Cid L. Terosa, Ph.D. School of Economics University of Asia and the Pacific THE CONTRIBUTION OF COOPERATIVES TO THE NATIONAL ECONOMY: THE CASE OF MASS-SPECC.

Cid L. Terosa, Ph.D. School of Economics University of Asia and the Pacific THE CONTRIBUTION OF COOPERATIVES TO THE NATIONAL ECONOMY: THE CASE OF MASS-SPECC MEMBER-COOPERATIVES

“Cooperativism is the affirmation of faith in human beings, in work, in integrity, in human coexistence, all of which are facing constant and progressive improvement.” -Don Jose Maria Arizmendiarrieta

“Cooperatives are a unique and invaluable presence in today’s world. They help to reduce poverty and generate jobs.” Ban Ki-Moon “I believe cooperation is not just an alternative model of business; it is a better model of business.” Dame Pauline Green

OUTLINE Facts and Figures about Cooperatives in the Philippines Facts and Figures about Cooperatives in Mindanao Measurement of the Contribution of Cooperatives to the National Economy Other Contributions of Cooperatives to the National Economy

FACTS AND FIGURES : COOPERATIVES IN THE PHILIPPINES

Total Number of Cooperatives in the Philippines = 23,672 (as of Dec. 31, 2013) Luzon = 11,457 (48.4%) Visayas = 3,812 (16.1%) Central Office = 85 (0.4%) Mindanao = 8,318 (35.1%)

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES TOP TEN REGIONSTOTAL NUMBER OF REGISTERED COOPERATIVES (as of December 31, 2013) SHARE 1. CALABARZON & MIMAROPA2,74411.6% 2. NATIONAL CAPITAL REGION2,39910.1% 3. CENTRAL LUZON2,2859.6% 4. DAVAO REGION1,8337.7% 5. ARMM1,7477.4% 6. CENTRAL VISAYAS1,6466.9% 7. NORTHERN MINDANAO1,6056.8% 8. WESTERN VISAYAS1,4426.1% 9. ILOCOS REGION1,3955.9% 10. SOCCSKSARGEN1,1594.9% Source of basic data: Cooperative Development Authority

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES TYPE OF COOPERATIVETOTAL NUMBERSHARE 1. MULTI-PURPOSE (MPC)14,72262.2% 2. CREDIT2,95912.5% 3. PRODUCER1,6246.9% 4. SERVICE1,3165.6% 5. CONSUMER1,2665.3% 6. MARKETING1,1784.9% 7. FEDERATION-SECONDARY2041.7% 8. OTHER TYPES4030.9% TOTAL23,672100% Source of basic data: Cooperative Development Authority

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES NUMBER OF COOPERATIVES, BY TYPE AND ISLAND GROUP TYPELUZONVISAYASMINDANAOPHILIPPINES 1.MPC6,9012,7915,02814,722 2. CREDIT1,7904327372,959 3. PRODUCER6041069131,624 4. SERVICE7341613971,316 5. CONSUMER7011494161,266 6. MARKETING4211066511,178 7. FEDERATION1063860204 8. OTHER TYPES20229116403 TOTAL11,4573,8128,21823,672 Source of basic data: Cooperative Development Authority Note: Table is analyzed row-wise. Figures with orange fill indicate the location of the biggest number of cooperatives for the particular type of cooperative.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES CATEGORY OF COOPERATIVE (total cooperative assets) TOTAL NUMBERSHARE 1. MICRO18,09576.4% 2. SMALL3,59515.2% 3. MEDIUM1,5666.6% 4. LARGE4161.8% TOTAL23,672100% Source of basic data: Cooperative Development Authority Note: Range of values for cooperative assets by category are as follows: Micro (3 million pesos and below); Small (3 million to 15 million pesos); Medium (16 million to 100 million pesos; Large (more than 100 million pesos)

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES NUMBER OF COOPERATIVES, BY CATEGORY AND ISLAND GROUP(2013) CATEGORYLUZONVISAYASMINDANAOPHILIPPINES 1.MICRO8,5322,7776,77618,095 2. SMALL1,8726781,0333,595 3. MEDIUM8492954081,566 4. LARGE20462101416 TOTAL11,4573,8128,21823,672 Source of basic data: Cooperative Development Authority Note: Table is analyzed row-wise. Figures in orange fill indicate the location of the biggest number of cooperatives for the particular type of cooperative.

