HTTP://CDA.GOV.

PH/TRANSPARENCY/OVERVIEW/HISTORICAL-BACKGROUND
HISTORY

A Filipinos traveling in Europe during the later part of the 19th century must have been impressed
with the success of a new economic movement in effecting a gradual metamorphosis of the
economic and social life of the people ion those countries. At the turn of the century, Filipinos,
in increasing number, traveled and studied abroad and brought home with them new ideas. It
was this group of Filipinos who were in close in contact with the new economic movement in
Europe. Two names worthy of note were Dr. Jose P. Rizal and Teodoro Sandiko.

Rizal, after his side trip to Sandakan, Borneo in 1892, requested Governor Despudol that he and
some relatives and friends be permitted to move to that place and found a colony under the
cooperative plan of Robert Owen. Instead, he was arrested for treason and banished to Dapitan,
Zamboanga del Norte. In Dapitan, Rizal had his ideas in cooperation partially fulfilled. He put up
a school for the poor community on a purely cooperative basis. He also established a
cooperative store with the help of his pupils. One noteworthy group organized by Rizal was the
La Sociedad de los Abacaleros (Society of Abaca Producers). This functioned for only one year.
Rizal returned the members share capital without any loss.

Teodoro Sandiko, in his travels in Europe, must have had a close contact with the cooperative
movement in Germany where he came across with the Raiffeisen movement. He was very much
impressed by this type of cooperative and he looked forward for an opportunity to have it
introduced here in the Philippines. As destiny might have its choice, Sandiko had his chance
when he was appointed one of the early governors when Civil Government, under the
Americans, was established.

The Rural Credit Law. As soon as Civil Government was established, Filipino participation in
government was encouraged. Teodoro Sandiko, then governor of Bulacan, prepared a bill
patterned after the Raiffeisen type of credit union and had Rep. Albert Barreto of Zambales
sponsor the bill in the lower House of Congress. The principal aim of this bill was to protect and
develop the agricultural interest of the country. When the Barreto sponsored bill was presented
it readily obtained unanimous approval on January 20, 1908. The Philippine Commission
however, turned it down.

Undaunted by this defeat the sponsors of the bill again put it through in the Second Philippine
Legislature. This time it was sponsored in the Lower House by Rep. Rafael Corpuz who
succeeded Rep. Barreto from Zambales. The bill was ably presented in both Houses and it was
finally passed into law on February 11, 1914 and became Act 2508. When this Act was finally
made into law, Gov. Sandiko earned a title of Father of Cooperation in this country.

The administration of the Rural Credit Law was entrusted to the Bureau of Agriculture. The first
rural credit association that was organized under this Law was the Agricultural Credit
Cooperative Association of Cabanatuan, Nueva Ecija. It was formed on October 18.1916. With
this initial organization farmers in the different provinces were organized. At the end of 1926
there were 544 rural credit cooperatives organized in the 42 provinces and by 1930 there were
571 associations formed all over the country. In 1935, however, about 90% of these cooperatives
were inactive with no funds left in their treasury. The experiment on rural financing, through
cooperatives was a failure.

Marketing Cooperatives. As soon as the organization of rural credit cooperatives was in full
swing, The Cooperative Marketing Law (Act 2425) was enacted and approved on December 9,
1927. The rural credit associations were designed to help finance the productive efforts of the
farmers. In order to provide incentives to the farmers to produce more an efficient machinery for
the profitable marketing of their products should be provided. Wherever rural credit associations
were organized cooperative marketing societies were also designed to be organized.The
apparent weakness of the rural credit cooperatives, however, failed the enthusiasm of farmers
to organize themselves into cooperative marketing associations. By 1939 only 164 societies
were actually organized with a total membership of around 5,000 farmers. With this number only
35 reported their sale of products to the Bureau of Commerce. The number of associations
reporting indicated that only 20% of the organized associations were active.
Causes of the failure of early cooperatives in the Philippines. Filipino economists and students
of cooperatives in this country have often attributed the failure of cooperative societies in this
country to the following causes:

 Incompetent management
 Lack of proper understanding of the principles, practices true aims, and purposes of cooperative
associations.
 Improper use of credits by the borrowers who, instead of using money borrowed for production,
spent it for fiestas or luxuries.
 Defective securities.
 Political interference particularly in the collection of overdue accounts.
 Lack of compensation of officers.
 Inadequate character and moral responsibility in handling the other fellow’s money.
 Lack of adequate safeguard against unscrupulous officers who took advantage of their position
to grant loans to themselves and their compadres which later proved disastrous to the system.
 The dominance of the individualistic attitude instead of the spirit of cooperation among the people.
 Inability of cooperatives to secure adequate capital.
 Their dependence on alien suppliers and distributors.
 Ineffectiveness of the government and promotion of cooperative organizations.
 Inadequate marketing facilities.

Considering the experiences of similar societies in other countries, however, the fundamental
cause of failure in a cooperative enterprise is the lack of proper understanding of the principles
and true aims of cooperative associations, and the non-adherence to them in actual operation
of cooperative enterprises.

The ACCFA Financing Program. In recognition of the strategic position occupied by our farmers
in the social structure and economic development of the country, the Congress of the Philippines
in 1952 enacted Republic Act 821. This law established a system of liberal credit which is
specially designed to meet the needs of the small farmer. It also created an administrative
agency known as the Agricultural Credit and Cooperative Financing Administration (ACCFA).
To implement the great task of rural financing, four general and interrelated objectives of the law
are set forth as follows:

 To assist small farmers in securing liberal credit.

 To promote the effective groupings of farmers into cooperative associations.
 To establish an orderly and systematic marketing machinery for, and controlled by, the small
farmers.
 To place agriculture on a basis of economic equality with other industries.
 http://cda.gov.ph/transparency/name-of-officials/board-of-administrators/adm-eulogio-t-castillo-ph-d/894-
opportunities-and-challenges-to-cooperatives-in-attaining-sustainable-development-goals

OPPORTUNITIES AND CHALLENGES TO COOPERATIVES IN ATTAINING

SUSTAINABLE DEVELOPMENT GOALS
 PRINT
inShare

1.0 INTRODUCTION

The Sustainable Development Goals (SDGs) are post Millennium Development Goals (MDGs)
composed of 17 goals and 169 targets which the 193 member-countries of the United Nation
and Civil Society Organizations are expected to pursue in a period ending 2030 in a non-binding
agreement. The SDGs are also known as “Transforming our World: The 2030 Agenda for
Sustainable Development”. The SDGs are built on the principle “The Future We Want” agreed
upon under UN Resolution #/RES/66/288.

1.1 Objectives of the Conference

The Research Conference is organized to open a discussion on the general opportunities and
challenges to cooperatives in pursuing SDGs in the Philippines.

