contributing to sdgs -...
TRANSCRIPT
3rd Quarter Issue 2017
CONTRIBUTING TO SDGs
So declared the United Nations General Assembly on Sep-
tember 25, 2015, in formally adopting the Social Develop-
ment Goals (SDG) as embodied in the outcome document,
“Transforming our world: the 2030 Agenda for Sustaina-
ble Development.” The SDGs embody humanity’s bold vi-
sion to put people and planet on a sustainable path by 2030.
“As we embark on this great collective journey, we pledge
that no one will be left behind,” the declaration further said.
The SDGs with 17 Goals and 169 targets came into effect on
1 January 2016.
The International Cooperative Alliance, the global body rep-
resenting all cooperatives around the world, has committed
the coop movement’s full support to the SDGs. It launched
Co-ops for 20/30, “a campaign for cooperatives to learn
more about SDGs, commit to pledges to contribute to
achieving the SDGs and report their progress.” It has identi-
fied targets within the 17 Goals as most relevant to coopera-
tives. The identified targets are grouped into three main ac-
tion areas – namely: eradicating poverty, improving access
to basic goods and services, and protecting the environ-
ment.
Coops in Mindanao and the SDGs
The UN’s pledge that no one will be left behind resonates
perfectly with the new vision adopted by the cooperative
movement in Mindanao – “all members enjoy better quali-
ty of life.” If MASS SPECC and its affiliate cooperatives pur-
sue this vision and achieve it, they will have contributed to
the attainment of the SDGs.
On the first action point on eradicating poverty (SDG 1, 2 &
10), cooperatives can certainly do a lot. The 2015 Poverty
Statistics for Basic Sectors report by the Philippine Statistics
Authority (PSA) established that farmers, fishermen and
children were the poorest sectors of the population in the
Philippines. Poverty incidence in the country in 2015 was
placed at 21.6% on the average. Poverty incidence among
farmers was the highest at 34.3%, followed by fishermen at
34%, and children at 31.4%. Other basic sectors with poverty
incidence above the national average were the self-
employed, unpaid family workers, and women.
Cooperatives count among their membership these basic
sectors. We still do not have accurate data on the proportion
of these sectors to total membership, but it is safe to say
that they make up a significant number, particularly for
open-type cooperatives and those located in rural areas. By
giving special attention to this segment of their member-
ship, cooperatives can contribute concretely to the SDGs.
Giving special attention means, firstly, putting in place an
information system that can establish the real-life situation
of these sectors and track the improvement in their lives.
This system should capture such basic information as the
demographics of their household, including education of
their children, total household income, the nature and
continued on page 2
We resolve to build a better future for all people, including the millions who have been denied the chance to lead decent,
dignified and rewarding lives and to achieve their full human potential. We can be the first generation to succeed in
ending poverty; just as we may be the last to have a chance of saving the planet. The world will be a better place in
2030 if we succeed in our objectives.
Farmers and fishermen are among the poorest of the poor. They are
also members of many cooperatives.
2
sources of this income, their specific needs, etc. It also
means providing support systems (policies, processes, pro-
grams, products and services) that cater to their specific
needs and requirements. By tracking what is actually hap-
pening with these members on a regular basis, the cooper-
ative can establish whether these support systems are
effective or are contributing to “better quality of life” of
these members.
Some concrete ideas in terms of support systems were al-
ready put forward last year, 2016, during the annual gath-
ering of chairpersons and managers of cooperatives affiliat-
ed to MASS SPECC. For SDG Goal 1 (no poverty), Goal 2
(zero hunger) and Goal 10 (reduced inequalities), the fol-
lowing programs and services were suggested (please see
complete list in the accompanying table):
Provide financial assistance, equipment, and marketing
assistance to farmers and fisherfolks
Introduce and encourage the adoption of technology
among farmers and fisherfolks
Institutionalize poverty reduction programs and services
Provide livelihood programs with training activities
Promote social enterprises to communities to create more
jobs for the people
Conduct training on proper farming and management of
small-scale business
On the second action point on improving access to basic
goods and services, concrete suggestions were also made
towards the achievement of SDG Goal 4 (quality educa-
tion), Goal 5 (gender equality), Goal 6 (clean water and san-
itation), Goal 7 (affordable and clean energy), and Goal 8
(decent work and economic growth).