Total Number of Members of Cooperatives in the Philippines = 12,676,828 (as of Dec. 31, 2013) Luzon = 7,317,587 (57.2%) Visayas = 2,400,699 (18.9%) Mindanao = 2,958,542 (23.3%)

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES TOTAL COOPERATIVE MEMBERSHIP (as of December 31, 2013) TOTAL POPULATION (AGES 20 AND ABOVE; 2010) PROPORTION OF COOPERATIVE MEMBERSHIP TO POPULATION (AGES 20 AND ABOVE) PHILIPPINES12,676,82853,253,30023.8% LUZON7,317,58730,440,70024.0% VISAYAS2,400,69910,668,90022.5% MINDANAO2,958,54212,143,70024.4% Source of basic data: Cooperative Development Authority

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES TYPE OF COOPERATIVE TOTAL COOPERATIVE MEMBERSHIP (as of December 31, 2013) SHARE 1. MPC7,731,18561.0% 2. CREDIT2,758,76921.8% 3. SERVICE1,649,36013.0% 4. ELECTRIC295,9922.3% 5. OTHERS241,5521.9% TOTAL12,676,828100% Source of basic data: Cooperative Development Authority

Total Volume of Business of Cooperatives in the Philippines = 437.61 billion pesos (as of Dec. 31, 2013) Luzon = 219.5 billion pesos (50.2%) Visayas = 61.6 billion pesos (14.1%) Mindanao = 101.9 billion pesos (23.3%) Central Office = 54.6 billion pesos (12.5%)

Average Volume of Business per Cooperative in the Philippines = 18.5 million pesos (as of Dec. 31, 2013) Luzon = 19.2 million pesos per coop Visayas = 16.2 million pesos per coop Mindanao = 12.3 million pesos per coop (23.3%) Central Office = 642.3 million pesos per coop

Total Employment Generated by Cooperatives in the Philippines = 259,527 (as of Dec. 31, 2013) Luzon = 149,253 (57.5%) Visayas = 31,202 (12.0%) Mindanao = 79,073 (30.5%)

Average Employment Generated per Cooperative in the Philippines = 11 (as of Dec. 31, 2013) Luzon = 13 per coop Visayas = 9 per coop Mindanao = 10 per coop

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES CONTRIBUTION OF COOPERATIVES TO GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT (2012; in constant 2000 prices) CONTRIBUTION TO GROSS DOMESTIC PRODUCT PHILIPPINES6.31 trillion pesos LUZON224.4 billion pesos3.56% OF GDP VISAYAS33.31 billion pesos0.52% OF GDP MINDANAO49.62 billion pesos0.79% OF GDP TOTAL (COOPERATIVES) 307.33 billion pesos4.87% OF GDP Source of basic data: Cooperative Development Authority

FACTS AND FIGURES: COOPERATIVES IN THE PHILIPPINES

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Location, Type, and Category of cooperatives – 5 out of 10 registered cooperatives in the Philippines are located in Luzon. – 6 out of 10 registered cooperatives in the Philippines are multi-purpose cooperatives. – 8 out of 10 registered cooperatives in the Philippines are micro cooperatives.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Regional distribution of cooperatives – CALABARZON, NCR, CENTRAL LUZON, and ILOCOS REGION have the most number of registered cooperatives in Luzon. – CENTRAL VISAYAS and WESTERN VISAYAS have the most number of registered cooperatives in the Visayas. – DAVAO REGION, ARMM, NORTHERN MINDANAO, AND SOCCSKSARGEN have the most number of registered cooperatives in Mindanao.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Membership – Roughly 6 out of 10 coop members live in Luzon. – Almost 25% of the population ages 20 and above are members of cooperatives. – 6 out of 10 coop members are members of multi- purpose cooperatives.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Volume of Business – The total volume of business of registered cooperatives in the Philippines in 2013 (437.6 billion pesos) is 3.8% of the 2013 GDP of the Philippines. – The average volume of business of each registered cooperative in the Philippines is 18.5 million pesos.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Employment Generated – The total employment generated by registered cooperatives in the Philippines in 2013 (259,527) is 0.7% of the total number of persons employed in the Philippines in 2013. – About 6 out of 10 jobs generated by cooperatives are in Luzon. – Average employment generated by each registered cooperative in the Philippines is 11.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Contribution to Gross Domestic Product – Based on data from the Cooperative Development Authority, the gross domestic product of all registered cooperatives is about 4.9% of the gross domestic product of the Philippines in 2012. – About 73% of this contribution can be attributed to cooperatives in Luzon, 16% to cooperatives in Mindanao, and 11% to cooperatives in the Visayas.

