3rd Quarter Issue 2017

CONTRIBUTING TO SDGs

So declared the United Nations General Assembly on Sep-

tember 25, 2015, in formally adopting the Social Develop-

ment Goals (SDG) as embodied in the outcome document,

“Transforming our world: the 2030 Agenda for Sustaina-

ble Development.” The SDGs embody humanity’s bold vi-

sion to put people and planet on a sustainable path by 2030.

“As we embark on this great collective journey, we pledge

that no one will be left behind,” the declaration further said.

The SDGs with 17 Goals and 169 targets came into effect on

1 January 2016.

The International Cooperative Alliance, the global body rep-

resenting all cooperatives around the world, has committed

the coop movement’s full support to the SDGs. It launched

Co-ops for 20/30, “a campaign for cooperatives to learn

more about SDGs, commit to pledges to contribute to

achieving the SDGs and report their progress.” It has identi-

fied targets within the 17 Goals as most relevant to coopera-

tives. The identified targets are grouped into three main ac-

tion areas – namely: eradicating poverty, improving access

to basic goods and services, and protecting the environ-

ment.

Coops in Mindanao and the SDGs

The UN’s pledge that no one will be left behind resonates

perfectly with the new vision adopted by the cooperative

movement in Mindanao – “all members enjoy better quali-

ty of life.” If MASS SPECC and its affiliate cooperatives pur-

sue this vision and achieve it, they will have contributed to

the attainment of the SDGs.

On the first action point on eradicating poverty (SDG 1, 2 &

10), cooperatives can certainly do a lot. The 2015 Poverty

Statistics for Basic Sectors report by the Philippine Statistics

Authority (PSA) established that farmers, fishermen and

children were the poorest sectors of the population in the

Philippines. Poverty incidence in the country in 2015 was

placed at 21.6% on the average. Poverty incidence among

farmers was the highest at 34.3%, followed by fishermen at

34%, and children at 31.4%. Other basic sectors with poverty

incidence above the national average were the self-

employed, unpaid family workers, and women.

Cooperatives count among their membership these basic

sectors. We still do not have accurate data on the proportion

of these sectors to total membership, but it is safe to say

that they make up a significant number, particularly for

open-type cooperatives and those located in rural areas. By

giving special attention to this segment of their member-

ship, cooperatives can contribute concretely to the SDGs.

Giving special attention means, firstly, putting in place an

information system that can establish the real-life situation

of these sectors and track the improvement in their lives.

This system should capture such basic information as the

demographics of their household, including education of

their children, total household income, the nature and

continued on page 2

We resolve to build a better future for all people, including the millions who have been denied the chance to lead decent,

dignified and rewarding lives and to achieve their full human potential. We can be the first generation to succeed in

ending poverty; just as we may be the last to have a chance of saving the planet. The world will be a better place in

2030 if we succeed in our objectives.

Farmers and fishermen are among the poorest of the poor. They are

also members of many cooperatives.

2

sources of this income, their specific needs, etc. It also

means providing support systems (policies, processes, pro-

grams, products and services) that cater to their specific

needs and requirements. By tracking what is actually hap-

pening with these members on a regular basis, the cooper-

ative can establish whether these support systems are

effective or are contributing to “better quality of life” of

these members.

Some concrete ideas in terms of support systems were al-

ready put forward last year, 2016, during the annual gath-

ering of chairpersons and managers of cooperatives affiliat-

ed to MASS SPECC. For SDG Goal 1 (no poverty), Goal 2

(zero hunger) and Goal 10 (reduced inequalities), the fol-

lowing programs and services were suggested (please see

complete list in the accompanying table):

Provide financial assistance, equipment, and marketing

assistance to farmers and fisherfolks

Introduce and encourage the adoption of technology

among farmers and fisherfolks

Institutionalize poverty reduction programs and services

Provide livelihood programs with training activities

Promote social enterprises to communities to create more

jobs for the people

Conduct training on proper farming and management of

small-scale business

On the second action point on improving access to basic

goods and services, concrete suggestions were also made

towards the achievement of SDG Goal 4 (quality educa-

tion), Goal 5 (gender equality), Goal 6 (clean water and san-

itation), Goal 7 (affordable and clean energy), and Goal 8

(decent work and economic growth).

