The Medium-term Philippine Development Plan for 2010-2016 is the Aquino Administration's development framework for translating the

President's development Agenda , as contained in his "Social Contract with the Filipino People" into strategies, policies, programs and activities for the period 20102016. The Social Contract envisions "a country with an organized and widely shared rapid expansion of our economy through a government dedicated to honing and mobilizing our people's skills and energies as well as the responsible harnessing of our natural resources". The attainment of the vision entails changes among each and every Filipino towards "doing the right things, giving value to excellence and integrity and rejecting mediocrity and dishonesty, and giving priority to others over ourselves. All sectors of society are expected to contribute towards the realization of these development objectives. The cooperatives sector in the Philippines is one such sector that has, based on past performance, proven to immensely contribute towards the realization of the national goals in general. Along with the government's efforts for the next six years, it has formulated, through a highly consultative and participative process, the sector's own complementary blueprint, that they have called "The Co-op Sector 10-Year Strategic Direction - An Integrated and Transformative Cooperative Sector". It is an attempt to develop a national co-op sector strategy for development to enhance and complement individual cooperative programs and services, and to facilitate cooperation among cooperatives". These will be spelled out in the following Philippine Cooperative Medium-Term Plan (PCMTDP) for 2011-2016 and will be one of the Cooperative Development Authoritys primary reference in drawing its program thrusts and priorities during the plan period. As clearly put in RA 6939, "The Authority shall a) Formulate, adopt and implement integrated and comprehensive plans and programs on cooperative development consistent with the national policy on cooperatives and the overall socio-economic development plans of the government.."

Vision, Mission, Principles

The PMTDP for the period 2011-2016 is anchored on the realization of the collective vision and mission of the cooperatives sector which is:

"An integrated and transformative cooperative system with a mission to build integrated businesses imbued with cooperative values for the improvement of the quality of life".

Cascading from this sectoral vision and mission is the cooperative sector's specific goals: Safe and sound financial cooperative sector that provides efficient, accessible, and competitive financial and related services. Efficient and effective cooperative procurement, distribution and marketing channel for co-op products and services. Increased number of cooperatives owning and operating environment-friendly, safe, efficient, and sustainable organizations that provide basic services to members. Responsive and self-regulating national integrated cooperative advocacy, education and information system.

Aligned cooperative businesses. The realization of the collective vision and mission statements will contribute towards the overall realization of the societal goal of poverty reduction and improvement of the quality of life of its members. Therefore, the operations and governance in the cooperative sector as well as the relationships between and among the actors, shall be guided by the following principles: a) subsidiarity, b) autonomy and independence, c) partnership and complementation, d) empowerment, e) transparency, and f) accountability.

The principle of subsidiarity enshrined in the Cooperative Code means that there should be no government intervention as much as possible and government intervenes only when necessary. This principle may also refer to the extent where government utilizes various levels to manage development initiatives in the cooperative sector. This may be taken to mean that the government may veer away from activities best handled by primary cooperatives, federations and unions. This may also mean that the Local Government Units (LGUs) are to be involved as partners in cooperative development in these areas, consistent with the requisites of local autonomy.

The principle of autonomy and independence defines cooperatives as autonomous, self-help organizations. Along with the principle of partnership and complementation, it also guides cooperatives in their pursuit of growth and development through critical collaboration or strategic alliances with external organizations including government, non-government organizations (NGOs) and the business sector.

The principle of empowerment recognizes the primary responsibility of citizens including members of the cooperative sector to chart their own development and destiny with the government providing measures to facilitate or enable the same. This principle espouses that the most vulnerable sectors of society shall be economically empowered by expanding their capabilities and opportunities to generate sustainable sources of income, by propagating awareness for possible collective action, and by increasing their participation in decision- making.

The principle of transparency highlights one of the backbones of democratic societies like cooperatives. It means that decision-making shall be subject to full disclosure at every stage in order to foster confidence in the integrity and honesty of the leadership.

