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Introduction and Overview

The Medium-term Philippine Development Plan for 2010-2016 is the Aquino Administration's development framework for translating the President's development Agenda , as contained in his "Social Contract with the Filipino People" into strategies, policies, programs and activities for the period 2010-2016. The Social Contract envisions "a country with an organized and widely shared rapid expansion of our economy through a government dedicated to honing and mobilizing our people's skills and energies as well as the responsible harnessing of our natural resources".

The attainment of the vision entails changes among each and every Filipino towards "doing the right things, giving value to excellence and integrity and rejecting mediocrity and dishonesty, and giving priority to others over ourselves. All sectors of society are expected to contribute towards the realization of these development objectives.

The cooperatives sector in the Philippines is one such sector that has, based on past performance, proven to immensely contribute towards the realization of the national goals in general. Along with the government's efforts for the next six years, it has formulated, through a highly consultative and participative process, the sector's own complementary blueprint, that they have called "The Co-op Sector 10-Year Strategic Direction - An Integrated and Transformative Cooperative Sector". It is an attempt “to develop a national co-op sector strategy for development to enhance and complement individual cooperative programs and services, and to facilitate cooperation among cooperatives". These will be spelled out in the following Philippine Cooperative Medium-Term Plan (PCMTDP) for 2011-2016 and will be one of the Cooperative Development Authority’s primary reference in drawing its program thrusts and priorities during the plan period. As clearly put in RA 6939, "The Authority shall… a) Formulate, adopt and implement integrated and comprehensive plans and programs on cooperative development consistent with the national policy on cooperatives and the overall socio-economic development plans of the government.."

Vision, Mission, Principles

The PCMTDP for the period 2011-2016 is anchored on the realization of the collective vision and mission of the cooperatives sector which is:

"An integrated and transformative cooperative system with a mission to build integrated businesses imbued with cooperative values for the improvement of the quality of life".

Cascading from this sectoral vision and mission is the cooperative sector's specific goals:

  • Safe and sound financial cooperative sector that provides efficient, accessible, and competitive financial and related services.
  • Efficient and effective cooperative procurement, distribution and marketing channel for co-op products and services.
  • Increased number of cooperatives owning and operating environment-friendly, safe, efficient, and sustainable organizations that provide basic services to members.
  • Responsive and self-regulating national integrated cooperative advocacy, education and information system.
  • Aligned cooperative businesses.

The realization of the collective vision and mission statements will contribute towards the overall realization of the societal goal of poverty reduction and improvement of the quality of life of its members. Therefore, 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: a) subsidiarity, b) autonomy and independence, c) partnership and complementation, d) empowerment, e) transparency, and f) accountability.

The principle of subsidiarity enshrined in the Cooperative Code means that there should be no government intervention as much as possible and government intervenes only when necessary. This principle may also refer to the extent where government utilizes various levels to manage development initiatives in the cooperative sector. This may be taken to mean that the government may veer away from activities best handled by primary cooperatives, federations and unions. This may also mean that the Local Government Units (LGUs) are to be involved as partners in cooperative development in these areas, consistent with the requisites of local autonomy.

The principle of autonomy and independence defines cooperatives as autonomous, self-help organizations. Along with the principle of partnership and complementation, it also guides cooperatives in their pursuit of growth and development through critical collaboration or strategic alliances with external organizations –including government, non-government organizations (NGOs) and the business sector.

The principle of empowerment recognizes the primary responsibility of citizens including members of the cooperative sector to chart their own development and destiny with the government providing measures to facilitate or enable the same. This principle espouses that the most vulnerable sectors of society shall be economically empowered by expanding their capabilities and opportunities to generate sustainable sources of income, by propagating awareness for possible collective action, and by increasing their participation in decision- making.

The principle of transparency highlights one of the backbones of democratic societies like cooperatives. It means that decision-making shall be subject to full disclosure at every stage in order to foster confidence in the integrity and honesty of the leadership.

