Establishing a National Union of Cooperatives p.

1
Table of Contents
CHAPTER I: PHILIPPINE COOPERATIVES.........................................................................................3
COOPERATIVE FEDERATION AND UNION SYSTEM.......................................................................3
COOPERATIVE OVERVIEW..................................................................................................................6
Philippine Cooperative Legal Framework........................................................................................7
Data Gathering and Data Availability...............................................................................................8
Social Impact....................................................................................................................................8
COOPERATIVE FEDERATIONS AND COOPERATIVE UNIONS STATISTICS................................9
ASSESSMENTS AND ISSUES..............................................................................................................11
A NEED FOR A NATIONAL LEVEL ORGANIZATION......................................................................16
CHAPTER II: CASE STUDIES..............................................................................................................18
NATIONAL-LEVEL ORGANIZATION CASE STUDIES....................................................................18
Indian Cooperatives Situationer..........................................................................................................18
Indian Context: National Cooperative Union of India........................................................................20
NCUI at the Moment...........................................................................................................................27
OTHER NATIONAL-SCOPED COOPERATIVES/APEXES................................................................30
A New Apex Organization: Case of Japan Co-operative Alliance’s...................................................32
CHAPTER III: NATIONAL UNION OF COOPERATIVES..................................................................36
A SUPPORT AND COMPLEMENTARY STRUCTURE.......................................................................36
ESTABLISHING A NATIONAL UNION OF COOPERATIVES..........................................................36
IDEAL FEDERATION AND UNION SYMBIOSIS..............................................................................36
ESTABLISHMENT OF A REPRESENTATION AND SUPPORT STRUCTURE FOR
COOPERATIVES: NATIONAL UNION OF COOPERATIVES...........................................................36

Establishing a National Union of Cooperatives p.2

 CHAPTER I: PHILIPPINE COOPERATIVES

COOPERATIVE FEDERATION AND UNION SYSTEM

Under the legal system of cooperatives in the Philippines, guided by Republic Act No. 9520,
also known as Philippine Cooperative Code of 2008:
“Federation of Cooperatives refers to three or more primary cooperatives,
doing the same line of business, organized at the municipal, provincial,
city, special metropolitan political subdivision, or economic zones created
by law, registered with the Authority to undertake business activities in
support of its member-cooperatives1.”
A Federation’s functions is further stipulated under Article 24 of the Code:
“(a) To carry on any cooperative enterprise authorized under Article 6 that
complements augments, or supplements but does not conflict, complete
with, nor supplant the business or economic activities of its members;
(b) To carry on, encourage, and assist educational and advisory work
relating to its member cooperatives;

(c) To render services designed to encourage simplicity, efficiency, and

economy in the conduct of the business of its member cooperatives and to
facilitate the implementation of their bookkeeping, accounting, and other
systems and procedures;

(d) To print, publish, and circulate any newspaper or other publication in

the interest of its member cooperatives and enterprises;

(e) To coordinate and facilitate the activities of its member cooperatives;

(f) To enter into joint ventures with national or international cooperatives of

other countries in the manufacture and sale of products and/or services in
the Philippines and abroad; and

(g) To perform such other functions as may be necessary to attain its

objectives2.”

1 “Cooperative Code, Rep. Act 9520, as Amended (Phil.).” (n.d.).

2 Ibid.

Establishing a National Union of Cooperatives p.3

According to Pagdanganan3, ideally, cooperative federations provide a form of “service
facility” that their members can use further for their development. The Federation can be a
bigger credit or financing institution aimed to support their smaller members. It can also be a
“marketing” or a product “processing” federation that distributes and promote their member’s
produce. It can also be a training and development center catered to develop the skills and
human resources of its members. One key idea is that, federations should not “duplicate” or
“compete” with the services of its member cooperatives. In the Philippines, however, some
federations have smaller asset sizes compared to their member cooperatives. According to
Pagdanganan4, this is not ideal.

On the other hand, By definition of law:

“A Cooperative Union is a non-profit umbrella organization wherein all types of

cooperatives converge for the promotion, development, and progress of traditions of
cooperatives in the country. It is the heart and soul of the cooperative movement, a
structure which embodies and maintains the values, beliefs, principles, philosophy, and
spirit of cooperativism in the country.’’5

Purposes of a Cooperative Union:

(a) To represent its member organizations;

(b) To acquire, analyze, and disseminate, economic, statistical, and other

information relating to its members and all types of cooperatives within its area of
operation;

(c) To sponsor studies in the economic, legal, financial, social, and other phases of
cooperation, and publish the results thereof;

(d) To promote the knowledge of cooperative principles and practices;

(e) To develop the cooperative movement in their respective jurisdictions;

(f) To advise the appropriate authorities on all questions relating to cooperatives;

(g) To raise funds through membership fees, dues, contributions, donations, and
subsidies from local and foreign sources whether private or government; and

(h) To do and perform such other non-business activities as may be necessary to attain
the foregoing objectives. Cooperative unions may assist the national and local
governments in the latter's development activities in their respective
jurisdictions.6

3 Roberto Pagdanganan, An Urgent Call for Cooperative Revolution, 2nd ed. (Philippines, 2002).
4 Pagdanganan, An Urgent Call for Cooperative Revolution.
5 Cooperative Development Authority, Memorandum Circular 2020-23
6 Ibid.

Establishing a National Union of Cooperatives p.4

In essence, Cooperative Unions are the main advocacy education and politicized research-
based policy recommendations, organization, and mobilization sector of the Cooperative
Movement/Sector. Instead of a purely cooperative business, the cooperative union is the
political arm of the movement as a whole. In the existing literature, this is not far from the
basic idea of a social movement unionism – in which the main strategy is to “consolidate
various forms of organizations...along industry, sectoral, and geographical lines towards
collective actions that contribute to the transformation of social and property relations” 7. Not
far from the supposed personality of social movements: “a collective and communicative
process of demand-making, self-help activities and/or protest and critique against existing
social conditions”. The only glaring difference is the promotion of overt differences in innate
electoral participation. It is to be noted, that the law’s definition of cooperative union may be
strictly construed as education and advocacy; missing is the overt allowance for electoral
participation, demand-making, and collective bargaining.

Fr. Anton CT Pascual in his seminal synthesis on Union functions and Union-Federation
synergy emphasizes the “representational” purpose of a Union8. Pagdanganan suggested
other activities that a cooperative union can conduct: (1) “technology transfer”, (2) “project
development”, (3) “audit and legal services”, (4) “consultancy”, and (5) “advocacy”. Key
feature of a cooperative union is that they do not have shareholders, and their operations and
programs – sustainability – is derived from the Cooperative Education and Training Fund. In
the case of Philippines, they are not allowed to do business. They can also source funding
from service fees, membership fees, and annual fees9.

COOPERATIVE OVERVIEW
In the latest cooperative statistics as of 4th Quarter, December, 202210:

Total
Members* Employees* Assets*
Region Number of
(millions) (thousands) (billion PHP)
Coops
Region 01 1,175 0.7 10.8 35.6
Region 02 1,083 0.9 8.7 34.2
CAR 871 0.7 5.2 41.4
Region 03 2,345 0.7 15.6 39.0

7 Mary Lou Alcid, “NGO-Labor Union Cooperation in the Promotion of the Rights and Interests of Landbased Overseas
Filipino Workers,” Asian and Pacific Migration Journal 15 (2006): 335–57,
https://doi.org/10.1177/011719680601500303 JO.
8 Anton Pascual, “What Is a Cooperative Union?” (Powerpoint Presentation, NUC Luzon-NCR Consultation, Sequoia
Hotel, Philippines, August 29, 2023).
9 Pagdanganan, An Urgent Call for Cooperative Revolution.
10 “List of Cooperatives, CDA, December, 2022,” Excel File (Cooperative Development Authority, December 2022).