At the end of the Conference, it is expected that concrete recommendations could be generated
to provide enabling environments for the cooperatives to align their activities with the SDGs. We
have a select group of academics and practitioners to bridge the theory and practice among
those engaged with cooperatives.

To come up with specific recommendations in aligning the operations of cooperatives with

SDGs, the conference is divided into thematic areas, namely: workers, agriculture, credit,
insurance and consumers. This grouping of participants would allow us to delimit the concern of
the Conference.

As raised by some critics, some goals of SDGs are conflicting, goals are too many and the costs
of reaching the SDGs are high. Likewise, delimiting the concerns of cooperatives in participating
in the national effort to meet commitments under SDG maybe the most effective, efficient, and
practical way to do.

1.2 Objective of the Paper

This paper presents in brief the roles cooperatives have undertaken so far in achieving national,
social and economic objectives and the opportunities as well as challenges cooperative would
encounter in the effort to attain SDGs.

2.0 THE SUSTAINABLE DEVELOPMENT GOALS (2030)

As mentioned earlier, the SDGs (2030) are composed of 17 global goals and 169 targets in
which members countries of UN including CSOs are set to achieve by 2030. They are briefly
discussed below. For the Philippines, the details of goals/targets and indicators to be used in
monitoring the attainment of SDGs as enumerated by the Multi-Sectoral Committee on
International Human Development Commitments (MC-IHDC) of the National Economic
Development Authority (NEDA) are shown in Attachment 1.

Goal 1. No Poverty

 End poverty in all form and everywhere

 Still, 1in 5 people live in less than USD 1.25 a day, a measure for extreme poverty. More than half
of those living in extreme poverty are children. In 2013, an estimated 385 million children lived in
USD 1.90 a day.
Goal 2. Zero Hunger

 End hunger, achieve food security and improved malnutrition and promote sustainable
agriculture.
 To accomplish, double the productivity and income of small scale producers.
 Improve land and soil quality.
 Maintain genetic diversity of seeds.
 Increase access to land.
 Prevent trade restriction and distribution in world agriculture market.
 Eliminate waste.
 End malnutrition and under-nutrition of children.
 1 in 9 in the world are undernourished, large majority of whom are in developing countries.
 Chronic malnutrition affects 155million children, stunt children’s brain and physical growth and put
them at risk of death.

Goal 3. Good Health and Well-Being

 Ensure healthy lives and promote well-being for all ages.

 Reduce under 5 mortality rate to 25 per 1,000 live births from the current rate of 41 per 1,000 live
births.
 Reduce maternal mortality to less than 70 deaths per 1,000 live births.
 Reduce adolescent pregnancy among girls ages 15-19.
 Have universal coverage of skilled birth attendant.
 Universal health coverage to essential medicines and vaccines.

Goal 4. Quality Education

 Ensure inclusive and equitable quality education and promote lifelong learning opportunity for all.
 103 million youth worldwide still lack basic literacy skills and more than 60% of those are women.

Goal 5. Gender Equality

 Achieve gender equality and empower all women and girls. Providing women and girls with equal
access to education, health care, decent work, and representation in political and economic
decision-making process will fuel sustainable economies and benefit countries and humanities at
large.
 About 52 countries in the world have not taken steps to guarantee equality between men and
women in the Constitution.

Goal 6. Clean Water and Sanitation

 Ensure available and sustainable management of water and sanitation for all.
 Worldwide, 6 out of 10 people lack safely manage sanitation services.
 3 out of 10 people lack safely managed service.

Goal 7. Affordable and Clean Energy

 Ensure access to affordable reliable, sustainable and modern energy for all.
 As of 2017, only 57% of the global population relies primarily on clean fuels and technology short
of 95% target.

Goal 8. Decent Work and Economic Growth

 Promote sustained, inclusive, and sustainable economic growth, full and productive employment
and decent work for all.
 World Pension Council argues that long term economic growth and infrastructure investment were
not prioritized enough.

Goal 9. Industry, Innovation and Infrastructure

 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster
innovation.
 Manufacturing is a major source of employment, less developed countries have less
manufacturing value added per capita than developed countries.
Goal 10. Reduced Inequalities

 Reduce income inequality within and among countries.

 A target is to reduce the cost of exporting goods from less developed countries.
 A target is to establish 3% as the cost of migrant worker to send money home.
 Post office and money transfer companies charge 6% to remittances of international migrant
worker; commercial bank’s charge 11%.

Goal 11. Sustainable Cities and Communities

 Make cities and human settlements inclusive, safe, resilient and sustainable.
 Target for 2030 is to ensure access to safe and affordable housing.
 An estimated 800 million people worldwide live in slums as of 2014.

Goal 12. Responsible Consumption and Production

 Ensure sustainable consumption and production pattern.

 A need to use eco-friendly production methods and to reduce the amount of waste in production
and consumption practices.

Goal 13. Climate Action

 Take urgent action to combat climate change and its impacts by regulating emission and
promoting developments in renewable energy.
 In May, 2015, a report included that the 2015 Paris Accord would enable countries to reach SDGS
goals and targets.
 The Asia-Pacific Region, the most of vulnerable to the effects of climate change needs more
public-private partnership to successfully implement SDG initiatives.

Goal 14. Life Below Water

 Conserve and sustainably use the Oceans, Seas, and Marine resources for sustainable
development initiatives.
 Oceans cover 71% earth surface and absorbs 30% of all CO2 produced by humans.
 Improving the Oceans contribution to poverty reduction and give low-income families a source of
income and healthy food.

Goal 15. Life on Land

 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainable manage
forest, combat desertification, heat and reverse land degradation and halt biodiversity loss.

Goal 16. Peace, Justice and Strong Institutions

 Promote peaceful and inclusive societies for sustainable development, provide access to justice
for all and build effective, accountable and inclusive institution at all levels.
 A goal is to reduce violent crimes, sex trafficking, forced labor, and child abuse.
 Also a target is a universal legal identity and birth registration, ensuring the right to a name and
nationality, civil rights, recognition before the law, and access to justice and social services.

Goal 17. Partnerships for the Goals

 Strengthen the means of implementation and revitalize the global partnership for sustainable
development.
 International Co-operation is seen as vital to achieving the SDGs (16)
 Multi-stakeholder partnerships to share knowledge, expertise, technology and finance support is
critical to overall success of the SDGs
 Private-public partnership that involved civil societies is important partnership in the successful
attainment of SDGs

3.0 THE ROLE OF COOPERATIVES

Cooperative has been a policy instrument of government in promoting social justice and
economic development. The policy is well spelled out in the Philippine Constitution (1987) and
in the enabling laws passed by Philippine legislature. Following is a brief description of some
significant legal frameworks on cooperatives in various development regimes to have a
perspective on the roles cooperatives have taken in the past 100 years or so in achieving
national social and economic goals.

