1. Edwin Badu Rawlings Gbargaye
Discussant
SD302

2. “Cooperatives are great organizations
and they have better chances of
survival and thus have the potential to
help the world to come out of
economic crisis
Ivano Barberini (2009)
President of ICA

3. UN Declares 2012
International Year
of Cooperatives
highlighting the
contribution of
cooperatives to
economic
development, in
particular recognizing
their impact on
poverty reduction,
employment
generation and social
integration.

4. • The UN declaration also emphasizes a
few key areas of cooperative strength, one
of which is the credit union and banking
sector.
• Under the umbrella of the World
Council of Credit Union some 53,000-plus
credit unions serve over 185 million
members in 97 countries. According to
World Council statistics, total assets of
credit unions worldwide in 2008 climbed to
close to $1.2 trillion.

5. In Europe, the European
Association of Cooperative
Banks has 4,200 member banks
which collectively hold a 20 percent
market share of the banking market
and serve 160 million customers.

6. The UN designation also takes
note of the role of co-ops in agriculture
and rural electric production. In the
United States, the UN points out,
agricultural cooperatives account for
more than 80 percent of total milk
production, while 900 rural electric
cooperatives serve 37 million people
and own almost half of the electric
distribution lines in the country.

7. UN notes that co-ops also are
responsible for over 80 percent of total
milk production in Norway and New
Zealand; 71 per cent of fishery
production in South Korea; and 40 per
cent of overall agriculture production in
Brazil. In Bangladesh, rural electric
cooperatives serve 28 million people.

8. • The International Co-operative Alliance (ICA) is
the independent, nongovernmental association
that unites, represents and serves co-ops
worldwide. Founded in 1895, the ICA has 230
member organizations from 92 countries active
in all sectors of the economy. Together, these
co-ops represent more than 800 million people
worldwide
• ICA has also created a Global 300 list that
ranks the 300 largest co-ops worldwide, as well
as a second Developing 300 list that ranks the
300 largest co-ops in developing countries.

9. Key Theorists
• Robert Owen
• Dr. William King
• François-Marie- Charles Fourier
• Friedrich Wilhelm Raiffeisen

10. Key Theorists
Robert Owen is considered
the father of the cooperative
movement. His idea is to form
"villages of cooperation"
where workers would drag
themselves out of poverty by
growing their own food,
making their own clothes and
ultimately becoming self-
governing. He tried to form
such communities in Oriston in
Scotland.
1771-1858

11. 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 co-operatives for
themselves .
Dr William King
(1786–1865)

12. French social theorist. He
advocated a reconstruction of
society based on communal
associations of producers
known as phalanges
(phalanxes). His system
became known as Fourierism.
He felt that phalanges would
distribute wealth more
equitably than would
capitalism and that they
would contribute both to a
cooperative lifestyle and to
individual self-fulfillment
1772 - 1837
François-Marie- Charles Fourier

13. founder of the
German system of
agricultural co-
operative banks
Friedrich Wilhelm Raiffeisen
1818-1888),

14. A few poor weavers joined together to form the
Rochdale Equitable Pioneers Society at the
end of 1843. The Rochdale Pioneers, as they
became known, set out the Rochdale
Principles in 1844, which have been highly
influential throughout the cooperative
movement.
The successful example of cooperative business
provided by the Rochdale Society, which also
established between 1850 and 1855 a flour
mill, a shoe factory, and a textile plant, was
quickly emulated throughout the country
The Rochdale Pioneers

15.  By 1863 more than 400 British
cooperative associations, modelled
after the Rochdale Society, were in
operation. Thereafter the English
movement grew steadily,
becoming the model for similar
movements worldwide.

16. • The number of coops have
increased dramatically by 2004.
• ICA research has identified 286,560
coops in Europe alone out of which
37% are in agricultural; 26% are in
housing; 15.5% in labor; 6.6% in
consumer sector; 6.5% in the
financial sector; and 7.8% in other
sectors.