FACTS AND FIGURES : COOPERATIVES IN MINDANAO

FACTS AND FIGURES ABOUT COOPERATIVES IN MINDANAO REGIONTOTAL NUMBER OF REGISTERED COOPERATIVES (as of December 31, 2013) SHARE (in total number of cooperatives in Mindanao) ZAMBOANGA PENINSULA (R9)8259.9% NORTHERN MINDANAO (R10)1,60519.3% DAVAO REGION (R11)1,83322.0% SOCCSKSARGEN (R12)1,15913.9% CARAGA1,14913.8% ARMM1,74721.0% TOTAL8,318100% Source of basic data: Cooperative Development Authority Note: R stands for region.

FACTS AND FIGURES ABOUT COOPERATIVES IN MINDANAO NUMBER OF COOPERATIVES BY REGION AND BY TYPE (2013) COOP TYPEREGION 9 REGION 10REGION 11 REGION 12 CARAGAARMMMINDA NAO MPC6101,0531,1977297287115,028 PRODUCER428611794132442913 CREDIT6220918513511234737 MARKETING1686785735379651 CONSUMER52691063410055416 SERVICE1860119812495397 OTHERS152620 1025116 FEDERATION10161198660 TOTAL8251,6051,8331,1591,1491,7478,318 Source of basic data: Cooperative Development Authority Notes: Table is analyzed row-wise. Figures in orange fill indicate the location of the biggest number of cooperatives by type of cooperative. R stands for region.

FACTS AND FIGURES ABOUT COOPERATIVES IN MINDANAO NUMBER OF COOPERATIVES BY CATEGORY (TOTAL COOPERATIVE ASSETS FOR 2013) COOP TYPEREGION 9 REGION 10REGION 11 REGION 12 CARAGAARMMMINDA NAO MICRO6441,2831,4098359221,6836,776 SMALL115226276212161431,033 MEDIUM5778104976111408 LARGE918415510101 TOTAL8251,6051,8331,1591,1491,7478,318 Source of basic data: Cooperative Development Authority Note: Table is analyzed row-wise. Figures in orange fill indicate the location of the biggest number of cooperatives by type of cooperative. Range of values for cooperative assets by category are as follows: Micro (3 million pesos and below); Small (3 million to 15 million pesos); Medium (16 million to 100 million pesos; Large (more than 100 million pesos)

FACTS AND FIGURES ABOUT COOPERATIVES IN MINDANAO REGIONTOTAL NUMBER OF COOP MEMBERS (as of December 31, 2013) REGIONAL POPULATION (AGES 20 AND ABOVE ; 2010) PROPORTION OF COOP MEMBERS TO REGIONAL POPULATION (AGES 20 AND ABOVE) ZAMBOANGA PENIN SULA613,8401,750,70035.1% NORTHERN MINDANAO724,1392,424,50029.9% DAVAO REGION798,3682,552,20031.3 SOCCSKSARGEN380,7752,185,50017.4 CARAGA346,5211,383,20025.0% ARMM94,8991,847,6005.1% TOTAL2,958,84212,143,70024.4% Source of basic data: Cooperative Development Authority

FACTS AND FIGURES ABOUT COOPERATIVES IN MINDANAO REGIONTOTAL VOLUME OF BUSINESS (as of December 31, 2013; in billion pesos) SHARE (in total volume of business in Mindanao) TOTAL MINDANAO101.88 ZAMBOANGA PENINSULA (R9)9.999.8% NORTHERN MINDANAO (R10)26.5726.1% DAVAO REGION (R11)36.9936.3% SOCCSKSARGEN (R12)15.6715.4% CARAGA7.197.1% ARMM5.475.4% Source of basic data: Cooperative Development Authority Note: R stands for region.

FACTS AND FIGURES ABOUT COOPERATIVES IN MINDANAO AVERAGE VOLUME OF BUSINESS (2013) MINDANAO12.25 million pesos ZAMBOANGA PENINSULA (R9)12.11 million pesos NORTHERN MINDANAO (R10)16.55 million pesos DAVAO REGION (R11)20.18 million pesos SOCCSKSARGEN (R12)13.52 million pesos CARAGA6.26 million pesos ARMM3.13 million pesos Source of basic data: Cooperative Development Authority Notes: Average volume of business was computed by dividing total volume of business by the total number of cooperatives in the region. R stands for region.

FACTS AND FIGURES ABOUT COOPERATIVES IN MINDANAO REGIONTOTAL EMPLOYMENT GENERATED (as of December 31, 2013) SHARE (in total employment generated in Mindanao) AVERAGE EMPLOYMENT GENERATED TOTAL MINDANAO79,07310 ZAMBOANGA PEN.9,25211.7%11 NORTHERN MIND.20,53026.0%13 DAVAO REGION24,44231.0%13 SOCCSKSARGEN9,46912.0%8 CARAGA6,6658.4%6 ARMM8,71511.0%5 Source of basic data: Cooperative Development Authority Note: The average employment generated was computed by dividing total employment generated by the total number of cooperatives in the region.

