Investing in Bangsamoro for the development of Mindanao The 52nd Annual Meeting of the Philippine Economic Society 14 November 2014 Hotel Intercontinental Manila Legaspi Room Investing in Bangsamoro for the development of Mindanao MARITES DANGUILAN VITUG Session Chair Editor at Large, Rappler Investing in Bangsamoro for the development of Mindanao MARIA LOURDES DAMASO LIM Main Presenter Regional Director, NEDA Regional Office XI Development Opportunities of Mindanao Regions in a Post-Comprehensive Agreement on the Bangsamoro (CAB) Scenario 14 November2014 Philippine Economic Society (PES) 52nd Annual Meeting Forging Ahead: The Philippines as Developed Economy by 2050 Intercontinental Hotel, Makati City MINDANAO DIRECTOR MARIA LOURDES D. LIM, CESO II Regional Director, NEDA Regional Office XI Davao Region, Philippines and Head Secretariat, NEDA Board-Regional Development Committee Mindanao Spatial Consideration for Inclusive Development Category 1: Provinces with High Magnitude of Poor Households Category 2: Provinces with Highest Poverty Incidence Based on Population Category 3: Thirty Provinces Exposed to Multiple Hazards Source: Philippine Development Plan Midterm Update, 2011-2016 Selected Macroeconomic Indicators, Mindanao Regions vis-a-vis National Figures 2013 2010-2013 2013 Per 2012 2000-2013 2000-2013 National Road GDP/GRDP GDP/GRDP Capita Poverty Average Average Density (km (in constant AAGR GDP/GRDP (in Incidence Employment Under/sq. km) 2000 prices) (%) constant 2000 among Rate (%) employment (As of October ( in thousand prices) Families (%) Rate (%) 2012) pesos) (in pesos) Philippines 6,765,458,577 5.9 68,897 19.7 91.3 19.2 0.092 NCR 2,455,306,204 6.4 195,806 2.6 85.9 12.5 1.810 Luzon 2,491,009,666 5.3 57,428 17.5 92.3 19.1 0.094 850,371,452 5.8 44,972 28.6 92.2 21.4 0.128 968,771,253 6.2 41,450 34.8 93.9 22.4 0.066 137,949,751 5.6 38,064 33.7 95.0 22.3 252,645,030 6.2 55,060 32.8 94.0 30.0 0.093 258,485,862 6.0 54,359 25.0 92.5 21.3 0.082 186,407,600 7.2 41,996 37.1 93.5 23.8 0.068 Caraga 83,550,716 9.0 32,752 31.9 92.9 24.1 0.069 ARMM 49,732,294 1.5 14,566 48.7 95.6 13.0 0.030 Visayas Mindanao Zamboanga Peninsula Northern Mindanao Davao Region SOCCSKSAR GEN Source: Philippine Statistics Authority 0.085 End-of-Plan (2016) Targets of Mindanao Regions Indicator ZamPen 5.5- 7.5% GRDP Targets Poverty 25- 30% Incidence (Families) Employmen No target rate t Rate 2015 Investment P 13.71 B** Reqts. 2016 Investment P17.74 B** Reqts. 2015 NEP P52.48 B NorMin 8.5%- 9.5% Davao Region SOCCSKSARG EN CARAGA ARMM 8.7% 9.1- 10.1% 9.9- 10.8% 5.0% 20.7% (MDG target for 2015) 22.3% 96% 96.2% 20.4% 18.8% (MDG target (MDG target for for 2015); 22.75% 2015) (RDP target 2016)* No target rate 97% 40% 97.58% P90.05 B P33.95 B P50.4 B P25.63 B P41.68 B P162.41 B P31.13 B P31.76 B P26.83 B P55.33 B P61.86 B P54.23 B P52.72 B P42.22 B P49.95 B Investment/Budget Priorities at the National, Mindanao, Regional and Bangsamoro levels should be outcomes-based as defined in the development plans at all levels. Source: Updated Regional Development Plan and Result Matrices and Reg’l Development Investment Program 2014-2016(Regions IX, X, XI, XII, XIII, ARMM); DBM 2015 National Expenditure Program * - Source: Caraga RDP, 2011-2016 •- Source: ZamPen RDIP, 2011-2016 PROPOSED NETWORK OF GROWTH CENTERS, Mindanao, 2015-2045 Growth targets of the Bangsamoro National (baseline) ARMM (baseline) 6.3% (2009-13) 2.7% (2009-13) 6-8% Agriculture (%, annual average) [Rest