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68 CHAPTER 5 Figure 5.1 Participatory decisionmaking


Density of cooperatives 70


All decisions


50 60


40


30 20 10


0 0 10 20 30 40 50 60 Percentage of decisions


Source: Authors’ calculations based on data from ESCS (2005). Note:


Density distribution of cooperatives is calculated according to the percentage of decisions taken by the general assembly.


Trade-Offs?


We now investigate the relationship among membership, governance, and per- formance. The results are reported in Table 5.5. The results do not account for likely endogeneity biases and should therefore be interpreted only as correla- tions. Nevertheless, they are useful in pinpointing eventual trade-offs relevant for future, and more robust, analysis.


In column (4), we also introduce proxies for the quality of cooperative management with two additional variables: share of committee members who can read and the maximum level of education among committee members. The estimated parameters for these proxies are not significant, but the param- eters estimated for our original set of variables remain robust. Overall, these results clearly show some trade-off between two objectives: (1) the extent to which a cooperative can open its membership (and allow more heterogeneity) or give voice to its members through participatory decisionmaking and (2) the extent to which it can maintain a minimum performance level in its economic activities.


70 80 90 100


General decisions only Technical decisions only


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