City competitiveness, as defined by the World Competitiveness Yearbook, is the ability of a city to create and maintain an environment that sustains more value creation for its enterprises and more prosperity for its people.
In the recent research of the Asian Institute for Management (AIM) on the Philippine Cities Competitiveness Ranking Project (PCCRP) 2005, Philippine cities were again ranked based on seven major drivers of competitiveness: cost of doing business, dynamism of local economy, linkages and accessibility, human resources and training, infrastructure, responsiveness of local government to business needs, and quality of life. These drivers were adopted from the World Competitiveness Yearbook of the Swiss-based International Institute for Management Development.
The drivers are inter-related as one affects the other. For example, the cost of doing business driver was matched with infrastructure and quality of life. Infrastructure plays a major role in attaining economies of scale (balanced supply and demand), while efficient delivery of services improves quality of life. Dynamism of local economy also affects the cost of doing business since imbalanced supply and demand results in higher costs. A dynamic local economy also results to enhanced linkages and accessibility of resources.
Leadership affects overall competitiveness of a city. When a city is competitive, this ultimately leads to cost effective business transactions that create self-reliant Local Government Units (LGU) that are able to generate local revenues to establish a more dynamic local economy with improved infrastructure and service delivery.
The project assessed the capacity of a city to provide an environment that nurtures the dynamism of its local enterprises and industries; the general ability to attract investments and entrepreneurs, and to uplift the living standards of its residents. Lastly, the project provides a benchmarking process that will aid individual cities in measuring competitiveness. The study was intended to motivate the local governments to be economic managers, not just service providers; provide feedback mechanism for business community for local governments; and provide an assessment tool to pinpoint and analyze best practices in economic management and apply competitiveness lessons from other LGUS.
“Sixty-five cities were surveyed in PCCRP 2005, the fourth edition of the project. Cities were categorized into 13 metropolitan cities (cities comprising Metro Manila, Metro Cebu, and Metro Davao), 15 mid-sized cities (non-metro cities each with a population greater than 200,000), and 37 small cities (each with a population less than 200,000). Geographically, 30 cities are from Luzon, 14 from Visayas, and 21 from Mindanao.
Competitiveness of Mindanao Cities
Based on the results, five Mindanao cities were named most competitive. Davao , for the metropolitan city category; Iligan for the mid-size ; Koronadal, Surigao, and Tagum for the small-sized cities.
Davao City is the only metro city in Mindanao named as one of the most competitive cities in the country ; once again confirming its role as the central economic hub of the island. The efficient LGU response to business needs, infrastructure and high quality of life also contributed to the city's high rating.
In the medium-scale category, only Iligan made it as a competitive city, ranking second in cost of doing business, efficient response of LGUs, and developed infrastructure. Butuan ranked 4th in cost of doing business, Cagayan de Oro ranked 4th in Infrastructure, General Santos was 2nd in Linkages and Accessibility, and Zamboanga was first in cost of doing business and dynamism of local economy.
Small Mindanao Cities
In the small-scale cities category Surigao was ranked first in Cost of Doing Business, seconded by Koronadal, while Tagum was third in Responsiveness of LGUs to Business needs. Others that joined the Project acquired the following results in one or two drivers: Bago was 10th and Tacurong ranked 15th in Responsiveness of LGUs to business needs; Bislig was 29th in Economic Dynamism and Responsiveness of LGUs; Cotabato ranked 15th in Human Resources and Training; Dapitan was at top 11 & Oroquieta was at top 23 in Quality of Life; Digos was at top 13 in infrastructure; Gingoog was at 3rd ,Pagadian 9th and Marawi 11th in cost of doing business, while Valencia made it to 15th; Ozamis was 19th in dynamism of local economy; and Panabo was 7th in Linkages and Accessibility.
Drivers of Competitiveness
From the competitive cities' documented best practices, the leadership value of local government officials, followed by the presence of a strong support system (business alliances and responsive civil society) were deemed necessary to become a competitive city. Other factors influencing competitiveness included quality of human resources, presence of good infrastructure and a stable peace and order situation.
These best practices were based on the basics of development, which are provision for infrastructure (roads & bridges, water, power, telecommunications); quick and simplified response from government; accurate and timely collection of statistics which builds to policy making, resulting to ordinances and regulations that are responsive to current and emergent needs. Participatory governance by engaging the constituencies to collaborate with and support government development plans, is also a major factor highlighted in the study.
The study further noted the major contribution of cities to national economic development. All Mindanao cities surveyed and studied were contributing in the over all economic development of Mindanao through improved infrastructure and efficient delivery of services.
Tuesday, October 10, 2006
Friday, July 21, 2006
Federal Mindanao (Part 2) : The Promise of Federalism to Mindanao
The numbers I had shown about Mindanao’s resources and its developing economy are just one facet of the island’s complex features. For many years now, Mindanao is beset by numerous problems on peace, infrastructure development and poverty. It is actually an irony that an island that holds so much promise of prosperity is home to millions of poor families, especially in the provinces of ARMM, CARAGA and Northern Mindanao.
The National Statistical Coordination Board (NSCB), in its 2000 poverty incidence report, showed all regions in Mindanao had over 30 percent of poverty incidence. At the provincial level, Sulu (ARMM) was described as the poorest province in the Philippines, with the highest poverty incidence level of 63.2 percent. Tawi-Tawi had 56.5 percent. Maguindanao; 55.1 percent; Lanao del Sur, 55 percent; Sultan Kudarat, 54.3 percent; and Camiguin, 53.1 percent.
In the 2003 poverty report, CARAGA with 47.3 percent, the Autonomous Region of Muslim Mindanao (ARMM) with 45.7 percent, and Western Mindanao (Region IX) with 44.1 percent, were still among the top 10 poorest provinces in the Philippines.
The long-standing Mindanao peace process involving the Government of the Republic of the Philippines (GRP), Moro Islamic Liberation Front (MILF), and the Moro National Liberation Front (MNLF), and the Mindanao peace movement, is also one major concern that needs to be addressed at the structural, deep social, cultural and religious levels.
These chronic diseases beleaguering the island provided a venue for Mindanaons to meet and discuss the possible solutions or steps to take in pushing for a progressive and peaceful Mindanao. And that’s when the movement for federalism came in place.
Today, the island have an overwhelming number of “matured federalist” compared to the other regions. The movement for a federal Philippines actually originated way back December 1999, when federal advocates from the Mindanao Congress of Development NGOS (MINCON) network assembled and created Lihok Pideral Mindanao (LPM). From then on, a series of regional organizing, federal trainors’ training throughout Mindanao, Federal constitution write-shops, and consultations with key leaders in Visayas and Luzon, created the Movement for a Federal Philippines (MFP). What was once a solely Mindanaon battle cry became now, a nationwide issue. Just this week, the Technical Assistance for the Development of Rural and Urban Poor (TACDRUP) hosted a forum for Federalism and Charter Change where discussions on federalism was brought to higher grounds.
The heightened interest on the Federal System has finally made federalism a national debatable issue the active participation of key Mindanawan leaders in the historical 2005 Consultative Constitutional Commission or ConCom. Although the fate of federalism is now in the hands of congress, we want to make it clear that only a federal-parliamentary form of government and not just parliamentary system can help the country cure its many ills.
Mindanao federalists deeply believe that Federal-parliamentary is not only the most viable and a part of the lasting answer to the Mindanao problem but also the system of government most suited for the Philippines in the 21st century.
A federal Philippines would end the concentration of power in a single national center. A federal system will grant the nation that chance because only a federal system can give real power, duly constituted power, to regional governments.
Equally, this structure of government would reinforce the Mindanao peace process, thus create a chance for peace and development to many conflict-affected areas peoples. The Lumad peoples have persistently expressed their own preference for self-determination, having seen that their absorption into the unitary political system has brought about the establishment and solidification of a threat to their very own existence and the integrity of their distinct cultures.
The Bangsamoro have their own distinct identity and vested interest that must be respected and cannot be satisfied by a continued subscription to political uniformity. With the Autonomous Region in Muslim Mindanao, the central government has allowed, albeit grudgingly, a departure from the stranglehold of central authority. The passage of the Local Government Code in 1991 further chips away powers from central authority; the local government units from the regional autonomy to the barangay are able to exercise greater self-determination.
From an economic perspective the positive effect of federalism to Mindanao is the creation of more sustainable and competitive regional socio-economic reforms. Through a federal system, regional accountabilities would create tailor-made programs for smaller territories that are more responsive to their constituencies, particularly the infrastructure, employment/jobs creation, health, education, and various other human development programs. The environment will allow an economy where small and micro businesses will become robust ; where investments laws are designed to meet the needs of the state as well as its desired investment sectors. The traders will have more access to government services and there will be lesser layers of bureaucracy.
A smaller constituency will also make measurement of political performance easier for the voters. Regional economic and social programs are more directly felt and assessed, empowering the constituents to act more rationally in elections.
In summary, Federalism is one system that may be able to effectively address the current and peculiar Mindanao problem, and correct the years of neglect by the central government. This unique island-region that harbors three peoples - Lumads, Moros and Christians - of diverse backgrounds, customs, culture, traditions, and social systems, very succinctly calls for unity in diversity.
Federalism is the key that will unlock and unleash the true potentials of Mindanao . Then Mindanao will truly be the land of promise !
The National Statistical Coordination Board (NSCB), in its 2000 poverty incidence report, showed all regions in Mindanao had over 30 percent of poverty incidence. At the provincial level, Sulu (ARMM) was described as the poorest province in the Philippines, with the highest poverty incidence level of 63.2 percent. Tawi-Tawi had 56.5 percent. Maguindanao; 55.1 percent; Lanao del Sur, 55 percent; Sultan Kudarat, 54.3 percent; and Camiguin, 53.1 percent.
In the 2003 poverty report, CARAGA with 47.3 percent, the Autonomous Region of Muslim Mindanao (ARMM) with 45.7 percent, and Western Mindanao (Region IX) with 44.1 percent, were still among the top 10 poorest provinces in the Philippines.
The long-standing Mindanao peace process involving the Government of the Republic of the Philippines (GRP), Moro Islamic Liberation Front (MILF), and the Moro National Liberation Front (MNLF), and the Mindanao peace movement, is also one major concern that needs to be addressed at the structural, deep social, cultural and religious levels.
These chronic diseases beleaguering the island provided a venue for Mindanaons to meet and discuss the possible solutions or steps to take in pushing for a progressive and peaceful Mindanao. And that’s when the movement for federalism came in place.
Today, the island have an overwhelming number of “matured federalist” compared to the other regions. The movement for a federal Philippines actually originated way back December 1999, when federal advocates from the Mindanao Congress of Development NGOS (MINCON) network assembled and created Lihok Pideral Mindanao (LPM). From then on, a series of regional organizing, federal trainors’ training throughout Mindanao, Federal constitution write-shops, and consultations with key leaders in Visayas and Luzon, created the Movement for a Federal Philippines (MFP). What was once a solely Mindanaon battle cry became now, a nationwide issue. Just this week, the Technical Assistance for the Development of Rural and Urban Poor (TACDRUP) hosted a forum for Federalism and Charter Change where discussions on federalism was brought to higher grounds.