17. By the mid-20th century, it
comprised almost 2400
associations of all types.
The Cooperative Wholesale
Society is the largest
distributive agency in
England.

18. Listed among the Global 300 are some of
the world's largest businesses. The
Global 300 co-ops had total revenue of
nearly $1 trillion in 2004. If they were a
nation, these 300 co-ops would have
the 10th largest gross domestic product
in the world, ranking just behind
Canada.

19. The United States is home to more of
the Global 300 than any other nation,
with 62 (or nearly 20 percent of the
total list). It is followed by France, with
45, then Germany with 33 and Italy
with 28 co-ops on the list.
Cooperatives in these four countries
represent more than 50 percent of the
Global 300.

20. ZEN-NOH-the National
Federation of Agricultural
Cooperative Associations is
Japan's federation of
agricultural co-ops and is the
largest co-op organization in
the world. Of the 3 million
farm households in Japan,
most belong to one of ZEN-
NOH's 1,010 primary-level co-
ops. The co-op had total sales
of $56.3 billion in 2003 and
employs about 12,500 people.
Japan : World’s Largest Co-op Organization

21. • In Norway: 99% of milk
production is through coops and
consumer coops cater to 25% of
the market share.
• In Finland: 97% of dairy
production and meat products
50% of egg output, 34% of
forestry products and 34% of total
deposits in banks are through
coops.

22. • Nestle
• Dean Food
• Dairy Farmers of America - Coop
• Danone
• Fonferra - Coop
• Kraft
• Land o’Lakes - Coop
• Lactalis
• Aria Foods - Coop
• Meilli Dairies
• Friesland Foods - Coop
• Uniliver
• Morinaga Milk Industries
• Parmalat
• Campina - Coop
• Bongrain
• Human Milchunion - Coop
• Saputo
• Nordmilch - Coop
• Sodiaal - Coop
World’s dairy top 20 includes 8 co-operatives

23. • In Holland: 95% of Dutch flour
sales are by coops; Sweden :
66% of daycare centers are run
by coops
• Germany: 50% of German farm
sector is controlled by coops
• Switzerland: coops are the
second largest employer

24. • France: the fifth and the sixth
largest banks owners are coops.
• Colombia: Saludcoop health coop is
the 2nd largest employer caring for
25% of the population
• Israel: World’s 5 largest producers
of drip irrigation equipment are
coops.

25. Italy: Social Cooperative
• This gives totals of 7,100 social co-
operatives, with 267,000 members,
223,000 paid employees, 31,000
volunteers and 24,000 disadvantaged
people undergoing integration.
Combined turnover is around 5 billion
euro. The co-operatives break into
three types: 59% type A (social and
health services), 33% type B (work
integration) and 8% mixed. The
average size is 30 workers.

26. Euros 11B
housing health
Credit union
doctor
Football
club
buying
Whole
foods
careleisure
consumers
workers
Euros 1.3 B
Source:
Mr. Bob Burlton
Midcounties Co-operative, United Kingdom
Aug. 2006
agriculture

27. Seven principles that define the
identity of cooperatives:
1. open and voluntary membership
2. democratic control
3. limited interest on shares
4. return of surplus to members
5. cooperative education
6. cooperation among cooperatives
7. concern for the community

28. Today, civil society performs inevitable
roles in eradicating poverty, promoting
democracy and good governance,
promoting sustainable development,
resolving social conflict-among myriad of
other areas related in enhancing total
human development.

