2. The history of mankind, in a
large part, is the struggle for
security against poverty.
In many parts of
AFRICA
ASIA
it is a battle against debt or
credit.

3. Ancient writings show that
credit and interest have been
mankind’s problems for more
than 4, 000 years.
Interest is considered rent paid for use of other
people’s money. However, the poor have always to
reckon with excessive rates and harsh term of interest
in their times of need. They have always been the
victims since earliest times.

4. Hammurabi as King
of Babylon included
Some laws on credit to promote the welfare of the
common people against high interest rates by few money-
lenders.

5. In England, concern for the miserable conditions of the
workers associated with the industrial revolution led to two
known experiments on cooperatives.
Robert Owen of Wales in his New Lanark Mill
community and
William King of Brighton in his writings
maintained that
“individual competition is an evil which does not benefit
the people.”

6. They advocated that cooperation is needed to achieve
results that will benefit all. The other experiment
which reached more people and had more success and
lasting influence was the
Rochdale Cooperative Store in 1844.

7. Rochdale Equitable Pioneers Society - The
industrial Revolution completely changed the
lives of people living in Europe. Together with
progress, it brought misery. Many left the
countryside to work in factories for long hours
with little pay. There was no state help, no
sickness benefit and no free education. Among
these exploited were children who worked long
hours in the factories instead of going to
school. Soon there was famine. In history this
was often referred to as the
Hungry Forties(1840’s).

8. It was at this time that a group of 28 people met together to
discuss what they could do to ease their suffering. It was
Saturday afternoon in 1843 in the town of Rochdale, England.
One member of the group, Charles Howarth, suggested that
each of them save two dimes a week and use their savings to
start a little store of their own. They could buy their goods
cheaper at whole sale prices. Someone objected by pointing
out that it had been tried but failed. Further analysing the
problem, they discovered that previous ventures failed
because customers were allowed to buy goods on credit. Most
often they could not pay their debts so that time came when
the store had to close for lack of money to pay whole sale for
goods ordered. To solve the problem, there was a suggestion
to make a rule of paying cash for everything bought. Then they
will always have cash to pay the wholesale.

10. After defeating Spain in 1898, the United States
acquired the Philippines as a colonial territory. In
introducing western civilization to the country, the
United States included the idea of credit unions.
In the fact, Edward Filene’s first thought after
observing Credit Unions in India in 1907, was to
introduce it to the Philippines which was a newly
acquired Asian territory of the USA. Later,
missionaries to the by succeeded in introducing
the movement.

11. The Vigan Credit Union
which was organized in
1938 by Rev. Allen Huber,
a Protestant missionary,
was a proof of this. He
organized over 30 Credit
Unions before he and his
wife were taken prisoners
by the Japanese in World
War II.

12. Even before the advent of
missionaries in the Philippines
several attempts were made by
the Filipinos to introduce Credit
Unions to their fellowmen.
Among them was Dr. Jose Rizal
who must have seen them work
during his travel in Europe. He
tried to introduce it in Dapitan
when he was exiled by the
Spanish government.

13. In 1907, Governor Teodoro Sandiko of
Bulacan drafted a bill to organize Credit
Unions patterned after those of Raiffeisen’s.
Presented 1908 by Rep. Alberto Baretto of Zambales

14. it was approved by the Philippine Assembly (Lower
House of the Legislature) but failed to get the
approval of the Philippine Commission (Upper
body of the Legislature).
The second attempt to institutionalize rural credit
cooperatives was through Act. No. 2508 it met
success for it was passed in both Houses of the
Philippine Legislature. However, lack of
cooperative education and training resulted in its
poor implementation.

15. In 1952, the Agricultural Credit and
Cooperative Financing Administration
(ACCFA) were created by Republic Act
821 to the Agricultural Credit
Administration (ACA) in taking over
ACCFA’s functions reported that as of
700 Farmers Cooperative Marketing
Associations (FACOMAS) that ACCFA
organized, only 120 were operating.
Republic Act No. 2023 enacted in 1957
sought to promote, organize and
supervise all types of non-agricultural
cooperatives. Records, however, showed
that in 1971, of the total registered 4673
cooperatives only 633 were reported
active.

