1st Asian Cooperative TEAMshop
Cebu International Convention Center
Mandaue City, Cebu
November 18, 2009

SPEECH OF SENATE PRESIDENT JUAN PONCE ENRILE

National Cooperative Development Council Chairman Mr. Arthur Aller, Cooperative Development Authority Administrator Ms. Rosalinda Villaseca, delegates, distinguished guests, friends, ladies and gentlemen, a pleasant morning to all of you.

Let me begin by extending a warm welcome to our foreign visitors and wishing each one a memorable and meaningful stay in our country. I am hopeful that you will bring back to your respective countries great memories of the Philippines. Moreover, I wish that you will again include our country in your future travels.

Secondly, I would like to commend the men and women who have been working tirelessly to make this occasion successful. I would like to congratulate the National Cooperative Development Council and the Cooperative Development Authority for organizing the First Asian Cooperative TEAMshop. Your objectives are notable and I am truly impressed by your theme, “Doing Good, Doing Well Through Coopreneurship.” The presence of illustrious resource persons, as well as the overwhelming attendance of cooperative leaders, practitioners and advocates in the Philippines and from all over the Asian region make this event an auspicious occasion to strengthen linkages, exchange ideas, experiences and insights.

Today, the global economy is facing enormous challenges. It is not hard to predict what is in store for labor-exporting countries like the Philippines, given the economic difficulties that rich countries are facing right now. However, even if the forecast for the global economy is not rosy, I still hope for a brighter economic future for our country for as long as cooperatives continue to exist.

The current global economic malaise which resulted in the collapse of seemingly invincible corporate giants and sent waves of economic uncertainty around the world prompts us to look deeply into the significant role that cooperatives play in the development of communities and domestic economies.

If we recall, the birth and growth of cooperatives date back to the agricultural and industrial revolutions of the 18th and 19th centuries. History tells us that despite some mishaps and false starts, cooperatives played a crucial role in the economic development of communities and nations.

Cooperatives are effective engines of sustainable economic growth. They have contributed immensely in the improvement of lives and to the economic, social and cultural advancement of communities. Cooperatives also enhance unity, foster camaraderie and nurture seeds of stability and social responsibility. They empower communities, enabling the people to respond effectively to challenges such as natural disasters, humanitarian and economic crises. Cooperatives serve as a bridge between the people at the grassroots level and the government. They facilitate the people’s participation in nation-building.

Cooperatives also provide essential services to the community such as credit and banking, electric power, housing and many more. In conflict-ridden areas, cooperatives are veritable partners of the government in peace-building efforts and in the promotion of lasting peace and development.

The nature of cooperatives contributes to the development of social capital in the community. They are effective partners of the government in the empowerment of marginalized groups such as senior citizens, women and people with disabilities. They are also indispensable allies and co-workers during humanitarian crises and in the rehabilitation efforts for victims of natural disasters.

The immense contribution of cooperatives to the economic and cultural development of communities and their potential to resolve social and political issues have been recognized and reaffirmed by no less than the United Nations which called for the annual observance of the International Day of Cooperatives starting in July 1995.

Cooperatives are unique since these are established based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. However, the 21st century brings colossal economic, social, political, environmental challenges prompting economists worldwide to rethink policies and strategies. Likewise, cooperatives must also reinvent themselves, rethink strategies, expand horizons and must be able to have a better appreciation of economic realities.

Cooperatives must look at the global picture while considering the local concerns of their members. To be in step with the swift changes at the global arena, they must adopt technologies, explore new markets and offer high quality goods and services at competitive prices. Lastly, they should foster strong linkages with other similar organizations to facilitate an effective sharing of experiences, best practices and business ideas. Events, such as what you are having right now, must be organized regularly because these exchanges will create opportunities for business enhancement and open markets for your products.

However, the growth of cooperatives is also dependent on a supportive government mechanism and favorable business environment. Government could implement policies that promote a conducive environment for cooperatives to flourish, while big business could impart knowledge and technology. Almost twenty years ago, the Philippine Congress passed Republic Act 6938, otherwise known as the Cooperative Code of the Philippines, to provide strong support to the cooperative movement in the country. To further strengthen the law, Congress introduced amendments thereto and the law is now known as the Philippine Cooperative Code of 2008, or Republic Act No. 9520.

The new law outlines in greater detail the requirements in professionalizing the management and operation of cooperatives, and provides for a monitoring and evaluation tool for the cooperatives to conduct self-assessments of its managerial, financial and social objectives. Among the provisions of the Code is a motivation for members of cooperatives to develop their entrepreneurial capacities. At the same time, certain types of cooperatives have been given impetus for growth considering their special nature and character, such as credit and financial service cooperatives, agrarian reform cooperatives, among others.

Perhaps one of its most important provisions is to free cooperatives from a tax obligation that has not been pursued for years until the new law was enacted. The old provision of the Tax Reform Act of 1997 requires cooperatives to remit 20% withholding tax on the interest paid for an individual member’s savings deposit. Under the new law, however, cooperatives may seek exemption from such requirement or enter into a compromise agreement to enable them to settle any back-taxes or delinquencies incurred prior to the effectivity of RA 9520, thus allowing these cooperatives to pursue their goals, debt-free.

Needless to say, the Philippine government has been relentless in creating an enabling environment for the cooperatives to prosper. I am optimistic that our foreign delegates will learn valuable lessons from the Philippine experience on cooperativism and entrepreneurship.

As a lawmaker and avid supporter of the cooperative movement, I am inspired by the passion and zeal of cooperatives nationwide. Your presence in this event speaks volume about your collective aspirations. I encourage you to continue to adhere to the values of hard work, persistence and determination. I am certain that you will continue to create ripples of change and contribute substantially to nation-building.

More power to the cooperative movement. Again, thank you very much for your invitation. Mabuhay!