About Mexico

Historical Background

Mexico’s cooperative movement dates back to the 1870s, with the establishment of a cooperative for the production and sale of hats in 1872. Despite early challenges—including limited organization, market competition, and political interference—cooperatives gained momentum during the Mexican Revolution. However, they often became adjuncts to the labor movement, limiting their autonomy .coops4dev.coop

In the 1980s, housing cooperatives emerged more prominently, particularly in Mexico City. The Cooperativa Palo Alto, founded during this period, exemplifies the model’s potential. Established on the city’s outskirts, it provided affordable housing through principles of solidarity, mutual aid, and self-management. Over time, urban expansion transformed its surroundings into a high-value district, leading to internal debates over maintaining collective ownership versus privatization.

Legal Framework

Mexico’s cooperative housing sector operates under the General Law of Cooperative Societies. However, this legislation is often criticized for its generality and lack of specificity regarding housing cooperatives. The law does not adequately address the unique needs of housing co-ops, such as land acquisition, financing, and long-term sustainability. This legal ambiguity isn’t helping the development and operation of housing cooperatives.

Characteristics of Cooperative Housing

Housing cooperatives in Mexico are typically characterized by:

• Collective Ownership: Members jointly own the property, fostering a sense of community and shared responsibility.

• Democratic Governance: Decisions are made collectively, with each member having an equal vote.

• Non-Profit Orientation: The primary goal is to provide affordable housing, not to generate profit.

• Self-Management: Members are actively involved in the management and maintenance of their housing.

These characteristics align with the principles of the social economy, emphasizing solidarity, mutual aid, and community empowerment.

Financing Mechanisms

Financing for housing cooperatives in Mexico is often challenging due to limited access to credit and subsidies. Cooperatives typically rely on:

• Member Contributions: Initial capital is raised through member savings and contributions.

• Government Programs: Some cooperatives access funding through programs like the National Fund for Popular Housing (FONHAPO), although such support has diminished over time.urbamonde.org

• NGO Support: Non-governmental organizations may provide technical assistance, training, and limited financial support.

The reduction in state support since the 1990s has made it increasingly difficult for new housing cooperatives to form and sustain themselves.

The Cooperative Housing Movement Today

Despite legal and financial challenges, the cooperative housing movement in Mexico persists, particularly in urban areas like Mexico City. Cooperatives serve as alternatives to market-driven housing, offering affordable options and fostering community engagement. They also act as forms of resistance against gentrification and displacement.

However, the movement faces internal and external pressures. Internally, debates over property rights and the temptation to privatize can create divisions. Externally, rising land values and inadequate legal protections threaten the sustainability of cooperative housing models.

Read our news article on Palo Alto Housing Co-operative here.

Resources Tagged "Mexico"

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