Positive difference found for co-op members in Central America

Compared to non-members, cooperative members in Central America earn more, enjoy a greater sense of well-being and optimism for the future, and are less likely to migrate.

A new study has found that cooperative members in Central America are better off economically, have more social capital and are less likely to migrate from their communities than their non-co-op member counterparts.

The research was commissioned by the International Cooperative Research Group (ICRG), the learning arm of the U.S. Overseas Cooperative Development Council (OCDC). The study, What Difference Do Cooperatives Make in Central America? examined the impact of cooperative membership on the lives of members in Honduras, El Salvador and Guatemala.

Co-op members were found to have significantly higher incomes than non-co-op members in all three countries. Honduran members' income was found to be, on average, 63 percent higher; El Salvadorians' 47 percent higher; and Guatemalans' 37 percent higher.

For women in Honduras and El Salvador, this difference is even more pronounced, with female co-op members in these countries earning on average 72 percent and 58 percent more, respectively.

For women in Honduras and El Salvador, this difference is even more pronounced, with female co-op members in these countries earning on average 72 percent and 58 percent more, respectively.

Young co-op members also have higher incomes than their counterparts. Those aged 18-34 in El Salvador made 74 percent more than comparable non-members, while those in Honduras earned 58 percent more.

The study also looked at the social benefits of being in a co-op, finding that members across all three countries reported a greater sense of well-being and optimism for the future than non-members. Guatemala reported the highest percentage of members with a "very good" sense of well-being at 54 percent, compared with 44 percent of non-members; followed by Honduras with 53 percent compared with 34 percent; and El Salvador with 44 percent compared with 38 percent.

Co-op members were also more than 10 percent more likely to want to stay in their communities than the comparison group of non-members.

The report includes testimonials from co-op members living in Central America, including Ada Lilian Pérez, president of the Kakawira Beekeepers Co-operative Association in El Salvador.

"Being a cooperative member has been incredibly beneficial for me," Pérez said.

"I was able to build a small house, and through my work, I've provided my daughter with an education. I've also inspired other women to join the cooperative and improve their economic standing," she added.

The report's authors state that the study's findings show that "investing in cooperatives is an investment in people," as well as in "building a more hopeful and prosperous future for all." The report also suggests that cooperatives offer solutions to the root causes of migration.

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