3.1 The Early Period. During the period, policies supporting the early organization of
cooperatives were passed. The main policy thrust relates to the process of organizing
cooperatives as an institution to support rural development. The period comprised the latter part
of Spanish regime, and American and Japanese occupations, a span of about 50 years.

The American or Commonwealth Period marked the beginning of formal organization of

cooperatives through the passage of Public Act 1459 (1906), Corporation Law, setting the legal
framework for all private organizations, including cooperatives. The Rural Credit Law (1915)
organized the Rural Credit Association (RCAs) which provided farmers with credit for agricultural
production.

3.2 The Post –World War II Period. The period passed policies supporting significant
developments on credit and marketing cooperatives. After the World War II, the government
policies on cooperatives development addressed the problems of rehabilitating the country,
peasant unrest, financial services for non-agricultural cooperatives, and power supply in the rural
area.

In 1952, RA 821 or the Agriculture Credit and Cooperative Financing Administration(ACCFA)

Law set the legal framework for the development of agricultural cooperatives. The ACCFA was
created to organize, register, finance, and supervise Farmers Cooperative Marketing
Associations (FACOMAs). The FACOMAs, on the other hand, were organized to deliver to
farmer-members the production and marketing loans obtained from ACCFA. Organizing farmers
into cooperatives was thought as a policy instrument to check peasants unrest at that time,
particularly in Central Luzon.

Congress granted PhP 100 million for ACCFA to reach out to farmers and provide them with
financing and marketing services.

Later in 1962, ACCFA was replaced by the Agricultural Credit Administration(ACA) under RA
3844, Land Reform Code. ACCFA/ACA/FACOMAs were disbanded when the Land Bank of the
Philippines (LBP) was created under Presidential Decree (PD) 251 in 1973.

In 1957, RA 2023, the Non-Agricultural Cooperative Law, was passed to encourage and assist
the development of cooperative banks and provide reasonable credit to non-agricultural
cooperatives. Based on its provisions, the Philippine National Cooperative Bank (PNCB) was
organized in 1960. Because of poor loan collection and unsound banking practices, the PNCB
ceased to operate in 1972. Under RA 2023, primary non-agricultural cooperatives were also
organized, the credit unions, the predecessors of present-day credit cooperatives. Today, they
stand as the strongest cooperative sub-sector in the Philippines in terms of financial resources.

In 1969, the National Electrification Administration (NEA) was created for the government to
spearhead the rural electrification program through the promotion and registration of electric
cooperatives.

The electric cooperatives sub-sector is now one of the largest group of cooperatives movement
in terms of membership (households) served. They are, however, saddled with the unresolved
problems of identity, and liquidity, solvency, and profitability.

3.3 The Martial Law Period. The Martial Law period marked the era of strong government
intervention in organizing, strengthening, and unifying the cooperatives. However, the unification
effort was not fully successful.

Presidential Decree (PD) 175 and Letter of Instruction (LOI) 23 were issued laying the foundation
for the organization of Samahang Nayon (SN, pre-cooperatives) and Kilusang Bayan (KB, full-
fledged cooperative), and the federation and union of cooperatives. Both issuances were linked
to the implementation of agrarian reform program as agrarian reform beneficiaries were required
to become members of the cooperative/samahang nayon to enjoy the benefits under the land
reform program.
But before Martial Law ended, other laws were passed to separate other types of cooperative
from supervision of the Bureau of Cooperatives Development (BCOD). These are PD 269 (1973)
strengthening National Electrification Administration (NEA), PD 775 (1973) creating sugar
producer s marketing cooperative under the Sugar Regulatory Administration, and EO 898
(1973) creating the Committee on Transport Cooperative under the Office of the Transport
Cooperative (OTC) of the Department of Transportation and Communication (DOTC).

3.4 Current Policies on Cooperative Development. The current government policy frameworks
for cooperatives are the 1987 Constitution, Cooperative Code of 1990 (RA 6938) as amended
by RA 9520 of 2008, and RA 6939 which created the CDA.

Other laws such as the Comprehensive Agrarian Reform Law (RA 6657) and the CARP
Extension and Reform (RA 9700), the Local Government Code (RA 7160), the Agriculture and
Fisheries Modernization Act (RA 8435), the Magna Carta Small Farmers(RA7602), and the
Credit Information Systems Act (RA 9510) amplify these policies in particular circumstances.

The 1987Constitution provides that “Congress shall create an agency that will promote the
viability and growth of cooperatives as instruments for social justice and economic
development”.

The 2008 Cooperative Code declared that it is State policy “to foster the creation and growth of
cooperatives as a practical vehicle for promoting self-reliance and harnessing people power
towards the attainment of economic development and social justice”

Further, it states that “the Government and all its branches, subdivisions, instrumentalities and
agencies shall ensure the provision of technical guidance, financial assistance and other
services to enable said cooperatives to develop into viable and responsive economic enterprises
and thereby bring a strong cooperative movement that is free from any conditions that might
infringe upon the autonomy or organizational integrity of cooperatives’. Moreover, “The State
recognize the principle of subsidiarity under which the cooperative sector will initiate and regulate
within its own ranks the promotion and organization, training and research, audit and support
services relating to cooperatives with government assistance where necessary.

RA 6939 created the CDA which is mandated, among others, to

a) Formulate, adopt and implement integrated and comprehensive programs on cooperative

development;
b) Develop and conduct management and training program upon request of cooperatives;
c) Support the voluntary organization and consensual development activities that promote
cooperative and provide assistance toward upgrading cooperative cooperatives concerned;
d) Coordinate the effort of the local government unit and the private sector in the promotion,
organization and development of cooperative;
e) Formulate and adopt continuing policy initiative consultation with the cooperative sector
through public hearing; and
f) Register all cooperatives and their federations and unions including their division, merger,
consolidation, dissolution or liquidation. The law provides that “the history, philosophy, principles
and practices of cooperatives and their role as a factor in national economy shall be
disseminated both in formal ad non-formal education. State colleges and universities shall
provide the technical assistance and guidance to cooperative in the communities wherein they
operate upon request”.

3.5 Status of Cooperatives. As December 2017, 12,363 cooperatives complied with the
reportorial requirements of CDA, including the submission of audited financial statements. Out
of this figure, 54% were micro, 26% small, 15% medium, and 5% large cooperatives.

In terms of assets, the micro cooperatives comprised 2%; small, 6%; medium, 18%; and large,
74% (Table 1) of the PhP 382 Billion total assets of reporting cooperatives.

There is an inverse relationship between size of cooperatives and assets holdings. The micro
cooperatives which composed 54% of the reporting cooperatives had only 2% of the total assets
while the large cooperatives which composed only 5% of the reporting cooperatives had 74% of
the total assets.
The figures indicate, among others, that improving the lot of micro and small cooperatives would
have enormous effect on improving the social and economic development of the rural and
agricultural economy, in particular and the national economy, in general.