Establishing a National Union of Cooperatives p.5

NCR 1,877 1.8 121.7 179.3
Region 04-A 1,826 0.7 19.4 31.9
Region 04-B 676 0.3 6.0 11.4
Region 05 1,093 0.3 4.3 13.2
Region 06 1,382 0.9 19.3 31.9
Region 07 1,386 1.3 17.5 56.7
Region 08 871 0.4 4.6 15.7
Region 09 822 1.0 6.4 11.2
Region 10 1,537 1.0 22.7 46.8
Region 11 1,284 0.8 21.9 44.1
Region 12 924 0.3 46.6 19.6
CARAGA 953 0.2 3.4 11.3
Grand Total 20,105 12.1 334.3 623.2
*From the reports submitted by the compliant cooperatives
Table 1. Cooperatives per Region (2022).

Total
Members* Employees* Assets*
Asset Size Number of
(millions) (thousands) (billion PHP)
Coops
Large 790 9.2 185.1 519.4
Medium 2,387 1.7 76.7 79.0
Small 3,832 0.7 41.3 20.2
Micro 13,096 0.4 31.1 4.5
Grand Total 20,105 12.1 334.3 623.2
*From the reports submitted by the compliant cooperatives
Table 2. Cooperatives per Asset Size (2022).

For year 2022, there are a total of 20,105 compliant cooperatives, with 12.1 million members,
employing 334.3 thousands of employees, and having Php 623.2 billions worth of asset size.
Compared to the total population of the country in 2022, the total cooperators in the
Philippines composes 10.7711 percent of the country population.

Philippine Cooperative Legal Framework

11 “Country Meters, Philippine Population,” n.d., https://countrymeters.info/en/Philippines.

Establishing a National Union of Cooperatives p.6

Legislatively and legally speaking, the Philippine Cooperative sector is considered as “quite or
rather significantly friendly”12. While there are considerations and improvements needed, the
legal framework of the country is generally for the proliferation of cooperatives. There is,
however, a need for further improvement for laws, policies and legislation needed for sectoral
development13. According to the report by the International Co-operative Alliance Asia and
Pacific:

“There is a compelling need to revisit the dual roles of CDA as a

regulator and developer. The CDA has to focus its regulatory role to
be more effective and to avoid conflicting roles. The developmental
role should be the cooperative sector's function, particularly giving
the task of capacity building to the federations. The government
may provide funding support to federations for education, training,
and technical assistance through its General Appropriations Act.
The provisions in the Code on consolidation and merger of
cooperatives should be strengthened. Cooperatives that have failed
to grow and remain micro and small and cannot meet and comply
with the performance standards set by the CDA after a certain
number of years should be compelled to consolidate or merge.
Otherwise, these cooperatives will be delisted. The government will
provide very attractive incentives to support such mergers and
consolidations of weak cooperatives14.”

Data Gathering and Data Availability

Cooperatives are legally mandated to yearly submit their information for regulatory and
developmental purposes to the Cooperative Development Authority. This is the basis for the
annual reports released by the Authority. While there is a “strong regulatory framework for
submission of data and information”, due to the lack of digitization infrastructure of some of
the cooperatives, there is difficulty completing and “compiling” the data required15.
Addition to this, in a series of plenary sessions conducted by CIBI, Inc. and the Philippine
Cooperative Center it was inferred that there is a needed additional focus on digitalization for
the cooperative movement. Part and parcel of digitalization is the need for a more precise,
more accurate, and more updated centralized cooperative data bank. Currently, there is an
absence of cooperative owned data banks, thereby making our nationwide cooperative
statistics and analytics limited. For example, there is a lack of data on cooperatives’ affiliations
or multi-affiliations with federations. According to Director Garibaldi Leonardo of Philippine

12 “Legal Framework Analysis National Report Philippines” (International Co-operative Alliance Asia and Pacific,
November 2020), https://coops4dev.coop/en/4devasia/philippines.
13 “Legal Framework Analysis National Report Philippines.”
14 “Legal Framework Analysis National Report Philippines.”
15 “Statistics on Cooperatives Country in Focus: Philippines,” Statistics on Cooperatives (International Labour
Organization, 2018).

Establishing a National Union of Cooperatives p.7

Cooperative Center, “The need for pertinent data is one of the concerns that cluster will
benefit from16.”
While the Cooperative Development Authority has a comprehensive master list, which is
readily available to everyone by virtue of research and development and compliance to
freedom of information - there is a need for partnership and complementary databank for the
whole cooperative sector. This is also in line with the digital ecosystem that is anchored on a
value chain that cuts across all clusters, and will be a very effective tool in decision-making,
advocacy, and in carrying out more programs17.

Social Impact

According to a study of the U.S. Overseas Cooperative Development Council (U.S. OCDC) 18,
International Cooperative Research Group, cooperatives offers varying socio-economic
impact to their members. Economically, cooperative members have access to “loans and
credits”, “dividends”, and “patronage benefits”. Others managed to access employment in
their area’s respective cooperatives. Another economic benefit is being able to fund, through
loans and credits” their own business ventures, thereby increasing their household’s
“economic well-being”19.
Cooperative membership also affected their “social capital” and community trust.
Cooperatives form an alternative support structure in times of socio-economic need and
emergencies. The economic access offered by cooperatives assist in the resiliency of the
household and the communities20. “Creation of job opportunities for non-members”, “sale of
cooperative products/services to the community”, and “resident’s improved financial
management”, are direct economic benefits of cooperatives in their community. There are
also indirect economic benefits to the community like further creation of businesses in the
community, decreased dependence on informal credit and finance facilities, and a general
increase in savings of the community21.

COOPERATIVE FEDERATIONS AND COOPERATIVE

UNIONS STATISTICS

Total Number of Cooperative

Region Federations (Secondary and Tertiary)

16 Lydia Canalija, “The National Cooperative Data Registry, Philippine Cooperative Central Data Registry.”
17 Canalija.
18 Judith Hermanson et al., “What Difference Do Cooperatives Make, Philippines Country Study” (1250 Connecticut NW,
Suite 700 Washington, DC 20036: U.S. Overseas Cooperative Development Council, July 2019).
19 Hermanson et al.
20 Hermanson et al.
21 Hermanson et al.

Establishing a National Union of Cooperatives p.8

Region 01 8
Region 02 12
CAR 6
Region 03 19
Region 04-A 13
Region 04-B 10
NCR 33
Region 05 9
Region 06 20
Region 07 15
Region 08 3
Region 09 9
Region 10 16
Region 11 10
Region 12 6
CARAGA 6
Grand Total 195
*Inclusive in the list are the 3 registered Tertiary Federations
Table 3. Number of Federations in the Country (2022)22.

Total Number of Cooperative

Assets Federations (Secondary and Tertiary)
Micro 86
Small 52
Medium 47
Large 10
Grand Total 195
Table 4. Number of Cooperative Federations per Asset Size (2022)23

Assets*
(billion
Cooperative Name (Cooperative Federation with Billions in Asset) PHP)
First Isabela Cooperative Bank (FICOBANK) 4.67
22 “Cooperative Masterlist, CDA (2022),” Excel Document (Cooperative Development Authority, n.d.).
23 “Cooperative Masterlist, CDA (2022).”

Establishing a National Union of Cooperatives p.9

1 Cooperative Insurance System of the Philippines Life and General
Insurance (1 CISP) 3.83
CLIMBS Life and General Insurance Cooperative (CLIMBS) 3.68
Metro South Cooperative Bank 3.66
National Confederation of Cooperatives (NATCCO) 3.47
Nueva Segovia Consortium of Cooperatives 3.40
Cooperative Bank of Cotabato 2.54
MASS-SPECC COOPERATIVE DEVELOPMENT CENTER 2.31
Ilocos Consolidated Cooperative Bank 2.28
Mindanao Consolidated Cooperative Bank 2.17
Consolidated Cooperative Bank (CCB) 1.71
Cooperative Bank of Benguet (CBB) 1.05
Table 5. Cooperative Federations with Billions in Assets (2022)24.

