Editor's Note

Cooperativism. Cooperatives have been in existence in the Philippines since 1915. Since then, the cooperative has been the policy tool or instrument of the government in its effort to promote social justice and economic development. The policy is well enshrined in the 1987 Philippine Constitution, which provides the enactment of cooperative legislation.

Notably, the provisions on National Economy and Patrimony state the goals of the national economy, which is, “a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the underprivileged.” “In pursuit of these goals,” Section 1 of Article XII of the Constitution tells us, “all sectors of the economy and all regions of the country shall be given optimum opportunity to develop. Private enterprises, including corporations, cooperatives, and similar collective organizations, shall be encouraged to broaden the base of their ownership.”

Cooperatives is mentioned in the above-quoted provision; and interestingly, the Constitution in fact mentions cooperatives five times. Specifically, the fundamental law mandates Congress to allow small-scale utilization of natural resources by cooperative fish farming, prioritizing subsistence fishers and fish workers in rivers, lakes, bays, and lagoons. Under the Constitution, cooperatives are encouraged to own and operate economic enterprises to promote distributive justice. Thus, the basic law of the land envisions the promotion of cooperatives in various sectors of the economy, the expansion of economic base, and the mobilization of the less privilege members of the society to actively participate in nation-building.

Conformably with the Constitutional mandate, the Philippine Congress passed the Cooperative Code (Republic Act 6938) and Cooperative Development Authority (CDA) Charter (RA 6939) on March 10, 1990. The policy of the state, as articulated in the Cooperative Code, encourages “the creation and growth of cooperatives as practical vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development and social justice. The State shall encourage the private sector to undertake the actual formation and organization of cooperatives and shall create an atmosphere that is conducive to the growth and development of these cooperatives.”

Various writers have opined that, as a help-help organization, and with proper monitoring and support of the government, cooperatives can contribute to rapid economic growth because of the power of cooperatives to mobilize savings and capital which can serve as inputs in the production of goods and services of the less privileged members of the society. The various development plans crafted for the country in fact recognizes cooperatives to provide a significant contribution in the objectives of creating rapid, inclusive and sustained economic growth, as well as financial inclusion and reduction of poverty.

In fine, encouraging cooperatives to flourish would surely engender the shift towards an economic system that is based on collective cooperation where the marginalized sectors are drawn into the mainstream of national development, and where the people have access and control over their resources.