FACTS AND FIGURES ABOUT COOPERATIVES IN MINDANAO CONTRIBUTION OF MINDANAO COOPERATIVES TO GROSS REGIONAL DOMESTIC PRODUCT GROSS REGIONAL DOMESTIC PRODUCT (2012; in constant 2000 prices; in pesos) REGIONAL DOMESTIC PRODUCT OF COOPERATIVES (2012; in constant 2000 prices; in pesos) CONTRIBUTION OF COOPERATIVES TO GROSS REGIONAL DOMESTIC PRODUCT MINDANAO911.33 billion49.62 billion5.44% ZAMBOANGA PEN.131.69 billion3.69 billion2.80% NORTHERN MIND.239.68 billion15.91 billion6.64% DAVAO REGION242.23 billion14.89 billion6.15% SOCCSKSARGEN172.26 billion6.11 billion3.55% CARAGA77.43 billion4.23 billion5.46% ARMM48.04 billion4.79 billion9.97% Source of basic data: Cooperative Development Authority Note: The contribution was computed by dividing the regional domestic product of cooperatives by the gross regional domestic product of the region

FACTS AND FIGURES: COOPERATIVES IN MINDANAO

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Location, Type, and Category of cooperatives – Davao Region and ARMM have the biggest number of cooperatives in Mindanao. – 6 out of 10 registered cooperatives in Mindanao are multi-purpose cooperatives. – 8 out of 10 registered cooperatives in Mindanao are micro cooperatives.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Regional distribution of cooperatives – Davao Region has the most number of MPC, consumer, and service cooperatives in Mindanao. – Northern Mindanao has the most number of credit cooperatives, other types of cooperatives, and cooperative federation in Mindanao. – ARMM has the most number of producer and marketing cooperatives in Mindanao.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Regional distribution of cooperatives – Davao Region has the most number of micro and small cooperatives in Mindanao. – Northern Mindanao has the most number of medium and large cooperatives in Mindanao.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Membership – Davao Region and Northern Mindanao have the most number of coop members in Mindanao. – Almost 25% of the population of Mindanao ages 20 and above are members of cooperatives. – More than 1/3 of the population of Zamboanga Peninsula ages 20 and above are members of cooperatives.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Membership – About 30% of the population of Northern Mindanao and Davao Region ages 20 and above are members of cooperatives. – About 1/4 of the population of CARAGA ages 20 and above are members of cooperatives.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Volume of Business – The total volume of business of registered cooperatives in Mindanao in 2013 is 101.88 billion pesos. – At least 60% of the volume of business of cooperatives in Mindanao can be attributed to Northern Mindanao, Davao Region. – The average volume of business of each registered cooperative in Mindanao is 12.25 million pesos.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Employment Generated – In 2013, registered cooperatives in Mindanao generated 79,073 jobs. – At least 55% of these jobs are in Northern Mindanao and Davao Region. – Average employment generated by each registered cooperative in Mindanao is 10.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Contribution to Gross Domestic Product – Based on data from the Cooperative Development Authority, the gross domestic product of all registered cooperatives in Mindanao is about 5.4% of the gross regional domestic product of Mindanao in 2012. – Cooperatives in the Northern Mindanao and Davao Region contributed most to the gross regional domestic product of Mindanao in 2012.

FACTS AND FIGURES ABOUT COOPERATIVES IN THE PHILIPPINES Contribution to Gross Domestic Product – Cooperatives in the ARMM contributed about 10% to the Gross Regional Domestic Product of the ARMM. – Cooperatives in Northern Mindanao and Davao Region contributed at least 6% to the Gross Regional Domestic Product of the two regions.

MEASUREMENT OF THE CONTRIBUTION OF COOPERATIVES TO THE NATIONAL ECONOMY

OBJECTIVES To measure the quantifiable economic contribution of cooperatives, particularly MASS-SPECC member-cooperatives To quantify the multiplier effects of the quantifiable economic contribution of cooperatives, particularly MASS-SPECC member-cooperatives

NUMBER OF SAMPLE COOPERATIVES TOTAL NUMBER OF MASS-SPECC MEMBER-COOP NUMBER OF SAMPLE COOP SHARE OF SAMPLE IN TOTAL NUMBER OF MASS-SPECC MEMBER COOP ZAMBOANGA PEN.431330.2% NORTHERN MIND.632133.3% DAVAO REGION561730.4% SOCCSKSARGEN551221.8% CARAGA36925.0% ARMM16318.7% LUZON300.0% Source of data: MASS SPECC