29. It is common now to see civil society
represented at local, regional
,national and international
conferences and meetings together
with their governments in discussing
social, political, environment issues
and problems of the day. One of these
kinds is the Cooperative Movement

30. Cooperative Defined
An autonomous and duly registered
association of persons, with a
common bond of interest, who have
voluntarily joined together to achieve
their social, economic and cultural
needs and aspirations by making
equitable contributions to the capital
required, patronizing their products
and services, and accepting a fair
share of the risks and benefits of the
undertaking in accordance with
universally accepted cooperative
principles (RA 9520)

31. Cooperatives in the Philippines
According to the CDA (2008) the number
of cooperatives registered since 1990
are:
Savings and Credit coops 4,812
a.Consumer coops: 1,369
b.Producer coops: 911
c.Marketing coops: 1, 806
d.Agricultural and 60,000
Non-Agricultural

32. Financial Strength of the Coop Sector
in the Philippines
Assets Size (in
Million of Pesos)
Total Assets
in Billion
Pesos
% Share
No Of
Coop
s
% No. of
Coops
Large (100M) 61.57 54.09 161 0.88
Medium (15 to 100M) 30.15 26.49 859 4.71
Small (3M to 15M 14.76 12.97 2.197 12.04
Micro (below 3M) 7.35 6.46 45.037 82.38
Total 113.83 100 18.254 100
Source: CDA(2008)

33. Why Cooperatives
Survived?
• Cooperatives are borne out of the
need of the members & their
members take responsibility of
their decisions. Cooperatives are
the top survivors of Global
Economic Crisis.

34. Why Cooperatives
Survived?
Self-help
Self-
Responsibility
Equity
Equality
Democracy
Solidarity
Cooperative
Principles and
Values that we
practice, and
our ethical
practices

35. Parameters of Cooperative
Governance. Good governance in a
cooperative society will largely depend upon
the following factors:
Why Cooperatives
Survived?
• Autonomy & Democratic Leadership
• Awareness to Elected Representatives
• Cooperative Law
• Role of Government
• Federal Structure
• Value-based Professional Management;
• Social Audit

36. • Social capital through coops is
about the ability of people to be
architects of their own personal and
social histories on the basis of their
shared norms, value and collective
empowerment.
• The habit of citizenship is formed
among the members, and they
acquire ability to identify local needs
and ways of meeting these needs in
a unified action.
Why Cooperatives
Survived?

37. Cooperative model is a better model of
business.
• It is not linked to Stock Markets.
• Relies on Member funds for its operation.
• Controlled by Local people for Local people
• Know individual need & repayment capacity
hence loans are not unfettered.
• Hardly any exposure on mortgage-
securities.
• Not motivated by profiting and capitalistic
gains.
Why Cooperatives
Survived?

38. • Cooperatives work within a long-term time
frame. They do benefit from long-term
perspective in their investment strategies.
• They are modest and realistic in planning
the Growth of the Business with
manageable control on costs and
aspirations giving them a greater power of
flexibility.
Why Cooperatives
Survived?

39. • Cooperatives are organizations with
human face and soul. They are in
position to retain their workforce and
continue to provide services to
members at reasonable cost &
affordable prices.
Why Cooperatives
Survived?

40. • The Principles that from the heart of
cooperation are not independent of each
other. They are subtly linked; When one
is ignored all are diminished.
• Coops should not be judged exclusively
on the basis of any one principle; rather,
they should be evaluated on how well
they adhere to the principles as an
entirety.
Why Cooperatives
Survived?

41. Economic and Social
Returns
• Coops have a special
responsibility to ensure that the
development of their communities-
economically, socially and
culturally-is sustained.
• They have a responsibility to work
steadily for the environmental
protection of their communities.

42. Cooperative as Poverty
Reduction Strategy
In light of the numerous squabbles
and controversies created by the
ever mutating dimensions of poverty
and poverty alleviation, emerged
coop as one of the solutions to the
problem.

43. Coop is a tool used and a goal for
poverty reduction and human
development. Human development
is therefore, ‘the development of
people investing in their education
and health for the people, generating
adequate income, satisfying their
basic needs and offering sufficient
employment opportunities and
allowing them fully participate in every
process of their lives.

