RURAL ENTERPRISES FOR POVERTY REDUCTION
AND HUMAN SECURITY
By Jerry E. Pacturan
I.
Historical Background and Context of the PDAP
Development Work in Mindanao
The Mindanao Colonial Context
Mindanao was once called the land of promise
due to its vast agricultural lands, rich natural
resources and the vibrant economy that was
established resulting from the island’s strategic
trading links mainly with China as early as 982
A.D. prior to the coming of Islam in the late 14th
century.
In the 18th and 19th centuries, Sulu,
Cotabato in Southcentral Mindanao and
Butuan/Caraga, at the northeastern portion,
were the flourishing trading centers in Mindanao
linked with Europe and China1.
In the face of the determined efforts of Spain
for three hundred years, from the middle of the
15th century up to the latter part of the 18th
century to colonize the entire Philippines, most
portions of Southern and Central Mindanao
remained free, governed by the Sultanate
system (i.e., the Sultanate of Sulu, the Sultanate
of Maguindanao and other smaller sultanates).
It was this freedom from the Spanish colonizers
that up to this day, the Muslims assert was a historical fact that proved they were never part of the
struggle against Spain, hence not part of the Philippine nation when the Filipino revolutionary leaders,
mostly from Luzon and Visayas, led and almost won the Philippine Revolution against Spain in the late
1800s.
The Americans who came at the turn of the 19th century as a result of the Spanish-American War in
1898 and “liberated” the Philippines from Spain in a mock battle in Manila Bay, pursued the same
pacification campaign to subjugate the entire country including the Muslim governed areas in
Mindanao. The Americans utilized a divide and rule strategy against the Muslims. They entered into
an agreement with the Moro leaders through the Bates-Kiram Treaty of 18992 while at the same time
fought a cruel war against them. The U.S. gained military victories but has never been totally
successful in transforming the socio-cultural and political landscape of the Muslim communities. “The
struggle has been costly. From 1903 until 1939, the U.S. initiated ‘land-grabbing laws’ that
Sources: Regional Economic Zone Authority/REZA: The Economic Growth Booster, by DTI-ARMM Regional Secretary Ishak V.
Mastura; Unpublished Historical Accounts of Mindanao by Greg Hontiveros, Butuan City; Philippine History & Government by
Gregorio F. Zaide and Sonia M. Zaide, 5th Edition.
2
Installation of a separate U.S. military administration for the Moro lands and signature of the so-called Bates-Kiram Treaty that
provided for a regime of indirect rule, the Americans being only concerned with the maintenance of order and peace. The treaty
didn't however prevent frictions and soon revolts broke out. They would last until 1905 in Mindanao and until 1913 in Sulu.
(Source: http://www.geocities.com /CapitolHill/Rotunda/2209/Moro.html)
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Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
1
systematically took away land from the indigenous inhabitants. During this time it is estimated that
from 15,000-20,000 Muslims were killed. Despite these losses, Moro and Lumad 3 resistance against
colonial rule continued”4.
To further counter this resistance, in 1912 the Americans brought to Mindanao large numbers of
Filipino Christians from Luzon and Visayas. This continued through the 1950s, completely changing the
demographic makeup of the island. In 1918, Moro and Lumads combined made up approximately 75
percent of the total population in Cotabato Province. By 1970, they made up only about 34.5% while
Christians made up 62.2 percent.5 Alongside the massive migration of Christians was the entry of
American firms that capitalized on the region's economic potential. Between 1900 to 1920, about 46 US
firms were established in Zamboanga and Sulu. Agricultural colonies were also said to have been
established in Cotabato, Davao, Lanao and Agusan by 1930. 6
The Philippine Government, which was given autonomy by the U.S. in 1935 under the Philippine
Commonwealth and full independence in 1946, continue to uphold, up to this day, its sovereign
authority in this part of the archipelago, a legacy which most of the Muslim population took with
contempt arguing that their “Bangsamoro territory” have been illegally annexed by the Americans as
part of the Philippine state in the Treaty of Paris of 1898 7.
The communist insurgency in Central Luzon set off by the Hukbong Magpapalaya ng Bayan (HMB) in
the 1950s, led the Philippine government to offer an amnesty program for its members by sending the
HMB members and their sympathizers to Mindanao and granted them the privilege to own and
cultivate agricultural lands. Consequently the influx of more migrants, mostly Christians, from other
provinces in Luzon and Visayas followed suit.
