UNIVERSITY OF EL SALVADOR

FACULTY OF LAW AND SOCIAL SCIENCES

SCHOOL OF LEGAL SCIENCES

GRADUATION SEMINAR IN LEGAL SCIENCES YEAR 2011

STUDY PLAN 1993

THE RIGHT TO ACCESS DECENT HOUSING IN EL SALVADOR.

SOLUTIONS THROUGH HOUSING COOPERATIVES

RESEARCH WORK TO OBTAIN THE DEGREE OF:

Bachelor's degree in Legal Sciences

PRESENTED BY:
BONILLA DE PLATERO, CELIA ARMIDA
Jenny Jamileth Diaz Huezo
POCASANGRE GONZALEZ, LORENA GUADALUPE

SEMINAR DIRECTOR TEACHER

MASTER MARIA ESTHER RIVERA

UNIVERSITY CITY, APRIL 2012.

 UNIVERSITY OF EL SALVADOR

ENGINEER MARIO ROBERTO NIETO LOVO.

RECTOR.

TEACHER ANA MARIA GLOVER DE ALVARADO.

ACADEMIC VICE-RECTOR.

Doctor Ana Leticia de Amaya.

GENERAL SECRETARIAT.

Licensed Nelson Boanerges López Carrillo.

INTERIM ATTORNEY GENERAL.

FACULTY OF LAW AND SOCIAL SCIENCES.

Doctor Julio Alfredo Olivo Granadino.

DEAN.

DOCTOR DONALDO SOSA PREZA.

VICE DEAN.

Licensed Oscar Antonio Rivera Morales.

SECRETARY.

Doctor Evelyn Beatriz Farfan Mata.

DIRECTOR OF THE SCHOOL OF LEGAL SCIENCES.

MASTER MARÍA ESTHER RIVERA.

SEMINAR DIRECTOR TEACHER.
 ACKNOWLEDGMENTS

Thank God Almighty for showering me with blessings of

give me the ability and guide my steps until the achievement of this goal that
it fills me with so much joy.

At the end of this stage of my life, I want to express a deep

thank you to those who with their help, support, and understanding encouraged me
to complete this race. To my beloved husband José Antonio Platero Alvarado
because thanks to his love, support, and patience, I have managed to achieve one of
my great achievements, the result of the immense trust that was placed in me and with

which I have managed to complete my professional studies that constitute the

the greatest legacy I could receive and for which I will be eternally grateful
Thankful. Thanks to my children Karen, Tony, Alejandro, for the great support.
provided during the years of study, for the patience and understanding that I
they gave when I often set them aside to be able to study;
thanks to that I have been able to finish my professional career, my beautiful granddaughter

Alessandra, who along with my children were the ones who encouraged me to keep going.

forward, which serves as an incentive to continue with my self-improvement and

I hope to serve as an example and inspiration for your own self-improvement. To me
dear mother Rosa Elida Bonilla to whom I owe and thank so much
advice, their care, thanks to their corrections that helped me forge
the character I have and for all the sacrifice he made to get us ahead
along with my siblings, as well as for the support provided over these years
of study.

To my thesis partners, Lorena and Jenny, for the effort and work.
carried out to complete this stage of study.
 To my Master's thesis advisor María Esther Rivera for her guidance
provided for the realization of this research, to all my family, to my
dear friends and study companions for being present and attentive
at every stage of my life.

To my teachers who throughout my career gave their best to

that this goal became possible, through his words and wise advice. In
recognition for all the support provided throughout my years of study and
with the promise of always moving forward, I want you to feel that the
The achieved goal is also yours and the strength that helped me to
Getting it was her support.

With love and gratitude.

CELIA ARMIDA BONILLA DE PLATERO.

 THANKS

To God, for having illuminated me throughout my entire career and having

allowed to achieve this triumph by giving me health and wisdom allowing me
to achieve some of the most important goals set in my life.

To my mom Reina Elizabeth Huezo, for giving me life, for providing me

his love, for his sacrifice unconditional support always even in the
during my studies and for your advice.

To Rolando Cornejo, my husband, because with his love and patience he has given me

the encouragement to continue and with words of support has given me strength
to get up every time I have stumbled and have not had the courage to
to continue in the most difficult moments of my career.

To my thesis colleagues for their patience and tolerance in everything.

difficulties we faced during the development of this thesis, as well as its
understanding.

To my friends who were present during the development of this thesis that
they were supporting me thanks for being part of one of the stages of my
life.

JENNY JAMILETH DIAZ HUEZO

 ACKNOWLEDGMENTS

ALMIGHTY GOD: for always enlightening me and giving me the wisdom that
it comes from him and above all gives me the strength to be able to conclude this stage of my

life satisfactorily as it says in 2 Timothy 1:7

For God has not given us a spirit of fear, but of power, of love and
of self-control.” This verse was the one that God placed in my life to
to be able to move forward and not let myself be defeated during this stage.

TO MY FAMILY: to my mother Lorena del Carmen González Murillo, for giving me

life and its support in everything I need and above all for its love
unconditional; to my father Luis Mario Pocasangre, for his love and support
unconditional, to my grandmother Ester Dolores, for her support and her prayers
daily to complete this stage of my life, to my cousin Laura Lorena Murillo
Arias, for your love, support, and for always being there in the moments when I need you the most.

I need in my life my uncles María Elsy Arias de Murillo and Abel Alfredo
Murillo González for his love, unconditional support, and prayers for me.
life, to my Uncle Marcial Mancía for his affection and for always being there in the

most difficult moments of my life, to my entire family for their love

and unconditional support.

TO MY FRIENDS: to my best friend and spiritual mother Jeanne Cruz for her
darling, your advice and unconditional support in good times and bad, and to my
dear companions from the Rosa Agazzi School for their support and
words of encouragement to move forward in this stage of my life.

To my thesis classmates and friends: to Celia Armida Bonilla of

Platero and Jenny Jamileth Díaz Huezo, because together we have managed to achieve

this goal with effort and sacrifice, but always with a lot of love, to my
friends forever for encouraging me and showing me all your affection.
To our thesis advisor, Master María Ester Rivera, who has
I facilitate this research for their responsibility and kindness of
to review our work specifically and for giving us the opportunity to learn
more every day.

TO ALMIGHTY GOD for being with me and allowing me to finish my

successful studies.

Lorena Guadalupe Pocasangre Gonzalez

 INDEX

PAGE

INTRODUCTIONN .i

CHAPTER ONE
1. STATEMENT OF THE PROBLEM AND METHODOLOGY
FROM THE RESEARCH............................................................................ 1
1.1. Situation Problematic....................................................................... 2
1.2. Statement of the Problem .................................................................... 5
1.3. Delimitation Spatial and Theoretical.......................................................... 5
1.3.1. Delimitation Spatial .................................................................. 5
1.3.2. Delimitation Theoretical.................................................................... 6
Justification from the research and Research Objectives. ....... 6
1.4.1. Justification of the Research. .................................................. 6
1.5. Objectives 9
1.5.1. Objective General ......................................................................... 9
1.5.2. Objectives Specifics .................................................................. 9
1.6. System of Hypothesis and Operationalization of the Hypothesiss.................... 10
1.6.1. Statement of Hypothesis............................................................. 10
1.6.2. Operationalization of Hypothesis........................................................ 11
1.7. Level and type of Research. ............................................................ 12
1.7.1. Level of Research ................................. 12
1.7.2. Type of Research ................................................................ 13
1.8. Methods, Techniques and Instruments................................................... 14
1.8.1. Methods. ................................................................................... 14
1.8.2. Technique 15
 1.8.3. Instruments 16
1.9. Population, Sampling and Units to Analyze. .................................... 16
1.10. Procedure for Executionn ...................................................... 17

CHAPTER TWO
2. HISTORICAL FRAMEWORK OF COOPERATIVES.................................... 19
2.1. Emergence History of Cooperatives....................................... 20
2.1.1. The Agapes in the Roman Empire.
The Cooperative Movements of the 11th CenturyX ............................ 25
2.1.3. The Rochdale Pioneers ........................................................ 27
2.1.4. Appearance from housing cooperatives. ............................... 35
2.1.5. Europe 41
2.1.6. Latin America 43
2.2. The Housing Cooperatives in El Salvador.................................. 47

CHAPTER THREE
3. CONCEPTUAL, DOCTRINAL AND JURISPRUDENTIAL FRAMEWORKL ......... 50
3.1. Concepts related to housing cooperativesa ......................... 51
3.2. The Cooperatives ............................................................... 52
3.2.1. Characteristics. 53
3.2.2. Values of Cooperativism....................................................... 54
3.2.3. Principles of Cooperativism. .................................................. 55
3.2.4 Classification from the Cooperatives.............................................. 60
3.3 Cooperatives according to the activity they carry out in El Salvador. ......... 62
3.4 Cooperatives Savings and Credit .................................................... 64
3.5 Concepts related to the Right to Adequate Housing..................... 67
3.6 He Right to a Decent Housing ..................................................... 69
3.6.1 Characteristics .......................................................................... 70
 3.6.2 Nature Legal. .................................................................. 72
3.7 He type of dwelling that protects the right to decent housing. ....... 74
3.7.1 Parameters of a dignified housing
3.7.2 The Environment as part of a Decent Housing.
3.8 The obligations of the State that arise from the law
dignified housing
3.9 The Federation of Cooperatives ....................................................... 83

3.9.1 Functions 85
3.9.2 Competencea ............................................................................. 85
3.10 The Confederation of Cooperatives.................................................. 86
3.10.1 Functions .............................................................................. 87
3.10.2 Competitions ........................................................................ 87
3.11 The Cooperative Alliance ................................................................... 88
3.11.1 Functions .............................................................................. 93
3.11.2 Competitions ........................................................................ 94
3.12 The Cooperatives of Housing ......................................................... 95
3.12.1 Characteristics. ...................................................................... 99
3.13 The Social Economy 100
3.13.1 Historical Emergence. .104
3.13.2 Characteristics. .................................................................... 110
3.13.3 Principles. ............................................................................ 112
3.14 The Housing Cooperatives in Social Economy ..................... 113
3.15 Difficulties current of the Cooperatives of Housing. ................ 118
3.16 Challenges from Housing Cooperatives.......................................... 122

CHAPTER FOUR
4 MARCO LEGAL................................................................................ 127
4.1 LEGAL ABOUT COOPERATIVES OF
FRAMEWORK
HOUSING................................................................. 128
 4.1.1 Law internal....................................................................... 128
4.1.2 Constitution of the Republica .
4.1.3 Laws secondary schools .................................................................. 129
4.1.4 Regulations ........................................................................... 131
4.2 Frameworklegal about the Right of access to the Housing
Digna.............................................................................................. 133
4.2.1 Law internal....................................................................... 136
4.2.2 Constitution of the Republica ................................................... 136
4.3 Right compared
4.3.1 Argentina 137
4.3.2 Venezuela ............................................................................... 139
4.3.3 Childe ........................................................................................ 141
4.3.4 Spaina .................................................................................... 141
4.3.5 Coast Rica

CHAPTER FIVE
5. INSTITUTIONAL ANALYSIS OF COOPERATIVES
HOUSING, THE SOCIAL HOUSING FUND, THE FUND
NATIONAL FOR POPULAR AND COMMUNITY HOUSING
SALVADORAN FOUNDATION FOR DEVELOPMENT AND HOUSING
MINIMA................................................................................................... 143
5.1. State institutions responsible for ensuring the right of
access to adequate housing. ......................................................... 144
5.1.1. The Social Housing Fund ............................................... 145
5.1.1.1 Legal competence ................................................................... 149
5.1.1.2. Requirements to access housing ................................. 150
5.1.2. National Fund for Popular Housingr .................................. 152
5.1.2.1. Legal competence .................................................................. 156
5.1.2.2. Requirements to access housing ................................. 157
 5.2 The role of non-governmental organizations in the enjoyment of
right to adequate housing.............................................................159
5.2.1. Salvadoran Foundation for Development and Minimum Housing
FUNDAMENTAL......................................................................................160

CHAPTER SIX

6. SYNTHESIS OF THE RESEARCH CONDUCTED................................. 165

6.1. Interviews...............................................................................................165

CHAPTER SEVEN

7. CONCLUSIONS AND RECOMMENDATIONS.......................................... 185

7.1 Conclusions.........................................................................................185
7.2 Recommendations................................................................................188
BIBLIOGRAPHY. .................................................................. 191
ANNEXS .199
 ABBREVIATIONS

ACI International Cooperative Alliance.

ACOVICHSS Cooperative Housing Association of the Center
History of San Salvador.

AECI Spanish Agency for International Cooperation

for Development.

AFP Association of Fund Administrators

Pensions.

AID International Development Agency.

ALVIS Draft Bill on Social Housing.

AMSS Metropolitan Area of San Salvador.

BID Inter-American Development Bank.

CASALCO Salvadoran Chamber of Industry

Construction.

ECLAC Economic Commission for Latin America.

CHSS Historic Center of San Salvador.

CLADEM Committee of Latin America and the Caribbean for the

Defense of Women's Rights.

COACES Confederation of Cooperative Associations of El

Salvador.
ECOSOC Economic and Social Council of the Nations
United.

EHPM Multiple Purpose Households Survey.

FESCOVAM Salvadoran Federation of Cooperatives

Housing through Mutual Aid.

Inter-American Federation of Industry

FIIC
Construction.

Permanent Forum for Integral Development of

FPDICHSS
Historical Center of San Salvador.

FNV National Housing Finance.

FONAVIPO National Fund for Popular Housing.

FSV Social Housing Fund.

FUNDASAL Salvadoran Foundation for Development and Housing

Minimum.

FUNPROCOP Promoter Foundation of Cooperatives.

HIC International Habitat Coalition.

INAES National Institute of Associativism and Economy

Social of Argentina.

INDEC National Institute of Statistics and Census of the

Argentina.

INSAFOCOOP Salvadoran Institute of Cooperative Promotion.

IVAE Index of Economic Activity Volume.

IVU Urban Housing Institute.

LGAC General Law of Cooperative Associations.

MOP Ministry of Public Works.

ORDERCCAC Regional Organization of Chambers of the

Construction of Central America and the Caribbean.

OCA Organization of Cooperatives of America.

NGO Non-Governmental Organization.

UN United Nations Organization.

PIDESC International Covenant on Economic Rights,

Social and Cultural.

United Nations Program for the

UNDP
Development.
PRONAVIPO
National Popular Housing Program.
RBLFSV
Basic Regulation of the Social Fund Law for
the Housing.

RLGAC Regulations of the General Law of Associations

Cooperatives.

SUNACOOP National Superintendency of Cooperatives

Venezuela.
 GLOSSARY

Alliances They are national and international cooperative organizations of

cooperatives
all sectors of activity: agricultural, banking, credit and
ahorro, industriales, de seguros, pesca, vivienda, salud, servicios
public services, social services, tourism and consumption that come together to

promote and strengthen autonomous cooperatives worldwide.

Affordable It is everything that can be achieved or reached regardless of the
sacrifice. To choose until obtaining a house, a job or whatever it may be,
if it is within reason.
Mutual aid Union of people working together for the same purpose
Confederation They are organizations made up of at least three
of cooperatives
Federations of the same class or by five Federations of
different class.

Cooperatives They are the ones whose purpose is to serve as savings accounts for their
of Savings and
members and invest their funds in credits, as well as obtaining
Credit:
from other resources for the direct loan grant or
indirectly to their associates.
Cooperatives It refers to the base cooperatives, whose members generally
first degree
they are natural persons.

Cooperatives They are those integrated with producers who associate to

of Production
produce, transform or sell their products in common, the
which seek to market the products of their members.

Cooperatives They are associations of two or more cooperatives of

of third degree
second degree, doctrinally; that is to say it is composed of
federations, as their members are legal entities,
it is also known as a confederation, composed of no less than
Cooperatives Those aimed at providing services of all kinds,
of Services
preferably to its associates, mainly being the
needs of these that are sought to be satisfied, with the
purpose of improving environmental and economic conditions of
satisfy their family, social, occupational needs and
cultural.

Cooperatives They are those formed by people who associate to

of housing
to obtain housing through mutual aid and effort
own.
Deficit It is the set of unmet needs of the population.
Residential
in housing matters, existing at a moment and in a territory
determined.

Law Discipline is the method of studying Law that is based on the

Compared
comparison of the different solutions offered by the various
legal systems for the same cases presented.

Forced eviction Coercive and involuntary displacement of people, families, and groups
of their homes, lands, and communities, whether it is considered
legal or not according to the legal systems in force.

Social economy Set of those producer organizations,

consumers, savers, workers, etc., who operate governed
for the principles of democratic participation in decisions,
autonomy of management and the supremacy of the human being over the
capital.

Own effort It is the motivation, the willpower of the members in order

to achieve planned goals.
Expropriation The coercive transfer of private property from its owner

to the State, through compensation.

All people were free to choose their work, and they could
Phalanstery
change whenever they wanted, since what was fundamental to them was that
each individual will work according to their passions and not
there would exist an abstract and artificial concept of property, private or
common.

Federation They are organizations of associations made up of ten or more.

of cooperatives
cooperatives, of the same type.
Integration Participants in a cooperative must be integrated, which
cooperative
what it means is that they must compose a whole from their parts.

Free adhesion It means that the cooperative must have its doors open for
admit associates and the interested party is free to request their
admission to her fulfilling certain conditions already provided
legally.

Movement It is a doctrine that defines the cooperation of its members in

cooperative
the economic and social rank as a means to achieve that the
producers and consumers, integrated cooperatives, obtain
a greater benefit for the satisfaction of your needs.

Solidarity Support, cooperate in solving problems of the partners,

the family and the community.

Trusts It is the union of different companies under the same management.

central with the purpose of exercising control over sales and the
Marketing of the products. It tends to control a sector.
 economic and exert the power of monopoly as much as possible.

Decent Housing The human right to adequate housing is the right to

every man, woman, young person, and child to have a home and one in which

may live in peace and dignity.

 INTRODUCTION

A housing cooperative is a type ofcooperativewhose object

social is to provide to its associateshousinglocales and othersgoods
propertiesacquiring land to urbanize and build. The cooperatives
housing as housing development societies have consolidated
in some European and Latin American countries as one of the best
means to access affordable and quality housing. Factors
objectives that intervene in their production system and in its legal regulation
this is evidenced in these countries that have sought in this system
a prompt solution to the housing deficit they have. The cooperatives of
housing is one of the most representative figures of the so-calledeconomy
social.

The research aims to present, study, and above all propose

solutions for the problem being faced in El Salvador regarding enjoyment
of the right to access adequate housing. Likewise, the approach that is taken
the State on the subject, and how the Housing Cooperatives emerged
Since the earthquakes of 2001, they are a viable alternative, but that does not
is properly utilized to tackle the problem.

El Salvador is behind in terms of organization and promotion of

housing cooperatives refers to, as they have not bet on them,
state institutions that exist make huge efforts to supply in
it does not address the huge housing demand that exists, but the big detail is that
these institutions only provide facilities to those people who
they have a job, they receive a salary, that is to say that their policies are
focused on the worker, thereby leaving out of their programs
housing to a large majority of the population that sustain

i
economically by informal trade, those who do not have a relationship
employer-employee.

The first chapter details the problem statement,

presenting, studying but above all proposing possible solutions
in the face of the housing deficit problem that exists in El Salvador so that
people can have access to and above all an effective enjoyment of a
decent housing, for this the objectives aimed at are justified and developed.
to show the insufficient work being done by the state entities in charge of
provide a possible solution to this social problem and above all the
little legislation there is in the country for the development and promotion of the

housing cooperatives, the methodology that was applied to the research is

another section that is revealed within this chapter.

In the second chapter, the concepts related to the

housing cooperatives, then it is about delving deeper and studying about the
historical background and the emergence of cooperativism in general,
mentioning the authors who were pioneers contributing their ideas and
postulates that were later taken as a guide for the organization
cooperative that emerged first in Europe after great struggles
for workers and other social classes with the purpose of achieving their
objectives and later their emergence in Latin America, this is how
the section that deals with cooperatives is completed
private housing in El Salvador.

In the third section, the conceptual and doctrinal framework is studied.

jurisprudential of the investigation, which deals with the concepts related
to housing cooperatives, including also the applicable doctrine to
it also addresses matters related to the Confederation of Cooperatives,

ii
Cooperative Alliance, the Cooperative Federation and the Social Economy,
determining their competencies and main functions, the following are shown
current difficulties of Housing Cooperatives and the challenges they face
to face.

In the fourth chapter, the applicable legal framework is studied.

housing cooperatives as well as the legal framework applicable to the right of
access to adequate housing, including national regulations and
international concerning the topic bringing to light in this way the Law
Compared to a European country, countries
Latin Americans and a Central American country where cooperatives of
housing, although not all of these countries have their own legislation
to develop, they have provided promotion and support as they see in
this form of association is a good solution to the housing problem.

The fifth chapter deals with the analysis of the main topics.
institutions of housing cooperatives in El Salvador, and how these
they facilitate access to decent housing for thousands of Salvadorans who do not
they have one. Among these institutions, we can mention the Fund
Social Housing, Social Fund for Popular Housing, Foundation
Salvadoran Organization for Development and Minimum Housing, non-profit

governmental. In this, its housing programs are developed, to whom

is directed, that is to say its field of application and the innovations that in the
last few years have introduced.

And finally we have the sixth chapter, where the synthesis is made.
from the research, presenting various interviews conducted with different
sectors that work with and know about housing cooperatives as well as
to help people obtain or access housing, with which

iii
we intend to show the approaches that different ones have on it
experts in the subject and in that way be able to verify the hypotheses that
we posed at the beginning of this research, ending with the
conclusions and recommendations that we formulated as a group after
the research has been carried out.

iv
 CHAPTER ONE

1. STATEMENT OF THE PROBLEM AND METHODOLOGY OF THE

RESEARCH.

SUMARIO:1.1. Situación Problemática. 1.2. Enunciado del Problema. 1.3 Delimitación

Spatial Delimitation.
and Research Objectives. 1.4 Justification of the Research. 1.4.1 Justification of the
Investigación. 1.5. Objetivos 1.5.1. Objetivo General. 1.5.2. Objetivos Específicos. 1.6.
Statement of Hypotheses.
Operationalization of Hypotheses
Type of Research.
1.8.3. Instruments.
Procedure for execution.

The methodology used in the following is presented

course of the investigation, reflected in the problem faced by the
individual at the moment of accessing the Right to Adequate Housing and the
possible solutions that can be established through Cooperatives
of Housing; that is why in the development of this chapter the
methods, techniques and instruments used, as well as the type of research
that is being developed through hypotheses, with the aim of reaching
in search of solutions that can be implemented in the country to
moment of the execution and elaboration of this chapter.

1
 1.1. Problematic Situation
In the country, a high percentage of the population does not have housing.
worthy; the State as a guarantor of human exaltation must watch over and ensure
fulfill this right. Due to economic, social, and
cultural, there are many families that do not enjoy the minimum conditions.
to have a dignified life, including a housing that sufficiently meets
its housing need, which consists not only of a place to live,
in an environment where the family can develop productively
and with dignity.

From the provisions of Article 119 of the Constitution of the Republic1,

an obligation is born2fundamental for the State, to ensure that each
Salvadoran lives in a place that meets the minimum conditions and
necessary for your personal development, this is a decent housing.

As is often the case in El Salvador, what is provided in the law contrasts

greatly with what is applied to reality, in such a way that there are hundreds and
up to thousands of families who not only do not have decent housing, but
they lack the necessary conditions to have a dignified existence
human being.

The situation becomes very complex because the causes are

structural, that is to say, that have existed in our country for a long time
time, as the Salvadoran economic system has always suffered
of crisis, unemployment, underemployment, low production and productivity, etc.
problems with the growing population explosion that is currently taking place and intensifying

more and more.

1
Constitution of the Republic of El Salvador of December 20, 1983. D.C. No. 32, issued
July 21, 1993; D.O. No. 142, volume No. 280, dated July 29, 1983.
2
Article 119 of the Constitution of the Republic: "The construction of is declared to be of social interest."
housing. The State will strive to ensure that the largest number of Salvadoran families achieve
owners of their home.

2
 The approach to the problem involves not only the person who does not have a
decent housing, but also includes the State itself and the entities
state entities that are responsible for ensuring the right of access to a
decent housing. Said state entities are not coordinated with each other, due to the
their work is reduced to sporadic efforts to address a situation
complex that requires a systematized action in order to be
faced.

The issue of decent housing is highly complex, as it includes

a series of interrelated factors that contribute to exacerbating the
problem. At this point, other situations facing the country are raised,
that directly affects the fulfillment of the right to access to a
decent housing such as: unemployment or underemployment, the accelerated and

disorganized population growth, lack of social policy, etc., everything

within the vicious circle of poverty. It should also be noted that part
The problem is that the State has not been able to provide an adequate response.

in the face of the problem, because the government institutions responsible

to safeguard the right to access decent housing do not act within
a structured framework and coordination among them, that is to say that the
The state, through its institutions, does not take a comprehensive approach, but rather more

small dispersed efforts to address a complex situation that

requires a comprehensive solution.

In addition to what has been previously stated, there is also the problem of having

a succinct and markedly mercantilist regulation, which causes that the

state housing credits are not very accessible for people from
scarce resources and are precisely those who suffer from the lack of
a decent home. Paradoxically among the housing loans
provided by the State through the Social Housing Fund,

3
FSV3for the National Fund for Popular Housing, FONAVIPO4and the
private banking5there is only a percentage difference in interest rates and
other credit conditions, but not of a content and functional direction
focused on solving the problem as one would expect from a State that
was interested in guaranteeing the right to access housing
worthy.

In light of this situation, efforts have emerged from non-profit organizations

governmental bodies that through a social and humanitarian function seek to

collaborate with those who need decent housing,
providing them with the credit facilities to access it, but
they encounter a scattered, scarce, deficient regulation and with entities
state institutions that do not promote or support their efforts to address the

comprehensive and coordinated approach to this type of

organizations that are housing cooperatives, there is little.
knowledge and legal development that allows for the proper functioning of the
the same, which leads to not receiving an appropriate promotion and due to
Hello, the potentially needy and interested people are unaware of the
way they can organize themselves and receive assistance and advice
relevant.

The ignorance about housing cooperatives reaches such a point

that there is a legal vacuum regarding its creation, organization, or constitution

3
The Social Housing Fund (FSV) since 1973, established a program with the
participation of the State, employers, and formal workers with incomes up to three
Minimum wages were aimed at financing housing for salaried workers with the lowest incomes.
4
FONAVIPO was created by Legislative Decree No. 258, which came into effect on the 17th of
June 1992, with the aim of helping Salvadoran families with lower incomes,
access to credit to solve their housing problem, and seek better conditions
favorable for social interest housing financing.
5
Private banking is understood to mean all banking and credit institutions of capital
private, whose purpose is to finance productive and consumption activities based on a rate
of interest, this interest rate is regulated by the Superintendency of the System
Financial.

4
as a specific type of cooperative in the country, unlike other types
of cooperatives, which have more coverage and support for their
development6.

1.2. Problem Statement

To what extent does the Salvadoran state support cooperatives?
housing to facilitate access to decent housing for families of
scarce economic income?

1.3. Spatial and Theoretical Delimitation

1.3.1. Spatial Delimitation.

The research is based on the historical and legal background in
the country, but with a special focus on the department of San Salvador,
Well, following the earthquakes of 2001, things began to emerge in our
through some Housing Cooperatives, benefiting families
who lived in inns in the historic center of San Salvador.

It is precisely in the housing projects carried out by these

cooperatives, where beneficiaries have been interviewed and from this
way to know the lived experience in this type of associations. Said

6
By stating this, it refers to agricultural cooperatives, which
They even have a specific regulation that governs them. These emerged after the reform.
agriculture when farmers sought ways to optimize their work, the
savings, credit, and consumption cooperatives are another type of cooperatives that are widely spread
and success in the country, as well as the fishing cooperatives which in the last
Years have taken on a greater and more important rise, due to the fact that the people who inhabit
coastal areas have had to find ways to organize themselves and make the most of
product of their work governed by cooperative principles and having greater
women's participation.

5
housing project is located only in the San neighborhood
Esteban from the San Salvador department.

1.3.2. Theoretical Delimitation

In the country, Housing Cooperatives are relatively new and do not
they have taken advantage of the benefits they offer, as is the case of countries

like Chile, Ecuador, Venezuela, Argentina, and some from the European Union,
where this type of entities have a broad development, that is why
it has had to rely on documents that describe those experiences,
just like in textbooks, theses, web pages, which allow a
analysis on this special type of cooperatives.

Regarding the right to access adequate housing, in the country there are
investigations conducted on housing deficit, doctrinal development
about the concept and content of the right to a decent housing and about the
minimum conditions that must be met to speak of an existence
worthy of the human being as mandated by the Constitution of the Republic in
Article 101, section 17This information is what serves as a starting point for
starting point for the study of the issue that was analyzed, in such a way that,
it is the consultation of books, state technical studies, and various theses
Salvadoran authors who have led to an understanding of the situation
problematic arising from this prior knowledge.

Justification of the research and Objectives of the research

1.4.1. Justification of the Research.

As is known, there is a large housing deficit in El Salvador due to
that access to decent housing is very difficult for people with limited resources

7
Article 101 paragraph 1 of the Constitution: "The economic order must essentially respond to principles of
social justice, which aims to ensure all inhabitants of the country a dignified existence
of the human being.

6
resources. In the same way and paradoxically, there is also a number
importance of abandoned housing units either due to the environment
of insecurity8or because credit institutions, whether state-owned or
private, maintain similar lending conditions and margin of the
right to access decent housing for people with limited resources.

Given this incongruity, having hundreds of families that need

access to decent housing and on the other hand hundreds of abandoned houses
waiting for someone to inhabit them, research becomes necessary
technical and legal to understand this situation more in depth but above all
to propose solutions and generate knowledge that contributes to
solve the problem.

On the other hand, the existing housing projects and especially the
newer ones are focused on profit generation, both from
the state institutions as well as the private institutions that finance
said projects. The requirements and conditions that both types of
institutions require when applying for access to a
housing and above all one that meets the conditions of decent housing,
which are impossible to fulfill for the majority.

What has been previously stated is not only about the small spaces.
housing, unaffordable prices and difficult lending conditions,
but also due to the inappropriate environment for family and cultural development
with which new housing projects in El Salvador are
projected and executed; therefore, the research has focused on,
8
Regarding the point, in recent years crime has increased disproportionately in
communities and neighborhoods from different parts of San Salvador, this has caused the
abandonment of homes, which have been dismantled or serve as hiding places for the
criminals making it not only difficult but rather impossible for a family to
obtain it and inhabit it due to the high degree of danger it would represent for him and his
family.

7
primarily, in the right to access to decent housing, in order to
understand that it is not just about building more houses or softening the
conditions to access a credit but rather that all of them effectively
Salvadoran families can live in an environment that allows for the
current and future generations a sustained and sustainable development that
will result in a benefit for the country.

The problem from this point of view justifies the present one.
research, but it should be added that as the situation is complex and the
The state is primarily responsible for assuming a role and executing actions that
help to solve the problem, it must be investigated in detail the
functions that state institutions perform such as the Fund
Social Housing and the National Fund for Popular Housing, in the
generation of conditions that allow low-income families
the acquisition of a decent home.

On the other hand, the effort made by society is also noteworthy.

civil, from a non-profit private perspective, through the
recently known Housing Cooperatives; and it is here where we
we find ourselves with another dilemma, which although the State is the main
obliged to respond to the problem, the intervention of the individual or of the
a collective organized under a principle of human solidarity should be
supported by the directly obliged party, namely the State, but the reality is
different, with a sparse legislation, a poor legal structure and
state institutions uncoordinated; therefore it is also necessary
study the interaction between private and public entities.

The related interaction suggests that it is generating a

response more or less adequate to the current situation and with the
understanding of such interactions is also achieved by proposing the due

8
recommendations to address the issue. The recommendations that
They are placed at the end of the development of this study and aim to be seeds in the
field of the issue of the right to access adequate housing in the
country and with that contribute and progress on the topic, when they relate to the
public and private entities when facing the problem of a
decent housing, which is now known as responding to such
situation, and that understanding will allow for recommendations that
As a contribution of this work, it is intended to reach the formulation of the respective

conclusions.

For all the above mentioned, the topic is focused from two points.
mainly, the first of them is the right to access decent housing in El
Salvador, and the second and more innovative, the role of cooperatives of
housing as a solidary and private effort to contribute to overcoming
the problem.

1.5.Objectives

General Objective
Investigate the legal norms, the public and private entities that regulate
and must guarantee the right to access decent housing in El
Salvador, especially the Housing Cooperatives as an initiative
innovative to respond to the housing problem in our country.

1.5.2. Specific Objectives

Analyze the economic and social conditions that prevent
Salvadoran population the effective enjoyment of the right to access
a decent housing.

9
 Determine the importance of the right to access housing
dignified in El Salvador.

Identify the functions of the implementing and guaranteeing entities of the

operation of Housing Cooperatives in El Salvador.

Establish the relevance of Housing Cooperatives in the

enjoyment of the right to access to adequate housing in El Salvador.

Present a study on the legal norms that regulate the

Housing Cooperativism in El Salvador.

Analyze the role of state institutions responsible for

offer housing solutions to population segments
more disadvantaged or those who are in extreme poverty.

1.6.Hypothesis System and Operationalization of Hypotheses

1.6.1. Statement of Hypothesis

General Hypothesis
The lack of a properly structured legal system prevents the
existence of housing cooperatives and the effective enjoyment of the right to
access to decent housing for families that are in a situation of
poverty.
Specific Hypotheses
The legal norms that regulate Housing Cooperatives are
they are found scattered and do not form a congruent structure,
making the existence of such beings difficult and therefore their function in

favor of low-income families.

10
 2. The state entities that must facilitate development and existence
housing cooperatives do not fulfill their function due to the
discoordination and lack of reciprocity between them.

3. The right to access decent housing in El Salvador is

seen from the governmental perspective as the acquisition of a
housing unit that meets minimum conditions of
construction, but not of sustainable and sustainable development of the
family, so that people with limited resources are
makes it difficult to obtain decent housing.

1.6.2. Operationalization of Hypotheses.

General Hypothesis
The lack of a properly structured legal system hinders the
existence of housing cooperatives and the effective enjoyment of the right to
access to decent housing for families who are in a situation of
poverty.
Independent Variable
Lack of a structured legal system.
Dependent Variable
Effective enjoyment of the right to access adequate housing.
Specific Hypotheses
The legal norms that regulate housing cooperatives are
they are scattered and do not form a coherent structure, making it difficult to
existence of entities and therefore their function in favor of people of
limited financial resources are affected.
Independent Variable
Dispersed legislation and without coherent structure.

11
 Dependent Variable
Scarce existence of housing cooperatives.
The state entities responsible for developing cooperatives
housing and to ensure the right to access dignified housing, not
they fulfill this function, largely due to the lack of coordination and lack
of reciprocity between them.
Independent Variable
Failure to fulfill duties by state entities.
Dependent Variable
Discoordination among state entities.
The right to adequate housing in El Salvador is viewed from the
government optics such as simple access to a housing unit that
gather minimum construction conditions but not for progressive development
and sustainable for the family, which is why for people with limited resources
make it difficult for them to obtain decent housing.

Independent Variable
The right to adequate housing as well as access to a unit
viable housing through state entities.
Dependent Variable
Low-income people cannot access housing.
worthy.

Level and type of research.