44. Strategies
• Capital endowment
• Credit system
• Resource allocation
• Livelihood
• Educational Assistance
• Mutual Aid Fund
• Health and Members Benefit
• Employment
• Community Involvement
• Linkaging/networking

45. Best Practices and Awards
• San Joaquin MPC, Ilocos Norte Ist
Place Gawad Pitak Awardee 2010

46. Landan Multipurpose Coop –Coop in
Polomolok, South Cotabato ,
composed of indigenous people
referred to as B’laans, the coop
heavily depended on dole-outs
from charitable groups but now it
has turn the wheels and boast of
773 members and Php 60.1 Million
assets-corn production, pineapple
contract and others.

47. BEST Practices and Awards
• Novaliches Development Coop
(NOVADECI) –After 26 years of
existence, in 2002, the coop has total
membership of 6,727 regular and
3169 associate members with Php
318 Million assets. Its services
include health and medical services,
loans, consumer retail among others.

48. • Lamac Multipurpose Coop –Started
with 70 farmer-tenants contributing
initial capital of Ph50 each in the
70’s. At the end of 2002, it had an
asset of Php 63.8 Million. It is
engaged into day care center,
reforestration projects, postal
service, clean and green program,
among others.

49. Best Practices and Awards
Experience in Region I
a. Galimuyod Savings and Development
Coop: organized in April 1972 by a group
of 32 parishioners of the Sacred Heart of
Jesus Parish in Galimuyod, Ilocos Sur.
As of 2007 it has total membership of
around 3000 with a capitalization of over
Php 9 Million. It had been awarded by
Land Bank of the Phil.

50. b. Government of Laoag
Employees Development Coop:
Organized by employees o local
government of Laoag in 1992. As
of Dec 2008, it has 848 members
and Php 10 Million.

51. Criticisms and Limitations
Given the reduction in global
poverty has been rather sluggish,
even the promoters of cooperative
do not disagree that cooperative
alone is enough to reduce poverty.

52. • Coops are faced with striking
the balance between the two:
a.Fulfillment of their mission of
alleviating poverty, they also
charge high interest rates to
survive.
b.While they are not charitable
groups they charge interests to
cover operational costs and
avoid risks.

53. • Concerns have been raised that the
reliance on coop programs to help the
poor escape poverty results in cuts in
government expenditure in public
safety net programs (Neff 1996).
• Cooperative programs often claim to
empower their clients who are mostly
women.
• Many coops have predominantly
female clients and members.

54. Challenges of Cooperative
• Cooperatives today are confronted
with massive issues and problems
as a result of globalization. Coops
are operating in an environment
that has the following
characteristics: .

55. Challenges of Cooperative
• Deregulation of markets; intensive
competitive pressure; withdrawal
of government sponsorship;
declined in traditional community
base for coops; rapid technology
led transformation of process and
markets; and lack of management
development opportunities within
the cooperative movement.

56. Challenges of Cooperative
Mismanagement, financial
scandals, poor management
control, growing distance between
members and their cooperative
society, failure of democracy and
an unbalanced relationship
between management and elected
directors.

57. Problems of Cooperatives
1. There is duplication of series and
functions within the coop movement
because coop organizations are not
merging and consolidating fast enough
to match their competitive
environment.
2. Coops have been slow to develop in the
fastest growing technology based
leisure, information, manufacturing
and pharmaceuticals.

58. 3. Only a small proportion of
primary coops operate at
national level and even fewer
can trade internationally.
4. Most primary coops operate
as the low value added link in
their industries’ supply chain..

59. 5. Coops are characterized by the
absence of a substantial degree of
entrepreneurial spirit or culture leading
to missed opportunities and lack of
innovation.
6. Coops lack a commitment or
awareness of the need to develop coop
executive management and generally
do not recognize management’s crucial
leadership role in defending coop
purpose and values.

60. 7. There has been no real attempt
by the movement to incorporate
coop management within the
statement of cooperative identity.

61. Personal Views
Cooperatives have contributed
significantly to poverty reduction
through their provision of services,
and direct investments on community
projects and programs.

62. Personal Views
Co-operatives are the better
socio-business model