The dominance of agriculture cooperatives, which are composed of agriculture, multi-purpose,

agrarian reform, and dairy cooperatives, are shown in Table 2. Their combine numbers
constitute 68% of the total number of reporting cooperatives.

The total volume of business generated by all reporting cooperatives, as of December 2017,
was PhP 382 Billion, of which 76% was contributed by multi-purpose, agrarian reform, dairy, and
agriculture cooperatives.

4.0 OPPORTUNITIES AND CHALLENGES FOR COOPERATIVES

Cooperatives as social and business organizations are engaged in human development given
their roles as instruments of social justice and economic developments. As such, they have been
at the forefront of meeting most, if not all, of the SDGs long before the UN coined the SGD (2030)
Agenda. But it would be worthwhile to reiterate the opportunities as well as challenges the
cooperatives in the Philippines may have to consider in terms of undertaking social and
economic activities, including research to meet the national commitments under the SDG (2030)
Agenda.

4.1 Opportunities.

The cooperative movement in the Philippines clearly manifest its participation in the achievement
of the SDGs in seven areas, namely: eradication of poverty and hunger, decent work and
economic growth, responsive production and consumption, reduced inequalities, climate action;
peace, justice and strong institutions, and gender equality.1/

a) Eradication of poverty and hunger. More than 78% of cooperatives in the country are
composed of multi-purpose, agrarian reform, dairy and agriculture. All of them are engaged in
food production. Although many of them are in micro and small categories, the government is
on track in providing technical, financial and institutional development assistance to transform
them into medium and large cooperatives, thus making them profitable, sustainable and
competitive in the market. The transformation of these cooperative into viable and sustainable
status is projected to have an impact on creating broad productive agricultural and rural
enterprises, thus, contributing to the eradication of poverty and hunger.

b) Quality education. Education Training and Information comprise the Number 5 principle of
cooperatives. 2/ Since the founding of Rockdale Society of Equitable Pioneers in 1844 and the
formulation of cooperative principles in 1937, 1965 and 1996, by the International Cooperative
Alliance (ICA), “education and training” has been included as principle of cooperatives. Recently,
the Philippines has started the K-12 education program which essentially added two (2) years
of academic training in the secondary education to further improve the quality of education in the
Philippines. The CDA, in response to improving the quality of education and training program in
the country, expands its traditional accreditation of training service providers as partners in the
conduct of mandatory and optional training program for cooperatives by recognizing the state
and private colleges and universities to conduct the training of trainers, to participate in
developing research agenda, and to conduct research as a strategy for expanding the capacity
of the CDA to extend academic services to the cooperative sector. The CDA is also looking
forward to instituting a Cooperative College in partnership with the state and private colleges
and universities that will provide formal and non-formal education for cooperatives, conduct
research, and assist in developing a system of data warehousing, retrieval, processing and
dissemination that will provide readily available information useful for policy-making, program
implementation, academic studies and advocacy on cooperatives.

c) Decent work and economic growth. The institution of the labor service and workers
cooperatives and government policy of ending contractualization of labor are projected to
develop a vigorous workers cooperative that will provide alternative employment to members of
workers cooperatives better than contractual arrangement. The workers cooperative is projected
to create better employment opportunities, wage, and income than the present set-up and
consequently will provide a decent work for members of workers cooperatives and economic
growth by creating an environment for workers not only to sell labor but also to create
goods/products.

d) Reduce inequalities. The promotion of cooperatives in various areas of business interest is a

direction towards promoting the social and economic status of the less privileged members of
the society and to enjoin them to participate in national social and economic activities. The
continuous education program for cooperatives is a strategy to build the technical expertise and
entrepreneurial capacities of cooperative members, thus improving their capacities to participate
in enterprise and business development. The continuous capital build-up and savings
mobilization programs for cooperative members facilitate the financial capacity of cooperatives
and their members to finance enterprises that will generate income and uplift their economic
status. The build-up of their human resource capacities and financial resources are strategies
that can immensely contribute to uplifting the social and economic status of the poor and close
the social and economic gaps between the rich and the poor.

e) Responsive production and consumption. The promotion of organic farming which primarily
promotes the avoidance of the use of harmful pesticide and inorganic fertilizer encourages the
production and consumption of healthy food, thus promoting a healthy life for cooperative
members as well as the general consumer. The production and consumption of healthy food is
envisioned to create healthy consumers, reduce the cost of health maintenance, and increase
the allocation of financial resources to productive activities.

f) Climate action. Cooperative members are already much aware of the change in weather and
climate and their impact on production, food consumption and human habitat. Cooperatives as
community organizations are potent institutions for inducing communities to adopt to climate
change by introducing production system and community ecology in harmony with climate
change.

g) Peace, justice and strong institutions. The Muslim Mindanao of Southern Philippines has been
an area of strife and conflict. The search for solutions for lasting peace has been costly in terms
of resources, human lives and lost opportunities for better living. The idea of using cooperatives
as a solution to the conflicts and promotion of peace is being discussed and explored. The
diversion of energies and resources from arms to enterprise development of each and every
member of the community could be the solution for having lasting peace and promoting the
socio-economic well-being of community members.

h) Gender equality. The Philippines has a Gender and Development Program which mandates,
among others, every government agency to allocate 5% of its budget for Gender and
Development or GAD. The CDA has an issuance called “Guidelines on Mainstreaming GAD in
Cooperatives” that seeks to disseminate to the cooperative sector the GAD mandate of
government and to ensure the promotion of gender equality (GE), the institutionalization of GAD
policies, programs and activities in each and every cooperative, and to monitor the progress of
GAD programs and activities towards achieving GE.

4.2 Challenges.

As the critics say, it is costly to achieve the SDGs. Besides, they say SDGs are too many. For
the cooperatives in the Philippines, the following are the initial challenges to hurdle in
participating with the government in the program to achieve SDGs.3/

a. Comprehensive Development Plan

There is a need to formulate a comprehensive plan of action for the development of a vibrant
and competitive cooperatives. The plan should be initiated by government in coordination with
the cooperatives, and academic sectors. Among others, the plan should provide for the building-
up of technical, financial, managerial, and entrepreneurial capabilities of leaders and members
of cooperatives. The creation of a sound data base and a monitoring and evaluation system are
indispensable in planning, designing, implementing and evaluating partnership program
between the government and cooperatives on SDGs.

b. Financing System for Cooperatives Development

Together with the crafting of a comprehensive cooperative development plan, a financing system
for development of cooperatives should also be put in place.

The financing system shall also consider the uses of funds such as for cooperatives, education
and training program, enterprise development, data and information management, and
infrastructure development.3/

The current enabling laws on cooperatives have no budgetary provisions on cooperative

development. This is a reason why different types of cooperatives are in various stages of
development. Since under the principle of subsidiarity the initiative to develop the cooperative is
vested on the private cooperative movement, the absence of financial support from government
accentuates the uneven development of cooperatives across types. For instance, the agricultural
cooperative sector is relatively underdeveloped due to the absence of active federations/unions
of cooperatives in agriculture which can provide financial support to cooperatives and the
absence of unified financial and technical supports from government to promote and develop
cooperatives.