Total Number of Cooperative

Unions (Secondary, Sectoral,
Island Region Municipal, Tertiary)
Luzon Region 01 2
Region 02 2
CAR 5
Region 03 7
Region 04-A 7
Region 04-B 2
NCR 16
Region 05 5
Visayas Region 06 1
Region 07 3
Region 08 2
Mindanao Region 09 0
Region 10 3
Region 11 4
Region 12 2

24 “Top 100 Cooperatives,” Excel Document (Cooperative Development Authority, 2022).

Establishing a National Union of Cooperatives p.10

 CARAGA 1
Grand Total 62
*Inclusive in the list is 2 Compliant Registered Tertiary Union and 1
Registered Non-Compliant Tertiary Union
Table 6. Registered Cooperative Unions (2022)25.

ASSESSMENTS
From the data presented above, it can be seen that the Cooperative Union presence
(operationalizing presence through registered unions and active unions) in the country is low,
with the greatest representation coming from the National Capital Region. First things first, we
need to further assess the situation by determining the strength and health of the current
listed Cooperative Unions. After the earlier webinars/Technical Working Group Discussion and
discussions related to the states of the Union Cooperatives in the country (with
UMMC/Countpa and other Cooperatives and Organizations)26, some issues and hypothetical
reasoning for the status of the cooperative unions in the country were proposed.
On the previous discussion with Unions last 2022 regarding Union system strengthening,
major weaknesses were noted on the areas of (1) organizing, (2) promotions, (3)
membership, and (4) CETF remittance. Unions were having issues in the level of organizing
in their management staff. Some cooperative unions lack manpower to deploy education and
training programs, usually relying to volunteers. Membership gathering is difficult due to (1)
difficulty in promoting and lack of knowledge about union functions, (2) primaries have issues
with regard to dual membership between union and/or federation (this will be further
explained later), and (3) lack of appreciation to the representation value of unions. Connected
to the issue of dual membership is the issue of CETF remittance. Micro to medium level
primary cooperatives usually focus remitting their CETF to either Union or Federation only 27.

Another important thing to take note is the general unattractiveness of cooperatives to youth
membership or as potential space for job opportunities and career growth. This problem
seeps not just into unions, but sector-wide28. Other noted issues below:

Cooperative Development Officer

Some of the duties of the Cooperative Development Officer may be construed as the same as
the cooperative union’s. However, it should be noted that the CDO’s activities revolve around
the linkages of cooperatives with that external bodies and government agencies. The
objective of Cooperative Unions is not touched upon by the CDO, as the law is explicit on the
educative and advocacy value of cooperative unions (as limiting as that may be). While some
duties, responsibilities, and duties may run against each other – the CDO is still limited as it is
a public duty, while the cooperative union is still a private body. However, they do usually

25 “Cooperative Masterlist, CDA (2022).”

26 Union Strengthening Technical Working Group Discussions, Consultation/Technical Working Group, 2022.
27 Union Strengthening (TWG).
28 Luzon-NCR National Union of Cooperatives Establishment Consultation, Consultation, August 29, 2023.

Establishing a National Union of Cooperatives p.11

conflict as discussed during the 2021 technical working group. Areas lacking a strong or
functioning union usually has CDOs handling union duties.

The cooperative development officer, under the law, shall:

“(1) Formulate measures for the consideration of the sanggunian

(council) and provide technical assistance and support to the governor or
mayor, as the case may be, in carrying out measures to ensure the
delivery of basic services and provision of facilities through the organizing
promotion and development of cooperatives, and in providing access to
such services and facilities;

(2) Develop plans and strategies in consultation with the cooperative

sector and upon approval thereof by the governor or mayor, as the case
may be, implement the same, particularly those which have to do with the
integration of cooperatives values, principles, and practices in programs
and projects, which the governor or mayor is empowered to implement
and which the sanggunian is empowered to provide for;

(3) Take the lead in identifying groups, sectors, or communities that

can be organized into cooperatives; provide assistance to prospective
cooperatives in the conduct of the required preregistration seminar;
provide technical and other forms of assistance to duly registered
cooperatives; assist cooperatives in establishing linkages with government
agencies, cooperative unions, and federations, the academe, and non-
government organizations involved in the promotion and integration of the
concept of cooperatives;...”29

Other Cooperatives

Other capable and bigger cooperatives (both primaries and federations) are already running
their own advocacy and education, and research programs – not dissimilar to that espoused
by law as activities of the Cooperative Unions. As such, others may consider the Cooperative
Union redundant. Not only that, membership in a non-union cooperative is easier in the eyes
of the populace – especially credit cooperatives. An interesting paper “Income and
Happiness: A Philippine Context”30, stated the important part that credit and financing
cooperatives play in providing for low-income Filipinos.

29 “An Act Making the Position of a Cooperatives Development Officer Mandatory in the Municipal, City and Provincial
Levels, Amending for the Purpose Republic Act No. 7160, Otherwise Known as the ‘Local Government Code of 1991’,
as Amended,” RA 11535 § (2021).
30 R Palanca-Tan, “Income and Happiness: A Philippine Context.,” Philippine Journal of Science 150, no. 5 (2021): 951–
61.

Establishing a National Union of Cooperatives p.12

A Cooperative’s value may lie in its business or financial value, as such, endorsing for the
participation of individuals on advocacy and education activities is quite difficult. Thus, the
sheer education, training, and advocacy value of Cooperative Unions is inherently not hot in
the eyes of its usual participants. Another part of the identity problem is the sheer lack of
knowledge of the individual in the duties of cooperative unions, or if cooperative unions exist
at all. Even most cooperators who started a union had initial difficulty in gathering its
membership base and advocating union cooperative identity.

Finances

While those working already in strong cooperative unions may already know the financial
value (may it be employment etc.) of a cooperative union, funding may still be a problem
when it comes to cooperative unions as unions, by law, are not allowed to have capital share
contributions from its members. For those thinking of starting a cooperative union or
transitioning to a cooperative union, this may be a problem. However, there are ways to
resolve this like – (1) entering in a deed of donation, (2) having service fees and (3) clear
CETF policies and development programs to encourage CETF remittance to unions.
offsetting the capital with the supposed CETF to be remitted to the union 31. Additionally, in
discussions of the issues of the CETF and Mandated Training, there is no clear delineation
and devolution of responsibilities and tasks between Unions and other Cooperatives under
education and advocacy. Ideological conflicts arise between cooperatives.

Federation and Union

As per definition to the allowable functions of unions and federations, they both can conduct
training and education seminar for member cooperatives. This causes forms of “overlapping
functions and jurisdictions”. The so-called “duplicity of functions 32” permeate union and
federation even before the writing of the first version of the cooperative code. Aside from the
conflicts arising from choosing where to remit the CETF, “Federations and unions spread
themselves thinly” often surpassing their technical and financial limit, according to
Pagdanganan33. Instances of “unhealthy competition” and “strained alliances” happens.
Excluding specific regions and areas, both federations and unions remain weak34.

He also argues that, should CETF be remitted and be sufficient, the current cooperative
training and education system suffers from:

“(1) Lack of qualified cooperative educators

(2) Shortage of training materials
(3) Deficient Modular and Ladderized Training programs for cooperators at
different levels
(4) Limited Training Facilities especially in rural areas35”
31 Cooperative Development Authority, education, advocacy and union cluster consultation forum., n.d.,
https://cda.gov.ph/region-11/cda-conducts-education-advocacy-union-cluster-consultation-forum/.
32 Pagdanganan, An Urgent Call for Cooperative Revolution.
33 Pagdanganan.
34 Pagdanganan.
35 Pagdanganan.