The heightened interest on the Federal System has finally made federalism a national debatable issue the active participation of key Mindanawan leaders in the historical 2005 Consultative Constitutional Commission or ConCom. Although the fate of federalism is now in the hands of congress, we want to make it clear that only a federal-parliamentary form of government and not just parliamentary system can help the country cure its many ills.
Mindanao federalists deeply believe that Federal-parliamentary is not only the most viable and a part of the lasting answer to the Mindanao problem but also the system of government most suited for the Philippines in the 21st century.
A federal Philippines would end the concentration of power in a single national center. A federal system will grant the nation that chance because only a federal system can give real power, duly constituted power, to regional governments.
Equally, this structure of government would reinforce the Mindanao peace process, thus create a chance for peace and development to many conflict-affected areas peoples. The Lumad peoples have persistently expressed their own preference for self-determination, having seen that their absorption into the unitary political system has brought about the establishment and solidification of a threat to their very own existence and the integrity of their distinct cultures.
The Bangsamoro have their own distinct identity and vested interest that must be respected and cannot be satisfied by a continued subscription to political uniformity. With the Autonomous Region in Muslim Mindanao, the central government has allowed, albeit grudgingly, a departure from the stranglehold of central authority. The passage of the Local Government Code in 1991 further chips away powers from central authority; the local government units from the regional autonomy to the barangay are able to exercise greater self-determination.
From an economic perspective the positive effect of federalism to Mindanao is the creation of more sustainable and competitive regional socio-economic reforms. Through a federal system, regional accountabilities would create tailor-made programs for smaller territories that are more responsive to their constituencies, particularly the infrastructure, employment/jobs creation, health, education, and various other human development programs. The environment will allow an economy where small and micro businesses will become robust ; where investments laws are designed to meet the needs of the state as well as its desired investment sectors. The traders will have more access to government services and there will be lesser layers of bureaucracy.
A smaller constituency will also make measurement of political performance easier for the voters. Regional economic and social programs are more directly felt and assessed, empowering the constituents to act more rationally in elections.
In summary, Federalism is one system that may be able to effectively address the current and peculiar Mindanao problem, and correct the years of neglect by the central government. This unique island-region that harbors three peoples - Lumads, Moros and Christians - of diverse backgrounds, customs, culture, traditions, and social systems, very succinctly calls for unity in diversity.
Federalism is the key that will unlock and unleash the true potentials of Mindanao . Then Mindanao will truly be the land of promise !
The Mindanao Promise Can Be Delivered
I am a Mindanawon. In my opinion, the phrase “Mindanao: Land of Promise” is not a cliché. It is a fact. Let me tell you about Mindanao.
Mindanao is a beautiful island. Situated in the southernmost section of the Philippine archipelago, Mindanao is the second largest island in the Philippines. With a land area of 102,043 square kilometers, it occupies one-third of the Philippines' total land area and is larger than a number of Asian countries like Taiwan or Singapore.
Mindanao is strategically located within the East ASEAN region, almost equidistant to the eastern sections of Indonesia, Malaysia and Brunei Darussalam. This key geographic location underscores its potential to be a major transshipment point and center of trade in the region.
Natural Richness
Mindanao is rich in natural resources. A third of our land is planted with the country’s major crops – 100% of national production of cacao, 91%of pineapples, 90% of cacao and over 50% of coconut, coffee and corn. And of course – the pomelos, mangosteen , rambutans , lanzones plus our own salad bar of lettuce, tomatoes, carrots, cauliflowers, cabbages,etc. Our fruit basket of bananas account to US79.5 million of our exports; fresh pineapples at US 33.5 million and the tuna that we eat as sashimi at US 22.3 million.
So its no wonder that we contribute over 40 percent of the Philippines' food requirements and more than 30 percent to the national food trade
Mindanao is likewise endowed with rich mineral resources. Mindanao reportedly accounts for 80% of the national total deposits of copper, nickel, and gold. Currently, of the twenty-three major metallic projects operating in the Philippines, nine are in Mindanao (primarily in Surigao and Davao Oriental).Its metallic deposits include lead, zinc, ore, iron, copper, chromite, magnetite and gold. Gold mined in Mindanao accounts for nearly half of the national gold reserves. Its non-metallic mineral resources include marble, salt, sand, gravel, silica, clay, and limestone.
Cultural diversity and the island's natural beauty make Mindanao one of Asia's favored tourist destinations. White sand beaches, scenic volcanoes, vast orchid gardens, and various ethnic festivals are only some of its unique tourist attractions. Our tourism arrival was at 2 million from January-July 2005; hovering from 25%-25% increase in arrivals
Economy
Agriculture is the driving force behind Mindanao's economy. Close to a third of its land area is devoted to agriculture. More than one-third of the island's labor force is employed in the agriculture, fishery and forestry sectors. Mindanao accounts for over 40 percent of the Philippines' food requirements and contributes more than 30 percent to the national food trade. Mindanao's evenly distributed tropical climate makes it ideal for year-round crop production. If wisely harnessed, Mindanao's rich agricultural resources can serve as the Philippines' foundation for sustainable growth.
In the first quarter of 2005, Mindanao’s overall economic performance remained upbeat. Despite the uncontrollable hikes in oil and consumer prices, which brought down sectoral production from the rest of the country this period, Mindanao’s economy proved to withstand these pressures as exhibited by its key economic indicators. Notably significant indicators in trade and investments, and exports, among others, backed up the said performance.
The BOI and Phividec-registered investments reached P1.07 billion in 2005 posting a growth of 142% compared to its previous year’s performance; Exports sector in Mindanao exhibited a 13% growth rate; Cargo traffic growth reached 5.73% as well as a 1.99% increase in vessel traffic among the major ports in Mindanao; A stable labor force as employment rates reached 94.7% while keeping unemployment rate at 5.3%; and, Value of private building construction increased by 5.1% from P1.96 Billion in 1st Qtr. 2004 to P2.06Billion in 1st Qtr. 2005.
The banking sector likewise plays an important role in mobilizing the economic development of Mindanao. It has contributed in the development of many small and medium scale entrepreneurs, and serves as one of the safe places for deposits for the burgeoning income base of Mindanaons.
Over the last three years, the Mindanao banking sector has displayed modest increase in the number of banking offices. From the report generated by the Mindanao Economic Development Council (MEDCO) there was a 2% increase in the number of banks operating Mindanao, from 877 in 2003 to 896 in 2004.
People
The primary asset of Mindanao is its people. Based on the year 2000 census, 18.1 million people or a quarter of the Philippines' total population reside in Mindanao. The island is home to some 27 indigenous cultural communities, as well as migrants from Luzon and the Visayas. Rather than an impediment, the pluralism of cultures in Mindanao is a major source of strength, particularly in trading with its multi-cultural neighbor countries in East ASEAN.
Mindanao has a relatively young albeit highly literate population. One-third of its population is aged 15 to 19 with a literacy rate of 90%. The island also boasts a versatile, adaptive and English-speaking work force. Generally, Mindanaoans are known for their positive outlook, pleasant disposition and warm hospitality.
Opportunities and Development Imperatives
Due to its rich natural resources which surpass those of Luzon and the Visayas, economic opportunities in Mindanao abound. With the recent revitalization of BIMP-EAGA of which Mindanao is an organic part, economic activities in the island are seen to further expand. However, Mindanao's resources must be judiciously managed to ensure their sustainability.
In its drive towards economic development through global trade competitiveness, Mindanao's leaders must not lose sight of social issues such as poverty and peace and security. These likewise need to be urgently addressed to ensure the island's sustainable development. Economic development programs should be undertaken hand in hand with programs targeted at alleviating poverty and installing conditions that would lead to long-term peace.
Jobs and Employment
We have a total labor force of 8.2 million; 95% are working or gainfully employed while the remaining 5% or 430,000 are unemployed. These are the seasonal workers in the farms and the plantations. Due to our robust agriculture based economy, our employment rate is higher by two (2) percentage points compared to the country’s 92.7%. Majority of our workers are in the agriculture sector; followed by services and manufacturing. This is mainly due to the bright and upbeat economic performance of the economy despite the hikes in oil and energy. As to be expected, the resiliency of Mindanao withstood the pressures of the environment
Mindanao, the troubled island
Amidst its beauty, Mindanao is a complex island with its own peculiarities and intricacies. To understand Mindanao is to go back to history and look at the facets that contributed to what it is today. Over the years, Mindanao has seen the light of day and the dark of night, with hostilities stalking its shadows, and region-wide poverty incidence scarring its beauty.
For many years now, Mindanao is beset by numerous problems on peace, infrastructure development and poverty. It is actually an irony that an island that holds so much promise of prosperity is home to millions of poor families, especially in the provinces of ARMM, CARAGA and Northern Mindanao.
The National Statistical Coordination Board (NSCB), in its 2000 poverty incidence report, showed all regions in Mindanao had over 30 percent of poverty incidence. At the provincial level, Sulu (ARMM) was described as the poorest province in the Philippines, with the highest poverty incidence level of 63.2 percent. Tawi-Tawi had 56.5 percent. Maguindanao; 55.1 percent; Lanao del Sur, 55 percent; Sultan Kudarat, 54.3 percent; and Camiguin, 53.1 percent.
In the 2003 poverty report, CARAGA with 47.3 percent, the Autonomous Region of Muslim Mindanao (ARMM) with 45.7 percent, and Western Mindanao (Region IX) with 44.1 percent, were still among the top 10 poorest provinces in the Philippines.
Hope Lives
Precisely because of this scenario that Mindanao has attracted numerous international development projects, to aid it in economic, social and political development. Majority of the country’s multi-lateral donor agency-projects are based in Mindanao.
Among these are Growth with Equity in Mindanao (GEM), Microenterprise Access to Banking Services (MABS), Livelihood Enhancement and Peace (LEAP) Program, GOP-UNDP-EC Programme on Rehabilitating Internally Displaced Persons and Communities in Southern Philippines, ACT for Peace Programme, United Nations Industrial Development Organization (UNIDO) - Industrial Development Programme, to name a few.
The hope for a progressive and peaceful Mindanao is not lost. Many Mindanawon leaders and stakeholders are now working towards making that hope a reality. We have been promoting Mindanao’s economy through the BIMP EAGA, an economic cooperation scheme involving the four countries of Brunei Darussalam, Indonesia, Malaysia and the Philippines. We have been pushing for a Federalism form of Government, as the effective approach to address to Mindanao’s peculiar social set up.