On the third action point on protecting the environment,
individual cooperatives are already undertaking programs
and activities to this end. More initiatives for cooperatives
to undertake were suggested towards the achievement of
Goal 11 (sustainable cities and communities), Goal 12
(responsible consumption and production), Goal 13
(climate action), Goal 14 (sustainable life below water), and
Goal 15 (sustainable life on land).
Individual and Collective Actions
Indeed, cooperatives can be said to be doing some of these
initiatives already on their own. Without doubt, they will do
more as they become more aware of the importance of the
SDGs. But individual actions may not be enough, given the
scale and urgency of the problem.
Much more can be done and greater results can be
achieved if cooperatives combine resources and work to-
gether in addressing the problem. A case in point is finding
a more effective way of helping farmer members out of
poverty. Right now rice farmers get only a third or even less
of the final value of their produce when this reaches the
table of consumers. This is because of the existing market
structure that is dominated by traders. To earn more in-
come, farmers need more than production credit; they
need non-financial services such as farm inputs, post-
harvest facilities, transport, market information and link-
age, technology, even infrastructure support. One cooper-
ative can only do so much in providing these additional ser-
vices but by combining resources or working together with
other cooperatives much more can be achieved.
The same can be said on the second action point on im-
proving access to basic goods and services. One unique ad-
vantage of cooperatives is that they have within their
membership both producers and consumers. Cooperatives
combined have an internal market that can support big
investments in services and infrastructure that can benefit
both the producers and consumers – investments that can
best be undertaken by cooperatives together. And so with
the third action point on protecting the environment. Com-
bined actions by cooperatives here can produce greater
results and impact.
If so, the 6th principle of Cooperation Among Cooperatives
will have real meaning and value. RMV
INITIATIVES BY COOPERATIVES TOWARDS ACHIEVING SDG
GOAL 1: NO POVERTY
Provide financial assistance, equipment, and marketing assistance
to farmers and fisher folks
Introduce and encourage the adoption of technology among farmers
and fisher folks
Institutionalize poverty reduction programs and services
Provide livelihood programs with training activities
Provide greater access to capital
Create more jobs and provide subsidies to farmers
Promote organic farming as a profitable activity
Lessen agricultural to industrial land conversion
Upgrade farming technology
Promote alternative learning programs
GOAL 2: ZERO HUNGER
Strengthen the business enterprise of the cooperative to provide
enough money for members
Promote social enterprises to communities to create more jobs for
the people
Educate and empower the population by promoting technical cours-
es that they may use immediately (e.g. K-12 technical-vocational
track; TESDA courses (technical skills)
GOAL 10: REDUCED INEQUALITIES
Provide equal opportunities to all members to avail of livelihood
programs, agricultural and production financing
Conduct training on proper farming and management of small-scale
business
3
During the second round of Ownership Meetings in Octo-
ber 2016, MASS SPECC conducted a survey of coop officers
representing cooperatives from all the regions of Minda-
nao. The purpose of the survey was to establish a clearer
profile of the coop leaders who are at the forefront of co-
operative development in this part of the country.
Board members and managers attended this bi-annual
gathering of cooperatives affiliated to MASS SPECC. A to-
tal of one hundred seventy-eight (178) board members par-
ticipated in the survey, the results of which may well paint
a general picture of who our board members are.
In this issue of the Coop Monitor, we start with the profile
of the board of directors, divided into two parts. The se-
cond part will be published in the next issue.
KNOW YOUR BOARD OF DIRECTORS
GENDER
According to the survey results, the
leadership of cooperatives is still
largely in the hands of male members
of the board. Male members currently
make up 61% of total board member-
ship in all the regions while female
members make up 39%. No compara-
ble data can be obtained from the
previous years, so it cannot be said
whether the proportion of women in
the board has been increasing or de-
creasing over the years.
By region, cooperatives in the Zam-
boanga, Basilan, Sulu and Tawi-tawi
area appear to be an exception because
female members dominate the board
at 80%. This result may be due to the
fact that most of the respondents from
this region came from Zamboanga
City where women constitute the ma-
jority of members in their respective
cooperatives. Otherwise, majority of
the board members are male in every
region. In region 10, in particular, the
proportion is even more skewed to-
wards male members at 71%.