At around this time the over-all relations among the Mulsims, Christians and Lumads were generally
commendable, despite the centuries-old derision by the Muslims against the various invaders, foreign
and local, of their homeland.
In the early 1970s para-military groups (some attached to Christian politicians, some with Muslim
politicians and others with the loggers) proliferated. At this time, land conflicts between Muslims and
Christians escalated triggering into armed clashes. The military (then the Philippine Constabulary) took
control of many towns and pave the way for the involvement of a para-military group called ILAGA8.
The group was responsible for attacking a mosque killing scores of civilians, and driving out Muslims
from their communities.9
This event produced a chain reaction in various parts of Mindanao triggering more violent retaliation
from both sides. Since then the conflict between Muslims and Christians have been at the center
stage of the socio-cultural and politico-economic dynamics in Mindanao.
Lumad – the local terms used for the indigenous peoples (IPs) in Mindanao.
The Struggle in Mindanao, Documentation for Action Groups in Asia, September 2001.
(Source:
www.daga.org/dd/d2001/d109ph.pdf)
5
Same with no. 4 above.
6
Source: Dr. Samuel K. Tan of the UP Center for Integrative and Development Studies (UP-CIDS).
7
On April 25, 1898 the United States declared war on Spain following the sinking of the Battleship Maine in Havana harbor on
February 15, 1898. The war ended with the signing of the Treaty of Paris on December 10, 1898. As a result Spain lost its
control over the remains of its overseas empire -- Cuba, Puerto Rico, the Philippine islands, Guam, and other islands.
8
ILAGA stands for “Ilongo Land Grabbers Association”. The Ilongos is a Visayan ethnic group originating from the islands of
Panay and Negros. The Ilongos is one of the dominant non-Mindanao ethnic groups which migrated to South and North
Cotabato.
9
“Overview of the Moro Struggle” by Professor Datu Amilusin A. Jumaani.
3
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Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
2
The Modernday Muslim Rebellion Against the Philippine Government
The seeds of the Muslim rebellion began in the 1950’s with the creation of secessionist movements
initiated by Muslim politicians, Senator Pendatun, a Maguindanao 10, of the MINSUPALA (Mindanao, Sulu
& Palawan) movement and Congressman Lucman, a Maranao, of the Mindanao Independent
Movement (MIM).
In the early 1970s, a revolutionary Muslim movement whose following was across the broad socioeconomic classes of the Muslim population was established in Mindanao led by then University of the
Philippines (UP) Professor Nur Misuari11. Both the MINSUPALA and MIM joined this new movement.
This became as the Moro National Liberation Front (MNLF) which waged a secessionist war against the
Philippine government under the administration of the late President Ferdinand E. Marcos who was
elected in 1965. President Marcos declared Martial Law in 1972 and presided an authoritarian regime
for almost 14 years.
In 1976, President Marcos concluded an agreement with the MNLF in Tripoli, Libya with the facilitation
of the Organization of Islamic Countries (OIC), granting autonomy in 14 provinces, together with its
component cities, in Southern Philippines, including the predominantly Christian provinces of North and
South Cotabato. This agreement was never implemented prompting the MNLF to continue its struggle
for secession against the Philippine government.
Table 1 - Autonomy Areas in the 1976 Tripoli Agreement
List of autonomy areas identified in the Tripoli Agreement of 1976
1.
Basilan
8. Lanao del Norte
2.
Sulu
9. Lanao del Sur
3.
Tawitawi
10. Davao del Sur
4.
Zamboanga del Sur
11. South Cotabato
5.
Zamboanga del Norte
12. Palawan
6.
North Cotabato
13. Sultan Kudarat
7.
Maguindanao
All the cities and villages in the
above mentioned areas
In 1978, a breakaway faction of the MNLF led by its Vice-Chair Ustadz Hashim Salamat12 asserted itself
as the “New MNLF Leadership” primarily due to differences in positions vis-à-vis the Tripoli Agreement.
From this faction, the Moro Islamic Liberation Front (MILF) was formally organized in 1982 and
eventually separated from the MNLF 13. The MILF established itself in Central Mindanao with mostly
Maguindanaoan following, its forces scattered in the hinterlands of Maguindanao, Lanao del Sur and
North Cotabato. Aside from the conflicting positions of the Misuari and the Salamat factions on the
Tripoli agreement, the MILF separated with the MNLF owing to ideological and leadership differences,
the former being more Islamic in character while the latter being secular in its outlook.