The current situation differs from that in the past. Under RA 821 (1952) ACCFA was granted an
appropriation of PhP 100 million by Congress for ACCFA to reach out to farmers and provide
them with financing and marketing services. Likewise, under PD 175 and LOI 23, the farmers
raised funds to finance cooperative development under the forced savings program. This
program built-up the capital of cooperatives rural banks and cooperative insurance system of
the Philippines to extend financial services to cooperatives and their members.

c. Integrated Education and Training Program

An integrated education and training system for regulators of the cooperative, implementers of
the cooperative development plan, leaders and members of cooperatives, and the general public
is necessary to have a successful cooperative development program. The SCUs may be tapped
to provide a sustained technical assistance program under this initiative, particularly in the
development researchers, scientists, managers, and professionals on cooperatives.

d. Data Base for Cooperatives

There is a dearth of data on cooperatives. In fact, there is no time series data on cooperatives
in the country today. As such, it is near to impossible to analyze the trends of development of
cooperatives in the country. Besides, the classification of cooperatives is usually amended when
a new law on cooperative is passed by Congress which makes analysis of growth and trends of
development of a particular type or class of cooperative difficult.

There is a need to develop a system of data and information warehousing, storing, retrieval,
processing and dissemination for a systematic and sustained development of cooperatives.

e. Research Agenda for Cooperatives

Sustained efforts for the development and promotion of cooperatives should be supported by a
research program that can provide data/information on assessing the performance of
cooperatives, on identifying courses of action to enhance the viability and competitiveness, on
addressing the needs of cooperatives, and in evaluating the economic and social impacts of
cooperatives on members and their communities.

4.3 Partnership of Government and Cooperative Sectors.

The importance of partnership among the stakeholders is highlighted in SDGs Agenda 2030. In
fact, Goal Number 17 is “Partnership for the Goals”. In the Philippines, the partnership between
the government and the cooperative sector in attaining equity, social justice and economic
development is engrained in the democratic process of crafting rules and regulation affecting the
cooperative sector. The mechanism of consultation with the cooperative sector by the
government is also provided for in the Cooperative Code and specified, under Executive Order
95 Series of 1993 (EO 95).
EO 95, among others, creates the National Coordinating Committee (NCC) composed of all
government agencies with programs on cooperative to coordinate with CDA for harmonious and
effective delivery of government services to cooperatives. It also calls for the formation of
consultative mechanism with the cooperative sector at various levels of bureaucracy from
municipality, provincial, regional and national levels.

The joint delivery of government services to cooperative by CDA and partner agencies is
executed through memorandum of agreements (MOAs) or memorandum of undertakings
(MOUs) between and by concerned government agencies and CDA. Basically, the
MOAs/MOUs, spell out the obligations of parties in the delivery of services to cooperatives.

The MOAs/MOUs of CDA with relevant government agencies include that with the Department
of Agriculture, Department of Agrarian Reform, Insurance Commission, Securities and
Exchange Commission, Bangko Sentral ng Pilipinas, national Housing Authority, Office of
Transport Cooperatives, and Department of Trade and Industry, to cite a few.
5.0 SUMMARY AND CONCLUDING REMARKS

5.1 Summary

a. The Research Conference is organized to open a discussion on the general opportunities and
challenges to cooperatives in the pursuit of SDGs.

b. The SDGs are post-MDGs and are composed of 17 goals and 169 targets which the 193
member countries of the United Nations and civil society organizations are expected to pursue
in a period ending 2030 in a non-binding agreement.

c. At the end of the Conference, it is expected that concrete recommendations could be

generated to provide enabling environments for the cooperatives to align their activities with the
SDGs Agenda 2030.

d. A select group of academics and practitioners are invited to the Conference to bridge the
theory and practice among those involved with cooperatives.

e. This paper outline the SDGs (2030), the roles cooperatives have undertaken to improve the
socio-economic well-being of the members and their communities.

Also, it enumerates the opportunities and challenges cooperatives would encounter in

participating in the national effort to meet the SDGs (2030).

f. Cooperatives has been a policy instrument of the government in implementing national

programs with equity, social justice, and economic development objectives.

g. The American colonial period commenced the government effort to support rural economic
development through the passage of Rural Credit Law (1915) to extend credit service to farmers.

The Post-Independence Period marked the strong government support to agricultural

cooperatives to improve the economic lots of farmers and check social unrest, particularly in
Central Luzon. During this period, RA 821, The ACCFA Law (1952) or Agricultural Cooperative
Law was enacted to create ACCFA and organize FACOMAS. The ACCFA organized, registered,
supervised, and financed FACOMAS which in turn extended production and consumption loans
to farmer-members.

To implement the program, the Congress appropriated PhP 100 million to the agricultural
cooperative development program.

In 1957, a parallel law was passed by Congress, RA 2030, The Non-Agricultural Cooperative
Law or the Credit Union Law, which paved the way for the organization of Credit Unions, the
precursor of the present day credit cooperatives. The law created a financial system to support
the credit needs of the non-agriculture sector.
Under the Martial Law period, the administration of agricultural and non-agricultural cooperatives
was fused into an agency, the Bureau of Cooperative Development. The cooperative program
under this regime was tied-up with the implementation of the land reform program.

P.D. 175 and LOI 23 was promulgated to serve as the enabling laws on cooperative
development. The laws provided for the structure of the cooperative movement, education and
training of those involved in cooperatives, the capital build-up program, and linkage of
cooperatives to agrarian reform.

A notable feature of the program was the forced savings program to create capital to organize
the cooperative rural banks, and cooperative insurance system to support the financial needs of
cooperatives and its members, and the creation of fund to guarantee the payment of land
amortization of members of Samahang Nayon who were beneficiaries of the agrarian reform
program.

Under the Post-Edsa I Revolution Period, a provision in the Constitutional (1987), was made,
Article XII Section 15 which mandates Congress to enact laws to use cooperative as instrument
of social justice and economic development. As a consequence, RA 6938 (1990), Cooperative
Code as amended by RA 9520 (2008) was passed, together with RA 6939 (1990) which created
the CDA, the government agency to implement the Cooperative Code.
However, the present enabling laws on cooperative fails to make financial provisions to fully
execute the development function of CDA.

Under the present legal frameworks, EO 95 was passed by the President emphasizing the
coordinative mechanism for all government agencies in extending technical and financial support
to cooperatives, and the consultative framework between the government and the cooperative
sector in implementing program on cooperatives.

h. Although the cooperatives have been involved in improving the human development of
members even before the SDGs 2030 were coined by the UN, the SDGs 2030 open
opportunities to cooperatives to participate with government in attaining national commitments
under the SDGs Agenda.