16. All the sad experiences on
cooperatives were due to a large
extent to insufficient cooperative
education and experience and
the lower standard of living
caused by the war. The advent of
Martial Law in the country in
September, 1972 sought to
remedy the situation.

17. Presidential Decree 175 entitled “Strengthening the
Cooperative Movement’ provided the basis for a “sound
and systematic program’. It sought to make cooperative a
means of affecting income redistribution so that they were
tied up with the land reform program. It required
attitudinal change by emphasizing learning, discipline, and
saving. Believing that cooperatives should be started by
the mass base, the then Bureau of Cooperatives
introduced the Samahang Nayon Stage. Only after
meeting the requirements of at least 250 members and
pooled savings in shares worth at least P25 000 000.00 can
the Samahang Nayon be registered as a Kilusang Bayan or
a full-fledged cooperative.

18. As of December, 1974, the cooperatives development
program had reached 71 out of the 73 target provinces. It
covered 22, 808 barrios with a total collection in shares
and savings of P23 803 251. 05. The average membership
per Samahang Nayon was 46 with an average collection of
p1 952.67.
The cooperatives program included the establishment of
the following development projects.
• Cooperative Insurance System of the Philippine (CISP)
•Area Marketing Cooperatives (AMC)
•National Publishing Cooperative (NPC)
•Cooperative Rural Bank (CRB)
• Cooperative Marketing System of the Philippines (CMSP)

19. Since 1915 (Republic Act 2508 providing for Agricultural
Credit Cooperative Associations), many laws have been
passed including P.D. 175 in 1973. On March 10, 1990,
Pres. Corazon C. Aquino signed into law R.A. 6938 – the
New Cooperative Code of the Philippines and R.A. 6939 –
The Act Creating the Cooperative Development Authority
(CDA).
It was hoped that the enactment of these new laws would
pave the way for the accelerated growth and development
of Cooperatives in the Philippines. The new laws simplified
and synchronized the registration and administration of
cooperatives of all types.

20. Credit Unions were born of adversity
amidst an atmosphere of extreme poverty
in Europe. Just who started them is vague.
It is believed that in France, Buchez,
Proudhon, and Louis Blanc as early as
1796, in their discussion first evolved the
cooperative idea.

21. A cooperative federation is formed
primarily to engage in business
needed by its member cooperatives.
Membership in a federation requires
primary cooperatives to invest or give
capital contribution to be used by the
federation in its business operations.
Members of a federation equitably
receive share of the net surplus based
on their transactions or economic
participation.

22. A cooperative union engages in non
business or non-surplus
generating services that are needed
to build the institutional capability of
cooperatives and to strengthen the
movement in general. Examples of
these services are representation of
members in various for a, advocacy
work, information dissemination,
research, education, publication and
networking. A union may raise funds
from private and government donors.

23. What are
COOPERATIVES?

24. COOPERATIVE
A CO-OPERATIVE is an
autonomous association of persons
united voluntarily to meet their
common economic, social, and
cultural needs and aspirations
through a jointly-owed and
democratically-controlled enterprise.

25. Biblical Foundation of
Cooperatives
Acts 4:32-34
“All the believers were one in heart and
mind. No one claimed that any of his
possessions was his own, but they shared
everything they had. 33 with great power
and apostles continued to testify to the
resurrection of the Lord Jesus and much
grace was upon them all. 34 There were no
needy persons among upon them. From t
time to time those who owned lands or
houses sold them, brought the money from
the sales and put it at the apostle’s feet
and it was distributed to anyone as he had
need”

26. Main characteristics of
Coop Enterprise
Owned and controlled
by members who use
its services
(identity of owner &user)
Has both economic
and social purpose

27. DISTINGUISHING COOPS FROM
OTHER BUSINESS
COOPS OTHER BUSINESS
Main purpose is to provide Main purpose is to make
service & savings to profit for investors
members.
Essentially a union of capital
Essentially union of persons.
Control is based on
Control is democratic; each number of voting shares
member has one vote
Ownership in the hands
Ownership in the hands of of investors
members who use the service
Surplus allocated in
Surplus refunded to proportion to investment
members in proportion to Shares may be freely traded
& fluctuate in value

28. PHILOSOPHY
“Not for PROFIT not for
CHARITY but for SERVICE”

29. Section 12
Constitution and
By-Laws
Services over and above profit shall be
overriding consideration of the
cooperative in the pursuit of its goals
and in the operation of its business.