1.7.1. Level of Research

The research on the issue of the Right to access to a
decent housing and the role of housing cooperatives to respond to this
The issue will be studied from various theoretical levels:

12
 . Descriptive Level.
It was used for the presentation of economic and social factors.
political and legal factors that affect the lack of access to housing
worthy and therefore affect the enjoyment of that right. Likewise,
it showed the poor legal structure that exists for the constitution and
functioning of housing cooperatives and their low operability
of the state entities in this matter. In addition to being useful for
to know and study the legal structure that governs the cooperative of
housing in the country.
. Explanatory Level.
This level served to understand the causes and factors that
they exert influence on the lack of access to decent housing; also
allowed us to understand how it stands in our country
legal regulation of housing cooperatives and how they work
state entities responsible for ensuring the right of access to a
decent housing. By using this level, it was understood better.
way the operation of housing cooperatives and the role of
the entities responsible for ensuring the right of access to a
decent housing in El Salvador.
. Predictive Level.
This level allowed for specific recommendations to be made to address the
the issue of lack of access to adequate housing in El
Salvador.

1.7.2. Type of Research

The research conducted is of a mixed type, as the sources are
use documentaries and empirical data:

13
 Bibliographic or Documentary.
Information was gathered from secondary theoretical sources, that is to say
processed information which has been obtained from books, theses,
brochures, Internet, as well as that which provide information
historical, doctrinal, and legal about the Right of access to a
decent housing and about Housing Cooperatives.

Empirical or Field.
It is information collected directly from the sources
the same, in this case, refers to cooperative members,
employees who work in state institutions related to
topic, as well as specialists teachers who teach the subject in
the Faculty of Law and Social Sciences of the University of
El Salvador, which allowed for a technical scientific observation of
problem through personal interviews.

1.8. Methods, Techniques, and Instruments.

1.8.1. Methods.
General Methods.

Analysis
It is about visualizing the problem and studying it through its
parts, breaking down the whole into its various parts, in order to
to be analyzed separately.
Synthesis
Having completed the analysis, a logical operation was carried out.
deductive by uniting all the knowledge and information obtained
which After the analysis, a synthesis was made, this is the

14
 summary of everything studied that has served to generate the
conclusions and possible recommendations on the topic, which
it was done by studying the problem as a whole.
Induction
It goes from particular aspects to general conclusions.
which was done through field observation and theoretical study
doctrinaire.
Deduction:
As a consequence of the induction, it becomes necessary to
build the acquired knowledge starting from knowledge
general to specific, thus the research was corroborated.

Specific Methods.
It was based on secondary sources: the research
documentary and content analysis
It was based on direct or primary sources: using observation.
field and the interview. The interviews were directed to
key informants.

1.8.2. Technique
In the development of the work, the system was checked.
hypothesis using the following techniques:

Probabilistic Sampling.
Through the interviews conducted which contributed to the
knowledge about the experience of housing cooperatives in the
country.

15
 It consisted of determining a target population for study, for which
certain population was selected to be studied and a script was used
interviews as a guide for data collection for the study of the topic.

Selective technique for key informants.

Through this, people were interviewed who provided information.
about the legal aspects of housing cooperatives as well as the role
of the state entities in the issue. Due to the highly
research technician who was selected for the investigation, people were chosen
considered as experts who had knowledge of the subject to be researched
since your direct experience with the issue and the recognized
academics, whose important knowledge allowed us to have study
scientific on the subject.

1.8.3. Instruments.
In the present research, a series of instruments were used.
for the acquisition of the required information: bibliographic cards, cards of
content, books, theses, websites, and interviews through thematic guides
previously prepared.

1.9. Population, Sampling and Units of Analysis.

The research was conducted in the department of San Salvador with the
population and samples that are determined below; it was taken into account the
collaboration of various state agents to obtain the information
necessary

a) Social Housing Fund;

b) National Fund for Popular Housing;
c) Salvadoran Foundation for Development and Minimum Housing; and

16
 d) Housing Cooperatives.
Population:
The population studied is made up of those
employees who work in the aforementioned institutions, and whose
the direction function directly links them with state policies for the
access to housing, experts in the field of
Cooperative law that provided the theoretical substrate of what
they are the housing cooperatives in El Salvador.

Selective sampling: key informant.

a) Licensed José Gregorio Acevedo, Supervisor of the Department of

Social Projection of the Social Housing Fund.
b) Licensed Jackelin Ramírez, Information Advisor of the Fund
National for Popular Housing.
Mrs. María Adriana Gonzales, president of the Association
Housing Cooperative of the Historical Center of San Salvador;
ACOVICHSS.
Licensed Juan Carlos Castellón Murcia and Doctor José Mauricio
Rodríguez Flores; Teachers of the Public Department of the Faculty
of Jurisprudence and Social Sciences of the University of El
Salvador, specialists in Cooperative Law.
e) Licensed Julio Caledonio, Department of Social Promotion of
FUNDAMENTAL.

1.10. Procedure for Execution:

It started with the formulation of the theme "The Right to Access to the
Dignified housing in El Salvador. Solutions through Cooperatives
of Housing”, afterwards a brief but substantial was executed
17
bibliographic research to document them on the content of the topic
address, with this the elaboration of objectives, justification,
problem statement, system of hypotheses, and the chapter project of the
thesis.

The respective Congruence Matrix was presented to the thesis advisor.

to be able to prepare the draft project. Once approved by the Board of Directors
from the Faculty of Jurisprudence and Social Sciences, the proceedings were initiated

collection, classification, and synthesis of documentary information on

the theme; while empirical data was collected through interviews
previously outlined to then obtain data and present them
interpret them through a result analysis and thus complete the
information to draw conclusions and recommendations on the subject.

18
 CHAPTER TWO

2. HISTORICAL FRAMEWORK OF COOPERATIVES

SUMARIO:2.1. Surgimiento histórico de las cooperativas. 2.1.1. Los ágapes en el imperio

2.1.2. The cooperative movements of the 19th century. 2.1.3. The pioneers of Rochdale
Appearance of housing cooperatives.
housing cooperatives in El Salvador.

In this chapter, it is revealed how, over time,

cooperativism emerged as a means of subsistence for
many people, starting from an international perspective and then
exposes the way in which this system is being adopted in the country. Likewise
The positions and opinions that arise from this new are made known.
movement, diverse philosophers and
jurists reported on the
emergence of cooperativism showing it as a source of help towards
the economically disadvantaged communities. It also addresses how
social movements raise awareness about Cooperativism, which has been
making a way through time and various countries, and in this way
to help man himself, which still persists today; that is why
that, the Pioneers of Rochadle, emerge as the main precursors of
Cooperativism, being them, according to bibliographic data that exists
Go ahead, the first to organize themselves in such a way that they manifested what
then they become the cooperative principles.

It turns out to be an interesting piece of information when tracing the historical background of

humanity, which is to find what is related to formal origins,

19
historical and philosophical foundations of cooperativism, for there is no doubt
that this is an organized way to produce and generate wealth and to
to build collective consciousness, which is as old as man
same9.

It is important to highlight that the cooperative system as it is

know in the present, that is, based on an organization
determined, with a set of philosophical theoretical principles and with a
own doctrine is quite new. The above leads us to the conclusion that
that the current state of the cooperative movement is, in general, nothing more than

the result of the efforts to organize the economy under the

following principles: solidarity, collectivism, and common action in
different parts of the world. Therefore, from very early in the history of
Humanity has deemed it important that cooperation is perceived as something
connatural and inherent to the human being, that is to say, a basic need.

As already referenced, both in the origins of humanity

how currently man in the different areas of his life, within
of each social or family group develops in an environment of constant
cooperation, solidarity, and mutual aid.

2.1 Historical Emergence of Cooperatives.

Cooperativism is closely linked to social history. The
Cooperatives that emerged in reaction to mercantilism and to
individualism represented, both the form of questioning of workers and
peasants as the hope of a 'counter society' in which the

9
One of the defenders of cooperativism: the French economist Charles Gide, maintained
that the cooperative system "Did not originate from the mind of any reformer, but rather it has
arisen from the very depths of the people as a product of long periods of existence
of humanity and experiencing forms and lifestyles.
Cooperativism of Entre Ríos and its Pioneers: the Argentine Congresses of Cooperation
Intercoop. Cooperative Publishing, 1972, p. 155.

20
norms of the capitalist world would be replaced by those of a true
economic democracy10.

Cooperativism has historically represented a movement

social economy that has been in the world for over one hundred and fifty years and in
Latin America, including Argentina, for more than a hundred years, and a strong

tradition and presence in vast sectors of society. It is the phenomenon that

arises with capitalism, as a reaction of the working masses to the situation
created by the industrial revolution that achieved economic success
spectacular, technical progress and a huge increase in goods
materials at the service of man, but its negative balance was not less
spectacular, shaking the old economic and social structure and
sinking the working class into terrible misery.

The pioneers of cooperativism left behind ideas

considered utopian, based on a society made up of
principles of justice and equity. "The first thinkers of cooperativism
they passionately expressed their faith in man, in contrast with
the theories of Hobbes, Darwin, and others who postulated their intrinsic evil and
they claimed their essential character as a supportive being." They are, among others11:
Robert Owen, Charles Fourier, Felipe Buches and Louis Blanc, Hermann
Schultze12.

10
CONFRAS ACENEC, Cooperative Education Collection, 'Brief History of
Cooperativism, San Salvador, El Salvador, March 1993, pp. 21 and 31.
11
MORALES HERRERA, Oscar. "The Historical Process of Cooperativism in El Salvador,
an associological approach." IV FUCAP Conference. San Salvador, 1978, p. 15.
12
Among some precursors of Cooperativeism we have Robert Owen who established
that cooperativism arises as a movement for people with limited resources
resources could achieve a better quality of life and the possibility of reaching
to obtain access to the right to decent housing, as well as Charles Fourier, Felipe Buches,
Louis Blanc and Hermann Schultze.

21
 This is how cooperativism emerges in history at the same time in
three European countries13England, in France and in Germany; as a response

to the 'modest' sectors of the community in the face of expansion and

concentration of industry, commerce, and finance that influenced
harmfully in society, accentuating theunemploymentand going down the
salaries.

The labor movement progresses in three main branches: the

unionism in the labor field, socialism in the political field, and the
cooperativism in economic structuring, distinguishing the latter
for its essentially constructive and bottom-up nature. The
workers are thus becoming aware of the possibilities of emancipation
and they start to build companies, developed and governed by them
same14.

The highest organ of expression of the cooperative movement is constituted by

the International Cooperative Alliance A.C.I., an international entity that associates
to national federations of cooperatives and also other organizations
of cooperatives based in a large number of countries, with purposes
fundamentals of representation, advice, and promotion. It was created
in 1895, and among its main activities are:15:

Conduct studies related to cooperative organizations.

Provide technical assistance on cooperatives.

13
In England 'Society of the Equitable Pioneers of Rochdale', p.38; in France:
Production cooperatives organized by specialized workers, p.39; Germany:
Cooperatives of Agricultural Products and Credit, Ibidem see, above, note 11, pp. 33, 34 and
40.
14
Idem, see above, note 11, p. 45.
15
HENRIQUEZ, Silvia Elena; 'Perspectives of Cooperativism within the Framework of
Financial Liberalization of the Current Economic Policy. Thesis, University of El
Salvador. 1994, p.10.

22
 Hold congresses every four years in order to analyze and update the
information about the cooperative issue.

Maintain ties with other institutions, such as the United Nations.

and its various specialized organizations, expressing before them the
position of the cooperative entities it represents. It thus collaborates
with the Economic and Social Council of the United Nations, with the
International Labour Organization I.L.O., the "Organization of the
United Nations Food and Agriculture Organization (FAO), and the
United Nations Educational, Scientific and Cultural Organization
and Culture" UNESCO.

The Economic Commission for Latin America, E.C.L.A.16consider that

cooperativism in Latin America has some trends related to

1) The composition, mostly represented by immigrants who

they formed the cooperatives17that in some cases, were extended to the
population of the country, in other cases18remained closed culturally and
ethnically.

2) Ideology or thinking that drove the creation of cooperatives,

among them the Catholic Church, the local leadership of a paternalistic nature, the
anarchist and socialist doctrines and the development policies of the State.

16
They establish that the development of cooperativism in Latin America was a gap of
development for the program 'Cooperativism in Development' that promoted organization
from cooperativism to more countries in Latin America to be part of this development.
www.cepal.org. Consulted on August 10, 2011.
17
More specifically, the so-called Consumer, Savings, and Credit Cooperatives. Ibidem,
see, supra note 16, p.9.2
18
That is, Agricultural or Agropecuary Cooperatives. Ibidem, see above, note 16, p.15.

23
 The government policies of the countries in Latin America on
relationship with cooperativism ranges from a great interest in promoting the
creation of cooperatives to indifference or rejection of their activities.

In Latin America, the cooperative system is sought as the instrument

appropriate organization for the improvement of living conditions of
the popular sectors and it is linked to development, the deepening of
participation, the expansion of democratic margins, the promotion of
structural reforms and the fair distribution of wealth.

In Argentina19, the cooperatives formed by farmers managed to

its first achievements towards the end of the 19th century, mainly through
of the activities carried out by European immigrants. The first
legal provisions regarding cooperatives appeared in 1889, at
to sanction a law reforming the Commercial Code.

The fundamental factors that influenced the origin and development

from the cooperatives of some provinces constitutes among others, the variety

of ethnic groups and colonization systems, remoteness from markets,

need to exchange experiences and face common risks20.

Since the earliest distinctly human manifestations, the

men, responding to a natural calling, but also seeking
protection and shelter against the forces of nature and actions of
other men have acted guided by their instinct of self-preservation in
where the action together with the other members of the community has
occupied a very important place.

19
VALERO, Luís and Others; "Cooperatives in Central America, History and Legal Framework", p.12
IV Conference of the Central American University José Simeón Cañas. Federations of
Universities of Central America and Panama. FUPAC Editions. 1st Edition, March 1979.
20
Ibid., see above, note 19, p. 13.

24
 2.1.1. The Agapes in the Roman Empire
The emergence of the 'agapes', who were the first Christians, to
the primitive era of cooperatives from a natural sense, they followed the
instincts of each person according to their needs and not according to
cooperative principles, which emerged later21.

Organization of work and production in the medieval Manor22.

Peasant groups for the transformation of milk
"cheeseries" of the Armenians and the European farmers of the Alps, from
Jura and Savoy. Organizations for land cultivation and work in
the pre-Columbian organizations, mainly between the Incas and the
Aztecs. Also the Minka and the Convite. The Reductions of the Jesuits in
Paraguay. The Community Boxes during the time of colonization
Spanish in America.

The colonies with the religious character of the immigrants in the North
America. It is also necessary to recognize the influence that some had
utopian publications in the development of cooperativism23.

2.1.2 The Cooperative Movements of the 19th Century

As a starting point for a historical vision of cooperation, it is
I need to recognize the forerunners of this ideology, that is, those
people who from the seventeenth century, both in ideas and in works,
they begin to specify the characteristics of the cooperative system. In almost

21
MEJIA CHURCH, Salvador; El Salvador: "Summary of a Century of Cooperative Movement"
essay, UES, 2004, p. 65.
22
Ibidem, see above, note 21, p.69.
23
Among them are mentioned: The Republic of Plato, 428–347 BC; Utopia
of Thomas More, 1480–1535; The New Atlantis by Francis Bacon, 1561–1626; The Journey to
Icaria by Etienne Cabet, 1788–1856. In all these works, a deep observation can be noted.
desire to organize society in a fairer and more fraternal way, eliminating the
economic order differences through community property procedure and
collective work. Ibídem, vid, supra, note 21, p. 70.

25
All the countries where cooperatives flourished started as an effort.
of the working classes. Among the most notable of these precursors are
mention the following: Peter Cornelius Plockboy; who published in 1659 the
essay that encompassed his doctrine and Jhon Bellers who made one in 1695
exhibition on doctrines at work titled: 'Propositions For the
Creation of a Labor Association for All Useful Industries in the
"Agriculture" Doctor William King and merchant Michel Derrion,
precursor of consumer cooperativism, Felipe Bauchez and Luis Blanc,
precursors of production cooperativism24.

Modern cooperativism emerged in a systematic way,

mainly in the countries of Europe affected by the consequences
adverse effects caused by the Industrial Revolution, which not only changed the
characteristics of industrial production, but it was characterized by the
the impoverishment of workers, which led to a debate
important in economic, social, religious, labor and
intellectuals25.

Both the owners of capital -or those who ran the businesses-, as well
the churches, social thinkers, and the workers themselves dedicated themselves to the
task of reflecting on the reality they were living, starting to
formulate proposals that ranged from the partial transformation of the modes
of operation to the construction of new models of society. Thus to

24
MORALES HERRERA, Oscar; "The Historical Process of Cooperativism" in his work The
Cooperative Movement of the 19th Century, p.21.
25
We can establish that within the 19th Century Cooperativism, the two most important ideologists
Notable figures are: Robert Owen and Charles Fourier. Owen the self-taught, fortunate industrialist.
since very young, an innovator in technique and social systems, in the fervor of the revolution
industrial, tried to put his ideas into practice by organizing the colonies of New Lanark,
your own country, England and the one in New Harmony in the United States, Indiana, the stock of
work and national scope trade union institutions. Fourier, French, the one of the
brilliant and ambitious conceptions, bordering on imbalance, a prolific and confusing writer
At times, he lived a comfortable life and did not manage to bring those fruits of his thought to fruition.
restless and prophetic. Ibidem, see, above, note 24, p. 22.

26
mid-19th century, the first Cooperative Principles are born, which
known as the Rochdale Principles, referring to the city of Gran
Britain in which they were subscribed. Of these principles and of these
thinkers, several trends of cooperativism emerged: production,
self-management, insurance cooperatives, among others.

2.1.3. The Rochdale Pioneers

One of the first cooperative experiences dates back to1844when
it is created in the town ofRochdale,England,the cooperative of
society consumption Equitable of the Pioneers of Rochdale26.
Simultaneously, other experiences arise inFranceSpainand others
European countries.

The so-called precursors of cooperativism were a group of 27

men and a woman, who with their thoughts, actions, and applying
practically applying his own situation the rhetorical ideas of Robert Owen about
cooperativism27they agreed to pool their small savings and start a

26
Rochdale, Northern England, was a sad city of about 25,000 inhabitants that
lived on low wages from the textile industry, where workers endured long
working hours and deplorable hygienic conditions in factories, with little safety
economic and the children had to work to help their families, moreover it did not exist
no form of social security for the sick or elderly. Ibídem, see above, note 24, p.
45.
27
Like Saint Simon, 1760-1825: Claude Henri de Rouvroy, Count of Saint Simon, was a
French socialist. He participated in the American War of Independence, where
he traveled at the age of 16. Then he returns to France to support the revolutionary process. One of
the founders of Utopian Socialism. In 1802 he published "Letters from a Neighbor of Geneva" in
the one who stated that all men must work and in 1825 'The New Christianity'
where it was suggested that the end of society should be the fortune of the largest class and
poorer. After his death, his followers promoted his ideas and constituted the
what is known as sansimonism. Plackboy and Bellers: Peter Cornelius
Plackboy, called by some the patriarch of cooperation, published his doctrine in a
essay in the year 1659. John Bellers (1654-1725), in 1695, presented his doctrine in the
Proposals for the creation of a work association for all industries
"tools and agriculture." The most significant contributions of Plackboy and Bellers to
cooperativism from the ideological perspective according to what Uribe has stated
Garzón (1993) can be summarized as follows: The idea of self-help, its
realization through the association of small economic forces to achieve economies

27
cooperative store, called consumer cooperative, to sell to its
members fundamental goods, to avoid failure they proposed to charge in
its cooperative store the current market prices, with the idea of
to return to its buyers every three months the surplus obtained
with the relatively high prices they charged28.

The group of 28 was officially organized in 1844 under the title of

"The Society of Equality," they hoped that by selling consumer goods
and services in a retail store to its members with considerable
savings, cooperativism would extend to other phases of production
and distribution as well as to other sectors of the economy, more than
ten years before being able to establish its first wholesale sales cooperative
mayor29.

During its first century of existence, the cooperative movement

grew steadily in Great Britain. They established the foundations
basics for the development and consolidation of the doctrinal body that guides
to the global cooperative movement.

Among the first great thinkers of cooperativism are

they find the garead Robert Owen,the FrenchCharles Fourierand the Germans
Friedrich and Wilhelm Raiffeisen,respectively, those who contributed the
postulates that proposed that the solution to social problems was
can be achieved through cooperation among individuals.

collectives, developing production and consumption, through economic enterprise,

democratic, eliminating intermediaries. Likewise, going from dreams to realizations.
practices; Robert Owen, was born in 1771 in Newport, Wales, England, son of artisans,
he learned the craft and then became an industrialist in the textile field. He is considered as
one of the main precursors of cooperative ideas and socialism. Ibidem, see,
above, note 24, p.70.
30
Department of Education of the American Institute for the Development of the Free Union;
Cooperatives, Mutual Aid
29
MEJIA CHURCH, Salvador. Op. cit, p.68.

28
 Robert Owen proposed that the social environment shapes the character of individuals.

men. In that sense, he promoted education and the improvement of the

living and working conditions in the factories in such a way as to eliminate the
values of competition, ambition, and forming a new morality that
it would allow the strengthening of human quality. He made reflections on
the weight of the workforce in the production process and in particular
about the allocation to the value of goods. He argued that labor should
replace money as the standard for measuring the value of things and their
exchange. This was interpreted as a confrontation with the employers and
against the proponents of laissez-faire.

Additionally, he/she suggested

30
the solution of social problems through
creation of self-managed communities based on cooperation,
combining the advantages of the countryside and the city,
they would cooperate with each other.

The first Owenite community experience took place in New

Harnony, U.S.A., with settlers who were invited to participate in the
creation of a new moral order. This experience failed because the
members were not selected correctly and to the non-application of
democratic principles in its management.

After the failure of the first experience, he promoted among the

workers, the creation of the "Cooperation Villages." In this case, the
workers through self-management would develop their experience. No
the help of the Government was essential, nor of the church, that's where it differs
from the previous experience.

30
HENRIQUEZ, Silvia Elena. Op. cit., p. 20.

29
 Owen was also a promoter of events, congresses, meetings among
cooperatives always seeking the development of production and trade
in an associative form. Thus, equitable funds for workers were created,
which consisted of the exchange of different products organized in
production cooperatives, based on working hours.
Similarly, marketing cooperatives sold these products.
using the concept of return on the operations carried out.

Charles Fourier31I propose that work should become something

attractive and pleasant, in something enjoyable that would yield benefits. In the
falansters each family would have their own apartment, built according to their
tastes and there would be cribs and community buildings, integrating in such a way that
their needs are met. Life in them should not be totally
community or communist; Fourier was in favor of respecting property.
private. That is why he disagreed with the use of technology, the
massification, centralization, and mechanization on any scale. He thought
in small communities, where proportions could be changed
correct skills and abilities, as well as the opportunities for
find the diversity of characters and occupations. Find a way to
satisfy the desires in society so that it would conduct itself in harmony
and not in discord.

Fourier, like Owen, believed that a solution could be found.

from social problems through the association of people in
autonomous colonies or industrial agricultural communities, organizing in
common production and consumption. He proposed the constitution of the
associative communities called Falansteries, whose purpose was
oriented towards the production of fruits and vegetables. These communities,

31
Charles Fourier (1772–1837), Born in Besançon, France. Idem, see above, note 24,
p.22.

30
there should be about 1,600 people, who rotated their tasks for
to avoid boredom, its management was democratic and voluntary
incorporation into it.

Louis Blanc32contributed to the development of cooperatives in France

production workers. She believed in association and communal living. Her
the proposal was based on the constitution of social workshops, at the
at first I thought that the State should support its establishment but then
declared the independence of the cooperative in relation to the government.
He proposed that workers establish organizations with autonomy,
with its own direction and with the distribution of surpluses using rules that
they will ensure equity, always maintaining capital and investments
required for permanent economic exercises33.

He also valued the importance of foresight and social services.

he proposed that they be in possession of them and not of the State. Its foundations

economic issues were in the association and the right to work. The State,
should provide capital and technical assistance to the workers, but then the
the fundamental action of the production process was in their hands with full
freedom of choice.

Phillipe Buchez34its action was focused on creating a model of

associationism based on associated work, held that action

32
Louis Blanc (1811-82), French historian and sociologist, laid the foundations for a future
socialist society.
33
HUMBERTO MUÑOZ, Carlos Burr Petri; 'Introduction to Cooperativism' Volume 1.
Pacific Edition, 1995, p.23.
34
Phillipe Buchez (1796–1865), was born in Matagmela–Petite, France. He was a journalist,
historian and politician, he is considered the father of French cooperativism. Buchez was from
Catholic thought, was a disciple of Saint Simon, from whom he separated due to his position on
to the entrepreneurs. Idem, see above, note 34, p. 25.

31
voluntary of the workers completely apart from the State or from the
businessmen and where the association would manage to free the workers only if
was firmly based on the Christian principles of brotherhood and
solidarity. He proposed the initiative to advocate for "associations of
workers guided by the theses of return in proportion to work
established and the constitution of an indivisible, indissoluble social fund
inalienable.

Buchez proposed the existence of free organizations, managed by

the same workers. Believed in the collectivist economic organization to
just like Saint Simon, but not to be carried out in the short term. He proposed
three types of intermediate institutions: a) establishment of a fund
popular credit, b) enactment of an association law based on the
work and c) a modification of the conception of property.

It initially used the concept of 'social capital' to refer to the

irreversible capital fund. He always stated that in that association, the
men associate their work, not their capital. I also pointed out that a
contract for workers are responsible for forming a capital to
common, which will be exclusively a working tool and to unite its
efforts to assert that capital for their work, under the direction of
a management appointed by the workers for the benefit of all.

Likewise, as a right of the workers, it was proposed that they should

receive a salary based on the earnings in the country and a part of the
benefits, proportional to the work done by each one. In this type of
worker associations were fundamental for training, preservation and
capital growth. The growth of capital promoted the increase of
number of members to gain more strength.

32
 Buchez was the main proponent of production cooperatives
in France. It established the rules that are found in all the
subsequent experiences are as follows: groups working together;
elected administrators from within; compensation according to established guidelines

for each job; distribution of part of the profits for the

workers in proportion to their work and another for the company; constitution
of non-repetable reserves not subject to private appropriation and the
obligation to admit as associates workers who have a certain
time in the company.

Friedrich Wilhelm Raiffeisen35founded the first credit cooperative

between 1852-1854, called Benevolent Society of Heddesdorf or Box of
Mutual Credit. This fact spread all over the world, giving rise to the
Raiffeisen boxes; the mutual credit boxes developed savings and
credit among the farmers of Germany, supply of materials and
equipment for agriculture and marketing of products. These
organizations operated through self-management.

Raiffeisen's ideas enabled the development of cooperatives

of rural credits according to the following guidelines: free association,
free administrative functions, limited scope, demand for
moral qualities of the associates, absence of equity capital,
joint and unlimited liability, the destination of profits to funds
common, indivisible reserve funds, strict control of investment
the loans.

35
Friedrich Wilhelm Raiffeisen was born in Han, Germany in 1818; he worked in administration.
public and served as mayor and businessman, he is known as the father of the
rural cooperation. Ibidem, see above, note 34, p. 28.

33
 Charles Gide36representative of French cooperativism in various
international congresses. It did not belong to the era of the pioneers but
it has a prominent position in modern cooperativism. It was a
outstanding leader of consumer cooperativism, powerfully influenced in
the concepts that shaped world cooperativism; and was one of the
main promoters who, with their writings and positions, elevated Rochdale
to the origin category of modern cooperativism; furthermore, it systematized
the rules of the English cooperatives including those of Rochdale creating
a doctrinal content, elevated them to the category of principles.

Likewise, he formulated an action program aimed at creating a

social economic system or cooperative republic. In this, the
consumers, associated with cooperatives would organize production and the
other economic activities in order to satisfy their own
consumption needs and non-profit.

In his cooperative program, he suggested the development of cooperativism.

in stages: in the first stage, it is necessary to establish consumption warehouses

to operate large-scale sales, in the second stage, produce everything

what was necessary for society and the third, to dominate production
agricultural, founded the School of Nîmes to spread his thought and suggested the
multicolored flag that was adopted by the cooperative movement
worldwide.

Hernán Schulze Delitzch37promoted cooperativism in Germany

directing it towards cooperative credit for productive purposes, he was the author of
first cooperative legislation project promulgated by the parliament of
Prussia 1867 and founder 1852 of a small credit entity that later

36
CHARLES, Gide, 1847-1932, Born in Uzés, France, was a professor of political economy.
in universities of France. Ibid, see above, note 35, p. 29.
37
Idem, see above, note 34, p. 37.

34
it was the beginning of the cooperative movement of popular banks. The work of
these organizations were focused on serving artisans and
small independent business owners from the cities.

2.1.4. Emergence of housing cooperatives.

The housing cooperative is a type of cooperative whose purpose
The primordial task is to provide its members with housing, premises, and other goods.
properties, acquiring land to build and develop it. They are seen as
housing development companies, and they have consolidated as one of the
main means to access decent housing.

The objectives of this type of cooperatives are: strengthening and

consolidation of housing cooperatives through training in
I return to this model, in addition to facilitating access to decent housing and a
suitable habitat for the low-income rural and urban population
economic38.

The origin and development of Cooperativism cannot be observed in

programmatic form, or establishing segmented periods in time,
but many factors can be mentioned that are of great influence and
that help to boost these in the country39.

It is in the middle of the 19th century where the origin of

cooperativism as functional institutions; since the economy
after the colonial period it operated thanks to the export of indigo,
but it is in the late 19th century when indigo enters a crisis in the market
worldwide, replacing coffee as an export product, in 1860 it
expressed that the liberal power dictates the first law for the extinction of communal lands and is

38
Available at: www.fundasal.com, 'Urban Letter, Draft Housing Law'
Social Interest”, p. 9. Consulted on February 9, 2012.
39
MORALES HERRERA, Oscar; "The Historical Process of Cooperativism in El Salvador,
"an associated approach." IV Conference FUCAP; San Salvador. 1978, p.32.

35
I started in the country the division of rural property, given that the economy
national had an eminently agricultural character, thus determining the
urban development of the country and artisanal activities are evolving
according to agro-exploitation40.

The misery and the situation of inequality that plagued the population
Salvadoran, they set the standard for individuals to become aware of class.
and organize themselves into cooperative associations, that is, the lack of the
basic needs of man and his families, leads to the option of
search for objectives that improve their living conditions; becoming
these, engines that drive cooperative organizations, added
to this harsh reality, the ideological foundations are established by
intellectuals of the time41.

It is in the late 19th century when the role of the State begins to take
strength, always within a liberal conception, playing as a piece
important both in the economic, social, political, and legal life of the country,
promulgated at the beginning of the 20th century, the first legal regulations that govern

the creation and operation of cooperatives, thus, that in the year

1904, cooperatives are institutionalized in the Commercial Code.42
a section they call 'On Cooperative Societies', is
transcendental to analyze this point discreetly, as it can be noticed that to
the cooperative associations, they did not want to conceptualize them as what
are, with the generally accepted principles, incorporated most of
they, by the Rochdale Pioneers, such as self-help, assistance

40
HERNÁNDEZ ROMERO, Op. cit, p.35.
41
It is of great importance to note that in the year 1886, at the University of El Salvador,
the first manifestation of Cooperativism is presented in the ideological context, with the
implementation of the first Chair of Cooperativism, incorporated as a subject
in the Faculty of Law and Social Sciences. SANTA CRUZ, Alberto. “History of
Cooperativism in El Salvador, in July 1993, Op. cit., p. 40.
42
Idem, see, above, note 41, p.53.

36
mutual, democracy, freedom, voluntary adhesion, absence of profit, among
others, developed in the following chapter sought to give it a purpose
different from theirs, that is to say, they framed them in the Commercial Code,
granting them then, the purpose of commercial companies, was this
a subtle way of denying cooperatives, their nature, their essence, already
that the oligarchic sectors considered them attacks against the order
pre-established.

It is essential, in this space, to refer to some of the first

cooperative manifestations, in 1904, the first cooperative is organized,
made up of a group of shoemakers, known as 'Cuesta de Palo'
Green43In 1917, the Cooperative of the
Workers' Society of El Salvador federated for the purpose of Mutual Aid,
Savings, Morality, Education, and Charity. Not refraining from expressing that
It is approximately in 1930 that a worker's uprising takes place,
peasant, indigenous, which was overshadowed by the current government, with a
number of deceased of 32,000, who intended to organize themselves in
Cooperatives to minimize poverty and lack of work at that time, is
just as the cooperative movement is weakened by the defeat of the
insurrection and the subsequent repression.

Despite the unfavorable context faced by the people

Salvadoran, he insisted on the creation of cooperatives, appearing in
1938, based on the Commercial Code of 1904, the foundation of the
Cotton Cooperative, due to the critical situation of farmers
dedicated to cotton production, this cotton cooperative is established
of Limited Liability; in which cooperatives had been organized
of medium and large producers whose aim was to obtain profit.

43
Ibid, see above, note 41, p. 60.

37
 El Salvador has its roots in Savings and Credit Cooperatives.
in the 1940s, as these no longer constitute
production cooperatives, but rather savings and credit ones, and they are aimed at
small and medium property owners, aimed at competing with the
trade union organizations, it is from 1940 onwards that the
The state prioritizes the establishment of rural credit unions and is organizing.
the First Rural Credit Bank in October 1940, which is integrated into the
Federation of Credit Unions in 1943, under the protection of the Credit Law
Rural, it should be noted the fundamental nature of this Law, as it encompasses the duty

of the State in promoting the development of Cooperative Societies and the same
time of the Credit Institutions.

Around the year 1950, cooperativism in general and that of Savings and
Credit is increasingly gaining ground as the state...
Salvadoran, takes on a leading role, and intervenes with more emphasis in life
economic and social situation of the country, which is promoted by the new Constitution

Politics of the Republic, of 1950, in combination with the support it offers

American aid and the same Catholic Church.

The Section of is created in the Ministry of Labor and Social Welfare

Worker Education, which developed pedagogical programs
among the working class, having included in its activities the
to create cooperative awareness, in 1953, the 'section of
"Cooperativism", affiliated with the Ministry created by the Archdiocese, these
they legalized Cooperatives according to their nature since the Catholic Church
it played an important role in the economic, social, and political life of the country,44. Se

also founded the "Lechera de Oriente Cooperative of Responsibility"

Limited

44
Ibidem, see, above, note 41, p.2.

38
mercantile society, governed by the Commercial Code. The creation of
Cooperatives, and the Cooperative movement gained strength during the
administration of Colonel Julio Adalberto Rivera, since he sent to
abroad to a good number of people to study what concerns
Cooperativism.

Cooperativism in the 1960s in Central America

had a noticeable push and impact on mitigation and displacement
temporal of social conflicts in Honduras, El Salvador, Guatemala and
Nicaragua, that is especially in countries where the degree of
social polarization was and is acute. It was with the triumph of the Cuban Revolution,
that compels the government of the United States of America to put into action
at the continental level a counterinsurgency strategy within the framework of the
Alliance for Progress, within its policy of isolation of said
revolution45.

The State found itself in the need to normalize in order to guarantee the
existence of Cooperatives and have a specialized governing body that leads
and coordinated the cooperative activity in the country, and that is how the was created
State Organization, the law on Cooperative Associations is enacted, according to
Legislative Decree No. 560 of 12/25/69, the Salvadoran Institute is created
Cooperative Promotion INSAFOCOOP; with the purpose of centralizing in a
sole specialized institution the function of directing and coordinating activities
Cooperatives; which began to operate around the year 1971; give them
attributions to promote the organization of all types of Cooperatives
national level, in 1972, the national advisory commission is organized
cooperative movement of fish production, as a consulting body
from INSAFOCOOP.

