Rochdale PioneersIn modern form, cooperatives date from 1844, then a group of 28 impoverished weavers of Rochdale, England, founded a mutual-aid society, called the Rochdale Society of Equitable Pioneers.
Robert OwenOWEN first cooperative theorist and credited with inspiring the Rochdale Pioneers, who in 1844 began the cooperative movement at Rochdale, Lancashire
Although Owen inspired the cooperative movement, others –such as– Dr William King took his ideas and made them more workable and practical.
King believed in starting small, and realized that the working classes would need to set up cooperatives for themselves, so he saw his role as one of instruction.
Dr. William King (1786–1865)
Cooperatives were borne out of the free market economy and the many failures and injustices it has generated. The very first documented cooperative was in fact a reaction to the abuses of capitalism and it can be traced back to 1844 in Rochdale, England where a group of 28 weavers (27 males and 1 female) formed the Rochdale Society of Equitable Pioneers October 24,1844.
The Rochdale Pioneers Museum is housed in the building where the Rochdale Equitable Pioneers Society started trading on 21 December 1844. The museum is regarded as the birthplace of the modern co-operative movement
Robert Owen Scotland
William King UK
The Rochdale Pioneers Great Britain
Charles Fourier France
Charles Gide France
Beatrice Webb UK
Friedrich Raiffeisen Germany
Key Theorists
Cooperatives are playing an increasingly important role worldwide in facilitating job creation, economic growth and social development. Ranging from small-scale to multi-million dollar businesses across the globe;
Cooperatives are now venturing into new fields of activity, such as information and communication technology, tourism and cultural industries.
Global Significance of Cooperatives
They have historically emerged out of the need to provide goods and services not accessible from the public sector and conventional businesses. As such needs expand and become increasingly complex, cooperatives find more space to meet these needs, providing services while advancing livelihoods and creating jobs in the process.
Cooperatives exist in all sectors of the economy around the world, and while they are commercial organizations, they operate within a broader set of values and principles, not only aiming to generate profit.
7 Billion (2011) According to the United Nations, world population reached 7 Billion on October 31, 2011. The US Census Bureau made a lower estimate, for which the 7 billion mark was only reached on March 12, 2012.
The country with the largest number of individual members indirectly represented by the Alliance is the United States with 256 million members. In Asia, India following next behind the US with 93.7 million individual members. And then Japan with 77 million individual members.
The fourth largest number of members is in Iran with 36.9 million individual members.
All in all, five of the top ten countries, by membership, that the Alliance represents -are in Asia.
256 M
93.7 M
77 M
36.9 M
The world’s largest 300 co-operatives and
mutuals have grown their turnover by 7.20
per cent to USD $2.53tn according to the
2016 edition of the World Cooperative
Monitor WCM)
https://www.uk.coop/newsroom/worlds-top-300-co-operatives-increase-
turnover-253-trillion
Employment
Cooperation in a changing
world of work: Exploring the
role of cooperatives in the
future of work
Insurance & Mutuals 39%; Agri and food industries 32%; wholesale & retail trade 19%; Banking and Financial services 6%; Industry and Utilities 2%; Health & social care 1%
Hybrid Cooperatives
Hybrid cooperatives are defined by the ICA as “a cooperative that has issued equity shares to non member investors” (ICA 2015, p. 100). We here consider a broader approach, as a substantial challenge for cooperatives is the discussions around “hybridized forms of governance, where there may seem to be an appearance of autonomy, whilst control is continually conferred to the same actors” (Roelants et al. 2009, p. 73).
Isomorphization has two distinctive features:
the alignment of cooperatives on capitalist
enterprises and the process which concerns
enterprises formally constituted and incorporated in
a legal form different from cooperative status that
tend to operate according to some cooperative
principles. According to the ICA, it is important for
cooperatives themselves to resist any tendency to
mimic investor-owned enterprises in operational,
management and governance practices which do
not reflect the distinctiveness of cooperatives”
Isomorphization
A similar idea was pointed out as the
“degeneration thesis”: market pressures
tend, over the course of time, to lead to
cooperatives becoming similar to other
kinds of enterprise, particularly capitalist
enterprise (Vienney 1980; Cornforth et al.
