IN SUPPORT OF PHILIPPINE COOPERATIVES

IN SUPPORT OF PHILIPPINE COOPERATIVES

Cooperatives are a powerful force for economic empowerment, social progress, and poverty reduction in the Philippines. As of the latest count, there are between 18,000 and 20,000 registered cooperatives in the country. These cooperatives fall under the jurisdiction of agencies like the Cooperative Development Authority (CDA), the Office of Transport Cooperatives (OTC), and the National Electrification Administration (NEA).

The CDA is responsible for registering both Single-Purpose Cooperatives (SPCs) and Multi-Purpose Cooperatives (MPCs). While SPCs serve a singular function, MPCs offer multiple services, benefiting members in diverse ways. It is in the best interest of SPCs to consider transitioning to MPC status, allowing them to expand their reach and impact. Although transport and electric cooperatives are typically SPCs, they too can broaden their services through innovations in Information and Communications Technology (ICT). By offering training, financing, and marketing services, these SPCs can operate more like MPCs, maximizing their value to members.

The Philippines should encourage the growth of more MPCs, as they provide a viable strategy for economic development. More MPCs mean more Filipinos can earn and save money—an effective grassroots approach to combating poverty. Cooperative members benefit by selling their goods and services within their own network and saving money through cooperative purchasing. Not only do they buy essential goods at lower costs, but they also receive patronage rebates and annual dividends.

Cooperatives also have the potential to form closed economic ecosystems. Many co-ops produce their own food and distribute it among their members, fostering self-sufficiency. Furthermore, cooperatives can significantly contribute to import reduction by producing locally made goods, including food products that would otherwise be imported.

One common concern is whether small cooperatives can compete with large supermarkets. The answer is a resounding yes! Cooperatives can provide fresher, locally sourced, and often cheaper products than big retail chains. By doing so, they not only create jobs but also foster economic inclusivity. And while cooperatives can compete with supermarkets, they can also co-exist, each catering to their respective customer bases.

To ensure the continued growth of cooperatives, it is essential to strengthen local governance support. According to the law, all local government units (LGUs) are required to establish cooperative development offices. There should be a system in place to monitor compliance with this mandate. Moreover, LGU cooperative offices should actively collaborate with LGU offices focused on small and medium enterprise (SME) development to align goals and share resources.

Another key aspect of cooperative growth is the role of federations such as the National Confederation of Cooperatives (NATCCO), which serves as the largest cooperative federation in the country. NATCCO provides crucial services, including training, financial assistance, and technology solutions, to its member cooperatives. Additionally, it is linked to the COOP-NATCCO Partylist, which represents cooperative interests in Congress, ensuring that pro-cooperative policies and legislation are advanced.

Housing cooperatives have also played a significant role in providing affordable housing solutions. Programs like the NATCCO Housing Cooperative Program and the Bahaynihan Program have successfully built sustainable housing projects in areas like Leyte, Iloilo, and Quezon City. These cooperatives are funded through a combination of member contributions, government programs (such as Pag-IBIG Fund and the National Housing Authority), partnerships with financial institutions, and international support.

The potential of cooperatives extends to many other sectors. In agriculture, cooperatives provide farmers with access to modern technology, financing, and direct market connections, reducing their reliance on middlemen. Meanwhile, in the insurance sector, cooperatives offer mutual benefits to members through shared-risk models, lowering costs while ensuring financial protection.

While not all cooperatives need to transition into MPCs, diversification presents a compelling advantage. MPCs can provide financial services, retail opportunities, agricultural support, and various livelihood programs—all under one entity. However, this transition requires proper management, financial resources, and leadership development.

Ultimately, cooperatives are a cornerstone of inclusive economic growth. They provide Filipinos with opportunities to generate income, lower their costs of living, and contribute to the country’s overall economic resilience. The challenge now is to create an enabling environment that supports cooperative growth, ensures proper governance, and promotes collaboration between cooperatives and local government agencies.

Let us continue to champion cooperatives and recognize their vital role in empowering Filipino communities. By strengthening the cooperative movement, we take a step toward a more self-sufficient, sustainable, and equitable future for all.

Ramon Ike V. Seneres, www.facebook.com/ike.seneres
iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

04-14-2025

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