The 200-year
anniversary of Joseph Smith’s birth, commemorated in 2005, brought renewed
interest and inquiry among scholars into the theological ideas espoused by the
nineteenth-century Mormon prophet. One
intriguing comparison, however, that has received scant attention, centers on the
economic ideas of Joseph Smith, Jr. and the teachings of Jose Maria
Arizmendiarrieta, the Catholic priest who was the guiding inspiration behind
the cooperative movement in the Basque country of northern
Both men taught the
gospel of
The Prophet Joseph’s economic
ideas are institutionalized today as the extensive, international welfare
program sponsored by the church he founded.
In contrast, the ideas of Don Jose Maria, (whose surname is frequently
shortened to Arizmendi), underlie the Mondragon cooperative business group
which, though its values are derived from Catholic social thought (Herrera,
2004), has no formal affiliation with the Catholic Church.
Joseph Smith Jr.
Joseph Smith Jr. was born in
Smith was only 24
years old when he founded what is now The Church of Jesus
Based on the law of
consecration he received as a revelation soon after starting the new church
(D&C 42:31-36), Smith established the economic system called the United
Order in Kirtland, Ohio, and in Far West, Missouri, in the early 1830s. In this system members deeded their
properties to church representatives; then received all or part of those
properties back as individually-owned stewardships. At the end of a year, each person holding a
stewardship was expected to donate any surplus material goods he had gained by
working with his deeded properties back to the church. Money, property, and materials goods were
then distributed to others according to their needs under the direction of a
few designated church bishops. It was
not easy for even the most devout members to adjust to this unusual economic
system and there were many challenges in administering it.
In the 1840s, when
Joseph Smith developed another
In the decades that
followed the martyrdom of Joseph Smith, Brigham Young established numerous
cooperative businesses in the new
Though called
cooperatives, these businesses were not characterized by either worker ownership
or democratic governance, as at Mondragon. Instead, according to Arrington, “Most Mormon
‘cooperatives’ were nothing more than joint-stock corporations, organized under
the sponsorship of the church, with a broad basis of public ownership and
support” (p. 293). They were designed in
part to minimize trade with non-Mormons and the resulting loss of financial
resources to east coast investors.
During the Great
Depression of the 1930s in the
Jose Maria Arizmendiarrieta
Jose Maria Arizmendiarrieta
was born on
In 1941 he was
assigned to serve under the direction of more senior parish priests in the small
industrial town of
Don Jose Maria held
religion classes for the town’s young workers.
He also founded a soccer league.
In 1943, he established a technical school, the Escuela Politecnica
Profesional, with an initial class of twenty students. Later,
he arranged for the school’s graduates to pursue college-level engineering
degrees as extension students. Five of
the young graduates got jobs at the town’s largest manufacturing plant.
Impressed by
Arizmendi’s ideas of social justice and democracy in the workplace, the five
men left their employer in 1956 to establish their own small manufacturing
business as a cooperative. It was called
ULGOR, and was the forerunner of today’s diversified FAGOR, a major cooperative
group within the MCC.
Arizmendi lived
modestly, riding his familiar bicycle on the streets of Mondragon throughout
his adult life. He was not considered to
be an outstanding orator. Instead, his
genius and commitment to social justice emerged in the course of quiet dialogues
with the laborers of his parish. Also,
he carefully studied relevant Basque and Spanish laws in order to steer the
development of the sometimes controversial cooperatives within the parameters
of legality and governmental tolerance (Whyte & Whyte, 1991).
In poor health,
Arizmendi died on
Ideological Comparison
For this comparison, Joseph
Smith’s ideas will be taken primarily from scriptural works he published--the Doctrine and Covenants and the Book of Mormon. The source for ideas of Jose Maria Arizmendiarrieta
is the English translation of thoughts excerpted from his writings by Jose
Azurmendi, published by the Otalora as Reflections
(2000). For a more complete
discussion of the relationship between Arizmendi’s ideas and the four basic
principles of Catholic social thought—social justice, economic justice, the
dignity of persons and their work, and solidarity—see David Herrera’s excellent
article “Mondragon: A For-Profit Organization That Embodies Catholic Social
Thought” (2004).