The GRP-MILF peace process is still underway, but negotiation is getting better. The green-leaf bearing dove, the most common symbol for peace, continues to hover around, with no solid branch or agreement to rest on. Yet the fact that the negotiation continues is a proof that a peaceful Mindanao will not remain a dream, and federalism may yet be that hope.
It’s simply a matter of time before Mindanao delivers its promise in full.
Mindanao is a beautiful island. Situated in the southernmost section of the Philippine archipelago, Mindanao is the second largest island in the Philippines. With a land area of 102,043 square kilometers, it occupies one-third of the Philippines' total land area and is larger than a number of Asian countries like Taiwan or Singapore.
Mindanao is strategically located within the East ASEAN region, almost equidistant to the eastern sections of Indonesia, Malaysia and Brunei Darussalam. This key geographic location underscores its potential to be a major transshipment point and center of trade in the region.
Natural Richness
Mindanao is rich in natural resources. A third of our land is planted with the country’s major crops – 100% of national production of cacao, 91%of pineapples, 90% of cacao and over 50% of coconut, coffee and corn. And of course – the pomelos, mangosteen , rambutans , lanzones plus our own salad bar of lettuce, tomatoes, carrots, cauliflowers, cabbages,etc. Our fruit basket of bananas account to US79.5 million of our exports; fresh pineapples at US 33.5 million and the tuna that we eat as sashimi at US 22.3 million.
So its no wonder that we contribute over 40 percent of the Philippines' food requirements and more than 30 percent to the national food trade
Mindanao is likewise endowed with rich mineral resources. Mindanao reportedly accounts for 80% of the national total deposits of copper, nickel, and gold. Currently, of the twenty-three major metallic projects operating in the Philippines, nine are in Mindanao (primarily in Surigao and Davao Oriental).Its metallic deposits include lead, zinc, ore, iron, copper, chromite, magnetite and gold. Gold mined in Mindanao accounts for nearly half of the national gold reserves. Its non-metallic mineral resources include marble, salt, sand, gravel, silica, clay, and limestone.
Cultural diversity and the island's natural beauty make Mindanao one of Asia's favored tourist destinations. White sand beaches, scenic volcanoes, vast orchid gardens, and various ethnic festivals are only some of its unique tourist attractions. Our tourism arrival was at 2 million from January-July 2005; hovering from 25%-25% increase in arrivals
Economy
Agriculture is the driving force behind Mindanao's economy. Close to a third of its land area is devoted to agriculture. More than one-third of the island's labor force is employed in the agriculture, fishery and forestry sectors. Mindanao accounts for over 40 percent of the Philippines' food requirements and contributes more than 30 percent to the national food trade. Mindanao's evenly distributed tropical climate makes it ideal for year-round crop production. If wisely harnessed, Mindanao's rich agricultural resources can serve as the Philippines' foundation for sustainable growth.
In the first quarter of 2005, Mindanao’s overall economic performance remained upbeat. Despite the uncontrollable hikes in oil and consumer prices, which brought down sectoral production from the rest of the country this period, Mindanao’s economy proved to withstand these pressures as exhibited by its key economic indicators. Notably significant indicators in trade and investments, and exports, among others, backed up the said performance.
The BOI and Phividec-registered investments reached P1.07 billion in 2005 posting a growth of 142% compared to its previous year’s performance; Exports sector in Mindanao exhibited a 13% growth rate; Cargo traffic growth reached 5.73% as well as a 1.99% increase in vessel traffic among the major ports in Mindanao; A stable labor force as employment rates reached 94.7% while keeping unemployment rate at 5.3%; and, Value of private building construction increased by 5.1% from P1.96 Billion in 1st Qtr. 2004 to P2.06Billion in 1st Qtr. 2005.
The banking sector likewise plays an important role in mobilizing the economic development of Mindanao. It has contributed in the development of many small and medium scale entrepreneurs, and serves as one of the safe places for deposits for the burgeoning income base of Mindanaons.
Over the last three years, the Mindanao banking sector has displayed modest increase in the number of banking offices. From the report generated by the Mindanao Economic Development Council (MEDCO) there was a 2% increase in the number of banks operating Mindanao, from 877 in 2003 to 896 in 2004.
People
The primary asset of Mindanao is its people. Based on the year 2000 census, 18.1 million people or a quarter of the Philippines' total population reside in Mindanao. The island is home to some 27 indigenous cultural communities, as well as migrants from Luzon and the Visayas. Rather than an impediment, the pluralism of cultures in Mindanao is a major source of strength, particularly in trading with its multi-cultural neighbor countries in East ASEAN.
Mindanao has a relatively young albeit highly literate population. One-third of its population is aged 15 to 19 with a literacy rate of 90%. The island also boasts a versatile, adaptive and English-speaking work force. Generally, Mindanaoans are known for their positive outlook, pleasant disposition and warm hospitality.
Opportunities and Development Imperatives
Due to its rich natural resources which surpass those of Luzon and the Visayas, economic opportunities in Mindanao abound. With the recent revitalization of BIMP-EAGA of which Mindanao is an organic part, economic activities in the island are seen to further expand. However, Mindanao's resources must be judiciously managed to ensure their sustainability.
In its drive towards economic development through global trade competitiveness, Mindanao's leaders must not lose sight of social issues such as poverty and peace and security. These likewise need to be urgently addressed to ensure the island's sustainable development. Economic development programs should be undertaken hand in hand with programs targeted at alleviating poverty and installing conditions that would lead to long-term peace.
Jobs and Employment
We have a total labor force of 8.2 million; 95% are working or gainfully employed while the remaining 5% or 430,000 are unemployed. These are the seasonal workers in the farms and the plantations. Due to our robust agriculture based economy, our employment rate is higher by two (2) percentage points compared to the country’s 92.7%. Majority of our workers are in the agriculture sector; followed by services and manufacturing. This is mainly due to the bright and upbeat economic performance of the economy despite the hikes in oil and energy. As to be expected, the resiliency of Mindanao withstood the pressures of the environment
Mindanao, the troubled island
Amidst its beauty, Mindanao is a complex island with its own peculiarities and intricacies. To understand Mindanao is to go back to history and look at the facets that contributed to what it is today. Over the years, Mindanao has seen the light of day and the dark of night, with hostilities stalking its shadows, and region-wide poverty incidence scarring its beauty.
For many years now, Mindanao is beset by numerous problems on peace, infrastructure development and poverty. It is actually an irony that an island that holds so much promise of prosperity is home to millions of poor families, especially in the provinces of ARMM, CARAGA and Northern Mindanao.
The National Statistical Coordination Board (NSCB), in its 2000 poverty incidence report, showed all regions in Mindanao had over 30 percent of poverty incidence. At the provincial level, Sulu (ARMM) was described as the poorest province in the Philippines, with the highest poverty incidence level of 63.2 percent. Tawi-Tawi had 56.5 percent. Maguindanao; 55.1 percent; Lanao del Sur, 55 percent; Sultan Kudarat, 54.3 percent; and Camiguin, 53.1 percent.
In the 2003 poverty report, CARAGA with 47.3 percent, the Autonomous Region of Muslim Mindanao (ARMM) with 45.7 percent, and Western Mindanao (Region IX) with 44.1 percent, were still among the top 10 poorest provinces in the Philippines.
Hope Lives
Precisely because of this scenario that Mindanao has attracted numerous international development projects, to aid it in economic, social and political development. Majority of the country’s multi-lateral donor agency-projects are based in Mindanao.
Among these are Growth with Equity in Mindanao (GEM), Microenterprise Access to Banking Services (MABS), Livelihood Enhancement and Peace (LEAP) Program, GOP-UNDP-EC Programme on Rehabilitating Internally Displaced Persons and Communities in Southern Philippines, ACT for Peace Programme, United Nations Industrial Development Organization (UNIDO) - Industrial Development Programme, to name a few.
The hope for a progressive and peaceful Mindanao is not lost. Many Mindanawon leaders and stakeholders are now working towards making that hope a reality. We have been promoting Mindanao’s economy through the BIMP EAGA, an economic cooperation scheme involving the four countries of Brunei Darussalam, Indonesia, Malaysia and the Philippines. We have been pushing for a Federalism form of Government, as the effective approach to address to Mindanao’s peculiar social set up.
The GRP-MILF peace process is still underway, but negotiation is getting better. The green-leaf bearing dove, the most common symbol for peace, continues to hover around, with no solid branch or agreement to rest on. Yet the fact that the negotiation continues is a proof that a peaceful Mindanao will not remain a dream, and federalism may yet be that hope.
It’s simply a matter of time before Mindanao delivers its promise in full.
Towards a Globalized Work Force
Knowledge and skills have become very important tools to ensure the competitiveness of our workforce, in the wake of globalisation and technological advances.
The traditional worker simply needs basic skills: reading, writing, arithmetic skills. The “global” worker however, must possess a range of skills such as creativity, adaptability, decision making and interactive skills. The use of information technology and evolution of the global trade and market have greatly altered job content and skills needs. Good jobs nowadays demand new and sophisticated work skills.
The move to e-commerce and e-business brought to rise a new breed of workers-- a combination of one who is interactive, business-oriented, and can understand the business process. E-business has also led to the creation of new types of jobs we have today such as web development, data transcription, telemarketing.
Yet young graduates from our technical vocational schools and workers trying to penetrate the labor market have not been able to take advantage of the availability of such good jobs simply because they do not possess the type of skills demanded by these industries.
Take the contact center industry as an example. Work opportunities abound, but there is an increasing realization from the industry of the difficulty in hiring qualified workers. In the recent Cyberservices Workforce Forecast (Based on Industry Reports for 2004 – 2005 sourced from CICT, BOI, BPAP and member organizations) it was determined that there is a need for 179,206 call center agents in the year 2006. This is expected to increase to 259,800 in 2007, a 45% increase, and projected to reach 506,500 in 2010. In the medical transcription industry, the workforce demand in 2006 is 13,800 employees and is expected to increase to 24,800 in 2007, an increase of 80%. However it seems unsure if this requirement can be filled up as fast as the rate the industry is growing. This is a real challenge to us in Mindanao. It is very important that we have to aggressively improve our workforce or lest find ourselves lagging behind in the fast developing ICT sector. Today, there are only three (3) call centers in Mindanao – one in Cagayan de Oro and two(2) in Davao City.
The Technical Vocational Education Training (TVET) sector however performed well in terms of industry absorption. This was reflected in the Impact Assessment on the TVET Graduates (CY 1999) wherein the average employment rate of Mindanao TVET graduates was 61%. But with the high rate of obsolescence these days, we still need to improve our new graduates' chances of landing a job by improving the quality of education and providing them with skills being demanded by today's industries.
In the face of new skills requirements and expectations from our workforce, TVET institutions that train these workers have to adapt as well. The pressing need for workers with higher level skills demands new approaches and strategies in training and educating workers to enable them to stay competitive and advance their careers.