On the third action point on protecting the environment,

individual cooperatives are already undertaking programs

and activities to this end. More initiatives for cooperatives

to undertake were suggested towards the achievement of

Goal 11 (sustainable cities and communities), Goal 12

(responsible consumption and production), Goal 13

(climate action), Goal 14 (sustainable life below water), and

Goal 15 (sustainable life on land).

Individual and Collective Actions

Indeed, cooperatives can be said to be doing some of these

initiatives already on their own. Without doubt, they will do

more as they become more aware of the importance of the

SDGs. But individual actions may not be enough, given the

scale and urgency of the problem.

Much more can be done and greater results can be

achieved if cooperatives combine resources and work to-

gether in addressing the problem. A case in point is finding

a more effective way of helping farmer members out of

poverty. Right now rice farmers get only a third or even less

of the final value of their produce when this reaches the

table of consumers. This is because of the existing market

structure that is dominated by traders. To earn more in-

come, farmers need more than production credit; they

need non-financial services such as farm inputs, post-

harvest facilities, transport, market information and link-

age, technology, even infrastructure support. One cooper-

ative can only do so much in providing these additional ser-

vices but by combining resources or working together with

other cooperatives much more can be achieved.

The same can be said on the second action point on im-

proving access to basic goods and services. One unique ad-

vantage of cooperatives is that they have within their

membership both producers and consumers. Cooperatives

combined have an internal market that can support big

investments in services and infrastructure that can benefit

both the producers and consumers – investments that can

best be undertaken by cooperatives together. And so with

the third action point on protecting the environment. Com-

bined actions by cooperatives here can produce greater

results and impact.

If so, the 6th principle of Cooperation Among Cooperatives

will have real meaning and value. RMV

INITIATIVES BY COOPERATIVES TOWARDS ACHIEVING SDG

GOAL 1: NO POVERTY

Provide financial assistance, equipment, and marketing assistance

to farmers and fisher folks

Introduce and encourage the adoption of technology among farmers

and fisher folks

Institutionalize poverty reduction programs and services

Provide livelihood programs with training activities

Provide greater access to capital

Create more jobs and provide subsidies to farmers

Promote organic farming as a profitable activity

Lessen agricultural to industrial land conversion

Upgrade farming technology

Promote alternative learning programs

GOAL 2: ZERO HUNGER

Strengthen the business enterprise of the cooperative to provide

enough money for members

Promote social enterprises to communities to create more jobs for

the people

Educate and empower the population by promoting technical cours-

es that they may use immediately (e.g. K-12 technical-vocational

track; TESDA courses (technical skills)

GOAL 10: REDUCED INEQUALITIES

Provide equal opportunities to all members to avail of livelihood

programs, agricultural and production financing

Conduct training on proper farming and management of small-scale

business

3

During the second round of Ownership Meetings in Octo-

ber 2016, MASS SPECC conducted a survey of coop officers

representing cooperatives from all the regions of Minda-

nao. The purpose of the survey was to establish a clearer

profile of the coop leaders who are at the forefront of co-

operative development in this part of the country.

Board members and managers attended this bi-annual

gathering of cooperatives affiliated to MASS SPECC. A to-

tal of one hundred seventy-eight (178) board members par-

ticipated in the survey, the results of which may well paint

a general picture of who our board members are.

In this issue of the Coop Monitor, we start with the profile

of the board of directors, divided into two parts. The se-

cond part will be published in the next issue.

KNOW YOUR BOARD OF DIRECTORS

GENDER

According to the survey results, the

leadership of cooperatives is still

largely in the hands of male members

of the board. Male members currently

make up 61% of total board member-

ship in all the regions while female

members make up 39%. No compara-

ble data can be obtained from the

previous years, so it cannot be said

whether the proportion of women in

the board has been increasing or de-

creasing over the years.

By region, cooperatives in the Zam-

boanga, Basilan, Sulu and Tawi-tawi

area appear to be an exception because

female members dominate the board

at 80%. This result may be due to the

fact that most of the respondents from

this region came from Zamboanga

City where women constitute the ma-

jority of members in their respective

cooperatives. Otherwise, majority of

the board members are male in every

region. In region 10, in particular, the

proportion is even more skewed to-

wards male members at 71%.