Eternal nature of man
Joseph
Smith believed that men and women have an eternal existence that extends from a
pre-earth life, through mortality on the earth, and onward through a
never-ending, progressive and fulfilling existence beyond the grave. Smith taught that God has a body of flesh and
bones comparable to that of a man (D&C 130:1-3), existing in combination
with an exalted spirit that is incomprehensibly advanced in terms of wisdom, compassion,
and power. By living righteously and
repenting of all sins, men and women have the potential to become gods
themselves in the post-mortal existence.
In this role, an exalted person would then devote all of his or her
time, energies, and insights in assisting others to obtain the same. An inevitable corollary to this concept is
the recognition of a profound dignity in each human life.
Arizmendi
also spoke of the eternal and progressive nature of men, though with fewer
specifics. “There is something in the depths of the human spirit that is firm
and eternal. And there is also something
that needs to be moving toward a new and superior expansion in consonance with
the interior and social regeneration of human beings” (Arizmendiarrieta, 2000,
p. 35).
For
Arizmendi, recognition of the everlasting nature of man underlies the desire to
engage in the most noble of activities—helping one another. “Human beings
fulfill the role of monarchs of creation in the measure that they subdue their
own achievements to that which exists in them which is everlasting. To be fulfilled means to ask for help and
help others” (Arizmendiarrieta, 2000, p. 124).
Greatest value is in development
of individuals rather than in material success
Smith
understood the development of people--in terms of character, wisdom, learning,
and goodness—to be far more significant than material success. He taught that the overarching work and glory
of God is “to bring to pass the immortality and eternal life of man” (Moses
Arizmendi
gave a similar priority to human development: “It is definitely the human
person who is the author, center, and end of all economic and social life”
(Arizmendiarrieta, 2000, p. 24). “If we
have learned anything in life [it] is that the primary factor in everything is
the human being, as well as his or her quality and spirit” (Arizmendiarrieta,
2000, p. 26).
People
do not “aspire to economic development as an end, but as a means” (Arizmendiarrieta,
2000, p. 29), according to Don Jose Maria.
“Progress is not acquiring more, but being more, acting better, giving
more of oneself” (Arizmendiarrieta, 2000, p. 71).
Equality, Unity, Solidarity
Arizmendi
persistently encouraged his parishioners to think of themselves as equals. “We should begin by considering all humans as
citizens of equal dignity and destiny” (Arizmendiarrieta, 2000, p. 123), he
said. “A person who has dignity must
feel shame of being and living as the wealthy in a world of two billion
undernourished human beings” (Arizmendiarrieta, 2000, p. 138).
He recognized that
financial disparity separates people from one another. “The idea of ‘having
more’ bewitches us and greatly devalues our life when this idea polarizes us
around ‘having more’ and the corresponding signs of prestige”
(Arizmendiarrieta, 2000, p. 71). Arizmendi
encouraged the workers to maintain “solidarity” with one another, in part so
that they could overcome opposition from outside the cooperatives. This meant that they would minimize their
salary ratios, and also act in unity to accomplish good things for the
group.
A revelation received
by Joseph Smith in 1831 in
Smith did not
consider wealth itself to be evil. In Book of Mormon narratives, righteousness
generally brought prosperity to both individuals and communities, thus
establishing a correlation between the two conditions in the minds of
readers. The evil was the social
distance that might develop between rich people and their poorer neighbors, potentially
interfering with the unity of hearts and minds needed to do God’s work
(Bushman, 2005, p. 155). In one revelation,
it was stated this way: “For if ye are not equal in earthly things ye cannot be
equal in obtaining heavenly things” (D&C 78:6).
The ideal society,
also known as a
Fasting
Joseph
Smith believed in the biblical practice of fasting, or abstaining from food for
a period of time, as described in the book of Isaiah in the Old Testament (Isaiah 58:6-8). Combined with prayer, it was a method for
improving spirituality. Fasting and
prayer could bring insight into eternal truths, as expressed by
Smith
also understood fasting and prayer to be a means of bringing God’s power to
bear on problems: “The children of God were commanded that they should gather
themselves together oft, and join in fasting and mighty prayer in behalf of the
welfare of the souls of those who knew not God” (Alma 6:6). Also, the self-denial of fasting served an
additional purpose when combined with the practice of contributing a fast
offering to be used to help the less fortunate.