The goals in which cooperatives may concentrate on are:

a. Eradication of poverty and hunger;

b. Quality education;
c. Decent work and economic growth;
d. Reduce inequalities;
e. Response production and consumption;
f. Climate action;
g. Peace, justice and strong institutions; and
h. Gender equality.

i. However, for cooperative to have an effective and efficient participation with government in the
effort to attain SDGs commitment and participate in research, the following challenges, among
others, are worth to consider:

a. Comprehensive cooperative development plan;

b. Financing system for cooperative development;
c. Integrated cooperative education and training program;
d. Data base for cooperatives;
e. Research agenda for cooperatives;
f. Partnership with government.

5.2 CONCLUDING REMARKS.

The SDGs (2030) serve as aspiration of every government for her country by 2030. It is a dream
come true if the goals are achieved in the given time frame.
On the part of cooperative, partnership with government in the national effort to achieve the
SDGs (2030) is a worthy undertaking since cooperatives by the very nature of being social and
economic enterprises have been involved in improving the welfare of members.

Research, however, is a highly technical activity. It needs special skills, training, time,
commitment, and funds, among others, for correct and accurate execution. For the cooperatives
as a whole, there is a need for a system of education and training in order to produce the needed
manpower for cooperative organization and management, regulation and supervision, research,
and advocacy, to say the least.

REFERENCES

Castillo, Eulogio T. and Mercedes D. Castillo, “Cooperatives in the Socio-Economic

Development of the Philippines”, Paper presented during the 10th Asia Pacific Cooperative
Ministers’ Conference, April 18-21, 2017, Hanoi, Vietnam.

Castillo, E.T, I.M. Pabuayon and S.I. Medina, “Strengthening Rural Institutions in the
Philippines”, UPLB-PCARRD-SEARCA Policy Paper 5, July 2011, Los Baños, Laguna,
Philippines.

NEDA, Multisectorial Committee on International Human Development Commitments (MC-

IHDC), “Philippines SDG Indicators for Initial Monitoring in the Philippines”, July 22, 2017,
Ortigas Center, Metro Manila, Philippines.

Republic Act 9520 (2008), “An Act Amending the Cooperative Code of the Philippines to be
known as the Philippine Cooperative Code of 2008, July 28, 2008, Metro Manila, Philippines.

United Nations Sustainable Development Goals (2030).

RESOURCES:
This Article

ABOUT THE AUTHOR

Dr. Eulogio T. Castillo is a retired Professor and former Director of the Agricultural Credit and
Cooperatives Institute (ACCI), now Institute of Cooperatives and Bio-Enterprise Development
(ICOPED), University of the Philippines Los Baños. He holds a Ph.D. in Agricultural Economics
from the University of Illinois (USA, 1982); and MS (1974) and BSA (1969) from the University
of the Philippines Los Baños. He has written various articles on cooperatives, agricultural credit,
and agricultural economics and is a co-author of the book “The Path to the Success of
Cooperatives” published by the University of the Philippines Press, Diliman, Quezon City in
2006, and “Cooperative Banking in the Philippines published by the Development Academy of
Philippines in 2007.

Dr. Castillo is now serving as Administrator, Cooperative Development Authority of the

Philippines, the government agency mandated to promote cooperative as instrument of social
justice and economic development. The CDA is under the Office of the President of the
Philippines.
Resources...
http://cda.gov.ph/resources/updates/featured-cooperatives/660-siayan-officials-and-employees-multi-purpose-
cooperative-soempuco-2015-gawad-parangal-winner-for-small-scale-category

SIAYAN OFFICIALS AND EMPLOYEES MULTI-PURPOSE COOPERATIVE

“SOEMPUCO” | 2015 GAWAD PARANGAL WINNER FOR SMALL SCALE
CATEGORY
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BRIEF HISTORY

In a beautiful and unexploited town in the mid-part of Zamboanga del Norte emerged a
cooperative owned and managed by the employees and officials of the Local Government of
Siayan officially registered with Cooperative Development Authority (CDA) under the present
name SIAYAN OFFICIALS AND EMPLOYEES MULTI-PURPOSE COOPERATIVE
(SOEMPUCO). From its humble beginnings, SOEMPUCO was informally organized in 1992 by
25 employees and staff of the local government unit of Siayan with a small canteen with a capital
contribution of PhP50.00 per member. With strong perseverance, good management,
transparency and honesty, the cooperative grew to become the only bank-like institution in the
municipality for almost fourteen (14) years. The road situation and the distance from its nearest
urban center were the major considerations then.

On May 19, 1997, SOEMPUCO was registered with the CDA operating a consumer store then. It
expanded its services to members in 2001 to savings and credit.

Today, SOEMPUCO is a tangible reflection of growth and development a loan-free cooperative

operated by competent management staff thoroughly supervised by dedicated board of directors
with the active participation of the general assembly a heritage handed down from the very start
of its conception.

MEMBERSHIP, ASSETS, NET WORTH, CAPITALIZATION AND NET SURPLUS

HIGHLIGHTS

In its 22 years of operation, SOEMPUCO membership significantly expanded from 25 to 520

regular and associate members to include not only MLGU employees and officials but also
barangay officials, teachers, people’s organizations, farmers, children and other social sectors
of the society. It is a female dominated cooperative having 61.92% women members and one
third (1/3) of the total membership are of “Subanen” ascendancy, a major ethnic group of the
municipality.

Despite being the poorest municipality in the country, where 97.5% or 10 out of 10 of its
population are poor, SOEMPUCO dared to increase its authorized capital from PhP130,000.00
to PhP25 million by amending its Articles of Cooperation. This was achieved as SOEMPUCO
consistently raised its capital build-up at an average pace of almost half a million pesos annually
since fiscal year 2014 with a current members capital of PhP 5.63 million.

Through the benevolence of the local government of Siayan, SOEMPUCO was bequeathed with
236-square meter lot and later was able to construct its own building to situate the expansion of
its credit and consumer business serving not only the officials and employees of the MLGU but
also the entire municipality.
Apparent achievement measured through its financial record shows that SOEMPUCO had a
total assets of 12.7 million, 7.0 million net worth and has P1.0 million pesos net surplus in 2014
from its credit and consumer operation. Its credit operation is averaging a total exposure of PhP
10.0 million yearly and represents 80% of the total assets at the end of fiscal year 2014. Despite
this huge amount of exposure, both credit and consumer operation maintained a desirable
collection rate with only 7.07% delinquency rate which is equivalent to PhP 643,568.06.

Aside from the member’s capital, savings and time deposits are also the lifeblood of the
cooperative. Encouraged by the coop management through its Member Saver Program,
SOEMPUCO had enticed 94.4% of its total membership to maintain a savings account deposit
and fourteen (14) others are also time depositors with a total of PhP3.88 million.