AGE

The age profile of the board across the

regions confirms what has been known all along – that ma-

jority of board members of cooperatives belong to the old-

er generation. Over 58% of the board are aged 54 years

and above, with more than a third of them (36%) over 61

years. Cooperatives in region 9 stand out as dominated by

older leaders at over 72% of the total, more than 47% of

whom are aged 61 years and above. Only in Caraga region

does it appear that majority (55%) of the board are middle-

aged (between 40 and 53 years old), followed by region 12

with 46% belonging to the middle-aged group.

No less significant perhaps is the data indicating that only a little over 2% of board members are aged 32 years and be-low. In fact, in all regions, except region 11 and 12, there’s hardly anyone belonging to the younger sector of the pop-ulation.

continued on page 4

Gender Profile of Board

Age Profile of Board

4

In terms of civil status, eighty-three

percent (83%) of the board are

married while 5% are single. On

the other hand, 12% are wid-

owed.

EDUCATIONAL BACKGROUND

A full third (33%) of board mem-

bers have either finished or are

finishing post graduate studies

across all the regions. Combined

with college graduates (44%),

they make up over two-thirds of

the board, indicating the prefer-

ence by coop members in electing

to office people with higher edu-

cational qualification.

Region 10 has the highest percent-

age of board members with post-

graduate education (45%), fol-

lowed by region 11 (40%), region

9 (35%) and Zambasulta region

(33%).

Caraga region has the highest

number of college graduates in

the board at 64%, followed by

region 12 (56%) and region 9

(45%). Board members with high

school and college level educa-

tion still constitute a significant

number at 24% of the total, indi-

cating that coop members look

beyond educational qualification

when deciding who to elect to the

board. Zambasulta region has the

highest number of board mem-

bers with high school and college

level education at over 33%, followed by region 11 at over

30%, and region 10 at 25%.

PROFESSION/OCCUPATION

There is a good mix of board members who are employed in

either private or government service, those who are either

self-employed or in business, and those who have already

retired from active work. Across all regions, there are more

employed (42%) than self-employed or are in engaged in

business (32%). Retirees also make up a good proportion of

board members at 26% of the total.

Those employed make up the greater majority of board

members in region 10 at 82% while in Caraga they consti-

tute over 56% of the total. Half of board members (50%) are

in business or self-employed in region 11 where retiree

board members are also of significant number (34%). Re-

gion 9 has the most number of retirees serving in the board

at 38% compared to other regions.

continued on page 5

Occupation Profile of Board

Education Profile of Board

5

COMPUTER

LITERACY

Majority of board

members are com-

puter literate and

use the internet in

private or in their

work. They make

up 66% of the to-

tal. A significant

number (34%) of

them, however,

neither use the

computer nor

browse the internet. The highest proportion of non-users

are in region 12 (45%), followed by region 9 (36%), Zam-

basulta (33%), and region 11 (32%).

COOP INVOLVEMENT

Finally, let’s look at the number of years board members

have been serving as officers in their respective coopera-

tives. Overall, there is greater tendency for coop officers to

stay long in service once they get elected to the board and

elected or appointed to any of the committees. The data

show that 65% of board members in all regions have

served as officers in their cooperative for more than 3

terms (6 years and above). Over 39% of them have served

for 11 years and above while 19% have served for 16 years

and above.

A good question to ponder then is: how open are coopera-

tives to newcomer board or committee members, especial-

ly the younger generation of coop leaders? RMV

Adaptation to Technology

COOPERATIVES ARE SIGNIFICANT ACTORS IN NATIONAL ECONOMIES

In Demark, consumers cooperatives hold 36.4% of consumer retail market (2007).

In New Zealand, cooperatives are responsible for 95% of the dairy market and 95% of export

dairy market.

In Uruguay, cooperatives are responsible for 90% of milk production, 30% of wheat.

6

MORE FILIPINOS PREFER

CASHLESS PAYMENT

Only nine percent (9%) of Filipinos used electronic

payments for personal expenses (known as personal

consumption expenditure) in 2016. This compares

to 54% of Singaporeans and 30% of Malaysians,

according to Visa’s Consumer Payment Attitude

Survey of 6 markets in Southeast Asia. Other countries in-

cluded in the survey were Indonesia, Thailand and Vietnam.