Lastly, the principle of accountability refers to the responsible use of power by the leadership and by the institutions to advance general welfare. It requires that those who hold positions of public trust should account for their performance to the public. Effective accountability requires appropriate external feedback and should be linked to appropriate incentive and penalty system.

In light of the above-cited cooperative sectoral vision and mission statements and principles, and the Cooperative Development Authority's mandate of "promoting the viability and growth of cooperatives as instruments of equity, social justice and economic development", the CDA, in partnership with other stakeholders shall work hand in hand with the cooperatives in pursuing the following broad policy directions to support the ten year Co-operative Strategic Direction that received an overwhelming affirmation during the 10th National Cooperative Summit held on October 10-12, 2010 at the Araneta Coliseum, Cubao, Quezon City.

Policy Direction No. 1

STRENGTHENING AND ENHANCING DELIVERY MECHANISMS OF THE COOPERATIVE DEVELOPMENT AUTHORITY

Expected Outcome

Efficient, Effective and Responsive Government Regulatory and Developmental Agency for Cooperatives

Policy Requirements

1. Providing opportunities and incentives for CDA to build its collective institutional capacities such as HRD, logistical support, additional personnel and budgetary allocation.

2. Providing organizational development interventions to fine-tune the organizational structure and processes of the CDA to enable it to become a responsive lead Agency for the cooperative sector and enhancing its coordinative functions

3. Passage of amended CDA Charter with full participation of CDA at all levels

4. Integration of CDA in the Regional Development Councils (RDCs) at all levels


Programs/Activities/Projects

1. Institutional strengthening program for the Cooperative Development Authority


Strategies

  1. Institutionalize the conduct of a holistic capacity-building program for CDA personnel.
  2. Implement the CDA Rationalization Plan.
  3. Implement a CDA rationalized Human Resource Development (HRD) and other service delivery programs.
  4. Intensify enforcement of CSC Rules and Regulations, Anti-Red Tape Act (RA 9485), Ethical Standards and other related laws.
  5. Enhance database management systems and Information Communication Technology (ICT) capability of the CDA.
  6. Pursue implementation of Quality Managements system (QMS) for ISO certification for the CDA.

2. Installation of mechanisms to improve the regulatory & developmental service delivery of the CDA

Strategy

a. Prescribing workable standards and improvements in different categories, (e.g. cooperative education, training, auditing, training, research, management systems etc.) to make cooperatives stronger and more accountable.

3. Intensification of the implementation of the provisions of RA 9520, its Implementing Rules and Regulations and other Issuances concerning cooperatives.

Strategies

a. Monitor compliance to the law.
b. Strict enforcement of penalties/sanctions.

4. Policy Review and Enhancement

Strategies

a. Revise existing guidelines to conform to the provisions of RA 9520.
b. Develop appropriate monitoring tools.
c. Develop appropriate performance standards.
d. Recommend new policies as necessary.

5. Strengthening of CDA Supervision, Monitoring and Evaluation Functions

Strategy

a. Develop and implement appropriate mechanisms for supervision, monitoring and evaluation

6. Awards/Recognition & Incentives Program for Cooperatives

Strategy

b. Develop and implement an Awards and Recognition Program for cooperatives.

7. Formulation of Standards for Cooperatives

Strategies

a. Develop, implement and monitor compliance to set standards
b. Recommend measures to improve institutional capacity of cooperatives
c. Develop and recommend a model Code of Good Governance and Ethical Standard for Cooperatives
d. Conduct continuing consultation with all stakeholders
e. Accredit training providers, external auditors, mediators/conciliators

Policy Direction No. 2

PROVIDING AN ENABLING ENVIRONMENT FOR THE STRENGTHENING AND DEVELOPMENT OF COOPERATIVES

Expected Outcome

Strong , sustainable and empowered cooperatives

Policy Requirements

1. Redefining Roles. The primary role of government shall be regulatory. In line with the principle of subsidiarity, CDA will support the developmental role of the cooperatives.

