Principles of Cooperation Quiz

Cooperative Definition

• A cooperative is an independently registered group of people who have voluntarily joined together to meet their social, economic, and cultural needs and aspirations.
• Cooperatives achieve these goals by making contributions to their capital, purchasing their products, and sharing the risks and benefits of the undertaking.

Cooperative Principles

• Cooperatives are operated according to the universally accepted principles of cooperation, which include:
  • Voluntary and Open Membership: Anyone with the capacity to use the cooperative's services and willing to accept the responsibilities of membership can join, regardless of gender, race, cultural, political or religious background.
  • Democratic Member Control: Members actively participate in setting policies and decisions, ensuring the cooperative is controlled by its members.
  • Member Economic Participation: Members contribute to and democratically control the cooperative's capital. Members receive limited compensation or interest on their contributions.
  • Autonomy and Independence: Cooperatives maintain their autonomy and democratic control, even when entering into agreements with other organizations or seeking external funding.
  • Education, Training and Information: Cooperatives educate and train members, elected representatives, managers, and employees to effectively contribute to the development of their organization..
  • Cooperation Among Cooperatives: Cooperatives operate locally, nationally, regionally, and internationally to strengthen the cooperative movement.
  • Concern for Community: Cooperatives strive for sustainable community development through policies approved by their members.

Key Differences of Cooperatives

• Cooperatives differ from other organizations by being member-owned and democratically-controlled.
• Profits are distributed amongst members, with limited compensation for capital.
• The primary goal is to achieve the collective interests of the members.

Consumer Cooperatives

• Consumer cooperatives emerged in both rural and urban areas to provide consumers with control and fight against the unfair practices of private businesses.
• The "Rochdale Plan" saw buying groups collaborate to purchase products from a cooperatively owned wholesaler, who would then support those groups to become retail outlets.
• The Great Depression of the 1930s spurred another wave of organizing, with the "End Poverty in California" (EPIC) campaign promoting self-help cooperatives.
• "Brotherhood Economics" advocated for cooperative solutions and were supported by Franklin Roosevelt's New Deal, providing assistance to urban cooperatives.
• The 1960s and 1970s saw the "new wave" of cooperatives, characterized by:
  • Emphasis on equality
  • Focus on whole, unrefined food
  • Experimentation in operating practices
  • Diverse management structures

History of Cooperatives in the Philippines

• Jose P. Rizal, a prominent Filipino nationalist, was inspired by the European cooperative movement in the late 19th century.
• He aimed to establish a cooperative colony in Borneo, but was arrested and exiled.
• While in exile, Rizal established a cooperative school and store in Dapitan.
• Teodoro Sandiko, after encountering Germany’s Raiffeisen movement, played a key role in introducing credit cooperatives to the Philippines.
• Act 2508, passed in 1914, legally established credit cooperatives and is considered the foundation of cooperation in the country.
• The first rural credit cooperative, the Agricultural Credit Cooperative Association of Cabanatuan (Nueva Ecija), was formed in 1916.
• By 1930, over 500 rural credit cooperatives had been established throughout the Philippines.
• However, by 1935, most of these cooperatives were inactive due to financial difficulties.