This will be the focus of the discussions in the 2006 Mindanao TVET HRSD (Human Resources and Skills Development) Conference and Exhibits. The Mindanao framework for education and job training that meets the needs of today's new and growing industries will be the main point of discussion in the largest gathering of TVET school owners ,administrators and business and labor group. On July 4 – 6, 2006, some 300 participants coming from the TVET sector, composed of government and private representatives, industry, academe, labor, will gather together at the Villa Paraisao Apartelle, Mambajao, Camiguin to exchange ideas and information on policies, emerging trends, career opportunities, and critical issues affecting TVET in Mindanao .
The 2006 Mindanao TVET HRSD Conference and Exhibits will provide an overview of the labor market and latest skills trends, determine regional constraints with regards to jobs generation and capability for small enterprise development, identify interventions to provide information and assistance in the areas of job search and marketing, promote the establishment of links between business and other agencies to assist schemes aimed at implementation of small scale community enterprise projects and jobs creation.
Aside from the conference, other highlights of the event are the: Camiguin Trade Exhibit – a showcase of products and services that the province is known for; Jobs Fair – a venue to provide employment facilitation assistance and opportunities to the reach of the unemployed, this is open to all fresh graduates, skilled and professional workers seeking advancement; Entrepreneurs' Fair – a venue for prospective entrepreneurs to find business opportunities particularly franchises.
Our government host is the Technical Education and Skills Development Authority (TESDA) Region X Reg. Dir. Mr. Silvano Maranga and Gov. Romualdo of Camiguin .The private sector host is the Northern Mindanao Techvoc Schools Association led by Dr. Irene Antonio of Valencia College in Bukidnon . Technical support to the event is being provided by TESDA XI Reg. Dir. Mr. Gaspar Gayona.
The Mindanao TVET Association will focus its efforts this year in adding a new dimension to its initiatives which is developing a “multi skilled” workforce and improved opportunities for jobs generation and capacities for enterprise development.
The traditional worker simply needs basic skills: reading, writing, arithmetic skills. The “global” worker however, must possess a range of skills such as creativity, adaptability, decision making and interactive skills. The use of information technology and evolution of the global trade and market have greatly altered job content and skills needs. Good jobs nowadays demand new and sophisticated work skills.
The move to e-commerce and e-business brought to rise a new breed of workers-- a combination of one who is interactive, business-oriented, and can understand the business process. E-business has also led to the creation of new types of jobs we have today such as web development, data transcription, telemarketing.
Yet young graduates from our technical vocational schools and workers trying to penetrate the labor market have not been able to take advantage of the availability of such good jobs simply because they do not possess the type of skills demanded by these industries.
Take the contact center industry as an example. Work opportunities abound, but there is an increasing realization from the industry of the difficulty in hiring qualified workers. In the recent Cyberservices Workforce Forecast (Based on Industry Reports for 2004 – 2005 sourced from CICT, BOI, BPAP and member organizations) it was determined that there is a need for 179,206 call center agents in the year 2006. This is expected to increase to 259,800 in 2007, a 45% increase, and projected to reach 506,500 in 2010. In the medical transcription industry, the workforce demand in 2006 is 13,800 employees and is expected to increase to 24,800 in 2007, an increase of 80%. However it seems unsure if this requirement can be filled up as fast as the rate the industry is growing. This is a real challenge to us in Mindanao. It is very important that we have to aggressively improve our workforce or lest find ourselves lagging behind in the fast developing ICT sector. Today, there are only three (3) call centers in Mindanao – one in Cagayan de Oro and two(2) in Davao City.
The Technical Vocational Education Training (TVET) sector however performed well in terms of industry absorption. This was reflected in the Impact Assessment on the TVET Graduates (CY 1999) wherein the average employment rate of Mindanao TVET graduates was 61%. But with the high rate of obsolescence these days, we still need to improve our new graduates' chances of landing a job by improving the quality of education and providing them with skills being demanded by today's industries.
In the face of new skills requirements and expectations from our workforce, TVET institutions that train these workers have to adapt as well. The pressing need for workers with higher level skills demands new approaches and strategies in training and educating workers to enable them to stay competitive and advance their careers.
This will be the focus of the discussions in the 2006 Mindanao TVET HRSD (Human Resources and Skills Development) Conference and Exhibits. The Mindanao framework for education and job training that meets the needs of today's new and growing industries will be the main point of discussion in the largest gathering of TVET school owners ,administrators and business and labor group. On July 4 – 6, 2006, some 300 participants coming from the TVET sector, composed of government and private representatives, industry, academe, labor, will gather together at the Villa Paraisao Apartelle, Mambajao, Camiguin to exchange ideas and information on policies, emerging trends, career opportunities, and critical issues affecting TVET in Mindanao .
The 2006 Mindanao TVET HRSD Conference and Exhibits will provide an overview of the labor market and latest skills trends, determine regional constraints with regards to jobs generation and capability for small enterprise development, identify interventions to provide information and assistance in the areas of job search and marketing, promote the establishment of links between business and other agencies to assist schemes aimed at implementation of small scale community enterprise projects and jobs creation.
Aside from the conference, other highlights of the event are the: Camiguin Trade Exhibit – a showcase of products and services that the province is known for; Jobs Fair – a venue to provide employment facilitation assistance and opportunities to the reach of the unemployed, this is open to all fresh graduates, skilled and professional workers seeking advancement; Entrepreneurs' Fair – a venue for prospective entrepreneurs to find business opportunities particularly franchises.
Our government host is the Technical Education and Skills Development Authority (TESDA) Region X Reg. Dir. Mr. Silvano Maranga and Gov. Romualdo of Camiguin .The private sector host is the Northern Mindanao Techvoc Schools Association led by Dr. Irene Antonio of Valencia College in Bukidnon . Technical support to the event is being provided by TESDA XI Reg. Dir. Mr. Gaspar Gayona.
The Mindanao TVET Association will focus its efforts this year in adding a new dimension to its initiatives which is developing a “multi skilled” workforce and improved opportunities for jobs generation and capacities for enterprise development.
Task Force Davao - Great for Business
We see them on the streets of Davao, carrying guns and ammunitions, as if quietly scouting for danger. We see them on checkpoints, securing the entrance and exits of the city. We see them on seaports and airports, with their bomb-sniffing K9 dogs. I am talking about the Task Force Davao 4th Infantry Division of the Armed Forces of the Philippines.
I remembered that the Task Force Davao was organized after the bombings that hit Davao International Airport on 04 March 2003 and Sasa Wharf on 02 April 2003. I heard of them when I was part of the government created “Maniwang Commission” that was asked by President Arroyo to investigate the twin bombings of the city. I had the perception then that this task force , as the name implies, will be short-lived.
The unit was officially organized on 16 April 2003 to combat terrorism but on 01 December 2003, it was further tasked to undertake counter-insurgency operations. It operates in three major cities namely, Davao City, Panabo City and Island Garden City Of Samal (IGACOS). In total, TFD covers four municipalities and 283 barangays, in a land Area of 6,240 Sq K with around 1.5 M populations.
Its mission is to conduct internal security operations within its Area of Responsibility in order to establish a physically and psychologically secured environment conducive to peace and development. I particularly support the “psychologically secured” mission- seeing them even at late evenings makes one feel safe and sound while walking the streets of Davao. One night, my husband and I were having coffee in one of those convenience stores located within a gasoline station when I saw one group of TFD. Knowing how hard and tiring their work must be ; we offered to buy them coffee and midnight snacks- but they politely refused this. The more I admired them for that ! A far cry from the other soldiers that I had encountered.
Unknown to many people though, the Task Force Davao has operational activities that defy the war strategies of many army generals here and abroad. They are espousing what is called the Mass Base Operation.
When Colonel Eduardo D. Del Rosario FA (GSC) PA, assumed command of Task Force Davao (TFD) on 16 July 2004, he immediately conceptualized the organization of about 70,000 Muslims in Davao City. His intention was to organize our Muslim brothers so they can play an active role in the campaign against insurgency and terrorism to pave the way for sustainable development.
This endeavor was realized when Lieutenant Colonel Yusop A. Jimlani (INF) PA, a Tuasog Muslim Officer, was assigned to TFD as Deputy Commander on 16 August 2004. He was then tasked to spearhead the project’s implementation by coordinating with respected Muslim political as well as spiritual leaders to rationalize the necessity of leading their fellow Muslims. Likewise, Mayor Rody gave his full support knowing the critical role of the group in his campaign for peace and development.
On 30 September 2004, a symposium on Terrorism and other related topics was held at Grand Men Seng Hotel, Davao City. Various Muslim sector representatives attended the occasion, from the Religious, Women, Youth, Business, Balik Islam, former MNLF leaders, political groups and the Muslim elites in Davao City. The activity culminated with the induction of the elected officers of the newly formed group called the United Muslim Council for Peace and Development (UMCPD).
To support the peace initiatives of the group, TFD has hosted relief goods distribution to Muslim communities in the city, and has helped in the restructuring of the Madrasah School in Ecoland and the Badjao Mosque in the Boulevard area. A medical mission to different Muslim communities was also done, and to even enhance communication and relationships of non-Muslim Soldiers and Muslim public in the region, TFD published the Soldier’s Handbook to Understand Muslims last 2005. The handbook is now a required read for every Filipino soldier, stationed in Mindanao, or not.
I am glad that they have made public information a major thrust of the TFD. Since January 2005, it was able to gather a total of 4,003 audience from schools, hotels / restaurant staff, cooperatives, private businesses, barangays / municipalities and LGUs.
With the TFD, we can all confidently continue on doing business , inviting investments and creating more jobs. Personally , I view the TFD more as allies in peace keeping and partners in business.
I remembered that the Task Force Davao was organized after the bombings that hit Davao International Airport on 04 March 2003 and Sasa Wharf on 02 April 2003. I heard of them when I was part of the government created “Maniwang Commission” that was asked by President Arroyo to investigate the twin bombings of the city. I had the perception then that this task force , as the name implies, will be short-lived.
The unit was officially organized on 16 April 2003 to combat terrorism but on 01 December 2003, it was further tasked to undertake counter-insurgency operations. It operates in three major cities namely, Davao City, Panabo City and Island Garden City Of Samal (IGACOS). In total, TFD covers four municipalities and 283 barangays, in a land Area of 6,240 Sq K with around 1.5 M populations.
Its mission is to conduct internal security operations within its Area of Responsibility in order to establish a physically and psychologically secured environment conducive to peace and development. I particularly support the “psychologically secured” mission- seeing them even at late evenings makes one feel safe and sound while walking the streets of Davao. One night, my husband and I were having coffee in one of those convenience stores located within a gasoline station when I saw one group of TFD. Knowing how hard and tiring their work must be ; we offered to buy them coffee and midnight snacks- but they politely refused this. The more I admired them for that ! A far cry from the other soldiers that I had encountered.
