The Role of Coffee Cooperatives in the Socio-Economic Transition of Rebel Returnees in Sulu, Southern Philippines
Reintegrating former rebels into civilian life remains a major challenge in post-conflict societies, where sustainable livelihoods and social cohesion are essential for long-term peace. The Philippines is one of the most conflict-affected countries in the world, sharing the 29th spot with Afghanistan and ranks second in ASEAN after Myanmar. The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) in the southern Philippines has been particularly affected by decades of armed conflict and
institutional weaknesses, notably in provinces such as Sulu. In response, the Philippine government is promoting the integration of returnees into coffee cooperatives as part of its peace and reintegration strategy. Despite persistent volatility, the BARMM, particularly Sulu province, has emerged as one of the country’s leading coffee-producing regions contributing over a quarter of national production and providing a strategic pathway to economic recovery. It is therefore crucial to understand how these cooperatives contribute to both livelihoods and social reintegration. This study examines how membership in a coffee cooperative is associated to the socio-economic transition of rebel returnees in Sulu. Based on the Disarmament, Demobilization, and Reintegration (DDR) framework and social capital theory, a comparative cross-sectional design with survey data from 101 returnees was used. Through regression analysis and structural equation modelling, we show that membership in a cooperative is associated with higher productivity, financial stability, and stronger social capital, even if infrastructural challenges, conflict vulnerabilities, governance, and market difficulties persist. The study demonstrates how locally rooted cooperatives can transform conflict legacies into peace dividends that foster economic gains, social cohesion, and inclusive development. These findings highlight the potential of cooperatives as a pathway for durable socio-economic transitions in fragile contexts. Moreover, the study underscores the importance of targeted support, capacity building, and improved market access to enable returnee cooperatives to fully realize their role in promoting sustainable livelihoods, facilitating social reintegration, and contributing to lasting peace.
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