1988; Sommerville 2007).
Isomorphization
False CooperativeAs they do not voluntarily comply with the
cooperative principles or do not follow the principles at all, false cooperatives are entities which try to elude more restrictive rules without necessarily being moved by any cooperative ideal. The issue of what is also called “pseudo cooperatives” (Roelants et al. 2014, p. 111) is closely related to labour, in particular the compliance with labour standards.
False CooperativeThe ILO recommendation No. 193 emphasises
the need to “ensure that cooperatives are not set up for, or used for, non-compliance with labour law, or used to establish disguised labour relationships”. Hence, national policies are invited to ensure that labour legislation is applied in all cooperatives and combat pseudo cooperatives that violate workers’ rights.
Rural Credit Bill
1907 1915Rural Credit ActGovernment
Initiated
1919
Grant loans to Credit Associations
1927Coop Marketing LawsPA 3425
1938
Strengthen Cooperatives
P.A. 3872
PA 3425 was
amended by PA 3872 provided incorporation of FACOMA
Early Cooperative Efforts (1906-1940)
1938Church Initiated Credit
Union in Vigan
P.A. 3425,
Common Wealth Act 565
Gen, Basic Cooperative
Law
1940Government Initiated
War Years (1941-45)
The Japanese Military Administrative used cooperatives
primarily as outlets for consumer goods and as mechanisms
to encourage local food production. Virtually all of the
estimated 5,000 cooperatives established during this period
were destroyed during the ensuing liberation.
Reconstruction Period 1945-1950
National Cooperative Administration
On November 1, 1945 the
National Assembly re-enacted
(C.A. 713) the National
Cooperatives Administration
(NCA).
In October 1947, Republic
Act No. 51 resulted in the
conversion of the NCA into
the National Cooperatives
and Small Business
Corporation (NCSBC).
in November 1950, the National Cooperatives and
Small Business Corporation (NCSBC) was abolished
and replaced by the Cooperatives Administration
Office (CAO), which operated under the Department
of Commerce and Industry (Executive Order No.
364, Series of 1950).
1960
1945
1947
Expansion of Cooperativism inthe Philippines (1950-1969)
1952
RA 2023Non AgriculturalCooperative law
In 1969 the Code of
Agrarian Reform
(Rep Act No. 6389
1952
RA 821 Farmers Cooperative Marketing
Government Initiated
1963
Philippine National
Cooperative Bank
Church Sponsored
1967
RA No. 821 known asthe Agricultural Credit and Credit Cooperative Financing Act
1952
Philippines (R.A 6389) Code of Agrarian Reform
Expansion of Cooperativism inthe Philippines (1950-1969)
1952
RA 2023Non AgriculturalCooperative law
In 1969 the Code of
Agrarian Reform
(Rep Act No. 6389
1952
RA 821 Farmers Cooperative MarketingGovernment
Initiated
RA No. 821 known asthe Agricultural Credit and Credit Cooperative Financing Act
1952
The Rural Banking Act (R.A.
720), passed in June of 1952,
Philippine National Cooperative Bank
Republic Act 821 also
established the Agricultural
Credit and Cooperative
Financing Administration
(ACCFA), and transferred to it,
from the CAO, responsibility for
the promotion, organization and
supervision of FACOMAs.
1953
In 1963, the Revised Barrio
Charter Act allowed for the
promotion of cooperatives at the
barrio-level. The Presidential
Arm on Community
Development (PACD) assisted
in helping to develop these
barrio cooperatives.
In June 1957, Congress
enacted a major piece of
cooperative legislation, known
as Philippine Non-Agricultural
Cooperatives (R.A. 2023). This
fundamental Act law governed
all types of nonagricultural
cooperatives
Expansion of Cooperativism inthe Philippines (1950-1969)
The Electrification Administration in June
Act (R.A. 2717) was passed into law
1960. The law provided for the supply
of cheap and dependable electric power
to encourage agricultural and industrial
development. also It empowered the
Electrification Administration (created by
the law)
In 1962 Congress passed
Republic Act No. 3470, known as
the National Industry Development
Act. This Law encouraged the
development of producers'
marketing cooperatives within the
country.