30. ANCHORS OF DECISION
IN MAKING COOPERATIVES
International Coop-Alliance
Principles and Practices
RA 6938
Government
Regulations
CDA/DOF Manual of Regulations
•Dole
•SSS/Philhealth
Art of Cooperation/Constitution and •LGU-Permits
•HDMF
By-Laws
•BIR-Taxation
Coop Policies and Procedures
Rules and Regulations

31. Membership Control. Subject to
provisions of RA 6938 and the
rules and regulations prescribed by
the authority, the final decision in the
management and administration of
the affairs of the cooperative is vested
in the General Assembly.
GENERAL ASSEMBLY. The General Assembly of
the cooperative is composed of all the members
entitled to vote duly assembled and constituting a
quorum. In the case of cooperatives with numerous
and dispersed membership, the general assembly
may be composed of delegates elected by each
sector, chapter or district of the cooperative in
accordance with the rules and regulations of the
authority.

32. Subject to RA 6938, relevant rules
GENERAL and regulations, the GA is the
ASSEMBLY supreme body where all authorities
emanate from
ETHICS MEDIATIO/ BOARD OF ELECTION CREDIT
AUDIT
CONCILIATION
COMMITTEE COMMITTEE DIRECTORS
Sets the
COMMITTEE COMMITTEE
Conducts Prepares for
Decide intra- strategic Processes and
financial, and facilitates decides on loan
management, cooperative direction and
the conduct of application*
property and disputes, sets formulates Applicable for coups
election
social audit policies with credit services*
Prepares minutes In-charge of overall
and safe keeps of financial
SECRETARY TREASURER management of the
official
documents coop and acts as
chief financial
officer
Performs study EDUCATION AND
SPECIAL Plans and
function for the MEMBERSHIP
BOD Ad Hoc COMMITTEE COMMITTEE
implement s
education and
training programs
Manages the day- GENERAL
to-day operations MANAGER
Performs specific
MANAGEMENT tasks related to the
STAFF day-to-day
operations

33. UNIQUENESS OF COOP AS BUSINESS
ENTERPRISE
1. Big Business
Those Who Own Those Who Those Who Use
Control
Investors Management Costumers
2. Small Scale Business
Those Who Own and Those Who Use
Control
3. Cooperatives
The same body of people who own, control
and use the service

34. • Illustrative Examples
Owners Controllers Costumers
Corporation
e.g. San Stockholders Management General Public
Miguel
Corporation
Variety Store
e.g. Nana's Owner [Nena] Owner [Nena] General Public
Sari-sari store
Member thru the
GA elect BOD and
Cooperative Member Committees who
Member
manages the
coop

35. Coops Do All
Types of
Economic
Activities
Financial services
retail, insurance, agricultural production &
marketing, industrial production, fisheries,
dairy, housing, transport, utilities
(electricity, water, gas, etc.), travel, other
services.

36. New generation coops
medical, child, care, social
care, funeral, tourism, sports,
schools, orchestras, etc.

37. TYPES OF COOPERATIVES
Credit Cooperative is
one which promote thrift
among its members and
creates funds in order to
grant loan for productive
and provident purposes;
Consumers cooperative is one of
the primary purpose of which is to
procure and distribute commodities
to members and non members;

38. Producers Cooperative is
one that undertakes joint
production whether
agricultural or industrial.
Marketing Cooperative is
one which engages in the
supply of production inputs
to members and markets
their products;
Service Cooperative is one which
engages in medical and dental care,
hospitalization, transportation, insurance,
housing, labor, electric light and power,
communication and other services;

39. Multipurpose Cooperative
is one which combines two or
more of the business
activities of these different
types of cooperatives.
Workers Cooperative is a
type of cooperative which
creates work through
collective self-employment

40. PRINCIPLES AND
PRACTICES
PRINCIPLES
an embodiment of
ideas that determinate
the essential
characteristics of an
organization,
distinguishing it from
all other
organizations.

