Latest data from the International Cooperative Alliance indicated that cooperative membership accounts for about 12% of humanity. Cooperatives around the world employ about 280 million individuals and the top 300 cooperatives worldwide account for about $ 2.1 trillion turn-over.
This data helps us appreciate that the same development happens in the Philippines with the increasing number of individuals forming cooperatives, increasing membership of existing cooperatives including their assets and liabilities. The current thrust of the administration recognizing the need to modernize the transportation system added another invitation to the public to patronize cooperatives. Under the modernization program, the government recognized cooperatives to own franchises of public utilities together with corporations.
The greatest challenge today is how to allay the fears of the transport sector on the approved modernization. No doubt, when implemented properly, the thrust of the government will contribute to creation of more jobs. However, the processes require inter-agency cooperation and collaboration and some interested individuals expressed their sentiments on the bureaucratic system. Some people we have talked to find difficulty in complying the requirements prior to registration as a corporation or cooperative and in producing the required brand new units including its specifications. Cordillera based transport group have their preferences in terms of design and engine. This require mutual understanding for the owners and the government to come up with the best solutions.
As to the status of cooperatives in CAR, data indicate that more cooperatives scaled up their business operations given the increasing trends in membership, number of large cooperatives based on assets and the sustained issuance of patronage refund and interest on share capital. Cooperatives nowadays are aggressive with several business expansion and integration projects. These include acquisition of franchises, real estate properties, investment in insurance companies and other institutions that offer high yielding investments.
With the help of government and private entities, cooperatives venture into agriculture and value chain. The demand for organic products and good agriculture practices continually challenge producers and marketing cooperatives to increase volume of quality products for domestic and export purposes.
In view of the above challenges and opportunities for cooperatives, there is a need to revisit existing policies and guidelines of cooperatives. The need to align the programs, projects and activities of cooperatives to the changing business environment is necessary. There is a need to look into cooperative works vis-à-vis Philippine Cooperative Medium Term Development Plan, the Sustainable Development Goals and Ambisyon Nation 2040.