SERVICES AND PROGRAMS OFFERED

On its way up, SOEMPUCO treasures and value its responsibility towards Siayan community
not only on the services it offered but also extending community social services to the less
privilege sector of the society. Already on its second year of implementation SOEMPUCO
conducts barangay outreach program coined as “Children’s Welfare Assistance Program” every
month of October as its way of celebrating the Cooperative Month. The children’s program
highlights two (2) activities -- “Tsinelas Mo, Sagot Ko” and “Mass Feeding” for primary and
elementary school children. Barangay Sayaw and Domogok were already served with a total of
187 and 497 children served, respectively.

STRONG PARTNERSHIP WITH LOCAL GOVERNMENT AND PEOPLE’S ORGANIZATION

Behind SOEMPUCO’s success is its strong partnership with the Municipal Local Government of
Siayan who is passionate in its advocacy in cooperative movement as its pathway out of poverty
changing people’s perspective and confidence in cooperative movement. The initiative of the
LGU under the incumbency of the Honorable Mayor Flora L. Villarosa organized twenty two (22)
Pangkabuhayan Centers, sixteen (16) of which are already registered cooperatives and carved
a niche in SOEMPUCO’s growth and achievements. Together with SOEMPUCO a federation of
all cooperatives in Siayan was formed strengthening trading ties and complementation of
activities as the SOEMPUCO is officially the depository bank of all the Pangkabuhayan Centers,
BAWASA, women groups with a total deposit of PhP884, 751.33. SOEMPUCO is one in the
spirit of promoting the Subanen culture celebrating Araw ng Subanen annually, advocates
environment preservation during tree planting activities and above all leads in promoting spiritual
values among its members.

BEST PRACTICES OF SOEMPUCO

01. Members attitude on loan payment/repayment

 Continuous member education and joint committee mentoring on credit responsibility and maturity
conducted every last week of october

- Has transformed members attitude towards credit maturity especially that loan collection is
not adopting automatic salary deduction;
- Has maintained a very low percentage on loan delinquency at only 7.07% roughly php
643,000 out from the total loans released of Php 9 million;

02. Continuous monthly capital build-up

03. Distribution of goods to members during general assembly meeting
04. Granting of amnesty on penalties of loan receivables for a period 6 months effective january
1, 2015 to june 30, 2015
05. Minimal mark-up of goods for sale - resolution amending the mark-up price of selling prime
commodities particularly rice and corn grits in the amount of php 100.00 per sack
06. High interest rates of savings and time deposits
07. Safety net – adoption of internal control

 Issuance of receipts in all transactions

 Daily remittance of collection from teller to treasurer to landbank
- Purchase audit before opening of merchandise stocks
- Use of cheque account

08. Membership/affiliation with other cooperatives

 Philippine federation of credit cooperative

 Zamboanga del norte cooperative bank (zncb)

09. Educational trip once every 2 years

10. Community social responsibility

 Child welfare program

- School children feeding activity

- “sagot ko, tsinelas mo”

11. Strong linkage with LGU and partners

 Support to Litolet pangkabuhayan consumer’s cooperative feeding activity

 Preservation and respect of culture – Araw ng Subanen
 Environmental protection through tree planting
 Participation in the founding anniversary of the Municipality of Siayan
 Christmas gift giving and meals for the general public

12. Contributions of SOEMPUCO which have impact to cooperative development in local,

national and international level
13. Growth in the number of cooperatives operating in the municipality

 The success of SOEMPUCO had catalyzed the growth of seventeen (17) more active and
operating cooperatives in the Municipality of Siayan with a very strong support from the MLGU
making cooperative a pathway out of poverty through the municipal flagship program “Community
Enterprise Development Program-Pangkabuhayan Centers”
 It renewed the interest of the people to become members of cooperatives

MAJOR AND RELEVANT ACCOMPLISHMENT WITH IMPACT IN COOPERATIVE

DEVELOPMENT?

With the initial implementation and accomplishment of the “Gulayan sa Pangkabuhayan Center”,
Japan Social Development Fund selected SOEMPUCO among the many micro-finance
institutions (MFIS) as their partner despite the fact that SOEMPUCO is yet neophyte in micro-
financing. JSDF – community driven enterprise focusing on corn production, marketing and
trading initially deposited a total amount of Php 2.38 million project fund to benefit 1,208 farmers
with 75 clusters. The partnership will ultimately expand SOEMPUCOs business operation to
micro-financing and farm input trading.

SOEMPUCO takes pride to be part of the poverty reduction of Siayan as it is one of the prime
actor in the economic upliftment of the municipality. Siayan was ranked number 1 as the poorest
in 2003 and 2009 down to number 36 in 2012.

Supported the CDA in its advocacy for membership expansion. Intensive campaign of barangay
officials to become a member of a local cooperative operating in the municipality rather than in
any other cooperative outside the municipality which will saved them cost such as transportation
expense and meals. SOEMPUCO provides fast and efficient service with a maximum of less
than 2 days in availing loan.

Campaign for food security increasing livelihood opportunities as an alternative source of

income through the “Gulayan sa Pangkabuhayan Center” a partnership with the local
government of Siayan

 The activity intends to spur livelihood opportunities to farmer-member increasing their capacity to
pay loans and increase their share capital and deposits to Soempuco
  Improve members capacity to engaged in commercial planting of vegetable using appropriate
farming technology

Sustained operation for 22 years is the pride of SOEMPUCO and intends to continue further
serving the people of Siayan touching their lives and making life better making them conscious
that being poor is not a hindrance to success but rather an inspiration to become successful.

Resources...
http://cda.gov.ph/resources/updates/featured-cooperatives/667-natcco-2nd-best-performing-cooperative-
federation-in-2015

NATCCO: 2ND BEST PERFORMING COOPERATIVE FEDERATION IN 2015

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The National Confederation of

Cooperatives or NATCCO Network is a story of transformation. It was established on January
23, 1977 in Cebu City by the five regional co-op training centers: Tagalog Cooperative Training
Center (TAGCOTEC), Visayas Cooperative Development Center (VICTO), Bicol Cooperative
Development Center (BCDC), Northern Luzon Federation of Cooperatives and Development
Center (NORLUCEDEC), and Southern Philippines Educational Center for Cooperatives
(SPECC). NATCCO originally meant National Association of Training Centers for Cooperatives.
Its task was to coordinate the trainings and educational services for cooperatives at the national
level. NATCCO transformed into a multi-service national co-op federation after the 1986 EDSA
Revolution; the member regional training centers became multi-service co-op development
centers. The acronym NATCCO became National Confederation of Cooperatives in 1989.

As NATCCO entered the year 2000, a study was conducted to determine the most viable
structure for the network. A Structural Review Committee, composed mainly of primary
cooperatives, recommended a restructuring from the three-tier to a two-tier federation; with a
focus on financial intermediation. The first financial product was launched in 2002, the Liquidity
Fund which started the Central Fund operations. In 2004, the NATCCO transformed into a two-
tier federation, with primary co-ops as direct members. Its core services would be financial
intermediation, education and allied services; other non-financial services would become
subsidiaries.

