Political relevance and democratization of wealth

Bencyrus Ellorin

Conclusion

AS in any social movement, leadership is essential for the cooperative movement to attain its social objectives.

The asset distribution of cooperatives is very much like the country’s wealth distribution structure, with 90 percent of cooperative assets concentrated on medium and large cooperatives or those with over over P15 million assets.

But the medium and large cooperatives should not be faulted for this. In the cooperative roadmap championed by Cooperative Development Authority (CDA) chairman Orlando R. Ravanera, medium and large cooperatives are enjoined to create funding mechanisms to help micro and small cooperatives for supply and value chain processes. Through this, micro and small cooperatives which are into agriculture production, for example, can access post-production capital for value-adding and/or direct marketing access to medium or large production cooperatives.

In the table for discussion, for example, is how to link cooperative corn producers in Mindanao to corn processing cooperatives like the Soro-soro Ibaba Development Cooperative (SIDC) in Batangas. The SIDC has been importing corn from Indonesia for its feedmills, while corn producers in Mindanao are complaining of low farm gate prices.

Another project being mulled is for cooperatives to directly import of agricultural inputs like fertilizers. Studies made by the CDA indicate that bulk importation of fertilizer can drastically reduce the prices, benefiting the farmers.

On the policy front, through the efforts of the cooperative bloc in Congress led by Rep. Cresente Paez of Coop Natcco Party List, the Credit Surety Fund Cooperative Act (RA 10477) was passed in the 16th Congress. It took effect last Feb. 6. This law would establish a credit surety fund which would serve as security to loans of MSMEs from banks. This makes the perennially unbankable entrepreneurs bankable. The CSF Cooperative Act is an excellent law that would engender financial inclusion of poor entrepreneurs, especially cooperatives. If implemented with utmost diligence, the law could facilitate the raising of P5 –  P20 credit surety fund in a year or two. This could translate into P50 – P200 billion fresh loan from banks to MSMEs

Protecting the interest of cooperatives and sustaining its gains is a major challenge. Without solid government support, grand plans laid out in the cooperative roadmap will be stuck on paper.

Thus, the option to broaden political participation by sending a candidate for the Senate was agreed. There were names floated, aside from Paez of Coop Natcco party list. Among them were Ravanera and retired general Albert Llanto of the ACDI Multi-purpose Cooperative which is currently the largest cooperative in the country in terms of assets. Both begged off, leaving the 69-year-old legislator who was scheduled for medical surgery late last year, as the remaining contender. Two major political groups showed interest in having Paez in their slate, the groups of Grace Poe and the Daang Matuwid Coalition. As it turned out, Paez ended with the administration slate as a guest candidate. He filed his certificate of candidacy as an independent.

The Cooperative Movement joined electoral politics through the party list system in 1998. The Coop Natcco got enough votes in the 1998 election to have veteran social development worker and cooperative development expert Paez seat as a congressman.

Since then, the cooperatives were no longer muted in Congress. Aside from Coop Natcco, other cooperatives also joined the party list system. In the 16th Congress, the Cooperative Bloc is composed four party list groups with Coop Natcco having two seats: Paez and Rep. Anthony Bravo; Agricultural Sector Alliance of the Philippines (Agap) with Rep. Rico Geron and Rep. Nicanor Briones; 1Care with  Butil with Rep. Agapito Guanlao; 1Care with Rep. Eduardo Masongsong and Rep. Michael Angelo Rivera. The cooperative bloc and several large cooperatives are now behind the Cooperative Coalition Party which is pushing Paez’s Senate bid.

If the tale of the tape is to be considered, Paez is among the most qualified for the Senate among the candidates now. Admittedly though, his Senate bid is not a walk in the park. The cooperative movement obviously started slow in mobilizing support for their Senate bet.

Paez’s victory in the Senate rests in how the cooperative movement effectively tasks itself to muster the votes of cooperative members. The CDA counts 13 million Filipinos as members of cooperatives. The Cooperative Movement has the numbers to send a representative to the Senate. Aside from the 13 million cooperative members, according to the CDA, cooperatives directly employed 520,000 in 2014. These employees earn their living working in cooperatives as financial managers down to utility workers. Another 1.9 million, according to the CDA are indirectly employed by cooperatives. Many medium and large cooperatives can compete with big businesses. They have their own buildings, their executives drive the latest cars and are commensurately compensated.

The inclusion of Paez in the administration’s Daang Matuwid Coalition is indubitably a big help.

But, big and small, these cooperatives should work hard to command votes from member-cooperators and the general public. Cooperative executives should roll up their sleeves and campaign for their respective cooperative party list group and Cris “Mr. Coop” Paez.

The Cooperative Movement has to prove equal to the task of showing the power and the will to elect its representative in the Senate. Should it fail, it would expose its weakness and the movement will become extremely vulnerable to attacks from other business interests. The movement may have to contend with the greater possibility of losing its privilege of tax exemption, among others, which has proven to be its competitive edge in giving low interest loans and other services to the poor.

 (Bencyrus Ellorin served as chief of staff of the current CDA chairman. He is now a campaign volunteer of the Cooperative Coalition Party.)