Nick Romeo on José María Arizmendiarrieta

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In his collected writings, José María Arizmendiarrieta championed a revolutionary pragmatism. To deserve the name, idealists must take their own goals seriously enough to try to realize them. “The ideal thing is to do the good that can be done, not the good that is dreamt of,” he wrote. The value of lofty ideals lies in their capacity to inspire action: “Great ideals do not have to be precisely attainable to be useful to us.” For those who critique current systems but create nothing better to replace them, his words still offer a pointed challenge: build institutions, develop capacities, and change legislation. “No moans but action,” he urged. The noblest ideals risk becoming empty rhetoric if not married to effective and disciplined execution. “Being badly organized should not be confused with having respect for freedom.”

Despite his eloquent insistence on pragmatic action, Arizmendiarrieta also rejected a utilitarianism that values only results. How something is achieved matters. “It is not enough for the managers and bosses to perform good deeds, it is necessary that the workers participate,” he wrote. If an enlightened executive in a traditional company chose to cap their pay at six times the salary of the lowest-paid employee, this would be good. It would also resemble the decree of an enlightened monarch. Within Mondragon, members of the cooperatives have voted democratically on the ratio between the highest and lowest compensation levels. Particular cooperatives are free to have a ratio smaller than 6:1, as many do; member-owners could also vote to expand the ratio in the future. Mondragon’s institutional design depends on democracy. It can flourish only if most individuals continue to value its traditions of equality and solidarity. Rather than assuming that markets alchemize private greed into public good, Arizmendiarrieta built the cooperatives in a way that emphasized both institutional safeguards and individual moral character: “There can never be great works without people giving generously and without them sacrificing their selfish appetites,” he wrote.

Arizmendiarrieta’s defiance of easy categorization makes him a provocative challenge to many contemporary shibboleths. He created effective institutions without ignoring the importance of individual ethics; he recognized the value of capital and profit but saw both as subordinate to broader social aims; he created a business structure that competed effectively in international markets while rejecting basic assumptions of capitalist firms. Perhaps most astonishing of all, his insights were not merely theoretical achievements; they were realized in a dense web of structures that have become the largest worker-owned cooperative in the world.

– Nick Romeo, The Alternative: How to Build a Just Economy



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