Cooperatives in the Philippines - How to Join and Invest Your Future in It

The Don Galo Cooperative of Paranaque, Manila, Philippines sponsored a Cooperative Education Outreach Program last October 15, 2011. It's part of the series of basic coop orientation seminar being held this year in order to orient residents of the barangay on how cooperative operates.

I was one of the participants of the said event. I was able to know how cooperative started in Europe during the Industrial Revolution (early 1800s). It became the turning point on how workers were affected by the sudden displacement of labor from rural to city dwellings. Capitalists got richer while the workers were paid poorly.

As the seminar progressed, we were able to know the men behind the idea of cooperativism in England; whereas, Robert Owem and William King were among the twenty eight cotton workers who founded the Rochdale Equitable Pioneer Society.

The Rochdale cooperative concentrated first on selling the right weight or kilos of the prime commodities, such as flour, oatmeal, sugar and butter until they expanded into what they are now.

The values and principles of the cooperative is about honesty and respect. The customer-member owns the cooperative. It's about self-help or mutual help among the members.

Cooperatives spread into Germany, Quebec, USA , Philippines and the rest of the world.

Dr. Jose P. Rizal, the country's national hero started a supply and marketing cooperative in Dapitan , Zamboanga del Norte in 1896. It is where he was exiled during the Spanish regime. He utilized his knowledge and ideas he gathered from his travels in Europe in order to put up the first-ever cooperative in the Philippines.

October is the Cooperative Month this year. The principle of cooperativism spread in Asia, especially in Japan and South Korea in order to combat economic crisis.

In the Philippines, the full implementation of cooperatives started with bayanihan or sakada system. Bayanihan means helping one another in a unified voluntary action. The most vivid action is when a nipa hut is going to be transferred to another location. Sakada is a term of cooperative-type of action during rice harvest, wherein farmers and helpers are going to help the farm owner harvest his rice without payment. In return, he or she will also pay back the same action of his/her neighbors.

In 1960s, parish-based cooperatives sprung. Farmers Marketing Cooperatives also dominated the countryside in order to help farmers sell their harvest at the right price.

Many types of cooperative continue to be established in the archipelago. Cooperatives can be:

Types of Cooperative

• credit
• consumers coop
• producers and marketing coop
• multi-purpose
• agrarian reform
• coop bank
• healthcare
• housing coop
• insurance
• transport
• electric coop

There's a common bond of interest when joining a cooperative. It can be the same community, same job or organization.

Values and Spirit of Cooperativism

It includes:

1. Self-Help
2. Self-Responsibility
3. Equity
4. Democracy
5. Equality
6. Honesty
7. Openness
8. Caring for Others
9. Social Responsibility
10. Solidarity

In cooperative, we are the owners and at the same time, we are the owners.

Since the dawn of Rochdale Coop in England, the following principles never changed. This set of important values in organizing and running a cooperative is still the basis of establishing a successful organization.

In cooperativism, running a business is for the benefit of every member.

1. Open & Voluntary Membership - It is non-discriminatory. Everyone can be a member of a cooperative.
2. Democratic Member Control - Members are co-owners. Each member can only vote once when election of board of directors is conducted. The vote of an absentee will never be counted.
3. Member Economic Participation - There's a shared capital where a dividend of each member can be returned to them (70 %) once they terminate their membership. There's also a patronage refund each year as the cooperative grows.
4. Autonomy and Independence - It has its own constitution and by-laws that serves as guide for a good governance.
5. Education, Training and Information - A successful cooperative should impart additional knowledge to all members by way of summer classes in home businesses and the like.
6. Cooperation among Coops - There's a saying that: "No man is an island." It also applies to the principles of cooperativism in order to exist successfully.
7. Concern for Community - Cooperative means the community itself. Its about people helping one another in order to be a successful group or entity.