45
International Cooperative Alliance Publication, 'The State of Cooperatives in El'
Salvador, San José Costa Rica, Annual Report, November 1993, p.45.

39
 This period is characterized by the promotion of partnerships.
employee and wage worker cooperatives, for the purpose of
obtain financing for personal or family needs,
through saving and credit, as well as by supplying consumer goods
personal and family through the so-called consumer cooperatives.
Also during this period, the carriers dedicated to the service of
collective or selective character, they developed their cooperative associations
to obtain spare parts, supplies or equipment, they even went as far as to lend
the collective or selective transport service provided by service companies
to the public, also cooperatively owned.

Starting in 1979, cooperativism receives a new boost as a result of

Coup d'état and the entry of the Revolutionary Government Junta, which
three new reforms are enacted with it that partially protect the
development of the different branches of cooperativism, these are: the Reform
Banking, Agricultural and Foreign Trade. The Agricultural Promotion Bank,
with a structure that includes the section on cooperatives which
it would have three units: agricultural, educational, and accounting, the Bank of
Agricultural Promotion also establishes rules that will regulate the
financing for cooperative associations.

It is with the agrarian reform, promoted in the eighties, that the

agricultural cooperativism gains strength, as it becomes the axis
fundamental to the transformation of agriculture in the country, arises in the
the moment that the last civil war in El Salvador begins. It can be illustrated
better in the section 'The Current Reality of Agricultural Cooperativism in'
"El Salvador" maintain that the changes that occurred in agriculture in
The 1980s allowed for the emergence and development of new
forms of organization of production, among which it can be located
the traditional cooperatives, the agrarian reform cooperatives, the
40
small producers associated with decree 207, and in the nineties,
land-equipped producers, benefited through the transfer of
lands resulting from the Peace Agreements46.

In order to defend the interests of the Cooperative movement

Salvadoran, the Confederation of Cooperative Associations is established.
from El Salvador COACES de R.L. is made up of federations
cooperatives from different economic sectors, but they are cooperatives of
agricultural production, in 1986, through COACES, achieves the
promulgation or approval of a new Cooperatives law, in which it
achieves the participation of the independent Cooperative movement in the
elaboration of the same; something to highlight is that among the
years 1984-85 and 86, the Cooperative movement achieve recognition for
The Salvadoran Government and internationally as a Social Force.

2.1.5. Europe
The cooperative movement spread throughout Europe after
successfully started in Great Britain, emerging as
Consumer cooperativism, whose development spanned not only Europe
Continental, but to the rest of the world. The significant growth must
to attribute not to the importance of economic power, but to the value of ideas
and to the faithfulness that these initiators had.

The cooperatives were very successful because they were based on the
Rochdale experiences, which were the model for similar cooperatives
in other European countries. Although in the same country, one could observe
different forms of cooperatives. For example, France was distinguished by
the organization of production cooperatives among workers, Germany and

46
HERNANDEZ ROMERO, Pedro Juan; "The Current Situation of Cooperativism in the
Salvador" San Salvador, 1991, p.23.

41
Italy for its development of credit cooperatives that provided to the
workers means to save and obtain loans47.

The economic situation in Sweden, for example, favored development.

of the same type of cooperatives. In the 19th century, there were no laws against the

Trust, so that the production and distribution of many goods of

consumption was controlled by monopolies. Hence, consumers
they could obtain many advantages with the establishment of stores
cooperatives. Those cooperatives expanded their production operations.
and banking activities.

As consumer cooperativism spread throughout the Great

Britain, and was passing to other countries of the European continent such as France,

product and work cooperatives were thriving at that time with

the example of the "Falansterio", founded by Juan Bautista Godin. In the countries
Scandinavians who not only developed consumer cooperativism
but also in other areas such as housing cooperativism and the
cooperative insurance and in the same way in other countries, appeared almost
simultaneously new forms of cooperation in the economic field and
social.

Under the inspiration of Friedrich Wilhelm Raiffeisen, appeared in

Germany the credit cooperatives aimed at farmers and more
afternoon, the cooperatives for the supply of inputs and for the
marketing of agricultural products. Likewise, with the direction of
Hernán Shulze-Delitzsch, in the same country, the movement of the began.
called Popular Banks, that is, the Savings and Credit cooperatives,
mainly aimed at serving craftsmen and small industries

47
Cooperatives (mutual aid) IADSL 1971. Published by the Department of Education
from the American Institute for the Development of the Free Union, 1925, Washington DC. 2006,
p.36.

42
from the cities for an improvement of the economy of the artisans
providing them with credit and giving them greater opportunities to grow their
business48.

In the other countries of Central and Eastern Europe, ideas and

cooperative practices spread rapidly; for example, the first
cooperative of Czechoslovakia, was founded in 1845, only one year
after the Rochdale one. Other famous cooperatives include
sanitary ones from Yugoslavia, the agricultural and artisanal ones from Hungary, those from

consumption in Poland, grouped in the organizations "Spolem".

In Spain, some of its characteristics are also applicable.

in Portugal, consumer co-operativism, which appeared in the late century
past, has two orientations: in the north, mainly in Catalonia, it
consumer cooperatives are developing; in the center and other provinces the
the main focus corresponds to agricultural cooperatives.

2.1.6. Latin America

In Latin America, cooperatives have existed for more than seventy
Over the years, its importance and vitality have evolved as time passes.
as there are aspirations and efforts to achieve a better
economic development. Likewise, emphasis has been placed on the need for
the formation of cooperatives, especially with organizations such as the Commission
Economic Commission for Latin America and the Caribbean of the United Nations, and the Council

Inter-American Economic and Social Organization of the States

Americans.

48
FLORES ZELADA, Wilson Francisco and Others; "Associated-Legal Effects of the
Application of Legislative Decrees No. '747' and '719' in Three Cooperative Associations
from the Agrarian Reform of the Central Zone in El Salvador During the Period Covered:
1997-2004. 2005, thesis Faculty of Law and Social Sciences, University of El
Salvador, pp. 25, 32, and 49.

43
 Currently, some countries such as: Argentina, Venezuela, Ecuador
and Chile has cooperatives of various kinds, which were taken
as a model from other parts of the world, but adapting them to the
needs of each of the countries. In general, those that obtained and
those that are successful are the ones that organized themselves and based strictly on the

principles of cooperativism.

Some of the most prominent cooperatives in Latin America are the

organized to meet the economic needs for affordable housing and
to take advantage of and colonize new cultivation lands in the interior of each
country, trade unions and labor associations play a very important role
important in the development of the cooperative movement in Latin America49.

Focusing on the positive relationships of this cooperative movement,

Historically, it can be stated that Brazil, Mexico, and the United States50,
they have founded Banks whose exclusive purpose is financial assistance for the
cooperatives thus bring forth a new era in cooperativism,
contributing to its strengthening and also raising awareness of those who
it is the cooperative movement51.

According to the author Antulio Parrilla Bonilla52in his work: 'Cooperativism,

Theory and Practice" states: that the first Latin American cooperative, such
as it was thought, it was not established in Argentina, but rather it was established in

49
Idem, see above, note 49, p. 39.
50
Preliminary version of the paper to be presented at the V Meeting of Researchers
Latin Americans in Cooperativism, held at the University of San Pablo, Ribeirão
Pretoria, Brazil, from August 6 to 8, 2008.
51
BONILLA PARRILLA, Antulio, "Cooperativism: Theory and Practice". University Press,
Spain. 1987, p.23.
52
Monsignor and former professor of Cooperativism at the University of Puerto Rico.

44
Puerto Rico in 1873; and the second Cooperative in 1898, in
Latinoamericana was established in Pigue, Argentina.53.

For a period of twenty-five years starting from 1898, the movement

the cooperative was developed by the initiative of European immigrants, who
they were very familiar with the company's purposes and means
cooperative for coming from countries where cooperativism had already existed

reached full vitality. During this stage, there was no assistance from the
national governments, showing indifference and even opposition. Not
there was legislation that legally recognized cooperatives. So much so
that until the 1930s, estimates didn't even exist
statistical data on cooperative efforts by the current governments.

The first Cooperative Law in Latin America54was born in Puerto Rico

in 1920. It is at least the first statute that aims to facilitate the creation
from a cooperative movement, a law was approved in Argentina in 1926
special cooperatives that can be considered a model. Then others
countries adopted general or special cooperative legislation. Thus in
Colombia in 1931, Brazil and Chile in 1932, Ecuador in 1937, Mexico in
1938, Uruguay and Paraguay in 1942, Peru in 1944. Through these laws
the cooperatives were legally recognized and certain granted
exemptions that favored them.

Among the institutions that have historically helped in some way

Forms of cooperative development in Latin America are: The Organization of
Cooperatives of America, OCA, OEA, The International Cooperative Alliance
ACI, The Cooperative Federation of Sweden, The union work of Cooperativa

53
BONILLA GRILL, Antulio; "Theory and Practice." Op.cit, p.53.
54
Ibidem, see above, note 49, p.15.

45
Spain, Israel, England, Denmark, and West Germany, the League of
Cooperatives of the United States, the National Credit Union Association CUNA
and others more.

In Argentina, cooperatives are governed by National Law 20,337.

the role of cooperativism in Argentina is very important because it
the solidarity sector is constantly available to the community
for whatever is necessary. The state control agency is currently
the National Institute of Associativism and Social Economy - INAES.

Currently, Argentina has more than 20,000 cooperatives

different types.55Likewise, the government provides support to companies.
to help them create housing and consumer cooperatives, but
especially to companies recovered by their workers, who
they occupied and put into operation after being abandoned by the shareholders of
the same. These companies, primarily factories, have mostly
preferred to become self-managed cooperatives.

In Chile, there are a large number of small and medium-sized

cooperative companies in the agricultural and livestock world receive support

state through the National Institute of Agricultural Development, institution

created for the development of agriculture during the agrarian reform of the
1960s; however, the most successful agricultural cooperative in the country Colún; is
prior to that process.

The body responsible for supervising cooperatives and promoting

the growth of the cooperative sector in Chile, is the Department of
Cooperatives, Ministry of Economy.

55
Idem, see above, note 49, p. 17.

46
 Cooperative organizations inVenezueladata since1890
when the first of them was founded in the townAndeanfrom Chiguará in the
Mérida state, as a savings and credit entity. Towards1900in the east
of the country, in theIslandfrom Margarita, specifically in the city ofPorlamar
a cooperative of artisans is founded.

Already in1910the Cooperative Law is enacted, with great

similarities with the French.1919cooperatives are incorporated into
Commercial Code as commercial companies, in section X Of the
Cooperative Societies with a single article referring to the Law
corresponding.

In 1937, President Eleazar López Contreras promoted the

cooperativism with ordinances to the other Presidents of States (now
Governors) to promote the establishment of this type of corporations in
the regions56In 1944, the State is obliged to promote and protect the
cooperativism through the Cooperatives Law enacted during the
exercise of President Isaías Medina Angarita. In1960is founded
Tacuato Cooperative in Punto Fijo. Subsequently, in 1966, it was
the General Law of Cooperative Associations was enacted, which
deepen the obligation of the State in the promotion and development of
cooperativism, creates the National Superintendency of Cooperatives,
known by its acronym SUNACOOP.

2.2. Housing Cooperatives in El Salvador

The importance of cooperativism is linked to development
economic and social situation of the country, but the Salvadoran reality has shown that the

56
Ibid., see, above, note 49, p.19.

47
housing is used as a commodity, thus a family necessity
fundamental is satisfied through the buying and selling of real estate. The
the right to a dignified habitat is relegated to economic capabilities for
acquire a house57Under these rules, the majority of the population
is excluded from this right and promotes the emergence of the
precarious popular settlements with deficient basic services or
nonexistent.

The Constitution of the Republic recognizes the right to housing.

worthy for all Salvadorans, establishing in the
Article 119 states: "...the construction of housing is of social interest. The
The state will seek for the largest number of Salvadoran families to reach
to be owners of their home.

However, throughout its history as a Republic, the State

Salvadoran has not taken up this responsibility again, and by leaving his satisfaction

to the rules of the market -especially during the last 20 years- there
they facilitate inequalities, the growth of marginal settlements
in the cities and many families without adequate housing inside the
country.

By the year 2007, the number of cooperatives and groups increased.

pre-cooperatives at eleven, and to date there are thirteen groups that are present
funded and integrated into a space called Coordinating Table of
the Housing Cooperatives for Mutual Aid. FUNDASAL, through the
which presents the results of the baseline established in June 2008;
which takes the year 2007 as a reference, in the eleven cooperatives that are
working under the technical guidance of the Foundation, as well as

57
Ibidem, see above, note 39, p.15. Consulted on February 10, 2012.

48
updated information until the year 2009, revealing the situation
general about these groups as well as the perspective of this type of
cooperativism in El Salvador.

These cooperatives undertake other actions to improve their environment or

to achieve a productive project, while seeking better living conditions
for the families of the associates, allowing them to have access to the
economic and social benefits that meet their needs.

It cannot be overlooked that there is also a benefit for the

community, that is, the growth of the Cooperative will allow the
innovation of services such as: consumption, provisioning, and others
economic benefits that lead to the very improvement of their
associates.

49
 CHAPTER THREE

3. CONCEPTUAL, DOCTRINAL AND JURISPRUDENTIAL FRAMEWORK.

SUMARIO:3.1. Conceptos relativos a las cooperativas de vivienda 3.2. Las Cooperativas

Characteristics
Classification of Cooperatives
El Salvador 3.4 Savings and Credit Cooperatives 3.5 Concepts related to the right to a
vivienda digna 3.6 El derecho a una vivienda digna 3.6.1. Características 3.6.2. Naturaleza
legal
of a decent housing 3.7.2. The environment as part of a decent housing 3.8 The
obligations of the State that arise from the right to a dignified housing 3.7. The type of housing
que protege el derecho a una vivienda digna 3.7.1. Parámetros de una vivienda digna 3.7.2
The environment as part of a decent housing 3.8. The obligations of the State that arise
del derecho a una vivienda digna 3.9. La Federación de Cooperativas 3.9.1. Funciones 3.9.2.
Competencies
Competencies
Characteristics 3.13. The
Economía Social 3.13.1 Surgimiento histórico 3.13.2 Caracterización 3.13.3 Principios 3.14
The Housing Cooperatives in the Social Economy 3.15 Current difficulties of the
housing cooperatives 3.16 Challenges of Housing Cooperatives.

In this chapter, the doctrinal, conceptual framework is covered

jurisprudential that refers to all the doctrine applicable to Cooperatives and
the importance of the right to decent housing as
fundamental right for people. Just as we also make known
everything related to Cooperatives their characteristics, classification,
principles, values, and thus we also convey what is related to the
Housing Cooperatives that is what pertains to our topic, the
Housing Cooperatives with their characteristics and the relationship that exists with
Others. This chapter also addresses the Confederation.
Cooperative, the Cooperative Alliance and the Cooperative Federation giving to

50
know their functions and competencies, also how the Social Economy
begins to emerge over time, its characterization and its principles.

To better understand the concept of Cooperative, it is

It's important to have a clear understanding of the general terms that it comprises.

understood as Cooperative: 'Group of members for the same purpose.'

Legal entity formed by them58Thus, ”the integration of these
associations constitute an inherent individual right of people, but
that it can only be exercised collectively, through which it seeks
the creation of an entity with its own legal personality, or to adhere to
an already existing one, for the achievement of one or several common interests.

This is how we began to demonstrate that the concept of Cooperative

It is extensive and more so the topic that concerns us, which is the Housing Cooperative.

3.1. Concepts Related to Housing Cooperatives.

Cooperative is understood as: 'An association of people, voluntary and
freely democratic and moral that seeks its economic emancipation
through a joint venture; which will provide profits not according to the
contributed capital, but according to their participation in the formation of
surpluses59”

In general, acooperativeit is an association of individuals or

legal entities that have associated economic interests or needs
common, develop a business activity, distributing themselves the
results that it produces among its associates.

58
CABANELLAS, Guillermo, "Elementary Legal Dictionary". Heliasta Publishing. Edition
2003, p. 393.
59
Idem, see above, note 58, p. 394.

51
 A housing cooperative60it's a type ofcooperativewhose object
social is to provide its membershousing,locales and othersgoods
real estateacquiring land to build and develop it. The cooperatives
of housing, such as housing development companies, have consolidated
as one of the best ways to access affordable housing and
quality.

Objective factors61that are involved in their productive system and in their

legal regulation thus makes it clear. It is one of the most
representatives of the callsocial economythat's why it is said that
a housing cooperative or managing society of cooperatives
housing aims to provide its members
cooperativists housing and other real estate. This system is considered
as one of the best ways to access quality housing
an affordable price.

3.2. The Cooperatives.

They areassociationsopen, flexible in fact and cooperative law
of the social and participatory economy, andautonomouswhere thepeoplehimself
join together to form aorganizationdemocratic, by means of a process and

voluntary agreement to address their common needs, where

theadministrationand management must be carried out in the following manner

that everyone agrees topartnersgenerally in the context of

themarket economy oh themixed economyalthough the experiences
cooperatives have also been established as a complementary part of the
planned economy.Their intention is to address their needs and
60
URIBE GARZON, Carlos; "Bases del Cooperativismo". Coocentros Editions. 1978, p.28.
61
HUMBERTO MUÑOZ, Carlos Burr Petri; 'Introduction to Cooperativism'. Publishing House of
Pacifico 1955, p.56.

52
common economic, social and cultural aspirations using
a company. The diversity of needs and work aspirations,
consumption, joint marketing, teaching, credit, etc.; of the
partners that make up the corporate object or corporatized activity of
these companies define a very varied typology of cooperatives62.

3.2.1. Characteristics.
Among the characteristics that cooperatives generally present
we have:

They are entities composed of groups of people with the purpose of

attend to their own economic needs: The cooperatives provide
services to satisfy one or more economic needs
experienced by more or less numerous groups of people.

They are based on self-effort and mutual help: people working.

united for the solution of their problems, they are groups of people who
they voluntarily associate to do something they could not do individually
to do.

They include social elements and economic elements, that is, the
association and the cooperative company: it is essential that they seek
the objective for which they are born, which is to satisfy needs or solve
common problems across the organization and functioning of a
own economic enterprise, which can replace, coexist with, or compete with
the other companies. They are governed by certain principles or norms
fundamentals. They are administered democratically.

62
Ibid, see, above, note 61, p. 100.

53
 3.2.2. Values of Cooperativism.
Cooperativism, as a movement and doctrine, has six
basic values, which must be promoted and encouraged among their
members, these were adopted at the XXXI Congress of the Alliance
International Cooperative Alliance; the existence of these Cooperative values,
In 1844, they appear for the first time in the statutes of the Cooperative.
from Rochdale, England and have been transformed into the ACI congresses
from Paris in 1937, Vienna in 1966, and Manchester, England in 1995 where,
The following values of the cooperatives were precisely approved:

Mutual Aid: Cooperators believe that personal development only occurs

can achieve with the union of other people, working together for a
same end.

Responsibility: Members are in charge of providing for their

cooperative and ensure its operation and public independence
private.

Democracy: Cooperators participate democratically, making

decisions, voting and working.

Equality: The foundation of cooperatives is their members. They have

right to participate, to be informed, to be heard, to make decisions
in an equal manner.

Equity: It refers to the way members are treated within the

cooperative and the distribution of the surpluses based on the
participation.

54
Solidarity: The cooperators and the Cooperatives stand together,
.
struggling to achieve a better quality of life63

Both these cooperative values and the principles are found

contents in the declaration or statement of cooperative identity.

3.2.3. Principles of Cooperativism.

The cooperative principles are guidelines through which
cooperatives put their values into practice, as principles are a
complement of the indicated values, they define the value of the person
humana implementing mechanisms that ensure its respect at all times and
the reason to be a cooperative member.

The cooperative principles are the basic rules of

functioning of these organizations. Which is indeed important
That they are followed to the letter is even more important than following them in spirit.

in the activities that cooperatives carry out day by day. These principles, when
just like the values, they have been updated over the years, being in
the year 1995, when a century since the creation of the Alliance was celebrated
International Cooperative, the Congress is held and it was agreed to reformulate the
cooperative principles, remaining as follows64:

1. Principle of free adhesion and voluntary withdrawal, that is to say 'The

cooperatives are voluntary organizations, open to all people

capable of using their services and willing to accept the responsibilities

63
RUBIO REYES, Marta Evelyn; Commentary on the General Law of Associations
Cooperatives, Thesis, Faculty of Law and Social Sciences Dr. Y Pbro. Francisco
Menéndez, from the "Dr. José Matías Delgado" University, 1987, p.22.
64
TheCooperative Principles: New Formulations of the Cooperative Alliance
InternationalVolumen3 from the University (AECOOP-Aragon). AECOOP Editions. Aragón,
1977, p.56.

55
what membership entails, without social, political, religious, or racial discrimination
or gender.

This means that no one can be forced to be part of

a cooperative, since admission to it must be absolutely
voluntary and free. The importance of this is aimed at that the
associates are committed in such a way that they support their cooperatives.
The voluntary entry into a cooperative logically corresponds to the
voluntary withdrawal or abandonment of it.

The entry to a cooperative must be open to all those

people who request it and meet the established requirements,
for this reason it is said that the freedom to enter and leave a cooperative is not
absolute, since the need to restrict access sometimes arises
a cooperative, for example, for technical reasons, as could be the case
from an industrial production cooperative that can only provide work to a
a determined number of workers; for geographical reasons, such as it could be
the case of rural cooperatives; for moral reasons, such is the case if it
notable misconduct of the applicant observed; or directed towards a guild
specific professional, as could be the case of medical cooperatives or of
accountants; or even for strictly material reasons, as is the case of
housing cooperatives.

2. Principle of organization and democratic control, that is: 'The

cooperatives are democratic organizations controlled by their
associates, who actively participate in the definition of their policies
and in the decision-making process, where the selected individuals for
representing and managing cooperatives are accountable to the
, where each member must have equal voting rights." This
The principle summarized in the phrase: 'one man, one vote', and it is especially

56
this principle that distinguishes cooperatives from private companies
mercantile nature, where the partners who have more capital
those who have contributed more votes in the General Meeting of Associates or Shareholders,

according to the case. The people chosen here to represent and manage the
cooperatives are responsible to the other members.

3. Principle of the economic participation of the members, that is to say:

Each member contributes equitably to the capital of their cooperatives
they manage said capital in a democratic manner, where at least one
Part of said capital is common property of the cooperative.

The contribution per member must never exceed ten percent of

social capital, and it can be greater than this but never more than twenty percent.
one hundred, this whenever it is authorized by the General Assembly of the Cooperative,

what seeks for the contributions to be made in an equitable manner. Also

members have the right to decide how to distribute the
surpluses or economic benefits obtained by the cooperative. Therefore,
the surpluses are allocated to the development of the cooperative, that is to say
that these surpluses are reinvested in the cooperative; they are returned to the
associates in proportion to their contributions or their participation in the work
or to be allocated to any other purpose approved by the partners.

4. Principle of autonomy and independence, that is: "They are

autonomous mutual aid organizations, managed by their members,
therefore if they reach an agreement with other organizations including the
governments do it freely and in terms that ensure the
democratic control by its members and maintain autonomy of
the cooperative.

Cooperatives, despite the fact that they seek independence from the
Governments and other institutions must seek to have open relationships and
57
clear with these, as governments determine the legal frameworks within
of which they can and must function, and with this they can benefit or
to harm them with the legislation and policies that may be implemented. Neither
they must lose their autonomy and freedom of action in case they reach
economic agreements with public or private companies.

5. Principle of education, training, and information, that is: 'The

cooperatives provide education and training to their members, leaders,
managers and employees so that they can effectively contribute to development
about their cooperatives, they also inform the entire community, particularly to the
young people and opinion leaders, regarding the nature and benefits
of cooperativism65This Principle is also known as promotion
of cooperative education66.

That the Rochdale cooperative had an interest in education

of its members, in the broadest sense, is not strange, for many of
The Pioneers were disciples of Robert Owen, who was encouraged by
I desire not only to solve the material problems of the oppressed, but to
help men to be better human beings, morally speaking;
Well, he sought to develop altruistic, supportive human beings.
responsible, disciplined, lovers of work, honest, etc., so that
each of them rises to a full personal life and, all together, to
a broad social life.

Of course, that training must also reach the

employees or managers who will work in them, to engage their minds
and fully understand cooperative thinking. Training

65
Ibid., see above, note 64, p. 60.
66
The educational objectives were well stated in the statutes of the cooperative of
Rochdale, in its article 1, point 5, spoke of 'Organizing the powers of production,'
distribution, education and administration...

58
it means ensuring that everyone who is part of a cooperative has the
skill needed to effectively face your responsibilities.
Finally, the principle states that cooperatives have the responsibility to
inform the entire community, especially the young people and the leaders of
opinion, on the nature and benefits of cooperativism, in order to
appreciate, support the cooperative movement, and be seen as a
alternative to private companies that resemble them.

6. Principle of Cooperation among Cooperatives, that is: 'The

cooperatives serve their members more effectively and strengthen the
cooperative movement when working in an integrated way in structures and
local, regional, national and international organizations.

This principle is also known as that of 'promotion of the

"cooperative integration", included, under that name, in the list of such
principles in the city of Vienna, Austria, in the year 1966. That integration
it must be made for union or representation purposes; for purposes
educational and also with a view to economic strengthening, which
they will achieve through a practical and rigorous collaboration among themselves,
to achieve its full potential.

The integrationist process involves cooperatives from various sectors. Thus

through local integration they can achieve a lot, but their vision
it should be to expand its operational scope and achieve the
large-scale organizations, so they must identify ways to
to achieve these goals while protecting the interests of its members;
they must be aware of the need to strengthen their
organizations and support activities. It is easy to find the interests of
one or several cooperatives in particular, not thus the interest of solidarity and
cooperation among cooperatives.

59
 7. Principle of interest for the community, that is: 'Cooperatives
they work to achieve the sustainable development of their communities, through
policies approved by its members.

Cooperatives must be closely linked and not forget their

communities must have a commitment to society, seeking their
sustained development, they should not be development groups solely towards
inside but also outside, and seek to fulfill the responsibility
to collaborate with communities to develop them either way
economically, socially or culturally. Likewise, one of the essential aspects
that interest in the community must be the one that relates to the environment
environment; due to the great deterioration of the planet, as pollution has
reached levels never imagined. But it is the associates who
they decide with what degree of intensity and how to carry out their
contributions to the community.

The importance of both principles and values is life.

that these give to the cooperative movement, since its origins seeks
to prioritize the value of a person for their dignity as a human being and not as a
economic object. Thus, cooperativism seeks the development of man, with
the values of cooperation, equality, justice, respect, and work.

3.2.4 Classification of Cooperatives.

In the Salvadoran context, there are different types of Associations.
Cooperatives, which can be classified67under different criteria, already
either for their corporate purpose, for the object they are engaged in, and for integration
of these. Briefly, these criteria are explained as follows:

a) The corporate purpose.

67
HERNANDEZ ROMERO, Pedro Juan; The Current Situation of Cooperativism in The
Salvador; p.157.

60
 It obeys the activity to which a certain one is dedicated.
Cooperative Association, whether in accordance with the needs it
members have and for which they joined said cooperative.

Thus the object to which they are dedicated according to Title I and Chapter II of the Law

General of Cooperative Associations68and Title VI of its regulations, is

they group the 44 cooperatives into three classes: production; housing; of
services, defining them as follows:

Production Cooperatives: These are those integrated with producers.

who come together to produce, transform, or sell their products in common,
which seek to market the products of their members.

Housing Cooperatives: They are those formed by people who

they associate to obtain housing through mutual help and effort
own, that is to say they seek the acquisition of real estate either for
construction of housing or subdivision of said properties, or improve the
already existing, either to sell them or lease them to their members.

Service Cooperatives: Those aimed at providing

services of all kinds, preferably to its members, being
mainly the needs of these that seeks to satisfy, with the
purpose of improving environmental and economic conditions to satisfy
their family, social, occupational, and cultural needs.

According to this classification, we can also say that these types

they are subdivided as follows:

68
General Law of Cooperative Associations of the Republic of El Salvador. Decree
Legislative No. 339 of May 6, 1986, Published in the Official Gazette number 86, Volume 291.

61
 The production cooperatives include six types: Of
agricultural production, livestock production, fish production,
of agricultural production, of artisanal production, and of production
Industrial or agro-industrial.

Service Cooperatives can be: savings and credit, of

transport as users, workers owners, of consumption, of
professionals such as assistance, advisory, consulting, insurance,
of Education, of supply, of marketing, of
school and youth.

Housing cooperatives are not subdivided into types according to the

General Law; however, some authors establish two types:
Limited Duration Housing Cooperatives, Housing Cooperatives
of Unlimited Duration69.

3.3 Cooperatives According to the Activity They Perform in the

Salvador.
Primary Sector70These cooperatives encompass the group of activities
related to agriculture, livestock, forestry, and exploitation of

69
Idem, see, above, note 67, p.158.
70
In this type of cooperatives, they are grouped into Agricultural Production Cooperative: They are
organized by agricultural producers to reduce their costs and have better integration
in the market, this is how they purchase supplies, share technical and professional assistance,
they market the production together, increasing the volume and improving the price,
they begin processes of transformation of primary production, which constitute a way
collective of social property, with its own assets and legal personality, established
with the land and other assets contributed by small farmers, to which they are integrated
other people to achieve sustainable agricultural production. And in Cooperative of
Fisheries Production: This type of cooperative is organized by a group of people.
united by a common work bond; fishing. They seek to carry out a joint effort in
personal and community benefit, uniting people dedicated to the fishing activity who
They sum their efforts to improve their production conditions, enhancing the scope.
of their work, being non-profit institutions whose main purpose is service to

62
minerals in this sense relates to the exploitation of resources
natural, is divided into agricultural production cooperatives and
fishing cooperatives71.

Secondary Sector: Includes activities related to

construction, the industry manufacturing and industry in general72.se
They are integrated by marginalized sectors, with low levels
educational and technological, with its members usually being carpenters,
shoemakers, tailors among others. These cooperatives are dedicated to production.
of goods in an artisanal way, fundamentally textiles and a reduced
number is dedicated to the production of footwear and construction.

Tertiary Sector73Economic activities take place, that is

that includes activities related to trade, consumption74

its associates and mutual aid to its members. In this type of cooperatives, it is worth considering
in the industrial potential that could be developed from all the products that are coming
from the sea, since its operations resemble those of a company with the difference that their
members are also their patterns, which operates through a democratic direction.
71
HERNANDEZ ROMERO, Pedro Juan, Op. cit., p.7.
72
Ibidem, see, above, note 72, p. 12.
73
They are those that are constituted to provide collective passenger transport service.
or cargo by land, water, or air. Transportation cooperatives provide their services
services collectively. In this, the ownership of the units is preserved while
hard on its operation, allowing to sell its units solely for the purpose of buying
new units and fulfill their obligations. Ibidem, see, supra, note 72, p. 39.
74
They are those in which consumers join together to achieve better prices in
the goods and mass consumer items. That is to say, they are dedicated to satisfying the
demands of its consumers, acquiring the items that they claim for their
subsistence, directly from the sources of production, in order to avoid the
participation of intermediaries. Consumer cooperatives are formed with people who
they associate with her in order to acquire or obtain common services, whether for themselves,
for their homes or for productive work. In consumer cooperatives, the
The basic objective is based on prioritizing the interest of the consumer over that of the merchant.
the intermediary. This, far from being censurable, is highly honorable as trade is
to serve consumers, not to enrich intermediaries. The areas in which
consumer cooperatives can be quite broad, among them we have:
food, pharmaceutical, clothing, furniture, housing, and, in general, all those
goods that can be acquired under better conditions for the consumer.

63
educación, salud, transporte75financial services, insurance, services
funeral services, business services, public services, telecommunications
among others76.

3.4 Savings and Credit Cooperatives.

A savings and credit cooperative, defined by Antulio Parrilla "as a
Cooperative association aimed at promoting savings.
systematic among its members and provide them with credits at the lowest
possible interest percentage, for useful and urgent purposes, or productive77.

Savings and credit cooperatives were created with the purpose of providing and
to facilitate essential soft loans for the development of the
popular sectors in their various survival activities, sectors
how difficult access to the loans granted by the institutions was
financial78.

Cooperatives, being owned by members, provide an easy price.

economic, without perceiving lucrative or mercantilist ideas, but solely the

75
There are three types of transportation cooperatives: those that associate people
individuals or legal entities, holders of transport companies or professionals who can exercise
in any territorial area, the activity of transportation is intended for the provision of
services and supplies and the execution of operations aimed at economic improvement
and technique of the operations of its members. The regulation of the
service cooperatives, those formed by natural persons with legal and physical capacity
to provide the cooperative with their personal work, carrying out the activity of transportation and/or
complementary. The provisions established for work cooperatives apply to them.
associate, and those that include service associates and others who, not having a title of
carrier, may carry out the activity with vehicles owned by the cooperative or
provided by the associate.
76
Ibídem, see above, note 72, p. 13.
77
PARILLA BONILLA, Mons. Antulio; Cooperativism 'Theory and Practice'. League of
Cooperatives of Puerto Rico; Editorial Nosotros, 1985, p.230.
78
ANAYA ORELLANA, Jorge Alberto and Others; "Effects of Financial Legislation and
Cooperative in the Development of Savings and Credit Cooperatives
from El Salvador, 1996, p.22.

64
service for the user to resolve economic problems of
various natures, being linked through a common bond in
the rest of the members, a link that makes these savings cooperatives unique
and credit within the realm of the financial world, as well as by the fact that
simply guarantee in a moral way the granting of such credits.

Savings and Credit Cooperatives are those that have the purpose of
The fundamental objective is to promote savings and grant loans to its members.
with the resources provided by them, at a very low interest, in order to
to eliminate the high costs represented by the loans granted by the
commercial banks. These savings and credit operations must be
limited exclusively to its members and with the money coming from the
same, being unable consequently to carry out intermediation activities
financial, that is to say, the collection of resources from the public, including the

money desk operations, with the aim of granting loans,

financing or investments in securities, which are reserved for the
banks, savings and loan institutions, and other financial institutions
authorized and regulated by law.

There are several purposes for which cooperatives are organized.

savings and credit. These entities receive the savings from their members in
form of actions or deposits. They can also receive deposits from
non-associated people and they provide loans to their associates and to non-associates

for your personal needs and for your businesses. They can be done
loans even to other cooperatives and organizations for non-profit purposes
non-associated pecuniary79.

Credit cooperatives are societies constituted according to

the law, whose social purpose is to serve the financial needs of its

79
ANAYA ORELLANA, Jorge Alberto and Others, Op. cit., p. 51.

65
associates and third parties through the exercise of their own activities
credit entities80.

And as mentioned earlier, the Savings and Credit Cooperatives

Credit is intended to serve as a savings account for its
members and invest their funds in credits, as well as obtaining other
resources for the granting of loans directly or indirectly to its
associates81.

The main characteristics of savings and credit cooperatives are:

Reasonable interests for their associates, as well as quickness in the

loan processing.

Promotion of the habit of systematic saving and the establishment of

bonds of union and trust with their partners.

The social and human element predominates over the resolution of the
problems in the use of credit,

Use of the members' interests as capital for

productive activities of the same.