Arizmendi
appreciated the self-mastery achieved through fasting as a means of heightening
one’s freedom: “The suppression of necessities by means of self-conquest,
sacrifice and fasting is the way to true freedom” (Arizmendiarrieta, 2000, p.
51). Setting an example of self-mastery,
he lived modestly throughout his life, rather than use more material goods than
he needed for himself.
Property and possessions
Joseph
Smith considered material possessions to be gifts from God. Acting as temporary stewards over whatever property
and possessions they owned legally, men and women were responsible to use what
they had to benefit all of God’s children.
The concept of stewardships was put into practice during the United
Order days described briefly above. In
the current church welfare program, members are invited to voluntarily
contribute a fast offering to help the poor, whether or not they have enough
money to comfortably make the donation.
Arizmendi
also thought it was important for material goods to belong to individuals
rather than to the state. But whoever
owned the material goods had a moral responsibility to recognize that many
people were involved in the production of those goods, and should benefit from
their use. “Having property or material goods does not give the right to abuse
them. In the end none of us can feel we
are the creators of these goods to the point of being able to claim an absolute
right to their ultimate use. Many people
have taken part in the existence and promotion of these goods, and thus the
consideration of and effect on the common good must prevail in their use and
practical applications” (Arizmendiarrieta, 2000, p. 136).
Arizmendi
linked the ownership of property with freedom: “The right to private property
is good in that it maintains the freedom of its owner, but it is not good if
this limits or deprives others of their freedom. Therefore, we must do what best fits our
personal identity with that which is ours, but considering what we do within
the community in which we live, because by not taking this into account we
could act in ways that are detrimental to others” (Arizmendiarrieta, 2000, p.
135).
Freedom, choice, democratic
governance
The
ideal economic societies envisioned by Smith and Arizmendiarrieta were,
strictly speaking, neither socialistic nor capitalistic. The societies they
envisioned, like an ideal form of socialism, valued the contribution of
laborers and sought the common good.
But, importantly, participation was always voluntary, based on the
freedom of individuals to act according to their own consciences. The freedom of individuals to choose their
own actions and to function in a free market economy was more closely aligned
with a capitalist viewpoint.
Smith used the word “agency” to describe man’s right to make
choices. He warned against one man
trying to dominate others and take away their agency. While "it is the nature and disposition
of almost all men . . . to exercise unrighteous dominion," according to a
revelation recorded by Smith, it is best to lead "by persuasion, by
long-suffering, by gentleness and meekness, and by love unfeigned” (D&C
121: 39-41). Interestingly, a similar restraint on the power of one person over
another is manifest in the practice of democratic governance at the Mondragon
cooperatives.
Joseph Smith considered man’s right to exercise his agency in making
choices to be a fundamental principle in God’s plan of salvation. Men and women choose whether or not to obey
God’s commandments. According to the
prophet, those who obey are given more responsibilities and also experience
more joy in this life and the life beyond the grave than those who do not
choose to be obedient.
Joseph Smith believed more in theocracy than in democracy. The principles of democratic governance
enacted through the Constitution of the
Though
he also believed in God, Arizmendi attributed a great deal of moral authority
to democratic processes. “Dialogue and cooperation, freedom and commitment
constitute effective methods in the conjunction of wills and efforts to
organize and manage human work, and, consequently, to humanize the economy” (Arizmendiarrieta,
2000, p. 51). Finding the right balance
between the needs of one man and another, or the needs of one group versus
another, was best accomplished through democratic governance of the cooperatives
or other institutions: “Democracy is helpful in finding the point of
equilibrium” (Arizmendiarrieta, 2000, p. 53).
This contrasts with practices instituted in the
“The most widespread
notion in the world of the Basques is their eagerness for freedom,” Arizmendi
commented. “Let us now nourish this
notion with justice, and then, Work and Unity will bring with them progress for
our people” (Arizmendiarrieta, 2000, p. 129).