In Southern Philippines, there are at least 13 known Muslim ethno-linguistic groups, three of which are dominant in terms of
population and political prominence - the Maguindanaos situated in the south-central Mindanao area, the Maranaos in the
central-western area and the Tausogs of Sulu.
11
Nur Misuari comes from the Muslim Tausug ethnic group. While a student in UP, Nur Misuari was a member of the Kabataang
Makabayan (KM), the youth faction of the National Democrats. His prominent contemporary while teaching in UP was Jose Ma.
Sison, founder and former Chairman of the Communist Party of the Philippines (CPP).
12
Salamat, a Maguindanao himself, was the chair of the MILF until his demise in July 2003. He was succeeded by another
Maguindanao, Ibrahim Murad. The MILF and the Philippine government resumed the peace negotiation in August 2003 under the
facilitation of the Malaysian Government and the backing of the U.S. Government.
13
From an interview with a former chair of the MILF Peace Panel of 2000 which negotiated with the Government of the
Philippines.
10
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
3
The war between the MNLF and the Philippine government was very costly both in terms of lives and
economic destruction. Data from the AFP showed that from 1970 to 1996, more than 100,000 persons
(i.e., soldiers, rebels and civilians) have been killed in this conflict and P73 billion was spent in the 26year period, or an average of 40 per cent of the AFP’s annual budget. 14
The Peace Agreement of 1996 and Changes in Leadership in ARMM
Upon the assumption of then President Corazon C. Aquino, after the fall of the Marcos Dictatorship
through the People Power Revolution of 1986, peace negotiations were initiated with the MNLF which
finally culminated in the Peace Agreement of 1996 between the Philippine government under the
administration of President Fidel V. Ramos and the MNLF under the chairmanship of Nur Misuari. In
September 1996, Nur Misuari was elected regional governor of ARMM (Autonomous Region in Muslim
Mindanao).
This Peace Agreement led to the amendment and the restructuring of the ARMM 15 through the passing
of the Republic Act 9054 in February 2001. At the ensuing referendum mandated by RA 9054, the
ARMM region is now composed of the provinces of Basilan, Lanao del Sur, Maguindanao, Sulu,
Tawitawi and the City of Marawi, while the province of North Cotabato and the city of Cotabato 16 chose
to be under Region 1217.
In April 2001, ARMM Governor and concurrent MNLF Chair Nur Misuari was ousted as Chair of the MNLF
by the other MNLF top-ranking leaders identified as the “Committee of 15”. In the ARMM election of
November 2001, Dr. Parouk Hussin, one of the leaders of the Committee of 15, was elected as regional
governor of ARMM18. In 2002, Misuari’s loyal forces hold-out and hostage hundreds of civilians and
fought-out the AFP in a military camp in Zamboanga City. As a consequence, he fled to Malaysia but
was later on deported by the Malaysian government back to the Philippines. He has been incarcerated
since then in a government jail in Laguna, Luzon.
While the Peace Agreement still holds and is being respected by the MNLF, much needs to be done to
complete the devolution process. As claimed by its leaders, out of the 60 executive orders that should
have been issued by the President of the Philippines as part of the devolution process, only a handful
have been put out to date19.
Despite the devolution being incomplete, the peace agreement paved the way for the implementation
of donor-initiated development projects in Mindanao by different donor agencies. With the Philippine
government operating in deficit hence unable to finance the rehabilitation and development of
Mindanao, the donor community has somehow filled-in the gap of providing the much needed resources
to rehabilitate, reconstruct and develop the region.
Poverty and Underdevelopment in Mindanao and the ARMM
Mindanao is the second largest island of the Philippines comprising 94,630 square kilometers and with
a population of 18 million or about 23% of the country’s total population of about 80 million. It
From the privilege speech delivered in Congress by then Rep. Eduardo Ermita who was formerly the Presidential Adviser for the
Peace Process and currently the Executive Secretary of President Gloria Macapagal-Arroyo.
15
The Autonomous Region for Muslim Mindanao (ARMM) was created on November 6, 1990 by Republic Act 6734 during the
administration of then Philippine President Corazon C. Aquino.
16
The center of the regional government of ARMM is situated in Cotabato City, despite not being part of ARMM. This was
because in the predecessor RA 6734 of RA 9054, Cotabato was still part of ARMM.
17
The Philippines is composed of 15 regional subdivisions including ARMM and the Cordillera Administrative Region (CAR) in
Northern Luzon. Except for ARMM which is autonomous and has its own regional government structure and Regional Governor,
the rest of the 14 regions including CAR doesn’t have a regional government.