It also pursues the following objectives:

Prepare permanently to face changes

They seek the common good

Comprehensive education of the members

80
ALFARO NOGUERA, Guillermo; 'Cooperatives: Associated-Economic Aspects' thesis
graduation at the School of Law and Social Sciences, University of El
Salvador, 1998, p.23.
81
MEJIA CHURCHES, Salvador; El Salvador: Summary of a Century of Cooperativism (1900-
2000), p.122.

66
 Emphasize service over profit

Finding the balance between individual and collective interests without

to break the principle of the common good

3.5 Concepts Related to the Right to Adequate Housing.

The right to adequate housing is a universal right; it is
recognized internationally and in more than 100 national Constitutions
of all the world. It is a recognized right for all people; for a
Our Constitution of the Republic of El Salvador recognizes it in its
Art.119.

For the United Nations (UN), what is stipulated regarding

the right to decent housing as a fundamental human right; and
also recognized by regional treaties and by numerous constitutions
nationals82including the constitution of the Republic of El Salvador;
to be established as a fundamental right for human beings; that is why
The Right to Decent Housing is for everyone in general.

Committee on Economic, Social and Cultural Rights

For the Committee on Economic, Social and Cultural Rights, the
main organ of the UN responsible for overseeing the implementation of
right to housing by the States, should not be understood the
right to housing in a limited or restrictive sense but equate it
just having 'a roof over one's head or considering it
exclusively as a convenience. It should be considered rather as the

82
Given by a publication prepared by Christopher Golay, Advisor to the Special Rapporteur
from the UN on the right to food and MelikÖzden, Director of the Program
Human Rights of CETIM and Permanent Representative to the UN A collection of
Human Rights Program of the Europe - Third World Center CETIM.

67
right to live in safety, peace, and dignity anywhere83This is how
a home will be considered decent according to international law if guarantees are provided

certain minimum aspects at all times84:

Firstly, the legal security of the occupation, including a

legal protection against eviction; proximity to services,
materials, equipment, and necessary infrastructures, including access to
drinking water and sanitation services; the affordable cost, even for the most
poor through housing subsidies and protection against landlords
that exceed; habitability, including protection against the cold, the
humidity, heat, rain, wind, and diseases.

Secondly, easy access for disadvantaged groups,

including elderly people, children, and people with disabilities
physical and the victims of natural disasters; a suitable location,
that is to say, away from sources of pollution but close to services
sanitary facilities and school establishments.

On the other hand, the UN established in its reports that: "The right
the right to adequate housing is the right of every man, woman,
young and children to have a safe home and community where they can live
in peace and dignity85.”

83
DRIMER, Bernardo and DIMER, Alicia Kaplan; "The Cooperatives: Fundamentals, History,
Doctrine. Cooperative Editions, 1975, p.23.
84
This is stated in the International Covenant on Economic, Social and Cultural Rights
where it provides a better perspective on what the Right to Adequate Housing is like
fundamental right for people "all people should enjoy a certain degree
of tenancy security that guarantees them legal protection against forced eviction,
harassment or other threats.
85
Mentioned by the UN Special Rapporteur on the Right to
Housing, Mr. Miloon Kothari, in the special reports issued by the United Nations in
1987.

68
 The Special Rapporteur emphasizes that the realization of the right to
housing is closely linked to the realization of other human rights
fundamental rights, such as the right to life, the right to protection of their
private life, family and home, the right not to be subjected to
inhumane or degrading treatment, the right to land, the right to
food, the right to water, and the right to health. It also insists on
the fact that the realization of this right is linked to the respect of the
fundamental principles of non-discrimination and equality between men
and women.

UN-Habitat
For the UN-Habitat Commission on Human Settlements; and the
Global Housing Strategy the notion of 'adequate housing means
to have a place to isolate oneself if desired, suitable space
adequate security, proper lighting and ventilation in relation to the
work and basic services, all at a reasonable cost; it is of
highlight that the UN has organized two world conferences; in 1976 in
Vancouver and in 1996 in Istanbul; on human settlements in the
that statements and action plans were adopted in order to solve
housing problems in the world86.

The Right to Adequate Housing.

At first glance, it may seem strange to address the right to a
decent housing as a basic and universal human right since for the
It is necessary for people to have a suitable and safe roof; in other words,
The violation of the right to housing denies the possibility of a decent life.
This idea has been reflected in international law, through

86
Ibidem, see, above, note 84, p. 28.

69
instruments such as the Universal Declaration of Human Rights and the
International Covenant on Economic, Social and Cultural Rights.

In 199687in the city of Istanbul the UN, through a document

adopted by the member states; the right to housing was recognized
as a fundamental human right; its importance lay in the
participation of civil society. The right to adequate housing is also
being discussed in another realm: the Millennium Development Goals that in the
In the year 2000, the UN member states agreed to work towards
fulfillment of eight development goals, subdivided into 18 objectives
specific and measurable.

3.6.1 Characteristics.
The right to adequate housing is inalienable to the person, because it has
arisen as a response from society and the State to the demand of
man to consolidate the conditions for his development; since housing
it is the safeguard of man and his family and the platform for his
development that enables individual and collective progress, is
to say the foundation on which man and society will be forged88.

This is one of the most important characteristics regarding what

it refers to the right to adequate housing, but we can also say that
there are other characteristics that refer to this Right as a right
fundamental for the development of human life89it is a right
social of all people, a platform for the integral development of
man, the family and its social group, is an axis and center of personal habitat,

87
HERNANDEZ ROMERO, Pedro Juan; "The Current Situation of Cooperativism in The
Salvador. Salvadoran Editorial Editions, 1980, p.56.
88
VELASQUEZ DE LA PARRA, Manuel; "Constitutional Law Manual", Editions
Spanish; Spain, 1980, p. 477.
89
Idem, see above, note 89, p. 482.

70
neighborhood and community and an essential satisfier of the condition of well-being
social and the improvement of the quality of life.

Among other characteristics that we have, we can establish those

that are related to the constitutional regulation of this Right for
all people as they are90:

Universal. Since this right applies to all human beings.

regardless of age, gender, race, religion, beliefs, nationality. Each
everyone has the same dignity and no one can be excluded or
discriminated against and enjoy a decent and adequate housing for all
its aspects.

Irreversible and progressive. The consecration of this right does not

does not exclude or dismiss the validity of this already established right and the

the existence of other Rights does not prevent social conditions

lived by the peoples determine the validity of all
Rights, since the law allows to enshrine that this Right is
for all people.

Indivisible. Because it must be respected and guaranteed by authorities.

and rulers, to assert this Right as well as the others that
they stipulate the laws.

Non-negotiable. Because it is a right that belongs to him/her in a way.

absolute, to each human being, therefore no authority can

negotiate them.

90
ROMERO MERCADO, Javier Enrique and SANTOS NIETO, Claudia; "Housing of Interest
Social, Dignified and Healthy”. Editions of the University of the North, p.300.

71
 Inviolable. No one can violate, harm, or destroy this Right. This
It means that people and the government must be guided by respect.
this Right; the laws enacted cannot be contrary to these and
the economic and social policies that are implemented neither.

Mandatory. That is to say, it imposes a specific obligation on the

people and the State to respect them even if there is no law to do so.
Say it.

Indivisible, interdependent, complementary, and not hierarchizable. It is

to say, there should be no separation nor should one think that there are others

more important rights than this. The denial of any right in

particular means to endanger the entirety of dignity of the
person, so the enjoyment of any right cannot be made to
at the expense of others.

We can say that the Right to Adequate Housing, being a right

Fundamental for human beings, it should be protected by the States.

3.6.2 Legal Nature.

The right to adequate housing is a right directly linked to
the economic issues. John Rawls in his review of his classic work
"A Theory of Justice" called "Justice as Fairness" makes
an important distinction when placing justice as equity in the realm of
”
a political conception of justice, not a general conception91

This means that it applies to what it calls: Basic structure of the

Society, understood as 'the way in which political institutions and
social aspects of a society fit into a system of social cooperation, and the

91
RAWLS, John; 'Justice as Fairness. A Reformulation' Edited by Erin
Kelly-Paidos, State and Society, Spain, 1980, p.345.

72
ways that assign basic rights and duties and regulate the decision of the
advantages that arise from social cooperation”. The idea of “justice as
"equity" should not be understood as a philosophical moral doctrine of the type that

the author calls comprehensive. Its level remains at the level of the
political philosophy, linked to the idea of a democratic society, and in this sense
allows the coexistence of multiple comprehensive views within
a society, in which the basic structure is seen as fair.

This background materializes from the social cooperation whose

main traits are92:

a) That is guided by procedural rules recognized by the

participants and that they consider fair and appropriate to regulate the
cooperation

b) There is mutual reciprocity among them that fosters cooperation.

equitable;

c) There is a rational advantage in the action of cooperating to achieve

own good.

To address issues related to the right to adequate housing,

It is useful to start from two principles of justice that John Rawls mentions.
in its conception of equality.

As a first principle, it states that social inequalities and

economic ones must meet two conditions: one of them has to
be linked to positions and openings available to everyone regarding the
conditions of equitable equality of opportunities.

92
Ibid, see, above, note 92, p.346.

73
 As a second principle; inequalities must result in a
greater benefit for the less advantaged members of society. For
Hello, we must attack those that arise from 'fortune, those that come from the place.
by birth, family conditions, etc., may influence the
opportunities, in such a way that similar innate aptitudes in terms of
talents should have the same opportunities for development, regardless of
its origin". In this way, the institutions of the basic structure must
temper and eliminate inequalities as much as possible
they arise from fortune or luck.

The right to adequate housing belongs to economic rights.

Social and Cultural also known as second generation.
Its legal nature93in the case by our Constitution of the Republic
from El Salvador Art. 119, when it establishes that it is the right of all
people and that the government must ensure that individuals have the
necessary conditions for living.

3.7 The Type of Housing that Protects the Right to Housing

Dignified.
It is established that the type of housing that protects the right to the
A decent home is based on the conditions in which and the ways in which
The human being must live and consider themselves in a specific way that they live in
the dignified and necessary conditions for their family group94.

3.7.1 Parameters of a Dignified Housing.

Despite this right, the homeless, those living in accommodations
the precarious and the evicted are becoming increasingly numerous both in the

93
Ibid, see above, note 92, p. 347.
94
Idem, see above, note 92, p.348.

74
cities like in the countryside all over the planet. More than 4 million
people have been forcibly evicted from their homes between 2003 and
200695.

In today's world, there are 100 million homeless people and more than
one billion have precarious housing. According to estimates from the United Nations
Together, 3 billion people will live in neighborhoods by 2050. The majority of
these people live in southern countries, but no continent escapes96;
beyond the problems of housing itself, having a roof
The main concern regarding housing is the living conditions.

As crucial as the issue of sanitary conditions may be, it does not

they constitute the only problem of housing. The denial of the right to
housing leads to dramatic cascading consequences and causes multiple
violations of human rights in the fields of employment, the
education, health, social relations, participation in decision-making
decisions regarding the deprivation of civil rights among others.

Although the UN organized two conferences

specific global issues regarding housing and numerous
connected summits, development, environment, etc., in the last three
decades, has allowed to raise public awareness about the seriousness of

95
According to the NGO COHRE (Center on Housing Rights and Evictions), more than 4 million
people have been victims of forced evictions between 2003 and 2006–2 million in Africa,
2.1 million in Asia and the Pacific, more than 150,000 in the American continent and 16,000 in
Europe. COHRE, Forced Evictions. Violations of Human Rights, document created in
December 2006. Information available at: www.cohre.org. Consulted on December 12.
from 2011.
96
Available at: www.agirpourlesdesc.org, "The Right to Housing". Consulted on 12 of
December 2011. A fundamental human right stipulated by the UN and recognized
by regional treaties and by numerous national constitutions, Tuesday, October 13th of
2009, Publication prepared by Christophe Golay, Adviser to the UN Special Rapporteur
about the right to food and Melik Özden, Director of the Human Rights Program
from CETIM and Permanent Representative to the UN according to the UN-Habitat program,
A safecity is a just city. World Habitat Day 2007.

75
the situation, the statements and the action plans adopted have not
had effects97.

3.7.2 The Environment as Part of a Dignified Housing.

Moreover, it does not address the structural causes of poverty and the two
objectives set in it that have a direct relationship with the issue of the
housing as part of the environment that must be established for the conditions
the right to decent housing, which is: significantly improving the quality of life of

at least 100 million inhabitants and reduce the proportion by half

people who do not have access to decent housing98.

These objectives are insufficient and are increasingly being acknowledged.

commonly that people cannot acquire this Right as such and

does not meet the necessary conditions for their family group.

On the other hand, the proposed approach to achieve it and increase the
financing to build new housing for the poorest is,
also, absolutely insufficient. What needs to be done for it to be
Making the right to housing effective for everyone means addressing the causes.
deep issues of housing unaffordability in the world.

The United Nations Special Rapporteur on the right to

housing, Mr. Miloon Kothari, has identified those causes that
they include, especially: land and property speculation;
expropriations and forced evictions; rural exodus and the growth of the
shantytown neighborhoods; discrimination against vulnerable groups, including
women, children, refugees, immigrants, and people

97
This is provided through the support given by the Millennium Declaration, adopted on the 13th of
September 2000, by the United Nations General Assembly.
98
PISARELLOGerardo“Housing for All: A Right in (Re)Construction,
Right to Adequate and Dignified Housing as an Enforceable Right. Illustrated Editions,
1979, p. 34.

76
elderly or with disabilities; natural disasters and conflicts
armed; and the negative effects of the privatization of services
public99.

In other words, claiming the right to housing implies fighting.

for the inclusion of the most vulnerable people in society and to make
to respect the legal obligation of States to guarantee a dignified life for
everyone. This also implies fighting against forced evictions, illegal in
international law, but of those who are victims of hundreds of thousands of
people every year.

All social movements and groups as well as NGOs that

they defend the homeless, those with precarious housing, and those who
the evicted do not know well the international instruments and how
use them at the national level.

3.8 The Obligations of the State that Arise from Law

Dignified Housing.
As a human right, the right to housing is not an option.
policy that states may choose to follow or not follow. Its
recognition implies legal obligations for the States. The
States that have ratified a regional Convention that recognizes
explicitly the right to housing have the obligation to incorporate it into
its national legislation, unless according to the legal system of the State in
issue - international treaties are applicable ex officio at the level
national.

99
Annual reports of the UN Special Rapporteur on the right to housing
presented to the Human Rights Commission from 2001 to 2005 and to the Council of
Human Rights since 2006 respectively. Ibidem, see, above, note 99, p. 36.

77
 Similar to all other human rights, States
they have the obligation to respect, protect, and implement the
right to housing. They also have to cooperate with each other and contribute
international aid for countries that have difficulties in meeting
their commitments.

The Obligation to Acknowledge the Right to Housing at the Level

National.
The primary obligation of states is to enshrine the right to
housing in their national law. Without this, it is impossible according to the system

the legal state in question to credibly protect the rights of its

population to housing100.
However, in practice, this does not necessarily mean that the
the right to housing is enforceable in national courts. In fact,
States may resort to various means to recognize the right to
housing at the national level.

First of all, the recognition of the right to housing in the

Constitution as a fundamental human right. This is what they have done.
many countries101.

Secondly, the recognition of access to housing in the

Constitution as a principle, purpose or essential social or political objective of

100
The United Nations Special Rapporteur on the right to housing, Mr. Miloon
Kothari emphasized in 2002 that: "More than 50 countries around the world have adopted or
modified national constitutions in order to include elements related to the law
to adequate housing, and many of them contain explicit guarantees of the right to
"Adequate housing." Report of the Special Rapporteur on the right to housing
presented at the 58th session of the Human Rights Commission, E/CN.4/2002/59, of the 1
March 2002. Ibid, see above, note 100, p. 39
101
Armenia, Bélgica, Burkina Faso, Congo, Ecuador, España, Guinea Ecuatorial, Guyana,
Haiti, Honduras, Mali, Mexico, Nicaragua, Paraguay, Russia, Sao Tome and Principe, and
Seychelles.

78
ways that assign basic rights and duties and regulate the decision of the
advantages that arise from social cooperation”. The idea of “justice as
"equity" should not be understood as a philosophical moral doctrine of the type that

the author calls comprehensive. Its level remains at the level of the
political philosophy, linked to the idea of a democratic society, and in this sense
allows the coexistence of multiple comprehensive views within
a society, in which the basic structure is seen as fair.

This background materializes from the social cooperation whose

main traits are92:

a) That is guided by procedural rules recognized by the

participants and that they consider fair and appropriate to regulate the
cooperation

b) There is mutual reciprocity among them that fosters cooperation.

equitable;

c) There is a rational advantage in the action of cooperating to achieve

own good.

To address issues related to the right to adequate housing,

It is useful to start from two principles of justice that John Rawls mentions.
in its conception of equality.

As a first principle, it states that social inequalities and

economic ones must meet two conditions: one of them has to
be linked to positions and openings available to everyone regarding the
conditions of equitable equality of opportunities.

92
Ibid, see, above, note 92, p.346.

73
number of countries. For example, the ICESCR is recognized by at least 77
countries104as an integral part of national law.

The Obligation to Respect the Right to Housing.

The obligation to respect the right to housing implies that the
States must refrain from taking any arbitrary measures that hinder
the exercise of this right. It is a negative obligation that prohibits the
State to exercise its power when this has the effect of compromising the
access to a housing already acquired. A government violates this obligation when,
for example, decides to evict people from their homes by force
what its legal status may be without prior notice or possible resources. A State
it also violates this obligation if it restricts the right of association of the
tenants, or of the rural communities that own common housing.
The Obligation to Protect the Right to Housing.
The obligation of states to protect the right to housing requires
that prevent third parties from putting any type of obstacle to the exercise of
right to housing. It can involve individuals, companies, or others.
entities. For example, states must enact laws that protect
to the population against land or property speculation, to create
instances responsible for investigating in cases of violations and ensuring
effective resources for victims, especially access to justice.
The State also has to intervene when powerful individuals or
companies expel people from their land or their housing,

104
These States are: Albania, Algeria, Germany, Angola, Armenia, Austria, Azerbaijan,
Bélgica, Benin, Bielorrusia, Bulgaria, Burundi, Cabo Verde, Camboya, Chipre, Congo, Costa
Rica, Costa de Marfil, Croacia, Djibouti, Ecuador, Egipto, El Salvador, España, Eslovaquia,
Eslovenia, Estonia, Etiopía, Finlandia, Filipinas, Francia, Gabón, Georgia, Ghana, Grecia,
Guatemala, Guinea, Honduras, Kyrgyzstan, Latvia, Lithuania, former Yugoslav Republic of
Macedonia, Madagascar, Malawi, Mali, Mongolia, Namibia, Nicaragua, Níger, Noruega,
Netherlands, Paraguay, Peru, Poland, Portugal, Central African Republic, Republic of
Corea, República de Moldavia, República Democrática del Congo, República Checa,
Romania, Russia, Brazil.

80
chasing those responsible and ensuring a remedy for the
victims.

The Obligation to Implement and Carry Out

Right to Housing.
The obligation to put into practice breaks down into obligations
to facilitate and to realize the right to housing. The obligation to facilitate
assume that I took positive measures to help individuals and
communities to exercise their right to housing. It must, for example, build
affordable housing in sufficient quantity and ensure that the most
the poor will have access to them through grant systems.
The obligation to carry out implies ensuring temporary housing for all.
people in extreme precariousness. In case of conflicts
armed or natural disasters, special attention should be paid to
women, children, displaced persons, and refugees. Requires
Furthermore, the adoption of necessary legislation that provides a strategy
and an action plan for housing at the national level that ensures that
housing will be adequate, available and accessible to everyone, even in
the rural areas and the most vulnerable urban areas.

A state in which a large number of people are deprived of

access to a minimal housing, or at least to a place of temporary refuge,
it violates its obligation to fulfill the right to housing. The
poorest countries, if they do not have sufficient resources to respect this
minimum obligation, they must seek help from international cooperation
to be able to solve it.

The Obligations of Cooperation y of Assistance

International.

81
 If the poorer states are obligated to seek help from the
international cooperation to realize the right to housing, the States
the rich have the obligation to respond. They have committed to it to
ratify the International Covenant on Economic, Social and Cultural Rights
Cultural actions that states are expected to carry out,
both with their own efforts and with assistance and cooperation
internationally, to the maximum of their available resources, to carry out the
right to housing105
If the State fails to fulfill any of its obligations to respect,
protect or implement the right to housing for all people
those who become victims of it must be able to access a mechanism of
Judicial or extrajudicial control to be able to claim their right. All the
victims of violations of the right to housing have the right to a
appropriate reward repair, compensation y/o no guarantee
repetition.

A person or a group of people who have been evicted

arbitrarily from their home, or from the land that allowed them to have shelter,
he is a person who leaves himself without any means of accessing housing, without
local, national or international help, you have to be able to file a complaint

105
1.
Each of the States Parties to this Pact commits to adopt measures,
both separately and through international assistance and cooperation,
especially economic and technical, to the maximum of the resources available,
to progressively achieve, by all appropriate means, including in particular the
adoption of legislative measures, the full effectiveness of the rights recognized herein.
The States Parties to this Pact undertake to guarantee the exercise of the
rights that are stated therein, without any discrimination on grounds of race, color, sex,
language, religion, political or other opinions, national or social origin, position
economic, birth or any other social condition. 3. Developing countries,
taking into proper account human rights and their national economy, they may
determine to what extent they will guarantee the economic rights recognized in the
present Covenant to persons who are not their nationals.

82
for the violation of the right to housing and to obtain redress and
compensation for it.

3.9 The Federation of Cooperatives.

They are Federations of Cooperative Associations organizations.
integrated by cooperatives of the same type106That are associated with views
to a well-defined common purpose, but without stopping to absorb 107A
federation of cooperatives or so-called second-degree cooperatives is
an organization in which everyone, or at least a large part of its
members are cooperatives. A federation of cooperatives may imply
various conceptions108.

A business organization that groups different cooperatives.

a regional, national, or international level and whose purpose is representation and
defense of the interests of the associated cooperatives.

A secondary cooperative, that is, a union of several

cooperatives made with the purpose of offering a series of services to them
same. For example, a cooperative that provides financial services
formed between several cooperatives, would follow this criterion.

The constitution of federations of cooperative associations is

is carried out by means of a general assembly held for that purpose by the
delegates from the interested cooperatives. this assembly must be
attended by up to three delegates from each of the cooperatives. For

106
Art. 25 LAC. 'Cooperative Associations Federations are organizations
integrated by Cooperatives, of the same type.
107
International Labour Office; 'The Cooperatives Manual of Workers' Education'.
First Edition, Geneva, 1956, p. 73.
108
SÁNCHEZ, José Humberto; "Societies and Cooperative Associations". thesis
doctoral. Faculty of Jurisprudence and Social Sciences of the University of El
Salvador.1998, p. 33.

83
To form a federation, ten or more cooperatives are required.
to affiliate directly with the confederations, and for this, it is required
only those who have the corresponding legal personality are granted the
The Salvadoran Institute for Cooperative Promotion INSAFOCOOP

Some of the federations of cooperative associations are:

Salvadoran Federation for Development and Minimum Housing FUNDASAL

It is a private, non-profit institution dedicated to the creation of
a social consciousness that promotes development and the
necessary social transformations for the benefit of the sectors
poorest of the Salvadoran people.

Federation of Housing Cooperatives for Mutual Aid

FESCOVAM. It is a federation of cooperatives that is based on
your work with member cooperatives in three pillars - Ownership
Collective, Mutual Aid and Self-Management. Its projection is to be the

reference regarding the housing problem solution in El

Savior of low-income sectors.

Federation of Agricultural Cooperatives of the Northern Zone

Morazán FECANM. Works to create economic conditions and
organizational in the cooperatives and groups affiliated with the federation,
to initiate a development process in the northern area of Morazán.
Work to develop profitable alternatives that contribute to the
food security and improving incomes. Focus efforts,
research profitable sectors that contribute to developing the
productive capabilities. Provides support to contribute to
organizational strengthening based on productive development.

84
 Federation of Cooperative Savings and Credit Associations of El
Salvador de R.L FEDECACES. It is made up of thirty-one
savings and credit cooperatives, which are located
in the fourteen departments of the country. Our quality policy is
based on the achievement of our mission through efficiency in the
provision of financial and technical services to achieve the
growth, development, and the satisfaction of cooperatives.

3.9.1 Functions.
It corresponds to the Federations of Cooperative Associations; Unify.
coordinate and promote the respective cooperative movement

Represent and defend their interests and those of their Cooperatives

affiliated

Provide services, advice, and technical assistance in different areas to

its affiliated cooperatives, preferably;

Practice auditing according to the economic capacity of the

Federation;

It is also responsible for promoting the constitution of new

cooperatives;

In addition to these aforementioned functions, the federations of

cooperative associations have the obligation to enforce everything that
establish the Regulations of this law and its Statutes.

3.9.2 Competence.
Provide technical assistance to those who make up the cooperatives
through its development program. That is, it promotes the development of

85
capacities, providing advice and support to the movements
cooperatives that make up these federations.

Promote the activities to be carried out

Publications of the plans and strategies to be for a better

functioning of the federation.

Representation before the authorities in case of being sued

Account review.

To look after the interests and needs that are common to them.

And carry out the work of oversight and auditing of its affiliates.

3.10 The Confederation of Cooperatives.

They are Confederations of Cooperative Associations, the organizations
integrated by at least three Federations of the same class or by
five federations of different kinds109.

The way in which confederations are formed is carried out by

through a general assembly held for that purpose to which six will attend
members elected by the general assembly of interested federations.
As the freedom of voting is essential, federations will have
right to six votes; the votes of the federations will be counted
proportionally one for each cooperative110.

109
Article 27 LGAC. "They are Confederations of Cooperative Associations, the organizations
integrated by at least three Federations of the same kind or by five
Federations of different kinds.
110
International Labor Office; Cooperatives: "Labor Education Manual".
First edition, Geneva 1956, p.74.

86
 3.10.1 Functions.
Some of the functions of the Confederation of Cooperatives
son

Corresponds to the confederations, which at the national level must

to represent and defend the interests of the Cooperative Movement.
It should promote at all levels, the continuous process of
integration of Cooperatives
Propose to the competent state bodies the measures
necessary and convenient for the promotion, development and
improvement of Cooperativism;
Ensure compliance and dissemination of universal principles of
Cooperativism;
Contribute to the compliance with this law, its Regulations,
statutes and other relevant provisions.

3.10.2 Competencies.
Look after the interests and needs that are common to them.

The confederations must ensure that the appropriate environment exists.

of policies that allow the member federations to grow and
to prosper.

Provides legal advice and politician who allows his

members compete on equal terms.

Carry out oversight and auditing of its members.

87
 3.11 The Cooperative Alliance.
The International Cooperative Alliance111also known as ACI,
it is an independent non-governmental organization that brings together, represents

and serves cooperative organizations around the world. Its members are
national and international cooperative organizations of all
sectors of activity: agricultural, banking, credit and savings, industrial,
insurance, fishing, housing, health, public services, social services
tourism and consumption. Currently, it has 251 members among its ranks.
organizations from 94 countries representing over 800 million
people from all over the world112.

The ACI was founded on August 19, 1895, after an international congress.
of the nascent cooperative movement that took place in the city of
London. In the year 1896, the second congress took place in Paris.
an organization where it was agreed that ACI would not intervene in politics or in
religion. At the Hamburg Congress of 1910, it marked a new era, with the
idea of an organization open to all types of cooperatives. In 1946
the ACI was the first non-governmental organization to which the Nations
United Nations granted it consultative status. Today it is one of the 41
organizations listed in Category I of the list of organizations
that enjoy consultative status before the Economic and Social Council of the
United Nations, known as ECOSOC113.

111
The International Cooperative Alliance (its acronym is ICA) is afederation of
cooperativesthat serves to gather, represent, and serve tocooperativesof the whole world. The
organization was founded inLondonin1895.Currently represents 800 million of
people around the world, being the reference of thecooperative movement.Languages
officials of the organization areEnglishSpanishFrenchGermanyRussian.Its headquarters is located at
since 1982, inGeneva,previously was in London (1895-1982).
112
Available at: http://www.aciamericas.coop/What-is-the-Cooperative-Alliance.the Alliance
Cooperative. Consulted on January 9, 2012.
113
Available in:Invalid URL provided.
international cooperative a ci.html. Consulted on January 10, 2012.

88
 The ideological foundations of the Cooperative Alliance constitution
International, I.C.A. consists of the concept of cooperation as a
social idea and as an international movement towards democracy
economic, as well as the recognition that all movements
national cooperatives have common interests and for their defense
requires common action and international solidarity. The universality of the
cooperation is implicit in the first two objectives of the Alliance
International Cooperative, which set their Statutes; propaganda of the
principles and cooperative methods and promotion of cooperation in all
countries, while the following four objects: the maintenance of
friendly relations among the members of the Alliance, the safeguarding of their
common interests and those of consumers in general, the disclosure of
data and the stimulation of cooperative studies, and the promotion of the
commercial relationships of the international cooperative movement express the
the need for international solidarity and collective action.

Joint action in the international field is only

possible, if the national movements in their collective efforts leave
one side all the problems that may cause serious differences and whose
solution is not absolutely essential for the progress of cooperation.
The Statutes of the International Cooperative Alliance, therefore,
establish that 'the Alliance does not deal with politics or religion. It
consider cooperation as a neutral field in which people who
they have the most diverse opinions and profess the most varied beliefs,
they can meet and act together." He has made the principle of neutrality
from Rochdale a standard to manage their own affairs, as long as the
compliance with the four essential principles of the weavers of
Rochdale open association; democratic control; dividends in proportion to

89
the purchases; and limitation of interest payment to capital; is the condition
necessary for consumer societies to affiliate114.

It is important to mention that the principles of open association and

democratic control applies in the case of the Cooperative Alliance
International115as in other cooperative organizations. The
the association is open to all types of cooperative organizations:
national and regional unions or federations of cooperative societies,
federations of unions, cooperatives, and organizations
auxiliaries, regardless of their legal structure but as long as they
true cooperatives.

The members of the Alliance through the congress to which they are
normally convenes at intervals of 3 years and constitutes its highest
authority, determine their general policy and elect the Central Committee; the
The Central Committee in turn elects the executives, a President and two
Vice Presidents and appoints the Secretary General, who is in charge of the

114
Hugo RANGEL COUTO; "The Cooperative Movement and Current Problems."
Editions of the Institute of Economic Research of the National University of Mexico.
Montreal, 1945, p. 162. Available online at:http://www.ilo.org/public/libdoc/ilo/ILO-
SR/ILO-SR_H4_span.pdf.Consulted on January 12, 2012.
115
Since the creation of the International Cooperative Alliance (ICA) in 1895 until today
day, cooperative societies have shown themselves as companies that, in terms of
generally, they have been able to combine their respect for the operating rules inherent to this
type of companies, with their business status and their consequent search for a
efficient behavior from an economic standpoint. The condition of companies
efficiencies of cooperative societies (which has been verified in some cases and not in others,
just like happens with any other legal business form), is the result of the interplay of
multiple variables including the flexibility shown to adapt to the
changing environment in which we operate. See LEJARRIAGA PÉREZ DE LAS VACAS
Gustavo. The cooperative society from the perspective of the Cooperative Alliance
International and labor corporations in relation to the legal concept of cooperative.
Ed. REVESCO, N. 61 1995 p. 89. Available in internet
http://www.ucm.es/info/ecfin/RMGS/DOP/SAL.pdf. Consulted on January 13, 2012.

90
head of the Alliance office and is responsible for executing the
decisions made by all authorities.

The Alliance has created auxiliary organizations for tasks

special. The first of these is the Cooperative Trade Committee
International, established by the Congress of Cremona in 1907, is
transformed after the last war into the Cooperative Society
International Wholesaler, and under its auspices, was established in 1937, a
International Agency for Cooperative Trade with the character of
independent commercial organization. The other auxiliary organizations
It is the International Cooperative Banking Committee whose work was
temporarily suspended in 1934 and the International Insurance Committee
Cooperatives116.

The greatest success of the International Cooperative Alliance has been in the
field of the organization. In 1933 the total number of its members was
distributed among 30 countries and represented more than 107 million
organized cooperators, of which 73 million were members of the
Central Cooperative of Consumer Societies of the U.S.S.R., Centrosoyus. Before
by this date, the Alliance had lost as a member the movement
Italian cooperative, when the fascists took power in Italy and
they imposed their control and ideology on the movement. A further loss
occurred with the Nazis' rise to power in Germany in 1933. The
the number of members of the Alliance also suffered with the transformation of
the urban cooperative societies of the Soviet Union, in companies of
State, with which the number of members of the cooperatives was reduced.
consumption in the U.S.S.R. was about 55 percent of its volume in 1932.

116
Ibid., see, above, note 113, p.88.

91
However, there were still more than 71 million cooperators.
organized within the International Cooperative Alliance in the last year
prior to the initiation of the war117.

Geographically, the most developed consumption movements in

Great Britain, in the Scandinavian countries and in Western Europe
they naturally make up the bulk of the number of members of the Alliance
International Cooperative, which to date, is essentially a
consumer organization. In the last 25 years and especially
Since the Stockholm Congress in 1927; efforts have been made, not without
certain success, to make the Alliance an organization that encompasses everyone
the types of cooperative societies118.

An important aspect to highlight is the fact that in the field of

documentation, information, propaganda and cooperative education, the
Alliance119has done a lot to promote mutual understanding and spread
information and knowledge, through its publications especially
its monthly organ The Review of International Cooperation, and its series of
monthly news services titled: Cooperative News Service,
International Economic News Service and Digest of the Cooperative Press;
through the organization of conferences on cooperative press
international and educational conferences, and especially through courses
annual, which before the war had come to constitute one of the
characteristic aspects of cooperative education, representing a step

117
Ibidem, see above, note 117, Consulted on January 16, 2012.
118
Even though the Alliance has become increasingly representative of all types of
cooperative societies, consumer organizations still prevail within them.
119
In addition to its international activities, the Alliance has collaborated with other organizations.
international, particularly the League of Nations, the International Office of
Work and the International Trade Union Federation; having maintained very close contact
close with the Cooperation Section of the International Labour Office.

92
important towards the creation of an international cooperative school
permanent. International Cooperative Day, inaugurated in 1923 and
observed every year on the first Saturday of July, has become a
worldwide manifestation of international cooperative solidarity and the
The rainbow flag is the symbol of cooperative unity.120.

3.11.1 Functions.
The main objective of the International Cooperative Alliance is
promote and strengthen autonomous cooperatives around the world. Through
its international, regional, and national activities the Alliance
The International Cooperative also seeks to fulfill its functions, among
those who are found:

Promote the global cooperative movement based on self-help

mutual aid and democracy.
Promote and defend cooperative values and principles.
Facilitate the development of economic relationships and any other.
nature that mutually benefit their member organizations.
Promote sustainable human development and foster progress
economic and social well-being of the individual, thereby contributing to peace

and international security.

Promote equality between men and women in decision-making
decisions and in the activities that take place in the movement
cooperative121.

120
Ibid, see, above, note 117, consulted on January 21, 2012.
121
Notebook of Management from the ACI: Available en:
http://www.ehu.es/cuadernosdegestion/documentos/.pdf, p. 90. Consulted on January 21
from 2012.

93
 3.11.2 Competencies.
It should be noted that the International Cooperative Alliance, being an entity

intermediary global and promoter of cooperativism has some

competencies among which are:

The promotion of awareness about cooperatives. That is,

that the ACI contributes to individuals, government authorities
and regional and international organizations understand the model of
cooperative company. ACI is the spokesperson for the cooperative movement.122.

