The National Economic Development Authority (NEDA) released recently the 2023-27 Philippine Development Plan which mentions “cooperatives” fifteen times. This is a recognition that cooperatives are factors in Philippine development. The PDP also prescribes digitalization, business continuity planning, resiliency, and credit information as major keys to co-op growth.

The National Economic Development Authority (NEDA) released recently the Philippine Development Plan (PDP) 2023-2027 with marked increase in mentions of the word "cooperative".

According to the NEDA website, the PDP is “a plan for deep economic and social transformation to reinvigorate job creation and accelerate poverty reduction by steering the economy back on a high-growth path. This growth must be inclusive, building an environment that provides equal opportunities to all Filipinos, and equipping them with skills to participate fully in an innovative and globally competitive economy.”

For the first time, the word “cooperative” is mentioned fifteen times in the 450-page document.  

Previous PDPs hardly mentioned co-operatives.  In the 2012-2016 PDP, co-ops were just mentioned in a footnote.  In the 2017 edition, cooperatives were mentioned less than five times.

The increase in mentions in due in part to the Cooperative Development Authority’s (CDA’s) inputs.  This is a recognition that cooperatives are indeed partners in Government’s thrust for development.

The PDP in page 81 prescribes Government to tap co-ops in its nutrition programs: “To the extent possible, food requirements of feeding programs and relief operations shall be sourced from farmers and fisherfolk groups and cooperatives, which will also provide farmers and fisherfolk with assured markets.”

Modernize Agriculture and Agribusiness, the Plan on Page 125 prescribes: “Government will . . . strengthen support for bridging institutions, such as cooperatives and farmers associations, as channels of technology diffusion . . . . the Dept. of Agriculture (DA) and Dept. of Agrarian Reform will continue to promote private sector engagement with smallholder primary producers through agribusiness venture agreements . . .

This continues on page 131: “Agricultural cooperatives will also be strengthened by enhancing the coordination mechanisms between the DA and the CDA, with the DA assuming a greater role in steering the needed development interventions to organize smallholder farmers and link them with investors.  This strategy ensures horizontal and vertical coordination and multi-sectoral approach.”

To facilitate agricultural trading and retailing, it was also prescribed the use of the CDA’s Co-opBiz website as an online platform for transaction and delivery of agri products of cooperatives, and also e-Kadiwa linking producers and agripreneurs.

To promote ‘Trade and Investments’, page 196 states: “The Plan also prescribe that the Dept. of Trade & Industry’s Shared Service Facilities  like marketing, digitization, administrative and finance, promotions, logistics, distribution be provided to MSMEs and cooperatives with potential export transitions.  The idea is to include co-ops and MSMEs in value chains.”

For credit co-operatives, the Plan prescribed on page 229: “. . . business continuity and resiliency are some of the challenges to be hurdled.  Adoption of technological innovations will enable cooperatives to reduce costs and improve accessibility of services to members.”

The idea is to make the financial sector inclusive, innovative and healthy through technology and resiliency.

Financial literacy is also highlighted in page 231: “The Cooperative Development Authority will promote financial literacy, along with the Bangko Sentral ng Pilipinas, Land Bank of the Philippines, Securities & Exchange Commission and the Philippine Deposit Insurance Corporation.”

Page 232 – 233 also prescribed digitalization of financial institutions would “enable smaller FI’s greater efficiency, diversity and flexibility in the services they offer.”

It also states that “Government will create an enabling environment and adopt programs to promote financing products responsive to the needs of MSMEs and cooperatives which may not have the necessary documents, credit history, or collateral to access the usual financing sources.  Government will provide value chain and supply chain financing, as well as movable asset financing, and (other loans) that can expand the financing options of co-operatives.”

Government will also enhance the implementation of the Credit Surety Fund Cooperatives

The Philippine Guarantee Corporation will support cooperatives in the regions to facilitate and promote trade and investments, and regional development.  

To diversity financing sources for cooperatives, the SEC will encourage crowdfunding (This may go against the co-op value of self-help -- Ed)

To decrease delinquency or non-payment of loans, the PDP in page 235 says “Government will promote the use of credit databases, develop frameworks and tools for collecting and sharing financial data of cooperatives for credit evaluation . . .”

And since 5% of Filipinos still live without electricity, and since access to electricity uplifts lives, the Plan, on page 259, recognizes that electric cooperatives face management issues, pilferage, obsolete or dilapidated facilities, and non-payment by customers.