The same survey, however, revealed that there was a 43%

drop in Filipinos who preferred cash in 2016. Over half of Fili-

pinos who have tried electronic payment prefer it to using

cash. In 6 countries surveyed, Filipinos were the most inter-

ested in contactless payment at 74%, and used them for gro-

ceries (58%), bills and fines (32%), and food and beverages

(26%).

Five hundred randomly sampled people between the ages of

18 and 55 participated in the survey in the Philippines. Seven-

ty-one percent (71%) of them shopped online using personal

computers at least once a month, while 50% used their

smartphone to shop at least once a month in 2016.

The regional average was 80% for shopping online on com-

puters and 71% via smartphone.

Growth in electronic commerce was at 30%, higher than in

previous years. Personal computers remained the preferred

device when shopping online.

ACCESS TO FORMAL BANKING SERVICES STILL

LIMITED IN PROVINCES

Access to banks and their financial services in 75 provinces in

the country have remained illusive in the period between

2015 and 2017, according to the Inclusive Digital Finance Re-

port released recently by FINTQ, a subsidiary of PLDT Inc.

Thus, many provinces have remained unbanked.

In access to loans, for instance, the report noted that borrow-

ers from Metro Manila took an average share of 86.7% of to-

tal domestic loans between 2001 and 2017. The rest of the

loan pie was distributed among borrowers from the less de-

veloped provinces. The report also noted that 97% of total

domestic loan volume in 2017 was accounted for by

23 more developed provinces.

FINTQ has an online loan marketplace called Lendr,

which continues to draw users from third to fifth-

class municipalities. It said that seven out of ten us-

ers of Lendr come from outside Metro Manila, indi-

cating that Filipinos in the provinces are turning to

digital channels for loans in the absence of bank branches in

these areas.

FINTQ recently launched the KasamaKa platform, a digital

referral system that invites more Filipinos to tap digital

banking rather than resort to informal and black-market

transactions.

Meanwhile, the

Bangko Sentral ng

Pilipinas has wel-

comed the influx of

electronic financial

products because these new products help broaden financial

inclusion in the country.

In a recent speech before the Bankers Institute of the Philip-

pines, BSP Governor Nestor A. Espenilla said the central

bank is bent on allowing new financial products, particularly

those that make use of digital channels, in order to help

more Filipinos gain access to formal banking services. He

said banks and similar firms have to keep pace with emerg-

ing financial technology because of rising competition. At

the same time, the new BSP Governor said, the central bank

is currently drafting enhanced rules on information technol-

ogy in order to tighten rules to guard against cyber threats.

MICROFINANCE LOANS BY BANKS INCREASING

The Philippine banking system continues to increase its ex-

posure in microfinance loans, granting a total of 13.226 bil-

lion pesos in the quarter ending March 2017. This represents

a 23.1% increase over the same period last year.

continued on page 7

More Filipinos now prefer to use

electronic payments rather than

cash, according to the latest

survey on consumer payment

attitude.

7

The number of microfinance borrowers increased during

the period from 1.448 million to 1.686 million borrowers.

Meanwhile, micro-deposits also increased from 5.783 billion

pesos to 7.67 billion pesos.

These figures show that Philippine banks have responded

to the prodding by the Bangko Sentral ng Pilipinas for them

to reach out to unbanked areas of the country and make

the financial system more inclusive. The BSP has been re-

laxing the banking rules for this purpose.

Banks have used microfinance as a platform for the poor

and low-income households to have access to formal credit.

Through their micro-banking offices, banks are able to pro-

vide them not only small loans but also facilities for easy

savings, micro-insurance products, and bills payment.

BUT BANKS NEED TO GIVE MORE LOANS TO SMEs

– BSP GOVERNOR

BSP Governor Nestor Espenilla,

Jr. urged the banks to extend

more loans to “credit-starved”

small entrepreneurs. In a speech

before credit managers recently,

the new governor of the central

bank noted that banks still prefer

to give loans to large corpora-

tions, even if they earn relatively lower interest rates from

these loans. This has created a situation where many small

businesses are shut out of the formal banking system. They

are forced to go to informal sources of credit and pay high-

er interest rates.