Ensure that the appropriate policy environment exists that allows for the
cooperatives grow and prosper. It helps its members to exert pressure
to obtain new legislation and administrative procedures more
appropriate that respect the cooperative model, its principles, and its values.
Provide political support as well as technical competence that allows the
cooperatives compete on equal terms.

Provides its members with important information, best practices

and contacts. Their weekly and quarterly publications allow you to
share information. Organize meetings and workshops to discuss issues
of keys for cooperatives and allows for discussions to be initiated with
cooperators from around the world. The ACI facilitates contact between
cooperatives for commercial purposes and to share knowledge in a
wide variety of areas. Provides technical assistance to cooperatives
through its development program. That is to say, it promotes the
capacity building, provides advice and support to the movements
cooperatives from around the world123.

122
Ibídem, see above, note 122, p. 91. Consulted on January 23, 2012.
123
Ibid., see above, note 122, p. 96. Consulted on January 23, 2012.

94
 3.12 Housing Cooperatives.
A housing cooperative124it is a type ofcooperativewhose object
social is to provide to its associatehousing,locales and othersgoods
properties, acquiring land to build and develop it.

It is also a form of consumer cooperative and is intended to

aims to provide affordable housing to its members125, that in
most of them are people who, due to their economic and social condition, do not have
high economic incomes that allow them to opt for an offered housing
by a bank or another institution, whether it is a state or private institution. It
It is about an autonomous association of people who have come together in a way
voluntary to meet their housing needs and aspirations. These
associations have their own legal personality and their operation is based on
in the democratic participation of the members.

The cooperators themselves can take charge of carrying out the

managementpromotersfor the construction of the houses: hire the
technical project, to the architect, to the builder, supervise the work, carry out the
payments, and financing. With the housing cooperative formula
the figure of the disappearspromoter.The buyer of the housing, turned into
cooperative associate, the business benefit that is saved for him
it would correspond to said promoter. Cooperatives can also include
among its purposes the conservation and management of the houses, elements,

124
The housing cooperative is a specialized consumer cooperative; a
organization of individuals who associate for the common need of obtaining housing
in better and/or different conditions than those offered by the market. And that activity of
consumption is carried out like entrepreneurs: risking resources; bearing potential
losses, overruns, delays in deadlines, etc.; betting on acquiring a home
with a better quality/price, but ultimately assuming a risk that gives it the
condition of promoter businessman real estate. Available
Unable to access the content of the provided PDF link.Consulted on January 23rd
2012.
125
Cooperatives (Mutual Aid), IADSL, 1971, p. 61. Available in the library of the
Faculty of Economics of the University of El Salvador.

95
common areas or buildings and the creation and provision of services
complementary126.

For its part, our national legislation specifically the Law

The General Law on Cooperative Associations in its article 10 states that: "They are

Housing cooperatives whose purpose is to provide for their members

housing through mutual aid and personal effort. The purpose of the
housing cooperative consists of providing apartments and premises to the
partners. This can be done well by transferring the property to the
associates, constituting the horizontal property regime and
disappearing from that moment; well transmitting only the use and
enjoying and retaining control of the cooperative127.

That is to say, housing cooperatives are dedicated to management.

purchase, construction, sale, rental and any other related activity
with housing and community living. Its purpose is to provide a
adequate housing for low and middle-income families, ensuring a
a calm and safe community environment, educating associates and residents in
the principles of self-management, responsibility, and social coexistence for
increase the effectiveness with which these goals are achieved128.

It is worth saying that in housing cooperatives, the members will be

those who need a home, which they can access in a way

126
Euroresident, housing and mortgages, housing cooperatives, cooperatives section
Available
http://www.euroresidentes.com/housing/mortgages/dictionary/housing_cooperative.
htm. Consulted on January 23, 2012.
127
Available in:http://www.fundasal.org.sv/what_we_do/Consulted on January 24th
2012.
128
The Cooperative League of Puerto Rico, 'Let's Practice Cooperative Solidarity'.
Available at: http://www.liga.coop/index.php?option=com_content&view=article&id=3emi2.
Consulted on January 24, 2012.

96
associated, both by self-construction and by management Between
129

some of the general aspects of housing cooperatives are

they find:

a) First of all, the price; one of the most highlighted aspects of a

housing under a cooperative regime is the price of the properties, since
usually lower than the market value of a free home. Specifically,
a member who acquires a housing unit through a
the cooperative could experience a reduction of up to 20% or 30%.

b) As a second aspect to highlight in these cooperatives, we can

to mention the payment method, in relation to this, it is worth saying that the associate,

you can adapt payments according to your needs. In general, the

Contributions made in favor of the cooperative are of three types:
Contributions, periodic fees, intended to cover the expenses of
performance of the society and contributions to finance housing and annexes.

c) As a third aspect, it is necessary to mention the refund of payments, the

which differs from other models of buying and selling130.

d) Guarantees of the amounts delivered; the cooperative is obligated to

to ensure that the amounts delivered by the partners, in advance,
for housing financing will be refunded in case the project
it is interrupted. This means that the cooperative society must facilitate to
associated with a bank guarantee on the amounts paid as a deposit by
anticipated.

129
Guiding Texts: "What is a Cooperative?" Available at:www.inaes.gov.ar
Consulted on January 24, 2012.
130
Ibidem, see note 130 above. Consulted on January 25, 2012.

97
e) Delivery times; One of the main issues that is of most interest to
the buyer of a property is the deadline for the completion of the works and delivery
of the property. If it changes, the partners must be informed through
the General Assembly of Associates or any other mechanism of
communication. In addition, they must be informed of the reasons that have
this delay is produced.

f) Additional expenses; Another issue that concerns a buyer who

becomes a member of a housing cooperative is how much could
increase the initial price that is announced at the entrance to the cooperative.
Sometimes, this price may increase as a result of expenses
additional or unforeseen events. It may even happen that the initial value is affected
reduced. In the case of a considerable increase, it must be justified.
and approved by the General Assembly of the Associates. The expenses
additional costs will be assumed by the cooperative members.

g) Sale of the property; Finally, if the member decides to put the

property acquired through a housing cooperative, will have to
to inform her of this, so that she can offer to
new interested parties or established associates in housing, under the protection of

preferential purchase right that the cooperative has131.

131
Financial Community Rankia, section The Housing Cooperatives. available
http://www.rankia.com/articulos/210267-cooperativas-viviendas. Consulted on the 24th of
January 2012. It is worth clarifying that this aspect does not apply in El Salvador, as more
forward will be developed, in the Statutes of a housing cooperative by Mutual Aid,
created by FUNDASAL, under the supervision of INSAFOCOOP, in its article 13 letter h it
restricts the member to use and enjoyment for himself and his immediate family, this is so because it seeks
perpetuate the housing for your family group.

98
 3.12.1 Characteristics.
The housing cooperative society has particularities that are
I need to know; it is for this reason that among the characteristics of the
housing cooperatives are found:
a) First of all, it should be noted that housing cooperatives
presents particularities in relation to other types of companies
cooperatives, which we can classify as follows: 1)
Particularities regarding corporatized activity and its social purpose.
2) Particularities regarding relationships with partners and 3)
Particularities regarding the structure and means for its development
social object132.
b) The second characteristic element of housing cooperatives
is related to its corporate purpose, which is very specific and
predetermined by law, thus limiting activity to other areas of
commercial, industrial, transformation, and service activities. These
legal limitations, always with the aim of protecting the members, in
occasionally introduces rigidities in management. Likewise, its activity
productive presents a complex set of operations, typical of the sector
real estate, with a long maturation period133.
c) As a third characteristic of housing cooperatives
we can mention the link of the associates with the cooperative society,
which is normally the economic interest of obtaining a home, this
it has fewer ideological or social implications than in other types of
cooperative societies, therefore, is a social bond weaker than in

132
GÓMEZ APARICIO Pilar; The Cooperative Housing Societies. Special
Reference to the Basque Country. Editions School of Cooperative Studies. University
Complutense of Madrid. Madrid, Spain 1994 p.105. Available
http://www.ehu.es/cuadernosdegestion/documentos. Consulted on January 25, 2012.
133
Idem, see above, note 128, p. 107.

99
other types of cooperatives, which explains their easy disappearance once
its corporate purpose has been fulfilled.

d) Another characteristic of this type of cooperative is the Personality

Legal. In this regard, it must be said that the Housing Cooperative
It entails the dual condition of society and promoting company. The
cooperative member, therefore, is a member of the cooperative society and as
co-owner of it. On the other hand, he is the awardee of a housing unit.
in property, of which he is a co-promoter.

e) Limited Legal Liability is another of the characteristics

of Housing Cooperatives. It should be noted that the
the liability of the associates is limited to their contributions
made to the subscribed capital.
f) Housing Cooperatives are Participatory Societies. The
the cooperative is the participatory company par excellence, to such an extent that
Without the participation of the members, the society would become distorted.
g) And as last but not least, it is necessary to establish
what other characteristics of housing cooperatives constitute
the absence of profit motive. The characteristic note of a cooperative is
the absence of profit motive, since its main purpose is
acquisition of a home at strict cost price134.

3.13 The Social Economy.

In the sector of the Social Economy, the entities are located
economic activity or support for the Social Economy, with diversity of
organization, associative or individual, that offer goods and services, possess
local identity and territorial and sectoral roots, and defend the interest of

134
Ibidem, see above, note 133, consulted on January 25, 2012.

100
workers and entrepreneurs. In the associative context, as a grouping of
people, characteristics of participation and exercise are observed
democratic in leadership and decision-making promoting consensus
economic, social and political.

Each country in the region must define the terms of integration of

sector, addressing its characteristics and what exists. From the extensive and varied
typology of companies of the Social and Solidarity Economy that exist in
Latin America and depending on the specific situation of each country, we can mention

the following: cooperatives, mutual societies, employee funds,

savings banks, associative work companies, community enterprises,
self-managed companies and foundations.
That is to say, this Social Sector brings together organizations that do not depend

of the Public Sector and that are unrelated to the Private Sector. When production
it moves to these spheres, where the relations of production are foreign to
of the capitalist system, we are facing economic agents who are
they behave under their own dynamics135.

Social Economy136also called Solidarity Economy, refers to

to the group of those organizations of producers, consumers,
savers, workers, etc., that operate governed by the principles of
democratic participation in decisions, management autonomy and the
primacy of the human over the capital. The practices of these
organizations are circumscribed within a new productive rationality,
where solidarity is the support for the functioning of initiatives.

135
The International Cooperative Alliance, ibid., p. 10.
136
Social Economy: This term aims to group within it the entire set of
institutions that combine, in a unique function, economic objectives with social ones, that
they promote and encourage citizen participation and introduce, as a non-negotiable condition
negotiable, the co-responsibility of the members in decision-making.

101
Differentiating itself from capitalist rationality that is neither supportive nor
including the public economy that does not allow for the possibility of self
to manage oneself.

These ventures seek coordination with public entities.

or private ones that allow for true participation
democratic in the economic and political life of a society. In them
social categories find refuge marginalized by the systems of
employment and distribution of conventional wealth dependent on
market and the State.

As members of the social economy in our country, it is possible

include cooperatives, mutual organizations, foundations, organizations
civilians, the cooperatives and the recovered factories that operate as
cooperatives in their vast majority; but also to organizations of
unemployed individuals who organize dining rooms, gardens, or other ventures.

In the last 20 years, the concept of 'third' has been spreading.

sector" as it is also referred to as the social economy. This term highlights
emphasis on the idea that the economic and social organization of countries is
constitutes around three sectors of the economy. A first sector that
corresponds to the public economy sector, a second sector that
it corresponds to private companies and a third sector that brings together everyone

the other forms of companies and organizations, which generally do not have
non-profit and are based on democratic management and generation of
goods and services of public interest.

For its part, in the diagnosis of the social sector of the economy in El
Salvador, it is established that this social sector aggregates organizations that do not
they depend on the public sector and are unrelated to the private sector. When the
production is transferred to these spheres, where the relations of production

102
are alien to those of the capitalist system, we are facing agents
economic factors that behave under their own dynamics. The "Walloon Council"
of Social Economy”, 1990, from Belgium, defined that: “Social Economy
group the economic activities practiced by companies,
especially cooperatives, mutuals, and associations, whose ethics are seen
reflected in the following principles:
a. Its purpose, rather than maximizing profits, is to provide services to
the members or the community;
They have autonomous or independent management;
c. They employ democratic decision-making processes;
d. In income redistribution, priority is given to people and the
work, instead of the capital137.

Likewise, the Scientific Commission of CIRIEC-Spain defines the

Social Economy, as that 'composed of private companies that operate in
the market producing goods and services, ensuring or financing and whose
profit distribution and decision-making are not directly linked
with the capital contributed by each member. The weight and the decision-making
it is the same for all partners and never based on the capital contributed by
each of them". And it divides it into two subsectors138:

a. The market subsector, made up of companies with organization

democratic (one person, one vote) and with no distribution of benefits
linked to the capital contributed by the partner.

137
Research Institute University of Zulia (Luz) Maracaibo, Venezuela Economy
Social and Cooperativism. ed. Journal of Social Sciences, volume XII, No. 2 Maracaibo,
Venezuela, 2006, pp. 63 and 64.
138
Ibidem, see above, note 141, p. 65.

103
b. the non-market subsector, which would include private institutions without
non-profit for the service of households139.

Similarly, at the I Congress of Social Economy held in

Madrid in 1992, in its Manifesto-Program, defined Social Economy.
like "any economic activity, based on the association of people in
entities of a democratic and participatory type, with the primacy of the
personal and work contributions on capital. The models of
societies that shape this sector are: a) Cooperatives and societies
labor unions; b) mutual societies and mutual insurance companies; c) associations and foundations and

other entities that respect the principles of the Social Economy.

3.13.1 Historical Emergence.

The social economy has as its antecedent140to worker cooperativism
arisen from the resistance against the Industrial Revolution and the consequent
development of capitalism. Robert Owen in 1832 created the Labour Exchange,
that is to say, Job Bank, in London, then others with the same emerged
a way, where products were exchanged whose value depended on the number
of hours worked in its production. The venture began its end
in 1834 with the employer strikes, also called lockouts, with which
the unions were collapsing together. It is a clear precedent of the

139
Ob.cit., International Cooperative Alliance, p. 12.
140
The Social Economy was born in the first half of the 19th century in Europe, in the forms of
mutualisms, cooperativisms, and autonomous communities with the aim of defending the
interests of the working class in the face of capitalism to establish itself as an alternative system. This
The logic is maintained when reading the two previous meanings with respect to Social Economy.
However, when reading from Latin America, reality forces a redefinition of both
agents and their objectives. In Latin America, there are activities unrelated to
capitalist mode of production that are subsumed within it, which is why the agents go further
beyond the workers aggregated by the traditional working class and the
objectives are closer to the construction of an alternative system than to the defense of the
workers' interests. Op. cit., International Cooperative Alliance, p. 13.

104
local employment and trade systems in Canada and the clubs of
barter in Argentina.

Also related to the social economy, we can mention the

movement of the communes, similarly linked to Owen, in which
I was looking to practice the principle of distribution 'to each according to their needs'

needs, of each one according to their capacity”, carrying out

simultaneously various economic activities where the
solidarity. The community's heritage was collective and managed by
everyone together, making decisions in assemblies. These have been
.
spread over the years and continue to expand actively141

Another very important background is the consumer cooperative.

Rochdale Equitable Pioneers formed by English workers in 1844.
principles adopted by it were used as a model in others
similar ventures where, among other things, the ideas of
political equality, cooperative education, and fair and periodic distribution of the
profits. All of this makes Rochdale known today as the mother
of the cooperatives142.

By the early decades of the 20th century, cooperatives began to

they were increasingly becoming conventional companies, leaving them only the
cooperative name. For Singer, the growth in size of the
cooperative and the number of its members hinders the validity of the
participatory democracy because self-management is set aside due to lack of
interest of the participants in entrepreneurship. It is that before the
cooperatives, it was their members who changed, until the end of the century

141
Definition of Social Economy. Available at:The provided text is a URL and does not contain translatable content.
social.created in June 2009, by Licensed DÍAZ ALMADA, Pablo. Consulted on the 30th of
January 2012.
142
Ibid, see, above, note 136. Consulted on January 30, 2012.

105
the living and working conditions of the proletariat were so low that
their options were to submit or to rise up, but by that time the
the situation of the working class began to change with the rise of the
real wages, the right to union organization and with it the possibility
to stop the activities, along with the approval of the bases of the State of
Well-being. Reconciled with the wage system, workers lost the
enthusiasm for self-management.

The situation changed in 1980 with the rollback of concessions.

granted to workers decades ago, the financial sector became
hegemonic and imposed successive fiscal and monetary adjustments; and the free
trade with the unrestricted flow of capital allowed transnational corporations
transfer production lines to low-wage countries and without a
true Welfare State. That is why it is possible to see today in
various countries a resurgence of the solidarity economy from the
neoliberal counter-revolution.

The concept of Social Economy143it is certainly the concept with

older than those analyzed in this study. The first
the emergence of this concept in economic studies dates back to the 19th century.
They were renowned authors, such as John Stuart Mill and Léon Walras,

143
The Social Economy is the one that operates within economic policies for the purpose of
profit, and the selfless ones, such as volunteer work or cooperatives. As for
to the States themselves, they are associated with the famous Welfare State, or what
many call it Social Democracy. Their intention is to reactivate trust between the
social capital and the associated economic activities, the so-called 'networks of relationships'
"social" to thus serve the entire community. That is to say, a space is created where everyone
we have a voice to express our opinions and thus achieve different views with the sole purpose of obtaining the same
common goal. It is a way to generate social trust and set aside the elements
utilitarianism that always predominates our relationships. Said in this way, it seems a
communist ideal, but it is quite far from it. It simply seeks that altruism and
volunteering make yourselves present in order to achieve common goals that many times the
The state does not comply or cannot comply. But the state can also act in this way and
Typical cases are found in Europe, where almost all countries are located.
aligned with this ideal. Ob. cit., International Cooperative Alliance, p. 18.

106
that term was used to nickname the innovative organizations that were going
creating in response to the new social problems that are emerging
capitalist society generated. But beyond being an instrument for the
denomination, Walras considered Social Economy as part
substantial to Economic Science, as an economic discipline for which
social justice was an unavoidable objective of economic activity. Created
Well, with this double perspective, to consider on one hand certain achievements
social as inherent to the economic mission, such as: social equality,
industrial democracy, etc., and to identify the new organizations that
with such objectives being formed, the 19th-century Social Economy
it mainly brought together three entities: cooperatives,
mutualities and associations. And those three organizations have been
traditionally considered the core of the Economy
Social144.

Regarding the historical background of the social economy, it

established at the ECO-CRI congress, on cooperativism, that in the
Throughout its particular history, Social Economy has gone through
periods with a significant social presence and others with less
relevance. The aim of this work is not to make a detailed analysis of
same. However, it is worth noting that it is from the 1970s onwards.
last century, when the Social Economy begins to resurge in a way
widespread in different countries.

The arrival of the economic crisis of the 70s marked an important milestone
for the European Social Economy. The changes that have occurred in the scenario

international economic factors led, among other things, to a loss of

144
ECO-CRI. What Are We Talking About When We Talk About Social and Solidarity Economy?
Concepts and Related Notions. Edition Congress of Eco Cric, Bilbao, Spain, 2008, p. 2.

107
capacity of national states as drivers of the economy and
with the ability to regulate and generate employment. The lack of employment
and the risk of exclusion from the labor market generated dynamics of
self-employment, reinforcing solidarity among economic actors, to
address the new needs or those that could not be
satisfied, particularly those of populations with fewer
resources, developing actions that favored the environment, the
recycling of materials, with a cooperative spirit of democratization and
responsibility145.

As such, alongside these processes, a has been occurring.

growing outsourcing of productive activities, among which we can
mention: services related to health, social care, care
personal and domestic services, etc., the demographic evolution and the
aging of the population, the diversification of the household profile, the
advance of female activity or the increase of inequalities generated
by the process of neoliberal globalization.

In this context, different types of organizations appear that

they adopt multiple legal and organizational forms, dependent on the
existing legal options in each country that do not have to coincide with
the classical forms of social economy146but that to a large extent

145
Ibid., see, above, note 145, p. 4.
146
The notion of social economy did not encompass organizational forms specific to the context.
Anglo-Saxon, where the emphasis is placed on private organizations that do not distribute
benefits, with the participation of volunteers and mitigators of market and state failures.
Under the Anglo-Saxon perspective, the third sector expands towards other non-profit organizations.
of profit, which included organizations where practices are not always carried out
coinciding with the cooperative doctrine in the sense that there is no democracy in the
decision making but with voluntariness in the social act, aimed at satisfying the
needs of third parties (not associates), such as foundations, NGOs, volunteers,
among others.

108
recover their democratic sense. This broad sector of companies and
organizations develop their activities between the public economy and the
traditional capitalist economy, although it is not always easy to establish the
precise limits to define them one way or another. They usually combine
within it, multiple mercantile and non-mercantile resources that range from
philanthropic donations, state subsidies and commercial income
up to volunteer and paid work.

They usually present a particular way of integrating logic of the

market alongside that of solidarity and redistribution, and take shape
management internals that may resemble those of companies
merchants or those of traditional civic associations of the third
sector147The analysis of the functioning of these organizations and companies,
of the place they occupy in current society, of the associated-economic logic
that governs its functioning, its political action, and its relationship with the state
and the market, as well as the potentialities of social change that can
to conclude, they have triggered a plethora of reflections and debates
interrelated that, starting in the 80s, have been developing
fundamentally in the European countries with the most tradition in the economy
Social, as well as in the Canadian Quebec.

The concept of Social Economy was present in the economy of

European countries since the 1980s spreading
more intensely during the nineties, as Bastidas points out-
Thin has frequently been used confusingly to refer to
to certain economic or organizational processes that, justified in the
social, they seek to solve economic problems related to the

147
Idem, see above, note 148, pp. 3-6.

109
popular sectors, blending according to contexts with other concepts
as popular economy, third sector, third way, alternative economy,
indigenous economy, marginal economy, economy of solidarity, or
reducing your world to only cooperatives148.

According to Defourny, it should be recognized first of all that

terminological ambiguity of the notion Social Economy, since the
combination of two such broad terms allows each one to develop a
own conception or definition of social economy, insisting more or less
in the economic aspect or in the social aspect149.

3.13.2 Characteristics.
The characteristics that differentiate organizations from the
Social Economy versus capital companies have been highlighted.
by the Advisory Committee of the European Commission for Cooperatives, of the
Mutualities, Associations, and Foundations, CMAF they are:

a) Primacy of the person and the social objective over capital, with the exception of
the foundations, they are all companies of people.

b) Voluntary and open membership and democratic control of its members

from the foundation.

c) Conjunction of the interests of user members and the general interest.

d) Defense and application of the principle of solidarity and responsibility.

148
University of Zulia Research Institute (Luz) Maracaibo, Venezuela; Economics
Social and Cooperativism. ed. Journal of Social Sciences, volume XII, No. 2. Maracaibo
Venezuela, 2006, p. 65.
149
LÓPEZ CARRASCO, Carlos Eduardo AND OCHOA HENRÍQUEZ, Haydée; "Policies
Subnational Promotion of Social Economy in Venezuela. ed. Journal of Sciences
Social Sciences (RCS). University of Zulia. Maracaibo. ed. Astro Data. Volume VIII, No. 3.
September-December. Venezuela, 2002, p.53.

110
e) Management autonomy and independence from public authorities; and

f) Application of surpluses to the social purpose through their reinvestment or

distribution according to the wishes of its members for job creation,
of activities, of new businesses, returns on invested capital,
services to members, associate-cultural activities, etc.150.

Among the characteristics of the Social Economy are:

a) Participatory democracy and self-management. The total must be verified.

equality in the participation in decision-making of all its members
or in the election of its authorities in the case this is delegated
function, such that if it is a productive organization for example, the
capital must be distributed in equal portions among the partners.

b) The practice of solidarity with special emphasis on the most

disadvantaged individuals of the group or of the community in general. The entities that

they promote the solidarity economy prioritizing associations of

unemployed, workers at risk of losing their jobs, and those who have the least
they have chances of finding work due to age, the lack of
grading, discrimination based on race or gender, etc.

c) Local development. Solidarity ventures arise in an area

specific to a group of individuals who suffer from a particular issue
using endogenous resources, the common life of the group is what reinforces the
cohesion of the community plus mutual needs.

d) Lastly, sustainability. Since the social economy is based on

the principles ofeconomic developmentregarding the care of the environment

150
Ibid, see above, note 150, pp. 66 and 68.

111
environment and the commitment to social cohesion, being a pioneer in the
social responsibility practices151.

3.13.3 Principles.
Among the first definitions of solidarity economy152are found
theLetter of the Social Economyfrom the Colombian national platform
CNLAMCA. According to this last one, it would set a precedent in the scientific field.

European, the social economy would be made up of private organizations,

mainlycooperatives,mutualitiesyassociationswhose ethics
respond to the following principles:

Democratic decision-making processes, heir of thecooperative principle

considered by some as central to democratizing power
decision, in the face of what happens in the capitalist private sector
where the capitalist principle of 'one share = one vote' prevails,
Primacy of people and labor over capital in the distribution of
the rents, which defines a logic of distribution of the benefits

151
BARRERA CEREZAL, Juan José; 'The Social Economy and Public Policies'. ed. Magazine
Public, Social and Cooperative Economy N° 62 CIRIEC. Spain, pp. 183–198.
Available on the internet at:http://www.econlink.com.ar/economia-social. Consulted on the 31st of
January 2012.
152
According to the French school, we can talk about Social and Solidarity Economy
("social and solidarity economy in Europe") as a conception in which all the
initiatives developed in this area share the following common characteristics:
1. They create or reactivate trust relationships and social networks ('social capital')
through associate-economic activities whose success significantly depends on a
good functioning of this aspect (social relationship networks). Acting in this way
the activities of Social and Solidarity Economy maintain "an open space and
accessible to all citizens of a local community, so that in this space
they can express their opinions, exchange ideas, and achieve different common goals.
the utilitarian elements are not predominant ("reciprocity space"). 2. They are
independent and managed by local committees, which usually present to
public calls assuming that they serve the collective interest. 3. They are placed
in an intermediate space between the monetary and non-monetary economy (Economy
informal, domestic / neighborhoods and self-production based on reciprocity, on the
solidarity and bartering; human capital.

112
 not linked and even contrary to participation in the share capital,
as revealed by criteria such as thecooperative principle of return,
theendowment of collective assetsthecompensation limited to
capitalor even lthe rule of no profit distribution
Purpose of service to its members or to the community before that of
profit, emphasizing the economic activity developed by
these entities have a vocation to serve people and not to
search for profit, the latter may appear but it will be in everything
an intermediate objective for the ultimate goal of the entity, which is the
to provide service and

Management autonomy, thereby particularly distinguishing itself from the

entities belonging to the public sphere.

The values that this definition contains,democracysocial interest,

distributive justicethey are printed imaginatively and in plural in the different
social forms of entities that make up this sector, for example with the
known cooperative principles in cooperatives.

3.14 Housing Cooperatives in Social Economy.

Regarding housing cooperatives in the social economy, it is worth
to say that FUNDASAL conducted a study called Historical Center of
San Salvador and the presence of Social Organizations, in the year 2005,
we will highlight some aspects that contribute to the present
research. Thus, it is stated in that document that as
characteristic of organizations for the early 21st century, in The
Salvador, individualism was a fundamental trait, which represented a

113
challenge for the reactivation of the Historic Center of San Salvador CHSS153, in the
Housing aspect, as it would require great efforts to ensure that
all of them agree on a housing project that will seek benefits with
equity for all sectors. Each social organization has dedicated itself to
develop and finalize their own activities according to their
functioning specialty, simply reaching out to support or coordinate
some activity of mutual interest with another organization.

This is a fairly common feature among the inhabitants of

this area, as 50% of them have no interest in organizing themselves, while
16.67% say they prefer to solve their problems individually. It is
It is important to know that 75.26% of this population believes that the purpose of
social organizations are responsible for the improvement and beautification of the place

where they reside, and only 8.24% believe that they help to organize the
families. Currently, the connection between various social organizations
that remained for a long time with the Catholic Church has passed from a
eminently religious purpose, that is to say everything related to the
brotherhoods, towards the connection with the social, in terms of the pastoral
religious, to give attention to the problems presented by the population of
its parish, and not around the saint protector of its brotherhood.

It is thus that said study reveals that the Social Housing Fund,
FSV since the year 2005, made certain adjustments to its policies of
financing to facilitate access to housing loans for a larger number

153
San Salvador received the title of city on September 27, 1546, by decree of
the kings Charles V of Germany and I of Spain. The capital city was founded as a Villa in
1525, its first mayor was Don Diego de Holguín. The foundational point of the city was the
Liberty Square, from which the government buildings and churches were constructed,
family residences and commerce, using the grid for this purpose, characteristic
which remains to this day in the Historic Center of San Salvador.

114
number of Salvadorans. The main change corresponded to the fact that the
credits would no longer be exclusive to family groups, but would be
granted to young adults with formal employment. In addition, it
I would create a permanent line so that this population can receive a
second credit for a new or recovered home; increasing the lines
of credits for construction at US$ 23,000.00, for repairs and
extensions to US$ 7,000.00, for lots or installation of services at US$
6,000.00, and debt refinancing up to US$ 23,000.00154.

Another important aspect to consider from the study of

FUNDAMENTALLY, the housing supply decreased in the year 2005. According to
preliminary data from the Vice Ministry of Housing and Urban Development,
VMVDU, the construction of homes was lower than in 2004, which
It reached 27,000 units; with an estimate for the year 2005 of 20,000.
The Salvadoran Chamber of the Construction Industry, CASALCO
argument that this situation was due to the low purchasing power of the
families, which have lost purchasing power due to the crisis from
the one that crosses the economy of the country155.

As a consequence of this, a housing program was initiated.

implemented by the government, through the Vice-Ministry of Housing and
Urban Development, which launched its program 'Building a Dream', that
It aimed to reduce the quantitative and qualitative housing deficit.
both in urban and rural areas. To fulfill this purpose, it will be
provided families with financial assistance through subsidies
that will have to be used to acquire or improve your home, for which
154
The Today Diary, dated Tuesday, September 6, 2005. Available on the website
from the newspaper. Written by Evelyn Machuca. Consulted on January 12, 2012.
155
The Graphic Press, dated Wednesday, September 7, 2005. Written by Mariana
Belloso. Available on the newspaper's website. Consulted on January 14, 2012.

115
I have US$ 94 million, of which US$ 74 million came from
loan from the Inter-American Development Bank, IDB. This program
it was aimed at both the formal and informal sectors, and it will encompass the
construction of new housing units, improvement of neighborhoods and
legalization of lands.

The study also reveals that the industry's reaction to the

government actions due to the housing needs of certain sectors
from society, is that the construction industry wants to rise up. The
construction sector, which in 2004 closed with negative figures of -13.6
% of GDP, believed that this situation could be overcome, or at least, with
luck, remain the same at the end of this exercise of the year 2005. For CASALCO
during the first half of the year 2005, the sector stopped deteriorating,
anticipating that in the second semester this productive activity will increase
dynamism. According to data from the Central Reserve Bank (BCR), the GDP of the
construction, as of March 2005, closed at -14%, while the Index
of the Volume of Economic Activity (IVAE), as of June 2005, for the
construction sector was -10.9%156.

To our knowledge, most of the inhabitants of

urban shantytowns in the year 2005 had no program for
improve their homes. Therefore, the program "Building a Dream"
driven by the Government through the Vice-Ministry of Housing
Urban Development, VMVDU did not include the families living in areas
marginals or slums of urban areas. For example, in the Area
San Salvador Metropolitan Area, AMSS has 300 communities.
marginalized, whose inhabitants live in precarious conditions. Of this total

156
The Daily Today, dated Friday, September 9, 2005. Available on the website
from the newspaper. Written by Evelyn Machuca. Consulted on January 16, 2012.

116
of settlements, 85% need a process of improvement and not of
relocation, which would have to be applied only to the communities
located in high-risk areas. This opinion is shared with the Vice-
ministry of Housing, says the Executive Director of FUNDASAL157.

Following this, always in the year 2005, the Vice-Ministry of

Housing and Urban Development began the implementation of the program
"Building a Possible Dream", which aimed to benefit 11,000
families, with a monetary fund of US$ 40 million granted through
a loan from the IDB. The Improvement of neighborhoods, which is one of its
main instruments, consisted of the introduction of basic services in
the communities and improvement of the infrastructure and equipment of the
community, being carried out through the municipalities, which sent
their proposals, committing together with the communities to
contribute 30% of the project cost by participating in a public tender
since they have to meet certain requirements. Until September 16 of
In 2005, 30 municipalities had submitted their proposals, among which were
they will distribute the first US$ 4 million158.

As an example of the contributions of the entities that make up

social economy, in El Salvador, we can mention the case of the municipality
from Guadalupe, in which the International Cooperation Agency
Spanish, AECI in El Salvador, concluded its cooperation for the
post-earthquake reconstruction, which has been developed since 2003. The
Spanish cooperation invested US$ 11 million across the country, which
were used for the reconstruction of health centers, schools,
157
Co-Latino Newspaper, dated Wednesday, September 14, 2005. Written by Ramón D.
Rivas. Consulted on January 30, 2012.
158
The Today Journal, dated Friday, September 16, 2005. Available on the page
newspaper website. Written by Evelyn Machuca. Consulted on January 30, 2012.

117
child homes, cultural heritage, risk prevention and assistance to
charity centers159Despite all of the above, in the year 2005 it was given
a slow public investment. The State's public investment is progressing slowly.
By June, the Government had only invested 26.2% of what has been
established160.

Likewise, the global report on Human Development from the year 2005,
it reveals an unflattering outlook for the country regarding its progress
achieved in the field of social development. Within the list of 177 countries
evaluated by the United Nations, El Salvador ranked in the position
104, which indicates that the advances are very small and slow, having
a direct relationship with the lack of reactivation of its economy161.

From all of the above, we can note that the social economy has
greatly contributed to achieving some purposes of granting
housing for thousands of people who did not have decent housing,
noting also the collaboration and contribution of the cooperatives of
housing in such objectives.

3.15 Current Difficulties of Housing Cooperatives.

Regarding the difficulties of housing cooperatives, there
Consider that not everyone suffers losses due to the real estate crisis. In the case of

from housing cooperatives, one of the least expensive ways to

buying a house, the halt in 'brick' has allowed access to land that until

159
Co-Latino Newspaper, dated Saturday, September 24, 2005. Written by Ramón D.
Rivas. Consulted on January 31, 2012.
160
La Prensa Grafica, dated Thursday, September 1, 2005. Written by Mariana Belloso.
Consulted on January 31, 2012.
161
Publication of the Diario de Hoy, dated Thursday, September 8, 2005. Written by
Evelyn Machuca. Consulted on January 31, 2012.

118
now it was expensive and scarce with the money that has been saved over the years,
as explained by Alfonso Vázquez162, "The current investment in land is "}
possible thanks to the cooperative associates who have been carrying out
contributions to frozen checking accounts when it was harder to buy
"ground," he says. This is supplemented by the guarantees that they offer to the entities.

financial cooperatives consolidated, which makes it easier to access credit

in case it is needed,
cooperatives that are already consolidated because they are capitalized and solvent.

Ultimately, "now there is indeed cheaper land and the cooperatives it

they buy with the saved money and complementary loans," he claims.
president of Concovi. This makes it possible to start works that were
scheduled years ago and face initial expenses such as the
geothermal studies, quality control or building project.
This land comes from both individuals and municipalities.
autonomous communities that have accelerated offers and competitions of
land designated for urban development as a consequence of the crisis.