AGE
The age profile of the board across the
regions confirms what has been known all along – that ma-
jority of board members of cooperatives belong to the old-
er generation. Over 58% of the board are aged 54 years
and above, with more than a third of them (36%) over 61
years. Cooperatives in region 9 stand out as dominated by
older leaders at over 72% of the total, more than 47% of
whom are aged 61 years and above. Only in Caraga region
does it appear that majority (55%) of the board are middle-
aged (between 40 and 53 years old), followed by region 12
with 46% belonging to the middle-aged group.
No less significant perhaps is the data indicating that only a little over 2% of board members are aged 32 years and be-low. In fact, in all regions, except region 11 and 12, there’s hardly anyone belonging to the younger sector of the pop-ulation.
continued on page 4
Gender Profile of Board
Age Profile of Board
4
In terms of civil status, eighty-three
percent (83%) of the board are
married while 5% are single. On
the other hand, 12% are wid-
owed.
EDUCATIONAL BACKGROUND
A full third (33%) of board mem-
bers have either finished or are
finishing post graduate studies
across all the regions. Combined
with college graduates (44%),
they make up over two-thirds of
the board, indicating the prefer-
ence by coop members in electing
to office people with higher edu-
cational qualification.
Region 10 has the highest percent-
age of board members with post-
graduate education (45%), fol-
lowed by region 11 (40%), region
9 (35%) and Zambasulta region
(33%).
Caraga region has the highest
number of college graduates in
the board at 64%, followed by
region 12 (56%) and region 9
(45%). Board members with high
school and college level educa-
tion still constitute a significant
number at 24% of the total, indi-
cating that coop members look
beyond educational qualification
when deciding who to elect to the
board. Zambasulta region has the
highest number of board mem-
bers with high school and college
level education at over 33%, followed by region 11 at over
30%, and region 10 at 25%.
PROFESSION/OCCUPATION
There is a good mix of board members who are employed in
either private or government service, those who are either
self-employed or in business, and those who have already
retired from active work. Across all regions, there are more
employed (42%) than self-employed or are in engaged in
business (32%). Retirees also make up a good proportion of
board members at 26% of the total.
Those employed make up the greater majority of board
members in region 10 at 82% while in Caraga they consti-
tute over 56% of the total. Half of board members (50%) are
in business or self-employed in region 11 where retiree
board members are also of significant number (34%). Re-
gion 9 has the most number of retirees serving in the board
at 38% compared to other regions.
continued on page 5
Occupation Profile of Board
Education Profile of Board
5
COMPUTER
LITERACY
Majority of board
members are com-
puter literate and
use the internet in
private or in their
work. They make
up 66% of the to-
tal. A significant
number (34%) of
them, however,
neither use the
computer nor
browse the internet. The highest proportion of non-users
are in region 12 (45%), followed by region 9 (36%), Zam-
basulta (33%), and region 11 (32%).
COOP INVOLVEMENT
Finally, let’s look at the number of years board members
have been serving as officers in their respective coopera-
tives. Overall, there is greater tendency for coop officers to
stay long in service once they get elected to the board and
elected or appointed to any of the committees. The data
show that 65% of board members in all regions have
served as officers in their cooperative for more than 3
terms (6 years and above). Over 39% of them have served
for 11 years and above while 19% have served for 16 years
and above.
A good question to ponder then is: how open are coopera-
tives to newcomer board or committee members, especial-
ly the younger generation of coop leaders? RMV
Adaptation to Technology
COOPERATIVES ARE SIGNIFICANT ACTORS IN NATIONAL ECONOMIES
In Demark, consumers cooperatives hold 36.4% of consumer retail market (2007).
In New Zealand, cooperatives are responsible for 95% of the dairy market and 95% of export
dairy market.
In Uruguay, cooperatives are responsible for 90% of milk production, 30% of wheat.
6
MORE FILIPINOS PREFER
CASHLESS PAYMENT
Only nine percent (9%) of Filipinos used electronic
payments for personal expenses (known as personal
consumption expenditure) in 2016. This compares
to 54% of Singaporeans and 30% of Malaysians,
according to Visa’s Consumer Payment Attitude
Survey of 6 markets in Southeast Asia. Other countries in-
cluded in the survey were Indonesia, Thailand and Vietnam.
