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Spanish Civil War: Article Analysis

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In this article, Robert Gilman discusses a phenomenon that emerged in the Basque region of Spain in the years following the Spanish Civil War. Specifically, he refers to the innovation of the Mondragón Industrial Cooperatives. In this region, there has been significant social innovation which, according to Gilman, renders “Capitalism, Communism, Socialism, and all the squabbles between these ‘isms’, crude, irrelevant and obsolete” (Gilman, 1983). He compares the rest of the world (in the context of 1983) to Mondragón as if Mondragón had discovered a life-changing technology and the rest of the world is still years behind.
The roots of this social innovation trace back to 1941, when Father Jose Maria Arizmendi moved to Mondragón, having been …show more content…
After the Spanish Civil War had laid waste to the economy and the Basques found themselves under an oppressive government, the Mondragón movement seemed to have sprung organically from this climate. The Basques were able to repair their economy and their community in such a way that their suspicious government would not feel vulnerable to their innovations (Gilman, 1983). Gilman also acknowledges that at this point, it is not clear whether or not the model of the Mondragón movement would be possible in another society with a less unified social configuration.
The following are the key points of the Mondragón cooperatives’ governance structure: Only employees are allowed to be members—each with one vote toward the Board of Directors, voting for the board and the “Watchdog Council” are democratic as well, members must contribute by way of a $5000 investment, they maintain a salary ratio of 4.5 to 1, and only a portion of the workers’ earnings are paid out—the remainder goes into “internal capital accounts” which are only accessible during retirement (Gilman, …show more content…
In the Mondragón Group, members are able to save their equity into a fund for their retirement which earns interest, but will not affect voting rights or profit. In Gilman’s view, this is what makes this situation different from organizational shifts in the United States in the 1980s. They have also created a sort of coalition which can self-sustain by way of services provided by second level cooperatives; i.e. heavy industry, light industry, agriculture, retail distribution, finance, housing, education, and research (Gilman,

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