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History of Cooperatives
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Page 1: History of Cooperatives in the Philippines

History of Cooperatives

Page 2: History of Cooperatives in the Philippines

History of the cooperative movement• The history of the cooperative

movement concerns the origins and history of cooperatives. Although cooperative arrangements, such as mutual insurance, and principles of cooperation existed long before, the cooperative movement began with the application of cooperative principles to business organization.

Page 3: History of Cooperatives in the Philippines

Beginnings

• The cooperative movement began in Europe in the 19th century, primarily in Britain and France.

Page 4: History of Cooperatives in the Philippines

Robert Owen

• 4 May 1771 – 17 November 1858) was a social reformer and one of the founders of socialism and the cooperative movement.

Page 5: History of Cooperatives in the Philippines

Robert Owen (1771–1858)• Robert Owen (1771–1858) is considered the father of the

cooperative movement. • A Welshman who made his fortune in the cotton trade, Owen

believed in putting his workers in a good environment with access to education for themselves and their children.

• These ideas were put into effect successfully in the cotton mills of New Lanark, Scotland.

• It was here that the first co-operative store was opened. Spurred on by the success of this, he had the idea of forming "villages of co-operation" 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 Orbiston in Scotland and in New Harmony, Indiana in the United States of America, but both communities failed.

Page 6: History of Cooperatives in the Philippines

History of Cooperatives in the Philippines

Page 7: History of Cooperatives in the Philippines

Travel in Europe

• A Filipinos traveling in Europe during the later part of the 19th century must have been impressed with the success of a new economic movement in effecting a gradual metamorphosis of the economic and social life of the people ion those countries

Page 8: History of Cooperatives in the Philippines
Page 9: History of Cooperatives in the Philippines

• It was this group of Filipinos who were in close in contact with the new economic movement in Europe. Two names worthy of note were Dr. Jose P. Rizal and Teodoro Sandiko.

Page 10: History of Cooperatives in the Philippines

Rizal• Rizal, after his side trip to Sandakan, Borneo in 1892, requested

Governor Despujol that he and some relatives and friends be permitted to move to that place and found a colony under the cooperative plan of Robert Owen.

• Instead, he was arrested for treason and banished to Dapitan, Zamboanga del Norte.

• In Dapitan, Rizal had his ideas in cooperation partially fulfilled. • He put up a school for the poor community on a purely cooperative

basis. • He also established a cooperative store with the help of his pupils.• One noteworthy group organized by Rizal was the La Sociedad de

los Abacaleros (Society of Abaca Producers). • This functioned for only one year.• Rizal returned the members share capital without any loss.

Page 11: History of Cooperatives in the Philippines

Teodoro Sandiko

• In his travels in Europe, must have had a close contact with the cooperative movement in Germany where he came across with the Raiffeisen movement.

• He was very much impressed by this type of cooperative and he looked forward for an opportunity to have it introduced here in the Philippines.

• As destiny might have its choice, Sandiko had his chance when he was appointed one of the early governors when Civil Government, under the Americans, was established.

Page 12: History of Cooperatives in the Philippines

The Rural Credit Law.

• Teodoro Sandiko, then governor of Bulacan, prepared a bill patterned after the Raiffeisen type of credit union and had Rep. Albert Barreto of Zambales sponsor the bill in the lower House of Congress

Page 13: History of Cooperatives in the Philippines

The Rural Credit Law.

• The principal aim of this bill was to protect and develop the agricultural interest of the country.

• When the Barreto sponsored bill was presented it readily obtained unanimous approval on January 20, 1908.

• The Philippine Commission however, turned it down.

Page 14: History of Cooperatives in the Philippines

• Undaunted by this defeat the sponsors of the bill again put it through in the Second Philippine Legislature.

• This time it was sponsored in the Lower House by Rep. Rafael Corpuz who succeeded Rep. Barreto from Zambales.

• The bill was ably presented in both Houses and it was finally passed into law on February 11, 1914 and became Act 2508.

• When this Act was finally made into law, Gov. Sandiko earned a title of Father of Cooperation in this country.

Page 15: History of Cooperatives in the Philippines

Rural Credit Law

• The administration was entrusted to the Bureau of Agriculture.

• The first rural credit association that was organized under this Law was the Agricultural Credit Cooperative Association of Cabanatuan, Nueva Ecija.

• It was formed on October 18.1916.

Page 16: History of Cooperatives in the Philippines

• With this initial organization farmers in the different provinces were organized.

• At the end of 1926 there were 544 rural credit cooperatives organized in the 42 provinces and by 1930 there were 571 associations formed all over the country.

• In 1935, however, about 90% of these cooperatives were inactive with no funds left in their treasury.

• The experiment on rural financing, through cooperatives was a failure.

Page 17: History of Cooperatives in the Philippines

Research the following:

• Marketing Cooperatives in the Philippines

• Agricultural Credit and Cooperative Financing Administration (ACCFA) in the Philippines

Page 18: History of Cooperatives in the Philippines

Project :Cooperative Profile

• Executive Summary• Slogan• Vision• Mission• Core Values• Products and Services• Membership• Organizational Structure/ Officers• Main Office• Branches