The same survey, however, revealed that there was a 43%
drop in Filipinos who preferred cash in 2016. Over half of Fili-
pinos who have tried electronic payment prefer it to using
cash. In 6 countries surveyed, Filipinos were the most inter-
ested in contactless payment at 74%, and used them for gro-
ceries (58%), bills and fines (32%), and food and beverages
(26%).
Five hundred randomly sampled people between the ages of
18 and 55 participated in the survey in the Philippines. Seven-
ty-one percent (71%) of them shopped online using personal
computers at least once a month, while 50% used their
smartphone to shop at least once a month in 2016.
The regional average was 80% for shopping online on com-
puters and 71% via smartphone.
Growth in electronic commerce was at 30%, higher than in
previous years. Personal computers remained the preferred
device when shopping online.
ACCESS TO FORMAL BANKING SERVICES STILL
LIMITED IN PROVINCES
Access to banks and their financial services in 75 provinces in
the country have remained illusive in the period between
2015 and 2017, according to the Inclusive Digital Finance Re-
port released recently by FINTQ, a subsidiary of PLDT Inc.
Thus, many provinces have remained unbanked.
In access to loans, for instance, the report noted that borrow-
ers from Metro Manila took an average share of 86.7% of to-
tal domestic loans between 2001 and 2017. The rest of the
loan pie was distributed among borrowers from the less de-
veloped provinces. The report also noted that 97% of total
domestic loan volume in 2017 was accounted for by
23 more developed provinces.
FINTQ has an online loan marketplace called Lendr,
which continues to draw users from third to fifth-
class municipalities. It said that seven out of ten us-
ers of Lendr come from outside Metro Manila, indi-
cating that Filipinos in the provinces are turning to
digital channels for loans in the absence of bank branches in
these areas.
FINTQ recently launched the KasamaKa platform, a digital
referral system that invites more Filipinos to tap digital
banking rather than resort to informal and black-market
transactions.
Meanwhile, the
Bangko Sentral ng
Pilipinas has wel-
comed the influx of
electronic financial
products because these new products help broaden financial
inclusion in the country.
In a recent speech before the Bankers Institute of the Philip-
pines, BSP Governor Nestor A. Espenilla said the central
bank is bent on allowing new financial products, particularly
those that make use of digital channels, in order to help
more Filipinos gain access to formal banking services. He
said banks and similar firms have to keep pace with emerg-
ing financial technology because of rising competition. At
the same time, the new BSP Governor said, the central bank
is currently drafting enhanced rules on information technol-
ogy in order to tighten rules to guard against cyber threats.
MICROFINANCE LOANS BY BANKS INCREASING
The Philippine banking system continues to increase its ex-
posure in microfinance loans, granting a total of 13.226 bil-
lion pesos in the quarter ending March 2017. This represents
a 23.1% increase over the same period last year.
continued on page 7
More Filipinos now prefer to use
electronic payments rather than
cash, according to the latest
survey on consumer payment
attitude.
7
The number of microfinance borrowers increased during
the period from 1.448 million to 1.686 million borrowers.
Meanwhile, micro-deposits also increased from 5.783 billion
pesos to 7.67 billion pesos.
These figures show that Philippine banks have responded
to the prodding by the Bangko Sentral ng Pilipinas for them
to reach out to unbanked areas of the country and make
the financial system more inclusive. The BSP has been re-
laxing the banking rules for this purpose.
Banks have used microfinance as a platform for the poor
and low-income households to have access to formal credit.
Through their micro-banking offices, banks are able to pro-
vide them not only small loans but also facilities for easy
savings, micro-insurance products, and bills payment.
BUT BANKS NEED TO GIVE MORE LOANS TO SMEs
– BSP GOVERNOR
BSP Governor Nestor Espenilla,
Jr. urged the banks to extend
more loans to “credit-starved”
small entrepreneurs. In a speech
before credit managers recently,
the new governor of the central
bank noted that banks still prefer
to give loans to large corpora-
tions, even if they earn relatively lower interest rates from
these loans. This has created a situation where many small
businesses are shut out of the formal banking system. They
are forced to go to informal sources of credit and pay high-
er interest rates.
