References:

Fundamentals of Cooperative Part 2 | CDA Regional Office I telah bersiaran langsung. | By CDA Regional
Office I | Facebook

Series 1 - History of the Cooperative Development Authority (CDA) - YouTube

Fundamentals of Cooperative December 9, 2022 | Attendance link https://forms.gle/A1miQwALgN87jSdo6 |

By CDA Regional Office I | Facebook

Lesson Guide:
1. History of Cooperative in the World
2. History of the Cooperative in the Philippines
3. Why Cooperative?
- Issues in the community:
o Lack of Job Opportunities
o Inadequate income to support family
o Lack of education knowledge (education training fund-statutory requirements-capacity
building)
o Inequitable distribution of wealth and power (one member = one vote)
o People are not united “to each his own” (kanya kanya system)
o Peace and order situation (annual general assembly)
- What is a cooperative (Article 3 of RA 9520)
o An autonomous (Greek root auto means self and nomos means custom or law) duly
registered association of persons (but limited). The government will not interfere
(assuming the Principle of Regularity. There no cause for alarm)
o Common bond of interest (may nagbuklod sa atin)
o Voluntarily joined together
o To achieve social, economic and cultural needs
o By making equitable contributions to the capital required (share capital)
o Patronizing the products and services
o Accepting the fair share of the risk and benefits
o In accordance with universally accepted co-op principles (7 cooperative principles)
- Categories of Cooperatives
o Primary Cooperative – the members of which are natural persons EXCEPT electric
cooperatives, water cooperatives and other co-ops which the IRR of RA 9520 or the
Authority may allow
o Secondary Cooperative – the members of which are primary co-ops
o Tertiary Cooperative – the members of which are secondary co-ops
- How does Cooperatives help uplift the quality of lives of people?
o CDA, DILG, DA, Govt Financial banks/institutions, LGUs, DTI, DSWD, DAR, NGOs =
Convergences, partnerships through a multi-sectoral approach = low income, middle
income, high income
- Goals of Cooperatives (basic)
o To help improve the quality of life of its members and thereby contribute to inclusive
growth, enterprise development and employment
 o To attain increased income, savings, investments, productivity, and purchasing power
and promote among themselves equitable distribution of net surplus through maximum
utilization of economic of scale, cost-sharing and risk-sharing
o To implement policy guidelines that will ensure transparency, accountability and
equitable access to its resources and services, and promote the interests of the
members
o To provide optimum social and economic benefits to its members
- 7 Cooperative Principles (this is universal)
o Article 4 of the Philippine Cooperative Code of the Philippines – Every cooperative
shall conduct its affairs in accordance with Filipino culture, good values and
experience and the universally accepted principles of cooperation which include, but
are not limited to, the following:
1. Voluntary and Open Membership
Cooperatives are voluntary organizations, open to all persons able to use their
services and willing to accept the responsibilities of membership, without gender,
social, racial, political or religious discrimination. (kusang loob, walang
diskriminasyon. Qualifications: by laws. Generic in nature)
2. Democratic Member Control
Cooperatives are democratic organizations controlled by their members, who
actively participate in setting their policies and making decisions. Men and women
serving as elected representatives are accountable to the membership. In primary
cooperatives members have equal voting rights (one member, one vote) and
cooperatives at other levels are also organized in a democratic manner.
3. Member Economic Participation
Members contribute equitably to, and democratically control, the capital of their
cooperative. At least part of that capital is usually the common property of the
cooperative. Members usually receive limited compensation, if any, on capital
subscribed as a condition of membership. Members allocate surpluses for any or
all of the following purposes: developing their cooperative, possibly by setting up
reserves, part of which at least would be indivisible; benefiting members in
proportion to their transactions with the cooperative; and supporting other activities
approved by the membership. (member capital build-up program. Periodic)
4. Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their
members. If they enter into agreements with other organizations, including
governments, or raise capital from external sources, they do so on terms that
ensure democratic control by their members and maintain their cooperative
autonomy.
5. Education, Training, and Information
Cooperatives provide education and training for their members, elected
representatives, managers, and employees so they can contribute effectively to the
development of their co-operatives. They inform the general public - particularly
young people and opinion leaders - about the nature and benefits of co-operation.
6. Cooperation among Cooperatives
 Cooperatives serve their members most effectively and strengthen the cooperative
movement by working together through local, national, regional and international
structures.
7. Concern for Community
Cooperatives work for the sustainable development of their communities through
policies approved by their members.
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