Spanish
Cooperatives have historically been a key driver for the economic and social development of the Dominican Republic. Their impact on financial inclusion, job creation, and the strengthening of communities is undeniable. However, the legal framework governing the cooperative sector in the country has lagged behind the current challenges and new economic dynamics. The modification of the Cooperative Law (127 – 64) is urgent to ensure a modern, equitable regulation adapted to the needs of the 21st century.
A Development Model with Social Impact
Cooperatives are not just economic entities; they are democratic structures that promote equity, the fair distribution of wealth, and citizen participation in the economy. In a country where a large part of the population still faces barriers to access to financial services and development opportunities, cooperativism is a financial instrument for a viable alternative for poverty reduction and the promotion of social welfare.
However, the current regulatory framework, based on Law 127-64, does not respond to contemporary challenges nor effectively protect the interests of the partners and the communities that depend on cooperatives. The lack of effective supervision, the absence of adequate tax incentives, and limitations in internal governance have created gaps that hinder the growth and sustainability of the sector.
Modernization and Transparency: Keys to the Future
A new Cooperative Law should focus on the modernization of the sector, establishing clear mechanisms for supervision and control that guarantee transparency and good governance in cooperatives. In addition, the implementation of tax and financial incentives would allow strengthening the investment and expansion capacity of cooperatives, ensuring their competitiveness in an increasingly demanding market. Digitalization and the adoption of technologies in cooperative management should also be promoted within the new legal framework, allowing for a more agile and secure administration.
Greater Interference in National Economic Development
Dominican cooperativism has the potential to become a key player in the national economy, impacting strategic sectors such as agriculture, community tourism, education, and renewable energies. Updated legislation would allow cooperatives greater access to financing, facilitating the execution of projects that promote entrepreneurship and innovation in vulnerable communities.
Likewise, it is imperative that the new law incentivize cooperative education from the basic levels, promoting a culture of association and solidarity in Dominican society. Financial education and training in cooperative management should be essential pillars within the new regulatory framework, ensuring that both members and leaders have the necessary tools for efficient and responsible administration.
A Social and Economic Commitment That Cannot Be Postponed
The country faces the challenge of reforming a model that has proven successful, but needs to be adapted to current demands. A new Cooperative Law would not only strengthen the sector's institutional framework, but would also promote more equitable and sustainable development. The commitment of the State, legislators, and civil society is fundamental to ensure that cooperativism continues to be an effective path to inclusion and growth in the Dominican Republic.
The modernization of a sector that has demonstrated its positive impact on the economy and the social fabric of the country can no longer be postponed. It is time for a real transformation, which provides cooperatives with the legal framework they need to continue contributing to the progress of the nation.