Lastly, the principle of accountability refers to the responsible use of power by the leadership and by the institutions to advance general welfare. It requires that those who hold positions of public trust should account for their performance to the public. Effective accountability requires appropriate external feedback and should be linked to appropriate incentive and penalty system.

In light of the above-cited cooperative sectoral vision and mission statements and principles, and the Cooperative Development Authority's mandate of "promoting the viability and growth of cooperatives as instruments of equity, social justice and economic development", the CDA, in partnership with other stakeholders shall work hand in hand with the cooperatives in pursuing the following broad policy directions to support the ten year Co-operative Strategic Direction that received an overwhelming affirmation during the 10th National Cooperative Summit held on October 10-12, 2010 at the Araneta Coliseum, Cubao, Quezon City.

Resources
Co-op Sectors

Green Star Food Co-op, Ithaca, New York Cooperatives can be labeled more than one way, so it can be a little confusing at first. Let us try to clarify some terms for you. Labels may refer to the ownership structure, the product or service the co-op offers, or the activity the group engages in collectively. Just about any co-op can have more than one label. For example, a group of people forming a co-op to open a grocery store and sell food to co-op members and perhaps other customers is called a "consumer co-op" and also--more commonly--a "food co-op". Both labels are correct. One refers to the co-op's ownership structure (consumers) and the other to what it offers those owners (food). Here's another example: A group of dairy farmers who sell milk under a cooperatively owned brand name which they own might refer to itself as either a "producer co-op" or a"marketing co-op". If they open their own milk processing plant to make cheese or some other product, they are also a "value-added agricultural co-op". And all of them, if they buy equipment, fertilizer, services or anything else together, are " purchasing co-ops".

To make matters even more interesting, many people in the co-op world connect the label "purchasing co-op" to the model of independent retailer-owned co-ops such as Best Western hotels, TrueValue and ACE hardware stores. Or, they may use the term purchasing co-ops for a municipally owned or other "shared service" cooperative. And while agricultural producers work very hard, no one ever refers to them as worker co-ops any more than they refer to a group of factory workers who have formed a co-op to produce textiles as producer co-ops. Given this cautionary note, here are some divisions that are widely accepted:

1. Producer cooperatives
This refers to people engaged in production in separate enterprises, whether these ar farms, fishing boats, forests, artist studios, or craft workshops. The co-op members are the independent producers, and they man cooperate in many possible ways. They may buy farm inputs, equipment, and insurance, hire managers and sales people, market and advertise together, or operate storage or processing facilities or a distribution network.

Delta Organic Farm

2. Worker cooperatives
These businesses are owned by some or all of the workers. Depending on the start-up capital needed, they can offer workers a chance to own their own company with very little financial investment. This can make them an ideal structure for people of modest or low incomes. They are also increasingly popular with small groups of attorneys, designers and engineers, fundraisers, and other professionals. Many worker co-ops are fairly small and have no separate boards of directors; everyone takes a direct role in policy making and other governance functions. Typical examples are print shops, copy centers and bookstores; small manufacturing, construction and engineering firms; homecare and daycare professionals; restaurants and bakeries, auto repair shops and groups of artists or artisans. A few worker co-ops attain sizable memberships. Cooperative Home Care Associates, founded in 1985 in New York City's Bronx, now anchors a national cooperative network creating quality jobs for over 1600 individuals, mostly women of color.

3. Consumer cooperatives
These businesses are owned and governed by people who want to buy from the co-op. Consumers can create a cooperative to provide pretty much anything they want to buy. Their purchases may include groceries, electricity or telephone service, housing, healthcare, orunder the label of credit unions--financial services. The co-ops can be tiny or immense: a single artists' dwelling or a high rise with hundreds of apartments. A small food-buying club in a rural village or a multi-million dollar supermarket in a bustling city. The national Rural Electric Cooperative network serves consumer-owners in 45 states. Some cooperatively owned insurance companies like Nationwide serve enormous memberships with significant financial assets. Most consumer co-ops, even if they are not as complex or heavily regulated as credit unions (described below), elect boards of directors who hire managers to run the daily operations. Both the grocery and the electric industries are

tough businesses that require constant professional development. Consumer member-owners may serve on committees, run for a seat on the board, or take another active part in the co-op. But as often as not, their primary involvement in their co-op is in the consumption of its goods or services.

