CDA vision for 2020

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CDA Vision for 2020

Executive Summary

The CDA Vision 2020 is proposed as the CDA medium-term plan for the period 2015 to 2020.  It is crafted based on the 1987 Constitution provisions, CDA Charter, Cooperative Code of 2008, Philippine Development Plan 2011-2016, ASEAN Economic Integration and the status of co-operative development in the Philippines.

The Plan seeks to have an efficient and effective delivery of government programs and initiatives to co-operatives, upscale the status and performance of micro and small co-operatives, and ensure that all co-operatives are complying with the existing laws, rules and regulations on co-operatives.

The formulation of the Plan was initiated upon the assumption of Administrator Eulogio T. Castillo as Officer-In-Charge of CDA on August 16, 2014.  The framework was presented in a seminar in CDA Central Office on August 18, 2014. The draft plan was presented in the CDA Performance Assessment and Planning Conference (CPAPC) held on October 2-3, 2014 at Brentwood Hotel, Quezon City.  It was attended by the members of the Board of Administrators, Regional Directors, Assistant Directors and members of the Execom.  The revised draft plan was unveiled in 12^th National Co-operative Summit in Waterfront Hotel, Lahug, Cebu City on October 17, 2014.

The Plan embraces a balance approach in the execution of the CDA’s twin functions of development and regulation of co-operatives.  The strategies and approaches in the implementation of the plan necessitates the re-structuring the CDA administrative machinery to effect a meaningful implementation of all initiatives under the CDA Vision 2020. 

Under proposed structure of the CDA, a new department, the General Administrative and Support Department (GASD) shall be instituted in addition to the existing Institutional Development Department (IDD) and Legal and Registration Department (LRD). The LRD, however, shall be strengthened by converting it to Registration and Regulation Department to give emphasis to the regulatory function of the CDA.  A Legal Affairs Office, as staff office of the Board of Administrators (BOA), shall be created, to handle the assets recovery initiatives of CDA, resolution of conflicts among co-operatives and other legal issues on co-operatives.  Likewise, the Public Affairs Office, as staff office of the BOA, shall be created to handle the promotional and public relation activities on co-operatives of the CDA.

The CDA envisions that by 2020, 50% of micro-co-operatives shall have graduated to small category (2013 as baseline) and 50% of small co-operatives shall have elevated to medium category.

The strategy to develop the micro and small co-operatives is two-pronged: First, there should be a rationalized regulatory environment on reportorial requirements by simplifying the tools and instruments for micro co-operatives during their infancy and development stages.  Second, there should be a coordinative system of infusion of assistance, financial, technical or otherwise to avoid the duplication of developmental interventions by the relevant partner government agencies catering to the same group of co-operative beneficiaries.

It is further envisioned that by 2020, all co-operatives shall have been inspected (100%) and are compliant with the laws, rules and regulations on co-operatives. All efforts shall be exerted, in the regulation of co-operatives so that the interests of the members are protected, and the privileges and incentives granted under the laws on cooperatives are not abused.

In support of the plan, a National Co-operative Data and Information Repository (NCDIR) shall be established to have an efficient system of data/information gathering, storage, retrieval, processing and dissemination.

The co-operative education system as important support component of the Plan shall be strengthened. By 2020, CDA envisions that the ground work for the establishment of Cooperative College shall have been prepared. 

The rationalization of the Co-operative Audit System shall be introduced.  The micro co-operatives whose assets are below P500 Thousand may be exempt from the submission of the audited financial statements, performance, and social audit reports for five years from the date of registration.  By the end of 2020, the Integrated Co-operative Audit System shall already be established.

The system of consultation of co-operatives shall be enhanced, to have sound national policy guidance on co-operative development.  Likewise, the mechanism to coordinate various national and local government agencies with programs on co-operatives shall be strengthened.  The participation of CDA in the international conferences shall be vigorously pursued.

Having presented the Philippine co-operatives’ existing situation, prospects, challenges and the proposed measures to strike the appropriate balance between regulations and development, the CDA proposes that the funds originally intended for lending (e.g., CDLF, CDRLF, SLF, CMP, QUEDANCOR Fund, etc.) which were recently remitted to the national treasury amounting to P93.5 million shall be appropriated back to CDA to effectively perform its development and regulatory functions.

Likewise, the initial funding requirements for 2015 amounting to P22.4 million to finance the Information System Strategic Plan (ISSP) have been proposed. The envisioned National Co-operative Data and Information Repository (NCDIR) is anchored on the development of IT Architecture (IA) to come up with the data warehouse that will serve as source of timely, relevant and accurate information to aid the planners and decision-makers in the discharge of their responsibilities.   

By the end of 2020, we expect that the private/co-operative sectors are adequately guided by government policies and programs on co-operatives. There shall be cohesion of government initiatives in providing services to client-co-operatives. Ultimately, the CDA harmonizes the private sector initiatives and government policies and programs on co-operatives in the pursuit of social justice and economic development objectives as provided for in the 1987 Philippine Constitution.