Cmo o cundo?_______________________________________________________________________________________
18. Ha visto usted cualquiera de estos valores en su comunidad?
S [__] No mucho [__] No [__] No sabe [__]
Cmo o cundo? Especialmente estrategias coletivas, solidarias.
__________________________________________________________________________________
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Algunas preguntas sobre su trabajo en la cooperativa
19. Cuando le encargan una tarea, usted la cumple hasta el fin. Siempre[_] A veces[_] Nunca [_]
20. Usted llega temprano a su trabajo Siempre [_] A veces[_] Nunca [_]
21. Si tiene que trabajar ms horas para terminar una tarea, usted espera al da siguiente para hacerlo, pues
siempre hay trabajos pendientes. Siempre [_] A veces[_] Nunca [_]
22. Si no sabe cmo hacer algo que le han pedido, usted busca la forma de aprender y cumplir con su
trabajo. Siempre [_] A veces[_] Nunca[_]
23. Si tiene que realizar una tarea nueva, usted espera que alguien ms le explique.
Siempre [_] A veces[_] Nunca [_]
24. Si le piden que cumpla una orden, usted la cumple aunque no est de acuerdo con ella.
Siempre [_] A veces [_] Nunca [_]
25. Cuando se tiene que tomar una decisin en equipo, usted trata de convencer a los/as dems sobre su
punto de vista. Siempre [_] A veces [_] Nunca [_]
26. Cuando alguien necesita su ayuda, usted siempre se la da. Siempre [_] A veces [_] Nunca [_]
27. Si usted necesita ayuda, espera que otro/as se la ofrezcan. Siempre [_] A veces [_] Nunca [_]
28. Usted considera que hay una sola forma de hacer las cosas y todo/as deben hacerlo de esa manera.
Siempre [_] A veces[_] Nunca [_]
29. En el trabajo no se pueden cometer errores. De acuerdo[__] A veces[_] En desacuerdo[_]
30. Si usted se equivoca, corrige el error para que no se den cuenta.
Siempre [_] A veces [_] Nunca [_]
31. Lo que ms le gusta de su trabajo es _____________________________________________________
__________________________________________________________________________________
32. Lo que ms le preocupa de su trabajo es __________________________________________________
__________________________________________________________________________________
33. Los valores ms importantes en su trabajo son_____________________________________________
__________________________________________________________________________________
34. Los valores ms importantes en su vida son_______________________________________________
__________________________________________________________________________________
35. Los valores ms importantes dentro de la Comunidad son____________________________________
__________________________________________________________________________________

!Muchas gracias por su colaboracin!

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