In the Official Gazette’s Issue 16 published yesterday, Lebanon’s General Directorate of Cooperatives dissolved 21 cooperatives, claiming they were inactive for several years.

This follows an ongoing trend. Over a decade ago, Lebanon had 1,400 active co-ops. There are only 875 left today. The Directorate of Cooperatives dissolved 166 co-ops so far this year. Why is this important?

Unlike for-profit firms owned by shareholders and run by boards of directors, cooperatives are enterprises owned and managed democratically by the workers themselves - at least ideally.

In Lebanon’s unprecedented socioeconomic collapse, finding alternative forms of economic organizing is crucial. One example, highlighted by @ayman_makarem’s 2-part essay, is mutual aid networks to ensure solidarity. https://thepublicsource.org/charity-mutual-aid

Another alternative is co-ops, which benefit from tax exemptions and are entitled to receive grants. Yet, they have long been neglected, under-resourced, and constrained by the state and ruling class. @ayman_makarem also explores this in his series. https://thepublicsource.org/charity-mutual-aid-2

Outdated Lebanese laws from the 1960s limit the growth of co-ops and may restrict membership, while the General Directorate of Cooperatives (which oversees and supports co-ops) is poorly funded and under staffed.

In 2017, the General Directorate of Cooperatives was allocated over 4 billion Liras (~$US 2.6 million at the official rate) in the State Budget, and shrank to 2.3 billion (~$US 1.5 million at the official rate) in 2020.

Recently, a report by @Think_triangle highlighted how the political class is taking advantage of co-ops, indirectly running them as for-profit commercial enterprises while unfairly benefiting from tax breaks entitled to co-ops. https://www.thinktriangle.net/get-in-gear-unleashing-the-potential-of-lebanese-cooperatives

Lebanon’s co-ops are in poor shape: many have been inactive for years, ending up  liquidated by the General Directorate, while those that remain are either dependent on donor funding and grants or are exploited by political groups to entrench the sectarian patronage system.

But are all cooperatives doomed to fail in Lebanon? Not necessarily. Stay tuned for our report on a new and unexpected co-op success story, out soon!