Development Opportunities

Despite these phenomenal challenges, there are a number of factors that can be leveraged to support the development of the Bangsamoro.

Natural and Human Resource Base

The Bangsamoro area enjoys a natural and comparative advantage in the form of vast relatively undeveloped land areas and expansive waterways, both inland and coastal. Its rich agricultural lands are suitable to production of high value crops such as banana, pineapple, asparagus, oil palm, rubber and an assortment of orchards. Its sea and freshwater contributes around 18% of the total national fish catch. It also boasts mineral and non-mineral resources, though their financial and economic viability remain to be fully determined.

On the human capital side, it has a young labor force. Population projections indicate that the working-age population will account for 72% of the population in 2040 from 63% in 2010. The economy could take advantage of the potential gains from demographic dividends to speed up the catching up process.

Breakthrough in the Peace Process

The March 2014 signing of the Comprehensive Agreement in the Bangsamoro (CAB) after seventeen years of peace negotiations between the GPH and the MILF represents an historic opportunity to improve security and development in the present ARMM and the Philippines as a whole. This, as well as the ongoing Tripartite Implementation Review of the 1996 GPH-MINL Final Peace Agreement, creates the political environment for generating investment and improved socio-economic outcomes. While no panacea for the Bangsamoro's deep development challenges, it is hoped that the new Bangsamoro entity will meet historical Moro aspirations for political, economic, and cultural self-determination, while laying the foundation for stronger and better governance.

Growing Economic and Investment Opportunities

The ARMM has reported incremental gains as shown by an increase in GRDP growth from negative 0.3 percent in 2011 to 1.2 percent in 2013, with increased investment prospects due to the environment created by the reform agenda and the Bangsamoro peace process. As evidenced by the massive  development challenges cited earlier, however, the improvements must be sustained with systematic improvements to register tangible impacts on wellbeing. Specifically, this entails heavier investment in the agriculture and fishery sector, which is currently the biggest contributor to employment and the ARMM's GRDP, as well as targeted initiatives to address the main drivers of violence in the present Bangsamoro area: corruption, weak governance, clan-based rivalries, private armies, injustice, and limited economic opportunities for youth.

During the term of President Aquino, the annual budgetary allocation to ARMM has more than doubled, from PHP 9.3 billion in 2010 to P19.6 billion in 2014. Budget allocation to ARMM as a share in the national budget has also increased to 0.9% in 2014 from 0.6% in 2010. This does not include the special development assistance extended by the government to conflict-affected communities through PAMANA or the ARMM Transition Investment Support Program (TISP), both of which amount to a total of around PHP14.5 billion for 2011-2014.

Tracing donor assistance to conflict-affected areas in Mindanao is difficult because many donor projects are not exclusive to ARMM but also cover provinces elsewhere in Mindanao and the rest of the Philippines. However, a conservative estimate for the 2001-2010 decade puts average donor annual assistance in the vicinity of US$40 million.

Despite the significant financial inflows, developments indicators have not substantially improved, pointing to the end for a new approach to development in the Bangsamoro that will unlock the economic potential of the region and deliver stability and prosperity.


Courtesy : Peaceful and Resilient Communities, BTC and Oxfam Philippines