Unknown to many people though, the Task Force Davao has operational activities that defy the war strategies of many army generals here and abroad. They are espousing what is called the Mass Base Operation.
When Colonel Eduardo D. Del Rosario FA (GSC) PA, assumed command of Task Force Davao (TFD) on 16 July 2004, he immediately conceptualized the organization of about 70,000 Muslims in Davao City. His intention was to organize our Muslim brothers so they can play an active role in the campaign against insurgency and terrorism to pave the way for sustainable development.
This endeavor was realized when Lieutenant Colonel Yusop A. Jimlani (INF) PA, a Tuasog Muslim Officer, was assigned to TFD as Deputy Commander on 16 August 2004. He was then tasked to spearhead the project’s implementation by coordinating with respected Muslim political as well as spiritual leaders to rationalize the necessity of leading their fellow Muslims. Likewise, Mayor Rody gave his full support knowing the critical role of the group in his campaign for peace and development.
On 30 September 2004, a symposium on Terrorism and other related topics was held at Grand Men Seng Hotel, Davao City. Various Muslim sector representatives attended the occasion, from the Religious, Women, Youth, Business, Balik Islam, former MNLF leaders, political groups and the Muslim elites in Davao City. The activity culminated with the induction of the elected officers of the newly formed group called the United Muslim Council for Peace and Development (UMCPD).
To support the peace initiatives of the group, TFD has hosted relief goods distribution to Muslim communities in the city, and has helped in the restructuring of the Madrasah School in Ecoland and the Badjao Mosque in the Boulevard area. A medical mission to different Muslim communities was also done, and to even enhance communication and relationships of non-Muslim Soldiers and Muslim public in the region, TFD published the Soldier’s Handbook to Understand Muslims last 2005. The handbook is now a required read for every Filipino soldier, stationed in Mindanao, or not.
I am glad that they have made public information a major thrust of the TFD. Since January 2005, it was able to gather a total of 4,003 audience from schools, hotels / restaurant staff, cooperatives, private businesses, barangays / municipalities and LGUs.
With the TFD, we can all confidently continue on doing business , inviting investments and creating more jobs. Personally , I view the TFD more as allies in peace keeping and partners in business.
Dirty Government - Dirty Air
The Private Emission Test Centers Owners’ Association (PETCOA) aptly described the prevailing situation today in its position paper submitted to the Office of Congressman Jacinto Paras, Chair of the Committee on Transportation and Communication and that is “ It is a ruinous or cut throat competition where everyone tries to cut each other’s throat and suck their own blood just to survive in a supposedly fledgling business or industry “.
Government is partly to blame for this kind of environment which had led to the degradation of the integrity of the test. The Department of Trade and Industry had been mouthing “ free trade and competition” as a rationale for opening the floodgates that allowed each and everyone running to get a piece of the business . DTI had failed to realize that the emission business is not like a “sari-sari store “ or the usual “retail /service business” where “more “ is better for the consumers – you get better price and better service so to speak. DTI overlooked the fact that unlike any retail or service business where the market is finite and the need for a product or service may constantly arise from time to time ; the PETC business have a fixed number of clients in given area and will only avail of the service once a year. So therefore , if an area have only 3,000 vehicles in a year – one can forecast that this will be the only client base . If there will be 3-4 PETC’s in that given area – one will have to fight tooth and nail to be able to test the number of vehicles which will make the operations profitable.
Inspite of the fact that DTI issued a memorandum granting “moratorium” in areas where they believed that there is already a saturation of PETC’s. Unfortunately, as usual – the government’s intervention was already too late.
PETCOA’ s position paper further stated that “Prudence could had been resorted to by the concerned government agencies namely- DTI and LTO regarding the processing and approval of PETC applications thereby invoking a cautious planning and corresponding regulation of an industry that is fragile and subject to possible manipulation by business themselves or by a few inept and corrupt government officials”.
There was also the tremendous pressure coming from the different powerful personalities in the government bureaucracy for the granting of PETC accreditation and permits to operate to their own relatives and friends.
Today, there are many PETC’s operating which are owned by these powerful people in the bureaucracy. This is not really surprising , is it ?
The apparent deregulatory stance of government opened the floodgates to the proliferation of more than 500 PETCs’ nationwide and is now creating havoc to the desired order and fair competition in a public service oriented economic activity. So there are reports of various trade malpractices such as non appearance of vehicles ( vehicles don’t have to physically undergo the emission test process ; but are given certificate of emission compliance in exchange for bribe money ); counterfeiting and faking of forms and fixing or tampering of emission process.
Until today, there is still a significant number of LTO Offices in Mindanao that issues the registration of vehicles without the certificate of emission testing. When asked why ; they would candidly respond that they “have a quota to meet “. I did not quite understand this before until I read in one of the newspaper about an award that LTO ASEC Lontoc gave to LTO offices who met their revenue quotas. I hope that ASEC Lontoc will also look into other conditions that led to the attainment of the quota – that good governance must also be present ,
The issue on rationalization and putting to order the operations of the PETCs’ cannot be over emphasized . It must always be a shared responsibility between the concerned agency and the stakeholders.
The officers and members of the PETCOA , as an organized group, continues on policing its own ranks and will continue to pursue such functions over its members. Mr. Bernard Chang, the Chair of the association, has always been in the forefront of this “clean air advocacy “ and has been actively meeting government partners in this endeavor. But sometimes, I could not help but notice the feeling of great despair, disappointment and sometimes even anger because of the lack of response or interest of government to “ clean up the system”. I could understand his frustration because I had seen this in many members of the privates sector who have just simply given up hope of working with the bureaucracy.
The quality of air that we have in our streets had not significantly improved and our health problems due to deteriorating air quality had worsen. We call on government to be “kinder” to all of us and ultimately give us the “ clean air “ that we all are hoping for – perhaps this is the only luxury in life that we can get for free today .
Government is partly to blame for this kind of environment which had led to the degradation of the integrity of the test. The Department of Trade and Industry had been mouthing “ free trade and competition” as a rationale for opening the floodgates that allowed each and everyone running to get a piece of the business . DTI had failed to realize that the emission business is not like a “sari-sari store “ or the usual “retail /service business” where “more “ is better for the consumers – you get better price and better service so to speak. DTI overlooked the fact that unlike any retail or service business where the market is finite and the need for a product or service may constantly arise from time to time ; the PETC business have a fixed number of clients in given area and will only avail of the service once a year. So therefore , if an area have only 3,000 vehicles in a year – one can forecast that this will be the only client base . If there will be 3-4 PETC’s in that given area – one will have to fight tooth and nail to be able to test the number of vehicles which will make the operations profitable.
Inspite of the fact that DTI issued a memorandum granting “moratorium” in areas where they believed that there is already a saturation of PETC’s. Unfortunately, as usual – the government’s intervention was already too late.
PETCOA’ s position paper further stated that “Prudence could had been resorted to by the concerned government agencies namely- DTI and LTO regarding the processing and approval of PETC applications thereby invoking a cautious planning and corresponding regulation of an industry that is fragile and subject to possible manipulation by business themselves or by a few inept and corrupt government officials”.
There was also the tremendous pressure coming from the different powerful personalities in the government bureaucracy for the granting of PETC accreditation and permits to operate to their own relatives and friends.
Today, there are many PETC’s operating which are owned by these powerful people in the bureaucracy. This is not really surprising , is it ?
The apparent deregulatory stance of government opened the floodgates to the proliferation of more than 500 PETCs’ nationwide and is now creating havoc to the desired order and fair competition in a public service oriented economic activity. So there are reports of various trade malpractices such as non appearance of vehicles ( vehicles don’t have to physically undergo the emission test process ; but are given certificate of emission compliance in exchange for bribe money ); counterfeiting and faking of forms and fixing or tampering of emission process.
Until today, there is still a significant number of LTO Offices in Mindanao that issues the registration of vehicles without the certificate of emission testing. When asked why ; they would candidly respond that they “have a quota to meet “. I did not quite understand this before until I read in one of the newspaper about an award that LTO ASEC Lontoc gave to LTO offices who met their revenue quotas. I hope that ASEC Lontoc will also look into other conditions that led to the attainment of the quota – that good governance must also be present ,
The issue on rationalization and putting to order the operations of the PETCs’ cannot be over emphasized . It must always be a shared responsibility between the concerned agency and the stakeholders.
The officers and members of the PETCOA , as an organized group, continues on policing its own ranks and will continue to pursue such functions over its members. Mr. Bernard Chang, the Chair of the association, has always been in the forefront of this “clean air advocacy “ and has been actively meeting government partners in this endeavor. But sometimes, I could not help but notice the feeling of great despair, disappointment and sometimes even anger because of the lack of response or interest of government to “ clean up the system”. I could understand his frustration because I had seen this in many members of the privates sector who have just simply given up hope of working with the bureaucracy.
The quality of air that we have in our streets had not significantly improved and our health problems due to deteriorating air quality had worsen. We call on government to be “kinder” to all of us and ultimately give us the “ clean air “ that we all are hoping for – perhaps this is the only luxury in life that we can get for free today .
BETTER VALUE FOR NUMBERS
During the inception of the process or procedures involved in the emission testing of motor vehicles, I could very well recall that the importance of what we normally refer to as “IT” or information technology component was repeated over and over again . This means that the results of the emission testing done by all the private emission test centers (PETC’s) nationwide will be uploaded to a central databank. The Land Transportation Office (LTO) and other concerned departments will have full access to this very valuable data.
In my many years of participation in advocacy work, I had developed a “love affair” with numbers. Simply because numbers are numbers and you have very little ground for quarrel about that – and numbers are significant tools in any advocacy endeavor because of the many interesting stories behind it. And the stories are varied – the degree of their value will largely depend on how we use and interpret them.
My friend, USEC Ricky Alfonso of the Dept. of Transportation and Communication used this PETC database into good use- analysis of the performance of the different emission centers and the tracking of anomalous testing transactions .
But there are more relevant stories that these numbers can tell. The LTO under ASEC Annelli Lontoc, can use this data to punish and call the attention of some LTO District officers who , until today, refused to respect the law. This database when compared with the actual vehicle registration transactions of LTO will tell ASEC Lontoc the sad story that there are still many of the offices under her, especially in less urbanized cities and provinces that thinks they are “above the law’. These are the LTO officers that allows their offices to release registration certificates even without the mandatory emission testing. I am saying this because many of the provinces and smaller cities in Mindanao are so far , far away from the “LTO of Imperial Manila “; and the numbers should be a cause of worry and alarm to all of us. Some LTO people think that they can afford to be complacent about all of these “street pollution” concerns because this is not really a serious problem in their area since the air is not as dirty as Manila due to the presence of fewer number of motor vehicles and large tracts of land. Well, this may be true for now - but, if we don’t watch out – we will become like Manila soon!