LEVELS OF ANALYSIS By region and sample cooperatives (based on actual data By region and total number of member- cooperatives (based on estimates) By island group (Mindanao) (based on estimates)

QUANTIFIABLE ECONOMIC CONTRIBUTIONS Quantifiable economic contributions of cooperatives include: – Income earned by cooperatives – Money spent by cooperatives – Patronage refunds paid – Taxes paid – Number of persons employed

QUANTIFIABLE ECONOMIC CONTRIBUTIONS QUANTIFIABLE CONTRIBUTIONS VARIABLE(S) ANALYZED 1. Income earned1. Gross revenue 2. Money spent2. Wages, salaries, benefits paid 3. Patronage refunds3. Cash dividend 4. Taxes paid4. National and local taxes paid 5. Number of employed persons 5. Number of full time employees

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (REGION 9 – SAMPLE OF 13 COOPERATIVES) Amount (in pesos) GROSS REVENUE340,000,000 WAGES, SALARIES, BENEFITS144,816,000 CASH DIVIDEND20,002,000 TAXES PAID1,047,000 TOTAL MONETARY CONTRIBUTION 505,865,0000.23% of current Gross Regional Domestic Product of Region 9 (2012) NO. OF PERSONS EMPLOYED7080.05% of total employment in Region 9 (2012) Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (REGION 9 – ESTIMATE FOR ALL 43 MEMBER-COOPERATIVES) Amount (in pesos) GROSS REVENUE1,284,000,000 WAGES, SALARIES, BENEFITS574,027,000 CASH DIVIDEND79,315,000 TAXES PAID5,257,000 TOTAL MONETARY CONTRIBUTION 1,942,599,0000.90% of current Gross Regional Domestic Product of Region 9 (2012) NO. OF PERSONS EMPLOYED3,3830.24% of total employment in Region 9 (2012) Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (REGION 10 – SAMPLE OF 21 COOPERATIVES) Amount (in pesos) GROSS REVENUE1,176,000,000 WAGES, SALARIES, BENEFITS253,002,000 CASH DIVIDEND332,728,000 TAXES PAID3,343,000 TOTAL MONETARY CONTRIBUTION 1,764,973,0000.43% of current Gross Regional Domestic Product of Region 9 (2012) NO. OF PERSONS EMPLOYED1,1150.06% of total employment in Region 9 (2012) Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (REGION 10 – ESTIMATE FOR ALL 63 MEMBER-COOPERATIVES) Amount (in pesos) GROSS REVENUE3,628,000,000 WAGES, SALARIES, BENEFITS839,380,000 CASH DIVIDEND1,248,000,000 TAXES PAID12,396,000 TOTAL MONETARY CONTRIBUTION 5,727,776,0001.40% of current Gross Regional Domestic Product of Region 9 (2012) NO. OF PERSONS EMPLOYED3,6980.19% of total employment in Region 9 (2012) Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (REGION 11 – SAMPLE OF 17 COOPERATIVES) Amount (in pesos) GROSS REVENUE1,115,000,000 WAGES, SALARIES, BENEFITS231,123,000 CASH DIVIDEND211,871,000 TAXES PAID1,957,000 TOTAL MONETARY CONTRIBUTION 1,559,951,0000.37% of current Gross Regional Domestic Product of Region 9 (2012) NO. OF PERSONS EMPLOYED4150.02% of total employment in Region 9 (2012) Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (REGION 12 – SAMPLE OF 12 COOPERATIVES) Amount (in pesos) GROSS REVENUE377,686,000 WAGES, SALARIES, BENEFITS248,504,000 CASH DIVIDEND30,500,000 TAXES PAID1,546,000 TOTAL MONETARY CONTRIBUTION 658,236,0000.22% of current Gross Regional Domestic Product of Region 9 (2012) NO. OF PERSONS EMPLOYED3000.02% of total employment in Region 9 (2012) Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (CARAGA – SAMPLE OF 9 COOPERATIVES) Amount (in pesos) GROSS REVENUE188,320,000 WAGES, SALARIES, BENEFITS29,868,000 CASH DIVIDEND25,147,,000 TAXES PAID480,109 TOTAL MONETARY CONTRIBUTION 235,815,1090.19% of current Gross Regional Domestic Product of Region 9 (2012) NO. OF PERSONS EMPLOYED2740.03% of total employment in Region 9 (2012) Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (CARAGA – ESTIMATE FOR ALL 36 MEMBER-COOPERATIVES) Amount (in pesos) GROSS REVENUE753,279,000 WAGES, SALARIES, BENEFITS134,408,000 CASH DIVIDEND100,587,000 TAXES PAID2,160,000 TOTAL MONETARY CONTRIBUTION 990,434,0000.81% of current Gross Regional Domestic Product of Region 9 (2012) NO. OF PERSONS EMPLOYED1,2330.12% of total employment in Region 9 (2012) Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (ARMM – SAMPLE OF 3 COOPERATIVES) Amount (in pesos) GROSS REVENUE86,135,000 WAGES, SALARIES, BENEFITS15,442,000 CASH DIVIDEND8,552,000 TAXES PAID210,248 TOTAL MONETARY CONTRIBUTION 110,339,2480.12% of current Gross Regional Domestic Product of Region 9 (2012) NO. OF PERSONS EMPLOYEDno data Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (ARMM – ESTIMATE FOR ALL 16 MEMBER-COOPERATIVES) Amount (in pesos) GROSS REVENUE459,389,000 WAGES, SALARIES, BENEFITS82,355,000 CASH DIVIDEND68,419,000 TAXES PAID3,364,000 TOTAL MONETARY CONTRIBUTION 613,527,0000.66% of current Gross Regional Domestic Product of Region 9 (2012) NO. OF PERSONS EMPLOYEDno data Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (for SAMPLE of 75 MEMBER-COOPERATIVES) Amount (in pesos) GROSS REVENUE3,280,000,000 WAGES, SALARIES, BENEFITS922,760,000 CASH DIVIDEND628,800,000 TAXES PAID17,100,000 TOTAL MONETARY CONTRIBUTION 4,848,660,0000.31% of current Gross Regional Domestic Product of Mindanao NO. OF PERSONS EMPLOYED2,8120.03% of total employment in Mindanao Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (ESTIMATE FOR ALL MEMBER-COOPERATIVES IN MINDANAO) Amount (in pesos) GROSS REVENUE11,624,688,000 WAGES, SALARIES, BENEFITS3,823,547,000 CASH DIVIDEND2,838,433,000 TAXES PAID61,332,000 TOTAL MONETARY CONTRIBUTION 18,347,980,0001.17% of current Gross Regional Domestic Product of Mindanao NO. OF PERSONS EMPLOYED11,8200.13% of total employment in Mindanao Sources of basic data: MASS SPECC, Philippine Statistics Authority

