CM2-Stage Two of the Philippine Cooperative Movement (1941-1986)

Creative Minds Channel

16 May 202006:17

Summary

TLDRThis chapter covers the evolution of cooperatives in the Philippines from 1941 to 1986, focusing on key periods like the Japanese occupation, post-World War II rehabilitation, and the resurgence of state-led initiatives. During the Japanese occupation, cooperatives saw a sharp rise, driven by severe food shortages. Post-war, several laws supported cooperative organization. Non-agricultural cooperatives emerged in the late 1950s, with religious and educational institutions playing roles. Under Martial Law in 1972, the government centralized cooperative efforts by creating the Bureau of Cooperative Development, which helped unify cooperative activities across the country.

Takeaways

📈 During the Japanese occupation, the number of cooperatives increased tremendously due to severe food shortages in Manila, with 5,000 consumer and producer cooperatives organized—a 77% increase.
🏢 Over 570 rural cooperatives existed by 1939, which further expanded during rehabilitation post-World War II, supported by government policies.
📜 Commonwealth Act No. 713, passed in 1945, revived the National Cooperative Administration with an appropriation of 5 million pesos for operations.
👷‍♂️ By 1946, around 1,500 cooperatives were organized without formal cooperative education, mainly for rehabilitation purposes.
🚫 The National Cooperative Administration was abolished in 1947, with its functions transferred to the Philippine Relief and Trade Rehabilitation Administration.
💼 Republic Act 336, passed in 1950, created the Cooperative Administration Office under the Department of Commerce and Industry, replacing previous agencies.
💰 Republic Act No. 583 of 1950 established the Small Farmers Cooperative Loan Fund to support rural financing and cooperative marketing initiatives.
🔋 In 1969, the National Electrification Administration was created to implement a rural electrification program, providing electricity to rural areas.
🎓 In 1989, the Institute of Cooperative was founded, offering a four-year cooperative management program with specializations in finance, business management, and education.
⚖️ During Martial Law in 1972, the Bureau of Cooperative Development was created to rationalize the cooperative system, and the Cooperative Union of the Philippines was formed to centralize education and training programs.

Q & A

What was the main impact of the Japanese occupation on cooperatives in the Philippines?
-During the Japanese occupation, cooperatives increased significantly, particularly in response to severe food shortages in urban areas like Manila. Over 5,000 consumer and producer cooperatives were organized, marking a 77% increase compared to previous years.
How did the rehabilitation period after World War II affect cooperatives in the Philippines?
-After World War II, many laws were passed to assist the organization of cooperatives, including Commonwealth Act No. 713, which revived the National Cooperatives Administration with a budget of 5 million pesos. Despite a lack of cooperative education, approximately 1,500 cooperatives were organized during this period.
What role did the National Cooperatives Administration (NCAA) play in the post-war cooperative movement?
-The NCAA played a key role in organizing and supporting cooperatives, but it was abolished in 1947, and its merchandising functions were transferred to the Philippine Relief and Trade Rehabilitation Administration.
What was the significance of Republic Act 336, passed in 1950?
-Republic Act 336, passed in 1950, created the Cooperative Administration Office under the Department of Commerce and Industry, replacing the National Cooperatives and Small Business Corporation (NCSBC), signaling the government's continued support for cooperative development.
How did the government support agricultural cooperatives in the 1950s?
-In 1951, the Agricultural Credit Cooperative Financing Administration (ACCFA) was created to support rural financing. It provided collateral pre-loans to farmers' cooperatives, with funding support from U.S. programs.
What marked the introduction of non-agricultural cooperatives in the Philippines?
-The introduction of non-agricultural cooperatives was marked by the passage of the Philippine Agricultural Credit Act (Republic Act No. 2023) in 1957. It aimed to expand the national economy by supporting cooperatives beyond agriculture, including financial cooperatives organized by the Roman Catholic Church.
What role did educational institutions play in the cooperative movement in the 1960s?
-In 1960, the University of the Philippines Los Baños established the Agricultural Credit Cooperative Institute (ACCI) to provide education and training in cooperative development, highlighting the role of academic institutions in strengthening cooperatives.
How did the National Electrification Administration (NEA) contribute to cooperative development?
-The National Electrification Administration (NEA), established in 1969, played a crucial role in the full implementation of the rural electrification program, which helped support rural cooperatives by providing access to electricity.
What was the significance of the establishment of the Institute of Cooperative in 1989?
-The Institute of Cooperative, founded in 1989, offered a formal educational program in cooperative financial management, business management, and community development, reflecting the growing institutional support for cooperative education.
How did martial law affect cooperatives in the Philippines?
-During martial law in 1972, the Bureau of Cooperative Development was created to rationalize the cooperative sector, and the Cooperative Union of the Philippines was formed to centralize coordination of education and training programs for cooperatives.

Outlines

00:00

🇵🇭 Japanese Occupation and Post-War Cooperative Revival

The second stage of Philippine cooperative management (1941-1986) covers significant historical periods, including the Japanese occupation and the rehabilitation following World War II. During the Japanese occupation, food shortages led to the organization of numerous cooperatives, with a 77% increase in consumer and producer cooperatives. After the war, the government passed multiple laws to support cooperative development, such as Commonwealth Act 713 of 1945 and Republic Act 336 of 1950, which reorganized and revitalized the cooperative movement. Various institutions were created, including the National Cooperative Administration and the National Cooperatives and Small Business Corporation, aimed at facilitating economic recovery through cooperative activities.

