Given the possibility of a food crisis, everybody’s looking toward Mindanao, the supposed food basket of the Philippines. But how far is the island from that status?

A recent assessment of government projects in Mindanao, made by the Presidential Management Staff and the Mindanao Economic and Development Council (MEDCO), showed that only three of the 27 high-priority projects considered critical in transforming Mindanao into the country’s main food producer have been completed.

MEDCO coordinates development and peace projects in Mindanao and serves as the official and permanent Philippine Coordinating Office for the Brunei Darussalam Indonesia Malaysia the Philippines-East ASEAN Growth Area (BIMP-EAGA).

MEDCO chair Virgilio Leyretana discussed with Newsbreak’s Jesus Llanto the many factors in the slow growth of the super region—among them the lack of crucial infrastructure, the very limited employment opportunities, and the region’s dependence on foreign donor agencies. Excerpts:

How is the Mindanao economy doing?

For the last five years, we have been a resilient economy despite the intermittent disturbances in the peace and order. We performed 5.2 percent in 2006 .We even beat the Visayas [at 4.9 percent].

What is the main driver of growth?

It is still agriculture, but since 2006 [the] services [sector] has been picking up because of the growth of the ICT (information and communications technology) and BPO (business process outsourcing).
 
Are the Mindanaoans benefiting from this growth?

Yes, there’s no doubt about that.

But recent government statistics say that poverty incidence remains high in Mindanao and the region has remained the poorest among the three island groups in nearly a decade.

Infrastructure is very crucial here also. If there are no roads, how can the government accelerate the delivery of basic services? How will the other agencies come in?  There is also a need for massive employment opportunities. Since most businessmen are afraid to invest here, employment opportunities are concentrated in Metro Manila. Mindanaoans should have access to [employment] opportunities.

You have echoed the calls of some officials that the government should pour in more projects in the region for it to become the food basket.

Mindanao could be the answer to the food security problem of the country. Mindanao is in a very strategic position outside of the typhoon belt and it has vast tract of land but it suffers from lack of infrastructure. It has 10,063 barangays but many of which are not connected to urban centers. No matter what you do to convince the farmer to increase their agricultural productivity, it is unattainable without the farm-to-market roads. They will be just producing for themselves because the cost of transportation is high.

Aside from farm-to-market roads, what other projects are needed?

There are still big-ticket projects that have to be completed, like the circumferential road. The Surigao-Bislig-Mati portion needs to be completed, but the construction has been hampered by weather conditions. There is need to accelerate the construction of the lateral roads.

We also need irrigation. We need small irrigation facilities because these are better than big irrigation projects that would entail loans and would cost millions of dollars.

The volatile peace and order situation has caused some countries to issue travel warnings against Mindanao. How has these advisories affected the region’s economy?

The growth of the industry sector is slow because the negative perception has made prospective investors reluctant to come in. While we do not begrudge any countries from issuing advises, I hope they should be prudent enough not to issue sweeping travel advisories. Most of these countries issuing those [travel advisories] are our donor partners, so it becomes ironic that they issue that while they are helping us in our efforts to push for socio-economic development in Mindanao.

Aside from the peace situation, what has prevented the region from catching up with Luzon and the Visayas?

The development of Mindanao never experienced continuity. Everytime a new administration takes over, it sets aside programs for development that are already in place, because of the very personalistic leadership that we have. Everybody wants his own name emblazoned on the projects. There was no coherent and consistent policy for the socio-economic planning in Mindanao and we missed the opportunity and incurred expenses despite the meager resources that we have.

Will a federal form of government be good for Mindanao?

Yes and no. The proposal should be studied thoroughly. If you look at our geographical circumstance, then federalism is inevitable and inescapable because we are composed of islands, which have their own cultures. But we need to study first the economic cost of federalism.

If you cluster Metro Manila as one state, it is natural that Manila will have an edge because it is developed. If you cluster Mindoro, Masbate, and Marinduque, will it (cluster) be able to catch up with Metro Manila even if it is rich in natural resources? ARMM (Autonomous Region in Muslim Mindanao) is rich but it has to catch up with other regions.

How long will it take ARMM to develop its own resources in order to catch up with other regions? When we adapt this system, we will be organizing new governments and we will need money. How much will it cost the government? Let us not rush into it.

In the recent status report (by PMS and MEDCO) it is revealed that only three of the 27 high-priority projects for the Mindanao super region are finished? Are we still on track?

We are on track except for the big ticket ones, which cannot be finished in 2010. For instance, if we cannot accelerate the construction of the airports, these projects could go beyond 2010. If all the projects are in place, Mindanao will be in a better position to meet its needs and the needs of the entire country as well.

Foreign donors fund a lot of projects of Mindanao.Are we becoming too dependent on the donor agencies?

The ideal situation for us is to be independent. While we are thankful to the donor agencies, the longer we [receive] from them, the greater the probability that we will develop a dependent attitude. There will be an end to these. Eventually these countries will need to focus on their own domestic affairs, so it is very important for us to develop our own capability. Right now, we should start to learn how to swim with our own arms and our legs.

This interview is part of the Mindanao Online Reporting Project funded by the Australian Embassy.

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