History of the Co-Operative Movement

1. Jo B. Bitonio
CDA Dagupan Extension Office

2. Rochdale Pioneers
In 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.

3. Robert Owen
OWEN first
cooperative theorist
and credited with
inspiring the
Rochdale Pioneers,
who in 1844 began
the cooperative
movement at
Rochdale, Lancashire

4. 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)

5. It was here
that the
first co-
operative
store was
opened.

6. 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.

7. 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

8. 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

9. UK, France, Germany, Belgium, Austria, Italy, Denmark,
Finland, Norway, and Sweden.

11. 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

12. 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.

13. 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.

14. 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.

15. 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

16. 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

17. Employment
Cooperation in a changing
world of work: Exploring the
role of cooperatives in the
future of work

18. World Cooperative Movement
it is estimated that cooperatives
employ some 250 million people.

20. 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%

21. 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).

22. To the GDP of the world’s ninth
largest economy
Source: ICA:2010

23. 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

24. 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

25. False Cooperative
As 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.

26. False Cooperative
The 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.

27. Rural
Credit
Bill
1907 1915
Rural
Credit
ActGovernment
Initiated
1919
Grant loans to
Credit
Associations
1927
Coop
Marketing
Laws
PA 3425
1938
Strengthen
Cooperatives
P.A. 3872
PA 3425 was
amended by PA
3872 provided
incorporation of
FACOMA
Early Cooperative Efforts (1906-1940)
1938
Church
Initiated Credit
Union
in Vigan
P.A. 3425,

28. 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.

29. 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

30. Expansion of Cooperativism in
the Philippines (1950-1969)
1952
RA 2023
Non
Agricultural
Cooperative
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 as
the Agricultural
Credit and Credit
Cooperative
Financing Act
1952
Philippines (R.A
6389) Code of
Agrarian Reform

31. Expansion of Cooperativism in
the Philippines (1950-1969)
1952
RA 2023
Non
Agricultural
Cooperative
law
In 1969 the Code of
Agrarian Reform
(Rep Act No. 6389
1952
RA 821 Farmers
Cooperative MarketingGovernment
Initiated
RA No. 821 known as
the 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

32. 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 in
the 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.

33. Expansion of Cooperativism in
the 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).

34. 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.

35. 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

36. 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

37. • 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

38. 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

39. 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.

40. 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

41. 2017
14,000,000
Members
1.3487 %

42. Types of Coop
under the Code
19
MC created
additional 4
coops

43. Based on AFS FY 2015
12
NCR
4
3
3
3
2
2
3
2
1
6
3
1
CAR 3
1 4
2 3
3 3
4 2
5
6 2
7 3
8 2
9 1
10 6
11 3
12 1
NCR 11
CARAGA
ARMM 44

44. Category of Cooperatives
434 (4.6%) Large
1455 (15.4%) Medium
2656 (28.2%) Small
4887 (51.8%) Micro
9432 (100%)
Total Assets by Classification per Region
2015 data of encoded reports

45. Creating Co-operative Economics" focuses
on the concept of “new economy”
Cooperatives: Part of
the Solution

46. Change Agents
Ambassador, missionary,
transformer, steward
Role of CDS-IIs