Establishing a National Union of Cooperatives p.13

Accredited
Training
Provider CAR I II III IV IV NCR V VI VII VIII IX X XI XII Total
Union 1 1 2 2 6 1 4 17
Federation 2 1 1 1 4 2 3 1 3 2 1 1 1 1 24
Local CDO 1 2 9 8 2 5 3 2 1 1 2 36
SUC 1 1 1 3
NGO 1 1 2
GO 2 2
Foundation 1 1
Total 4 3 3 12 16 6 15 1 8 4 1 2 2 7 1 85
Table 7. Accredited Training Provider (2021)36

KEY ISSUES
Pagdanganan offers a succinct breakdown of the key issues in the sector not just on unions
and federations:

(1) Cooperatives, amidst the new enabling laws and amended cooperative code, stills fails to
follow the basic cooperative principles and governing laws37. This leads to non-compliance to
the authority, or equally worse, mission drifting38.

(2) “Lack of proper direction, prioritization and balancing of resources that insulate members
from destructive external influence”39.

(3) There is a lack of proper financial education for behaviour and attitude development of
members regarding “savings consciousness”, “fidelity to loan repayments”, and “productive
use of equity and dividend”40.

(4) Sectoral weakness when it comes to corporate and political intrusion that affects the whole
cooperative sector41.

36 “List of Accredited Training Provider, Cooperative Development Authority,” Word Document (Cooperative
Development Authority, 2021).
37 Pagdanganan, An Urgent Call for Cooperative Revolution.
38 Balu Iyer, “Statement of Cooperative Identity: Third Nepal Cooperative Congress” (Powerpoint Presentation, Nepal,
April 6, 2023).
39 Pagdanganan, An Urgent Call for Cooperative Revolution.
40 Pagdanganan.
41 Pagdanganan.

Establishing a National Union of Cooperatives p.14

There are additional issues coming from the discussion and data offered above:

(5) Weakness in a comprehensive cooperative education, from members to non-members42.

(6) Lack of legal harmonization in cooperative related laws, circulars, orders, etc4344.

(7) Difficulty in completing a consensus in key socio-political topics. This usually leads to a
lack of representation in national technical working groups related to policy or legal work that
could affect the sector. This also involves having a strong electoral position when it comes to
legislative champions, senatorial or congressional representative4546.

(8) Unions, in general, have organizational, management, promotions, and identity issues 47.

(9) The aforementioned union issue extends to the ideological and functional overlaps of
Federation and union, thereby extending the issue to the direction of CETF remittances 48.

(10) Difficulty in Cooperative branding, extending the problem to a lack of youth succession 49.

(11) Need for a comprehensive cooperative owned-database or registry, complementing that

of the authority’s.

(12) Electoral participation of cooperative members is currently low. With context, there is a
required effort in increasing elected cooperators in the legislative. Last election, COOP
NATCCO Partylist received 342, 757 votes (0.95%), while AGAP Partylist received 365,250
votes (1.01%)50.

To add to this, during the last National Anti-Poverty Commission (NAPC) Regional Sectoral
Assembly (RSA), the cooperative sectoral representatives, council members, and participants
pinpointed current key issues of the sector for the year 2023. Consolidated local sectoral
concerns and concise points as follows51:

(1) The cooperative sector has a need for better data consolidation and data collection;
proper data collection will lead to better compliance to the regulatory body, improved
reporting, sectoral inclusion to the national space, and greater over all presence.

Related to the concern above is the need for simplification of the authority’s reportorial
requirements and the need to expedite a proper and full transition to digital documentary
process.

42 Pagdanganan.
43 Luzon-NCR NUC Consultation.
44 Visayas-Mindanao National Union of Cooperatives Establishment Consultation, Consultation, August 23, 2023.
45 Luzon-NCR NUC Consultation.
46 Vis-Min NUC Consultation.
47 Union Strengthening (TWG).
48 Luzon-NCR NUC Consultation.
49 Luzon-NCR NUC Consultation.
50 “Halalan Results 2022,” News Website, ABS-CBN News, May 13, 2022, https://halalanresults.abs-cbn.com.
51 “Luzon RSA Output (Draft)” (National Anti-Poverty Commission, September 28, 2023).

Establishing a National Union of Cooperatives p.15

(2) Trainers should match the sector that they will be training. They should be expert
cooperators in their respective fields (i.e. trainers for the finance cluster should be experts in
credit and finance, trainers in agri-based technology should be practitioners of agricultural
craft, etc.)

(3) Total cooperative engagement and participation in the discussion of laws, taxation matters,
and other legislative or executive legal matters is still low. Laws may exist, however without
push for proper budgeting, enabling laws are fossilized.

(4) General atmosphere of financial and economic challenges:

• Low cooperative participation in the financial system (1.8%).
• Support needed for cooperatives, especially small ones.

(5) There is a need for more cooperative integration and collaboration. Encouragement for
inter-sectoral (cooperative to cooperative) and cross-sectoral (cooperative to non-
cooperative) is a must. Collaboration and forming connections helps balances the risks.

Connected to number 4 and 5, there are issues in capitalization and investor risks.

(6) While transport cooperatives are active and the consolidation efforts for the modernization
program are on-going, with multiple new transport cooperative being established, there are
still nationwide challenges in budgeting, subsidies, governance and management (new
cooperatives may not be used or adept into managing a transport cooperatives), and the
nature of just transition.

(7) The cooperatives need greater international participation.

(8) Similar to the issues of youth in cooperatives and attracting new talents, there are calls for
better benefits and salary structure for cooperatives to acquire and retain young and skilled
cooperators and leaders.

A NEED FOR A NATIONAL LEVEL ORGANIZATION

Guided by the issues gathered above, the Technical Working Group for the Establishment of
a National Union of Cooperatives pushes for the creation of a national-level coordinating body
to represent, complement, and assist the sector in mitigating the issues mentioned above.
What is the purpose of a National Cooperative Union, representing the sector on a national
scope?
In emphasizing the roles of National-in-Scope Cooperative, Mishra 52 posits the role of a
national-level cooperative in “protecting” and “preserving” the values and principles of
cooperatives. This role of an “Apex” is highly needed in a globalized and incorporated
environment. This organization should always put in the forefront the values and principles of
cooperatives and maintenance of cooperative identity. Tangible ways that this could be
52 Mohan Mishra, “Role of Apex Cooperative Federations in Liberal Market Regime.”

Establishing a National Union of Cooperatives p.16

delivered is through (1) “specialized training, education” (2) creation of an information
database, (3) networking and linkaging, (4) resolving cooperative disputes and, (5) promoting
cooperation among cooperatives53.
Creating an enabling environment for Cooperatives is also one of the key functions of a
National Union of Cooperatives. Similar to the above mentioned, there is an emphasis in
creating a consolidated vision and mission, connecting this in the protection and preservation
of the cooperative identity together with its values and principles. Another similar note is the
emphasis on networking and creation of linkages not just within the sector structure, but most
specially coordinating with organizational species outside the cooperative sector sphere 54.
Connected to this is the emphasis in research and development, policy-making, and lobbying:
“(1) To give the study of cooperation the importance and the resources
necessary to strengthen the movement;
(2) To develop the curricula and provide facilities to expand and improve
the education of cooperators and cooperative employees;
(3) To utilize the resources, expertise, and influence available with
international, non-governmental agencies;
(4) To re-examine policies, conditionalities, and related issues to evolve
new and innovative ways of financial supported55”
Shankar56, calls the policy-lobbying related function of a National Union of Cooperatives as
“Make(ing) out a case for good politics”.
In his conclusion, he mentions that in terms of advocacy work, the national cooperative
should handle issues that are above and higher than the lower tier organizations. This means
issues of advocacy that could not/should not be handled by the primary and secondary level
cooperatives should be specially handled by the National Cooperative. This devolution of
advocacy work would ensure that cooperative resources is efficiently and effectively utilized.
The national cooperative should also establish and deploy a comprehensive “information
technology” system. The usage of such technology is to have a repository of big data to
effectively engage a fast changing globalized community.
“Cooperative and particularly apexes will have to obtain up to date dis-
aggregated data of their constituency and businesses. Often times, it is

53 Mishra.
54 Ravi Shankar, “How Cooperatives and Their Apex Organizations Can Improve Their Environment at the Local,
National and International Levels” (Expert Group Meeting on Supportive Environment for Cooperatives: A Stakeholder
Dialogue on Definitions, Prerequisites and Process of Creation, Mongolia: Division for Social Policy and Development,
United Nations, 2002).
55 Shankar.
56 Shankar.

