A Masteral Thesis at Pangasinan State University, Urdaneta City, Pangasinan March 2010

1. GOVERNANCE AND POVERTY ALLEVIATION: THE
PANGASINAN EXPERIENCE
Edwin Badu Rawlings Gbargaye
Name of Researcher
Compiled by: Jacqueline L. De Leon
Acting Chief RIT 2010
CDA Dagupan Extension Office
Philippines

2. ACKNOWLEDGEMENT
With profound thanks and gratitude, the researcher acknowledges the assistance of
those who in one way or another contributed to the completion of this study.
DR. ZENAIDA U. SUYAT, Dean Gradute School, Pangasinan State University; for being
the Chairman of his panel whose suggestion and comments greatly improved the study;
DR. JOSEFINA B. BITONIO, her adviser and at the same time the MDM Program
Adviser, Assistant Regional Director of the Cooperative Development Authority for her
unwavering support, sacrifice, patience and understanding and for gladly sharing her valuable
time and expertise in the conduct of this research;
DR. FLORITA G. LOPEZ for her suggestions and recommendations have greatly
improved the study;
DR. RODRIGO JAVIER, for his professional guidance, valuable suggestions have
enriched the study;
DR. LETICIA B. URSUA, his critique reader for the valuable observation, comments
and suggestions, which helped improved the quality and relevance of his study;
DR. FE SORIANO, for taking notes during the defense and for her technical advise
which have contributed to the completion of this study;
DR PAULO CENAS, his statistician, for sharing his expertise in the improvement of the
study
DR. VIRGINIA A. TEODOSIO for her unwavering and unflinching struggle and advocacy
for the cooperative movement in the Philippines and World over.
DR. CAESAR M. MERCADO, Chief Executive Officer, and founder of DCAAP for his
advice and encouragement during the course of the study.
ROGER B.GBARGAYE for his kind words of encouragement accorded the researcher
during the period of this study.

3. JULIET C. CAROLINO for her assistance in editing and recommending valuable
information to this study, for being kind and her unconditional support.
The Cooperative Development Office of San Carlos City, Alaminos, and Dagupan
City for assisting the researcher in gathering pertinent data needed for his study and all the
cooperative respondents for their warm welcome and reception
Cooperative Development Officers and staff for sharing their valuable time and
sharing their resources available for the gathering of data and information
NCPAG Librarian and staff for giving their assistance, support and help the
researcher access to references
All MDM classmates with special thanks to Art, Maricris, Mely, Mercy and my friends
for their understanding, motivation, encouragement and warm friendship that the researcher will
keep aflame in his heart
His beloved family Peace, RB, Edwin Jr., Rose, Danforth and Edmund whose love
served as an inspiration to move on with my goal, my father and siblings who dream with me
about the realization of my educational objective in the Philippines; Above all, to the Lord
Almighty, for providing him the needed strength, courage, wisdom, determination in pursuing
this study.
Edwin B.R. Gbargaye

4. DEDICATION
This humble piece of work is dedicated to
all cooperators and practitioners
may your be more strengthened
and benefit from the advancements
of cooperative good governance
practices

5. ABSTRACT
Title: GOVERNANCE AND POVERTY ALLEVIATION: THE
PANGASINAN EXPERIENCE
Researcher: Edwin Badu Rawlings Gbargaye
Degree/Specialization: Master in Development Management/Public Management
Adviser: Dr. Josefina B. Bitonio
Institution: Pangasinan State University
Graduate School
Urdaneta City
Date of Graduation: March 2010
______________________________________________________________________
Cooperative governance has not been a well illuminated topic in the evolving
public discussions on good governance in the Philippines and developing nations. The
emergent framework of governance now provides a new understanding of the current
structures and dynamics in the cooperative sector. While admittedly, there have been
exemplary cases of cooperatives; the great majority are struggling, whose performance
and viability hang in the balance. Those who have excelled may also step into the
pitfalls of leadership changes, which is a volatile feature of the cooperative system.
Overall, Cooperative is an instrument for poverty reduction but it must first of all
ascribe to the tenets of good governance as a mechanism, practice, and medium in
which cooperatives help their members to better themselves. The integration of good
governance into cooperatives intends to improve its service delivery methods.
The study covered the organizational profile of cooperatives, the model of
governance practiced by each of these cooperatives, the level of governance along

6. accountability, transparency, predictability, and participation It particularly examines
the services provided by cooperatives in the four cities of Pangasinan in alleviating
poverty among its members as well as the problems on cooperative governance.
The data and information were generated using questionnaire, group
discussions, interviews, field visits and observations, official documents, and other
secondary sources. The respondents were officers and members of the fifteen
cooperatives of the four cities in Pangasinan.
Statement of the Problem
Generally, this study posed the question: What framework of good cooperative
governance improves the policy decisions and delivery of services to the membership
and the public as well?
Thus, it seeks to answer the following specific questions:
1. What is the organizational profile of cooperatives in terms of :
a. date registered;
b. articles of cooperation and by-laws;
c. number of employees;
d. membership;
e. assets;
f. deposits;
g. trainings conducted ;
h. services rendered;
i. Linkages; and
j. Core management team?

