Reactions
Scholars such as Richard D. Wolff, American professor of economics, have hailed the Mondragon set of enterprises, including the good wages it provides for employees, the empowerment of ordinary workers in decision making, and the measure of equality for female workers, as a major success and have cited it as a working model of an alternative to the capitalist mode of production.
Linguist and activist Noam Chomsky has said that while it offers an alternative to capitalism, it is still embedded in a capitalist system which limits Mondragon's decisions:
| “ | Take the most advanced case: Mondragon. It’s worker owned, it’s not worker managed, although the management does come from the workforce often, but it’s in a market system and they still exploit workers in South America, and they do things that are harmful to the society as a whole and they have no choice. If you’re in a system where you must make profit in order to survive.... | ” |
The Mondragon system is one of four case studies analyzed in Capital and the Debt Trap, which summarized evidence claiming that cooperatives tend to last longer and are less susceptible to perverse incentives and other problems of organizational governance than more traditionally managed organization.
Read more about this topic: Mondragon Corporation
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