Galing Pook Season 4 E04 - Tagum Cooperative (April 28, 2018)

Summary

This program highlights the transformative work of the Bagram Community Cooperative, a thriving credit union that started with just 58 members and now serves over 136,000 members. It offers a variety of financial services, including savings programs, loans, and insurance, while also supporting community development initiatives. Through its extensive network, the cooperative empowers its members with economic opportunities, fosters financial literacy, and invests in local projects. The cooperative's success is built on strong governance, member dedication, and its deep commitment to improving lives, making it a pivotal force in its community.

Takeaways

• 😀 The cooperative began in 1967 with only 38 members and 80 pesos in share capital but has since grown to 136,000 members and operates 12 branches.
• 😀 The cooperative provides various financial services, including savings accounts, educational loans, microfinance loans, and retirement plans for members.
• 😀 A key success of the cooperative is its educational programs that teach children to save, with over 55,000 students participating and saving over 50 million pesos.
• 😀 The cooperative has expanded its support to retirees with special savings products like the 'Golden Hearts' program, addressing the financial needs of older members.
• 😀 The cooperative emphasizes community involvement, offering funeral benefits, hospital assistance, and contributing to local development projects, such as educational scholarships.
• 😀 In 2016, the cooperative had an income of 308 million pesos, with 30% reinvested into community development programs, including education and training funds.
• 😀 The cooperative offers different loan types, such as educational loans, appliance loans, and instant loans, making it accessible to a wide range of members' needs.
• 😀 Strong governance and transparency are key to the cooperative's success, with internal and external audits ensuring financial stability and accountability.
• 😀 The cooperative has faced challenges like high delinquency rates in the past but has turned around its financial practices, now boasting a low delinquency rate of 5.5%.
• 😀 Despite potential regulatory threats that could reduce dividends and community services, the cooperative is optimistic about its ability to continue growing with strong local government support.

Q & A

What role do cooperatives play in economic development as described in the script?

Cooperatives play a significant role in economic development by providing financial services like savings programs, loans, and community development initiatives. They empower individuals by offering alternatives to loan sharks, fostering savings habits, and providing support during times of need.

How does the cooperative help children with savings, according to the script?

The cooperative helps children by training them to save money. Students eagerly participate in the savings program, and as they witness their savings grow, they are encouraged to save more. The savings have accumulated to over 50 million pesos from about 55,000 children.

What is the primary focus of the 'Golden Hearts' program?

The 'Golden Hearts' program is specifically designed for retirees, addressing their financial needs by offering tailored financial products that ensure their well-being post-retirement.

What kinds of loans does the cooperative offer to its members?

The cooperative offers a variety of loans, including regular loans, educational loans, appliance and furniture loans, microfinance loans, and special loans for specific needs like health benefits.

What additional support does the cooperative provide in the event of a member's death?

In the event of a member’s death, the cooperative provides a bereavement assistance of 65,000 pesos, along with an additional 5,000 pesos for funeral costs, totaling 70,000 pesos.

How does the cooperative contribute to local community development?

The cooperative contributes to community development by allocating funds to help less fortunate areas, providing financial assistance during school openings, and supporting various local initiatives, even in regions where the cooperative does not directly operate.

What is the significance of the cooperative’s relationship with local government bodies?

The cooperative’s strong relationship with local government bodies is crucial for community development. It helps in shaping policies, addressing local needs, and ensuring the cooperative’s continued role as a major economic and social stakeholder.

What challenges does the cooperative face, according to the script?

One of the challenges the cooperative faces is the potential threat from legislative changes, particularly the possibility of cooperative regulations being altered, which could negatively impact the services provided to members and reduce their dividends.

How does the cooperative ensure the sustainability of its financial model?

The cooperative ensures its financial sustainability by adhering to strong governance practices, maintaining financial prudence, conducting internal audits, and following established policies to manage money matters and prevent corruption.

How does the cooperative support marginalized communities or individuals with disabilities?

The cooperative supports marginalized communities, including people with disabilities, by providing them with opportunities to access financial services and empowering them to be part of the economic process, ensuring they are not left behind.