Establishing a National Union of Cooperatives p.17

 the lack of accurate and current data that leads to errors in judgment and
projections of ‘what is’ and ‘what ought to be’57.”
Last but not the least, the Apex organization will also “invest” and handle promotions and
marketing through the development of its “media relations”. The newer forms of electronic
media is a “core strength” not just of an organization, but a sector. The usage of media should
consistently impress upon the populace and other organizations that the cooperative sector is
active and flourishing58.

57 Shankar.
58 Shankar.

Establishing a National Union of Cooperatives p.18

Establishing a National Union of Cooperatives p.19
 CHAPTER II: CASE STUDIES

NATIONAL-LEVEL ORGANIZATION CASE STUDIES

An analysis on the functions of existing national-level/apex unions/cooperatives can further
pinpoint the functions and purpose of a National Union of Cooperatives.

Indian Cooperatives Situationer59

Cooperatives have a major role in India’s society, impacting its economy in a wide range.
According to a report by the International Cooperative Alliance, cooperatives are the mainstay
in the rural economics, “ensuring sustainable livelihoods and income” for the area. They are
present in a wide range of sectors including but not limited to agriculture, dairy, forestry,
fisheries, credit and banking, housing, and construction. The sector cooperatives serve
includes farmers, women, youth, poor, and the marginalized.

Cooperatives have a historical presence in India dating back to the early 1900s when they
were introduced during British colonial rule. The impetus behind credit cooperatives in rural
India was to protect impoverished farmers from the exploitative practices of money lenders.
The first credit cooperative society emerged in 1903 with support from the Bengal
government, operating under the Friendly Societies Act of the British Government.
Subsequently, the Co-operative Credit Societies Act of India was introduced in 1904. In 1919,
cooperation became a State subject and remained so even after India gained independence.

Between 1904 and 1930, credit cooperatives paved the way for the growth of agricultural
cooperatives. The establishment of the All India Cooperative Institutes Association (later
renamed NCUI in 1961) in 1929 marked a significant development in the cooperative
landscape. However, the Great Depression from 1929 to 1939 caused a decline in
cooperatives due to liquidation and mergers. To revive the cooperative sector, two major
initiatives were undertaken: the creation of the Agricultural Credit Department of Reserve
Bank of India (RBI) in 1935 and the introduction of multi-purpose cooperatives. The RBI
began refinancing cooperatives for Seasonal Agricultural Operations from 1939 onward.

During World War II (1939-1945), non-credit cooperatives, especially consumer cooperatives,

experienced substantial growth to combat rising consumer goods prices. Industrial
cooperatives were also promoted during this period to meet civilian needs. Post-
independence in 1947, cooperatives were recognized as essential for democratic economic
planning, aligning with the mixed-economy model and Five-Year Plans. This recognition led to
substantial support from the central government, encompassing various sectors, re-
organization efforts, and the expansion of cooperatives' role in public distribution systems.
The Registrar of Cooperatives became their custodian through the enactment of State Co-
operative Societies Acts post-1962.

59 “Mapping: Key Figures National Report, India” (International Co-operative Alliance Asia and Pacific, 2021).

Establishing a National Union of Cooperatives p.20

However, with the advent of liberalization, privatization, and globalization in the early 1990s
as part of the Structural Adjustment Program, the central government shifted its focus toward
the private sector for economic growth. This resulted in the reduction of subsidies supporting
the cooperative movement during the Eighth Five Year Plan (1992-1997). The subsequent
Ninth Five Year Plan (1997-2002) did not explicitly mention cooperatives in the central
government's economic development plan since cooperation became a State subject.
Nonetheless, in the early 1990s, constitutional amendments were proposed to reduce
government oversight, fostering autonomy and independence within the cooperative
movement.

In the mid-1990s, initiatives were launched by cooperative advocates to enhance autonomy

and independence. The introduction of the Mutually Aided Societies Act (1995) in Andhra
Pradesh promoted autonomous cooperatives free from government control or patronage. In
2002, the central government introduced a new National Cooperative Policy to empower
cooperatives as an alternative institutional mechanism against market forces and to protect
vulnerable members. This policy established government regulation for timely elections,
auditing, and safeguarding member interests, recognizing the apolitical nature of
cooperatives. Some states, like Karnataka and Kerala, followed suit by introducing their own
State Cooperative Policies to promote autonomy. As part of market reforms, the central
government introduced the concept of Producer Companies in 2002, allowing primary
producers and farmers to form cooperative economic enterprises to access national and
global markets, which was later incorporated into the Indian Companies Act (1956).

During their 17th Indian Cooperative Congress (organized by NCUI) 60, the impact of
cooperatives in India’s economy was highlighted. Key government officials advocates for
cooperatives in India, most specially, the current Honorable Prime Minister Shri Narendra
Modi. According to the Prime Minister, cooperatives had a significant impact on the economy
of India, especially in Dairy and sugar, where India became the largest global producer due to
cooperative participation. He also mentioned that 60 percent of Dairy cooperators in India
were 'sisters and mothers.' Modi emphasized the need to push for modernization in
agriculture, led by cooperative societies. He mentioned that the equitable costs of fertilizers
(where cooperatives in India are the lead producers) helped in the improvement of small
farmers. He also gave his praise to the Cooperative Unions in India for leading the awareness
programs for cooperatives and pushed further for the increase participation of cooperatives in
the country’s social reforms. In India, the Cooperative Sector contributes greatly to the GDP,
where the cooperative sector has 35% share in fertilizer enterprises, 15% in Milk production-
including capacities in international dairy trade, and 13% wheat contribution61.
In year 2018, the following are the key Indian Cooperative statistics62:
• 854,355 Indian Cooperatives

60 Ray John Santiago, “Narrative Report on the 17th Indian Cooperative Congress,” Narrative Report (Philippine
Cooperative Center, 2023).
61 Santiago.
62 “Mapping: Key Figures National Report, India.”

Establishing a National Union of Cooperatives p.21

 • 290.06 Million members
• Generated 13.3% direct employment
• Generated 10.91% self-employment

Indian Context: National Cooperative Union of India

Image 1: Logo of the National Cooperative Union of India63

The National Cooperative Union of India, (NCUI) was establish as an apex organization
aiming to represent the Indian cooperative sector. Initially created as All India Cooperative
Institutes Association (1929), then reorganized into the National Cooperative Union of India
(NCUI) after a merger with the Indian Provincial Cooperative Banks’ Association in 1961. It
later expanded its services, activities, and programs to help resolve the new issues in the
Indian cooperative movement.

Objectives of the NCUI64

“Expresses opinion on matters of cooperative policy and acts as the

accredited representative of the Indian Cooperative Movement in the
national and international spheres.

Organises cooperative education and training programmes and

popularises the principles and practices of cooperation.

Organises, conducts, collaborates and assists in carrying out research

and analysis of cooperative problems and formulation of projects for
cooperative development.

Arranges for the production and publication of literature and audiovisual

aids including films, filmstrips on cooperation and allied subjects.

63 “About NCUI,” ncui.coop, accessed September 18, 2023, https://ncui.coop/about-ncui.

64 “About NCUI.”

Establishing a National Union of Cooperatives p.22

 Lends publicity to the activities of cooperatives through periodicals,
journals, newspapers, pamphlets, brochures, books, films, broadcasts,
T.V. for creating favourable opinion for the development of the cooperative
movement.

Convenes and holds the National Cooperative Congress, Zonal

Conferences, Cooperative Seminars, Meetings, Conferences, Exhibitions
etc.

