Why Do Coops Fail?

You ask a most relevant question:

Why did/do cooperatives fail?

But you prefaced it with the phrase: "With all the members' trust, participation and continuous CBU...why..." You were hinting at something missing.

Here is what CDA says in its website about causes of failure.

"Causes of the failure of early cooperatives in the Philippines. Filipino economists and students of cooperatives in this country have often attributed the failure of cooperative societies in this country to the following causes:

Incompetent management Lack of proper understanding of the principles, practices true aims, and purposes of cooperative associationsImproper use of credits by the borrowers who, instead of using money borrowed for production, spent it for fiestas or luxuries.Defective securities.Political interference particularly in the collection of overdue accountsLack of compensation of officersInadequate character and moral responsibility in handling the other fellow¢s moneyLack of adequate safeguard against unscrupulous officers who took advantage of their position to grant loans to themselves and their compadres which later proved disastrous to the system.The dominance of the individualistic attitude instead of the spirit of cooperation among the people.Inability of cooperatives to secure adequate capitalTheir dependence on alien suppliers and distributorsIneffectiveness of the government and promotion of cooperative organizationsInadequate marketing facilities"

Add to this a cryptic comment of Fr. Mar Arenas: "structural weakness."

Now the leaders know all these and more...so the nest question is: What next?" Which causes of failure do you want to focus on?

You guys have to do the work.

At 68 years old, at best, I am a kantiyawero and asker of impertinent questions. Enjoyable but frustrating too.

It is not so much the causes of failure, but what is the movement doing about it? Solidarity, greater understanding focus on a few problems?

I believe that you will see much greater progress in the cooperative sector in the next decades. In agricultural production like livestock and dairy, in food processing, in retailing, in small scale production using better tools. The examples of supersize credit coops like FICCO, Cebu CFI, NOVADECI, etc, will probably be replicated. Cooperative banks will probably have to rethink their systems in the light of MetroSouth Coop Bank with soon to be a billionaire coop. And what do the Unions have to say about all this? Continue fighting specific points of law?

Development is not nit-picking points of law or causes of failure.

Development is about growth and taking hold of economic power. No need to flogging the causes of failure.

Best to have articulate leaders who will get others to join and concentrate on creating success and overcoming obstacles. So where are these leaders? Doers and leaders not nitpicking lawyers and regulators

NAMVESCCO for example was built by leaders and doers.Who is building the federations?

Source: KoopForum