41. PRACTICES
a specific and practical
application of a principle
developed and agreed on
among co-operators of a
given country.
Practices are in accordance
with unique conditions and
circumstances, and thus
may vary as to both time
and space. In no situation
however should a practice
run counter to the essence
of a given principle.

42. CO-OP VALUES
Co-operatives are based on the values of
self-help, self-responsibility, democracy,
equality, equity, and solidarity.
In the tradition of their founders, co-
operative members believe in the ethical
values of honesty, openness, social
responsibility and caring for others:

43. 1.Self-help
- the act of helping of improving
yourself without relying on
anyone else
-All people can and should strive
to control their own destiny
-Full individual development can
take place only in association
with others .
-Members need to help
themselves

44. 2. Self-responsibility
(fact of being responsible)
Members have
responsibility :
-for the establishment and
continuing vitality their co-
operative
-for ensuring that their co-
operative remains
independent
-of promoting their co-
operative among their
families, friends and
acquaintances

45. 3. Democracy
(rule by-for-of the people or
political authority)
-includes considerations of
rights and responsibilities of
members
-participation in the
decision-making in the
general assembly, members/
ownership meeting

46. 4. Equality 5. Equity
(likeness or
(the state, quality, or
sameness in quality,
ideal of being just,
power, status or degree)
impartial, and fair)
-members have rights of
participation, information, -Members should be
a right to be heard, and equitably rewarded
making decisions. for their participation
in the co-operative,
through:
-Patronage dividends
-allocations to capital
reserves in their name
-reduction in charges

47. 6. Solidarity
(a union of interests or purposes or
sympathies among members of a group,
interdependence)
-
means that co-operators
and co-operatives stand
together
-members have the
responsibility to ensure
that all members are
treated as fairly as
possible

48. 7. Honesty
(quality of being honest; integrity)
-Honest dealings with members such
as honest measurements, high
quality, fair prices and calculation of
interest payments.
-coops are distinguished in the
market-place partly because they
insist on honest measurements, high
quality, and fair prices.
-co-operatives have aspired honest
dealings with their members, which
in turn has led to honest dealings
with non-members

49. 8. Openness
(an attitude of ready accessibility, not
secretive)
-reports to the General -regularly reveals to their
membership, the public
Assembly
and government
-conducts consultation
important information
-accepts suggestions
on their operations

50. 9. Social Responsibility
(the idea that businesses should not function
immorally, but instead should contribute to the
welfare of their communities)
-they are open to the members of the community, and
they have commitment to assist individuals in helping
themselves
-concerned about the health
of individuals within the
community.
-they therefore, have an
obligation to strive to be
socially responsible “in all
their activities”

51. 10. Caring for others
(assisting/helping other coops)
-within their financial
capacity to do so, many
cooperatives have made
significant contributions of
human and financial
resources to their
communities.
-big coops have provided
extensive assistance to the
growth of cooperatives
throughout the developing
world.

52. PRINCIPLES
1. Voluntary and Open Membership
2. Democratic Member Control
3. Member Economic Participation
4. Autonomy and Independence
5. Education, Training and Information
6. Co-operation Among Co-operatives
7. Concern for Community

53. First Principle: Open and Voluntary
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.
Practices:
-No compulsory membership
-No discrimination against any person on
account of religion, race or political belief.

54. Second Principle:
Co-operatives 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 Co-
operatives members have equal voting rights ( one member, one vote)
and Co-operatives at other levels are organized in a democratic
manner.
Practices:
-One man, one vote & No proxy voting
-General assembly as supreme authority
-Decision-making by majority vote
-Direct or indirect participation of all members in the control of the
organization (i.e. through the election of officers, board of directors, audit
committee, other committees).

