ASSESSMENT OF THE COOPERATIVE MANAGEMENT MODEL IN BOLIVIA’S TELECOMMUNICATIONS SECTOR

Abstract

The document analyzes the cooperative management model in Bolivia’s telecommunications sector, focusing on as a case study. It highlights that cooperatives faced serious financial and operational challenges due to external factors such as technological changes, government harassment, and economic crises, as well as internal issues related to poor business management.

The research aims to identify the main causes of continuous and persistent deficit results. Through a statistical analysis of revenues, expenses, and operational results between 1995 and 2022, it concludes that expenses have a greater impact on accumulated losses. Therefore, the primary responsibility lies with the administration and oversight tasks carried out by the Councils. The Administration Council is responsible for the strategic direction and general control of the company, while daily management falls to the senior management appointed by this body. The Oversight Council is tasked with monitoring and, if necessary, censuring the actions of the Administration Council and the executive team. Several strategies are proposed to improve financial sustainability, such as income diversification, process optimization, technology investment, and, most importantly, professionalizing management. Additionally, it is suggested to adapt regulations to require professional training and administrative experience for members of the administration and oversight councils members of the administration and oversight councils. The future of the sector depends on its ability to adapt to technological changes, diversify services, and improve management.