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (SUMMARY OF RESULTS- FOR MINDANAO) ECONOMIC CONTRIBUTION (as % of current gross regional domestic product of Mindanao for 2012) EMPLOYMENT CONTRIBUTION (as % of total employment in Mindanao for 2012) SAMPLE 75 COOPERATIVES 0.31%0.03% ESTIMATE FOR ALL MEMBER COOPERATIVES 1.17%0.13%

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (SUMMARY OF RESULTS – SAMPLE 75 COOPERATIVES AND BY REGION) ECONOMIC CONTRIBUTION (as % of current gross regional domestic product (2012) EMPLOYMENT CONTRIBUTION (as % of total employment in Mindanao for 2012) ZAMBOANGA PENINSULA (R9) 0.23%0.05% NORTHERN MINDANAO (R10) 0.43%0.06% DAVAO REGION (R11) 0.37%0.02% SOCCSKSARGEN (R12) 0.22%0.02% CARAGA 0.19%0.03% ARMM 0.31%no data

QUANTIFIABLE ECONOMIC CONTRIBUTIONS (SUMMARY OF RESULTS – ESTIMATE FOR ALL MEMBER- COOPERATIVES AND BY REGION) ECONOMIC CONTRIBUTION (as % of current gross regional domestic product (2012) EMPLOYMENT CONTRIBUTION (as % of total employment in Mindanao for 2012) ZAMBOANGA PENINSULA (R9) 0.90%0.24% NORTHERN MINDANAO (R10) 1.40%0.19% DAVAO REGION (R11) 1.37%0.08% SOCCSKSARGEN (R12) 1.08%0.08% CARAGA 0.81%0.12% ARMM 0.66%no data

MULTIPLIER EFFECTS Quantifiable economic contributions give rise to multiplier effects. These multiplier effects have to be quantified to capture the total contribution of cooperatives to the economy.

MULTIPLIER EFFECTS What do we mean by multiplier effects? – Effects brought about by the repeated and continuous transactions happening in the economy – Shows how one peso can become more than one peso due to repeated and continuous transactions happening in the economy every day.