of Mindanao] 1.6% (2009-13) [5.7% (2009-13)] 1.5% (2009-13) 3-4% Industry (%, annual average) 7.4% (2009-13) 5.5% (2009-13) 60-62% Services (%, annual average) 6.7% (2009-13) 4.8% (2009-13) 5-7% 4.8% (2007-13) 6.5% (2007-13) 6-7% Indicator GDP/GRDP growth (%, annual average) Inflation (%, annual average) GDP/GRDP per capita (pesos, current prices) 117,603 (2013) Transition End-2016 29,608 (2013) P38,000-40,000 Poverty incidence (% of population) 25.2% (2012) 55.8% (2012) 50-52% Employment rate (%) 92.9% (2013) 95.4% (2013) 95-96% Underemployment rate (%) 19.3% (2013) 12.4% (2013) 11-12% Source: BDP,2015-2022 Development Themes and Financing Requirements Economy and Livelihood Infrastructure Social Services Security and Normalization Environment and Natural Resources Culture and Identity & Governance and Justice P225 Billion for 2014-2016 Post-Conflict Development of the Bangsamoro “transition from conflict to peace in an affected country through the rebuilding of the socioeconomic framework of the society.” Elements of post-conflict recovery 1. Socio-economic 2. Good Governance 3. Institutional Post-Conflict Development of the Bangsamoro “transition from conflict to peace in an affected country through the rebuilding of the socioeconomic framework of the society.” Elements of post-conflict recovery 1. Socio-economic 2. Good Governance 3. Institutional 4. Geographic/Spatial 5. Security/ Normalization Financing post-conflict development •Taxes, fees and charges •Annual Block Grants •Loans, grants, ODA •Economic Agreements •Revenue shares in natural resources •GOCCs & GFIs Potential Impacts of the Bangsamoro on Mindanao Regions • Bangsamoro growth at 6-8 percent in 2016; • Regional economic growth improves to double digits; • Economic spillover to Mindanao Regions. Growth and Investment Drivers • Agriculture, Fishery, & Forestry Industry • Micro , Small and Medium Enterprises • Transition from grey economies to formal markets • Tourism and eco-tourism • • • • • Mining Renewable Energy Palm Oil Production Halal Industry Islamic Banking and Finance BANGSAMORO: 3 Major Scenarios 1. Increase contribution to the national output; 2. Intra- and inter-regional trade enhanced and boosted; 3. Correct socio-economic disparities. Source: dzrhnews.com Thank you Investing in Bangsamoro for the development of Mindanao PANEL DISCUSSION Investing in Bangsamoro for the development of Mindanao LUISITO MONTALBO Panelist Undersecretary, Office of the Presidential Adviser on the Peace Process Investing in Bangsamoro for the development of Mindanao PANEL DISCUSSION Investing in Bangsamoro for the development of Mindanao AMINA RASUL-BERNARDO Panelist President, Philippine Center for Islam and Democracy Investing in Bangsamoro for the development of Mindanao PANEL DISCUSSION Investing in Bangsamoro for the development of Mindanao AMINA RASUL-BERNARDO Panelist President, Philippine Center for Islam and Democracy Investing in Bangsamoro for the development of Mindanao PANEL DISCUSSION Investing in Bangsamoro for the development of Mindanao STEVEN ROOD Panelist Country Representative for the Philippines and Pacific Island Nations, The Asia Foundation Investing in Bangsamoro for the development of Mindanao OPEN FORUM Investing in Bangsamoro for the development of Mindanao CONCLUDING REMARKS Investing in Bangsamoro for the development of Mindanao The 52nd Annual Meeting of the Philippine Economic Society 14 November 2014 Hotel Intercontinental Manila Legaspi Room