fundamentals of cooperative on history

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  • Jo B. Bitonio

    CDA Dagupan Extension Office

  • Rochdale PioneersIn modern form, cooperatives date from 1844, then a group of 28 impoverished weavers of Rochdale, England, founded a mutual-aid society, called the Rochdale Society of Equitable Pioneers.

  • Robert OwenOWEN first cooperative theorist and credited with inspiring the Rochdale Pioneers, who in 1844 began the cooperative movement at Rochdale, Lancashire

  • Although Owen inspired the cooperative movement, others such as Dr William King took his ideas and made them more workable and practical.

    King believed in starting small, and realized that the working classes would need to set up cooperatives for themselves, so he saw his role as one of instruction.

    Dr. William King (17861865)

  • It was here that the first co-operative store was opened.

  • Cooperatives were borne out of the free market economy and the many failures and injustices it has generated. The very first documented cooperative was in fact a reaction to the abuses of capitalism and it can be traced back to 1844 in Rochdale, England where a group of 28 weavers (27 males and 1 female) formed the Rochdale Society of Equitable Pioneers October 24,1844.

  • The Rochdale Pioneers Museum is housed in the building where the Rochdale Equitable Pioneers Society started trading on 21 December 1844. The museum is regarded as the birthplace of the modern co-operative movement

  • Robert Owen Scotland

    William King UK

    The Rochdale Pioneers Great Britain

    Charles Fourier France

    Charles Gide France

    Beatrice Webb UK

    Friedrich Raiffeisen Germany

    Key Theorists

  • UK, France, Germany, Belgium, Austria, Italy, Denmark,Finland, Norway, and Sweden.

  • Cooperatives are playing an increasingly important role worldwide in facilitating job creation, economic growth and social development. Ranging from small-scale to multi-million dollar businesses across the globe;

    Cooperatives are now venturing into new fields of activity, such as information and communication technology, tourism and cultural industries.

    Global Significance of Cooperatives

  • They have historically emerged out of the need to provide goods and services not accessible from the public sector and conventional businesses. As such needs expand and become increasingly complex, cooperatives find more space to meet these needs, providing services while advancing livelihoods and creating jobs in the process.

  • Cooperatives exist in all sectors of the economy around the world, and while they are commercial organizations, they operate within a broader set of values and principles, not only aiming to generate profit.

  • 7 Billion (2011) According to the United Nations, world population reached 7 Billion on October 31, 2011. The US Census Bureau made a lower estimate, for which the 7 billion mark was only reached on March 12, 2012.

  • The country with the largest number of individual members indirectly represented by the Alliance is the United States with 256 million members. In Asia, India following next behind the US with 93.7 million individual members. And then Japan with 77 million individual members.

    The fourth largest number of members is in Iran with 36.9 million individual members.

    All in all, five of the top ten countries, by membership, that the Alliance represents -are in Asia.

    256 M

    93.7 M

    77 M

    36.9 M

  • The worlds largest 300 co-operatives and

    mutuals have grown their turnover by 7.20

    per cent to USD $2.53tn according to the

    2016 edition of the World Cooperative

    Monitor WCM)


  • Employment

    Cooperation in a changing

    world of work: Exploring the

    role of cooperatives in the

    future of work

  • World Cooperative Movement

    it is estimated that cooperatives

    employ some 250 million people.

  • Insurance & Mutuals 39%; Agri and food industries 32%; wholesale & retail trade 19%; Banking and Financial services 6%; Industry and Utilities 2%; Health & social care 1%

  • Hybrid Cooperatives

    Hybrid cooperatives are defined by the ICA as a cooperative that has issued equity shares to non member investors (ICA 2015, p. 100). We here consider a broader approach, as a substantial challenge for cooperatives is the discussions around hybridized forms of governance, where there may seem to be an appearance of autonomy, whilst control is continually conferred to the same actors (Roelants et al. 2009, p. 73).

