Furthermore, in the case of credit cooperatives, there was a virtual exclusion of the landless in securing credits, as found by the National Commission on Agriculture in 1971.

♤ Credit cooperatives suffered from major drawback of failure of repayment of loans, which led to large percentage of over-dues.

♤ Contrary to common perception, rich and landowning community were largest defaulters than the poor and small farmers.

Thus, over the yearsinstead of promoting people's participation, the cooperative movement became overstaffed with government officials and became inefficient.