Expansion of Cooperativism inthe Philippines (1950-1969)
In July 1969, Republic Act No.
6038 created the National
Electrification Administration,
charging it with the responsibility for
developIng rural electrification
throughout the country utilizing rural
electric cooperatives, which in turn it
was responsible for organizing,
registering and supervising.
Also in 1963, the enactment of
the Agricultural Land Reform
Code (R.A. 7 3844) led to the
creation of the Land Authority,
Land Bank, Agricultural
Productivity Commission, and
reorganized the ACCFA into the
Agricultural Credit Administration
(ACA).
Social and Economic
Malaise (1969-1973)
In August 1969 strengthening of cooperatives as
strategic vehicles for national development. President
Marcos declared, "we shall need to elevate
cooperatives into an ideology ....an ideology of change
and development; an ideology of social reform and
human reformation."
Presidential Decree No. 27 was issued in October
1972 declaring land reform in rice and corn areas and
requiring farmer beneficiaries to join barrio
cooperatives which were to be established and were to
serve as guarantors for land payments under the
reform.
Cooperatives Under the 1973
Constitution (1973-1986)
On April 14, 1973 President Marcos issued a decree on
"Strengthening the Cooperative Movement" (P.D. 175).
Presidential Decree No. 175 declared it to be the "policy
of the state to foster the creation and growth of
cooperatives as a means of increasing income and
purchasing power of the low-income sector of the
population in order to attain a more equitable distribution
of income and wealth."
On July 9, 1973, Letter of Implementation President No. 23 was
issued by the Strengthening which set forth the regulations for
implementing the decree on the Cooperative Movement. In all,
65 separate regulations were contained in this instruction,
includ
P.D. No. 175 - credit, consumer, service,
marketing, producer, AMC, CRB, SN and
other cooperatives
P.D. No. 269 - electric cooperatives 3)
P.D. no. 775 - sugar cooperatives 4)
Executive Order No. 898 - transport
cooperatives
• Amended the Coop Code
promulgated in 1990 (RA6938);
• Discussed in four (4) Congresses
(starting the 11th Congress up to
the 14th) spanning over ten (10)
years;
• Approved by the Bicameral
Committee on November 18,2008;
• Signed into law last February 17,
2009
Current Status
Government Initiated
RA 9520
REVISED IRR OF R.A. 9520 PROMULGATED BY CDA FINALLY CONFIRMED BY THE JOCC
The Cooperative Development Authority scored a landmark victory with the signing of the Revised Rules and Regulations Implementing Certain and Special Provisions (IRR) of the Philippine Cooperative Code of 2008, otherwise known as R.A. 9520, on March 18, 2015 by Senator Manuel M. Lapid, Chair, Senate Committee on Cooperatives, and Cong. Cresente C. Paez, Chair, House Committee on Cooperatives, at the Legend Hotel, Manila.
Joint Oversight on Coop Committee
Co-operatives have been seen for a long time as important economic actors in the Philippines, having recently celebrated their centennial (1915-2015)
Co-operatives are well recognised in law; their promotion by a state agency was written into the constitution in 1987, and they have their own up to date Cooperative Code, amended in 2008.
They have been the ‘policy instrument of the government in promoting social justice and economic development’, which means they have had favoured status in economic and social policy. As in other Asian countries where governments have sponsored a large co-operative sector (Castillo and Castillo (2017) p1
Based on AFS FY 2015
12
NCR
4
3
3
3
2
2
3
2
1
6
3
1
CAR 31 42 33 34 256 27 38 29 1
10 611 312 1
NCR 11CARAGAARMM 44
Category of Cooperatives
434 (4.6%) Large1455 (15.4%) Medium2656 (28.2%) Small4887 (51.8%) Micro9432 (100%)
Total Assets by Classification per Region
2015 data of encoded reports
Creating Co-operative Economics" focuses on the concept of “new economy”
Cooperatives: Part of the Solution