MULTIPLIER EFFECTS Tool: Non-survey regional input-output impact multiplier matrix (RIMM) The following multipliers were derived from the RIMM: – Total output multiplier – Total household income multiplier

MULTIPLIER EFFECTS Multiplier effects quantified using the total output multiplier and total household income multiplier: – Output multiplier effect – Household income multiplier effect – Employment multiplier effect

MULTIPLIER EFFECTS Aside from the total output and total household income multipliers, the simple Keynesian multiplier was used. Simple Keynesian multiplier → Output multiplier effect induced by the following: – Wages, salaries, benefits paid – Cash dividend

MULTIPLIER EFFECTS Basis of the simple Keynesian multiplier: – On average, every Mindanaoan spends 80 centavos for every one peso earned. – This spending behavior results in induced output multiplier effects. – The simple Keynesian multiplier for Mindanao is 5 (one peso spent generates 5 pesos additional output in the economy).

MULTIPLIER EFFECTS DUE TO/ DERIVED FROMMULTIPLIER / TOOL USED OUTPUT MULTIPLIER EFFECT GROSS REVENUE WAGES, SALARIES, BENEFITS CASH DIVIDEND TOTAL OUTPUT MULTIPLIER SIMPLE KEYNESIAN MULT. HOUSEHOLD INCOME MULTIPLIER EFFECT GROSS REVENUETOTAL HOUSEHOLD INCOME MULTIPLIER EMPLOYMENT MULTIPLIER EFFECT HOUSEHOLD INCOME MULTIPLIER EFFECT AVERAGE ANNUAL COMPENSATION OF EMPLOYEES

MULTIPLIER EFFECTS INTERPRETATION OF MULTIPLIERS Example: Assume that the output/household income multiplier is 2.5 Interpretation: A one-peso increase in revenue generates 2.5 pesos additional output/ household income.

MULTIPLIER EFFECTS TOTAL OUTPUT MULTIPLIER TOTAL HOUSEHOLD INCOME MULTIPLIER ZAMBOANGA PENINSULA (R9) 3.411.27 NORTHERN MINDANAO (R10)2.621.08 DAVAO REGION (R11)3.601.39 SOCCSKSARGEN (R12)3.471.54 CARAGA3.031.01 ARMM2.930.47 AVERAGE MINDANAO3.181.13

MULTIPLIER EFFECTS REGION 9 – SAMPLE 13 COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 1.983 billion pesos0.92% of current gross regional domestic product (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 431.8 million pesos3.46% of total household family income (2012) EMPLOYMENT MULTIPLIER EFFECT 2,041 additional jobs 4% increase in number of employed persons

MULTIPLIER EFFECTS REGION 9 – ESTIMATE FOR ALL MEMBER-COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 7.645 billion pesos3.53% of current gross regional domestic product (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 1.631 billion pesos1.31% of total household family income (2012) EMPLOYMENT MULTIPLIER EFFECT 7,706 additional jobs 14% increase in number of employed persons

MULTIPLIER EFFECTS REGION 10 – SAMPLE 21 COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 6.010 billion pesos1.47% of current gross regional domestic product (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 1.270 billion pesos0.69% of total household family income (2012) EMPLOYMENT MULTIPLIER EFFECT 6,002 additional jobs 6% increase in number of employed persons

MULTIPLIER EFFECTS REGION 11 – SAMPLE 17 COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 6.231 billion pesos1.47% of current gross regional domestic product (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 1.550 billion pesos0.74% of total household family income (2012) EMPLOYMENT MULTIPLIER EFFECT 7,324 additional jobs 6% increase in number of employed persons

MULTIPLIER EFFECTS REGION 12 – SAMPLE 12 COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 2.706 billion pesos0.90% of current gross regional domestic product (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 581.6 million pesos0.36% of total household family income (2012) EMPLOYMENT MULTIPLIER EFFECT 2,749 additional jobs 4% increase in number of employed persons

MULTIPLIER EFFECTS REGION 12 – ESTIMATE FOR ALL MEMBER-COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 13.417 billion pesos4.48% of current gross regional domestic product (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 2.801 Billion pesos1.74% of total household family income (2012) EMPLOYMENT MULTIPLIER EFFECT 13,238 additional jobs 18% increase in number of employed persons

MULTIPLIER EFFECTS CARAGA – SAMPLE 9 COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 821.4 million pesos0.67% of current gross regional domestic product (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 182.1 million pesos0.19% of total household family income (2012) EMPLOYMENT MULTIPLIER EFFECT 861 additional jobs1% increase in number of employed persons

MULTIPLIER EFFECTS CARAGA – ESTIMATE FOR ALL MEMBER-COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 3.457 billion pesos2.82% of current gross regional domestic product (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 760.8 million pesos0.79% of total household family income (2012) EMPLOYMENT MULTIPLIER EFFECT 3,596 additional jobs 6% increase in number of employed persons