Ten years after the 2004 decision, NATCCO is the largest federation in the Philippines in terms
of geographical reach, membership, financial capacity, and array of services. Its 787 member
co-ops have 3.4 million individual members; serviced through the 1,403 offices and more than
60 ATMs. The 787 co-ops in 77 provinces have combined assets of about P96 Billions. About
190 NATCCO staff run its offices in Santiago City, Baguio City, Naga City, Cebu City, and the
Quezon City National Headquarters. In 2012, on its 35th year, NATCCO reaffirmed its ‘reason
for being’ with a new Mission: “To Build the Socio-Economic Capabilities of Cooperatives
Through the Delivery of Superior Financial Products and Allied Services.”
NATCCO is the first Philippine cooperative to have received and maintained three ISO
certifications, in Quality Management, Environmental Health & Safety Management, and
Occupational Health and Safety Management. It also has a certificate of compliance for
Information Security from the NGO, ASSIST.

NATCCO’s advocacies include Gender Equality, Youth Development, Micro-enterprises,

Disaster Risk Reduction & Management among co-ops, and Environmental Management.

Performance Highlights as of December 2014

SERVICES & PROGRAMS

Education, Training & Consultancy

The NATCCO Networkwas established in 1977 to coordinate the trainings and educational
services for cooperatives at the national level. Training continues to be a core service of the
Network – aiming to equip co-op leaders in managing their organizations to become not just
sustainable, but champions in their communities.

Treasury & Credit

Co-ops invest their money in secure, professionally-managed funds or obtain loans. This is
one of the core services of NATCCO.

Information Technology

Ekoopbanker is a stand-alone financial management software specifically designed for the

demands of cooperatives in accordance with the Cooperative Code of 2008 (RA 9520). It
remains popular for many co-ops that have single offices or are located in areas with limited
internet connection. 132 co-ops with 209 branches are using the stand-alone version.

Ekoopbanker Plus is an upgraded version that allows inter-cooperative and cooperative-bank

transactions, which also supports ATM transactions, mobile banking, and POS transactions.
Ekoopbanker Plus ensures fast and reliable automation, secures data and yet readily
accessible to co-op management,

Pinoy Coop ATM enables co-ps to provide 24/7 electronic banking to “unbanked and
underserved” rural communities. Since 2010, 65 ATM branches have been opened, operated
and maintained by NATCCO’s IT Group.

Digibuy provides co-ops and their members affordable computers, tablets and cellphones.
Digibuy is made possible through INTEL’sDigibayanihan Program.

Point-of-Sale. This device allows co-op mobile tellers/collectors to perform and record
transactions on the field. Upon arrival at the co-op offices at the end of the day, the teller
connects the POS device to download the day’s transactions into the computers.

This improves efficiency and decreases chances for fraud.

Mobile Banking. Virtually every Filipino adult today has a cellphone, which can be used in
performing transactions. The NATCCO Network enables co-ops to let their memberstransact
using their smart phones. This is especially useful in providing financial services to far-flung
rural areas and islands.

Partners: Intel, The Channel Group, Diebold, Bancnet

Microfinance Innovations in Cooperatives. Cooperatives – especially agricultural and

Agrarian Reform Beneficiary (ARB) co-ops – lack management skills and capitalization to grow
their social enterprise. The NATCCO Network partners with co-ops to provide training,
supervision, and even capitalization to these co-ops. The MICOOP Group has opened 111
branches all over the country since the program began in 2006. Fifty (50) of the branches are
ARB co-ops recommended by the Dept. of Agrarian Reform under MICARAS Program.
Partner: Dept. of Agrarian Reform, Bank IM Bistum Essen (Germany)

BEST PRACTICES

Networking & Advocacy

The NATCCO Network engages as many member co-ops in its three major advocacies:

Disaster Risk Reduction and Management ensures the ‘business continuity’ of co-ops even
after disaster. Co-ops are encouraged to link up with local governments, NGOs, and their
members so that they can be ready to help their communities, and minimize dependence on
Government. Co-ops are taught how to established a DRRM Program in their operations

Gender Equality. Studies in Asian credit unions reveal co-ops that encourage equality have
lower delinquency.

Social Performance Management. Co-ops are social enterprises that exist for the members’
“social, economic, and cultural needs and aspirations.” More than just earning money, co-ops
must actually improve the lives of members.

Partners: NDRRMC, Local Government Units, CODE-NGO, Phil. Commission on Women,

Coca-Cola Philippines

Conditional Cash Transfer

This is the National Government’s flagship anti-poverty program implemented by the Dept. of
Social Welfare & Development. The NATCCO Network has worked for co-ops to be conduits
and it has proven that co-ops are indeed can reach rural areas better. In 2014, 119 co-ops in
Regions 4, 5, 6, 7 & 8 distributed P4.03 Billion in cash to 2.459 million beneficiaries. As of July
2015, this expanded to Metro Manila, with 65 co-ops distributing P2.536 Billion cash to 1.292
million beneficiaries.

Partner: Dept. of Social Welfare & Development

Aflatoun

NATCCO and qualified co-ops partner with public schools to train teachers how to include
financial literacy in the curriculum. The kids deposits are placed in a special account in the
cooperative. There are now 102 co-ops participating in Aflatoun, reaching 332,233 kids in 704
schools. Savings generated amounts to P88 Million.
Department of Education, Child Savings International (Netherlands)
Resources...

Cooperative principle https://en.wikipedia.org/wiki/Cooperative_principle

From Wikipedia, the free encyclopedia

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For the principles governing the functioning of co-operative organizations, see Rochdale Principles.

This article possibly contains original research. Please improve it by verifying the
claims made and adding inline citations. Statements consisting only of original
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message)

In social science generally and linguistics specifically, the cooperative principle describes how effective
communication in conversation is achieved in common social situations, that is, how listeners and speakers
must act cooperatively and mutually accept one another to be understood in a particular way. As phrased
by Paul Grice, who introduced it, "Make your contribution such as is required, at the stage at which it occurs,
by the accepted purpose or direction of the talk exchange in which you are engaged."[1] Though phrased as
a prescriptive command, the principle is intended as a description of how people normally behave in
conversation. Jeffries and McIntyre describe Grice's maxims as "encapsulating the assumptions that we
prototypically hold when we engage in conversation".[2]
The cooperative principle can be divided into four maxims, called the Gricean maxims, describing specific
rational principles observed by people who obey the cooperative principle; these principles enable effective
communication.[3] Grice proposed four conversational maxims that arise from the pragmatics of
natural language.[3] Applying the Gricean maxims is a way to explain the link between utterances and what is
understood from them.