This document provides an overview of the history and development of cooperatives in the Philippines from 1896 to 2009. It outlines key cooperative laws passed by the Philippine government to promote cooperatives in various economic sectors, as well as some cooperatives initiated by churches and the private sector. Some of the major cooperative laws and events mentioned include the country's first agricultural marketing cooperative organized by Jose Rizal in 1896, the passage of the Cooperative Code in 1990, and the establishment of the Cooperative Development Authority.

1. Overview of Cooperatives in the Philippines
Cooperative history, laws, trends, philosophy, principles, concepts, practices,
Deeper internalization of cooperative identity and increased awareness by cooperative members, officers
and management of their privileges and duties

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

4. In modern form,
cooperatives date from
1844, a group of 28
impoverished weavers of
Rochdale, England,
founded a mutual-aid
society, called the
Rochdale Society of
Equitable Pioneers.
The Rochdale Pioneers
Rochdale Society established
between 1850 and 1855
Initially, there were only four
items for sale: flour, oatmeal,
sugar and butter.

5. Robert Owen (1771–1858)
is considered as the father of the
cooperative movement. Owen
first cooperative theorist and
credited with inspiring the
Rochdale Pioneers, who in 1844
began the cooperative
movement at Rochdale,
Lancashire
Dr. William King
(1786–1865)
He is best known
as an early
supporter of the co-
operative
movement through
the paper he
founded, The Co-
operator.
Charles Fourier (1772) was
among the most important
early socialist utopians, arguing
that uniting all people regardless
of economic status, Fourier hoped
to eliminate the poverty that was
stunting the success of social
economy
Friedrich Wilhelm
Raiffeisen (1864) conceived
of the idea of cooperative self-
help during his tenure as the
young mayor of Flammersfeld.
He was inspired by observing
the suffering of the farmers who
were often in the grip of
loansharks. He founded the first
cooperative lending bank, in
effect the first rural credit union
in 1864.

6. UK, France, Germany, Belgium, Austria, Italy, Denmark
, Finland, Norway, and Sweden.
Consumer
cooperatives,
which emerged in
Britain in the
1840s along the
Rochdale system,
are today the
market leaders in
Italy, Switzerland,
Singapore, Japan,
Scandinavian
countries, Atlantic
and Canada.

7. World Cooperative Monitor 2022 Top 300 ranking released with a
focus on the new challenge of digitalization
The Top 300 cooperatives and mutuals in the world
report a total turnover of more than two trillion USD (2,171
billion USD), based on 2020 financial data. These
organizations operate in various economic sectors, with
Insurance (101 enterprises) and Agriculture (100
enterprises) leading the list. Wholesale and Retail Trade
represent the third biggest economic sector (59 enterprises)
in the ranking.
The International Cooperative Alliance (ICA) and the European Research Institute on
Cooperative and Social Enterprises (Euricse)

8. Top 300 major cooperative enterprises are from the most industrialized
USA (71 enterprises)
France (42 enterprises)
Japan (22 enterprises)
Germany (31 enterprises)
Cooperatives are increasingly diversifying their activities in order to respond to the challenges of the market as they
endeavor to satisfy the interests and demands of their members. Those cooperatives that have managed to adapt to the
new market system, the number of which continue to increase in many countries, are recording better performance than
they did in the past era of state control. Such cooperatives seem to have reinvented the business wheel that they had lost
in the past when they were prematurely arrested by the state (Wanyama, Develtere, and Pollet, 2009).

9. Agriculture and
Food Industries:
Zen-Noh
(Japan)
Industry and
Utilities:
Corporación
Mondragón (Spain)
2. Wholesale
and Retail
Trade: REWE
Group
(Germany)
Insurance:
Nippon Life
(Japan)
1. Financial
Services: Groupe
Crédit Agricole
(France)
Education, Health
and Social Work:
Sistema Unimed
(Brazil)
Other services:
OBOS BBL
(Norway)
3. Cooperative
Financial Network
Germany – BVR
Cooperative Milk
Marketing
Federation Limited
Indian
Farmers
Fertiliser
Cooperative
(IFFCO)

10. The positive social and economic
impact on the lives of billion of
people all over the world greatly
manifests the cooperatives’
contribution to productivity, savings
and entrepreneurship across
continents. Cooperatives are part
of the stream of the social
movement, therefore, in the end
they conscientize, liberate and
empower its adherents, such that
they are able to gain control of the
essential aspects of their
economic, social and political lives
(Algere, 1986).

11. The western concept of cooperativism
came to the Philippines at the turn of the
century. Foreign missionaries who were
here on religious and educational vocation
promoted cooperatives as a way of
democratizing wealth which was then a new
economic philosophy gathering acceptance
in Europe. Though, our forefathers had
been practicing an indigenous form of
cooperativism in the Filipino tradition
known as bayanihan.

