It could hardly be otherwise, given that it is such a highly profitable business. When coca paste leaves Peru, it is worth US$400 per kilo; it then reaches Colombia, where it is processed and becomes cocaine, valued at US$1,200 per kilo; in Miami, the same amount is sold for US$20,000, and is transported to Chicago, where it fetches US$30,000 wholesale and is sold to individuals for approximately US$140,000 per kilo. Figures for heroin are even more fabulous; its sale is four times more profitable. This being so, one might spray Colombia all over, from the Amazon to the Andes, with every kind of chemical or fungus available, and the effect would be precisely the same: the drug phenomenon will continue to thrive. Meanwhile, this phenomenon is rapidly becoming a tremendous catalyst for a kind of rebellion, one which is brewing amongst those who have traditionally been excluded from Colombia’s society. It may not constitute a genuine revolution, but could well explode in an amorphous, uncontrollable uprising by the dispossessed. Since its launch in 2009, Evergreen Co-operative Corporation, a network of worker-owned co-operatives in Cleveland Ohio, has magnetized media, political elite, and academic attention. Evergreen has garnered supportive coverage in the Economist, Harper’s, The Nation, The New York Times, Fast Company, Time, and Business Week. Sarah Raskin lauded the initiative in 2013 while she was serving on the Board of Governors for the Federal Reserve System .Ron Sims, then Deputy Secretary for the U.S. Department of Housing and Urban Development, referred to the Evergreen network as “brilliant” during a 2011 interview .
Intellectuals on the Left have also been attracted to the initiative: Noam Chomsky has celebrated Evergreen in interviews and public talks,ebb and flow bench and the initiative has been cited by numerous academics as a hopeful alternative to the capitalist firm and its social and environmental externalities . Evergreen is currently comprised of three worker-owned co-operative enterprises: Evergreen Laundry , Evergreen Energy Solutions , and Green City Growers . Evergreen was designed to capture procurement flows from area “anchor” institutions: large hospitals and universities that are unlikely to leave the community, have a general commitment to improving it, and can do so by leveraging their purchasing power in support of local economic development . While Evergreen currently employs approximately 120 people, the vision is that it will become a large network of worker co-operatives that can rejuvenate the depressed regional economy in Cuyahoga County and inspire replications in other regions across the United States. Evergreen’s key features are ensuring worker ownership, harnessing the local wealth of anchor institutions, and prioritizing sustainable service delivery.Supporters refer to Evergreen as the “Cleveland Model,” an approach that can be pursued in communities across the country . According to leaders with Evergreen, “What’s especially promising about the Cleveland model is that it could be applied in hard-hit industries and working-class communities around the nation” . Despite all of the attention, the Evergreen case has not yet been studied in a sustained way. Furthermore, there is a dearth of literature on co-operative development in general . With this article we aim to contribute to the collective learning that can happen from successful and failed co-op development experiments. Building this knowledge is especially important at a time when heightened contestation over neoliberal capitalism has intensified interest in the co-operative model . Our primary finding is that Evergreen’s development depended on contextual factors that might not be replicable: a supportive and wealthy community foundation and champions within local government.
The post-2008 period of contested neoliberalism in which Evergreen emerged created opportunities for new alliances, as diverse actors were willing to consider alternative economic models. These alliances were critical to Evergreen’s emergence, but similar connections might not be available elsewhere. The fact that Evergreen’s start-up relied so heavily on context-specific private and ad hoc arrangements suggests that moresystematic, government-supported programs of financing and technical support are needed if worker co-operatives are to thrive in North America. We conclude that bottom up, movement-driven action often precedes – and creates a climate for – policy change. Our analysis therefore falls within the social movement approach to co-operative development, which argues that robust popular movements are integral to successful development of co-operatives and often predicate policy breakthroughs . While Evergreen’s replicability may be limited, its social movement orientation and ambition to scale up the co-operative alternative to neoliberal capitalism position it as a contributor to the important project of movement building that can facilitate the policy change needed to grow the co-operative economy. To contextualize our case study we conducted an extensive literature review on co operative policy, focused specifically on co-op dense regions . Our research team then visited Cleveland in May 2013. We did site visits to Green City Growers and Evergreen Laundry, interviewing management and speaking with employees at each location. We also conducted semi-structured interviews with key actors involved in the conception and implementation of the project. We sought from the outset to make our findings relevant not only to academics, but also to practitioners in the co-operative movement.We thus undertook this project as a form of “movement-relevant” research . According to Bevington and Dixon, movement-relevant research “emerges out of a dynamic and reciprocal engagement with the movements themselves.
