GOVERNANCE AND POVERTY ALLEVIATION: THE PANGASINAN EXPERIENCE

Edwin Badu Rawlings GbargayeName of Researcher

Compiled by: Jacqueline L. De LeonActing Chief RIT 2010

CDA Dagupan Extension OfficePhilippines

ACKNOWLEDGEMENT

With profound thanks and gratitude, the researcher acknowledges the assistance of

those who in one way or another contributed to the completion of this study.

DR. ZENAIDA U. SUYAT, Dean Gradute School, Pangasinan State University; for being

the Chairman of his panel whose suggestion and comments greatly improved the study;

DR. JOSEFINA B. BITONIO, her adviser and at the same time the MDM Program

Adviser, Assistant Regional Director of the Cooperative Development Authority for her

unwavering support, sacrifice, patience and understanding and for gladly sharing her valuable

time and expertise in the conduct of this research;

DR. FLORITA G. LOPEZ for her suggestions and recommendations have greatly

improved the study;

DR. RODRIGO JAVIER, for his professional guidance, valuable suggestions have

enriched the study;

DR. LETICIA B. URSUA, his critique reader for the valuable observation, comments

and suggestions, which helped improved the quality and relevance of his study;

DR. FE SORIANO, for taking notes during the defense and for her technical advise

which have contributed to the completion of this study;

DR PAULO CENAS, his statistician, for sharing his expertise in the improvement of the

study

DR. VIRGINIA A. TEODOSIO for her unwavering and unflinching struggle and advocacy

for the cooperative movement in the Philippines and World over.

DR. CAESAR M. MERCADO, Chief Executive Officer, and founder of DCAAP for his

advice and encouragement during the course of the study.

ROGER B.GBARGAYE for his kind words of encouragement accorded the researcher

during the period of this study.

JULIET C. CAROLINO for her assistance in editing and recommending valuable

information to this study, for being kind and her unconditional support.

The Cooperative Development Office of San Carlos City, Alaminos, and Dagupan

City for assisting the researcher in gathering pertinent data needed for his study and all the

cooperative respondents for their warm welcome and reception

Cooperative Development Officers and staff for sharing their valuable time and

sharing their resources available for the gathering of data and information

NCPAG Librarian and staff for giving their assistance, support and help the

researcher access to references

All MDM classmates with special thanks to Art, Maricris, Mely, Mercy and my friends

for their understanding, motivation, encouragement and warm friendship that the researcher will

keep aflame in his heart

His beloved family Peace, RB, Edwin Jr., Rose, Danforth and Edmund whose love

served as an inspiration to move on with my goal, my father and siblings who dream with me

about the realization of my educational objective in the Philippines; Above all, to the Lord

Almighty, for providing him the needed strength, courage, wisdom, determination in pursuing

this study.

Edwin B.R. Gbargaye

DEDICATION

This humble piece of work is dedicated to

all cooperators and practitioners

may your be more strengthened

and benefit from the advancements

of cooperative good governance

practices

ABSTRACT

Title: GOVERNANCE AND POVERTY ALLEVIATION: THE PANGASINAN EXPERIENCE Researcher: Edwin Badu Rawlings Gbargaye

Degree/Specialization: Master in Development Management/Public Management

Adviser: Dr. Josefina B. Bitonio

Institution: Pangasinan State University Graduate School Urdaneta City

Date of Graduation: March 2010

______________________________________________________________________

Cooperative governance has not been a well illuminated topic in the evolving

public discussions on good governance in the Philippines and developing nations. The

emergent framework of governance now provides a new understanding of the current

structures and dynamics in the cooperative sector. While admittedly, there have been

exemplary cases of cooperatives; the great majority are struggling, whose performance

and viability hang in the balance. Those who have excelled may also step into the

pitfalls of leadership changes, which is a volatile feature of the cooperative system.

Overall, Cooperative is an instrument for poverty reduction but it must first of all

ascribe to the tenets of good governance as a mechanism, practice, and medium in

which cooperatives help their members to better themselves. The integration of good

governance into cooperatives intends to improve its service delivery methods.

The study covered the organizational profile of cooperatives, the model of

governance practiced by each of these cooperatives, the level of governance along

accountability, transparency, predictability, and participation It particularly examines

the services provided by cooperatives in the four cities of Pangasinan in alleviating

poverty among its members as well as the problems on cooperative governance.

The data and information were generated using questionnaire, group

discussions, interviews, field visits and observations, official documents, and other

secondary sources. The respondents were officers and members of the fifteen

cooperatives of the four cities in Pangasinan.

Statement of the Problem

Generally, this study posed the question: What framework of good cooperative

governance improves the policy decisions and delivery of services to the membership

and the public as well?

Thus, it seeks to answer the following specific questions:

1. What is the organizational profile of cooperatives in terms of :

a. date registered;

b. articles of cooperation and by-laws;

c. number of employees;

d. membership;

e. assets;

f. deposits;

g. trainings conducted ;

h. services rendered;

i. Linkages; and

j. Core management team?

2. What governance model strengthens confidence in cooperatives as

an instrument to reducing poverty?

a. traditional;

b. corporate;

c. democratic; and

d. eclectic?

3. What is the level of governance being practiced by the cooperative officers in

terms of

a. accountability;

b. transparency;

c. predictability; and

d. participation?

