Mondragon

A federated cooperative corporation based in the Basque Country of Spain, and one of the most successful large-scale cooperative enterprises in history. Founded in 1956 as a training and educational program under Francisco Franco’s fascist government, Mondragon grew from operating “in the cracks and crevices” of the existing system into a major economic force that now shapes regional policy.

Sara Horowitz and Michel Bauwens both reference Mondragon as an exemplary case of how mutualist and cooperative institutions can grow from small, precarious beginnings into political-economic juggernauts. The key lesson: start with the patchwork of groups, find what they need, let them grow, and eventually they can dictate policy rather than just evade it. Mondragon is also cited as evidence that appropriate capital markets for cooperative enterprises (present in Spain and Italy) are a precondition for this kind of growth.

Referenced in: Ep 3