Governor Espenilla reminded banks that the MSME sector

accounts for 99.5% of the country’s total number of estab-

lishments and employ 61.6% of the workforce. This sector

also includes 60% of the country’s exporters. Small busi-

nesses are, therefore, important pillars of growth of the

local economy.

Meanwhile, banks continue to fall short of meeting the

quota set by law for lending to agriculture and agrarian re-

form beneficiaries. Under the Agri-Agra Reform Credit Act

signed in 2010, banks are required to allocate at least 10%

of their loanable funds to agrarian reform beneficiaries and

15% to farmers and fisherfolk.

Universal, commercial and thrift banks just lent half of the

P906.5 billion required by law to the farming sector in the

first quarter of 2017. To meet the requirements, they have

opted to avail of alternative methods allowed by law. This

includes investing in special deposit accounts of BSP-

accredited rural lenders, wholesale lending to rural banks,

and loans for public infrastructure that benefit the farming

sector.

Rural and cooperative banks, on the other hand, have sub-

stantially complied and meet the requirements of the law.

RBs and CRBs allotted 16.57% of their loanable funds to

agrarian reform beneficiaries and 29.7% to the farming sec-

tor during the same period.

BSP Governor Nestor

Espenilla, Jr.

8

CARAGA DEVT PLANS CALL FOR

SHIFT AWAY FROM MINING

Existing mines in Caraga will not be al-

lowed to expand, mined-out areas will

be rehabilitated, alternatives to mining

will be explored, and the region’s econo-

my will be diversified away from mining.

This is what the government plans to undertake in the

Caraga region according to its 2017-2022 Regional Devel-

opment Plan (RDP).

Caraga hosts 25 large-scale mining firms, the largest num-

ber of operating mines in any region. While they account

for 90% of regional exports and employ 28,000 skilled

workers, these mines have also caused massive destruc-

tion of the environment in the region.

These mines will still be allowed to operate but only within

their existing areas except watersheds. Rehabilitation of

mined-out areas will be strictly implemented, according to

the government.

Among the areas for diversification are fisheries, agro-

forestry, and eco-tourism. The aim, according to NEDA, is

to “develop more economic drivers that create a balance of

production and environmental protection.”

According to the Philippine Institute of Development Stud-

ies (PIDS) in its recent study, the Caraga region and the

Zamboanga Peninsula have the highest proportion of vul-

nerable households in the region.

The RDP aims to lower poverty incidence in the region

from 30.8% in 2015 to 20.3% in 2022. It also expects em-

ployment to rise to 95.3% from 94.5% currently.

NATIONAL BROADBAND PLAN LAUNCHED

The national government launched in June this year its na-

tional broadband plan, which aims to make access to the

internet free and available to all areas in the country. With

this infrastructure, the national government portal

(www.gov.ph) will become the one-stop shop for all gov-

ernment services.

The newly-created Department of Information and Com-

munications Technology (DICT) is spearheading this devel-

opment thrust. The DICT plans to provide free Wi-Fi access

to 100,000 public places nationwide by 2026, which will

include municipalities outside Metro Manila, as part of its

“Pipol Konek” project. A total of 1,435 municipalities now

have internet connectivity, with hot spots in public parks,

schools, hospitals and town halls.

The national government portal, on the other hand, will

have a common platform where databases are interopera-

ble and enable data sharing among government agencies.

It will become an access point for government data to all

citizens, including access to forms and applications. This

means Filipinos can have their business permits, driver’s li-

censes, passports and other government requirements pro-

cessed in one website.

When completed and fully operational, the portal will make

government services transparent and efficient.

For further inquiries, please contact:

INSTITUTE OF CO-OPERATIVE STUDIES (ICS) MASS-SPECC Davao, Dinavill Road, Anahaw Village, MASS-SPECC Cooperative Development Center, Tiano-Yacapin Sts., Ma-a, Davao City Cagayan de Oro City Telefax: (082) 244-1096 Telefax: (088) 856-5753 (ICS line) or (088) 856-2339 loc 16 Website: mass-specc.coop Email: ics@mass-specc-coop.com

The government wants to rehabilitate mined-out areas in the Caraga region,

which hosts the largest number of large-scale mining firms in the country.

Infographics by Business World