18
Governor Hussin’s term will last until mid-2005 afterwhich regional elections will be conducted in ARMM.
19
From an interview with the interim chair of the MNLF, who replaced Chairman Nur Misuari.
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Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
4
contributes substantial amount to the total GNP of the Philippines. It is blessed with diverse and rich
mineral and forestry reserve, as well as abundant agricultural and fishery resources.
Decades of highly centralized governance,
economic neglect and military pacification
campaigns by the Manila central government
mainly in response to the Muslim rebellion and
communist insurgency in the 1970s and the
1980s have somehow been largely responsible
for the state of underdevelopment and poverty
in Mindanao which is most pronounced in
conflict-affected areas, including the eastern
(chiefly Surigao and Agusan provinces) and
western regions of the island (Lanao and
Zamboanga provinces). It is this poignant state
of underdevelopment and poverty that breeds
conflict, political instability and unpeace.
Indeed, poverty and conflict are twin evils.
The poverty situation and underdevelopment in
conflict affected-areas in ARMM and other
provinces in Mindanao is quite disturbing as
recent figures would show. The World Bank in
one of its publications confirmed that the island
provinces of ARMM have highest poverty levels
in the entire country.
Even non-ARMM
provinces has distressing figures as well. The
succeeding table illustrates the
poverty
statistics in selected Mindanao provinces.
Table 2 - Population, Poverty20 Incidence and Depth (1997, 2000)
Population
Poverty Incidence
(Census 2000)
1997
2000
Philippines
Metro Manila
Lanao del Sur
Maguindanao
Sulu
Tawi-tawi
Basilan
North Cotabato
Sultan Kudarat
Davao del Norte
76,498,735
9,932,560
669,072
801,102
619,668
322,317
332,828
958,643
586,505
743,811
25.1
3.5
40.8
24.0
87.5
52.1
30.2
42.7
21.6
26.2
Poverty Depth21
1997
2000
27.5
5.6
48.1
36.2
92.0
75.3
63.0
34.8
35.3
27.3
6.4
0.6
10.4
4.0
33.1
13.4
5.9
13.4
3.2
6.4
7.2
0.9
9.7
9.2
37.3
25.8
16.7
8.8
5.8
7.1
Source: Social Assessment of Conflict-Affected Areas in Mindanao, A World Bank Publication, March 2003
Poverty line is the level of income below which a household is considered poor because it will then be unable to procure
sufficient food and other minimum necessities of life. The poverty measurement methodology used by the Philippine Human
Development Report is consistent with that used in the World Bank’s two-volume Philippine Poverty Assessment published in May
2001.
21
Poverty depth measures how far below the poverty line the poor are. It measures the poor’s average income shortfall
(expressed in proportion to the poverty line) relative to the non-poor. Thus, the data shows that the average income of the poor
in Lanao del Sur is 10 percent below the poverty line. The poor in Sulu have average incomes that are more than the 30 percent
short of the poverty line. In other words, the income of the poor in Sulu has to rise by an average of 30 percent in order for
them to rise above the poverty line.
20
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
5
Indicators on health are also not encouraging. ARMM has only 29% of its population having access to
potable water supply. The following figure illustrates that among the bottom 5 provinces in the
Philippines which has low access to safe drinking water, three of them are from the ARMM namely
Tawi-tawi, Lanao del Sur and Sulu.
Access to family planning services is also very low among the ARMM provinces. The bottom 5
provinces in the country in terms of low family planning access are all in ARMM comprising – Tawitawi, Lanao del Sur, Sulu, Basilan and Maguindanao.
In terms of access to sanitary toilets, Sulu (20.8%) and Tawi-Tawi (11.6%), both from ARMM, reported
the least percentage of families with sanitary toilets.
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
6
The state of education is also lamentable. Cohort survival22 rate at elementary education level for
School Year 2001-2002 especially in Western (45.51%)and Central Mindanao (56.45%) regions and
the ARMM (33.96%) are very low as shown in the following table.
Table 3-
Cohort Survival Rate is defined as the proportion of enrolles at the beginning grade or year which reach the final grade or
year. Philippine Statistical Yearbook 2000.
22
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
7
With these conditions, the imperative for economic development and provision of basic social and
health services is critical and necessary. It is in this context that development projects for residents
affected by conflict, which help ensure their food security requirements, improve agricultural
productivity and increase livelihood options, hence augmenting household income, becomes very vital.
The PDAP program in Southern Philippines is a response towards this development challenge.
II.