According to the data managed by the employers' association of cooperatives, the price of

land has become cheaper by between 20% and 40% in 2008. Thus, the projects
they increased by 24% last year compared to 2007 and were built
about 30,000 homes in Spain. "The number of homes has increased in
cooperative regime, especially in Madrid, Barcelona, Basque Country,
Galicia and Andalusia, which is where the highest demand is,163.

162
Dr. Alfonso Vázquez serves as president of the Confederation of Cooperatives of
Concovi Housing of Spain.
163
This data makes us reflect on how beneficial it would be for the population.
Salvadoran the effective application and development of housing cooperatives, alleviating in
a great way the housing deficit that already exists, according to data handled by both
FONAVIPO, FSV and FUNDASAL.

119
 Francisco Naranjo speaks along the same lines.164although it nuances
the biggest difficulties that exist in housing promotions
protected165Although there are more possibilities now, the ground continues to be
insufficient in areas like Madrid considering the high demand.
report. In addition, the price of the VPO modules has increased.
excessively in the Community of Madrid after four years without
"rise" and distances itself from the possibilities of lower rents, especially
in times of crisis like the current one. For this reason, Naranjo insists on the
the need to 'bet more than ever' on protected housing.

In the last twenty years, Vitra has delivered 30,000 homes in

all of Spain, 10,000 of them in Madrid. Currently, it is on promotion-
construction of between 1,000 and 1,200 properties. Naranjo assures that the
projects have "grown compared to previous years", but "we are concerned"
the future allocation of land and the problems of unemployment and restriction of
credit. "Many cooperative members have had to backtrack
because they have lost their jobs or earn very little." On the other hand,
although cooperative societies do not have problems with financing
banking, yes, "the substitution is concerning once the members go to
bank with the keys in hand," he explains.166.

Housing cooperatives have some problems that need to be addressed.

take into account before joining them:

164
Dr. Francisco Naranjo. President of the Vitra housing cooperatives, promoted by
Workers' Commissions, in Spain.
165
The protected housing is built with the aim of meeting the basic need.
of housing for those groups with greater difficulties. To access one of these
Housing is required to meet a series of requirements established in the regulations.
corresponding. In addition, the mentioned programs determine the means of access to
these protected housing units, always respecting the principles of equality.
166
Housing cooperatives are gaining ground at the expense of the crisis
Unable to access the provided URL.
Consulted on January 31, 2012.

120
The price they have given can vary greatly. From the moment that
Costs can change a lot until the work is finished.
budgeted, for example, the price of land can rise, can
increase taxes, can change the regulations and force changes to the
project, etc.…

Many cooperatives are managed by promoters and construction companies:

for them it is just another operation, with less risk because they deal with a lot
people who put money in, who barely know each other, and who have never
mounted a similar work. This allows them to easily get involved with the
contributions of the cooperative members.

3. The cooperative apartment cannot be sold freely before it is

delivered, it must first be communicated to the cooperative and, if within three
months, no other cooperative member wants to buy it, it can be sold
contribution to the cooperative, the future housing.

4. If things go wrong and the cooperative goes bankrupt, it is very difficult to recover the

money. In a bankruptcy proceeding, the shareholders are always the

last to recover money, and who is in a cooperative, is
shareholder.

In summary, we can say that the difficulties that mostly

The housing cooperatives in El Salvador face, first of all,
the lack of knowledge of the population about this type of entities and above all
the lack of promotion by the State of these, which would contribute much more to the
fomentation of the same.

121
 3.16 Challenges of Housing Cooperatives.
Among some of the challenges of Housing Cooperatives are
find the implementation of housing policies, as it is in view of
everyone, access to housing financing opportunities, from the
population of the lowest income families has been hindered by three factors
main: insufficient and ineffective support programs, lack of
guarantees to access mortgage loans and inability to credit
permanent income, the latter is one of the biggest problems in the
informal sectors of El Salvador. The solution to the housing deficit, from
the state is consistently very deficient in implementing
regulations, promotion in the private initiative, more accessibility to housing
for the poorest population or those with no ability to incur debt, up to
benefit them with a direct, non-reimbursable housing subsidy,
combined with family effort.

However, there are families with very low incomes and difficulties.
severe to access a decent housing, due to the prices that for
they are tall, this leads to those sectors benefiting from a
social interest housing access program, housing with standards
suitable in terms of location, lot or land size, services
basics, constructed surfaces, construction materials used and
aesthetic finishes, support with subsidies for housing acquisition,
favorable installment financing, housing prices, and land more
accessible.

To comply with Article 119 of the Constitution of the

Republic of El Salvador, during the 80's, the State built
subsidized housing projects, reducing interest rates and prices
of the housing, however, the housing deficit continued to grow. In

122
In the 1990s, the direct intervention functions of the State decreased,
in the housing sector, and a subsidy system was created, with programs
direct, based on the interest rate, with greater attention to legalization
of properties to ensure that the largest number of people access a
decent housing, the Vice-Ministry of Housing and Urban Development, with its
state housing policies were responsible for the following:

a. Design policies, strategies, programs, and projects to produce

housing solutions for the low-income population without access to
housing produced by private entrepreneurs.

b. Operate with municipal governments167Authorization of

urban and rural development projects; legalization of land tenure, in
property or another equivalent form, of land for housing or solution
housing for the low-income population; Management planning
urban and territorial of the country; Housing financing; Facilitate access to
works, services, and community equipment to segments of the population of
low income; Normalization and control in the production of materials
construction and housing solutions; and also, promote studies
permanent structures to develop other construction technologies and materials,
that favor the development of social housing projects and
technologies that result in better quality and lower costs of housing.

As a second challenge faced by Cooperatives of

Housing can be added to the existing housing demand proposal.
In the country168In the year 2000, the total population was 6.3 million people.

167
These are: Libertad y Progreso Institute (ILP), National Registry Center (CNR),
Social Housing Fund (FSV) and National Popular Housing Fund (FONAVIPO).
168
Available at: DYGESTIC website. Accessed on January 31, 2012.

123
estimating 9.8 million in the year 2025 and 13.6 million in the year 2050169. He
the housing deficit was estimated in the year 1999 at 554,324 units.
agreement with the Vice-Ministry of Housing and Urban Development, year 2000 170, the
which had not been significantly reduced, until the moment when
the last two earthquakes occurred in the year 2001, which increased
this deficit, at 175,000 units, most of which are homes
rural, scattered or located in small settlements.

Most of these houses were still made of old adobe,

wattle and daub and other miscellaneous materials formerly used
to build the houses. FUNDASAL presents itself as another option,
becoming private agents producing housing for the groups
social groups with lower incomes, this in light of the impossibility of companies
private builders to serve these segments of the population. The
earthquakes, tropical storms, and volcanic eruptions that occurred in the
country, regardless of material, personal, economic damages
and social challenges expose the limitations of action
governmental characterized by gaps, vices, and lack of protection

169
Data according to the 'Population Reference Bureau'; Report provided in the year 2000 before the
UN, by China, a Census That Really Counts.
170
The increase in housing demand is linked to population growth, but
the destructive effects of natural phenomena increase this index and cause
great losses in families with the lowest economic resources, for example, before
In the earthquakes of 2001, 78.1% of the unmet demand corresponded to families.
whose income was below two minimum wages. The attention to demand
Housing in the country has historically been promoted with the creation of the Housing Institute.
Urbana (IVU), in the year 1950, to develop public housing programs, initiated in
the decade of the 1930s. The National Housing Finance Company (FNV), since the
The 1960s laid the foundation for the formation of a significant number of companies.
private companies dedicated to the construction of large-scale housing projects, aimed at
mainly to social groups with middle incomes. The Social Housing Fund
(FSV) in 1973, established a program with the participation of the State, employers, and the
formal workers with income up to three minimum wages were directed to finance
housing for low-income workers.

124
left in the current housing policies and the mismatch with which it works
institutionality.

In an attempt to counteract the limitations and seek a better

efficiency has encouraged the incorporation of non-profit organizations
governmental entities as executing bodies of the programs of
FONAVIPO without more favorable incidence towards financing for
housing that overcomes the obstacles of poverty and informality, improves
of focused settlements, in the reconstruction of the housing
destroyed by natural phenomena171.

Among the most important aspects that have influenced the little
progress of the reconstruction process, are: the insufficiency of resources
financial resources allocated to housing reconstruction, the slow pace in the
execution of reconstruction projects, high land prices for
the construction of housing, among others. Also, the way in which
the government policy of reconstruction and various sectors evolved
from International Cooperation, resulted in a majority offer of
donated housing.

A very important challenge that cooperatives must face

Housing is to facilitate access to adequate housing, this is an objective.
from the national government housing policy, for the acquisition of
housing through the promotion of the beneficiaries' own effort,
short and long-term financing, support to reduce the plots
housing units in a state of irregularity and illegality, and the regulations and
provisions aimed at increasing housing accessibility, for the
the majority of the population that demands decent housing.

171
This will be elaborated much more in Chapter V, where a section will be developed.
about said institution.

125
 The process of housing reconstruction and developing the Plan
National Territorial Development, are housing projects to be continued.
executing, since after the earthquakes of the year 2001, and the storms
tropical storms that plague the country year after year, the deficit has increased
housing, therefore, the priority of housing projects would be the
reconstruction of housing in low-risk areas.

One of the ways in which housing cooperatives can ...

facing these risks is through investment in low-cost housing.
To implement the programs of the national housing policy, the
financing and support both state as cooperating countries and
foreign institutions are decisive for its construction because these
they would be low cost and thus benefit families who, due to their lack of
acquisition capacity, they cannot have access to one of the that
they are offered in the real estate market; on the other hand, from the State
they need direct housing subsidies, combined with effort
familiar and access to credit, this is fundamental for overcoming the deficit
housing that exists in the country.

126
 CHAPTER FOUR.

4 LEGAL FRAMEWORK.

SUMARIO:4.1.1. Derecho interno 4.1.2 Constitución de la República 4.1.3 Laws

secondary 4.1.4. Regulations 4.2 Legal framework on the right to access housing
digna 4.2.1.Derecho interno 4.2.2. Constitución de la República 4.3. Derecho comparado
Venezuela

In this chapter, we address the legal framework of the

housing cooperatives in El Salvador and in this way know and expose
how, in our country, this type of cooperativism is regulated, as in the
In the previous chapter, we exposed that housing cooperatives face the
the issue of having little development and application in El Salvador, this
it results in little legislation on the subject and ignorance
about its development by the majority of the population, therefore it is a resource
little or nothing utilized. It begins by stating what the Constitution indicates
of the Republic, as the supreme law of the country, to then study the law
secondary school and its respective regulations, where we will find out how much
interest and promotion have the housing cooperatives in the country. As
this research is not limited to understanding about housing cooperatives,
but also the right to access decent housing, we make a
Review of the legal regulation regarding such right in El Salvador.
To conclude, we conducted research on how in some countries
Latin Americans and Europeans regulate and promote cooperatives of
housing and the facilities that its inhabitants have to access a
decent housing.

127
 4.1 LEGAL FRAMEWORK ON COOPERATIVES
HOUSING.

4.1.1 Domestic Law.

As mentioned in the previous chapter, the cooperatives of
housing, are those that aim exclusively to provide for their
associates housing o locales buildings e installations
, improve, conserve, and manage said properties and the
common elements; create and provide the corresponding services, in addition
to carry out the rehabilitation of housing, premises and other buildings and
facilities intended for them. Consequently, they may be associated with
Housing Cooperatives for individuals who need accommodation
for themselves or their relatives172Therefore, in this section it is appropriate to analyze
the legal framework applicable to housing cooperatives in our country,
from three points of view: the applicable regulation in the Constitution of the
Republic, Secondary Laws and Regulations.

4.1.2 Constitution of the Republic.

Regarding the legal regulation that our constitution
It affects the Housing Cooperatives, it should be mentioned that it does not
we have regulation for this form of association, so it is forwarded
strictly to the Secondary Laws.

Article 114 of the Constitution states that the State must facilitate the

organization of all types of cooperatives, as well as their expansion,

understanding this, the increase of cooperatives in the country; being the
State who will have to carry out the special regulation of this type

172
Puntoycoma/cooperatives management, title: "Housing Cooperatives". Available at:
The provided text is a URL and does not contain translatable content.
Consulted on February 1, 2012.

128
cooperatives, in addition to this, provide legal and organizational advice to the
general population.

Another article that is closely linked

indirectly with the housing cooperatives is in article 118 Cn that
It is declared of social interest the construction of housing.
The state will seek for the largest number of Salvadoran families to reach
to own their home......

The most important thing to highlight from this article is the fact that the

The state must ensure that the largest number of families become
owners of a home, those knowledgeable in the field establish that
this is a direct obligation that falls on the State, thus
it could be fulfilled through the help provided by the
housing cooperatives, through which assistance is provided for the
obtaining housing for its members by helping the State with this
obligation. As can be seen, the regulations regarding are null.
the housing cooperatives in our legislation, which is the challenge to
overcoming must be the implementation of provisions that address
specifically about these.

4.1.3 Secondary Laws.

As for the secondary laws, we have to refer to
the General Law of Cooperative Associations173, which mentions this type
of entities, where the legal framework for all types is established
Permissible cooperatives in our legal system.

173
General Law on Cooperative Associations. D.L.339 of May 6, 1986. Published in
the D.O. No. 86.

129
 Among the considerations of the Law, it is established that: I. Article 114 of
the Constitution establishes that the State will protect and promote the
cooperative associations, facilitating their organization, expansion and
financing; II. That based on the aforementioned constitutional provision and
in response to the rapid growth of the cooperative movement in the country and to the
the need that cooperative associations have to have a
adequate and dynamic legislation that responds to the needs of
Salvadoran Cooperative Movement, which allows it to develop socially,
Economically and administratively, it is advisable to enact the legislation.
corresponding.

From the reading of the above, we can notice that the object with which it
this Law was created to fulfill the Constitutional obligation towards the
State, to promote the cooperative movement of our country already
perceptible from the year 1986.

Article 1 of the General Law on Cooperative Associations states

The formation of cooperatives will be authorized as associations of
private law of social interest, which will enjoy freedom in their
organization and operation in accordance with what is established in this law,
Law for the Creation of the Salvadoran Institute for Cooperative Promotion

INSAFOCOOP, its Regulations and its Statutes. Cooperatives are of

variable and unlimited capital, of indefinite duration and of responsibility
limited with a variable number of members. They must be established with
purposes of service, production, distribution, and participation.

It is said that they are of private interest because their formation,

organization and execution are the responsibility of private entities, that is to say, there exists

total autonomy regarding its functioning and rules of coexistence; of

130
social interest because what they seek is to meet common needs of a
a determined group of people, in this case their associates.

Regarding the regulation of Housing Cooperatives the

The General Law on Cooperative Associations fell short as in the
Chapter II, titled on the Different Classes of Associations
Cooperatives specifically in art.10 only provide that: They are
Housing Cooperatives whose purpose is to provide for their members
housing through mutual aid and self-effort. Nevertheless,
it must be understood that all the provisions contained in said Law are
applicable to this type of cooperatives, due to not having a development
special for them.

As we can see regarding the cooperatives of

housing the General Law of Cooperative Associations, only the
mentioning as a type of cooperative without developing them, limiting their
regulation of a legal provision, regulating what concerns it
general form along with the other types of cooperatives, so that
we believe that the State should create a specific regulation for
these types of cooperatives, which would be very useful especially in
a country like ours where the majority of the population does not have
a home of one's own, violating what is provided by Article 114 of our
Magna Carta.

4.1.4 Regulations.
Here we will refer to the General Regulations of Associations
Cooperatives174which develops everything provided in the referred Law, being
Thus, this Regulation incorporates new provisions. It states Art. 90.

174
Regulations of the General Law of Cooperative Associations. D.E. No. 62 dated 20 of
August 1986. D.O. No. 7 volume 294 dated January 13, 1987.

131
According to the Regulation: They are Housing Cooperative Associations, those that have

for the purpose of acquiring properties for subdivision and/or construction of

housing, as well as the improvement of the same through mutual aid and
own effort, in order to sell or rent them to their associates.

As we can see in the previous article, to achieve its objective the

housing cooperatives will do it in two ways, mutual aid and the
self-effort which basically consists of: mutual help: it is that in
where donations and organizational advice from countries are received
cooperators, international institutions and national organizations;
own effort: it is where the associate himself contributes hours of work
reflected in labor.

Something important to mention is what Article 91 of the RLGAC states.175

where it establishes that one of the requirements to be an associate of a
the housing cooperative is constituted by the lack or absence of housing,
it should be understood that excluded are individuals who possess
real estate

Likewise, another of the functioning rules of cooperatives is

housing is that no member may take on lease or acquire in
property, more than one residence nor may it be sublet. This is due to the
The purpose of these cooperatives is to help their members acquire a
own housing, as they are people who do not have the resources
economic ways to obtain it another way.

Something that deserves to be highlighted is what is stated in Art. 97 RLGAC, which

provides that Housing Cooperatives can establish links with

175
Article 91: In order for a member to acquire housing, they must prove the lack of
real estate

132
national and international institutions, for obtaining
financing aimed at specific housing projects. With which
is providing this type of cooperatives the opportunity to obtain
help for the financing of your projects.

4.2 Legal Framework On the Right of Access to the

Decent Housing.
The right to adequate housing is a fundamental right, recognized
and ratified both in our internal legal system and in
international instruments, the violation of the right to housing denies the
possibility of a dignified life.

The elements that constitute the human right to housing,

according to the International Habitat Coalition, HIC176tenancy security;
goods and services; economic accessibility, habitability, accessibility
physics, location, cultural traditions, freedom from possible evictions,
information, training, participation, and freedom of expression,
relocation, healthy environment, security and privacy177.

Despite the fact that this right is well defined, there is a great
distance between words and actions. According to civil society and
different experts, the main culprit is corporate globalization and its

176
International Habitat Coalition, HIC, is a network of NGOs that works on the issue of
housing, developed a monitoring tool that identifies 14 constitutive elements
of the human right to housing, elements that arise from the obligations that ...
States contracted by ratifying different international treaties and other commonly used laws.
accepted.
177
Simón Bolívar Andean University. "The Right to Adequate Housing." Edition of the
Magazine Andean Contributions. Ecuador, June 2004. Available on the website:
Unable to access or translate content from the provided URL.Consulted on the 3rd of
February 2012.

133
negative effects on the lives of the poor. As Miloon Kothari points out,
special rapporteur of the UN on housing issues, "the pressing
income and opportunity inequalities between and within countries have
led to an increase in the number of people without adequate housing and
secure. The human rights that individuals and communities possess
Housing, water, and sanitation continue to erode as
The privatization process is deepening and accelerating.

The right to decent housing is not only a right that must be

regular by the internal law of a State, but rather is located
content in different international instruments that protect it,
among those we can mention "The Universal Declaration of Human Rights"
"Humans," which regulates in its article number 25 the right to
a decent housing: Every person has the right to an adequate standard of living
that I assure you, as well as your family, health and well-being, and especially the
food, clothing, housing, medical assistance and services
necessary social benefits; also has the right to insurance in case of
unemployment, illness, disability, widowhood, old age or other cases of loss of
their means of subsistence due to circumstances beyond their control
will178.

Likewise, another of the instruments that contains this right in a formal way
expresses the International Covenant on Economic, Social and
Cultural179In its article 11 it establishes: 1. The States Parties in the
present Pact recognizes the right of every person to an adequate standard of living

suitable for himself and his family, including food, clothing, and housing

178
Universal Declaration of Human Rights, adopted and proclaimed by the
Resolution of the General Assembly 217 A (III) of December 10, 1948, in Paris.
179
International Covenant on Economic, Social and Cultural Rights. Adopted and opened to
the signature, ratification and adherence by the General Assembly in its resolution 2200 A ( XXI), of
December 16, 1966.

134
adequate, and to a continuous improvement of living conditions. The
States Parties shall take appropriate measures to ensure the effectiveness of
this right, recognizing for this purpose the essential importance of the
international cooperation founded on free consent180.

In Observatory Number 4, regarding paragraph 1 of article 11 of the Pact

International Covenant on Economic, Social and Cultural Rights provides that the
the right to housing should not be interpreted in a strict sense or
restrictive that equates it, for example, with the shelter that results from the mere
made of having a roof over one's head or considers it
exclusively as a convenience. It should rather be considered as the
right to live in safety, peace, and dignity somewhere... demands that the
"housing" is interpreted in a sense that takes into account other
various considerations, and primarily that the right to housing is
must guarantee to everyone, regardless of their income or access to
economic resources. …it should not be understood in the sense of housing alone,
right to adequate housing181.

As we can see, the right to decent housing has broad...

international protection through legal instruments before
mentioned, which oversee and set the guidelines for regulation
in each ratifying State, that is why there is international exaltation of the law
in study. To the legal guidelines set by the Universal Declaration
of Human Rights, and the International Covenant on Human Rights
Economic, Social, and Cultural rights regarding the right to housing
dignified and appropriate, they are not given the necessary importance and compliance, still

180
Ibid, see, below, note. 211, p.146.
181
Social Policy and Human Rights Observatory, INCIDE Social. Available
http://www.observatoriopoliticasocial.org/index.php?option=com_content&view=category&
layout=blog&id=37&Itemid=105.Consulted on February 3, 2012.

135
when Art. 1 Cn clearly and precisely states that the purpose is to
the whole state activity revolves around the human being itself.

4.2.1 Domestic Law.

Regarding the domestic law that regulates the right of access to the
dignified housing we have the Constitution of the Republic.

4.2.2 Constitution of the Republic

Articles 1 and 2 of the Constitution of El Salvador recognize the
human person as the origin and the end of the activity of the State and its
right to life, to physical and moral integrity, to freedom, to security,
to work, to property and possession, and to be protected in the conservation and
defense of the same.

Article 101, for its part, emphasizes that the economic order must
essentially respond to principles of social justice, which aim to
to ensure all the inhabitants of the country a dignified existence of being
human. Specifically, and as previously mentioned, article 119
establishes that 'the construction of housing is a socially beneficial activity
and obliges the State to ensure that the largest number of Salvadoran families
become owners of their home.

Being this the only legal regulation that deals with the right to the
housing in our legal system, which shows the great void
existing, as well as the lack of interest from the State in guaranteeing the right
access to housing for its inhabitants, since beyond this there is nothing more
secondary laws that deal with this, nothing more than the instruments
international mentioned in the previous section.

136
 4.3 Comparative Law.
The cooperative movement in the Latin American region is governed by the
fundamental principles of cooperativism implemented by the pioneers
from Rochadle, from which its values are put into practice, hence the
Countries that are part of the International Cooperative Alliance resume
explicitly in their respective laws the general principles.

In this section, an analysis has been made of each of the laws of

Latin American countries such as: Argentina, Venezuela, Chile, Ecuador, from
Europe, we refer to Spain, and from Central America to Costa Rica.
Rich to obtain similarities and differences of each of the laws with
regarding the General Law on Cooperative Associations of the country.

4.3.1 Argentina.
One similarity that El Salvador and Argentina share is that in these
countries, there is no special law that regulates housing cooperatives,
Furthermore, the General Law of Cooperatives does not establish a
special section that regulates housing cooperatives.

In Argentina, cooperatives have variable capital like...

establishes article 2 of the law182as in the legislation of the country which says
In its art.1 LGAC "Cooperatives have variable and unlimited capital, of
indefinite duration and limited liability.

Regarding the fundamental differences that exist in both.

the laws in Argentina do not regulate cooperative integration itself; rather
that it is called merger in its articles 82 to 85 and in El Salvador it is regulated
from articles 24 to 31.

182
Cooperative Law of Argentina, Enacted under Decree No. 46/70, in Buenos
Aires.

137
 One of the differences that exists in the cooperatives law of
Argentina is that in article 2 it mentions that it presents a characteristic of the
mutual assistance for all classes of cooperatives, not so the legislation of
country since this characteristic only belongs to cooperatives of
housing as established in article 90 of the RLGAC.

Regarding the age of their associates, it varies as in Argentina the

the minimum age must be 18 years, as established by Art.17
Individuals over eighteen years of age can be associated.183no
thus in the country it can be 16 years old as established by art. 19 LGAC
To be a member of a Cooperative, it will be necessary to be over 18 years old.
of age and meet the specified requirements...those under 16 years old
Minors need authorization from their parents or representatives.
legal requirements to enter as associates, intervene in operations
social

Regarding the number of members in Argentina, there is no number.

minimum but in El Salvador yes and it has to be one of 15 members as it is
stated in Art. 15: "with a minimum number of members determined
according to the nature of the Cooperative, which in no case may be
under fifteen

Regarding administration in Argentina, it is through

board of directors established in Art. 63 of the Argentine law and
in El Salvador it is through the General Assembly of Associates, Council
of Administration and through the Oversight Board. Established in the
Article 32

183
Cooperative Law of Argentina, Promulgated under Decree No. 46/70, in Buenos
Aires.

138
 4.3.2 Venezuela.
El Salvador resembles Venezuela in its legislation as it does not
specifically regulates housing cooperatives addresses it from
generally speaking, it means that they are based on the common law applicable to all
cooperatives are also based on the same principles and values. But
Within the legislation of Venezuela, there is a law that guarantees the right
to housing and a dignified habitat that ensures their protection as
contingency of social security and non-profit public service, for the
individual and collective enjoyment. Which is named 'Law of the Regime
Housing and Habitat Benefits.” This law includes some of the
principles of cooperativism such as: the profit condition, is of
social nature. For this reason and for the purposes of this research,
Do you think it is necessary to take this law as a parameter to draw a parallel?
with the law of El Salvador.

One of the differences that exists between the two laws is regarding
to the object since in the law of Venezuela, its main objective is the
progressive satisfaction of the human right to housing resulting in
priority to low-income families sees the right to access a
decent housing regulated in Article 2 of the law184.

They are similar since both in the law of Venezuela and the one of El
Salvador, regulates the social interest and that they must not be for profit.
Articles 5 and 7 of the housing and habitat law, and in the law of associations
cooperatives in Article 1. Another similarity is that they are formed with the

participation of communities and individuals who wish to receive help or who

form in a cooperative Art.8 of the law, and in Art.3 of the LGAC.

184
Law on the Housing and Habitat Benefits Regime. Published in the official gazette of the
Bolivarian Republic of Venezuela No. 38.182 of May 9, 2005.

139
 On the other hand, we can take the Cooperatives Law as a basis.
Venezuela Regarding the age of its members, it is the same as they can
news concerning minors as established in Article 18 number 4 of the law
Venezuela "They can be associated: Minors with authorization from their
representatives, in the terms established by the statute and in accordance
with the laws that regulate the matter185in the country in Article 19 where
it establishes that minors under 16 years old may become members with prior
authorization from their parents or legal representative.

Furthermore, another difference that exists is that in Venezuela there is a

National Housing and Habitat Bank Art.21 as the sole administrator of the
resources allocated to projects aimed at meeting the
fundamental right to access decent housing and in El Salvador it does not
Are there types of banks that help associations that are dedicated to
help the most needy, but the funds for this type of
projects are funded by international cooperation.

How can we realize through the development of this

research in Venezuela, if there are both laws and institutions
nationals who develop and care about the well-being of their
inhabitants not so in El Salvador who are concerned about getting things moving
projects aimed at ensuring the right to access to a
Dignified housing is the NGOs, international cooperation, and the same people.
what troubles him with this problem186.

185
Special Law of Cooperative Associations of Venezuela, under Decree No. 1,440 30 of
August 2001.
186
CHAVEZ NUÑEZ, Fernando; 'Cooperative legislation in America', Piados Editorial, 1st
edition 1999, p.35.

140
 4.3.3 Chile.
Chile has been one of the countries in Latin America that has done the best

developed the housing cooperative law, as it has a series

of laws that regulate it, although it regulates it in a different way than the
other countries because it emphasizes development more than rights
access to adequate housing, as a fundamental right of being
human.

In Chile, housing cooperatives are regulated through the 'Law

"Working Room" which allows for the promotion and support of this type of
associations and by promoting the construction of hygienic housing and to
modest prices are being prioritized for the most needy class, which
allows for the reduction or even eradication of other types of social problems that arise

product of poverty and overcrowding, allowing us as a country,

to progress and advance in their economy.

4.3.4 Spain.
In Spain187the right of housing cooperatives is regulated to
through the Cooperative Law, specifically in section three 'of the
"Housing Cooperatives," which includes Articles 89 to 92. Regulated by
the following form provides a clear concept of what cooperative law is
of housing, the form of constitution, registration and principles which are
based on the principles implemented by the pioneers of Rochadle,
providing a solution to the housing problem of the population.

In comparison to Salvadoran domestic law: within the Law of

Cooperative Associations do not have a special section that regulates the
housing cooperatives and therefore must be governed by the general principles

187
Cooperative Societies Act of Spain, Law 27/1999, of July 16.

141
of cooperativism. Not so in Spanish legislation which does have a
special section where the parameters to be followed and taken into account are given by
the cooperatives to be established, it should also be added that they are also governed

by jurisprudence. They see cooperative law as a way to facilitate the

access to a decent home for physical, intellectual, and psychological development
from the people who request it.

4.3.5 Costa Rica.

This country has the Cooperative Associations Law.188which gives the
parameters on which they must be governed indicating that cooperatives
They must be voluntary associations of people and not of capital, with full
legal personality, for an indefinite duration and with limited liability, in
the ways in which individuals organize democratically in order to meet their
needs and promote their economic and social improvement as a means
to overcome their human condition and individual formation, and in which the
the reason for work and production, for distribution and consumption, is the
service and not profit.

The similarities in the regulation of cooperatives of

housing between Costa Rica and El Salvador, there are many in terms of their creation,

management and functioning, both also depend on the General Law of

Cooperatives, since they do not have any special law for their operation, with
the exception that the same Cooperative law of Costa Rica, in its Art.
22 Inc. 2 establishes that the National Institute of Housing and Urbanism
should advise housing cooperatives regarding their function and
credit applications. That is, the law already pre-determines assistance to the
cooperatives, for their better functional development.

188
Cooperative Associations Law of Costa Rica. No. 4179 of August 22, 1968, Law
No. 6756.

142
 CHAPTER FIVE

5. INSTITUTIONAL ANALYSIS OF COOPERATIVES

HOUSING, THE SOCIAL FUND FOR HOUSING, THE
NATIONAL FUND FOR POPULAR HOUSING AND OF THE
SALVADORAN FOUNDATION FOR DEVELOPMENT AND HOUSING
MINIMAL.

SUMMARY: 5.1 State Institutions responsible for ensuring the right of access to a
dignified housing
Requirements to access housing. 5.1.2 Social Fund for Popular Housing. 5.1.2.1
Legal Competence. 5.1.2.2 Requirements to access a housing. 5.2 The Role of the
non-governmental organizations in the enjoyment of the right to adequate housing. 5.2.1
Salvadoran Foundation for Development and Minimum Housing.

This chapter shows how it was born and how it functions today.
the only housing cooperative for mutual aid that exists in the country,
the role of those institutions responsible for is also developed
guarantee the right to access dignified housing, such as the Fund
Social for Housing, where its legal competence is made known, such as
is formed and what role it plays to ensure the right of
access to dignified housing, the Social Fund for Popular Housing is
another institution where people can access housing and it is through
the one that is also developed in this chapter.

We also have those non-governmental institutions through

from which people in need can come to access a
decent housing the best known In El Salvador, it is the Foundation.
Salvadoran Development and Minimum Housing, FUNDASAL, which has

143
various programs focused on people who need to improve their
living condition.

5.1 State Institutions Responsible for Guaranteeing the Right of

Access to a Decent Home.
Access to decent housing is an inalienable human right.
recognized in our Constitution. Physical accessibility, the inclusion of
basic services such as drinking water, gas, and electricity, respect
for the cultural traditions and thesecuritymust be part of the right to
housing. Beyond these postulates, the truth is that the majority of the
Statesthey do not guarantee the right to housing for all their citizens. The
precarious housing is very common in both large cities and
in the most remote villages, while thousands of people even
they are found in a homeless situation and live outdoors189.

From the above, it follows that the right to adequate housing is

a constitutional right protected and guaranteed by our constitution,
Thus, in order to protect this right, the state created certain institutions.
of a public nature with the aim of providing protection to this right, for
what will be addressed in this chapter is the institutions responsible for oversight
for the protection of the right to adequate housing in El Salvador.

As we mentioned in the previous chapter, the home is the place

from the refuge that people need to protect themselves, to safeguard from the
inclemencies of the weather, preserve their intimacy, and in most of the
cases, represents the settlement place not only of individual people

189
"Concepts about Housing Cooperatives." Available at:Invalid input, please provide text for translation.
Consulted on February 4, 2012.

144
we are family units, basic structures of the social body. It is a
basic human need, such as food, shelter, or rest.

5.1.1 The Social Housing Fund.

The first institution responsible for ensuring access to housing.
dignity to the inhabitants of El Salvador is the Social Housing Fund190,
it is an autonomous credit institution191, of Public Law, with
legal personality, It was born as a social security program in which
Participants are the State, the Employers, and the Workers.

The resources of the FSV192are constituted by:

a) An initial subsidy from the State of two million eight hundred
fifty-seven thousand one hundred forty-two 86/100 dollars ($2,857,142.86) and
another of three million seven hundred seventy-eight thousand two hundred and
five 71/100 dollars ($3,778,285.72) received in 1995.
b) Employer and worker contributions received from their
foundation until April 30, 1998, which are registered in
Individual accounts in favor of the latter.
c) Other income obtained in any capacity.
The Social Housing Fund has among its resources
deposits in favor of workers; These deposits are constituted by the
quotes received from the foundation of the Fund until April 30
1998, date on which they were suspended due to the entry into force of the new

190
Created by Legislative Decree No. 238 on May 17, 1973.
191
An autonomous institution is one that enjoys administrative independence and is
subject to the law in government matters. Its directors are accountable for their management. That is,
that autonomous institutions have originated from the central administration, from which
they are independent in administrative and financial matters, but such independence pursues the
the sole purpose of achieving greater efficiency and specialization in public service or
specific activities whose provision is necessary for the fulfillment of the goals of the
State, and it is for such reasons that the State exerts permanent control over them.
192
From now on, when the abbreviations FSV appear, it will be understood that it is
referring to the Social Housing Fund of El Salvador.

145
Pension Savings System. These are returned in the following
cases: a) To the workers who remain in the Public System
Pensions, upon the occurrence of the reason for refund; due to disability, retirement or
death, their contributions and interests will be returned to them or, in the
last case, to its beneficiaries193.

The mission of the Social Housing Fund is to finance quickly and

efficient housing solutions under credit conditions
favorable and sustainable satisfying the social needs of workers
and other population groups, to help raise the standard of living of
our clients, and reduce the housing deficit194While their vision is
to be a leader in financing housing solutions, offering
innovative options that meet customer needs;

193
Article related to the Beneficiary profile. Available at:Invalid input. Please provide text for translation.
Consulted on February 6, 2012.
194
It is the set of unmet housing needs of the population.
existing at a specific time and territory, is expressed numerically by
the approximate calculation of: a) absolute deficit or housing shortage, that is, the difference
between the total number of families and the total number of housing units; b) relative deficit conditions
inadequate habitability, that is, requirements to eliminate overcrowding in
houses with insufficient space, and requirements for total replacement of houses
deteriorated according to the physical state of the materials that constitute them. The sum
the mentioned requirements and/or deficiencies constitute the existing housing deficit
and is usually calculated based on the corresponding census information. This deficit can
to be estimated in the future, in relation to specific census moments, considering the
needs generated by the trend demographic growth and the normal process of
deterioration of existing housing. The housing deficit can be measured in a way
specified based on various parameters such as: number of families per housing unit,
average number of inhabitants per room, deterioration of materials, construction deficiencies and
service shortages, among others. It is necessary to emphasize that the housing deficit is not a
a simple mismatch in the housing market, or a consequence of technical differences,
organizational or design aspects in housing production; its explanation should refer to
Structurally, other deficiencies such as those related to employment and income affect
in its causal determination, preventing a large part of the population from being able to pay for it
high costs of housing and its components: land, materials of
construction, workforce, design, safety, comfort, financing and respective
interests and technology. Vid.The provided text is a URL, not translatable content.consulted 6
February 2012.

