USEC. ORLANDO R. RAVANERA, CSEE, CEO VIChairman

Office of the President of the Philippines

Department of Trade and Industry

COOPERATIVE DEVELOPMENT AUTHORITY

“The Philippine Cooperative Development Plan and Roadmap”

Cooperative Chairpersons and CEOs DialogueDays Hotel, Tagaytay City

July 23-24, 2019

Framework of the Presentation

• Where are we now?

• Where do we want to go?

• How to get there?

Cooperative Statistics 2018Based on FY 2017 Report on Operations

➢ 18,065 Operating Coops

Reporting Coops by Asset Size

No. of Cooperatives

• About 18,065 cooperatives with members coming from all walks of life where

•82.2% are micro •10.5% are small

belonging to the vulnerable sectors needing government development intervention such as technical, financial and institutional building supports to form viable business enterprise and build a competent governance.

Employment Generation

• The 18,065 coops contribute 520,758

jobs and indirect employment of

1,923,047

• The jobs created thru coops contribute

to indirect taxes of PhP3.9

Billion

REALITY BITESWHERE ARE WE NOW IN TERMS OF:

SOCIAL JUSTICE & PEOPLE EMPOWERMENT

ENVIRONMENTAL PROTECTION

ECONOMIC DEVELOPMENT

PEACE & SECURITY

CONTRASTING REALITY

19 Fossil fuel companies earning

wrecking US$5 Trillion/year or

US$10 Million/minute

LOW WAGES

• P481 minimum wage vs

P1,089 family living wage (NCR)

• Real wage unchanged – P238 in 2000 to P248 in 2010

CONTRASTING REALITY

Diesel Powered Plant = 10

Coal-fired Power plants = 19 Generating 7432 MW

CONTRASTING REALITY

Cooperative Broadcasting Federation of Mindanao

Cooperatives’ Tool for Education, Promotion and Advocacy

JOB CRISIS

• 14 Million Filipinos

un / under-employed

• 6,000 Filipinos leave

daily to work abroad

ECONOMIC REALITY

GROSS INEQUALITY

• 66 million Filipinos live on just P125 a day (IBON)

• Wealth of 25 richest Filipinos = combined

income of 76 million Filipinos

• Farmers are the one feeding the nation and yet their dining table have no food

HEALTH

• 68% of personal health expenses are out-of-pocket

• 6 out of 10 die without seeing a doctor

• 80,000 infants die of curable diseases every year

SOCIAL REALITY

HOUSING

• There are approximately

61,000 families in urban poor communities

WATER CRISIS

Source: IBON

BIODIVERSITY HOTSPOT

DEGRADED COAST

• 70% of reefs at high/very high risk, among world’s “coral hotspots”, 76% of mangroves lost

• 4th country in Asia with most number of threatened species (221 fauna, 526 flora)

• 67% of river systems unsafe

• 58% of groundwater contaminated

• 25 major rivers biologically dead

DEFORESTATION

• The islands that make up the Philippines used to be all forested. Today only 35% of those forests remain.

• 17 million hectares of dipterocarp forests were lost in the last 100 years

ENVIRONMENTAL REALITY

Source: IBON

PEACE & SECURITY REALITY

PEACE & SECURITY REALITY

The shift now is…

From the individualized pursuit of wealth and self-

aggrandizement to COLLECTIVE EFFORTS

(in solidarity).

❑ Coalitions of the poor to collectively have access and control over their resources

❑ A vehicle of empowerment to democratize wealth and power and therefore lessen economic and social disparities

DNA of:

• Members-owned

• Value-based

• Sustainable

19

olv

Three Zones of TransitionZONE 1

BREAKDOWN

EXTINCTION

• Powerlessness of the people• No access to resources• Lack of capabilities/opportunities•Conventional Agriculture•Highly skewed land ownership•Oppressive Marketing System

Degradation of Values and

Ecosystems

Social Injustice/Gross

Inequities

Global Financial Crisis

Apathy

Conflict/Violence

ZONE 2

BREAKTHROUGHCOOPERATIVISM :A Transformative Leading Edge

➢ A Vehicle for lasting PEACE, thru

peace-building

ZONE 3

TRANSFORMATION

SUSTAINABLE FUTURE

•Social Justice

•Social Equity

•Meaningful People’s

Participation

•Meeting the Millennium

Development Goals

•Sustainable Development

Principles Institutionalized

➢ Ecologically Sustainable,

Socially Equitable

Development

“Ang mga kooperatiba po ang kaagapay ng pamahalaan sa

pagtataguyod ng systemang patas at

maunlad. Ang koopertiba ang katuwang ng

pamahallaan laban sa kahirapan at katiwalian”

➢ A Tool of Empowering the poor and

the vulnerable to reduce poverty

➢The DNA of cooperatives clearly

states that a cooperative is:

a. Member’s owned

b. Value-based

c. Sustainable

d. Thus, growth is certainly inclusive

and sustainable

➢ The principles and practices give

high adherence to transparency,

accountability, participation and

democratic control.

➢ Concern for community includes the

global involvement to mitigate climate

change and integrity of environmentHis Excellency Pres. Benigno Simeon C.

Aquino III

Dehumanizing Poverty

Marginalization of

People and Resources

The CDA Path is Anchored on the:

RA 6939 - powers, functions and responsibilities

Cooperatives as instruments of EQUITY, SOCIAL JUSTICE and ECONOMIC DEVELOPMENT (Art. XII. Sec 15 of the 1987 Constitution)

➢ Social injustice is seen in the life of farmers tilling land not their own; if they own the land, they do not control the mode of production and marketing.

➢ Social injustice is glaring in the life of Filipinos consumers buying products that have passed 5 marketing layers

➢ Social injustice is lived by 11 million Member-consumer-owners (MCOs) of Electric Cooperatives whose capital share of some P500 Billion until now are not recognized.