Governor Espenilla reminded banks that the MSME sector
accounts for 99.5% of the country’s total number of estab-
lishments and employ 61.6% of the workforce. This sector
also includes 60% of the country’s exporters. Small busi-
nesses are, therefore, important pillars of growth of the
local economy.
Meanwhile, banks continue to fall short of meeting the
quota set by law for lending to agriculture and agrarian re-
form beneficiaries. Under the Agri-Agra Reform Credit Act
signed in 2010, banks are required to allocate at least 10%
of their loanable funds to agrarian reform beneficiaries and
15% to farmers and fisherfolk.
Universal, commercial and thrift banks just lent half of the
P906.5 billion required by law to the farming sector in the
first quarter of 2017. To meet the requirements, they have
opted to avail of alternative methods allowed by law. This
includes investing in special deposit accounts of BSP-
accredited rural lenders, wholesale lending to rural banks,
and loans for public infrastructure that benefit the farming
sector.
Rural and cooperative banks, on the other hand, have sub-
stantially complied and meet the requirements of the law.
RBs and CRBs allotted 16.57% of their loanable funds to
agrarian reform beneficiaries and 29.7% to the farming sec-
tor during the same period.
BSP Governor Nestor
Espenilla, Jr.
8
CARAGA DEVT PLANS CALL FOR
SHIFT AWAY FROM MINING
Existing mines in Caraga will not be al-
lowed to expand, mined-out areas will
be rehabilitated, alternatives to mining
will be explored, and the region’s econo-
my will be diversified away from mining.
This is what the government plans to undertake in the
Caraga region according to its 2017-2022 Regional Devel-
opment Plan (RDP).
Caraga hosts 25 large-scale mining firms, the largest num-
ber of operating mines in any region. While they account
for 90% of regional exports and employ 28,000 skilled
workers, these mines have also caused massive destruc-
tion of the environment in the region.
These mines will still be allowed to operate but only within
their existing areas except watersheds. Rehabilitation of
mined-out areas will be strictly implemented, according to
the government.
Among the areas for diversification are fisheries, agro-
forestry, and eco-tourism. The aim, according to NEDA, is
to “develop more economic drivers that create a balance of
production and environmental protection.”
According to the Philippine Institute of Development Stud-
ies (PIDS) in its recent study, the Caraga region and the
Zamboanga Peninsula have the highest proportion of vul-
nerable households in the region.
The RDP aims to lower poverty incidence in the region
from 30.8% in 2015 to 20.3% in 2022. It also expects em-
ployment to rise to 95.3% from 94.5% currently.
NATIONAL BROADBAND PLAN LAUNCHED
The national government launched in June this year its na-
tional broadband plan, which aims to make access to the
internet free and available to all areas in the country. With
this infrastructure, the national government portal
(www.gov.ph) will become the one-stop shop for all gov-
ernment services.
The newly-created Department of Information and Com-
munications Technology (DICT) is spearheading this devel-
opment thrust. The DICT plans to provide free Wi-Fi access
to 100,000 public places nationwide by 2026, which will
include municipalities outside Metro Manila, as part of its
“Pipol Konek” project. A total of 1,435 municipalities now
have internet connectivity, with hot spots in public parks,
schools, hospitals and town halls.
The national government portal, on the other hand, will
have a common platform where databases are interopera-
ble and enable data sharing among government agencies.
It will become an access point for government data to all
citizens, including access to forms and applications. This
means Filipinos can have their business permits, driver’s li-
censes, passports and other government requirements pro-
cessed in one website.
When completed and fully operational, the portal will make
government services transparent and efficient.
For further inquiries, please contact:
INSTITUTE OF CO-OPERATIVE STUDIES (ICS) MASS-SPECC Davao, Dinavill Road, Anahaw Village, MASS-SPECC Cooperative Development Center, Tiano-Yacapin Sts., Ma-a, Davao City Cagayan de Oro City Telefax: (082) 244-1096 Telefax: (088) 856-5753 (ICS line) or (088) 856-2339 loc 16 Website: mass-specc.coop Email: [email protected]
The government wants to rehabilitate mined-out areas in the Caraga region,
which hosts the largest number of large-scale mining firms in the country.
Infographics by Business World