Office of the President of the Philippines Department of Trade and Industry COOPERATIVE DEVELOPMENT AUTHORITY Cooperative Chairpersons and CEOs Dialogue Days Hotel, Tagaytay City July 23-24, 2019 “The Philippine Cooperative Development Plan and Roadmap” USEC. ORLANDO R. RAVANERA, CSEE, CEO VI Chairman
Framework of f the Presentation • Where are we now? • Where do we want to go? • How to get there?
Cooperative Statistics 2018 Based 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 BIT ITES WHERE ARE WE NOW IN TERMS OF: SOCIAL JUSTICE & PEOPLE EMPOWERMENT ENVIRONMENTAL PROTECTION ECONOMIC DEVELOPMENT PEACE & SECURITY
CONTRASTING REALITY LOW WAGES • P481 minimum wage vs 19 Fossil fuel companies earning P1,089 family living wage (NCR) wrecking US$5 Trillion/year or • Real wage unchanged US$10 Million/minute – 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
ECONOMIC REALITY • 14 Million Filipinos un / under-employed • 6,000 Filipinos leave daily to work abroad JOB CRISIS
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
SOCIAL REALITY • 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 HEALTH
• There are approximately 61,000 families in urban poor communities HOUSING
ENVIRONMENTAL REALITY DEGRADED BIODIVERSITY WATER DEFORESTATION COAST HOTSPOT CRISIS • • 4 th country The islands that • 70% of reefs at • 67% of river make up the high/very high in Asia with Philippines used systems unsafe risk, among most to be all forested. world’s “coral number of • 58% of Today only 35% of hotspots”, threatened those forests groundwater 76% of species remain. contaminated mangroves (221 fauna, lost 526 flora) • 25 major rivers • 17 million hectares biologically of dipterocarp dead forests were lost in the last 100 years Source: IBON
PEACE & SECURITY REALITY Source: IBON
PEACE & SECURITY REALITY
The shift now is… From the individualized pursuit of wealth and self- aggrandizement to DNA of: • Members-owned COLLECTIVE EFFORTS • Value-based (in solidarity). • Sustainable ❑ 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
Three Zones of Transition ZONE 1 ZONE 2 ZONE 3 BREAKTHROUGH BREAKDOWN TRANSFORMATION COOPERATIVISM : Dehumanizing Poverty A Transformative Leading Edge SUSTAINABLE FUTURE • Powerlessness of the people ➢ The DNA of cooperatives clearly • No access to resources ➢ Ecologically Sustainable, states that a cooperative is: • Lack of capabilities/opportunities a. Member’s owned Socially Equitable • Conventional Agriculture b. Value-based Development • Highly skewed land ownership c. Sustainable • Oppressive Marketing System • Social Justice d. Thus, growth is certainly inclusive • Social Equity and sustainable Marginalization of olv • Meaningful People’s ➢ A Tool of Empowering the poor and Participation People and Resources the vulnerable to reduce poverty • Meeting the Millennium Degradation of Values and Development Goals Ecosystems • Sustainable Development ➢ The principles and practices give Principles Institutionalized high adherence to transparency, Social Injustice/Gross “Ang mga kooperatiba po accountability, participation and Inequities ang kaagapay ng democratic control. pamahalaan sa Global Financial Crisis ➢ A Vehicle for lasting PEACE, thru pagtataguyod ng systemang patas at peace-building maunlad. Ang koopertiba Apathy ➢ Concern for community includes the ang katuwang ng Conflict/Violence pamahallaan laban sa global involvement to mitigate climate kahirapan at katiwalian” EXTINCTION change and integrity of environment His Excellency Pres. Benigno Simeon C. 19 Aquino III
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.
ELECTRIC COOPERATIVE OWNERSHIP 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 1.3238 1.3238 Allow for System Losses 0.1398 0.1505 Total Power Cost 1.4636 1.4743 B. Other Operating Expense 0.8179 0.8421 Total Operating Cost 2.2815 2.3164 C. Total Amortization Cost 0.3621 0.3208 D. Provision for Reinvestment 0.1106 0.1070 E. NPC Account - Arrears TOTAL COST TO BE RECOVERED Php 2.7542 2.7442
ELECTRIC COOPERATIVE OWNERSHIP Basis of OWNERSHIP of FIBECO Member-Consumer 1. Amortization Cost 0.3621 2. Reinvestment Fund 0.1106 0.4727 Member’s Patronage Capital Contribution P 0.4727
ELECTRIC COOPERATIVE OWNERSHIP Basis of OWNERSHIP of FIBECO Member-Consumer Member’s Patronage Capital Contribution P 0.4727 /kWh Multiply by your Monthly kWh Consumption 200kWh (example) P 94.54 Total Monthly Contribution x 12 mo. 1,134.48 Yearly Contribution x 20 years Years of Being a member P 22,689.60
The CDA Path is Anchored on the: 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.”
Latest Engagement of the CDA CDA-CCC Partnership
La Latest Engagement of f th the CD CDA CDA-Small Business Corp Partnership for P3 Program
La Latest Engagement of f th the CD CDA CDA-NCIP Partnership
La Latest Engagement of f th the CD CDA CDA-Indian Embassy Partnership
La Latest Engagement of f th the CD CDA Organizing the Wounded Soldiers into Cooperative
La Latest Engagement of f th the CD CDA Bangon Marawi Rehabilitation Thru Cooperativism Program
Constitutional Provision Where do we The he 198 987 7 Con onsti stituti tution on of of the he Phi hili lippine pines s con ontain tain provis vision ion recogni ecognizing zing want coo ooper perativ tives es as le legal al perso sona nali lities ties wit ith h to go? econom onomic ic and nd soc ocial ial fun unct ctions ions and nd ma manda ndating ting the he crea eati tion on of of an n agenc ency y to o promote omote the heir ir via iabil bilit ity y and nd growth owth for or the he goo ood of of the he na natio ion. n.
The CDA Path is Anchored on the: 10-point socio-economic agenda of the Where Duterte Administration do we want to go?
The CDA Path is Anchored on the: UN Sustainable Development Goals Where do we want to go?
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