55. Third Principle: Member
Economic Participation
Members contribute equitability to, and
democratically control, the capital of their Co-
operative. At least part of that capital is usually the
common property of the co-operative. They 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
the co-operative, possibly by setting up reserves , part
of which at least would be indivisible; benefiting
members in proportion to their transactions with the
co-operative, and supporting other activities approved
by the membership.

56. Practices:
-Limited interest on share capital
-Limitation of individual share
contribution, not more than 20% of
total capital
-Provision of reserve funds
-Provision of reserves for the
development of the coop
-Distribution of interest on Capital
and Patronage refund

57. Fourth Principle Autonomy and
Independence
Co-operatives are autonomous, self-help organizations
controlled by their members. If they enter into
agreement with other organizations, including
governments, or raise capital from external sources,
they do so on terms that ensure democratic control of
their members and maintain their co-opreative
autonomy.

58. Practices:
-The General Assembly is the coop’s supreme
authority.
-Leadership is confined to the coop members.
-The control and leadership is through members
democratically -elected to high responsibilities and
the independence of the coop remains even when
the coop becomes involved with other organizations
such as funding agencies.

59. Fifth Principle: Education,
Training and Information
Co-operatives provide
education and training for
their members, elected
representatives, managers
and employees so that 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.

60. Practices:
-Appointment of an education committee
-Provision of an education fund out of net
income or from gross income
-Requirements of pre-membership education
before admission
-Ownership or membership meetings
-Continuous training of officers and staff.

61. Sixth Principle: Cooperation Among
Cooperatives
Cooperatives serve their members most effectively and
strengthen the co-operative movement by working
together through local, national, regional and
international structures.
Practices:
-Membership in secondary and tertiary organization
-Participation in economic integration projects, like
central fund, inter-coop trade, cooperative insurance,
local, national, regional and international linkages.

62. Seventh Principle:
Co-operatives work for the sustainable
development of their communities through
policies accepted by their members.
Practice:
Members ensure that the policies they make
will benefit the whole cooperative community
(work towards improving their living
standards based on their social values without
compromising the resources available for
future generations)

63. Koop Aralan (overview)
There is one reality in cooperatives that
many of us already know but which is
not given much importance: Many rank
and file staffs have no or very little
training on cooperatives.
This often results in low morale, low commitment of the staff
while performing their jobs in the cooperative. To address this, the
Coop Institute has developed the KoopAralan program. This project
aims to provide training to the coops’ rank and file, who are mostly
left out of training programs (most programs are directed to
managers and elected officers). These training programs will be
delivered through distance education, reaching a wide audience
simultaneously across the country.
The education materials of KoopAralan are in the form of easy-to-
read booklets. Organized in a series, these booklets are meant to
increase and broaden the staff’s knowledge of the coop enterprise
and address work-related issues.

64. Specifically, the KoopAralan:
Equips enrolees with working knowledge in
coop. Modules are divided into sub-modules:
Time and reader friendly
Can be completed on weekly basis
Institutionalizes staff training with merit
system Is part of staff development program
Is short-term, ladderized system of education
Is evidenced by a certificate of Completion to
be issued by Coop Institute

65. Features
-A distance education course designed to
imbue the staff with coop knowledge needed
to make them appreciate and value their work
in the cooperative.
-This is a program designed to institutionalize
staff training at the coop level, involving the
Human Resource staff and the coop Training
Coordinator as the lead mentors.
-This can be considered a foundation for a long-
term staff development program in the coop.
-It is short-term, ladderized system of
education.

66. -Modules are divided into sub-modules which is
time friendly to enrolees as they can be
read/absorbed on a weekly basis.
-The modules can be completed within two to
three months depending on the pace of students.
-After each module, a test will be given to the
enrollee to ascertain if the enrollee is ready to
proceed to the next module; passers shall be
given a certificate of module completion issued by
the Coop Institute.
-The certificate of course completion can be used
as basis for staff evaluation as it can carry
additional merits for career advancement,
personal growth, promotion and salary increase.
-The Coop Institute will provide the participating
coop with the grades of its enrollees.

67. PROCEDURES