Section 1, Article II of the By-Laws of ECs

The members are the joint owners of the Cooperative, with

their individual equity in its assets determined on the basis of

their patronage.”

ELECTRIC COOPERATIVE OWNERSHIP

Section 2[b], Article VII of By-Laws of ECs

➢ “The books and records of the Cooperative shall be set up and kept in such a manner that at the end of each fiscal year the amount of capital, if any, so furnished by each patron is clearly reflected and credited in an appropriate record to the capital account of each patron, and the Cooperative shall within a reasonable time after the close of the fiscal year notify each patron of the amount of capital so credited to his account.”

ELECTRIC COOPERATIVE OWNERSHIP

Bundled Rate as of 2000

FIBECO BUSECO

A. Power Cost

NPC Basic Power Cost

Allow for System Losses

Total Power Cost

B. Other Operating Expense

Total Operating Cost

C. Total Amortization Cost

D. Provision for Reinvestment

E. NPC Account - Arrears

TOTAL COST TO BE RECOVERED Php

1.3238

0.1398

1.4636

0.8179

2.2815

0.3621

0.1106

2.7542

1.3238

0.1505

1.4743

0.8421

2.3164

0.3208

0.1070

2.7442

ELECTRIC COOPERATIVE OWNERSHIP

Basis of OWNERSHIP of FIBECO Member-Consumer

1. Amortization Cost 0.3621

2. Reinvestment Fund 0.1106

Member’s Patronage Capital Contribution P 0.4727

0.4727

ELECTRIC COOPERATIVE OWNERSHIP

Member’s Patronage Capital Contribution P 0.4727 /kWh

Multiply by your Monthly kWh Consumption 200kWh (example)

Total Monthly Contribution P 94.54

ELECTRIC COOPERATIVE OWNERSHIP

x 12 mo.

1,134.48Yearly Contributionx 20 yearsYears of Being a member

P 22,689.60

Basis of OWNERSHIP of FIBECO Member-Consumer

RA 6939 - powers, functions and responsibilities

The CDA Path is Anchored on the:

Laudato Si’

“New forms of cooperation and community organization

can be encouraged in order to defend the interests of

small producers and preserve local ecosystems from

destruction.”

The CDA Path is Anchored on the:

Latest Engagement of the CDA

CDA-CCC Partnership

Latest Engagement of the CDA

CDA-Small Business Corp Partnership for P3 Program

Latest Engagement of the CDA

CDA-NCIP Partnership

Latest Engagement of the CDA

CDA-Indian Embassy Partnership

Latest Engagement of the CDA

Organizing the Wounded Soldiers into Cooperative

Latest Engagement of the CDA

Bangon Marawi Rehabilitation Thru Cooperativism Program

Constitutional Provision

The 1987 Constitution of the Philippines

contain provision recognizing

cooperatives as legal personalities with

economic and social functions and

mandating the creation of an agency to

promote their viability and growth for

the good of the nation.

Where do we want to go?

10-point socio-economic agenda of the Duterte Administration

The CDA Path is Anchored on the:

Where do we want to go?

UN Sustainable Development Goals

The CDA Path is Anchored on the:

Where do we want to go?

How to get there?

Philippine Cooperative Development Plan (PCDP)

• To highlights the

importance of

developing mutually-

empowering

partnerships focused

on sustained efforts to

address needs,

problems and poverty

at its roots.

• To address not only the

lack of material

resources or income,

but also the absence of

capabilities,

opportunities and power

that will allow the

individual to fully

assume her/his role as a

member of the

community.

The Cooperative Development Authority (CDA), initiated the

formulation of the Philippine Cooperative Development Plan

2018-2022:

VISION

The Philippine Cooperative Development Plan for 2018-2022 is

anchored on a collective vision of the cooperative sector which

is : "Towards a Globally Competitive and Resilient Cooperative

Industry for A Progressive Nation”.

GOALS

Cascading from this vision is the cooperative sector's strategic goals which

are:

• Enhanced Policy, Regulatory Environment and Partnerships;

• Improved Institutional Development, Governance and Management;

• Sustained Human Capital Development among Cooperatives;

• Globally Competitive Cooperative Products and Services;

• Increased Access to Finance; and

• Increased Access to Markets and Infrastructure

Principles

a) subsidiarity and complementation

b) circumscribed governance

c) empowerment

d) strategic alliance and critical collaboration

e) accountability.

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:

CDA Charter

“ The Cooperative Development Authority Charter of 2019”

An act reorganizing and strengthening the Cooperative

Development Authority, repealing for the purpose Republic Act

no. 6939, creating the Cooperative Development Authority

CDA Charter

In furtherance of this policy, the National Economic and Development

Authority (NEDA) and the Department of Trade and Industry (DTI) shall

include the promotion of growth and expansion of cooperatives as

major and indispensable components of national development plans.

The State shall, except as provided in this Act,

maintain the policy of non-interference in the

management and operations of cooperatives

Section 5. The Board of Directors – the collegial policy making body of the authority

ChairpersonWith the rank and privilege of an Undersecretary

Board of Directors - with the rank and privilege of an Assistant Sectary

Credit

and

Financial

Services,

Banking

and

insurance

Consumers,

Marketing

Producers

and

logistics

Human

Services:

Health,

Housing,

Workers

and

Labor

Service

Education

and

Advocacy

Agriculture,

Agrarian,

Aquaculture,

Farmers,

Dairy and

Fisherfolk

Public

Utilities:

Electricity,

Water,

Communicat

ions, and

Transport

The Chairman and the BOD shall be appointed by the President of the Philippines and chosen among the nominees from the cooperative sector.