Cooperative

Development
Authority

827 Aurora Blvd., Service Road,

Barangay Immaculate Concepcion,
Cubao,
Quezon City
http://www.cda.gov.ph/
http://www.facebook.com/cdaphilippi
nes
Tel.: 721-5324; 721-5325

VISION
An effective and
efficient regulatory
agency working
towards the
development of
viable, sustainable,
socially responsive
and globally

MISSION
To ensure the safe and
sound operations of
cooperatives

Brief history and

failures
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. At
the turn of the century, Filipinos, in
increasing number, traveled and
studied abroad and brought home
with them new ideas. It was this
group of Filipinos who were in

Rizal, after his side trip to

Sandakan, Borneo in 1892,
requested Governor Despudol 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

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

The Rural Credit Law. As soon as

Civil Government was established,
Filipino participation in government
was encouraged. 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. 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

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.

The administration of the Rural

Credit Law 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. 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

Marketing Cooperatives. As soon

as the organization of rural credit
cooperatives was in full swing,
The Cooperative Marketing Law
(Act 2425) was enacted and
approved on December 9, 1927.
The rural credit associations were
designed to help finance the
productive efforts of the farmers.
In order to provide incentives to
the farmers to produce more an
efficient machinery for the
profitable marketing of their
products should be provided.
Wherever rural credit
associations were organized

The apparent weakness of the

rural credit cooperatives,
however, failed the enthusiasm
of farmers to organize
themselves into cooperative
marketing associations. By 1939
only 164 societies were actually
organized with a total
membership of around 5,000
farmers. With this number only
35 reported their sale of products
to the Bureau of Commerce. The
number of associations reporting
indicated that only 20% of the
organized associations were

Causes of the failure of early

cooperatives in the Philippines.
Filipino economists and students of
cooperatives in this country have
often attributed the failure of
cooperative societies in this
country to the following causes:
Incompetent management
Lack of proper understanding of
the principles, practices true
aims, and purposes of
cooperative associations.
Improper use of credits by the
borrowers who, instead of using
money borrowed for production,
spent it for fiestas or luxuries.

 Political interference particularly in

the collection of overdue accounts.
Lack of compensation of officers.
Inadequate character and moral
responsibility in handling the other
fellows money.
Lack of adequate safeguard against
unscrupulous officers who took
advantage of their position to grant
loans to themselves and their
compadres which later proved
disastrous to the system.

 The dominance of the

individualistic attitude instead
of the spirit of cooperation
among the people.
Inability of cooperatives to
secure adequate capital.
Their dependence on alien
suppliers and distributors.
Ineffectiveness of the
government and promotion of
cooperative organizations.
Inadequate marketing facilities.

Core Values
Excellence
Giving one's best performance and
achieve the desired outcome
through effective and efficient
management of resources.
Commitment
High dedication and proactive
involvement in the realization of
the Agency's mandate.
Integrity
Maintain personal conduct, beyond
reproach.
Teamwork
Working collectively and
harmoniously to achieve synergy in
an environment conducive to the

HON. ORLANDO R.
RAVANERA, CSEE,
CEO VI
Chairman
Cooperative
Development
Authority

Principles of
Cooperative
Republic Act No. 9520
AN ACT AMENDING THE
COOPERATIVE CODE OF THE
PHILIPPINES TO BE KNOWN AS
THE "PHILIPPINE COOPERATIVE
CODE OF 2008"
ART. 4. Cooperative Principles. Every cooperative shall conduct
its affairs in accordance with
Filipino culture, good values and
experience and the universally
accepted principles of

"(1) Voluntary and Open

Membership - Cooperatives are
voluntary organizations, open to
all persons able to use their
services and willing to accept the
responsibilities of membership,
without gender, social, racial,
cultural, political or religious
discrimination.

"(2) Democratize Member Control

- Cooperatives are democratic
organizations that are controlled
by their members who actively
participate in setting their
policies and making decisions.
Men and women serving as
elected representatives, directors
or officers are accountable to the
membership. In primary
cooperatives, members have
equal voting rights of onemember, one-vote. Cooperatives
at other levels are organized in
the same democratic manner.

"(3) Member Economic Participation

- Members contribute equitably to,
and democratically control, the
capital of their cooperatives. At
least part of that capital is the
common property of the
cooperative. They shall receive
limited compensation or limited
interest, if any, on capital
subscribed and paid as a condition
of membership. Members allocate
surpluses for any or all of the
following purposes: developing the
cooperative by setting up reserves,
part of which should at least be
indivisible; benefitting members in
proportion to their patronage of the

"(4) Autonomy and Independence

- Cooperatives are autonomous,
self-help organizations controlled
by their members. If they enter
into agreements with other
organizations, including
government, or raise capital from
external sources, they shall do so
on terms that ensure democratic
control of their members and
maintain their cooperative
autonomy.

"(5) Education, Training and

Information - Cooperatives shall
provide education and training
for their members, elected and
appointed representatives,
managers, and employees, so
that they can contribute
effectively and efficiently to the
development of their
cooperatives.

"(6) Cooperation Among

Cooperatives - Cooperatives
serve their members most
effectively and strengthen the
cooperative movement by
working together through local,
national, regional and
international structures.

(7) Concern for Community Cooperatives work for the

sustainable development of
their communities through
policies approved by their
members.

ACCOMPLISHME
NT REPORTS
(2010-2013)