Res Gestae
Cooperatives, major economic player
The passage of Republic Act 6938 or the Cooperative Code of the Philippines of 1990 may be considered as the birth of cooperativism in the country. Though history tells us that, as early as 19th Century, some Filipinos, especially Dr Jose Rizal, have already seen the need for a cooperative as a mechanism for development and progress. Rizal, while on exile, formed the first farmers' cooperative in Dapitan in 1896.
Today, thousands of cooperatives operate and do business in all parts of the country and have also produced thousands of success stories of their member-owners.
Along with the countless of success stories and testimonies is an indubitable fact that the cooperative sector is now among the major economic players to be considered in the country.
With this premise, I can't help but cite facts and figures. The Cooperative Development Authority 2004 report states that about 32 biggest coops in the country have at least 100 million in net worth. Same report also states that the national average savings mobilized by cooperatives as of the end of 2003 alone amounted to more than P113 billion.
Sometimes it is difficult to imagine how cooperatives thrive in the business and acquire millions worth of assets, especially if one talks of cooperatives formed then by the poorest of the poor.
While many cooperatives have been established by member-owners belonging to average-earner Filipinos, most cooperatives had beginnings with the people in the marginalized sectors -- those who have been denied access for credit due to their circumstances.
But knowing the cooperative principles, I have learned that success is just within the reach of those who formed a cooperative.
Though RA 6938 enumerates only six principles, there are actually seven cooperative principles which were reformulated by the International Cooperative Alliance in Vienna in 1966 during its 23rd Congress. And here I quote:
The first principle is anchored on voluntarism. This means that each member of a cooperative becomes a member voluntarily and is not restricted by social, political or religious discrimination. In fact anyone who meets the qualifications set by a cooperative's bylaws can be a member if he willingly shoulders their responsibility.
The second principle is democracy. Coops are democratic organizations with officers and managers elected or appointed in a manner agreed on by members. Each member, no matter the amount of his share, is entitled to one vote.
The third principle is the limitation of share capital interest. In the context of cooperativism, interest on a member share capital is limited so that no person -- especially those with money -- can have an overwhelming equity in the coop. This prevents the domination of the coop's affairs by wealthy members at the expense of poorer members and the organization as whole.
The fourth principle, essentially a manifestation of the third principle, revolves on the sharing all location of cooperatives surplus or savings. At bottom, it mandates distribution of surplus equitably so that no member, gains at the expense of another. Surplus are, by decision of the member, used for developing the coop's business interests, providing common services to members in proportion to their transactions with the cooperatives.
The fifth principle makes provision for the education and training of cooperatives members, officers and employees, and of the general public in the principles and techniques of cooperation.
The sixth principle harps on the promotion of cooperation between cooperatives at local, national and international levels.
The seventh principle is the concern for community by working for its sustainable development through policies approved by the cooperative members.
Indeed, the cooperative principles are plain and simple. Yet, they pave the way to thousands of poor Filipinos towards economic stability and stronger communities.
Thus, despite the country's dwindling economy and financial crisis around the globe, it is our hope that we, Filipinos, can still survive. And, we can do it well and easy with cooperatives.
(Comments to rogatepnp@yahoo.com)