Cunanan, R. L. (2016). Prior operator rule: It's applicability in cooperatives (Unpublished master's thesis). Public Management Development Program, Development Academy of the Philippines.

Public Management and Development Program Senior Executives Class Batch 5 Thesis (SEC)--Development Academy of the Philippines.

This policy paper stemmed from the idea and aimed to regulate and institutionalize the entry of other cooperatives of the same type to maximize the profitability and sustainability of an existing micro cooperative in a particular barangay/municipality within the context of government intervention through the Cooperative Development Authority (CDA). Policy guidelines should be properly laid-down or promulgated providing the extent and nature in terms of control on entry of other micro cooperatives or other cooperatives, whether it's a small, medium and large cooperative, of the same activity or purpose in the same locality. Prior Operator Rule of cooperatives is a tool in order to regulate or prevent additional operator or cooperative to enter within a period of five (5) years, except on some valid grounds as maybe provided by law/policy, since many micro cooperatives could not sustain due to the fact of the so called "undue or unfair competition between and among small, medium large and micro or micro against micro, thereby ruining the existence of the latter since it could not greatly cope up in terms of resources with the large cooperative or other similar micro cooperatives. Under this rule, the existing cooperative, either credit, consumers, service, etc., (as prior operator) in a particular barangay/municipality shall be given the preferential right to exclusively operate and render satisfactory and economical services to members and community within the authorized area as provided for in the Articles of Cooperation and By-Laws. The prior operator (existing cooperative) must be given the opportunity to extend its services within 5 years before permitting a new operator (entry of new cooperative of the same type and/operation business regardless of categorization) to operate in the territory of said prior operator. Data gathered reveal that there are number of registered micro cooperatives. But until the turning of years of existence, despite of several developmental interventions implemented still they are categorized as such, other dissolved, cancelled and some collapsed as it could not sustain the competition and lack of viable resources to proceed and operate further. Hence, since competition is tremendous and apparent recently, there is no way that the government could help the micro cooperatives to prosper except to maximize the intervention in the form of laying and promulgating this policy of prior operator rule for five (5) years to sustain the viability of revolving its financial resources and other assets ensuring the safe and sound operations of the cooperative. This will mitigate the ill-effects of cutthroat competition between and among cooperatives of the same nature and in the same locality. Let CDA provide a fair playing field and provide a timely measure by having the flexibility to intervene as it deemed necessary.