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

Summary

This 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.