History of Cooperatives

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

primarily in Britain and France. .Beginnings ‡ The cooperative movement began in Europe in the 19th century.

.Robert Owen ‡ 4 May 1771 ± 17 November 1858) was a social reformer and one of the founders of socialism and the cooperative movement.

‡ A Welshman who made his fortune in the cotton trade. ‡ It was here that the first co-operative store was opened. . Scotland. Owen believed in putting his workers in a good environment with access to education for themselves and their children. making their own clothes and ultimately becoming self-governing. Spurred on by the success of this.Robert Owen (1771±1858) ‡ Robert Owen (1771±1858) is considered the father of the cooperative movement. he had the idea of forming "villages of cooperation" where workers would drag themselves out of poverty by growing their own food. ‡ These ideas were put into effect successfully in the cotton mills of New Lanark. He tried to form such communities in Orbiston in Scotland and in New Harmony. but both communities failed. Indiana in the United States of America.

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 .


Jose P.‡ 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. Rizal and Teodoro Sandiko. .

. ‡ This functioned for only one year.Rizal ‡ Rizal. Rizal had his ideas in cooperation partially fulfilled. ‡ He also established a cooperative store with the help of his pupils. ‡ He put up a school for the poor community on a purely cooperative basis. he was arrested for treason and banished to Dapitan. 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. ‡ Rizal returned the members share capital without any loss. ‡ In Dapitan. Zamboanga del Norte. after his side trip to Sandakan. ‡ One noteworthy group organized by Rizal was the La Sociedad de los Abacaleros (Society of Abaca Producers). ‡ Instead.

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. under the Americans. Sandiko had his chance when he was appointed one of the early governors when Civil Government. was established.

‡ Teodoro Sandiko.The Rural Credit Law. 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 .

The Rural Credit Law. 1908. ‡ The principal aim of this bill was to protect and develop the agricultural interest of the country. turned it down. ‡ The Philippine Commission however. . ‡ When the Barreto sponsored bill was presented it readily obtained unanimous approval on January 20.

‡ The bill was ably presented in both Houses and it was finally passed into law on February 11. Sandiko earned a title of Father of Cooperation in this country. Gov. ‡ This time it was sponsored in the Lower House by Rep. . ‡ When this Act was finally made into law. Barreto from Zambales. 1914 and became Act 2508. Rafael Corpuz who succeeded Rep.‡ Undaunted by this defeat the sponsors of the bill again put it through in the Second Philippine Legislature.

Rural Credit Law ‡ The administration was entrusted to the Bureau of Agriculture. ‡ It was formed on October 18. Nueva Ecija.1916. ‡ The first rural credit association that was organized under this Law was the Agricultural Credit Cooperative Association of Cabanatuan. .

. through cooperatives was a failure.‡ 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. however. ‡ In 1935. about 90% of these cooperatives were inactive with no funds left in their treasury. ‡ The experiment on rural financing.

Research the following: ‡ Marketing Cooperatives in the Philippines ‡ Agricultural Credit and Cooperative Financing Administration (ACCFA) in the Philippines .

Project :Cooperative Profile ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Executive Summary Slogan Vision Mission Core Values Products and Services Membership Organizational Structure/ Officers Main Office Branches .

Sign up to vote on this title
UsefulNot useful