MULTIPLIER EFFECTS ARMM – SAMPLE 3 COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 372.3 million pesos0.40% of current gross regional domestic product (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 40.5 million pesos0.06% of total household family income (2012) EMPLOYMENT MULTIPLIER EFFECT 191 additional jobs0.4% increase in number of employed persons

MULTIPLIER EFFECTS ARMM – ESTIMATE FOR ALL MEMBER-COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 2.100 billion pesos2.25% of current gross regional domestic product (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 215.9 million pesos0.30% of total household family income (2012) EMPLOYMENT MULTIPLIER EFFECT 1,021 additional jobs 2.4% increase in number of employed persons

MULTIPLIER EFFECTS MINDANAO – SAMPLE 75 COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 18.188 billion pesos1.16% of current gross regional domestic product of Mindanao (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 3.706 billion pesos0.44% of total household family income of Mindanao (2012) EMPLOYMENT MULTIPLIER EFFECT 17,515 additional jobs3.9% increase in number of employed persons in Mindanao

MULTIPLIER EFFECTS MINDANAO – ESTIMATE FOR ALL MEMBER-COOPERATIVES EFFECT OUTPUT MULTIPLIER EFFECT 70.276 billion pesos4.49% of current gross regional domestic product of Mindanao (2012) HOUSEHOLD INCOME MULTIPLIER EFFECT 13.136 billion pesos1.55% of total household family income of Mindanao (2012) EMPLOYMENT MULTIPLIER EFFECT 62,075additional jobs13.8% increase in number of employed persons in Mindanao

MULTIPLIER EFFECTS SUMMARY OF RESULTS – SAMPLE 75 COOPERATIVES AND BY REGION OUTPUT MULTIPLIER EFFECT (as % of gross regional domestic product for 2012) HOUSEHOLD INCOME MULTIPLIER EFFECT (as % of total household family income for 2012) EMPLOYMENT MUTI PLIER EFFECT (% increase in the number of employed persons) ZAMBOANGA PEN.0.92%3.46%4% NORTHERN MIND.1.47%0.69%6% DAVAO REGION1.47%0.74%6% SOCCSKSARGEN0.90%0.36%4% CARAGA0.67%0.19%1% ARMM0.40%0.06%4% MINDANAO1.16%0.44%3.9%

MULTIPLIER EFFECTS SUMMARY OF RESULTS – ESTIMATE FOR ALL MEMBER COOPERATIVES AND BY REGION OUTPUT MULTIPLIER EFFECT (as % of gross regional domestic product for 2012) HOUSEHOLD INCOME MULTIPLIER EFFECT (as % of total household family income for 2012) EMPLOYMENT MUTI PLIER EFFECT (% increase in the number of employed persons) ZAMBOANGA PEN.3.53%1.31%14% NORTHERN MIND.4.87%2.12%19% DAVAO REGION5.62%2.44%20% SOCCSKSARGEN4.48%1.74%18% CARAGA2.82%0.79%6.0% ARMM2.25%0.30%2.4% MINDANAO4.49%1.55%13.8%

OTHER CONTRIBUTIONS OF COOPERATIVES TO THE NATIONAL ECONOMY

OTHER CONTRIBUTIONS Development of market niches and their integration into the economy Transformation of informal activities and their integration into the formal economy Mobilization of funds and financial resources for productive activities

OTHER CONTRIBUTIONS Access to basic services such as health, education, water, and energy Utilization of local knowledge and resources Change in the preferences, habits, and characters of members and consequently trigger social reform

On average, a one-peso increase in the revenue of MASS-SPECC member-cooperatives generates: a)3.18 pesos additional output b)1.13 pesos additional household income c)6 additional jobs for every 1 MILLION pesos additional revenue S

Cooperatives, in this case MASS-SPECC MEMBER- COOPERATIVES, help STABILIZE and contribute to the GROWTH of local communities and regional economies through the generation of additional output, household income, and jobs.

THANK YOU.

Cid L. Terosa, Ph.D. School of Economics University of Asia and the Pacific THE CONTRIBUTION OF COOPERATIVES TO THE NATIONAL ECONOMY: THE CASE OF MASS-SPECC.

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Cid L. Terosa, Ph.D. School of Economics University of Asia and the Pacific THE CONTRIBUTION OF COOPERATIVES TO THE NATIONAL ECONOMY: THE CASE OF MASS-SPECC.

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Presentation on theme: "Cid L. Terosa, Ph.D. School of Economics University of Asia and the Pacific THE CONTRIBUTION OF COOPERATIVES TO THE NATIONAL ECONOMY: THE CASE OF MASS-SPECC."— Presentation transcript:

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