HISTORY OF THE COOPERATIVE

During ancient times proofs of human groupings were discovered in caves, valleys,
rivers, lakes and seas.
During medieval times agricultural production stimulated the creation of markets,
surplus products and raw materials were sold and this economic stage people no longer
produced only what could consume, they had to produce more to acquire more money
from their own needs and comforts, thus trade and commerce developed and prospered
as early as 300BC be the Greeks had formed associations known as Ironoy, which were
organized in toy tonic Europe between the 17 th and 15th centuries. Merchant guilds
arising from the need to protect their social and economic gains conducted business
over long distances by the12th century. They performed all the operations in
merchandising goods, transporting and retailing by the 12 th century. All types of guild
start splitting off and formed organizations.
The Industrial revolution started in the18th century in England. It changed the social and
economic life of the people. The Introduction of machines in factories caused misfortunes to
many people who had depended mainly on weaving for their livelihood. The traditional
industries were rendered unprofitable by other factories that utilized better machines and
technology.
The Cooperative movement began in Britain in the 19th century. In response to the industrial
revolution and economic transformations that were threatening the livelihoods of many workers.
There were earlier efforts by workers to form cooperatives. The Shore porter’s society claims to
be one of the world’s first cooperatives being established in Aberdeen Scotland in 1498. The
Fenwick Weaver’s Society in 1761, foster high standards in the weaving craft but activities later
expanded to conclude collecting purchasing of bulk food items and books in 1769 members
formed a consumer cooperative and manhandled a sack of oatmeal into John Walker’s white-
washed front room and began selling the contents at a discount.
In the decades that followed more Scottish cooperatives formed including Lennox Town-friendly
Victualling Society, founded in 1812. The focus of the Lennox Town group was operation of the
busy Linux Mill.
Cooperative banks or Credit Unions were invented in Germany in the mid. 19th century. By 1830
several hundred cooperatives had been formed. Some were initially successful, but most had
failed by 1840. It was not until 1844 when a cooperative society established the Rochdale
principles on which they ran their co-op that the basis for the development and growth of the
modern cooperative.
In 1844 a group of 28 artisans working in the cotton mills in the town of Rochdale, in the North
of England, established the first modern cooperative business the Rochdale Equitable Pioneers
Society. Initially, there were only 4 items for sale. These are flour, oatmeal, sugar, and butter.
On December 21, 1844 they opened their store for only two nights a week. Within 3 months they
expanded their selection to include tea and tobacco and business had grown so much that it
was open five days a week.
Rochdale Principles defining cooperative organizations were Democratic control, one member
one vote; Open membership; Limited interest on capital; Distribution of surplus in proportion to a
member’s contribution to the society; Cash trading only, no use of credit; Providing for the
education of members in cooperative principles; Political and religious neutrality. These have
evolved somewhat over time and the International Co-operative Alliance (ICA), the official
governing body of cooperatives now consider the 4 of the Rochdale principles central to the
governance of member organizations with the last three deemed important but not vital.
Robert Owen (1771-1858)
-the first cooperative theorist and credited with inspiring the Rochdale Pioneers
-began the cooperative movement at Rochdale Lancashire (1844)
-believed in putting his workers in a good environment with access to education for themselves
and their children.

Dr. William King (1786-1865)

Charles Fourier
-also mentioned as an important influence.
-the pioneers established the first consumer cooperative, leading to a worldwide movement.
-they also experimented with a producer cooperative, which soon failed.

Beatrice Webb
-the author of the Co-operative Movement in Great Britain (1891)

The Rochdale pioneers as they became known set out the Rochdale principles in 1844 which
have been highly influential throughout the cooperative movement in modern form cooperatives
date from 1844 then a group of 28 impoverished weavers of Rochdale England founded a
mutual aid society called the Rochdale society of equitable pioneers. The successful example of
cooperative business provided by the Rochdale Society, established between 1850 and 1855
where a flower mill, a shoe factory, and textile plant was quickly emulated throughout the
country.
World Cooperative Movement worldwide some 800 million people are member of cooperatives
and it is estimated that cooperatives employ some 100 million people notable among the
European countries in which consumer cooperation received early popular support were
France, Germany, Belgium, Austria, Italy, Denmark, Finland, Norway, and Sweden.
Credit Union are also established in United Kingdom. The largest are work-based, but many are
now offering services in the community.
The Association of British Credit Unions Ltd (ABCUL) represents the majority of British Credit
Unions. British Building Society developed into general-purpose savings and banking
institutions with “one member, one vote”.
COOPERATIVES IN THE PHILIPPINES
Filipinos who have traveled Europe in 19th century have been impressed with the success of a
new economic movement, bringing about a gradual transformation in the economic and social
life of the people. Filipinos in increasing number, travelled and studied abroad and brought
home with them new ideas. Two names were have been known after Dr. Jose P. Rizal and
Teodoro Sandiko. In Dapitan Jose Rizal put up a school for the poor community and store with
the help of his pupils on a purely cooperative basis. One noteworthy group was organized was
the La Sociedad de los Abacaleros (Society of Abaca Producers). This functioned for only one
year. Rizal returned the members’ share capital without any loss.
Teodoro Sandiko traveled to Europe and had a close contact with the cooperative movement in
Germany where he came across with the Raiffeisen movement. He was impressed by this type
of cooperative that he looked forward for an opportunity to introduce it in the Philippines.
The administration of the Rural Credit Law was entrusted to the Bureau of Agriculture. The 1st
rural credit association that was organized under this law was the Agricultural Credit
Cooperative Association of Cabanatuan, Nueva Ecija on Oct.18, 1916.
On 1926, about 544 rural credit cooperatives organized in 42 provinces. And by 1930 there
were 571 associations formed all over thee country. However, in 1935, 90% of these
cooperatives were inactive with no funds left in their treasury . the cooperative marketing law
act was enacted and approved on Dec. 9, 1927. By 1939 only 164 societies were actually
organized with a total membership of around 5,000 farmers with this number only 35 reported
their sale products to the Bureau of Commerce. The number of associations reporting indicated
that only 20% of the organized associations were active. In recognition of the strategic position
occupied by our farmers in the social structure and economic development of the country the
Philippine Congress enacted Republic Act 821 in 1952. This law established a system of liberal
credit which is specially designed to meet the needs of the small farmers. It also created an
administrative agency known as the Agricultural Credit and Cooperative Financing
Administration (ACCFA).