Selects delegates, representatives and observers on behalf of the

Union for participation in International, National and State Conferences.

Promotes international cooperative institutions and assists member

societies in resolving their problems and difficulties and formulation of
programmes and their implementation while preserving and safeguarding
the democratic character of the cooperative movement in the country.

Promotes international cooperative relations through active collaboration

with ICA, UNO, FAO, ILO, UNDP, UNIDO and other international agencies
involved in cooperative development.

Promotes international marketing on cooperative-to-cooperative basis by

documenting necessary information and acts as nodal agency for the
benefit of Indian Cooperative Movement.

Provides consultancy services to the cooperatives. 65” (Emphasis added in

bold)

Functioning Matters

In harmony with the established guidelines of cooperative operation, the NCUI is headed by a
president supported by the Chief Executive that manages the units or divisions of the NCUI
secretariat.

Over-all authority of the NCUI rests with the General Body comprised of its member
Federations and Unions. The General Body, which meets once a year, governs and decides
on the activities and programs of the Union. They also elect the “Governing Council” of the
union with a term of 5 years. The General Council (Board of Directors in the Philippine
setting) meets 4 times a year together with their executive committee and other
committees6667.

Key Activities and Projects

Cooperative Education Field Projects

65 “About NCUI.”
66 “About NCUI.”
67 “NCUI By-Laws,” n.d.

Establishing a National Union of Cooperatives p.23

NCUI targets and prioritizes lagging cooperative sectors. Currently they are working with 43
Cooperative Education Field Projects in “relatively backward states and areas”. They had
managed to raise the standard of living in the aforementioned areas through assisting in
development of income generating activities of the cooperatives in the areas. They also
connect target or lagging cooperatives with international cooperatives (ex. Ja-Zenchu, a
Japanese agricultural cooperative) to serve as “role models”.

National Centre for Cooperative Education (NCCE)

Established in 1958, the NCCE leads and organizes the education programs in all sectors
within the Indian Cooperative movement. They have diploma programs for skills training
(Diploma Programme in Cooperative Education and Development), leadership and
competence development (Leadership Development Programs) – targeting Chairpersons and
Directors. They also have “orientation courses” in “cooperative management” offered to
university and college lecturers. Their diploma courses are highly recognized even by
international cooperatives, as international cooperatives had been participating in the
educational courses of the NCCE. Their refresher courses for Faculty of Colleges and
Universities are specifically targeted to college and university sector in order to expand
cooperative reach and “attract” possible young cooperators. One of their main objectives is
“popularising” cooperative education in schools.

National Council for Cooperative Training

NCCT is the primary institution dedicated to enhancing the human resource development
(HRD) aspect of cooperatives. It conducts training programs for cooperative employees at
different levels, including Vaikunth Mehta National Institute of Cooperative Management
(VAMNICOM), Regional Institutes of Cooperative Management (RICMs), Institutes of
Cooperative Management (ICMs), and Junior Training Centres (JTCs). Additionally,
VAMNICOM offers a two-year Post Graduate Diploma Programme in Business Administration
for cooperative sector talent, as well as a Diploma in Cooperative Business Management for
in-service personnel.

Besides traditional cooperative programs, NCCT offers professional courses such as PGDM
(Agri-Business), MBA, PGDCA, BBA, and Diploma in Rural Management, focusing on
providing participants with the necessary knowledge and skills to manage both corporate and
cooperative enterprises. Research and consultancy services are also integral to NCCT's
mission, with training units conducting field-based studies and sharing findings through
publications.

Accreditation of training institutions is ensured through the Center for Professional Excellence
in Cooperatives (C-PEC) by Bankers Institute of Rural Development (BIRD) of NABARD,
guaranteeing training quality. The faculty at RICMs/ICMs is certified trainers for financial
cooperatives. NCCT maintains high training standards by collaborating with national and
international organizations concerned with HRD, conducting collaborative programs, and
providing well-equipped facilities.

Publications
NCUI publishes journals such as "The Cooperator" and "Indian Cooperative Review,"
covering topical issues and research articles in the cooperative sector. They maintain a rich

Establishing a National Union of Cooperatives p.24

collection of books on success stories, legal aspects, and cooperative trends. The Statistical
Profile keeps policymakers informed about changing trends in cooperative movements across
sectors.

Cooperative Congress
NCUI formulates policies and programs to highlight cooperative achievements and chart the
future of the cooperative movement in India. The Cooperative Congress, a major event,
reviews trends and offers future projections. The 16th Indian Cooperative Congress in 2013,
inaugurated by the President of India, hosted around 2000 delegates.

Publicity and Public Relations

NCUI conducts various activities for publicity and public relations, including the All India
Cooperative Week, lectures from distinguished personalities, and maintaining strong press
relations. They organize conferences and seminars to build support for cooperatives.

International Cooperative Relations

As the apex organization in Indian cooperatives, NCUI collaborates with international
agencies such as ICA, UNO, FAO, ILO, UNDP, and UNIDO. It actively participates in
committees and assemblies, especially in the Regional Office for Asia and Pacific. Staff from
cooperative institutions are sent for training and conferences abroad. International study
exposure visits are facilitated through MoUs with selected countries to promote cooperative
best practices and cultural exchange. NCUI also celebrates International Cooperative Day
with a symposium and a Children's Painting Contest.

Core Functions

In essence, the core duties of the NCUI can be summed up as: (1) representation, (2)
advocators, specially in policy and legal related cooperative concerns, (3) education and
training, (4) promotion of cooperatives in different medias, locally and internationally, (5) and
cooperative research and development.

Membership

NCUI membership comprises of national level, state level, and multi-state cooperative
societies. The membership encompasses all sectors within the cooperative movement,
including unions and federations. Relating this to the Philippine Cooperative setting, all the
members of the NCUI are on secondary and tertiary level cooperatives. There are no
primary level cooperatives68. Last 2021-2022, NCUI had 284 member cooperatives6970.

Budget and Sustainability

Under NCUI’s By-Laws, they are allowed to “maintain the following funds”71:

68 John Minton, Lunch Interview with John Minton, International Relations Officer (NCUI), Interview, June 2, 2023.
69 “Annual Report 2021-2022,” Annual Report (India: National Cooperative Union of India, 2022).
70 “NCUI By-Laws.”
71 Minton, Lunch Interview with John Minton, International Relations Officer (NCUI).

Establishing a National Union of Cooperatives p.25

 (a) Cooperative Education Fund,
(b) National Cooperative Training Fund,
(c) Corpus Fund,
(d) Reserve Fund,
(e) Building Fund,
(f) Any other fund as decided by the governing council from time to time72.

Sources of funds according to their By-laws may be gathered from:

(i) admission fee

(ii) annual membership subscription;
(iii) contribution or donations;
(iv) grants from government;
(v) moneys/income from the cooperative education fund created as per Act and
Rules and maintained by the Union;
(vi) sale proceeds of publications, journals, text books, films etc.
(vii) loans and advances; and
(viii) income from exhibitions, projects, consultancy services or any other
activities undertaken by the Union as per its bye-laws.
(ix) Profits from economic activities.

Under its Annual Membership Subscription73:

(i) each member society shall pay subscription to the Union at the rates
specified in Schedule I which may be revised by the Governing Council from
time to time.
(ii) annual subscription from members shall fall due at the commencement of
each cooperative year, i.e. on the 1st day of April every year and shall be
payable by 1st July of the year.
(iii) in case of default in payment of membership subscription, the member
society shall be liable to pay penal interest at the rate as may be decided by the
Governing Council from time to time.

72 “NCUI By-Laws.”
73 “NCUI By-Laws.”