Today, increasing levels of air pollution are threatening the well-being of city dwellers, and imposing not just a direct economic cost by impacting human health but also threatening long term productivity investment.
Davao City has been classified as one of the TSP (Total Suspended Particulates) hot spots in the Philippines, having a high concentration of air pollutants in its environment.
According to the World Bank report , the estimated damage to human health in terms of impact on excess deaths, chronic bronchitis, respiratory symptoms and cost of exposure to air pollution showed that Davao City is the 2nd highest among four cities at USD 85million (Metro Manila USD392M; Cebu USD16M; Baguio USD9M).
The 2002 National Air Quality Status Report would show that in five of the seven years previous years,locations outside the Metro Manila exceeded or equaled the highest Metro Manila annual readings – Davao and Tagum in 1996 and Davao again in 1999.
This should merit our serious attention as it shows how air pollution threatens the well-being of Mindanawans.
Transport is a major source of air pollution. In 2003 there were 4.3 million registered vehicles in the country- and it keeps on increasing every year. 36% are utility vehicles ; 17% cars; 6% trucks; 1% buses; 1% trailers ; 36% motorcycles and tricycles . Of all vehicles, 70% are gasoline powered and the rest are diesel. Most of high mileage PUV’s are diesel powered and they emit a significant amount of fine particles of emission that contributes to pollution. PUV’s outnumber cars by a ratio of 2:1 .
In Mindanao , there were 5609,817 registered vehicles in 2003 and 625,047 in 2004; an annual growth rate of 11.45 %. The population of Mindanao was projected to be 20,289 M in 2005 ; growing at 2.11% annually.
Interestingly, the LTO compliance ratings when it comes to mandatory emission testing as a prerequisite to vehicle registration is a low of 40% to a high of 95%. A law is a law- so compliance must be 100% , don’t you think so? In the spirit of transparency and accountability, ASEC Lontoc should make the findings public and have it published in newspapers so that the general public will know whether LTO is doing its job well and run after the erring LTO Officers to perform their work well.
In 2001, the Metro Manila Development Authority (MMDA) conducted road side inspections and apprehensions of smoke belchers. 8,470 uility vehicles were apprehended, 4256 buses, 1334 jeepneys. Guess what? 95.6% of the utility vehicles, 91.8% buses and 98.1 % jeepneys failed !
Aside from strict compliance of the emission testing of motor vehicles; there are other equally important support mechanisms to ensure cleaner air for us in Mindanao . One of this is a locally initiated road side inspection and apprehension of smoke belchers by the LGU, LTO DOTC , media and NGO similar to what MMDA did . This, I believe, will help clean the air in our major thoroughfares.
The database found in the LTO databank should also be utilize to examine the performance of the LTO operated MVIS (Motor Vehicle Inspection System) – the entity that conducts emission testing of public utility vehicles (PUV’s). This numbers will prove to us that the MVIS is really doing a good or a lousy job of testing the jeepneys, taxis and tricycles !
Using these numbers might be our only hope to reward the good and to punish the bad . Political will is a matter of choice – it can be used for the good of the greater majority or on the other hand- for personal survival .
In my many years of participation in advocacy work, I had developed a “love affair” with numbers. Simply because numbers are numbers and you have very little ground for quarrel about that – and numbers are significant tools in any advocacy endeavor because of the many interesting stories behind it. And the stories are varied – the degree of their value will largely depend on how we use and interpret them.
My friend, USEC Ricky Alfonso of the Dept. of Transportation and Communication used this PETC database into good use- analysis of the performance of the different emission centers and the tracking of anomalous testing transactions .
But there are more relevant stories that these numbers can tell. The LTO under ASEC Annelli Lontoc, can use this data to punish and call the attention of some LTO District officers who , until today, refused to respect the law. This database when compared with the actual vehicle registration transactions of LTO will tell ASEC Lontoc the sad story that there are still many of the offices under her, especially in less urbanized cities and provinces that thinks they are “above the law’. These are the LTO officers that allows their offices to release registration certificates even without the mandatory emission testing. I am saying this because many of the provinces and smaller cities in Mindanao are so far , far away from the “LTO of Imperial Manila “; and the numbers should be a cause of worry and alarm to all of us. Some LTO people think that they can afford to be complacent about all of these “street pollution” concerns because this is not really a serious problem in their area since the air is not as dirty as Manila due to the presence of fewer number of motor vehicles and large tracts of land. Well, this may be true for now - but, if we don’t watch out – we will become like Manila soon!
Today, increasing levels of air pollution are threatening the well-being of city dwellers, and imposing not just a direct economic cost by impacting human health but also threatening long term productivity investment.
Davao City has been classified as one of the TSP (Total Suspended Particulates) hot spots in the Philippines, having a high concentration of air pollutants in its environment.
According to the World Bank report , the estimated damage to human health in terms of impact on excess deaths, chronic bronchitis, respiratory symptoms and cost of exposure to air pollution showed that Davao City is the 2nd highest among four cities at USD 85million (Metro Manila USD392M; Cebu USD16M; Baguio USD9M).
The 2002 National Air Quality Status Report would show that in five of the seven years previous years,locations outside the Metro Manila exceeded or equaled the highest Metro Manila annual readings – Davao and Tagum in 1996 and Davao again in 1999.
This should merit our serious attention as it shows how air pollution threatens the well-being of Mindanawans.
Transport is a major source of air pollution. In 2003 there were 4.3 million registered vehicles in the country- and it keeps on increasing every year. 36% are utility vehicles ; 17% cars; 6% trucks; 1% buses; 1% trailers ; 36% motorcycles and tricycles . Of all vehicles, 70% are gasoline powered and the rest are diesel. Most of high mileage PUV’s are diesel powered and they emit a significant amount of fine particles of emission that contributes to pollution. PUV’s outnumber cars by a ratio of 2:1 .
In Mindanao , there were 5609,817 registered vehicles in 2003 and 625,047 in 2004; an annual growth rate of 11.45 %. The population of Mindanao was projected to be 20,289 M in 2005 ; growing at 2.11% annually.
Interestingly, the LTO compliance ratings when it comes to mandatory emission testing as a prerequisite to vehicle registration is a low of 40% to a high of 95%. A law is a law- so compliance must be 100% , don’t you think so? In the spirit of transparency and accountability, ASEC Lontoc should make the findings public and have it published in newspapers so that the general public will know whether LTO is doing its job well and run after the erring LTO Officers to perform their work well.
In 2001, the Metro Manila Development Authority (MMDA) conducted road side inspections and apprehensions of smoke belchers. 8,470 uility vehicles were apprehended, 4256 buses, 1334 jeepneys. Guess what? 95.6% of the utility vehicles, 91.8% buses and 98.1 % jeepneys failed !
Aside from strict compliance of the emission testing of motor vehicles; there are other equally important support mechanisms to ensure cleaner air for us in Mindanao . One of this is a locally initiated road side inspection and apprehension of smoke belchers by the LGU, LTO DOTC , media and NGO similar to what MMDA did . This, I believe, will help clean the air in our major thoroughfares.
The database found in the LTO databank should also be utilize to examine the performance of the LTO operated MVIS (Motor Vehicle Inspection System) – the entity that conducts emission testing of public utility vehicles (PUV’s). This numbers will prove to us that the MVIS is really doing a good or a lousy job of testing the jeepneys, taxis and tricycles !
Using these numbers might be our only hope to reward the good and to punish the bad . Political will is a matter of choice – it can be used for the good of the greater majority or on the other hand- for personal survival .
Tuesday, May 02, 2006
FEDERAL MINDANAO; Land of Promise - Land of Jobs
(1st of 2 parts)
The Promise of Mindanao
Mindanao is rich in natural resources. A third of our land is planted with the country’s major crops – 100%of national production of cacao, 91%of pineapples, 90% of cacao and over 50% of coconut , coffee and corn. And of course – the pomelos, mangosteen , rambutans , lanzones plus our own salad bar of lettuce, tomatoes, carrots, cauliflowers, cabbages,etc. And our fruit basket of bananas accounting to US79.5 million of our exports; fresh pineapples at US 33.5 million and the tuna that we eat as sashimi at US 22.3 million.
So its no wonder that we contribute over 40 percent of the Philippines' food requirements and more than 30 percent to the national food trade.
Mindanao is the second largest island in the Philippines. With a land area of 102,043 square kilometers, it occupies one-third of the Philippines' total land area and is larger than a number of Asian countries like Taiwan or Singapore.
We have rich mineral resources and one will find nearly half of the national gold reserves in the island. Our metallic deposits includes lead, zinc, ore, iron, copper, chromite, magnetite and gold and non-metallic mineral resources include marble, salt, sand, gravel, silica, clay, and limestone
Cultural diversity and the island's natural beauty make Mindanao one of Asia's favored tourist destinations. Recently, we had weekly flights from Davao to the territory of Palau. The white sand beaches, scenic volcanoes, vast orchid gardens, and various ethnic festivals are only some of our unique tourist attractions. Our tourism arrival was at 2 million from January-July 2005; hovering from 25%-25% increase in arrivals
Businesses and Investments
The investments Phividec Industrial Authority in Cagayan de Oro City reached P1.07 billion in the first four months of the year, up by 142%, from P0.44 billion in the same period last year. Twelve projects had been approved by both the Board of Investments and PIA and is expected to result to 1,094 jobs and that’s a 45% increase from the 754 opportunities last year.
Foreign investors equity infusion reached a 50-fold increase to P 667 million from P 13 million , while Filipino businessmen rose 11% to P 406 million from P 365.
Most of the approved investments came from various sectors such livestock/poultry & feeds; processed foods & beverages; refrigeration/storage services; motor vehicle parts & components manufacturing; and, iron ore manufacturing.
The iron ore manufacturing sector got the biggest share of approved projects this year with 49% share or P520 million-worth of investments from the Japanese-owned Philippine Sinter Corporation located at Phividec in Villanueva, Misamis Oriental. This sector likewise, got the bulk of foreign equity-investments this year.
Investments in processed foods & beverages’ sector remained strong as it grew by 20% to P256 million-worth of investments from January to April this year from almost P213 million-worth of investments on the same period last year.
The livestock, poultry & feeds sector has P203 million-worth of investments from last year’s P69 million-worth of investments. Refrigeration services sector accounts for 5% and motor vehicle parts accounts for 3% share from the total investments this year.