4. What are the services provided by cooperatives in alleviating poverty of the

members in terms of:

a. provision of credit;

b. employment;

c. educational assistance;

d. mutual aid fund;

e. health benefits;

f. Member’s benefit; and

e. community involvement?

5. What are the problems in cooperative governance along the following:

a. accountability;

b. transparency;

c. predictability; and

d. participation?

6. Is there a significant relationship in level of governance practiced and

governance models applied by cooperatives?

7. Is there a relationship of the level of governance practiced and the level of

Governance Model predominantly applied by cooperatives?

8. Is there a significant relationship in the level of governance across their

organizational profile variables?

Fourteen cooperatives (93.33%) were reregistered under RA 9520 and one

cooperative (6.66%) was registered under RA 6938. The 15 cooperatives have 123

employees with 5,948 membership, total assets is P 250,228,180.33, with savings

deposits of P 87,220,422.50, conducted 22 trainings, with services rendered namely:

lending, consumers, trading, service, training and consultancy

There are 11 cooperatives (73.33 %) practicing the democratic model while four

cooperatives (26.67 %) are practicing corporate model. None of the cooperative

respondents is practicing the traditional model of governance.

The level of governance practiced by the Cooperative Officers along the

accountability, transparency, predictability and participation have a weighted means of

4.29, 4.28, 4.03, and 3.75 respectively with a descriptive rating of much for all the

element of governance. The overall weighted mean is 4.08 with a much descriptive

rating.

The services provided by cooperatives in alleviating poverty are (a) provision of

credit, employment, educational assistance, mutual aid fund, health benefits, members’

benefit and community involvement. For the provision of credit, the total of volume of

loan transaction is P 296,014,502.30 with 11,592. total member borrowers (b) on

employment generation, the cooperative has assisted 3,723 self employed members,

assisted 310 members to work abroad and for the hired staff of the cooperative, a total

of 104 were employed by the cooperatives in various capacities, (c) educational

assistance, total beneficiaries of the scholarship program totaled to 36. Amount spent

for the scholarship program has a total of P 277,500.00 (d) Mutual Aid, total amount of

P734,763.50 was given to 77 families (e) Members benefit total Interest on share capital

released by cooperatives P4,253,779.00 and for patronage refund a totals

P1,531,487.00 and (f) for community involvement, the cooperatives have variety of

programs to include environmental concerns, orientation on sanitation, mangrove

planting, tree planting, vegetable, compost, fertilizer subsidy, donation to church,

training sponsored, fingerlings distribution, piglet distribution, donation to flood and

typhoon victims, feeding, donation of medicine, donation of toilet bowl and sport

sponsorship. All in all a total of 28 funded projects on community projects with a

budget of P320,527.00.

The cooperatives manifested problems along accountability, predictability,

transparency and participation with a weighted means of 1.99, 1.62, 1.76 and 1.61

respectively with a descriptive rating of sometimes. The over – all rating is “somewhat”

with a weighted mean of 1.75.

Relationship of Level of Governance and Governance Model. (1) The level of

practice of the governance model was not significantly correlated with the level of

governance in terms of accountability as can be realized on the r values of 0.21, 0.25,  

-0.10 with associated p-values of 0.44, 0.38, and 0.73 respectively.  All these p-values

exceed the alpha level of 5% thus the reason for the insignificant relationship (2) The

linear relationship tested between level of practice of the predominantly practiced model

and the level of accountability of the cooperatives is substantial (3) The relationships of

the level of governance with each of the  cooperatives’ organizational profile variables

such as date of membership, number of employees, number of members, assets,

deposits, and article of cooperation  and by laws resulted to no significant relationships

were observed.

Based on the findings of the study, the following conclusions are arrived at:

1. Majority of the millionaire cooperatives of the four cities in Pangasinan are older

and have re registered under the Philippine Cooperative Code of 2008 or Republic Act

9520. They have regular training program for officers, staff and membership, large

membership base and owning and managing small to large cooperatives in terms of

assets.

2. Democratic model is most predominantly practiced by cooperatives.

3. The elements of governance namely: accountability, transparency, predictability,

participation is “much practiced” and its integration of good governance in cooperative

management intends to improve its delivery of services

4. Cooperatives have contributed significantly to poverty reduction through their

provision of services, and direct investments on community projects and programs.

5. There exist problems in cooperative governance particularly on members’

participation which show low rating on majority of the cooperatives in the four cities.

6. Program design and implementation strategies based on the working framework

of cooperative governance will only be considered successful if the long-term results will

effectively and consistently show the graduation of impoverished beneficiaries out of the

poverty bracket.

On the basis of the foregoing findings and conclusions, the following

recommendations are forwarded:

1. All officers should undergo training on good governance before they assume

their positions.

2. On the governance problems, there is an ardent need to establish reforms in

weak areas of cooperative governance along accountability, transparency, predictability

and participation

3. Members should elect officers with strong leadership as cooperative success

largely depends on good leadership of its officers.

4. The adoption and application of the cooperative governance by all cooperatives is

indeed an effective means for poverty alleviation.

5. Good governance must be intervening in all the aspects of cooperatives in order

to achieve confidence and trust. Cooperatives must ascribe to the tenets of good

governance as a mechanism, practice, and media in which they help improve their

cooperative’s performance and stability.