146
committed to its social function and maintaining a positioning
sustainable finance.

Among the values that this institution upholds are: a) Attitude

Positive: since in everything that this institution promotes it becomes evident
your willingness to face new challenges oriented towards transformation
institutional; b) Quality: their work reflects high levels of efficiency in the
satisfaction of the needs and expectations of its customers; c) Integrity:
since it fulfills its functions with responsibility, transparency, and ethics
such a way that allows them to demonstrate and account for the work they
commitment: since it acts with empathy towards its clients,
identifying and making the institutional mission and vision their own.

Among the activities carried out by the FSV, there is the

housing financing, benefiting more than one million
Salvadorans, offering seven lines of credit under the best conditions.
favorable conditions of the financial system. They offer loans for:New Housing
Used HousingExtraordinary AssetsPurchase of lot,Construction
Remodeling, Expansion and ImprovementsDebt transfer from another institution
Financial to the FSV.Likewise, this institution carries out the refund of
contributions of workers who contributed to the FSV until 1998.

Among the institutional bodies responsible for overseeing

this institution includes the Assembly of Governors, which is the
highest authority of the FSV and is made up of: minister of Public Works
as President, Minister of Labor and Social Security, Minister of
Treasury, Minister of Economy, as well as by two Governors
representatives of the Employers' Sector and two Governors of the Labor Sector.

147
 After the Assembly of Governors is the Board
Directive195and among its functions are: To comply with and enforce the Law and
Regulations of the FSV, as well as the agreements or resolutions of the Assembly
from Governors; Approve or reject credit applications, prior to the
corresponding studies presented by the Executive Director, resolve
about the operations of the Fund that are not under the jurisdiction of the highest authority

Institutional body; timely present to the Assembly of

Governors the annual report, the financial and accounting statements, the
budgets of income and expenses, the work and investment plans of the
Fund; among other functions.

And lastly, there is the Surveillance Council.196, to which it

fulfill the following responsibilities: oversee the proper administration of
assets of the Fund and especially the income, expenses, and investments;
review the execution of plans, programs, studies and
investigations; inform the President of the Assembly of Governors the
irregularities that I will ascertain and propose to the governing bodies, in their
case, the measures deemed appropriate; among other functions197.

The Social Housing Fund participated in 2011 in the

launch of the "CASALCO Housing Fair 2011", as part of

195
Which is made up of five members: one appointed by the President of the Republic
and four Directors appointed by the Assembly of Governors: One representative Director
from the Employers' Sector; one Director representative of the Labor Sector and two Directors
public sector representatives. For each Principal Director, there is a Substitute Director.
named by the holder. The Director appointed by the President of the Republic is the
President of the Board of Directors of the Fund and Executive Director of the Institution.
196
He/She is responsible for overseeing the correct application of the Law and Basic Regulation.
of the FSV, as well as the agreements or resolutions of the Assembly of Governors and of the
Board of Directors. The Council is made up of four members: one elected by the Sector
Patronal, another for the Labor Sector, two for the executive power (one in the field of Works
Public and another in the field of Labor and Social Welfare.
197
Article related to the Activities of the Oversight Council. Available at:
http://www.fsv.gob.sv. Consulted on February 7, 2012.

148
support for the effort made by the construction sector, through
the Salvadoran Chamber of the Construction Industry.

During the housing fair, information was provided about the different
credit lines, the special programs provided by the Fund, such as
the Nearby Housing Plan for Salvadorans abroad, the Program
Contribution and Credit for workers in the variable income sector, between
others. With participation in the fair, the Social Fund strengthens relationships
with the builders with the aim of contributing to the dynamization of
sector and job creation198.

5.1.1.1 Legal Competence.

Its legal competence is framed within the Social Fund Law For the
Housing and its Regulations. Article 1 of the Law states: "Housing is established as the

Social Housing Fund as a security development program

social.

While Article 3199the same law determines the objective of

this institution and establishes: "The Fund will aim to contribute to the
solution to the housing problem of workers, providing them with
the appropriate means for the acquisition of comfortable, hygienic housing
and safe." Likewise, in its article 4 it states: "The provisions of
This law applies to all employers and workers regardless of the type.
of the employment relationship that links them and the way in which it has been established

remuneration. Nevertheless, it will be through the regulations that one

will determine the time and manner in which the different types of workers
they will be incorporated into this social security program. The field of

198
Article related to the Contribution and Credit Program for workers due to the
Institution. Available at:http://www.fsv.gob.sv.Consulted on February 8, 2012.
199
Law of the Social Housing Fund. D.L 328 of May 17, 1973, D.O No. 104,
Volume 239 dated June 6, 1973.

149
the application may be expanded in due time in favor of the workers who do not
dependent on an employer.

On its part, the Basic Regulation of the Law of the Social Fund for the
Housing200it establishes in its article 2 that: "The Fund has the purpose
contributing to the solution of the housing problem of workers,
providing them with the appropriate means for housing acquisition
comfortable, hygienic, and safe.....

5.1.1.2 Requirements to Access a Housing.

The requirements that individuals must meet in order to obtain
a mortgage loan for housing in the FSV, these vary according to the type of housing
what people want is that the requirements that must be met in
in case a loan is requested for a new home, it is found:

Be an active employee with a minimum of 6 months of contributions to the system.

Pension Savings or variable income sector workers
with a minimum of 6 months of verifiable income; 2) Over 18 years old
(Up to 69 years); 3) Subject to debt insurance; 4) Payment capacity
to respond to the obligation to hire. 5) Good credit record in the
Financial System; 6) Solvent with the Ministry of Finance (For
selling price or credit greater than or equal to $30,000.00.

In order to obtain a loan for a used home201the requirements that

They would have to meet the following requirements: 1) Be an active employee with 6

200
Basic Regulation of the Law of the Social Housing Fund, D.E No. 15 dated 8
February 1977, published in D.O No. 15, Volume 254 dated February 11, 1977.
201
Among the advantages of this type of credit are: Up to 97% of the selling price
according to the requested amount. Lowest premiums and fees in the market. No appraisal fees
(until the third appraisal is completed), processing fees or administration fees. The most
low costs for notarial fees $37.32 Cost of mortgage registration fee
covered by the FSV, up to an amount of $50,000.00 Financing of the expenses of
writing and registration. The most convenient debt and damage insurance plans.

150
minimum months of contributions to the Pension Savings System or
workers in the variable income sector with a minimum of 6 months of
verifiable income; 2) At least 18 years old up to 69 years; 3) Subject to insurance

of debt; 4) Payment capacity to fulfill the obligation to contract;

5) Good credit record in the Financial System; 6) Solvent with the
Ministry of Finance, for the sale price or credit greater than or equal to
$30,000.00

The requirements for purchasing a lot202son: 1) Be an active employee with

6 months minimum of contributions to the Pension Savings System or
workers in the variable income sector with a minimum of 6 months of
verifiable income; 2) Over 18 years old (Up to 69 years); 3) Subject to
debt insurance; 4) Payment capacity to respond to the obligation to
hire; 5) Good credit record in the Financial System.

The requirements203what must be met to apply for a credit for

remodeling, expansion, and improvements in the FSV, are the same that have been
state mentioned for the different previous services, only
they present some small variations that correspond to the type of
employment and salary of the applicant.

202
The advantages of this type of credit are: Term up to 25 years, depending on the sector.
Financing for the installation of basic services. Financing of up to 100%
the expenses of notarization and registration. The most convenient insurance plans and the fees
lower. Costs of mortgage registration rights covered by the FSV. Premiums and
lowest market rates. No appraisal fee (up to the third appraisal), commissions for
procedure, nor administration fee. The lowest costs for notary fees $37.32
Cost of mortgage registration rights covered by the FSV.
203
The requirements vary depending on whether they are public employees, private employees, merchants and
real estate agents, who must meet some additional requirements.

151
 5.1.2 National Fund for Popular Housing204
During the 1980s, the country's economy was characterized by
due to a severe economic depression, resulting from an unfavorable environment for
international level and particularly of the internal conflict that was escalating,
causing a sharp decrease in productive activity, deepening
of the situation of poverty, migration of large contingents of the population
towards the capital, as a consequence of the civil war that was taking place, this
provokes illegal land seizures, to improvise housing and with this, the
proliferation of marginalized communities around railways, riverbanks
of rivers, etc.

As a result of the prevailing difficult situation, the current government implements

a series of measures aimed at alleviating the social crisis, which are

contained within the Stabilization and Structural Adjustment Program,
adopted in the late eighties. The program was focused on: the
eradication of extreme poverty, which is a long-term goal
term, which must necessarily go through solving problems, such as the
housing scarcity that is structural in nature and with a trend
growing. As a strategy of this program, it is given a character
relevant to activities related to development and improvement of
social infrastructure. At the beginning of the nineties, a new one is incorporated.
strategy to social policy, this stage has as a frame of reference the
signing of the peace agreements, thus initiating a process of democratization
of the country, which has enormous significance, given that it establishes a
possibility of finding a solution to the prevailing economic and social crisis205.

204
Better known as FONAVIPO.
205
AGUILAR TEJADA, Nancy Yanira and RIVAS SANCHEZ, Juan Carlos; "Design of a Plan
Promotional for Encouraging the Acquisition of Housing Financed by the Program of
Credits from the National Fund for Popular Housing (FONAVIPO). Thesis to obtain the degree of

152
 As part of the measures adopted, the National Fund was created.
Popular Housing FONAVIPO, as a result of the pressure from the three
institutions that are part of the public housing sector, which are: The Institute
of Urban Housing IVU, the National Housing Finance FNV and the
National Popular Housing Program PRONAVIPO.

The National Fund for Popular Housing, as a Public Institution

Credit of an autonomous nature, with legal personality, assets
own and indefinite duration. Its Creation Law206was approved on the 28th of
May 1992 coming into effect from June 17 of the same year;
according to Decree No. 258 published in Official Journal No. 99 Volume 315 of the 8th

June 1992207.

In El Salvador, a large part of the population lives in conditions

deplorable housing, in addition to having a 'housing deficit of
544.1 thousand units, an unemployment rate of 6.5%, and a per capita income
monthly of ¢1,402.3208It is a challenge for the entity to try to contribute to
improvement of the difficult situation faced by families of
scarce resources, as most of them do not know where to go or with
who to contact for information about the credit program and
its different lines of destination, largely due to the institution
lacks a promotional program that allows it to inform and incentivize the

Graduates in Business Administration, University of El Salvador. May 2003.

pp.1 and 3.
206
On May 28, 1992, FONAVIPO was created; starting operations on June 17 of the same year.
same year, with which it became increasingly acute, registering a deficit that year
housing of five hundred ninety-five thousand housing units, when only
they were producing approximately 17 thousand units per year.
207
Law of the Social Fund for Popular Housing, D. L N° 258, dated May 28
1992, published in the Official Gazette No. 99 Volume 315.
208
Ministry of Economy, General Directorate of Statistics and Censuses. Survey of
Multipurpose Homes, 2000.

153
effectively to the target population, so that they can access a
decent housing.

Almost half of Salvadoran households live in homes that

They urgently need to be improved. Others live sharing the housing.
with another family, all due to their low income. Towards those groups of
families are oriented towards work, since their main concern is to facilitate
access to resources that allow them to solve their problem of
housing; through an appropriate combination of credit - contribution and the
own effort contributed by the families themselves.

Credit programs are lines of credit that reach

families through intermediary institutions, called
Authorized Institutions AI's. Since its inception, the Program has attended to families
with income of up to two minimum wages. However, in September of the
In 2001, with the entry into force of the reforms to the Law, the scope was expanded

coverage for the population earning up to 4 minimum wages209.

The Credit Lines offered by the institution to low-income families

Economic income is: Credit Contribution, Popular Housing, Projects
Social Interest Housing and Bridge Line, of these lines of credit
the first two they have the following destinations for families:
Home Improvement, Lot Acquisition, House Construction
Acquisition of land and construction of housing, Acquisition of housing
existing.

209
This reform was by Legislative Decree No. 528 of August 30, 2001. Published
in the Official Journal No. 177 Volume 352 of September 20, 2001.

154
 While the contribution subsidy program for the
housing, whose purpose is to provide to the beneficiary family group,
without charge of restitution, a contribution in money or in kind, which together
with the contribution of the family or a complementary loan, it can be allocated
to obtaining a housing solution. To benefit from this
Families must verify legal ownership of the land
where they will invest the contribution, they must also check that their income
relatives earn equal to or less than two minimum wages. However, to
Starting from September 2001, reforms have been incorporated into the Law.
establishing that the institution may grant a second contribution to
families in case of being affected by a natural disaster, calamity
public, state of emergency, qualified by the Executive Branch or
Legislative, in case of fortuitous events or force majeure by the Board of Directors.

After the earthquakes of the year 2001, the institution takes on a role
protagonist in the National Reconstruction Plan, managing resources
national financiers and others from the International Community
who promptly provided the necessary assistance in the face of disasters
suffered which were destined to attend to the demand for the
affected families.

To finance the Contribution Program, resources are available.

owned and others that come from governmental entities such as the Vice
Ministry of Housing and Urban Development VMVDU, Funds from
the privatization of the National Telecommunications Administration
FANTEL and Technical Secretariat of External Financing SETEFE.210.

The vision of the institution is to be leader and innovator in the

financing of housing solutions, which supports the effort of the

210
Labor Report 2002. FONAVIPO, pp. 6, 7 and 9.

155
low-income families, contributing to a sustained reduction in the
housing deficit in El Salvador. And its institutional mission is 'To generate
financial opportunities for low-income families, so that
improve their housing conditions.

The governing bodies of this entity are: The Board of Directors211how

superior body, then there is the Executive Direction, from which
the Deputy Directorate of Finance and Administration, the Deputy Directorate of
operations and the deputy directorate of contributions and projects.

5.1.2.1 Legal Competence.

Regarding legal competence, we must
to utilize the Law of the National Fund for Popular Housing, it is thus
which establishes in its article 2 that: "The Fund aims to
fundamental to facilitate low-income Salvadoran families, the
access to credit that allows them to solve their housing problem and
search for the most favorable conditions for housing financing
of social interest. For the purposes of this Law, families will be understood as
lower incomes those whose monthly income is equal to or less than
amount of four minimum wages of commerce and industry.

While in your article 3 it is stated that: "To achieve its purpose, the
The fund will have the following powers: a) Promote programs of
investment and financing for the acquisition of homes, lots for
housing, construction, reconstruction or improvement of solution
housing; b) Manage the Housing Contributions program that
established by this Law; c) Provide financing to the
authorized institutions for short, medium, and long-term acquisition

211
Its aim is to oversee the institutional advancements and transformations for the
effective functioning of the National Fund for Popular Housing (FONAVIPO).

156
of housing, lots for housing, improvement of housing solutions, or
construction of social interest housing projects; d) Accept and
manage trusts, as a trustee, when the State or third parties
natural or legal, national or foreign, constitute them to be
channeled exclusively to social interest housing programs or
of urban development; Trusts that may also be established by
the Fund, to serve the same purpose; e) Manage bonds or other
securities issued by the State, which are delivered to channel
funds for programs of social interest housing212;…..”

The main source of resources for financing lines of

Credit will be provided by the General Fund of the institution. There may be
other sources of resources, for credit financing, the conditions of
the use of those resources will be set by the credit manual and the
organizations or financial institutions. The amount of the credit lines
will be determined by the availability of FONAVIPO. The lines of
credit will remain valid until the Board of Directors modifies them or
delete213.

5.1.2.2 Requirements to Access a Housing.

The requirements for obtaining housing in this institution
To be prequalified in the FSV, to form a family group, income
relatives who do not exceed 4 minimum wages, not having been previously

212
The right of social interest is understood as the set of legal practices and strategies
judicial actions aimed at using thelawas a mechanism ofsocial transformation.
This emancipatory use of the law has as its ultimate goals the defense of the collective interest,
the promotion of thehuman rightsand the social. When talking about the right of interest
publicly it does not refer to a canon or a specific set of rules in a certain
matter (likecriminal lawoadministrative lawIn a broad sense, everything
law, as a product oflegislator(the representative of thegeneral willis
oriented topublic interest.However, the notion of public interest law comes from
of a different conception about the functions that the law can fulfill in the
society.
213
Credit Manual of FSV, January 2003, pp. 29 and 30.

157
benefited with a Housing Contribution from the institution, between
others214.

The direct granting of credits to families is under the

responsibility of AI215each of which sets its own
credit policies216, that is to say that the amounts of the credits, terms, rates
of interest, etc., vary according to each of the institutions
authorized.

It should be noted that to obtain credits from FONAVIPO, it is necessary to

follow a process which is described below: the development of it,

since it is promoted with the Authorized Institutions, evaluation of
client risk, approval of the proposal, preparation and signing of
contract, prior and post disbursement supervision, and follow-up
of risk of the Authorized Institutions, which are responsible for
to deliver the credits to the families, it is necessary to have the
collaboration of a series of intermediaries, which act as a link
between the institution and the families involved.

The requirements that must be met to be evaluated as

Authorized institutions of the FONAVIPO credit program are: to be
a legally constituted entity in the Republic of El Salvador and subject to

214
Article related to the Requirements to access a Housing, available at:
http://www.fonavipo.gob.sv.Consulted on February 11, 2012.
215
IA'S: It means Authorized Institutions and refers to those intermediary institutions.
authorized to channel financial resources, in order to grant housing loans to
the end users who want to solve their housing issues.
216
Set of criteria, guidelines and directives used by monetary authorities
to determine the destination of the financial resources directed to the different agents
economic in the form of credits, inducing the development of areas or economic sectors
prioritized and strategic, through the use of instruments and mechanisms such as the rate of
interest, rediscount access rate, legal reserve, and some others of a regulatory nature.
About the citation,The provided text is a URL and does not contain translatable content.Consulted on February 11, 2012.

158
to the relevant control bodies; To have financial statements, and the
opinion of an external auditing firm; Experience of the institution in
credit management; Positive return on equity (ROE);
Maintain a global portfolio greater than US $ 50,000; Obtain a rating
of operability according to the evaluation methodology of FONAVIPO.

5.2 The Role of Non-Governmental Organizations

in the Enjoyment of the Right to a Dignified Housing.

Non-governmental organizations play a role

important in the promotion and application of the right to adequate housing,
since they can develop a wide range of initiatives aimed at
promote the realization of the right to decent housing. In order to
to make known the vulnerable and less advantaged groups of society
your projects and purposes.

Some non-governmental organizations are recognized as

consultative entities by the United Nations, for which they have certain
participation rights in the system. Individuals, local groups
and other non-governmental organizations that do not belong to entities
United Nations consultative bodies, they can turn to them to report on
his concerns to the Committee on Economic, Social and Cultural Rights
Cultural and other bodies that deal with issues related to
the right to housing.

Such is the case of FUNDASAL, which has the financial support of the SCC.217,

they have carried out a series of projects called 'Strengthening of

217
Understand this acronym as Swedish Cooperative Center.

159
"Housing Cooperatives for Mutual Aid" with which they have provided support to
people with limited resources to have decent housing.

The number of people and families currently housed in homes

inadequate and without basic services such as: water, sewage
waste, sanitary facilities, electricity, etc. Please include the number
of people housed in overcrowded, damp housing, and
structurally unsafe or in other circumstances that affect health and
the life of its inhabitants218.

These institutions aim to promote the person and the family in a comprehensive way.
and the community, among the most underserved sectors of the population
generating alternative development projects that can benefit
the largest possible number of families with the minimal and rational use of resources

achieving the participation of more sectors that are actively, responsibly, and
aware, develop projects that benefit both locally and
national level.

Another important contribution that this institution makes is to promote

the bill that allows the development of housing projects with
social function before the Legislative Assembly as well as coordinated work with
different municipal governments aimed at housing solutions.

5.2.1 Salvadoran Foundation for Development and Minimum Housing

FUNDAMENTAL.

The Salvadoran Foundation for Development and Minimum Housing is a

non-profit, non-governmental institution, whose working model
part of the fact that it is possible, through different programs,
218
UNDP report, presented on March 8, 2011.

160
significantly contribute to the eradication of some manifestations
directly from poverty. That is why it operates and works for the population.
excluded from El Salvador, providing them solutions to their habitat problems
and addressing other basic needs219.

FUNDASAL is the first NGO that has developed the program of

housing through mutual aid and personal effort, identifying and outlining the
paths to follow to provide answers to the difficult
conditions in which thousands of Salvadoran families live. Their commitment
it is with the people who live in precarious conditions in this country and more
that everything is focused on the CHSS. It is worth adding that the efforts and the work

carried out by this important institution has earned it recognition

international, thanks to a set of successful initiatives aimed at improving
the quality of life providing a tangible impact on improvement of
quality of life of people, it is under these criteria that it manages to be
selected for the Dubai International Award 2010220.

The center of activity is the person, the family, and the community.
forming a critical consciousness, providing social tools
for your organization, participating and politically influencing the processes
of its own development; but also impacting with serious proposals for
to support the policies and ensure that they align with expectations and needs
of the people. On the other hand, enhancing their skills and constructive abilities
to improve and transform their vulnerable environments into spaces with
conditions suitable for social and community development. This entity

219
Available at: http://www.fundasal.com. Consulted on January 15, 2012.
220
The Dubai International Award for Best Practices was established under the
Address by Sheikh Maktoum Bin Rashid Al Maktoum during the International Conference
from the United Nations, from November 19 to 22, 1995, with 914 participants from 95
countries, to acknowledge the best practices with a positive impact to improve the environment
alive.

161
rebuilds, together with the beneficiaries, degraded neighborhoods by creating spaces
more livable; builds with the effort of families settlements of
new housing in urban and rural areas; manages and makes services accessible
basics. The above says a lot about the institutionalized work model:
manages and enables comprehensive programs for habitat care and
training to ensure their sustainability.

In summary, FUNDASAL returns citizenship to people,

drives social care programs aimed at different sectors of the
population: childhood, youth, men and women. Train and involve them
inhabitants in the different types of projects, who as always are
the main actors.

This institution has the mission of promoting human development.

sustainable through the strengthening of the social production of habitat
the vulnerable and excluded population; enhancing their leading participation
and organized, the formation of critical awareness, gender equity,
political incidence and risk management. It also has the vision of being
an innovative, supportive, proactive, sustainable and committed institution
with human development and the transformation associated with politics, that

contribute to overcoming the vulnerability and exclusion of popular sectors

of society.

This institution is composed as follows: the Assembly

General Associate. She appoints the Board of Directors, which is made up of
9 members - 7 owners and 2 substitutes - and has the function of approving and
to guide institutional policies and manage the institution based on
the decisions of the General Assembly. Direct administration is
competence of the Executive Director and Deputy Executive Director, who put

162
in practice and execute the directives of the Board of Directors. It has
currently with the following operational instances:
Department of Construction, Department of Social Promotion,
Administrative Department and the Financial Department; 6 units
advisors and support: Unit of Planning and Studies -UPE-, Unit of
Institutional Projection and Communication, Legal Unit, Unit of
Internal Audit, IT Unit and Economic Projects Unit -
UPRODE-. The departments integrate several specific sections of
Work. The total number of employees amounts to a total of 141.

These are some of the values that FUNDASAL adheres to:

Solidarity:
Ability to feel affected by the reality of the sectors
excluded, that moves and drives to action. Ability to share,
to cooperate and commit to social causes and actions,
policies, economic and cultural of the excluded sectors of the
society, who are interested in improving their habitat and their situation
residential.
Honesty:
Professionalism in fulfilling commitments; clear relationship and
transparent with the population and with cooperation organizations.
Acting based on the defined values with a commitment to
apply them, project them, and continuously improve them.
Democracy:
Promotion and strengthening of citizen participation, not only
formal (such as free choice of authorities or alterability in power),
but also to foster the real opening of spaces that allow for taking
shared decision-making.

163
 Equity:
Promotion and management of relationships and fair, inclusive treatment. It involves

equality of access to resources and opportunities.

Respect:
Attitude of recognizing rights, duties, capacities and
potentialities of individuals, organizations, and communities;
establish relationships of trust and support; value the processes
specific to the population, recognize gender and cultural diversity,
respect the differences and take them into account in the planning and
execution of actions.

Apart from all the actions and initiatives taken by FUNDASAL,

currently works in conjunction with the National Commission of Settlers,
CONAPO, developing actions for the Draft Law of
Social Interest Housing, ALVIS, be approved by the Legislative Assembly
and in this way contribute to improving the quality of life of many people who
they do not have the opportunity to access housing through
public or private sector.

164
 CHAPTER SIX.

6. SYNTHESIS OF THE RESEARCH CONDUCTED.

6.1. Interviews.
ANALYSIS AND INTERPRETATION OF THE RESULTS OF THE
FIELD RESEARCH.

Following the completion of the bibliographic research and the

the corresponding regulatory framework presents the field research, in
the aim is to expose both the reality of housing cooperatives and
like the work that state and social entities do for the effective
enjoyment of the right to adequate housing.

This is how the opinions of university professors are observed,

people who live under the cooperative regime, people who work in
social organizations and people working in state institutions
that provide access to housing. Those who shared their viewpoints on
the phenomenon that is investigated within the reality of each one, in relation
to the research topic, which is "Right to access adequate housing."
"Solutions through housing cooperatives in El Salvador"

The results obtained in the will be presented next.

interviews presented in a narrative format.

165
 SURVEY RESULTS FOR THE COOPERATIVE.

Surveys, as it is well known, are a quantitative technical method.

intended for the collection of data from a specific population, in the case
From the present thesis, the president of the Association was interviewed.
Mutual Aid Housing Cooperative of the Historic Center of San
Salvador, ACOVICHSS DE R.L.

The interview was conducted directly with Mrs. María Adriana Gonzales, who
he currently holds the position of president of the cooperative in addition to being

founding associate of this. In consideration of the aforementioned

the results presented below are as follows:

1. Who initiated the initiative to organize as a cooperative?

It arose directly from the Salvadoran Foundation for Development and

Minimum Housing, who were conducting a rescue study
historical and this is how they approach us, providing talks where they
They expose the virtues and benefits of the housing cooperative system.
through training, orientations and where we were identified from
how through this we could improve our living conditions, already
that we were all tenants of inns that did not meet the conditions
minimum standards of health or comfort.

Analysis of result: from what has been presented above, it is concluded that
In the country, there are non-governmental organizations committed to
to provide guidance in order to improve the quality of life of people who
they do not meet the minimum conditions for enjoying a dignified home,
we also conclude that due to the economic conditions being experienced
In the country, people join cooperatives in search of greater

166
benefits and overcoming associated with the economy and, above all, for enjoyment

effective right to live in dignified housing.

2. From whom did you receive guidance to organize and establish yourselves?
as a cooperative?

Directly from the Salvadoran Institute of Promotion

Cooperative, INSAFOCOOP, after the efforts made by
FUNDAMENTAL.

Analysis of results: it can be asserted that INSAFOCOOP, as

institution responsible for promoting cooperativism in El Salvador, fulfilled
with its role in facilitating the organization of this cooperative providing the
orientation and advice necessary for that purpose.

3. What sector of the population are the members of this cooperative from?

The vast majority of us are from the informal sector, who are dedicated to
the informal small-scale selling, of seventeen families who inhabit this
In the building, only three are employees with minimum wage, the rest of us manage to defend ourselves.

the day-to-day with what we manage to sell.

Analysis of results: they are people with fewer resources.

economic ones who organized themselves in a cooperative, seeking a single
longing and common good, to live in better conditions, to live with dignity, and
They used this system because they did not feel supported by any other sector.

4. Had you sought help in the public or private sector for

obtain a home?

No, knowing the requirements that both sectors demand,

We were aware that we were not applying for their loans and that is the reason.
that we never seek help.

167
 Analysis of results: the economic conditions of people
those engaged in the informal sector are largely limiting for these
they can access both private and state credits
forcing them to feel marginalized from the benefits that such institutions
they provide.

5. Do you consider the creation of the housing cooperative beneficial?

Definitely yes, as it has changed our way of life,

being of better quality, comfort, and safety.

Analysis of results: The benefits of which currently

these people stand out, not only appreciating the way they look
today they live not only in how they express it, as they have moved from sheets,

cardboard, plastics rough terrain, lacking adequate basic services

a comfortable and secure apartment building where they have the
basic services which provide them with a better quality of life.

6. Do you consider that you live in adequate housing?

Undoubtedly, for today we have a safe environment, we have

play area, park for children, each department has its own
basic services that we do not have to share with others, our own
Children grow and develop in a healthy and comfortable environment.

Analysis of the result: after years living in tables that do not

the minimum suitable conditions were gathered at present
you can assure that these people live in a dignified and safe environment.

7. From which sector did they receive more assistance to live under the given conditions?

are currently found?

A) Public or state

168
 B) Private

C)ONG’S

I can assure you that on behalf of FUNDASAL, it was them who

they made this project possible by serving as a link with countries
cooperating, from the state the help was limited to guidance and
accreditation granted by INSAFOCOOP.

Analysis of result: this cooperative is born, consolidates, and functions.

thanks to the efforts made by an organization with a social function,
highlighting the little participation of the State and especially the nonexistent
collaboration of the private sector.

8. Is the cost of housing affordable for you?

housing cooperative?

Yes, not only what we have to pay for the cost of housing, which
it is a fee of $25.00 monthly for 15 years, but also the fee
of the contribution that all members make for general maintenance
and the payment of common expenses, which is $6.00, are costs that everyone
we are able to cover.

Analysis of result: taking as a parameter the fees that

establish private banking and state institutions, the value that
these people living under the housing cooperative regime are canceled
it is accessible for them considering that they do not have an income
high economic.

9. Do you adhere to cooperative principles?

Yes, in fact with the creation of this housing cooperative,

FUNDASAL in coordination with INSAFOCOOP, created the statutes of

169
a housing cooperative for mutual aid, which did not exist and is due to the
creation of this housing cooperative for which these statutes are established.

Analysis of results: there can be no cooperative without being governed by

the cooperative principles which are universal, in this case
meets the requirement.

10. Do you recommend the housing cooperative system?

I do recommend it, as everyone who lives in this building below

the cooperative housing regime has changed our lifestyle
life for the better and in an accessible way according to our income.

Analysis of results: having as a parameter and direct testimony

of a person who enjoys the housing cooperative system, we can
to ensure that this cooperative system has given them the opportunity for a
effective enjoyment of access to decent housing.

170
 RESULTS OF THE SURVEY OF TEACHERS
DEPARTMENT OF PUBLIC LAW OF THE FACULTY OF
JURISPRUDENCE AND SOCIAL SCIENCES OF THE UNIVERSITY OF EL
Savior.

Surveys conducted with teachers from the Department of Law

Audience of the Faculty of Law and Social Sciences of the
The University of El Salvador had two, and these teachers were selected.
taking into account your extensive knowledge in the field of cooperativism
and social rights.

1. According to your knowledge, do you believe that cooperatives of

housing constitutes a possible solution to the housing problem
worthy?

Yes, well, by combining what is established in Article 114 with Article 119 of
our Constitution of the Republic, its mere application and taking into account
based on the development of housing cooperatives in other countries of
America, the issue of decent housing would be resolved, if not in its
totality but it would greatly reduce the lack of this that suffers greatly
Part of the population would also be a way to achieve development.
supportive.

Analysis of results: in both cases it is argued that the

housing cooperatives are more than one possible solution to the
the issue of dignified housing is viewed in the same way as a form of
achieve a supportive development that the country so desperately needs and that would solve

beyond the housing problem, that is to say, crime, underdevelopment,

poverty, among others.

171
2. In your opinion, is the State complying with what is stated in the article?
119 of the Constitution of the Republic on the right of citizens to
to have access to decent housing? Why?

In my opinion, no, and one good reason is the political system.

from the country, which prioritizes profit over social matters, there is no legislation

social, and I believe this is a significant factor for its non-compliance.

Analysis of the result: the answer is more than clear, unfortunately.

in our country, economic profit prevails over social considerations
as a result, more poverty and discrimination against the most disadvantaged people

scarce economic resources, in the sense that they are denied the opportunity
of progress.

3. Do you consider that citizens in El Salvador are guaranteed the

right to adequate housing?

In my opinion, it is not guaranteed, and a decent housing even less.

on the side, massive housing constructions are being authorized without taking
considering the minimum conditions of comfort and intimacy, without further
space conditioning, social housing is not taken into account.

Analysis of the result: the perception is obvious, the reality is that the
the same dominant economic system is the one that sets the rules of
market, both in construction and access to housing, importing little
or nothing if this is worthy and accessible to the entire population.

4. What do you think is the reason that in our country the majority of
do families not have access to adequate housing?

From my perspective, it is a political question, this due to the type of

liberal and neoliberal economy, making it impossible to reach the strata

172
lower social classes, therefore it has not been fulfilled, consistent policy in itself.
there aren't any more due to lack of interest, the government programs and plans are
very shy. The lack of housing policy designed by the State is
a compelling reason for this deficiency.

Analysis of result: a true change in political mindset,

humanizing laws that pursue the common good and benefit the
collectivity would largely solve not only the problem in this country
housing, alongside many other social problems that afflict the country.

5. In your opinion, what are the deficiencies, if any, that it has?

legislation regarding cooperatives?

One cannot speak of deficiency because there is no legislation, so

One should take comparative law as an example and export that.
that can adapt and thus make a legislative proposal.

Analysis of result: the same dominant market policy and

the state's disinterest causes this legislative deficiency regarding
social. An effective housing policy would largely cover the
existing deficiency and if it is necessary to export from comparative law,
It must be done as the experts in the field maintain.

6. Do you consider that in our country we have the legislation

necessary about housing cooperatives?

No, it does not exist, because in this country there is no social legislation, and it

related to housing cooperatives is not focused on profit but rather more

Well, the common good fits in the social, which in the country does not exist, barely and it

mention, more than anything because we have an individualistic law and to that
can attribute the lack of social law in the country.

173
 Result analysis: we can conclude that, just as we have
sustained since the beginning of this work, the lack of legislation in the area
cooperative is the weighting factor for the null or little development of the
housing cooperatives.

Do you believe that the Salvadoran population is adequately

informed about the existence and functioning of cooperatives of
housing?

We don't have it; at most, INSAFOCOOP is responsible for providing guidance.

how to create a cooperative but adequate information does not exist, being
so this institution does not comply with article 114 of the
Constitution, this is due to the lack of sufficient legal support.
to do it, it does not promote those that already exist, and of the cooperatives
of housing is less because there is not even a law.

Result analysis: we conclude on the poor role played by

part of the government institutions in the matter, in this case only
it is limited to the role of being a guide.

8. In your opinion, through the promotion and state support of cooperatives

Could the issue of decent housing in El Salvador be solved?

Yes, there should be a policy for promoting and supporting cooperatives.

Housing would be a good solution as I mentioned.
previously, now if it exists, it must be ensured that it does not
abandon these policies.

