THE principles that drive cooperatives are the same in the Philippines as they are in every other country "enlightened" enough to engage in this practice. Open and voluntary membership allows for inclusion of all individuals, regardless of their social, political, racial, or religious beliefs. Democratic control is also present in the running of cooperatives everywhere, as affairs are administered by elected or appointed officials, in a manner agreed upon by members. There are equal voting rights on a one-member-one-vote basis.

There, too, is the principle of the division of net surplus, which the Cooperative Code of the Philippines states that "the net surplus arising out of the operations of a cooperative belongs to its members and shall be equitably distributed for cooperative development common services, indivisible reserve funds, and for limited interest on capital and/or patronage refund."

A cooperative system also provides for the education of the members, officers, and employees, and of the general public based on the principles of cooperation. Mechanisms of democracies require that participants are educated, capable of making choices in behalf of the organization if the need arises.

The dynamics of a cooperative are interesting. The Philippine Code states that cooperatives are primarily set up to encourage saving among members; generate funds for productive and provident purposes; encourage systematic production and marketing; provide goods and services, as well as other requirements to the members; develop expertise and skill among members; acquire land and provide housing benefits for members; insure against the losses of members; promote and advance the social, economic, and educational status of members; and to undertake any and all other activities for the effective and efficient implementation for the provisions of the Code.

A person or event usually becomes the catalyst for noteworthy, even historic movements. For cooperativism in the Philippines, it is former Senator and three-termer Makati Congressman Agapito 'Butz' Aquino who has been at the forefront of the movement to put cooperatives in everyone's consciousness. He is widely acknowledged as the Modern Father of the Philippine Cooperative. Aquino believes that cooperativism holds the key to solving the country's problem of widespread poverty.

To see the movement through, he has authored pieces of legislation aimed at improving the quality of life for the lower income sectors, among them, the Magna Carta for Small Farmers, The Seed Act, and the Cooperative Code of the Philippines, which was recently amended to give cooperatives greater opportunities to serve their members through financial assistance and other productive activities. The amended Code also provides for the monitoring and evaluation of managerial, financial, and social objectives. This underscores the fact that without proper governance a cooperative will fail, unlike a government system.

Being part of a cooperative might be the Holy Grail of Economics that the Philippines has been searching for. Cooperatives have mechanisms in place to provide maximum economic benefits to their members, as well as the means to teach them the efficient ways of doing things. We hope that Butz Aquino continues in this endeavor, and that he draws more advocates to his cause.