12. Dr. Jose Rizal, had
organized Agricultural
marketing cooperative
in Dapitan while on
exile in 1896.

13. Cooperative Efforts (1906-1940)
1907
Rural
Credit
Bill
1915
Rural
Credit
Act
Government
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
Common Wealth
Act 565
Gen, Basic
Cooperative Law
1940
Government
Initiated
National
Cooperative
1941
1952
RA 821
Farmers
Cooperative
Marketing
Rev. Allen R.
Huber, organized
church members in
Vigan, Ilocos Sur
into the country’s
first privately-
initiated credit
union

14. Expansion of Cooperativism in the
Philippines (1950-1969)
RA 2023
Non
Agricultural
Cooperative
law
Government
Initiated
1963
Philippine
National
Cooperativ
e Bank
Church
Sponsored
1967
In 1969 the Code
of Agrarian Reform
Strengthening the
Cooperative
Movement
1973

16. Year Coop Laws Initiation
1896 Agricultural Marketing Cooperative which the national hero, Dr.
Jose Rizal, had organized in Dapitan
Formed ahead of the
passage of the
cooperative laws
1915 Rural Credit Cooperative Bill”. It was introduced in 1907, passed
in 1915.
Government
1919 Act No. 2818 was enacted primarily to grant loans to members of
rural credit association.
Government
1927 the “Cooperative Marketing Law” (Act No. 3425) was passed in
1927
Government
1938 Rev. Allen R. Huber, organized church members in Vigan, Ilocos
Sur into the country’s first privately-initiated credit union
Church
1938 Inspired by the success of Vigan cooperative, the Protestant
Church in the Ilocos region organized other cooperatives.
Because of the achievements of church initiated cooperatives,
the government passed Commonwealth Act No. 287 in 1938 to
strengthen the cooperatives.
Government

17. Year Coop Laws Initiation
1940 1940, Commonwealth Act No. 585, the “Cooperative
Act”, was passed. It provided for the organization of all
types of cooperatives
Government
1950 Executive Order No. 95, for example, transferred those
powers to the National Cooperative and Small
Business Corporation (NCSBC). Then, in 1950, the
NCSBC was abolished. In its place, the Cooperative
Administration Office (CAO) under the Department of
Commerce of Industry was created to take change of
cooperative matters
Government
1952 the Agricultural Credit and Cooperative Financing
Administration (ACCFA) in Rep. Act No. 821, otherwise
known as the Agricultural Cooperative Law, the
Farmers Cooperative Marketing (FACOMA) was
organized, financed by ACCFA
Government
1957 the Philippine Non-Agricultural Cooperative Law (Rep
Act No. 2023)
Government

18. Year Coop Laws Initiation
1960 Church sponsored a National Rural Congress which passed
resolution officially recognizing the need to organize cooperative in
the parishes.
Church with
private sector
1962 In 1962 Congress passed Republic Act No. 3470, known as the
National Industry Development Act.
Government
1963 Under the provision of the same law, the Philippine National
Cooperative Bank (PNCB) was established to provide credit to non-
agricultural cooperatives.
Government
1969 In 1969 the Code of Agrarian Reform (Rep Act No. 6389) was
passed. The Code Mandated that cooperatives be utilized as the
primary conduits for credit, supply and marketing services to agrarian
reform beneficiaries
Government
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
Government

19. Year Coop Laws Initiation
1973 The decree abolished the CAO and organized the bureau of Cooperative
Development (BCOD) under the Department of Local Government and
Community Development (DLGCD). A month later, P.D. No. 27, the
Agrarian Reform decree, declared the entire country as an agrarian
reform area. To support the agrarian reform program, Marcos issued a
new decree on cooperatives, P.D. No. 175 and Letter of Instruction No.
23.
Government
1973 Pre-cooperatives called Samahang Nayon (SNs) were organized at the
barrio level. Groups of ten SNs were formed into the Kilusang Bayan
(KBs), which were supposedly full-pledged cooperatives. Marketing
support for the produce of the KBs was to be provide by the Area
Marketing Cooperatives (AMCs) at the provincial level. Their financial
requirements were to be serviced by the Cooperative Rural Banks
(CRBs). The government also set up the Cooperative Development Loan
Fund (CDLF) to extend funding assistance where needed.
Government
1988 Hence, in 1988, cooperative leader all over the country lobbied
aggressively for the adoption of cooperative-friendly legislation. In this
effort, they got all out support form co-author (Aquilino Q. Pimentel Jr.)
who was, then, serving as Senator. He authored and co-sponsored the
bill that sought to enact a Cooperative Code. Sen. Agapito Aquino in his
capacity as chair of the Committee on Agriculture was the main sponsor

