Cooperative Chairpersons and CEOs Dialogue Days Hotel, Tagaytay City - - PowerPoint PPT Presentation

• USEC. ORLANDO R. RAVANERA, CSEE, CEO VI

Chairman Office of the President of the Philippines Department of Trade and Industry

COOPERATIVE DEVELOPMENT AUTHORITY

“The Philippine Cooperative Development Plan and Roadmap”

Cooperative Chairpersons and CEOs Dialogue

Days Hotel, Tagaytay City July 23-24, 2019

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 19 Fossil fuel companies earning

wrecking US$5 Trillion/year or

US$10 Million/minute

LOW WAGES

• P481 minimum wage vs

P1,089 family living wage

(NCR)

• Real wage unchanged

– 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

JOB CRISIS

• 14 Million Filipinos

un / under-employed

• 6,000 Filipinos leave

daily to work abroad

ECONOMIC REALITY

GROSS INEQUALITY

• 66 million Filipinos live
• n 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

HEALTH

• 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

SOCIAL REALITY

HOUSING

• There are approximately

61,000 families in urban

poor communities

WATER CRISIS Source: IBON BIODIVERSITY HOTSPOT DEGRADED COAST

• 70% of reefs at

high/very high risk, among world’s “coral hotspots”, 76% of mangroves lost

• 4th country

in Asia with most number of threatened species (221 fauna, 526 flora)

• 67% of river

systems unsafe

• 58% of

groundwater contaminated

• 25 major rivers

biologically dead

DEFORESTATION

• The islands that

make up the Philippines used to be all forested. Today only 35% of those forests remain.

• 17 million hectares
• f dipterocarp

forests were lost in the last 100 years

ENVIRONMENTAL REALITY

Source: IBON

PEACE & SECURITY REALITY

PEACE & SECURITY REALITY

The shift now is…

From the individualized pursuit of wealth and self- aggrandizement to COLLECTIVE EFFORTS (in solidarity).

❑ 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 DNA of:

• Members-owned
• Value-based
• Sustainable

19

• lv

Three Zones of Transition

ZONE 1

BREAKDOWN EXTINCTION

• Powerlessness of the people
• No access to resources
• Lack of capabilities/opportunities
• Conventional Agriculture
• Highly skewed land ownership
• Oppressive Marketing System

Degradation of Values and Ecosystems Social Injustice/Gross Inequities Global Financial Crisis Apathy Conflict/Violence

ZONE 2

BREAKTHROUGH

COOPERATIVISM :

A Transformative Leading Edge ➢ A Vehicle for lasting PEACE, thru peace-building

ZONE 3

TRANSFORMATION

SUSTAINABLE FUTURE

• Social Justice
• Social Equity
• Meaningful People’s

Participation

• Meeting the Millennium

Development Goals

• Sustainable Development

Principles Institutionalized

➢ Ecologically Sustainable, Socially Equitable Development “Ang mga kooperatiba po ang kaagapay ng pamahalaan sa pagtataguyod ng systemang patas at

• maunlad. Ang koopertiba

ang katuwang ng pamahallaan laban sa kahirapan at katiwalian”

➢ A Tool of Empowering the poor and the vulnerable to reduce poverty ➢The DNA of cooperatives clearly states that a cooperative is:

• a. Member’s owned
• b. Value-based
• c. Sustainable
• d. Thus, growth is certainly inclusive

and sustainable ➢ The principles and practices give high adherence to transparency, accountability, participation and democratic control.

➢ Concern for community includes the

global involvement to mitigate climate change and integrity of environment

His Excellency Pres. Benigno Simeon C. Aquino III

Dehumanizing Poverty Marginalization of People and Resources

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

• wn 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.

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 Allow for System Losses Total Power Cost

• B. Other Operating Expense

Total Operating Cost

• C. Total Amortization Cost
• D. Provision for Reinvestment
• E. NPC Account - Arrears

TOTAL COST TO BE RECOVERED Php 1.3238 0.1398 1.4636 0.8179 2.2815 0.3621 0.1106 2.7542 1.3238 0.1505 1.4743 0.8421 2.3164 0.3208 0.1070 2.7442

ELECTRIC COOPERATIVE OWNERSHIP

Basis of OWNERSHIP of FIBECO Member-Consumer

• 1. Amortization Cost

0.3621

• 2. Reinvestment Fund

0.1106 Member’s Patronage Capital Contribution P 0.4727 0.4727 ELECTRIC COOPERATIVE OWNERSHIP

Member’s Patronage Capital Contribution P 0.4727 /kWh Multiply by your Monthly kWh Consumption 200kWh (example) Total Monthly Contribution

P 94.54

ELECTRIC COOPERATIVE OWNERSHIP

x 12 mo.

1,134.48

Yearly Contribution x 20 years Years of Being a member

P 22,689.60

Basis of OWNERSHIP of FIBECO Member-Consumer

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.”

The CDA Path is Anchored on the:

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

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Where do we want to go?

10-point socio-economic agenda of the Duterte Administration The CDA Path is Anchored on the:

Where do we want to go?

UN Sustainable Development Goals The CDA Path is Anchored on the:

Where do we want to go?

How to get there? Philippine Cooperative Development Plan (PCDP)

• To highlights the

importance of developing mutually- empowering partnerships focused

• n sustained efforts to

address needs, problems and poverty at its roots.

• To address not only the

lack of material resources or income, but also the absence of capabilities,

• pportunities and power

that will allow the individual to fully assume her/his role as a member of the community. The Cooperative Development Authority (CDA), initiated the formulation of the Philippine Cooperative Development Plan 2018-2022:

VISION The Philippine Cooperative Development Plan for 2018-2022 is anchored on a collective vision of the cooperative sector which is : "Towards a Globally Competitive and Resilient Cooperative Industry for A Progressive Nation”.

GOALS

Cascading from this vision is the cooperative sector's strategic goals which are:

• Enhanced Policy, Regulatory Environment and Partnerships;
• Improved Institutional Development, Governance and Management;
• Sustained Human Capital Development among Cooperatives;
• Globally Competitive Cooperative Products and Services;
• Increased Access to Finance; and
• Increased Access to Markets and Infrastructure

Principles

a) subsidiarity and complementation b) circumscribed governance c) empowerment d) strategic alliance and critical collaboration e) accountability. 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:

CDA Charter

“ The Cooperative Development Authority Charter of 2019” An act reorganizing and strengthening the Cooperative Development Authority, repealing for the purpose Republic Act

• no. 6939, creating the Cooperative Development Authority

CDA Charter

In furtherance of this policy, the National Economic and Development Authority (NEDA) and the Department of Trade and Industry (DTI) shall include the promotion of growth and expansion of cooperatives as major and indispensable components of national development plans. The State shall, except as provided in this Act, maintain the policy of non-interference in the management and operations of cooperatives

Section 5. The Board of Directors – the collegial policy making body of the authority Chairperson With the rank and privilege of an Undersecretary Board of Directors - with the rank and privilege of an Assistant Sectary Credit and Financial Services, Banking and insurance Consumers, Marketing Producers and logistics Human Services: Health, Housing, Workers and Labor Service Education and Advocacy Agriculture, Agrarian, Aquaculture, Farmers, Dairy and Fisherfolk Public Utilities: Electricity, Water, Communicat ions, and Transport The Chairman and the BOD shall be appointed by the President of the Philippines and chosen among the nominees from the cooperative sector.