Result analysis: we can conclude that they are being created

strategies to find a solution to the housing problem that greatly afflicts
the population what is noticeable is that there is already interest from the
institutions to ensure that families live in a dignified condition.

174
9. Do you believe that the country actually promotes access to a
decent housing or at least to a housing unit?

The truth is that the work being done cannot be undervalued.

unfortunately this falls short of the demand that exists and above all
due to the required conditions, which makes it impossible for a certain sector of the
population accesses a housing unit, much more difficult of course to a
dignified housing.

Analysis of results: the high demand that exists from the population for
having housing and the little interest from the state to create policies
that facilitates access to suitable housing makes ineffective the
strategies implemented by these institutions.

10. Do you believe that the State should commit more to the
the problem of decent housing in El Salvador and implement the mechanisms
What is necessary to solve it? What would those mechanisms be?

Of course, but I repeat that it requires a

social legislation, and the mechanisms would be: change the government policy,
create a specific law for this purpose and promote such law.

Result analysis: in our opinion, the Salvadoran state is

in the obligation to be the guarantor of the housing problem since it is
in charge of creating programs, laws, and making effective what is stipulated in the
constitution as supreme law.

175
RESULTS OF THE SURVEY TO THE SOCIAL FUND FOR THE
HOUSING, FSV.

An interview is conducted with Licentiate José Gregorio Acevedo, who works

as supervisor of the Social Projection Department of the Social Fund
for Housing.

1. As the Social Housing Fund, FSV, do you know the system of

housing cooperative? No, as an institution no.

Analysis of result: how we can appreciate an institution

governmental that is created with the purpose of solving the problem and
The country's housing deficiency is unaware of a system that could be.
a tool to aid the effective enjoyment of access to decent housing.

2. As the Social Housing Fund, FSV, do you have any programs?

access to decent housing?

Yes, a program for the sale of assets has been created by the executive.
extraordinary measures for vulnerable sectors, this is aimed at the sectors
poor and without housing, likewise their economic income must
to be less than two minimum wages, this program is focused on both the
formal as well as informal sector.

Result analysis: while it is true that this program sounds attractive

the truth is that it is far from achieving access to decent housing, this
due to the fact that they are already recovered houses in high-grade areas of

insecurity and crime, which is why these houses were

abandoned therefore access to housing cannot be guaranteed
worthy but rather a simple housing unit.

176
3. Do you have any program or system for cross-referencing information with
FONAVIPO to meet the great housing demand that exists in the
country?

Well, each of the institutions has defined and limited its

functions, we work under a triangular system, Vice Ministry of
Urban Housing provides monetary funds for construction of
housing, FONAVIPO evaluates the land and builds the houses and we
as FSV we take care of providing financing for the
acquisition of a home.

Result analysis: we can conclude that there is no system.

the crossing of information between these institutions to achieve coverage of the

housing demand that exists in the country according to our

The respondent is not that function among them.

4. How can you guarantee the population the acquisition of a home?

Currently, we have a state program that is focused

it is called 'House for everyone' it consists of giving a monetary bonus to
people who already have a home, prior to a related study-
economic, this program is managed by the vice ministry of housing and
the FSV is just a link, it only provides the monetary bonus and the people who
they receive it without paying any value, this money is for them to use in
improvements to your home.

Result analysis: It can be said that the system used by the

The Social Housing Fund is not available for all sectors as of
according to your requirements to access this type of housing is
specifically only those who have the necessary conditions to
to be able to access housing type.

177
5. What is the reason that they do not have agreements for aid or cooperation with

housing cooperatives?

We don't have them because in the FSV all procedures are personal, due to
Hello, we have no agreements or commercial dealings with housing cooperatives.

Result analysis: how can we see the functions for which

this governmental institution was created is limited, and is another example of
a lack of support for housing cooperatives, to the legal gaps that
there is little government interest in supporting them.

178
RESULTS OF THE SURVEY TO THE NATIONAL FUND FOR THE
POPULAR HOUSING, FONAVIPO.

An interview is conducted with Licentiate Jackelin Ramírez, information advisor of

FONAVIPO.

1. As the National Fund for Popular Housing, FONAVIPO,

Do you know the housing cooperative system?

No, while it is true that we work with cooperatives in general but of

we do not know them specifically.

Analysis of results: how we can see in this institution

governmental body that was created with the purpose of solving the problem and

The housing deficiency in the country also presents the same situation.
lack of knowledge about a system that could be a helpful tool
the effective enjoyment of access to decent housing would have support and
necessary promotion.

2. How the National Fund for Popular Housing, FONAVIPO, accounts

with some program for access to decent housing?

We work in coordination with the FSV providing them with credits both to the
formal and informal sectors, under the program House for Everyone, as well as
also the contributions program, which is categorized by the
institution as a program of social benefit.

Result analysis: It can be observed that the alliance of these

institutions allow certain sectors to access but the limitations always
they exist since it is not always possible to access these homes as they must
comply with the requirements that these institutions regulate.

179
3. Do you have any program or system for cross-referencing information with the
FSV to meet the high housing demand that exists in the country?

Yes, as I mentioned earlier, one of the programs that

we work together is the program House for Everyone.

Result analysis: we can see that in both institutions

governmental bodies do not handle the same information, leaving evidence
the lack of coordination between them.

4. How can you guarantee the population access to housing?

FONAVIPO verifies access to decent housing in its
construction, improvement, and with the contributions program.

Result analysis: we can assert that such verification is not

enough to guarantee the population a decent home in itself, since in
this system verifies the details of the construction itself, not its
environment, quality, comfort, and safety.

5. What is the reason that they do not have agreements for aid or cooperation with

housing cooperatives?

As FONAVIPO, we work exclusively with cooperatives

affiliated with the fedecréditos system, if any housing cooperative
find an affiliate then we would work with her.

Result analysis: The lack of support from the government to these

institutions are what does not allow the affiliation of more cooperatives and that is

limited assistance for people for decent housing, would only work
if there was more support at the national level and through the legal system.

180
RESULTS OF THE SURVEY TO THE SALVADORAN FOUNDATION
OF DEVELOPMENT AND MINIMUM HOUSING, FUNDASAL.

Interview with Licenciado Julio Caledonio, Promotion Department

Social of FUNDASAL.

1. Are you familiar with the legal instruments that support the right to a
decent housing?

No, but proposals have been made about it based on the

constitution of the republic, particularly in article 103 thereof,
since it is the legal instrument that sets the guidelines for creating
appropriate laws so that people can uphold the right to have
a suitable home and not only that but it also has to be dignified.

Result analysis: we can say that we agree with the

said by Lic. Caledonio, for as we have maintained throughout the
the development of this thesis, the lack of legislation on this matter is the agent
limiting factor for the little development of housing cooperatives, in our
country.

Do you believe that the compliance with such instruments is effective?

legal? No, since there is no specific law that regulates the
housing cooperatives in themselves, although the creation of the
this remains only printed on paper, in our country there is none either
a commission that is responsible for materializing this type of proposal thus
as there is also no real housing policy.

Result analysis: we conclude, based on the response given by the

interviewee, that the lack of relevant legislation and little state interest has
caused the housing cooperatives not to have the support and backing
necessary for it to be developed and implemented effectively,

181
revealing the existing legal vacuum and above all the lack of interest
governmental

3. From your point of view, does the State create real policies with the purpose of
provide the necessary tools to access decent housing?

No, small unfocused projects are simply carried out and to

the massification of housing units, when the State should
create programs that help families with limited economic resources
from my point of view one of the ways would be by promoting the
housing cooperatives.

Analysis of results: a policy change by the State would be

of great benefit to the less privileged and most needy families,
seeking and pursuing the common good would not only solve the housing problem
existing in the country, it would also help to reduce other social problems
derivatives of the exclusion suffered by these families.

4. According to your knowledge and experience, do you believe that the

Housing cooperatives are a possible solution to the housing problem.
existing in the country?

Yes, because based on the experience gained from the creation of a

From her, the quality of life of the has significantly changed.
people who came together and partnered to opt for this system of
housing, currently having a new way of life, enjoying
comfort, hygiene, safety and at a cost accessible to their possibilities
financial.

Analysis of results: as a pioneering and precursor institution of the

housing cooperatives in the country have been able to prove the effectiveness of

182
These cooperatives and the way they change the lifestyle of the
people who join this cooperative system.

5. How many housing cooperatives have been promoted and organized in the country?
the date?

According to our records, there are four that have been established.

legally, we are also organizing others that are still

they are at the integration stage where INSAFOCOOP is the
advisor in charge of guiding people interested in this type of
cooperatives.

Analysis of results: as an institution with a social vision and function

they are focused on seeking and ensuring the well-being of the people who it
they need, that is why they join efforts for this purpose with the support
of the institution that by law is responsible for being the guarantor and overseer of the
cooperatives in the country.

6. According to your experience, do you believe that there is a coordination?

state to seek the effective enjoyment of a decent home?

No, because there is no real linkage both organizational and

driving force on the part of the State towards effective enjoyment of access to a

decent housing, its entities are focused on mass construction of

housing, as those are their policies.

Result analysis: the field experience has allowed verification

firsthand the reality that exists in the country regarding the policies of
housing promoted by the central government through institutions
in charge, thus demonstrating the ineffectiveness of their policies.

183
7. According to your opinion, is the State providing the necessary support?
to fulfill its duty to ensure the well-being of the population,
looking for access to housing?

No, only small activities are carried out and mostly with
political fines. Now that we have realized the Salvadoran reality, and
about how many people live in conditions that are not suitable for a
integral physical and mental development for them and it is there from where they come
many problems that afflict Salvadoran society.

Analysis of results: as we have developed throughout this

research, the State does not create policies or programs of social interest,
as a result of its system of government and types of applicable policies and
current in the country, the creation of a social policy would help to
solve this problem.

184
 CHAPTER SEVEN.

7. CONCLUSIONS AND RECOMMENDATIONS.

7.1 Conclusions.
1. Due to the existing legal vacuum, the private company focuses its
profit activities, excluding those people who do not
meet the requirements they have established, so that they can access
a home, seeing it this way without the opportunity to live in
a dignified and safer way less.
2. The state entities created with the purpose of providing a
housing for people with limited economic resources in the country,
they fall short in their effort, not only due to the lack of housing
for this purpose, but also in the requirements they demand to be able to apply
for a home, in the end they are just entities that provide a
housing unit with values lower than those offered by banks
private, but with requirements that the majority cannot meet
needy.
3. How it has been studied Throughout the research, the
cooperatives have emerged after a long struggle of people who
they sought the common good, and at a certain time they had to
fight to survive, for this they organized with the aim of
achieving that end, thus is how cooperatives arise, among
these are the housing cooperatives, which have been spreading
and developing in several countries until reaching El Salvador.
4. In our country, housing cooperatives do not have a
legal framework necessary for it to be developed and implemented
by hindering in this way an option for access to a decent housing

185
 for those people who cannot apply for a credit
housing both in the private banking and in the state sector.
5. The lack of government support for housing cooperatives,
as well as its lack of promotion and dissemination by the institution
person in charge of this, prevents people from being unaware of it
cooperative system that could well be a solution to their
housing problems.
6. It can be said that, based on the experience of other countries with
housing cooperatives, our country is one of many.
countries what no promote this system cooperative
wasting a good possible tool in that way
solution to housing deficit.
The efforts made by FUNDASAL need support and interest.
real of the central government, as they are a good way to help the
what more do they need from a home, the experience lived by the
people who formed a housing cooperative is the
better reference of its effectiveness for the enjoyment of a home
worthy. Therefore, one of the main challenges will be its dissemination and
collaboration towards all those with low resources
economically disadvantaged individuals who do not have adequate housing.

8. Housing cooperatives are established as a means of

solution to the housing deficit in the country, its promotion and
organizations are necessary for this purpose, the creation of laws
are vitally important for this.
9. The only housing cooperative that is truly established and
It works as such, it is the best reference of how effective they are
Housing Cooperatives.
The efforts and collaboration of cooperating countries are fundamental.
for the operation of housing cooperatives, this due to
186
 the little state support and private companies of our own
country.
11. The Constitution of the Republic obliges the State to endeavor to ensure that the
more families are homeowners,
the State should seek and support any mechanism that
I helped him achieve that goal.
12. According to the research carried out and through knowledge
from the history of the different stages presented, it can be deduced,
that the role of housing cooperatives has become vital
importance gradually, ensuring the effective
enjoyment of a decent housing in the countries where they have effective
application and development.
13. Housing cooperatives are a way to access a
dignified housing, where help and collaboration are needed both
from the State, NGOs, and the population itself so that they become a reality.

14. In conclusion, housing cooperatives are a good option.

to address the lack of housing, one way to access a home
worthy, the common good of all is sought, the environments are cared for, the

environment and the type of construction that is most suitable.

187
 7.2 Recommendations.
1. Within Salvadoran legislation, there is no instrument
legal that guarantees the inhabitants access to housing
it is therefore recommended to the Government a system of
politics with a social function aimed at the large majorities of the country and

with greater emphasis on the low-income population and

upholding equity and improving the structure at the level
social access to what the Constitution of the Republic mandates,
a dignified housing.
2. Due to the existing legal void, the private company focuses its
activities for profit, excluding those people who do not
they meet the requirements In light of the serious difficulties for
develop the cooperative housing system, we recommend, to the
the government of El Salvador will offer to those people who have difficulty
access to the private banking system and other governmental entities
your total support for the system and its promotion and dissemination in order to be able to do

the reality of decent housing for the most disadvantaged population.

3. It is recommended that the government draft a law that promotes the
functioning of the housing cooperatives, since in the
Currently, there is no law that regulates this matter and that is why
that find themselves in need of relying on the General Law of
Cooperatives where only what leads to the lack is mentioned.
from coverage of a large sector of the population to access to living
dignified.
4. Cooperativism in El Salvador will have better viability in the
measure that adheres to the universal trend of diversifying its
economic spaces, integrate, modernize and constitute a
true cooperative system, within a Democratic State of

188
 Law and a Social Market Economy, that confer to it the
institutionality, the legislation and the set of relations
economic that guarantees everything else.
5. Having economic and government support, as well as
advocate for a constitutionally broader regulation
talking about more aspects regarding housing cooperatives
and the right to access decent housing for citizens
it would largely solve the housing deficiency.
6. Due to the legal vacuum in El Salvador regarding cooperatives of
housing, it is recommended to make use of comparative law for a
better understanding and development of them, with the aim of
enable its existence.
7. The Legislative Assembly is recommended to take as a basis
fundamental the reference of comparative law and that it can be
applied in the country, for the implementation and creation of a
appropriate legislation for the development and creation of the
housing cooperatives.
8. It is of interest that government promotion policies can
to address the proper constitutional compliance, at the level
to analyze the effectiveness of existing measures and programs of
housing adopted by the government as a qualifying criterion for the
effectiveness of the same.
9. Based on a deep study of the reality of our legislation.
about the subject and thereby fulfilling that characteristic
and the requirement of the analysis of the national becomes necessary the

proliferation of laws and international instruments related to

our research topic.
10. The government must promote a true social policy
focused on the common good taking into account the participation of the

189
 B) Private

C)ONG’S

I can assure you that on behalf of FUNDASAL, it was them who

they made this project possible by serving as a link with countries
cooperating, from the state the help was limited to guidance and
accreditation granted by INSAFOCOOP.

Analysis of result: this cooperative is born, consolidates, and functions.

thanks to the efforts made by an organization with a social function,
highlighting the little participation of the State and especially the nonexistent
collaboration of the private sector.

8. Is the cost of housing affordable for you?

housing cooperative?

Yes, not only what we have to pay for the cost of housing, which
it is a fee of $25.00 monthly for 15 years, but also the fee
of the contribution that all members make for general maintenance
and the payment of common expenses, which is $6.00, are costs that everyone
we are able to cover.

Analysis of result: taking as a parameter the fees that

establish private banking and state institutions, the value that
these people living under the housing cooperative regime are canceled
it is accessible for them considering that they do not have an income
high economic.

9. Do you adhere to cooperative principles?

Yes, in fact with the creation of this housing cooperative,

FUNDASAL in coordination with INSAFOCOOP, created the statutes of

169
 BIBLIOGRAPHY.

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CHAVEZ NUÑEZ, FERNANDO; "Cooperative Legislation in America."
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DRIMER, BERNARDO and DRIMER, ALICIA KAPLAN; "The Cooperatives:

Fundamentals, History, Doctrine. Cooperative Editions 1975.

GÓMEZ APARICIO, PILAR. "The Housing Cooperative Societies."

Special Reference to the Basque Country. Ed. School of Studies
Cooperatives. Complutense University of Madrid. Madrid, Spain, 1994.

HERNANDEZ ROMERO, PEDRO JUAN. "The Current Situation of

Cooperativism in El Salvador. San Salvador, 1991.

HERNANDEZ ROMERO, PEDRO JUAN; "The Current Situation of

Cooperativism in El Salvador. Salvadoran Editorial Editions 1980.

HUMBERTO MUÑOZ, CARLOS BURR PETRI. “Introduction to

Cooperativism. Volume 1. Del Pacifico Publishing, 1995.

MEJIA CHURCH, SALVADOR. "El Salvador: Summary of a Century of

Cooperativism (1900-2000).

IGLESIAS MEJIA, SALVADOR. "El Salvador: Summary of a Century of

Cooperativism. UES, 2004.

LEJARRIAGA PÉREZ DE LAS VACAS, GUSTAVO. "The Society

Cooperative from the Perspective of the Cooperative Alliance
International and Labor Limited Companies Facing the Concept
Legal of Cooperative. Ed. REVESCO, No. 61, 1995.

191
DAVID M. MERENER, "The Cooperativism of Entre Ríos and its Pioneers:"
The Argentine Congresses of Cooperation. Intercoop Publisher
Cooperative, 1972.

MORALES HERRERA, OSCAR. The Process Historical del

Cooperativism in El Salvador, An Ideological Approach.
IV FUCAP Conference; San Salvador. 1978.

MORALES HERRERA OSCAR. The Process historical del

"Cooperativism". In his work The Cooperative Movement of the 19th Century.

BONILLA, MONS. ANTULIO; 'Cooperativism Theory and

Practice. League of Cooperatives of Puerto Rico; Editorial Nosotros, 1985.

BONILLA GRILL, MONS. ANTULIO "Cooperativism: Theory and

Practice. University Editorial Printed in Spain. 1987.

PISARELLO,GERARDO,“Housing For All: A Right in (of)

Construction, the Right to Adequate and Dignified Housing As
Enforceable Law. Illustrated Editions, 1979.

RANGEL COUTO, HUGO. "The Cooperative Movement and the Problems

Current. Ed. From the Institute of Economic Research of the
National University of Mexico. Montreal, 1945

RAWLS, JOHN. "Justice as Fairness. A Reformulation."

Editions by Erin Kelly-Paidos State and Society Spain 1980.

ROMERO MERCADO, JAVIER ENRIQUE and SANTOS NIETO, CLAUDIA;

Social Housing, Dignified and Healthy. Editions of the
University of the North.

192
URIBE GARZON, CARLOS; 'Bases of Cooperativism'. Editions
Coocentros 1978.

VALERO, LUÍSY OTHERS. "Cooperatives in Central America, History and

Legal Framework. IV Conference University Central America José Simeón
Cañas. Federations of Universities of Central America and Panama.
FUPAC Editions. 1st Edition March 1979. Conquer the industry
Commercial.

VELASQUEZ DE LA PARRA, MANUEL; "Manual of Law

Constitutional. Spanish Editions; Spain in 1980.

THESIS:
AGUILAR TEJADA, NANCY YANIRA and RIVAS SANCHEZ, JUAN CARLOS.
Design of a Promotional Plan to Encourage Acquisition
Housing Financed by the National Fund Credit Program
of Popular Housing (FONAVIPO)”. Graduation Thesis, Faculty of
Economics, University of El Salvador. May 2003.

ALFARO NOGUERA, GUILLERMO. "Cooperatives: Associated Aspects -

Economic. Graduation Thesis. Faculty of Law and Social Sciences
Social Sciences, University of El Salvador, June 1998.

ANAYA ORELLANA, JORGE ALBERTO AND OTHERS. "Effects of the

financial and cooperative legislation in the development of cooperatives
of savings and credits." Graduation Thesis. Faculty of Economics,
University of El Salvador, May 1996.

DELGADO AYALA, ANA LIDIA AND OTHERS. "Diagnosis of Profitability

of the Financial Products of the Social Fund for Popular Housing

193
(FONAVIPO) of El Salvador and Proposal for Alternatives of New
Products. Graduation Thesis. Faculty of Economics, University of El
Salvador, 2004.

FLORES ZELADA, WILSON FRANCISCO AND OTHERS; "Associated Effects-

Legal Aspects of the Application of Legislative Decrees no. '747' and
"719" in Three Cooperatives of Agrarian Reform of the
Central Zone in El Salvador During the Period Comprised: 1997-
2004. Graduation Thesis. Faculty of Law and Social Sciences,
University of El Salvador.

HENRIQUEZ, SILVIA ELENA. "Perspectives on Cooperativism in the

Framework of Financial Liberalization of the Current Economic Policy.
Graduation Thesis. Faculty of Economics, University of El Salvador,
1994.

SÁNCHEZ, JOSÉ HUMBERTO. "Societies and Associations

Cooperatives. Doctoral Thesis. Faculty of Law and Sciences
Social Sciences of the University of El Salvador, University of El Salvador, 1997.

RUBIO REYES, MARTA EVELYN. "Commentary on the General Law of

Cooperative Associations. Graduation Thesis. Faculty of
Jurisprudence and Social Sciences Dr. Y Pbro. Francisco Menéndez, of the
University "Dr. José Matías Delgado", 1987.

LAWS AND DECREES.

Constitution of the Republic of El Salvador. D.C. No. 38, of 15 of
December 1983, published in D.O. No. 234, volume 281. Published on the 16th
of December 1983.

194
Law of the National Fund for Popular Housing. D.L. No. 258, dated
May 28, 1992. Published in the Official Gazette No. 99 Volume 315.

Law of the Social Housing Fund. D.L. 328 of May 17, 19736,
D.O. No. 104, Volume 239 dated June 6, 1973.

General Law on Cooperative Associations of El Salvador. Legislative Decree No. 339

from May 6, 1986. Published in the Official Gazette No. 86.

Basic Regulations of the Social Housing Fund Law. D.E. No.

15 dated February 8, 1977. Published in D.O. No. 15, Volume 254 of
date February 11, 1977.

Regulation of the General Law on Cooperative Associations of El

Salvador. D.E. No. 62 dated August 20, 1986. D.O. No. 7.

JURISPRUDENCE:
Unconstitutionality ruling number 4-88/1-96. Chamber of
Constitutional, Supreme Court of Justice, San Salvador, El Salvador.

Forcible Eviction Judgment number 414-2007. Court of

Constitutional, Supreme Court of Justice, San Salvador, El Salvador.

AGREEMENTS AND TREATIES:

Committee of Latin America and the Caribbean for the Defense of Rights
Woman, CLADEM El Salvador. 'Diagnosis of women's DESC with emphasis'
on the right to adequate housing in El Salvador" Ed. CLADEM, San
Salvador, El Salvador, September 2007.

195
International Convention on the Elimination of All Forms of
Racial Discrimination.

Convention on the Elimination of All Forms of Discrimination

against women.

Universal Declaration of Human Rights of the UN.

Universal Declaration of Human Rights.

International Covenant on Economic, Social and Cultural Rights

UN.

ESSAYS AND MAGAZINES:

INTERNATIONAL COOPERATIVE ALLIANCE. "Diagnosis of the Sector

Social Economy in El Salvador / International Cooperative Alliance
from the Americas. 1st ed. San José, Costa Rica, 2007.

ALLIANCE COOPERATIVE INTERNATIONAL. The Principles

Cooperatives: New Formulations of the Cooperative Alliance
International. Volume 1 of Pocket Collection (National Center of
Cooperative Education). Doctrine Series Volume 3 of Universitas (AECOOP-
Aragón) AECOOP-Aragón Editions, 1977.

ECO-CRI. "What Are We Talking About When We Talk About Social Economy and

Solidarity? Concepts and Related Notions. Ed. Eco Cric Congress,

Bilbao, Spain, 2008.

196
CONFRAS ACENEC, Cooperative Education Collection, "Brief History of
Cooperativism. San Salvador, El Salvador, March 1993.

Cooperatives, Mutual Aid. Published by the Department of

Education of the American Institute for the Development of the Free Union,
IADSL, 1971. 1925 K.St. NW. Washington, DC. 2006.

SANTA CRUZ, ALBERTO. "History of Cooperativism in El Salvador".

Library of the Faculty of Law and Social Sciences, University
from El Salvador, 1993.

INTERNATIONAL LABOUR OFFICE. "Cooperatives; Manual of

Worker's Education. First edition, Geneva 1956.
Publication International Cooperative Alliance, "The State of the
Cooperatives in El Salvador. San José, Costa Rica, Nov. 1993.

University of Zulia Research Institute (Luz) Maracaibo, Venezuela

Social Economy and Cooperativism. Ed. Journal of Sciences
Social, Volume XII, No.2 Maracaibo, Venezuela, 2006.
BARRERA CEREZAL, JUAN JOSÉ. "The Social Economy and Public
Policies. Ed. Journal of Public, Social and Cooperative Economy No. 62
CIRIEC. Spain.

LÓPEZ CARRASCO, CARLOS EDUARDO AND OCHOA HENRÍQUEZ,

HAYDÉE. "Subnational Policies for the Promotion of the Social Economy in
Venezuela. Ed. Journal of Social Sciences (RCS). University of Zulia.
Maracaibo. Ed. Astro Data. Volume VIII, No. 3. September-December.
Venezuela, 2002.

197
 Analysis of results: the economic conditions of people
those engaged in the informal sector are largely limiting for these
they can access both private and state credits
forcing them to feel marginalized from the benefits that such institutions
they provide.

5. Do you consider the creation of the housing cooperative beneficial?

Definitely yes, as it has changed our way of life,

being of better quality, comfort, and safety.

Analysis of results: The benefits of which currently

these people stand out, not only appreciating the way they look
today they live not only in how they express it, as they have moved from sheets,

cardboard, plastics rough terrain, lacking adequate basic services

a comfortable and secure apartment building where they have the
basic services which provide them with a better quality of life.

6. Do you consider that you live in adequate housing?

Undoubtedly, for today we have a safe environment, we have

play area, park for children, each department has its own
basic services that we do not have to share with others, our own
Children grow and develop in a healthy and comfortable environment.

Analysis of the result: after years living in tables that do not

the minimum suitable conditions were gathered at present
you can assure that these people live in a dignified and safe environment.

7. From which sector did they receive more assistance to live under the given conditions?

are currently found?

A) Public or state

168
ANNEXES

199
UNIVERSITY OF EL SALVADOR DATE
FACULTY OF LAW Y SCIENCES SOCIAL
GRADUATION SEMINAR IN LEGAL SCIENCES 2010

INTERVIEW WITH A UNIVERSITY PROFESSOR FROM THE DEPARTMENT OF

PUBLIC LAW OF THE FACULTY OF JURISPRUDENCE AND
SOCIAL SCIENCES OF THE UNIVERSITY OF EL SALVADOR.

Information for data collection and guidance of the present

research.

INTRODUCTION: Dear respondent, we are conducting a study of

academic character related to the right to access housing
dignified solutions through housing cooperatives. You have been
selected to provide us with information regarding this,
we kindly request your valuable cooperation in order to guide us and
complete our graduation thesis. It will not take more than 10 minutes. From
Thank you in advance for your valuable cooperation!

Licensed Juan Carlos Castellon Murcia

POSITION HELD WITHIN THE UNIVERSITY OF EL

SAVIOR: TEACHER OF THE DEPARTMENT OF PUBLIC LAW
FROM THE FACULTY OF JURISPRUDENCE AND SOCIAL SCIENCES.

QUESTIONS:

1. According to your knowledge, do you believe that cooperatives of

housing constitutes a possible solution to the problem of
decent housing?

200
2. In your opinion, is the State complying with what is established in the article.
Article 119 of the Constitution of the Republic on the right of the
citizens to have access to decent housing? Why?

3. Do you believe that citizens in El Salvador are guaranteed the

right to adequate housing?

4. What do you think is the reason that in our country the majority
of families do not have a decent housing?

5. In your opinion, what are the deficiencies, if any, that the

legislation regarding cooperatives?

6. Do you think that in our country we have the legislation

necessary about housing cooperatives?

7. Do you think the Salvadoran population is properly...

informed about the existence and functioning of cooperatives of
housing?

8. In your opinion, through the promotion and state support for cooperatives
the housing problem of decent housing could be solved in the
Salvador?

9. Do you believe that the country actually promotes access to a

decent housing or at least a housing unit?

10. Do you think that the State should commit more to the
the problem of decent housing in El Salvador and implement the
201
 What mechanisms are necessary to solve it? What would those be?
mechanisms?

University of El Salvador DATE

FACULTY OF LAW Y SCIENCES SOCIAL
GRADUATION SEMINAR IN LEGAL SCIENCES 2010

INTERVIEW WITH A PROFESSOR FROM THE DEPARTMENT OF

PUBLIC LAW OF THE FACULTY OF JURISPRUDENCE AND
SOCIAL SCIENCES OF THE UNIVERSITY OF EL SALVADOR.

Information for data collection and guidance for this

research.

INTRODUCTION: Dear respondent, we are conducting a study of

academic character related to the right to access housing
worthy, solutions through housing cooperatives. You have been
selected to provide us with information regarding this, so that you
we kindly request your valuable collaboration in order to guide us and
complete our graduation thesis. It will not take more than 10 minutes. From
Thank you in advance for your valuable collaboration!

DOCTOR JOSE MAURICIO RODRIGUEZ FLORES

POSITION HELD WITHIN THE UNIVERSITY OF EL

SALVADOR: TEACHER OF THE DEPARTMENT OF PUBLIC LAW
FROM THE FACULTY OF LAW AND SOCIAL SCIENCES.

QUESTIONS:

202
1. According to your knowledge, do you believe that cooperatives ...
housing constitutes a possible solution to the problem of
decent housing?
2. In your opinion, is the State complying with what is stipulated in the article?
119 of the Constitution of the Republic on the right of the
citizens to have access to decent housing? Why?
3. Do you consider that citizens in El Salvador are guaranteed the
right to adequate housing?

4. What do you think is the reason that in our country the majority
do families not have a decent home?

5. In your opinion, what are the deficiencies, if any, that it has?

legislation regarding cooperatives?

6. Do you believe that in our country we have the legislation

necessary about housing cooperatives?

7. Do you believe that the Salvadoran population is properly

informed about the existence and operation of cooperatives of
housing?

8. In your opinion, through the promotion and state support for cooperatives
housing could solve the problem of decent housing in the
salvador?

9. Do you believe that the country actually promotes access to a

decent housing or at least a housing unit?

203
10. Do you think that the State should commit more to the
problem of decent housing in El Salvador and implement the
What mechanisms are needed to solve it? What would those be?
mechanisms?

204
UNIVERSITY OF EL SALVADOR DATE
FACULTY OF LAW AND SOCIAL SCIENCES SEMINAR
GRADUATION IN LEGAL SCIENCES 2010

INTERVIEW WITH A RESIDENT AND PRESIDENT OF THE

COOPERATIVE HOUSING ASSOCIATION FOR MUTUAL AID OF
HISTORICAL CENTER OF SAN SALVADOR, ACOVICHSS DE R.L.

Information for data collection and guidance for this

research.

INTRODUCTION: dear respondent, we are conducting a study of

academic character related to the right to access housing
worthy, solutions through housing cooperatives. You have been
selected to provide us with information regarding this, so we
we request your valuable collaboration in order to guide us and
complete our graduation thesis. It will not take more than 10 minutes. From
Thank you in advance for your valuable collaboration!

Mrs. María Adriana Gonzales

CARGO WHAT PERFORM INSIDE DE The ASSOCIATION

COOPERATIVE: PRESIDENT OF THE COOPERATIVE ASSOCIATION OF
HOUSING BY MUTUAL AID OF THE HISTORICAL CENTER OF SAN
SALVADOR, ACOVICHSS DE R.L.

QUESTIONS:

1.Who initiated the idea to organize as a cooperative?

2.On behalf of whom did they receive guidance to organize themselves and
to constitute as a cooperative?

205
3.What sector of the population are the members of this cooperative from?

4.Had you sought help in the public or private sector for

obtain a home?

5.Do you consider the creation of the housing cooperative beneficial?

6.Do you consider that you live in dignified housing?

7.From which sector did they receive more help to live under the conditions?
what are they currently?

D) Public or State
E) Private
F) NGOs

8.Is the cost of housing affordable for your pockets through the
housing cooperative?

9.Do you abide by cooperative principles?

10.Do you recommend the housing cooperative system?

206
UNIVERSITY OF EL SALVADOR DATE
FACULTY OF LAW Y SCIENCE SOCIAL
GRADUATION SEMINAR IN LEGAL SCIENCES 2010

INTERVIEW ADDRESSED TO THE NATIONAL HOUSING FUND

POPULAR, FONAVIPO.

Information for data collection and guidance of the present

research.

INTRODUCTION: Dear respondent, we are conducting a study of

academic character related to the right to access housing
worthy, solutions through housing cooperatives. You have been
selected to provide us with information in this regard, so that he
we kindly request your valuable collaboration in order to guide us and
complete our graduation thesis. It will not take more than 10 minutes.
in advance thank you for your valuable collaboration!

Graduate Jackelin Ramirez

POSITION HELD WITHIN THE NATIONAL FUND FOR THE

POPULAR HOUSING: INFORMATION ADVISOR.

QUESTIONS:

1. As a government institution, do you have programs aimed at

work with housing cooperatives?

2. Which sector of the population are the access programs aimed at?
of housing that you manage?

3. What flexibilities do they offer to people in the informal sector?

207
4. Do they work in coordination and reciprocity with the Salvadoran Fund?
for Housing, FSV for access to and enjoyment of a decent home
for the Salvadoran population?

5. As an institution, do you have any program for people?

so that those who need housing can have it?

6. As an institution, they care that people not only

acquire a housing unit but that it be a home
worthy?

208
UNIVERSITY OF EL SALVADOR DATE
FACULTY OF LAW Y SCIENCES SOCIAL
GRADUATION SEMINAR IN LEGAL SCIENCES 2010

INTERVIEW DIRECTED TO THE SOCIAL HOUSING FUND, FSV

Information for data collection and guidance of the present

research.

INTRODUCTION: Dear respondent, we are conducting a study of

academic character related to the right to access housing
worthy, solutions through housing cooperatives. You have been
selected to provide us information on this matter, therefore you
We kindly ask for your valuable collaboration in order to guide us and
complete our graduation thesis. It will take no more than 10 minutes.
Thank you in advance for your valuable collaboration!

Licensed Jose Acevedo

ROLE PERFORMED WITHIN THE SOCIAL FUND FOR

HOUSING: SUPERVISOR OF THE PROJECTION DEPARTMENT
SOCIAL.

QUESTIONS:

1. As a government institution, do you have programs aimed at

working with housing cooperatives?

2. Which sector of the population are the access programs aimed at?
of housing that you manage?
3. What flexibilities do they offer to people in the informal sector?

209
4. Do they work in coordination and reciprocity with the National Fund for
the Popular Housing, FONAVIPO for access and enjoyment of a
dignified housing for the Salvadoran population?

5. As an institution, do you have any program for people?

Those who need a home can have it?

6. As an institution, they worry that people not only

they acquire a housing unit but it should be a home
worthy?

210