2. Encouraging stakeholder participation in cooperative development to allow complementation of efforts, maximize use of limited resources and achieve greater strategic impact from collaboration.

3. Internalizing the principles of good governance in the cooperative sector.

4. Providing the appropriate communication and advocacy support for partnership.

Programs/Activities/Projects

1. Strengthening of advocacy for cooperatives

Strategies

a. Work for appropriate amendments to the CDA Charter

b. Develop and implement an appropriate Information, Education, and Communication (IEC)/Advocacy Program

2. Promotion of merger and consolidation of cooperatives

Strategies

a. Develop a framework for merger and consolidation of cooperatives

b. Develop an incentives program for merger and consolidation of cooperatives

3. Strengthening of CDA supervision, monitoring and evaluation functions.

4. Strengthening of federations, unions and partner institutions.

5. Accreditation of federations/unions in the implementation of supervision, monitoring and evaluation functions.

6. Development and implementation a social marketing program/collaborative communication advocacy program among stakeholders

Strategy

a. Involve stakeholders in the development and implementation of an appropriate Communication Advocacy and Social Marketing program.

7. Strengthening of linkage with international partners

Policy Direction No. 3

ENSURING LOCAL AND GLOBAL COMPETITIVENESS OF COOPERATIVES

Expected Outcome

Viable, competitive and sustainable cooperatives as engine of growth and development

Policy Requirements

1. Ensuring access of cooperatives to global markets and market information.

2. Providing viable linkages and networks to support global competitiveness.

3. Establishment of an appropriate quality system for global competitiveness.

4. Promoting the development and sustainability of competitive products and services of cooperatives and new markets.

5. Creating and sustaining the appropriate environment for partnership among cooperatives, both local and international, local government units, national line agencies, NGOs, POs, and the private sector.

Programs/Activities/Projects

1. Establishment of a Cooperative Market and Integrated Marketing and Information System

Strategies

a. Develop productivity for self-reliance

b. Adopt Filipino first policy by patronizing Philippine products

2. Establishment of a Cooperative Financial System

Strategy

a. Enhance credit and financial services for cooperatives

3. Promotion/Enhancement of businesses of cooperatives in identified priority economic sectors.

Strategies

a. Establish criteria for prioritization
b. Identify and recommend priority areas based on established criteria

4. Building and promotion of cooperatives’ Information, Communication Technology (ICT) capability

Strategies

a. Formulate ICT standards for adoption by cooperatives
b. Monitor compliance to standards and recommend appropriate actions

5. Expansion of Research and Development and other Extension Services

Strategies

a. Formulate and recommend agenda and standards for research and development and other extension services
b. Conduct periodic monitoring of the status of research, development and other extension services

6. Building and Promotion of International Cooperation

Strategies

a. Participate in international activities/events as resources may permit
b. Encourage access of cooperatives to global markets
c. Promote the development of competitive products and new markets.

7. Forging mechanisms for linkage, partnership and collaboration

Strategies

a. Intensify monitoring of integrated support on cooperative development programs and projects for stakeholders
b. Harmonize cooperative plans and programs at all levels

8. Encourage the creation of a cooperative office at various Local Government Unit (LGU) levels

Strategies

a. Intensify advocacy for the creation of a position of Cooperative Development Officer at the LGUs

Policy Direction No. 4

PROMOTING COOPERATIVISM AS THE VEHICLE FOR SOCIAL TRANSFORMATION FOR PEOPLE, PLANET, PROSPERITY AND PEACE

Expected Outcome

Strategic and synergistic alliances between and among stakeholders in cooperative development.

Policy Direction No. 5

MASSIVE EXPANSION OF COOPERATIVE MEMBERSHIP

Programs/Activities/Projects

1. Conversion of ECs into genuine cooperatives
2. CDA-Department of Agrarian Reform (DAR) convergence
3. CDA-Department of Agriculture (DA) convergence
4. CDA-Department of Transportation and Communication (DOTC) convergence
5. CDA-LGU convergence
6. Intensification of issues and policy advocacy.