Work and personal responsibility
The books of
scripture published by the prophet Joseph Smith make frequent reference to the
word “work.” The work of men is to
provide for themselves and their families through physical and intellectual
labor. The infinitely more important
work of God, in which men and women are invited to participate, is to save
souls.
There is dignity in
labor and those who labor deserve a fair return for their effort. The instructions revealed to a contemporary
of Joseph Smith are considered to be generally applicable: “Thrust in your
sickle with all your soul…and you shall be laden with sheaves upon your back,
for the laborer is worthy of his hire” (D&C 31:5).
Likewise, Arizmendi
believed in work and the value of the unique contribution that could be made by
each person. “One cannot sit at someone
else’s table indefinitely, without ever contributing anything. Each person has a benefit from society and
one must offer to serve and give to society in kind” (Arizmendiarrieta, 2000,
p. 61).
To be responsible for
one’s own material well-being was liberating, according to Arizmendi. “Knowing
if we can live with dignity is what it is all about. Living with dignity means being able to take
care of ourselves. In this aspect, we
cannot be satisfied with any paternalism” (Arizmendiarrieta, 2000, p. 24).
Below is a brief
description of the 21st-century programs that have emerged, based on
the Christian economic principles taught by Joseph Smith Jr. and Jose Maria
Arizmendiarrieta.
The welfare program of
the
When members and their
families feel they are doing all they can to provide for themselves and still
cannot meet their basic needs, they may turn to their bishops for temporary
assistance. The bishop, as a local minister, is considered to be in the best
position to determine the nature and quantity of the help required to meet the
individual’s or family’s specific needs. He is the only person in the congregation
authorized to draw upon the fast offerings donated by other members. The bishop may also call upon the male
members comprising the priesthood quorums in his congregation, together with
the women of the Relief Society, to provide training or other services that may
be needed.
As of December 2004, the
LDS Church had established a resource system to support the work of bishops that
included 128 storehouses similar to grocery stores, 105 wet- and dry-pack canneries,
59 production projects such as farms and ranches, 48 Deseret Industries thrift
stores, 259 employment centers around the world, and 65 LDS Family Services
agencies offering counseling and adoption services (Rather, 2005, p. 102).
Because the purpose of
the church’s welfare assistance is to help people to help themselves,
recipients are given the opportunity to work to the extent of their ability for
the assistance they receive. Other church members also volunteer their time to do
much of the labor in the storehouses, canneries, and so forth.
The
Albert Bowen, a former
member of the Quorum of the Twelve, expressed the overall purpose of the
welfare program to promote the spiritual and temporal well-being of
individuals. “The real long term
objective of the Welfare Plan is the building of character in the members of
the Church, givers and receivers, rescuing all that is finest down deep inside
of them, and bringing to flower and fruitage the latent richness of the spirit,
which after all is the mission and purpose and reason for being of this Church”
(Bowen, 1946, p. 44).
Mondragon Corporacion Cooperativa
The Mondragon Corporacion
Cooperativa (MCC) is described on the group’s website by Jesus Catania,
chairman of the General Counsel, as “a
business group made of 264 companies and entities organized in three sectorial
groups: Financial, Industrial and Distribution, together with the Research and
Training areas.”
“Mondragón Corporación Cooperativa
is the fruit of the sound vision of a young priest, Don José María
Arizmendiarrieta, as well as the solidarity and efforts of all our
worker-members. Together we have been able to transform a humble factory, which
in 1956 manufactured oil stoves and paraffin heaters, into the leading
industrial group in the Basque Country and 7th in the ranking in Spain, with
sales of 11,859 million euros in its Industrial and Distribution activities,
11,036 million euros of administered assets in its Financial activity and a
total workforce of 78,455 at the end of 2005.
“MCC’s mission combines the basic objectives
of a business organization competing in international markets with the use of democratic
methods in its organization, job creation, promotion of its workers in human
and professional terms and commitment to the development of its social environment.”
(
The Mondragon
Cooperacion Cooperativa currently espouses four corporate values. They represent a concise synthesis of the ten
cooperative operating principles developed over five decades by the
workers. The values are cooperation,
participation, social responsibility, and innovation. Members identify themselves as cooperators
because they play a leading role in the management and results produced by their
companies. They are responsible for the
problems and the triumphs of the company, being personally and directly
affected by both (MCC, 2005).
