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.

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!