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help me explain the following: (tagalog) -Underdevelopment has always been blamed for hindering the demcratization processs. In the Philippines, one reason for underdelopment is the

help me explain the following: (tagalog)

-Underdevelopment has always been blamed for hindering the demcratization processs. In the Philippines, one reason for underdelopment is the wide gap between the rich and the poor in terms of Land ownership. In 1950, the Philipppine governmentrealized that one way to deal with this is to introduce laws to establish a formidable cooperative movement in the country. One of these was (RA) 821 in1952, which established the Agricultural Credit and Cooperative Financing Administration (ACCFA) to organize the farmers into Farmers' Cooperative Marketing Associations (FACOMAs) and to lend farmer-members credit through such associations.

Sec. 11 of Ra. 821 declared the ACCFA's objectis as fallows:

1. Stimulating the developmemt and operation of farmers' cooperatives.

2. Minimixing the lack of credit as a limiting factor in the expansion of Philippine agriculture, and

3. Freeing farmers from the economic and social domination caused by moneylenders for the use of capital.

-According to the ACCFA, the FACOMAs were mandated to; Unify efforts of agricultural production, storage and processing of farm products; enhance the bargaining position of small farmers in relation to landlords, middlemen and other social and economic groups or elements; and establish a producer- controlled marketing system that would enable farmers to enjoy the additional income from the marketing ( including storage and processing) of their product.

-Severe economic problems confronted these two organizations. For the FACOMAs, this was the slow development of the cooperative principle of capitalization by the savings of members. Resources generally came from the ACCFA, its parent organization, and the collective savings of members had been quite modest. Aggravating this was the expansion of the price-support activities of ACCFA, which threatened to dissipate the resources of the agency. Political problems included the politicization of the FACOMAs as they were used as stepping stone to local political office. Thus, the economic functions of the cooperative movement were constantly threatened.

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