History of Distributism ~ Global Distributists: 3) Early Distributist Movements ~ 3.5 Mondragon Corporation

The twelfth instalment of the series of articles from Global Distributists on the origins of Distributism and how it's been adapted and implemented around the world.

The Mondragon Corporation, a federation of worker cooperatives based in the Basque Country of Spain, represents an inspiring real-world example of distributism in action. Its history dates back to the mid-20th century and is closely tied to the vision of a Catholic priest named José María Arizmendiarrieta.

In the aftermath of the Spanish Civil War and World War II, the town of Mondragon, like many others in the region, faced high unemployment and economic hardship. Arizmendiarrieta, who arrived in Mondragon in 1941, saw the potential for a new economic model that would prioritize social solidarity, cooperation, and the well-being of workers over the pursuit of profit. Inspired by Catholic social teaching and the principles of distributism, he sought to create a more equitable and sustainable alternative to both capitalism and socialism.

Arizmendiarrieta first established a technical school in 1943 to train young people in various trades and professions. This school, now known as the Mondragon University, played a crucial role in cultivating the skills and values necessary for the cooperative movement that would soon emerge. In 1956, he supported the creation of the first cooperative in Mondragon, the ULGOR cooperative, which initially focused on the production of paraffin heaters.

This humble beginning laid the groundwork for the vast network of cooperatives that now form the Mondragon Corporation. Over the decades, the federation expanded into various industries, including manufacturing, retail, finance, and education. Today, it is the largest cooperative in the world, employing over 80,000 people and generating billions of euros in annual revenue.

The success of the Mondragon Corporation can be attributed to its adherence to distributist principles, which prioritize the well-being of workers and the local community. The cooperatives within the federation are owned and managed democratically by their worker-members, ensuring a fair distribution of profits and decision-making power. Moreover, Mondragon emphasizes the importance of social responsibility, environmental sustainability, and cooperation between cooperatives, reflecting the core values of distributism.

In summary, the Mondragon Corporation represents a powerful example of distributism in practice. Founded by José María Arizmendiarrieta in the mid-20th century, this federation of worker cooperatives has grown into a global economic force while remaining true to its roots in Catholic social teaching and distributist ideals. The Mondragon model demonstrates that it is possible to build a successful, sustainable economy that prioritizes the needs and dignity of workers and communities.