  • To the GDP of the worlds ninth largest economy

    Source: ICA:2010

  • Isomorphization has two distinctive features:

    the alignment of cooperatives on capitalist

    enterprises and the process which concerns

    enterprises formally constituted and incorporated in

    a legal form different from cooperative status that

    tend to operate according to some cooperative

    principles. According to the ICA, it is important for

    cooperatives themselves to resist any tendency to

    mimic investor-owned enterprises in operational,

    management and governance practices which do

    not reflect the distinctiveness of cooperatives


  • A similar idea was pointed out as the

    degeneration thesis: market pressures

    tend, over the course of time, to lead to

    cooperatives becoming similar to other

    kinds of enterprise, particularly capitalist

    enterprise (Vienney 1980; Cornforth et al.

    1988; Sommerville 2007).


  • False CooperativeAs they do not voluntarily comply with the

    cooperative principles or do not follow the principles at all, false cooperatives are entities which try to elude more restrictive rules without necessarily being moved by any cooperative ideal. The issue of what is also called pseudo cooperatives (Roelants et al. 2014, p. 111) is closely related to labour, in particular the compliance with labour standards.

  • False CooperativeThe ILO recommendation No. 193 emphasises

    the need to ensure that cooperatives are not set up for, or used for, non-compliance with labour law, or used to establish disguised labour relationships. Hence, national policies are invited to ensure that labour legislation is applied in all cooperatives and combat pseudo cooperatives that violate workers rights.

  • Rural Credit Bill

    1907 1915Rural Credit ActGovernment



    Grant loans to Credit Associations

    1927Coop Marketing LawsPA 3425


    Strengthen Cooperatives

    P.A. 3872

    PA 3425 was

    amended by PA 3872 provided incorporation of FACOMA

    Early Cooperative Efforts (1906-1940)

    1938Church Initiated Credit

    Union in Vigan

    P.A. 3425,

  • Common Wealth Act 565

    Gen, Basic Cooperative Law

    1940Government Initiated

    War Years (1941-45)

    The Japanese Military Administrative used cooperatives

    primarily as outlets for consumer goods and as mechanisms

    to encourage local food production. Virtually all of the

    estimated 5,000 cooperatives established during this period

    were destroyed during the ensuing liberation.

  • Reconstruction Period 1945-1950

    National Cooperative Administration

    On November 1, 1945 the

    National Assembly re-enacted

    (C.A. 713) the National

    Cooperatives Administration


    In October 1947, Republic

    Act No. 51 resulted in the

    conversion of the NCA into

    the National Cooperatives

    and Small Business

    Corporation (NCSBC).

    in November 1950, the National Cooperatives and

    Small Business Corporation (NCSBC) was abolished

    and replaced by the Cooperatives Administration

    Office (CAO), which operated under the Department

    of Commerce and Industry (Executive Order No.

    364, Series of 1950).




  • Expansion of Cooperativism inthe Philippines (1950-1969)


    RA 2023Non AgriculturalCooperative law

    In 1969 the Code of Agrarian Reform

    (Rep Act No. 6389


    RA 821 Farmers Cooperative Marketing

    Government Initiated


    Philippine National

    Cooperative Bank

    Church Sponsored


    RA No. 821 known asthe Agricultural Credit and Credit Cooperative Financing Act


    Philippines (R.A 6389) Code of Agrarian Reform

  • Expansion of Cooperativism inthe Philippines (1950-1969)


    RA 2023Non AgriculturalCooperative law

    In 1969 the Code of Agrarian Reform

    (Rep Act No. 6389


    RA 821 Farmers Cooperative MarketingGovernment


    RA No. 821 known asthe Agricultural Credit and Credit Cooperative Financing Act


    The Rural Banking Act (R.A.

    720), passed in June of 1952,

    Philippine National Cooperative Bank

    Republic Act 821 also

    established the Agricultural

    Credit and Cooperative

    Financing Administration

    (ACCFA), and transferred to it,

    from the CAO, responsibility for

    the promotion, organization and

    supervision of FACOMAs.


  • In 1963, the Revised Barrio Charter Act allowed for the

    promotion of cooperatives at the

    barrio-level. The Presidential

    Arm on Comm


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