POST-INDEPENDENCE PERIOD

R.A No. 364 (1950)

Cooperative Administration Office (CAO)
 It was placed under the Department of Commerce and Industry.
 It aims to promote, organize, and oversee the cooperative movement.
 Three unified laws influenced the creation of the CAO.

3 COOPERATIVE LAWS
1. Rural Credit Cooperative Association Act
2. Cooperative Marketing Law
3. Cooperative Law

R.A No. 583 (1950)

Small Farmers Cooperative Loan Fund

R.A No. 821 (1952)

Agricultural Credit and Cooperative Financing Administration
 Also known as the Agricultural Cooperative Law
 Its objectives included:
 Assisting small farmers in obtaining liberal financing.
 Developing successful farmer groupings into cooperative associations.
 Allowing them to market their agricultural commodities.
 Placing agriculture on an equal economic footing with other industries.

 The extension of credit to farmers without collateral except for their productive
capacity, specifically on the members of Farmers Cooperative Marketing
Associations (FACOMAs)
 USAID funded this large-scale program of financing.

R.A No. 2023 (1957)

Non-agricultural Cooperative Law
 Two prominent big credit unions got incorporated:
1. San Dionisio Credit Cooperative (assets: ₱200 M)
2. Benguet Credit Cooperative (assets: ₱300 M)
 The law required private employees to grant the cooperative office space free of
charge and extended only to government employees.
 The birth of the Philippine National Cooperative Bank (PNCB) was made possible
because of this law.

Philippine National Cooperative Bank (PNCB)

 Its function is to provide financing to non-agricultural co-ops, but it failed and closed
after ten years of service due to mismanagement.
Nation Rural Congress (1967)
 The purpose is to address social injustice and poverty issues and to organize cooperatives
in the parishes.
 The co-ops were organized through cooperative education, self-reliance, and voluntarism
values. 

R.A No. 6389 (1969)

Codes of Agrarian Reforms
 The law decreed that the land reform beneficiaries' credit, agricultural supplies, and
marketing activities should be coursed through cooperatives. 

Martial Law (1972-1981)

 The regime wanted to use the cooperative form as an instrument for the success of the
Bagong Lipunan or New Society.

Presidential Decree (P.D.) No. 1

 It created the Bureau of Cooperative Development (BCOD) under the Department of
Local Government and Community Development (DLGCD) as a replacement for
CAO.

P.D. No. 175 together with Letter of Instruction (L.I.) No. 23

 It became the legal basis of cooperatives and the declaration that the whole
Philippines was a land of the reform era.
 Both pre-cooperatives and cooperatives were used to prepare the farmer-beneficiaries
for the exercise of land ownership and to extend to the farmers' services previously
availed from the landlords. 

Samahang Nayon (S.N.)

 It was named to the pre-cooperatives, which were incubator stages for land reform
farmers to acquire the concepts, principles, technical skills, management, and other
basic cooperative abilities required to establish a full-fledged cooperative, the
Kilusang Bayan (K.N.)

Electric Cooperatives 
 It brought the blessings of electricity to rural areas throughout the country.

R.A. No. 6939 (President Corazon Aquino's Administration)

Cooperative Code of the Philippines
 It reinforces=d the agrarian-reform cooperatives to its special provisions section on
the matter.

Association of Cooperative Education (NACE) 

 It was founded in 1996 to address cooperative failures.
CANTEENS AS TEACHER COOPERATIVES

Order No. 55 (1996)

 The Department of Education, Culture, and Sports (DECS) implemented this law that all
school canteens in primary and secondary schools should be converted into teacher
cooperatives. 

COOPERATIVE WORK AS A PROFESSION

 The Polytechnic University of the Philippines now offers a course on cooperatives.

 The University of Santo Tomas provides a subject on cooperatives in its Business
Administration course and Entrepreneurship with Ethics Education Towards Equity
course.

Captive Market
 Loyal to the cooperative's business and can only be weaned away by competition if price
differences make the co-op uncompetitive.
 Cooperatives must use it to avert the devastating effects of globalization, transnational
companies, and massive commercial intrusion on the economy.

MAJOR FACTORS CONTRIBUTE TO THE DIFFICULTIES IN

INSTITUTIONALIZING COOPERATIVES

1. Lack of education and training

2. lack of adequate safeguards 
3. Improper use of credit
4. Defective or inadequate security
5. Political interference
6. Lack of adequate marketing facilities
7. Inadequate government support