The second corporate
value is participation. Members
participate in the management of the company by electing councils and voting
individually on major decisions. They
invest capital and share in the profits of the enterprise (MCC, 2005).
The third value is
social responsibility. Cooperators
manifest their solidarity by putting collective interests first. “Work is not only a means of obtaining
income. It is a source for satisfying
the needs of personal and collective development, meaning that personal aims
are compatible with those of the company, and those of the company are
compatible with its involvement in the community” (MCC, 2005).
Finally, MCC members
value innovation. In order to compete in
today’s international business environment for the purpose of maintaining or
increasing employment in the Basque country, MCC must continually develop new
products and production methods.
Research is conducted by teams working inside most cooperatives as well
as by separate research cooperatives such as the Ikerlan.
The four corporate values
are realized through ten cooperative operating principles: open admission,
democratic organization, sovereignty of labor, instrumental and subordinate
nature of capital, participatory management, wage solidarity,
inter-cooperation, social transformation, universality, and education (MCC,
2005).
The cooperatives are
said to practice open admission because they have a non-discriminatory policy,
allowing all men and women, who are capable of doing the types of jobs that MCC
is able to create, an equal opportunity to become worker-members. The cooperatives are organized democratically
on a one-member, one-vote basis.
Since it is labor
that provides the opportunity for individuals and society to improve, labor has
a supreme position, described as sovereignty.
Capital is merely an instrument necessary in business, but subordinate
to the purposes of human and community development accomplished through labor.
Cooperators manage
themselves and participate in management of the businesses. They practice payment solidarity, which
includes maintenance of the small ratios between lowest and highest paid
employees and reinvestment of profits to capitalize ventures possibly outside
of one’s own cooperative but within the MCC group. This inter-cooperation creates synergies
derived from the combined size of the group and the potential for transferring
worker-members from one cooperative to another to prevent job losses.
MCC’s operating
principles ultimately create a social transformation in the communities where
cooperators live. The transformation
occurs as a result of the high level of job security available to those who
want to accept the conditions of participation, combined with health and
retirement benefits. Add to that the investments
by the corporation in community development projects.
MCC cooperators feel
a sense of solidarity with others around the world that are working for social
democracy, peace, justice, and development.
They practice outreach to these communities, especially in developing
countries, through various initiatives such as the development projects
sponsored by the Mundukide Foundation.
Finally, members of
the Mondragon cooperative group are determined to commit adequate human and
financial resources to education, to insure that both youth and adults receive
quality vocational training, as well as instruction in the principles and
practices of cooperativism.
Summary and Conclusions
Joseph Smith
emphasized the ideas of fasting,; contributing fast offerings to be distributed
by church bishops to help the poor; consecrating all of one’s time and energy
to building the kingdom of God; stewardships; and the desirability of acting
with the unity of one heart and one mind.
He considered agency, or freedom of choice, to be among the most
fundamental rights of man bestowed by God.
At the same time, he attributed absolute moral authority to the commands
of God. A person, therefore, exercises
his or her agency primarily in the context of choosing whether or not to follow
God’s commandments.
Arizmendiarrieta
spoke of work, solidarity, sacrifice, social justice, cooperation, freedom, and
self-governance. He recognized an eternal
quality and value in human beings in which his social philosophy was grounded.
Smith went further in teaching that humans are the same species or type of being
as God, with the potential to become like God in every sense of the word,
through eternal progression in this life and a continuing life after death. Either position strengthens the idea that the
development of people is profoundly significant, while the accumulation of wealth
or other material goods is only a means of achieving a loftier end.
The welfare program
of the
The Mondragon
Corporacion Cooperativa is an international business group. They publicly recognize the foundational,
visionary contribution of the young priest Jose Maria Arizmendiarrieta. At the MCC adult education center, the
Otalora, there is a small museum dedicated to his life and teachings. But most often, cooperative members don’t speak
of their guiding principles as an expression of Catholicism. Instead, they refer to them simply as
cooperative values.
Both principle-based programs
are viable and international in scope at the beginning of the 21st century,
after a 175-year process for the
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