Jobs and Employment in the Island Region
We have a total labor force of 8.2 million; 95% are working or gainfully employed while the remaining 5% or 430,000 are unemployed. This are the seasonal workers in the farms and the plantations . Due to our robust agriculture based economy, our employment rate is higher by two (2) percentage points compared to the country’s 92.7% . Majority of our workers are in the agriculture sector ; followed by services and manufacturing. This is mainly due to the bright and upbeat economic performance of the economy despite the hikes in oil and energy. As to be expected , the resiliency of Mindanao withstood the pressures of the environment
to be continued... (2nd part – The Promise of Federalism)
The Promise of Mindanao
Mindanao is rich in natural resources. A third of our land is planted with the country’s major crops – 100%of national production of cacao, 91%of pineapples, 90% of cacao and over 50% of coconut , coffee and corn. And of course – the pomelos, mangosteen , rambutans , lanzones plus our own salad bar of lettuce, tomatoes, carrots, cauliflowers, cabbages,etc. And our fruit basket of bananas accounting to US79.5 million of our exports; fresh pineapples at US 33.5 million and the tuna that we eat as sashimi at US 22.3 million.
So its no wonder that we contribute over 40 percent of the Philippines' food requirements and more than 30 percent to the national food trade.
Mindanao is the second largest island in the Philippines. With a land area of 102,043 square kilometers, it occupies one-third of the Philippines' total land area and is larger than a number of Asian countries like Taiwan or Singapore.
We have rich mineral resources and one will find nearly half of the national gold reserves in the island. Our metallic deposits includes lead, zinc, ore, iron, copper, chromite, magnetite and gold and non-metallic mineral resources include marble, salt, sand, gravel, silica, clay, and limestone
Cultural diversity and the island's natural beauty make Mindanao one of Asia's favored tourist destinations. Recently, we had weekly flights from Davao to the territory of Palau. The white sand beaches, scenic volcanoes, vast orchid gardens, and various ethnic festivals are only some of our unique tourist attractions. Our tourism arrival was at 2 million from January-July 2005; hovering from 25%-25% increase in arrivals
Businesses and Investments
The investments Phividec Industrial Authority in Cagayan de Oro City reached P1.07 billion in the first four months of the year, up by 142%, from P0.44 billion in the same period last year. Twelve projects had been approved by both the Board of Investments and PIA and is expected to result to 1,094 jobs and that’s a 45% increase from the 754 opportunities last year.
Foreign investors equity infusion reached a 50-fold increase to P 667 million from P 13 million , while Filipino businessmen rose 11% to P 406 million from P 365.
Most of the approved investments came from various sectors such livestock/poultry & feeds; processed foods & beverages; refrigeration/storage services; motor vehicle parts & components manufacturing; and, iron ore manufacturing.
The iron ore manufacturing sector got the biggest share of approved projects this year with 49% share or P520 million-worth of investments from the Japanese-owned Philippine Sinter Corporation located at Phividec in Villanueva, Misamis Oriental. This sector likewise, got the bulk of foreign equity-investments this year.
Investments in processed foods & beverages’ sector remained strong as it grew by 20% to P256 million-worth of investments from January to April this year from almost P213 million-worth of investments on the same period last year.
The livestock, poultry & feeds sector has P203 million-worth of investments from last year’s P69 million-worth of investments. Refrigeration services sector accounts for 5% and motor vehicle parts accounts for 3% share from the total investments this year.
Jobs and Employment in the Island Region
We have a total labor force of 8.2 million; 95% are working or gainfully employed while the remaining 5% or 430,000 are unemployed. This are the seasonal workers in the farms and the plantations . Due to our robust agriculture based economy, our employment rate is higher by two (2) percentage points compared to the country’s 92.7% . Majority of our workers are in the agriculture sector ; followed by services and manufacturing. This is mainly due to the bright and upbeat economic performance of the economy despite the hikes in oil and energy. As to be expected , the resiliency of Mindanao withstood the pressures of the environment
to be continued... (2nd part – The Promise of Federalism)
Wednesday, March 22, 2006
Bottom Up Approach To Peace
Peace and order condition and economic development are closely intertwined.One is indispensable to the other. Economic development can be pursued onlywithin a peaceful environment. When the economy is doing good, there is a better guarantee of a peaceful environment. And this is particularly true inMindanao.
This is not to simplify the complex issues of peace and development in Mindanao. These issues have socio-political and cultural roots. However, history and reality tell us that economics is also an important factor.
That is why the government, business community, and non-government organizations have always put peace on top of their economic development agenda. Peace and development have always been a main topic in thevarious conferences, summits, and other fora. These includes the annual summits initiated by Kusog Mindanaw, Mindanao Commission of Women, NGOs, business groups , media and other organizations. These initiatives manifest the acknowledgment by the various stakeholders in Mindanao that peace and development must go together.
Various foreign donors have also signified intention to continue supporting peace and development initiatives in Mindanao. These initiatives include livelihood projects, particularly for the disadvantaged sectors in the poor regions of theisland, where assistance is most needed.
Recently, another important summit was held in Sulu. Organized by the Province of Sulu, in collaboration with the Mindanao People's Peace Movement, the 4thBangsamoro Summit gathered over 50 participants coming from various sectors of the tri-people community at the Tabang Sulu Hall in an effort to contribute inforging lasting peace and development in Mindanao. The summit consolidated insights of various sectors to substantially contribute in the peace building initiatives in the region.
The summit also served as forum to assess the livelihood programs initiated for former combatants of the Moro National Liberation Front (MNLF) who havebeen provided access to livelihood opportunities.
Although there are many other summits initiated by different sectors, it is good that there are summits specially organized for the tri-people where the is no substitute implementation of livelihood programs must be intensified. There is no better substitute to touching base - getting the pulse of the people in the communities who know best how to properly address their concerns. This reinforces the bottom-up approach in looking for sustainable solutions to lasting peace and development.
The results of the 4th Bangsamoro Summit should serve as important reference for other sectors and organizations who have periodic conferences and consultation. While the summit may be area- and sector-specific, the approaches and strategies employed in successfully implementing livelihood programs in the Moro communities may help other organizations in enhancing their programs to dovetail with the needs of the target beneficiaries.
Again, there is no substitute to touching base. There is no such thing as conclusive assumptions and presumptions in working for peace and development in Mindanao. No one knows better than the people in the communities themselves.
This is not to simplify the complex issues of peace and development in Mindanao. These issues have socio-political and cultural roots. However, history and reality tell us that economics is also an important factor.
That is why the government, business community, and non-government organizations have always put peace on top of their economic development agenda. Peace and development have always been a main topic in thevarious conferences, summits, and other fora. These includes the annual summits initiated by Kusog Mindanaw, Mindanao Commission of Women, NGOs, business groups , media and other organizations. These initiatives manifest the acknowledgment by the various stakeholders in Mindanao that peace and development must go together.
Various foreign donors have also signified intention to continue supporting peace and development initiatives in Mindanao. These initiatives include livelihood projects, particularly for the disadvantaged sectors in the poor regions of theisland, where assistance is most needed.
Recently, another important summit was held in Sulu. Organized by the Province of Sulu, in collaboration with the Mindanao People's Peace Movement, the 4thBangsamoro Summit gathered over 50 participants coming from various sectors of the tri-people community at the Tabang Sulu Hall in an effort to contribute inforging lasting peace and development in Mindanao. The summit consolidated insights of various sectors to substantially contribute in the peace building initiatives in the region.
The summit also served as forum to assess the livelihood programs initiated for former combatants of the Moro National Liberation Front (MNLF) who havebeen provided access to livelihood opportunities.
Although there are many other summits initiated by different sectors, it is good that there are summits specially organized for the tri-people where the is no substitute implementation of livelihood programs must be intensified. There is no better substitute to touching base - getting the pulse of the people in the communities who know best how to properly address their concerns. This reinforces the bottom-up approach in looking for sustainable solutions to lasting peace and development.
The results of the 4th Bangsamoro Summit should serve as important reference for other sectors and organizations who have periodic conferences and consultation. While the summit may be area- and sector-specific, the approaches and strategies employed in successfully implementing livelihood programs in the Moro communities may help other organizations in enhancing their programs to dovetail with the needs of the target beneficiaries.
Again, there is no substitute to touching base. There is no such thing as conclusive assumptions and presumptions in working for peace and development in Mindanao. No one knows better than the people in the communities themselves.
Wednesday, March 15, 2006
Mindanao As I.T. Hub
Focus on Contact Center Services
Cyberservices is a new term that describes services delivered via cyberspace. These are information technology-driven services that include call centers, medical transcription, back office operations, and animation.
In the Philippines, call center services is the largest sector in the I.T industry, absorbing 63% of its total workforce. In just a few years, Philippines has strengthened its services from inbound customer support and outbound telemarketing to more technical support service such as computer hardware troubleshooting. We are currently at par with global standards, closely competing with India and China, while offering the best value. And as the sector grows to greater heights, large call center companies are expanding its reach across the nation, seeking for more competitive labor costs, and cheaper infrastructure and operational expenses in other cities aside from Manila, Angeles and Cebu - and southern Philippines is targeted as the next destination of growth.
But, is Mindanao ready?
In its recent report, Commission on Information and Communications Technology (CICT) projected that the call center sector will have to employ 388,000 agents to meet client needs in 2010. In order to deliver this, call centers should not limit their Mindanao activities on recruitment for relocation purposes alone. Setting base is inevitable considering the many perks in Mindanao cities, specifically the availability of cheaper and reliable power and communication infrastructure, less expensive cost of living, good incentives for I.T. companies, numerous vendor support, and transportation infrastructure.
Mindanao is also fast opening itself to advancement as it targets cyberservices to be the industry that will not only boost the economy, but will also secure its people from leaving home. In addition, redistribution of wealth, the return of talents, triggering of commercial activity, and attracting more investment from other sectors are significant, positive effects of call center presence in the provinces.
Local communities and its leaders recognizes Mindanao's potentials in providing call center needs in the near future. This sparked interests from various groups and business organizations to cooperate and unify in order to make Mindanao cities an attractive and suitable locations for the industry's growth.
Mindanao as the next I.T. Hub
Such widespread investment promotion campaign embarked by various Mindanao stakeholders, captured the interest of some of the well-known call centers causing them to visit major, Mindanao cities for expansion consideration. So far, Cagayan de Oro and Davao City pioneered by collectively attracting four call center operation set-ups in the city proper. My very own company, Joji Ilagan Foundation Inc., will be operating a state of the art training academy for call center agents and personnel in partnership with John F. Kennedy Foundation; and a Call Center projected to have 200 seats. This training academy will open start operating on April and the BPO contact center on June of this year. The training center will also ensure the continuous presence of skilled manpower to serve the needs of IT investors and BPO’s that intends to locate their businesses in Davao and the nearby cities like Gen. Santos.
Mindanao, with its skilled labor and quality of life, recognizes its capacity to deliver investor requirements in setting up call center operations. We produce competent professionals with excellent reasoning skills, English communication and computer skills, and workers flexible in various work environments. And of course, Mindanaoans are famous for being friendly, courteous and industrious individuals - a plus point in this line of work.
On the other hand, Mindanao has its own challenges and limitations. For one, not all cities have I.T. Parks and zones, and this discourages I.T. investors who seek additional incentives that an I.T. park/zone could offer, in addition to the flexible requirements it imposes. Most of the cities are yet to follow Cagayan de Oro's Pueblo de Oro IT Park, the first of its kind which houses an international call center.
