Centennial Year of Philippine Cooperatives

THE

cooperative movement in the country which commemorated its centennial last week has always played a key role in the life of the country. Over the past ten decades, it had chalked up quite an impressive record as a third sector – an instrument of social justice as envisioned by the Constitution. It has fulfilled this goal by addressing the needs of the less privileged and marginalized sectors of our society through the provision of credit and marketing mechanisms, capacity- building, and other social and economic innovations that promote self-reliant growth.

In his message celebrating a cooperative century, Dr. Eulogio T. Castillo, officer- in- charge of the Cooperative Development Authority, recognized the advances that the movement has made despite enormous challenges along the way. Today, its success has been the result of the faith and tenacity of its members and advocates who enabled the cooperative to adapt, survive, and to live up to the vision of its founders – that it would serve as an instrument in strengthening democratic participation, build trust and solidarity among its members, and promote equity and economic development.

On February 5, 1915, Act No. 2508, “An Act Regulating the Creation and Operation of Rural Agricultural Cooperatives Associations and for Other Purpose” or the Rural Credit Act was enacted into law, paving the way for the creation and organization of the cooperatives in the Philippines. Here are among the milestones:

(1) Dr. Jose Rizal organized local farmers in Dapitan to build an irrigation system. Shortly afterwards, Emilio Jacinto organized the Samahan ng Bayan sa Pangangalakal in Sta. Cruz, Laguna.

(2) The Corporation Law of 1916 setting the legal framework for cooperatives was passed. Some of the laws and organizations created were: Rural credit cooperatives to provide farmers with credit; the Cooperative Marketing Law; the National Trading Corporation which granted tax holidays to cooperatives; the National Cooperative Administration (NCA) which replaced the NTC.

(3) During the Japanese occupation, 5,000 consumers and producer cooperatives were organized in Manila.

(4) In 1946, 1,500 cooperative societies were organized for Philippine Relief and Rehabilitation Administration, transformation of the NCA into National Cooperative and Small Business Corporation; creation of the Cooperative Administration Office and the Small Farmers Cooperative Loan Fund, and the creation of the Agricultural Credit Corporation Financing Administration which organized Farmers Cooperative Marketing Associations or Facomas which provided collateral loans to farmers. This was followed by passing of the Philippine NonAgricultural Cooperative Act creating credit unions; the Agricultural Credit Administration, the Land Reform Code, and the National Electrification Administration.

(5) Presidential decrees issued in 1973 instituting the Samahang Nayon and Kilusang Bayan, the Land Bank, the sugar producers marketing cooperatives, and the transport cooperatives.

(6) After the EDSA revolution, the 1987 Constitution mandated Congress to create an agency to promote cooperatives and to enact the Cooperative Code which created the Cooperative Development Authority. We are honored to have had a role as author of the constitutional provision and we acknowledge the support of our political and cooperative leaders, among them, former Senators Aquilino Pimentel and Butz Aquino who authored the two land- mark laws. Because of their vision and sacrifice, cooperatives have expanded quantitatively and diversified as well to serve farmers, fisherfolk, consumers, housing, transport, and various service sectors.

Today, cooperatives have a total membership of 10,762,000, with total assets of 242 billion, a total paid-up capital of 72 billion, a total volume of business of 313 billion, and 290,662 employees. Indeed, the cooperative has become a significant force, a model of democratic governance and human development. My e-mail is Florangel. braid@gmail.com