7. 2. What governance model strengthens confidence in cooperatives as
an instrument to reducing poverty?
a. traditional;
b. corporate;
c. democratic; and
d. eclectic?
3. What is the level of governance being practiced by the cooperative officers in
terms of
a. accountability;
b. transparency;
c. predictability; and
d. participation?
4 . What are the services provided by cooperatives in alleviating poverty of the
members in terms of:
a. provision of credit;
b. employment;
c. educational assistance;
d. mutual aid fund;
e. health benefits;
f. Member’s benefit; and
e. community involvement?
5. What are the problems in cooperative governance along the following:
a. accountability;

8. b. transparency;
c. predictability; and
d. participation?
6. Is there a significant relationship in level of governance practiced and
governance models applied by cooperatives?
7. Is there a relationship of the level of governance practiced and the level of
Governance Model predominantly applied by cooperatives?
8. Is there a significant relationship in the level of governance across their
organizational profile variables?
Fourteen cooperatives (93.33%) were reregistered under RA 9520 and one
cooperative (6.66%) was registered under RA 6938. The 15 cooperatives have 123
employees with 5,948 membership, total assets is P 250,228,180.33, with savings
deposits of P 87,220,422.50, conducted 22 trainings, with services rendered namely:
lending, consumers, trading, service, training and consultancy
There are 11 cooperatives (73.33 %) practicing the democratic model while four
cooperatives (26.67 %) are practicing corporate model. None of the cooperative
respondents is practicing the traditional model of governance.
The level of governance practiced by the Cooperative Officers along the
accountability, transparency, predictability and participation have a weighted means of
4.29, 4.28, 4.03, and 3.75 respectively with a descriptive rating of much for all the
element of governance. The overall weighted mean is 4.08 with a much descriptive
rating.

9. The services provided by cooperatives in alleviating poverty are (a) provision of
credit, employment, educational assistance, mutual aid fund, health benefits, members’
benefit and community involvement. For the provision of credit, the total of volume of
loan transaction is P 296,014,502.30 with 11,592. total member borrowers (b) on
employment generation, the cooperative has assisted 3,723 self employed members,
assisted 310 members to work abroad and for the hired staff of the cooperative, a total
of 104 were employed by the cooperatives in various capacities, (c) educational
assistance, total beneficiaries of the scholarship program totaled to 36. Amount spent
for the scholarship program has a total of P 277,500.00 (d) Mutual Aid, total amount of
P734,763.50 was given to 77 families (e) Members benefit total Interest on share capital
released by cooperatives P4,253,779.00 and for patronage refund a totals
P1,531,487.00 and (f) for community involvement, the cooperatives have variety of
programs to include environmental concerns, orientation on sanitation, mangrove
planting, tree planting, vegetable, compost, fertilizer subsidy, donation to church,
training sponsored, fingerlings distribution, piglet distribution, donation to flood and
typhoon victims, feeding, donation of medicine, donation of toilet bowl and sport
sponsorship. All in all a total of 28 funded projects on community projects with a
budget of P320,527.00.
The cooperatives manifested problems along accountability, predictability,
transparency and participation with a weighted means of 1.99, 1.62, 1.76 and 1.61
respectively with a descriptive rating of sometimes. The over – all rating is “somewhat”
with a weighted mean of 1.75.

10. Relationship of Level of Governance and Governance Model. (1) The level of
practice of the governance model was not significantly correlated with the level of
governance in terms of accountability as can be realized on the r values of 0.21, 0.25,
-0.10 with associated p-values of 0.44, 0.38, and 0.73 respectively. All these p-values
exceed the alpha level of 5% thus the reason for the insignificant relationship (2) The
linear relationship tested between level of practice of the predominantly practiced model
and the level of accountability of the cooperatives is substantial (3) The relationships of
the level of governance with each of the cooperatives’ organizational profile variables
such as date of membership, number of employees, number of members, assets,
deposits, and article of cooperation and by laws resulted to no significant relationships
were observed.
Based on the findings of the study, the following conclusions are arrived at:
1. Majority of the millionaire cooperatives of the four cities in Pangasinan are older
and have re registered under the Philippine Cooperative Code of 2008 or Republic Act
9520. They have regular training program for officers, staff and membership, large
membership base and owning and managing small to large cooperatives in terms of
assets.
2. Democratic model is most predominantly practiced by cooperatives.
3. The elements of governance namely: accountability, transparency, predictability,
participation is “much practiced” and its integration of good governance in cooperative
management intends to improve its delivery of services
4. Cooperatives have contributed significantly to poverty reduction through their
provision of services, and direct investments on community projects and programs.

11. 5. There exist problems in cooperative governance particularly on members’
participation which show low rating on majority of the cooperatives in the four cities.
6. Program design and implementation strategies based on the working framework
of cooperative governance will only be considered successful if the long-term results will
effectively and consistently show the graduation of impoverished beneficiaries out of the
poverty bracket.
On the basis of the foregoing findings and conclusions, the following
recommendations are forwarded:
1. All officers should undergo training on good governance before they assume
their positions.
2. On the governance problems, there is an ardent need to establish reforms in
weak areas of cooperative governance along accountability, transparency, predictability
and participation
3. Members should elect officers with strong leadership as cooperative success
largely depends on good leadership of its officers.
4. The adoption and application of the cooperative governance by all cooperatives is
indeed an effective means for poverty alleviation.
5. Good governance must be intervening in all the aspects of cooperatives in order
to achieve confidence and trust. Cooperatives must ascribe to the tenets of good
governance as a mechanism, practice, and media in which they help improve their
cooperative’s performance and stability.