4. Credit unions
Credit unions are actually consumer-owned financial services cooperatives in which every depositor becomes a member-owner. Members may attend the annual meeting and help elect a board of directors that is typically made up of community volunteers, most of them with considerable financial and other relevant areas of expertise. This is quite a difference from big international banking conglomerates with their distant millionaire investor-owners and highly paid directors who have no knowledge of or loyalty to local residents. Following the financial crisis of 2007-2008, many people have realized that financial services provided for the benefit of consumer members rather than for profit is no only better for members, it's better for the world financial system as well. Credit unions, as with all co-ops, come in all sizes--from a single facility with a few score members to huge, multibranch operations that cover lots of territory and employ many local people. Community development credit unions are a special category created by the industry to specifically serve lower income communities.

5. Retail or Purchasing co-ops

Still another type of consumer co-op sometimes given its own category is the retail or purchasing cooperative, sometimes called a shared service cooperative. Many of these co-ops are owned and governed by independent business owners. Best Western motels, True Value and ACE hardware stores, and Carpet One/CCA Global Partners are independently owned businesses that have formed national and international cooperatives to purchase goods and services at rates that will keep their bottom lines in the black. But there are also many successful smaller operations such as a group of independent business consultants or attorneys who want to buy office supplies, insurance, or other products and services together. Some municipalities and even state governments have joined together to own their own electricity, water or telecommunications utilities as well as to buy business services and so forth cooperatively. What unites all of these co-ops is that they seek to improve their efficiencies and/or market competitiveness by "bulk buying" a broad range of goods and services.

6. Social Co-ops
This emerging type of cooperative has a social mission beyond service to its members. It may have to do with improving working conditions for immigrant women, such as the co-ops formed by WAGES (Women's Action to Gain Economic Security), or it may have to do with providing alternative health services at affordable costs to their community, as the Third Rootcommunity health center does in Brooklyn. Owned and governed by worker or consumer members, the co-op also may have a non-profit social mission.

What is A Cooperative ? A cooperative is a duly registered association of persons, with a common bond of interest who have voluntarily joined together to achieve a lawful common social or economic and making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.
Chapter I Art.2 Sec.8 of R.A. 6938

By forming a cooperative, you pool money, human resources and talent to build capital, and work together to produce more goods and raise incomes. Through cooperatives, you can look for other sources of loans at low interest rates instead of borrowing from informal lenders or usurers. The cooperative can also be a mechanism for marketing your produce.

Objectives of a Cooperative The primary objective of every Cooperative is to provide goods and services to its members and thus enable them to attain increased income and savings, investments, productivity and purchasing power and promote among them equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing without however, conducting the affairs of the cooperative for eleemosynary or charitable purposes. Objectives of a Cooperative Every Cooperative shall conduct its affairs in accordance with Filipino culture and experience and the universally accepted principles of cooperation such as: Open and Voluntary membership- membership in a cooperative shall be voluntary and available to all individuals regardless of their political, racial or religious background or beliefs. Democratic Control- cooperatives are democratic organizations. Its affairs shall be administered by persons elected or appointed in a manner agreed upon by members. Members of primary cooperatives shall have equal voting rights on an one-member-one vote principle, while a secondary or tertiary cooperative shall have voting rights as delegate of members-cooperatives, but such cooperatives shall have only five (5) votes. The votes cast by the delegates shall be deemed as votes cast the members thereof. Member Economic Participation- members contribute equitably to and control the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities as a approved by the membership.