05:04

📚 Formation of the Institute of Cooperative and Martial Law Impact

In 1989, the Institute of Cooperative was founded, offering a four-year program with a focus on cooperative financial management, business management, and education. The introduction of this academic initiative highlights the increasing importance of cooperatives in the Philippine economy. Before martial law, cooperative efforts lacked coordination, but with the implementation of martial law in 1972, the Bureau of Cooperative Development was established. This aimed to rationalize cooperative operations, and the Cooperative Union of the Philippines was formed to centralize educational and training programs for cooperatives.

Mindmap

Keywords

💡Japanese Occupation

The Japanese occupation refers to the period during World War II when Japan occupied the Philippines from 1941 to 1945. This era saw a severe food shortage in urban areas like Manila, leading to the establishment of around 5,000 consumer and producer cooperatives. These cooperatives aimed to address the scarcity of food and goods, marking a significant increase in cooperative activities during this time.

💡Rehabilitation Period

The rehabilitation period occurred after World War II, as the Philippines sought to recover from the devastation of the war. During this time, many laws were passed to assist the organization of cooperatives, as they were seen as key institutions in rebuilding the economy. Commonwealth Act 713 of 1945 was a major piece of legislation during this period, reviving the national cooperative administration with financial backing from the government.

💡National Cooperative Administration (NCAA)

The National Cooperative Administration (NCAA) was a governmental body responsible for overseeing and promoting cooperatives in the Philippines. Established after World War II, it was a key institution in managing cooperative activities. In 1947, it was transformed into the National Cooperatives and Small Business Corporation (NCSBC), highlighting its role in small business and cooperative development.

💡State-Initiated Cooperatives

State-initiated cooperatives refer to cooperatives that were organized by the government, particularly to counter revolutionary activities during periods of political instability. These cooperatives were essential in organizing farmers, allowing them to participate in economic activities in an organized manner. The resurgence of these cooperatives during the 1950s demonstrated the government's role in promoting rural development and stabilizing the agricultural sector.

💡Non-Agricultural Cooperatives

Non-agricultural cooperatives, as introduced in 1957, expanded the cooperative model beyond farming and rural areas. These cooperatives were part of a broader effort to diversify the national economy. The Roman Catholic Church also played a significant role in promoting credit cooperatives within parishes, enhancing financial inclusion and economic participation in urban areas.

💡Agricultural Credit Cooperative Institute (ACCI)

The Agricultural Credit Cooperative Institute (ACCI) was established at the University of the Philippines Los Baños in 1960. Its purpose was to promote agricultural credit and support the financial needs of rural cooperatives. This institution played a critical role in providing education and training in cooperative management, particularly in the agricultural sector.

💡National Electrification Administration (NEA)

The National Electrification Administration (NEA), created in 1969, was tasked with implementing the rural electrification program. This program aimed to bring electricity to rural areas, often through the formation of cooperatives. The NEA was a significant force in improving infrastructure and promoting economic development in rural communities, as electrification expanded access to modern amenities and business opportunities.

💡Martial Law Period

The Martial Law Period in the Philippines, which began in 1972 under President Ferdinand Marcos, had a profound impact on cooperatives. During this time, the Bureau of Cooperative Development was created to centralize and rationalize the cooperative movement. This period saw increased government control over cooperatives, as the regime sought to use them as tools for economic and political stability.

💡Cooperative Union of the Philippines (CUP)

The Cooperative Union of the Philippines (CUP) was formed during the Martial Law Period to centralize the coordination of cooperative education and training programs. This union played a crucial role in unifying the cooperative movement across different sectors, ensuring that cooperative principles were upheld and that members received proper education on cooperative management.

💡Small Farmers Cooperative Loan Fund

The Small Farmers Cooperative Loan Fund, created by Republic Act 583 of 1950, was established to provide financial support to small farmers. This fund was part of the broader effort to strengthen rural cooperatives by offering them access to credit. The availability of such financial resources was vital for the success of farmers' cooperatives, as it allowed them to invest in agricultural production and improve their livelihoods.

Highlights

The cooperative movement in the Philippines saw a 77% increase in cooperatives during the Japanese occupation due to severe food shortages, particularly in urban areas like Manila.

By 1939, there were over 570 rural cooperatives, indicating a solid foundation of the movement prior to the war.

The rehabilitation period after World War II saw the passage of Commonwealth Act 713 in 1945, which revived the National Cooperative Administration with a funding of 5 million pesos.

In 1946, approximately 1,500 cooperative societies were organized even without formal cooperative education, highlighting the grassroots nature of the movement.

In 1947, the National Cooperative Administration was abolished, and its merchandising function was taken over by the Philippine Relief and Trade Rehabilitation Administration.

Executive Order No. 93 in 1947 transformed the National Cooperative Administration into the National Cooperatives and Small Business Corporation.

Republic Act 336, passed in 1950, created the Cooperative Administration Office under the Department of Commerce and Industry, further formalizing the government’s support.

Republic Act 583 in 1950 established the Small Farmers Cooperative Loan Fund, focusing on financial aid to small agricultural cooperatives.

State-initiated cooperatives were increasingly used to counter revolutionary activities in rural areas, with the government helping to organize farmer cooperatives.

In 1951, the Agricultural Credit and Cooperative Financing Administration (ACCFA) was created to promote rural financing and provide collateralized loans.

Republic Act 2023 of 1957 introduced non-agricultural cooperatives, which expanded the scope of cooperatives to other sectors of the economy.

The Roman Catholic Church became involved in the cooperative movement in 1957, helping to organize financial cooperatives in parishes across the country.

The National Electrification Administration was created in 1969 to implement rural electrification, providing electricity to underserved areas through cooperatives.

The 1989 establishment of the Institute of Cooperative at the College of Commerce marked the development of formal education programs in cooperative financial management, business management, and community development.

During martial law in 1972, the Bureau of Cooperative Development was created to rationalize and oversee the cooperative movement, and the Cooperative Union of the Philippines was formed to centralize educational and training programs.