This engagement not only informs the scholarship but also provides … accountability” . Our research team would like to see Evergreen and the co-operative movement in general thrive, and this article is an effort to understand the conditions that might enable this success. We believe, following Bevington and Dixon, that this commitment to the co-operative movement does not lead to bias, but instead adds incentive to provide the “best possible information” to movement participants and supporters. Interest in the “Cleveland Model” has cut across the political spectrum, coming not only from progressive media and academics on the Left, but also from conservative venues like the Economist and the Federal Reserve Board. Evergreen emerged one yearafter the 2008 financial crisis, during heightened contestation over the philosophy and policy mix that has guided political economic affairs for the past forty years: neoliberalism. Neoliberalism involves a significant reduction in the state’s social and environmental welfare role coupled with an expansion in the state’s facilitation of private capital accumulation . While neoliberalism has been consistently challenged since it arose in the late 1970s,strawberry pots contestation became mainstream after 2008, as the financial crisis raised questions about the viability of under-regulated financial markets and the growing inequality that helped fuel increased consumer reliance on credit . During this period, too, climate change moved into the mainstream of political debate: in 2007 Al Gore’s film An Inconvenient Truth won an Academy Award, and Gore shared the Nobel Peace Prize with the Intergovernmental Panel on Climate Change. As Gore himself articulates, neoliberal philosophy and policy has been a significant impediment to strong government action on climate change . This more mainstream contestation of neoliberalism – fuelled by economic crisis, rising inequality, and climate change – has not facilitated the emergence of broadly accepted alternatives, leading some critics to worry about a “zombie neoliberalism” that will not die . While the post-2008 period of contestation has not enabled a consensus solution to neoliberal capitalism’s contradictions, it has powered the search for alternatives . Ideological perspective necessarily conditions the kinds of solutions different actors seek and support. American political elites like Sarah Raskin and Ron Sims, for example, are interested in innovative ways of addressing inequality and ecological strain that leave in place the fundamentals of capitalism . Radical critics like Chomsky are interested in systemic alternatives to not only neoliberalism but also capitalism itself . Co-operatives, Evergreen founders note, provide alternative economic models that “cut across ideological lines – especially at the local level, where practicality, not rhetoric, is what counts in distressed communities” . Evergreen, then, is an ideologically flexible initiative: an innovative market-based poverty alleviation strategy or the germ of capitalism’s successor, depending on one’s point of view. While Evergreen has benefitted from the surge of interest in economic alternatives post-2008, the whole co-operative movement is experiencing resurgence. The General Assembly of the United Nations declared 2012 the International Year of Co-operatives. The International Co-operative Alliance , an organization representing the global co-operative movement, recently reflected that “rarely has the argument in favor of co operatives looked stronger”.
Co-ops can be read as either an ethical supplement to neoliberal capitalism, one that evens out its contradictions in distressed communities, or they can be read as the basis for a systemic alternative. Leaders of the Cleveland Model explicitly subscribe to the latter, more radical view, even as they strategically benefit from the former. Evergreen is modeled after the Mondragon Cooperative Corporation in Spain, which has long been a model for large-scale co-operative development worldwide. Founded in 1956, MC is now a conglomerate including 110 worker co-operatives, and employing more than 80,000 workers . Mondragon does business in manufacturing, retail, finance, and knowledge . As a worker owned co-operative system, Mondragon has several features that distinguish it from traditional capitalist firms: for example, a pay cap specifies that top earners with MC can only earn six times the pay of those in the bottom bracket . By comparison, CEOs for US corporations regularly make 400 times an average worker’s salary – a rate that has increased twenty fold since 1965 . Mondragon is one of the largest employers in the Basque region of Spain where it is centered . The Mondragon model is not without its challenges, including the recent bankruptcy of Fagor, one of its larger companies , but it remains an example of how co-operatives can operate on a large scale, produce considerable wealth, share it equitably, and promote relative worker satisfaction. As such, Mondragon is a longstanding inspiration for movements and intellectuals interested in alternatives to the capitalist firm and economy . Replicating Mondragon’s successes, however, is no easy task. The region’s political culture is an enabling factor: Basque country is home to a robust nationalist and separatist movement, and considerable associational energy is generated from feelings of marginalization at the hands of a dominant majority .Political culture supportive of co-operative development is not easily replicated, a fact that limits the ability of the co-operative movement to transplant successes from one region to another . Evergreen has generated popular and movement excitement partly because it appears to have successfully adapted the Mondragon model for North America. Northeast Ohio is not home to a political culture distinctively supportive of co-operatives. As Ted Howard, one of Evergreen’s leaders, told us, “Some people think there must have been something about the Cleveland community that would welcome this co-operative development, but it was a foreign concept” . As we learned, however, key supports were available in Cleveland – mainly a wealthy community foundation and champions in local government – that might not exist in other North American communities.Cleveland is still struggling to recover from the economic decline that began in the late 1960s. Once the fifth-largest city in the US and a center for manufacturing, Cleveland was hit hard by forces of economic globalization and the deindustrialization they brought. Plant closures, unemployment, and out-migration contributed to a depressed urban economy. Between 1970 and 1980, the city lost 24 percent of its population, one of the steepest drops in US urban history . Those who left generally had the means to do so, “with the poor, elderly, structurally unemployed, or marginally unemployed remaining behind” . White flight, the large-scale migration of whites from racially mixed urban neighborhoods to more suburban regions, was also a factor in the hollowing out of Cleveland . In the 1990s Cleveland began to slowly recover economically, and the city is currently a hub for health care services, biotech, and polymer manufacturing . The two largest employers in the region are the Cleveland Clinic and University Hospitals, together employing 46,000 people . Both institutions are located in the Greater University Circle , an area four miles east of downtown that is also home to Case Western University, the Cleveland Museum of Art, and the Museum of Contemporary Art.