Autonomy and Independence- cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations (including governments) or raise capital from external sources, they do so on terms that ensure democratic control by the members and maintain their cooperative independence. Education, Training and Information- cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general publicparticularly young people and opinion leaders about the nature and benefits of cooperation. Cooperation among Cooperative - cooperatives serve their members more effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures. Concern for the Community- cooperatives work for the sustainable development of their communities through policies approved by their members. Types of Cooperatives Credit Cooperative promotes thrift and savings among its members and creates funds in order to grant loans for productive and provident purposes. Consumer Cooperative Producers Cooperative Marketing Cooperative Service Cooperative Multi-Purpose Cooperative The primary purpose is to procure and distribute commodities to members and non-members. undertakes joint production whether agricultural or industrial. engages in the supply of production inputs to members, and markets their products; engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication and other services combines two (2) or more of the business activities of these different types of cooperatives.

What are the Categories of Cooperatives Cooperative shall be categorized according to membership and territorial consideration as follows: In terms of membership, cooperatives shall be categorized into: Primary The members of which are natural persons of legal age; Secondary The members of which are primaries; Tertiary the members of which are secondaries upward to one (1) or more apex organizations. Those cooperatives the member of which are cooperatives shall be known as federation or unions, as the case may be; and in terms of territory, cooperative shall be categorized according to areas of

operations which may or may not coincide with the political subdivisions of the country. What are the kinds of Membership in a Cooperative A cooperative has two kinds of members: regular members and associate members. A regular member is entitled to all the rights and privileges of membership as stated in the Cooperative Code and the coops by laws. An associate member has no right to vote and be voted upon and is entitled only to such rights and privileges provided by the cooperatives by laws. A cooperative organized by minors shall be considered a laboratory cooperative and must be affiliated with a registered cooperative. Cooperative Practices Cooperatives follow certain operational guidelines. These are practical response to local needs. Some are adopted from standard international practices, others are local innovations. But all these are aimed at perfecting cooperative operations. They are: a. Capital Formation b. Cash Trading c. Selling at Market Price d. Cooperatives can avoid Destructive Competition e. Constant Expansion f. Quality Standardized Goods g. Cooperative Wholesale or Inter-lending (cooperative bank) h. Minimize Expenditures

What are the purposes in Organizing a Cooperative 1. 2. 3. 4. 5. 6. 7. 8. 9. To encourage thrift and savings mobilization among the members; To generate funds and extend credit to the members for productive and provident purposes; To encourage among members systematic production and marketing; To provide goods and services and other requirements to the members; To develop expertise and skills among its members; To acquire lands and provide housing benefits for the members; To insure against losses of the members; To promote and advance the economic, social and educational state of the members; To establish, own, lease or operate cooperative banks, cooperative wholesale and retail complexes, insurance and agricultural/industrial processing enterprises, and public markets; 10. To coordinate and facilitate the activities of cooperatives; and 11. To undertake any and all other activities for the effective and efficient implementation of the provision of R.A.6939. How do you organize a Primary Cooperative? Organizing a cooperative can be complex and simple. It requires an understanding of the basic needs of the prospective cooperative members. It demands patience from the organizer who must make the cooperatives long-term goals and objectives, and its visions a real part of the members lives. But it can be too easy because the Cooperative Code of the Philippines (RA 6938) has devised very clear-cut steps for the cooperative organizer and members. The following are the basic information that the prospective members should understand before organizing a cooperative.

What are the general steps in forming a Cooperative ? There are six steps suggested in setting up a cooperative. FIRST. Get organized. You must have at least 15 members to do that. At once determine the common problems you would want solved and the basic needs you would want provided for through a cooperative. You may want to include increasing your production, marketing your produce, credit assistance, power generation, banking or insurance and other similar needs. Determining your problems and needs will also help you classify the kind of cooperative you will be organizing. Even before a cooperative is set up, a dedicated core group people who will do all the organizational and paper works is a must. From this core group, working communities may be formed to set things moving. These committees may include membership, finance, executive, secretariat to name a few. SECOND. Prepare a general statement called an economic survey. This statement will help you measure your cooperatives chances of success. THIRD. Draft the cooperatives by-laws. The by-laws contain the rules and regulations governing the operation of the cooperative.