There is no reason why Davao and Cagayan and the rest of Mindanao cannot become the IT hub for the Southern part of the country and of the East Asean region.
After all, everything else is in place - competent manpower and adequate communications and transportation infrastructures.
MINDANAO ICT: Full Blast in 2006
Expect this year that Information and Communication Technology (ICT) in Mindanao will be taking a massive leap to profitable and ever-expanding services. Similar to emergent and forward-looking economies, Mindanao is “upgrading” itself to be at par with the world’s best ICT applications. Its vision for competitiveness and modernization was evident during the 4th Mindanao ICT Congress, wherein various key players from the six regions gathered to address the need for innovative revolution in our ICT industry.
The congress focused on enhancing the rapid distribution of knowledge and information as means to finding its proper niche in the global village of the 21st century. Conducted in General Santos City last year, the successful gathering resulted to the passing of seven policy resolutions and the discussion on the several key issues of the industry.
One of the resolutions calls for both the public and private sectors to intensify the promotion of investments in the ICT sector in Mindanao. This cooperation is critical particularly in encouraging investors that Mindanao is peaceful, orderly and above else, ICT-ready. To support this marketing initiative, a resolution urging the Telecommunications Office (TELOF) to fast-track the establishment of 37 identified community e-centers (CeCs) and 42 e-LGU CeCs in Mindanao was presented. It specifies the generalized resolution calling for the expansion of rural connectivity in the Mindanao regions, specifically in the Autonomous Region of Muslim Mindanao (ARMM).
The stakeholders also urged concerned government agencies to develop the IT skills of Mindanao’s human capital and businesses. In this campaign, it was suggested that the Department of Education (DepEd) subsume effective computer applications in the curriculum of primary and secondary education. Likewise, the Commission on Higher Education (CHED) and the Technical Education and Skills Development Authority (TESDA) were tasked to monitor IT schools and business process outsource companies to guarantee that graduates possess the skills acceptable to the ICT industry. Mindanao is targeting markets of contact centers, BPOs, animation, software development and medical transcription. Each sector demands different knowledge and skills, and therefore more education and training programs are needed in order to address the special labor requirements attached to it.
Open Source technologies gained a considerable amount of curious, or otherwise fearful, following at the second half of 2005, when authorities allegedly raided offices and internet shops for copyrights violations on operating systems. As such, the private sector began urging government agencies to mount an aggressive and widespread information drive to all ICT stakeholders about the nature and benefits of adopting Open Source technology for business operations. This is, in fact, a very attractive alternative for small businesses who could not afford the legal rights to utilize commercial systems, but could not afford to do without a computer. Open Source is not only free, but it’s the option for lawful business transactions for those who are tight on the company budget.
Overall, the successful 4th Mindanao ICT Congress highlighted the necessary inputs from all stakeholders in order to achieve the goal to make Mindanao the “Knowledge Center in the Asia Pacific” by 2010. Will we be able to keep up with the times? We will surely take it one step at a time, but for sure, Mindanao is getting there.
ECOZONES IN MINDANAO
Decades ago, the lack of infrastructure facilities was the major bottleneck of investment promotion and acquisition in Mindanao. The cost of transportation and communication made doing business in Mindanao very expensive, if not prohibitive.
Infrastructure in place
That problem is not exactly a thing of the past. There is still more to be done. However, the improvement of Mindanao’s infrastructure facilities speaks for itself. Road networks, airports, seaports, telecommunications, and other facilities are now in place. This improvement not only cuts the cost of doing business, but also makes it more convenient and profitable.
Getting more investments on the ground has always been a tough challenge for the government and the private sectors. Even if facilities are already in place, they have to contend with the ‘image problem’ of Mindanao, particularly with regard to peace and order situation. But these constraints were all effectively addressed through appropriate investment promotion and acquisition strategies.
The strategies in promoting Mindanao as an investment destination are consistent with the overall investment promotion program of the country. Among these strategies implemented is the creation of economic zones or ecozones.
As defined in Republic Act 7916, otherwise known and the “The Special Economic Zone Act of 1995,” ECOZONES are selected areas with highly developed or which have the potential to be developed into agro-industrial, industrial tourist/recreational, commercial, banking, investment and financial centers.
An ECOZONE may contain any or all of the following: Industrial Estates (IEs), Export Processing Zones (EPZs), Free Trade Zones, and Tourist/Recreational Centers.
The Special Economic Zone Act provides that the government shall actively encourage, promote, induce and accelerate a sound and balanced industrial, economic and social development of the country in order to provide jobs to the people specially those in the rural areas, increase their productivity and their individual and family income, and thereby improve the level and quality of their living condition through the establishment, among others, of special economic zones in suitable and strategic locations in the country and through measures that shall effectively attract legitimate and productive foreign investments.
Among the privileges for locators in ecozones is the exemption from national and local taxes which is stipulated in republic Act No. 7916.
Mindanao Ecozones
There are twenty one (21) ecozones in the whole island of Mindanao which is registered at the Philippine Economic Zone Authority (PEZA).
In Western Mindanao (Region IX), the 50-hectare Ayala de Zamboanga Industrial Park in Zamboanga City is ready for locators, preferably light to medium scale, non-pollutive industries.
In Northern Mindanao, the Misamis Oriental Ecozone in Jasaan, Misamis Oriental, prefers oleochemical industries. The Pueblo de Oro IT Park in Carmen, Cagayan de Oro City prefers IT-related industries.
Development is still in progress at the First Cagayan de Oro Business Park in San Martin, Villanueva, Misamis Oriental.
The 61-hectare Sarangani Economic Development Zone in Polomolok, South Cotabato, prefers food and vegetable processing, meat processing, quick frozen products, corn, flour, and starch.
In Barangay Calumpang, General Santos City, the 19-hectare SRC Calumpang Economic Development Zone is also ready for locators.
Development is in progress in five (5) other ecozones of the region: Apo Estates Special Economic Zone in Barangay Madaum, Tagum City; Filinvest Technology Park General Santos in Tambler, General Santos City; General Santos Special Economic Zone, also in Tambler, General Santos City; Sarangani Economic Development Zone in Matinao, Polomolok, South Cotabato; and Tiger Valley Industrial Estate in Klinan 6, Polomolok, South Cotabato.
Three (3) ecozones are being developed in Iligan City of Central Mindanao (Region XII). These are the CIIP Agro-Industrial Park, Global Ispat Industrial Park, and NSC Special Economic Zone.
In the Caraga Region, the Philnico Industrial Estate in Nonoc Island, Surigao del Norter is ready for locators, preferably nickel refinery operations, service and utility providers, support industries to the nickel refinery and downstream industries.
The Shannalyne Technological & Environmental Park in Milagros, Esperanza, Agusan del Sur is ready for investors in pulp, paper, and other wood-based industries.
In Tubay, Agusan del Norter, the Tubay Agro-Processing Center is also ready for locators.
In the Autonomous Region in Muslim Mindanao (ARMM) the Maguindanao Ecocity is being developed in Parang, Maguindanao.
Invest in Mindanao
With these ecozones, Mindanao offers ready-to-occupy locations for investors who want to do business in the country’s second largest island according to their preferred investment areas. These ecozones make doing business in Mindanao very convenient.
Furthermore, they offer opportunity for investors to be part of the peace and development efforts for the island and the country.
WHY IN DAVAO?
Davao , the city of blooms from islands to highlands is the site of the 25th ASEAN Tourism Forum (ATF), which will be held on January 13 to 21 , 2006.
Indeed, Davao City is blooming and booming from islands to highlands. Investments in terms of total capitalization of businesses continues to surge from only P62 billion in 2000 to P69 billion in 2001, P80 billion in 2002, P84 billion in 2003, and a whopping P118.5 billion in 2004. The sharp growth is very evident in the city’s tourism, construction, agriculture, and export sectors.
Tourist arrivals based on air passenger traffic and hotel occupancy volume have been consistently increasing since 2000 placing Davao City’s total tourism receipts at P5.22 billion in January-June 2005 alone, a 13-percent increase from P4.62 billion generated in the same period last year.
Similarly, this city had recorded an unprecedented increase in the value of private building construction, which skyrocketed to P7.4 billion last year from only P773 million in 2001.
So did exports, shooting up to $993 million in 2004 from $848 million in 2003 and $738 million in 2002, with the balance of trade further widening in Davao City’s favor.
“These figures are making Davao City even more attractive to tourists, many of whom are corporate executives and entrepreneurs on vacation who can’t ignore a business opportunity when they see one,” said ATF 2006 Secretary General and Philippine Convention and Visitors Corporation Executive Director Daniel Corpuz.
Davao is the capital of the Southern Mindanao region and one of the world’s largest cities in terms of land area, spanning 244,000 hectares. This sprawling metropolis has emerged as the business, investment and tourism hub of Southern Philippines.
Citing Davao City as the next pillar of Philippine tourism, Durano said it was President Arroyo’s personal choice as the venue for ATF 2006.
The 25th ASEAN Tourism Forum (ATF) slated in Davao City is expected to significantly boost the economy in Mindanao and prop up investor confidence in the region and the rest of the Philippines.
Imagine the kind of international exposure that Davao City and the rest of Mindanao will gain from the ATF, which will be participated in by throngs of delegates from the 10 member-countries of the Association of Southeast Asian Nations (ASEAN) and the major wholesale travel trade buyers from all over the world, all translating to thousands of foreign and local visitors flocking to Southern Philippines during that nine-day event.
Tourism had contributed substantially to Mindanao’s expanding economy, which posted growth rates of 4.4 percent in 2002 and 4.5 percent in 2003 and consistently had accounted for around nine million of national employment.
There have been remarkable increments in the region’s air and sea transport volumes in terms of both passengers and cargo because of increased tourism activities, particularly in Southern and Northern Mindanao, which posted more than 1.2 million foreign and domestic tourists. The international airport in Southern Mindanao’s tourism and investment hub – recorded around 1.4 million incoming and outgoing passengers in 2004 while hotel occupancy rates posted a 6.5 percent increase in the January-June 2005 from its year-ago level.
The impact of these developments can be felt throughout the region’s economic landscape, especially in the food, transport, hotel, resort, entertainment, recreation, retail, and services sectors.
Quite evidently, the government is taking advantage of ATF 2006 to launch the development of Mindanao as a tourist haven and Davao as the center of the tourism industry in Mindanao and present it to the world in that perspective.
This move will thus correct the wrong perception that Mindanao is a not a safe place to visit, to invest in, or even to stay.
Participating in the ATF are the 10 ASEAN-member countries, their exhibitors from various sectors of the tourism industry, and 470 buyers and media from six continents. All these translate to thousands of foreign guests and tourists, who will soon see Mindanao in a totally different light.
Why in Davao ? The answers are obvious!
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