20. Year Coop Laws Initiation
1990 RA. No. 6938
The bill was passed and signed as law by President Aquino on March
10, 1990. A companion law was also passed creating the Cooperative
Development Authority (Rep. Act No. 6939) which provided for the
abolition of BACOD and the transfer of its functions, qualified personnel
and budget to the CDA.
Government
2009 The Philippine Cooperative Code of 2008 signed on February 17, 2009 Government
2019 The Republic Act No. 11364 (RA 11364), otherwise known as the
“Cooperative Development Authority Charter of 2019”, was signed
into law by President Rodrigo Roa Duterte last August 08, 2019 and took
effect on August 29, 2019.
Government

22. R.A. 9520 - Philippine Cooperative Code of 2008
An act amending the Cooperative Code of the Philippines
to be known as the Philippine Cooperative Code of 2008
R.A. 3765- Truth in Lending Act (for coops with credit operations only)
An act to require the disclosure of finance charges in
connection with extensions of credit
R.A. 9510-Credit Information System Act (for coops with credit
operations only)
R.A. 8424 –NIRC OF 1997 as amended by R.A. 10963- TRAIN LAW
R.A. 8791-General Banking Law of 2000 (for cooperative banks
only)

23. Laws on MSME Development
Three laws, namely, the Go Negosyo Act, Barangay Micro Business Enterprise Act (BMBE Act) and
Magna Carta for MSMEs, are already in place for that purpose.
• The Go Negosyo Act ( RA106411 J) provides for the establishment of a “Negosyo Center” in all
provinces, cities and municipalities to, among others, promote ease of doing business and access
to services for MSMEs within their respective jurisdictions, and build local support networks and
establish market linkages for them.
• The BMBE Act (R.A. 9178- ) exempts micro enterprises registered with the Department of Trade and
Industry from income tax and from the coverage of the minimum wage law, but their employees
shall receive the social security and health-care benefits that employees of other industries are
entitled to.
• The Magna Carta for MSMEs (RA 9501) calls for the strengthening of the Micro, Small and Medium
Enterprises Development Council in order to, among others, help establish the needed environment
and opportunities conducive to the growth and development of MSMEs, and streamline the
registration of business enterprises.
• In addition, it created the Small Business Guarantee and Finance Corporation (SB Corp.) for the
purpose of extending all forms of financial assistance to eligible MSMEs and to guarantee their
loans. The SB Corp. is, in effect, supposed to act as “interim” financier and credit guarantor to
MSMEs, which is often a critical factor in any starting business.
https://business.inquirer.net/351550/laws-on-msme-development#ixzz7tMp0vZ1j

24. R.A. 7934 –Consumer Act of the Philippines (unfair trade practices)
Defines, prohibits and penalizes three types of anti-competitive conduct:
anti-competitive agreements, abuse of dominant position, and anti-
competitive mergers and acquisitions
RA 10667 The Philippine Competition Act
A Decree Instituting a Labor Code, Thereby Revising and Consolidating Labor
and Social Laws to Afford Protection to Labor, Promote Employment and Human
Resources Development and Ensure Industrial Peace Based on Social Justice
P.D. 442-Labor Code of the Philippines as amended & renumbered
R.A. 11058-Compliance with Occupational Safety and Health Standards
This law outlines the duties of employers, workers, and other persons in ensuring that
occupational safety and health (OSH) standards are met. It applies to all
establishments, projects, sites, and all other places where work is being undertaken in
all branches of economic activity (including those regulated by the Philippine Economic
Zone Authority) except in the public sector.

25. R.A. 10173 –Data Privacy Act of 2012
Data Privacy Act 2012 or Republic Act No.
10173 is a law that the Philippine
Congress has enacted to protect the
individual’s personal data, whether
sensitive or otherwise, in the information and
communications systems of the government
and of the private sector. The statute creates
for this purpose a National Privacy
Commission.
Introduces amendments to RA 9160 or the
Anti-Money Laundering Act of 2001 in a bid
to prevent the country from being included
on the “gray list” or countries with weak
policies against dirty money.
RA. 9160 - Anti-Money Laundering Act of 2001 as
amended by R.A. 11521

26. RA 9003 Ecological Solid Waste Management Act of 2000
RA 9275 Philippine Clean Water Act of 2004
RA 8749 Philippine Clean Air Act of 1999
RA 9442Magna Carta for PWDs
RA 9994 Expanded Senior Citizens Act of 2010
RA 8972 Solo Parents Welfare Act of 2000
RA 9710 Magna Carta for Women
Environment
Women, Senior Citizens, PWDs

28. 26

31. 2020

32. Cooperatives with assets up to P 3 million are considered micro, P3,000,001 to 15 million as
small, P 15,000,001 to 100 million as medium, and above 100,000,001 as large

33. 640,112 99,564

34. 10,600