FOURTH.

Draft the articles of cooperation. Mandatory contents of the articles of cooperation. The articles must contain the items mentioned in the article, namely: (a) the name of the cooperative, which must include the word cooperative; (b) the purpose or purposes and scope of business of the cooperative; (c) the term of existence of the cooperative; (d) the area of operation and the postal addresses of the registrant-cooperators; (f) the common bond of membership; (g) the names of the directors who shall manage the cooperative; (h) the amount of share capital; (I) the names and residences of its contributors, and (j) the type of cooperative, whether it is primary, secondary or tertiary. Secure bond of your accountable officer(s), normally the treasurer, or the treasurer and the manager. The amount of the bond is to be decided upon by Board of Directors, based on the initial net worth of the cooperative which includes the paid-up capital, membership fees and other assets of the cooperative at the time of registration.

FIFTH. the

SIXTH. (CDA).

Register your cooperative with the Cooperative Development Authority You must submit four (4 ) copies each of the Economic Survey, by-laws and Articles of Cooperation, and Bond of Accountable Officer(s).

In every step, you may consult CDA. The CDA emphasizes education as a key to the success of cooperatives. How to Register a Primary Cooperative Once you have organized your cooperative, your work does not end there. The cooperative now needs a legal personality so that it can do all the acts that a cooperative is supposed to perform. With a legal personality, the cooperative can borrow money, sell its goods and services, deliver

goods and enter into all sorts of business transactions. So that your cooperative can do all these, you must register your cooperative. Here is how you do it. Where to Register your Cooperative The Cooperative Development Authority (CDA) is the only government agency mandated to register all types of cooperatives. Its main office is located at 5th and 6th Floors, Ben-Lor Building, 1184 Quezon Avenue, Quezon City. To facilitate the flow of its services, extension offices have been set up. These are located in (a) Dagupan City; (b) Tuguegarao, Cagayan; (c) Baguio City; (d) San Fernando, Pampanga; (e) NCR-Quezon City; (f) Calamba, Laguna; (g) Naga City; (h) Iloilo City; (I)Cebu City (k) Kidapawan; (l) Tacloban City; (m) Davao City; (n) Zamboanga City; and (o) ButuanCity. What are the general requirements for Registering a Cooperative You will need four copies each of the Economic Survey, By-laws and Articles of Cooperation. The Articles of Cooperation should be duly notarized and accompanied by the following: Bonds of the accountable officers (any directors, officer and employee) handling funds, securities or properties on behalf of the cooperative. The board of directors determine the amount of bonds required based on the initial net worth which shall include the paid-up capital, membership fees and other assets of the cooperative at the time Sworn statement of the treasurer duly notarized showing that at least 25% of the authorized share capital has been subscribed, and at least 25% of the total subscription has been paid. The paid-up capital must not be less than PhP 2,000.00. It must be noted that no member may own more than 20% of the subscribed share capital; and each share must not be less than PhP 1.00.00 CDA Memorandum Circular No. 02-03, Series of 2002 thereby amending Memorandum Circular No. 92-004, Series of 1992 provides the schedule of fees as follows:

TYPE OF COOPERATIVE Laboratory Cooperatives Primary Cooperatives

PAID-UP CAPITAL

FEES No Registration Fees

P 2,000.00 P 500,000.00 P 500,001.00- up

P 500.00 1/10 of 1% of the paid-up share capital P 1,000.00 1/10 of 1% of the paid-up share capital P 3,000.00

Secondary Cooperatives

P 2,000.00 P 500,000.00 P 500,001.00- up

Tertiary Cooperatives