What are the common problems of cooperatives in the Philippines?

At the turn of the century, Filipinos in increasing numbers travelled and studied abroad and brought home with them new ideas. It was this group of Filipinos who were in close in contact with the new economic movement in Europe.

Two names worthy of note were Dr. Jose P. Rizal and Teodoro Sandiko.

Rizal, after his side trip to Sandakan, Borneo in 1892, requested Governor Despudol that he and some relatives and friends be permitted to move to that place and found a colony under the cooperative plan of Robert Owen. Instead, he was arrested for treason and banished to Dapitan, Zamboanga del Norte.

In Dapitan, Rizal had his ideas in cooperation partially fulfilled. He put up a school for the poor community on a purely cooperative basis. He also established a cooperative store with the help of his pupils. One noteworthy group organized by Rizal was the Society of Abaca Producers. This functioned for only one year. Rizal returned the members' share capital without any loss.

Teodoro Sandiko, in his travels in Europe, must have had a close contact with the cooperative movement in Germany where he came across with the Raiffeisen movement. He was very much impressed by this type of cooperative and he looked forward for an opportunity to have it introduced to the Philippines. As destiny might have its choice, Sandiko had his chance when he was appointed one of the early governors when Civil Government, under the Americans, was established.