Establishing a National Union of Cooperatives p.26

Image 1: Annual Membership Subscription System as of 201774 (1 Indian Rupees = 0.68
Philippine Peso75)

74 “NCUI By-Laws.”
75 conversion rate as of 11:09, September 25, 2023

Establishing a National Union of Cooperatives p.27

Image 2: Status of Membership Subscription, NCUI, 2021-202276

Looking at the status of membership subscription of NCUI for year 2021-2022, the amount
readily changes depending on the preference and wisdom of the General Assembly. Legally
speaking, NCUI does not run any form of business as a cooperative 77. They do own
properties which they rent out, this subsidizes some of their operations, this is also indicated
by their by-laws:
“(viii) income from exhibitions, projects, consultancy services or any other
activities undertaken by the Union as per its bye-laws.
(ix) Profits from economic activities.”

NCUI at the Moment

In the study conducted by USAID regarding Apexes and National Scope Cooperatives 78,
NCUI’s capitalization is 82.5% internal funding (membership dues, cooperative education
fund, earning from NCUI funds-investments, advocacy and training program profits,
rent/income from properties, sales and publications and other media) and 17.5 external
funding (grants from government and other member cooperatives). Generally speaking, it is
preferred that for an Apex or National-Scope cooperative to function and be sustainable, a
large degree of its capitalization should come from internal funding.

Image 4: NCUI Capitalization79

Their key services revolves around the following:

76 “Audit Report 2021-2022,” Audit Report (India: National Cooperative Union of India, 2022 2021).
77 Minton, Lunch Interview with John Minton, International Relations Officer (NCUI).
78 Barak Hoffman and Nicholas Prichard, “Study on the Efficacy of National-Level and Apex Cooperative Associations
Final Report” (USAID, June 12, 2019).
79 Hoffman and Prichard.

Establishing a National Union of Cooperatives p.29

Image 4: Services offered by NCUI80

The research also measured and operationalized the Cooperative Enabling Environment
through observing the country’s enabling law and regulations vis a vis the cooperative
membership as per percent of population, NCUI exists in a very cooperative conducive
environment. See figure below:

80 Hoffman and Prichard.

Establishing a National Union of Cooperatives p.30

Image 5: Cooperative Enabling Environment for NCUI (India)81

In the past years, NCUI had activities and programs that support the Indian Cooperative
Sector nationally. NCUI, together with the other advocates of the Indian Cooperative
Movement, successfully pushed for the 97th amendment of the Indian Constitution and
provisions that are enabling and favorable for cooperatives.

“The Amendment recognized the formation of cooperatives as a

fundamental right of Indian citizens; State governments were mandated to
make conducive legal environment for the promotion of autonomous
cooperatives, among other provisions82.”

The Indian Supreme court struck down certain provisions, shrinking down the exclusive
authority of Indian States over cooperatives. While certain provisions are still not fully
implemented yet, citing “operational difficulties”, the prima facie existence of cooperatives in
the Indian constitution is telling of their socio-economic influence.

In 2019, the NCDC (National Cooperative Development Corporation), together with NCUI
launched the Yuva Sahkar Scheme (youth cooperative scheme) as a promotion of
cooperatives to young entrepreneurs. Young entrepreneurs are offered financial and credit
assistance and facilities, up to 80%, to build up their cooperative enterprises and projects.

In 2021, the Ministry of Co-operation (Indian version of CDA, but departmental in scope, with
a dedicated and separate budget) was created by the Indian Government, pushed by the
NCUI (in turn, pushed by the sector as a whole). Their main function is to serve as the official
government arm providing administrative, legal, and policy framework for cooperative sector
strengthening. Part of their objective is to provide the same facilities available to the corporate
sector to cooperative societies. The Ministry managed to reduce the price of products in the
market and is now working to resolve other issues of cooperatives in India 8384. Among the
rural support achievements of NCUI is serving as the lead in providing equitable costs for
fertilizers; helpful also is the fact that Indian cooperatives are the lead producers of fertilizers.

In the 17th Cooperative Congress (2023), Prime Minister Modi presided the NCUI lead
launching of the Indian Cooperatives E-Portals for E-Commerce website for Cooperative
Marketing and Cooperative Extension and Advisory Services Portal85.

Succinctly, the National Cooperative Union of India thrives in the big cooperative sector of
India and the long history of Indian cooperativism. At the same time, they assisted the sector
in advocacy building, political power base acquisition, research development, education and
trainings, promotions, and local and international representation.

81 Hoffman and Prichard.

82 “Mapping: Key Figures National Report, India.”
83 Santiago, “Narrative Report on the 17th Indian Cooperative Congress.”
84 “Mapping: Key Figures National Report, India.”
85 Santiago, “Narrative Report on the 17th Indian Cooperative Congress.”

Establishing a National Union of Cooperatives p.31

OTHER NATIONAL-SCOPED COOPERATIVES/APEXES
Continuing on the study of USAID regarding apexes86, here are the functions and Services of other National Cooperatives and
Unions serving the apex or national union of their respective countries:
Cooperative and Advocacy Lobbying Environment/ Legal Technical Training Marketing/ Technology Consulting Regulation Security Mortgages/Risk
Country (specific) Conservation Assistance Education/Capac Public Management/Insura
Representation ity Building Relations nce/Start-up
Assistance/Finance/
Market Development

NATIONAL
COOPERATIVE
UNION OF INDIA

MOZAMBICAN
ASSOCIATION FOR
THE PROMOTION
OF MODERN
COOPERATIVES

GHANA
COOPERATIVE
CREDIT UNIONS
ASSOCIATION

KENYA UNION OF
SAVINGS AND
CREDIT
COOPERATIVES

LEGA NAZIONALE
DELLE
COOPERATIVE E
MUTUE

ORGANIZATION OF
BRAZILIAN
COOPERATIVES

FEDERACION DE
COOPERATIVAS
DE PRODUCTORES
DE CAFE DE
GUATAMELA

Table 8: Services Offered by other National Cooperatives/Apexes from the USAID APEX Efficacy Study 87

86 Hoffman and Prichard, “Study on the Efficacy of National-Level and Apex Cooperative Associations Final Report.”
87 Hoffman and Prichard.
To analyze further, we can simplify the functions of each apexes according to their general purpose.

Cooperative and Advocacy-Lobbying Environment/ Technical Assistance Training Marketing/ Technology Regulation Business Related
Country Conservation Including Legal Education/Capac Public Activities*
Representation Services and ity Building Relations
Consulting

NATIONAL
COOPERATIVE
UNION OF INDIA

MOZAMBICAN
ASSOCIATION FOR
THE PROMOTION
OF MODERN
COOPERATIVES

GHANA
COOPERATIVE
CREDIT UNIONS
ASSOCIATION

KENYA UNION OF
SAVINGS AND
CREDIT
COOPERATIVES

LEGA NAZIONALE
DELLE
COOPERATIVE E
MUTUE

ORGANIZATION OF
BRAZILIAN
COOPERATIVES

FEDERACION DE
COOPERATIVAS
DE PRODUCTORES
DE CAFE DE
GUATAMELA

*In the Philippine Cooperative Setting, these are Cooperative Business Function, outside the legal definition of Cooperative Unions in the Philippines (Mortgages/Risk Management/Insurance/Start-up
Assistance/Finance/Market Development/Security)

Table 8.1: Modified Services Offered by Apexes/National Union of Cooperatives

As we can see, we grouped Advocacy together with Lobbying. We also grouped together all forms of technical assistance that
categorically and legally can be conducted by Cooperative Unions in the Philippines. We also group all forms of cooperative
businesses, if to be defined in the Philippine Cooperative Legal Context.
For capitalization practices:

Cooperative and Country Representation Internal Funding External Internal Funding

Funding* Source
NATIONAL COOPERATIVE UNION OF 82.5% 17.5% Membership Dues, CETF,
Earnings from Investments,
INDIA (INDIA) Program/Service Profits,
Rent/Income from Properties,
Sales of Publication

MOZAMBICAN ASSOCIATION FOR THE 2% 98% Membership Dues

PROMOTION OF MODERN
COOPERATIVES (MOZAMBIQUE)**
GHANA COOPERATIVE CREDIT UNIONS 100% 0% Membership
Dues,Program/Service
ASSOCIATION (GHANA) Profits,

KENYA UNION OF SAVINGS AND CREDIT 100% 0% Membership

Dues,Program/Service
COOPERATIVES (KENYA) Profits,Research Dues

LEGA NAZIONALE DELLE COOPERATIVE 100% 0% Membership Dues,

Program/Service Profits
E MUTUE (ITALY)
ORGANIZATION OF BRAZILIAN 100% 0% Membership Dues,
Program/Service Profits/Fees
COOPERATIVES
FEDERACION DE COOPERATIVAS DE 100% 0% Membership Dues,
Program/Service Profits/Fees
PRODUCTORES DE CAFE DE
GUATAMELA
*Government Grants
**Currently Inactive, Board non-functional
Table 9: Capitalization Sources88

To further note, the Mozambique Apex is currently inactive due to issues of grant usage. The
general recommendation is to go for self-sufficiency in order to be successful. There are
many ways as to how National Cooperatives gather resources from charging service fees for
their programs and services, a system or form of annual dues, property utilization, and a
country specific version of Cooperative Education and Training Fund (CEFT).

