Public funds and agricultural cooperatives in Chile: A spatial analysis on social and solidarity economies

Abstract

Chilean government has implemented various programmes to promote agricultural cooperativism, although their effectiveness and territorial reach remain contested. In the context of Chile's neoliberal economy, the principles of the social and solidarity economies offer contrasting frameworks for understanding state intervention: the former emphasizes autonomy and regulatory support, whereas the latter promotes direct public involvement and territorial equity. This article examines the extent to which state support aligns with either paradigm, focusing on public funding allocated to agricultural cooperatives between 2010 and 2022. Through spatial analysis, the study finds a positive spatial autocorrelation between funding distribution and cooperative presence, with a notable decentralization from Santiago and concentration in southern regions. These results suggest that although public funds can foster regional development and cooperative expansion, the system remains heavily reliant on competitive funding. Chile's current model exhibits elements of both social and solidarity economies but aligns more closely with the latter. This reinforces the need for a more integrated and coherent policy framework that recognizes cooperatives not merely as recipients of funds but as strategic actors in territorial development.