A New Apex Organization: Case of Japan Co-operative Alliance’s

The Japan Co-operative Alliance (JCA) came from the reorganization of the Japan Join
Committee of Co-operatives’s (JJC) which was created in 1956 with the initial purpose of
connecting and forging partnerships for Japanese Cooperatives to collectively address the
challenges faced by their respective sector. They also aimed to support cooperatives in
collaborating internationally89.

88 Hoffman and Prichard.

89 “About JCA,” n.d., https://www.japan.coop/about/organization.php#anc_overview.

Establishing a National Union of Cooperatives p.34

Following extensive deliberations spanning more than 18 months, the JJC arrived at a
unanimous decision among its members to undergo a transformation into a new apex
organization, driven by the overarching goal of empowering the co-operative sector to
proactively expand its contributions and functions within local communities90.

Japan Context

Japanese Cooperatives’ main concerns includes the ever widening wealth gap, social
divisions, and increased precarity and social isolation. While these are issue not unique to
Japan, Japanese cooperatives also needs to face their country’s shrinking and aging
population, compounded by the declining birthrate. The population and workforce problems
affected the economic vitality of regional areas due to the weakening of rural industries and
population outmigration. While internationally, co-operatives are expected to play a pivotal
role in alleviating poverty, creating employment, fostering social inclusion, and contributing to
sustainable local communities, as evidenced by their inclusion in UNESCO's Intangible
Cultural Heritage of Humanity list and alignment with Sustainable Development Goals
(SDGs), Japan is undergoing diverse discussions to determine the most desirable forms and
functions of co-operatives. Thus cooperatives are tapped, more so now, to address the social
and economic concerns of Japan’s communities with a specific mission of “creating better life
and work in sustainable local communities91.”

Japanese Cooperatives are active in diverse economic areas (agriculture, forestry, fisheries,
retail, finance, mutual aid, employment creation, welfare, medical care, travel, housing, etc.).
There are an estimate of 65 million cooperative membership, though these memberships
might overlap.

One of the major difference is that each cooperative economic area develop in its own way
and is not covered by one major law, but is based on different laws and overseen by different
government authority. To note and to serve as an example, see the membership clause of
JCA92:

xxxx

First Category Members Those who are legal entities or organizations with regional
representation and have joined JCA in agreement with its objectives, falling into any of the
following categories:

1. Legal entities established under the Agricultural Cooperative Act (Law No. 132 of 1947),
Consumer Cooperative Act (Law No. 200 of 1948), Fisheries Cooperative Act (Law No. 242 of
1948), Forest Cooperative Act (Law No. 36 of 1978), Small and Medium-sized Enterprises
Cooperative Act (Law No. 181 of 1949), Labor Bank Act (Law No. 227 of 1953), Credit Union
Act (Law No. 283 of 1951), Agricultural and Forestry Central Bank Act (Law No. 93 of 2001),
or Laborers' Cooperative Association Act (Law No. 78 of 2020).

90 “Reorganization to a New Apex Organization” (Japan Joint Committee of Co-operatives, February 7, 2018).
91 “Reorganization to a New Apex Organization.”
92 “Reorganization to a New Apex Organization.”

Establishing a National Union of Cooperatives p.35

 2. Legal entities, except those mentioned in (1), that are primary members of organizations
established based on laws listed in (1), excluding the Agricultural and Forestry Central Bank
Act.

3. Legal entities and organizations recognized as first category members by the general
assembly, excluding those mentioned in (1) and (2)93.

xxxx

(translated from Japanese)

This is one of the reasons why although individual co-operatives (e.g., consumer co-
operatives, agricultural co-operatives) are widely recognized, the organization and activities
as “co-operatives” are not. Therefore, JCA saw the necessity to promote cooperatives to the
general public. According to JCA, if cooperatives are to take on more significant roles, there
is a need to reinforce their structure and expand their functions.

Key Functions9495:
Promote inter-co-operative collaborations (promotion and support)
• Plan and promote inter-co-operative collaboration at the national level
• Support collaborations within prefectures and communities
• Collaborate with government/NPOs/other organizations mainly in implementing activities for
protecting people’s livelihoods, jobs and communities
• Collaborate with international organizations such as the International Co-operative Alliance
(ICA); disseminate information across the international community
• Support the establishment of outside-the-box unconventional co-operatives

Make policy proposals; engage in public relations activities (dissemination of

messages)
• Make policy proposals and engage in negotiations to protect members’ livelihoods, jobs and
local communities
• Disseminate information and engage in public relations activities to share with society what
co-operatives do, help people gain a better understanding of co-operatives, and encourage
participation

Provide education and conduct research (analysis, sharing and proliferation)

• Provide education and training to co-operative members and co-operative managers and staff
members
• Provide education to the general public by sponsoring university courses and outreach
programs for compulsory education
• Conduct surveys/research and maintain databases on and in relation to co-operatives

93 “一般社団法人 日本協同組合連携機構 定款 (Japan Co-Operative Alliance Articles of Incorporation),” 2023.

94 “About JCA.”
95 “一般社団法人 日本協同組合連携機構 定款 (Japan Co-Operative Alliance Articles of Incorporation).”

Establishing a National Union of Cooperatives p.36

CHAPTER III: NATIONAL UNION OF COOPERATIVES

Establishing a National Union of Cooperatives p.37

 BIBLIOGRAPHY AND SOURCES

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“NCUI By-Laws,” n.d.

Establishing a National Union of Cooperatives p.38

ncui.coop. “About NCUI.” Accessed September 18, 2023. https://ncui.coop/about-ncui.
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Establishing a National Union of Cooperatives p.39

A SUPPORT AND COMPLEMENTARY STRUCTURE
Summarize key concerns

Establishing a National Union of Cooperatives p.40

ESTABLISHING A NATIONAL UNION OF COOPERATIVES

IDEAL FEDERATION AND UNION SYMBIOSIS

Fed, Union, Government

ESTABLISHMENT OF A REPRESENTATION AND

SUPPORT STRUCTURE FOR COOPERATIVES:
NATIONAL UNION OF COOPERATIVES
Core Functions
Unit Functions
Membership
Organizational Structure
Sustainability
Issues
Government
Have weak social security, social welfare and pro-poor programs
lack the basic social infrastructure such as health care, infrastructure housing, employment
and industrial development programs
fail to integrate cooperative education into the mainstream of public and private academic
programs
Weak legal fabric due to absence or lack of enabling laws and legislation that support the
development of entrepreneurship and cooperatives

GGGG
The caveat to cooperatives in developing such linkages is that they should be careful to
ensure that in the process they do not undermine the very principles of self reliance, mutuality
and autonomy that are essential to genuine cooperation.
GGGG
a representative of the sector to assist in navigating the movement.

Establishing a National Union of Cooperatives p.41

Establishing a National Union of Cooperatives p.42