PDAP in Mindanao and Palawan
The Philippine Development Assistance Programme, Inc. (PDAP)23 program on peace and development
in the conflict areas of Southern Philippines began in 1997 immediately after the signing of the peace
accord between the Government of the Republic of the Philippines (GRP) and the Moro National
Liberation Front (MNLF) in 1996. The “Program for Peace and Development in the Southern Zone of
Peace and Development/SZOPAD Areas (PPDSA)”, a three year program implemented from 1997 to
2000 and funded by the Canadian International Development Agency (CIDA) through the PhilippinesCanada Development Fund (PCDF), assisted 84 cooperatives and peoples organizations of former MNLF
combatants involving more than 4,000 individuals.
The program consisted of capacity building
through organizing and technical assistance work and provision of capital for livelihood and enterprise.
In 2001, PDAP implemented its second program called “Mindanao Program for Peace and Development
(PROPEACE)” still with the support of CIDA and PCDF. With a three-year duration, the program has
expanded its assistance to other marginal sectors, the indigenous peoples (IPs) and poor Christian
settlers. The program has also included an advocacy component in answer to the need to engage
development stakeholders, especially government, in policy formulation and programs that affect the
peace and development of the region.
PDAP’s focus on livelihood and enterprise creation for its programs in Southern Philippines is in
recognition of the state of poverty and underdevelopment in the region particularly in the conflictaffected areas.
Working in partnership with community-based groups of Muslim, IPs and Christians since 1997, PDAP
has already supported about 180 various projects amounting to almost US$ 2 million. These projects
range from agricultural/fish/livestock production and agricultural post-harvest facilities for livelihood
and food security to enterprise projects on food and handicraft processing, basic commodities
merchandising, micro-financing, grains trading (rice and corn) for increasing household/family income.
Objective and Components of the PDAP-Propeace Program
The Propeace program’s objective is to improve the socio-economic well-being of 4,000 poor Muslims,
Indigenous People (IP) and Christian households in conflict affected areas in Mindanao and Palawan.
This is intended to be achieved mainly through the provision of financing and technical assistance for
livelihood and enterprise projects of the partner peoples organizations. Included in the component
interventions of the program is policy advocacy which is directed at the municipal and regional levels in
The Philippine Development Assistance Programme (PDAP), Inc. is a non-government organization established in 1986
composed of 6 NGO networks with more than 300 community-based members or affiliates in the Philippines. PDAP works to
reduce poverty and inequity in the Philippines. For the last 16 years, PDAP has supported more than 400 community-based
projects for the benefit of close to 2 million Filipinos. It has successfully implemented three major development projects
amounting to almost US$ 20 million over three phases of NGO funding support from the Canadian International Development
Agency (CIDA). In Southern Philippines, PDAP is currently implementing a 3-year project called Mindanaw Program for Peace
and Development (PROPEACE) and a relief and rehabilitation project in Damulog, Bukidnon and Mapun, Tawitawi.
23
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
8
order to mobilize and operationalize support services from existing policies and programs on livelihood
and enterprise promotion. The policy advocacy for the program is also aimed at influencing LGUs and
national government agencies as well as donor agencies in developing and implementing new policies,
programs and services that benefit the partner organizations and their communities.
The succeeding diagram is the program implementation framework of Propeace.
Figure 1. Program Implementation Framework
NGO Partners
PDAP-ProPeace
HH-Level OUTPUTS:
•Increased Income
•Skills Enhancement
•Increased Savings
Peoples
Organizations &
Cooperatives
Poor Muslims,
IPs, &
Christian
Settlers
Govt. Agencies,
LGUs & Donors
COMPONENTS:
•Organizational Development & Capacity Bldg.
•Livelihood & Enterprise Development
•Policy Advocacy
P
E
A
C
E
and
D
E
V
E
L
O
P
M
E
N
T
Community-based Approach for Livelihood and Enterprise Projects
PDAP, in both PPDSA and PROPEACE programs, has adopted an approach of working directly with
community-based peoples organizations (POs) and cooperatives. Selection of communities are done in
close collaboration with development stakeholders operating in conflict areas such as local NGOs,
federation of POs, MNLF leaders and MNLF-allied organizations, Church-based programs, local
government units (LGUs), national line agencies as well as donors whose programs do not include
livelihood/enterprise components.
Project identification, development and implementation are accomplished in a participatory manner. In
all these stages, PDAP works as a facilitator using the communities’ own indigenous knowledge,
cultural tradition and practices as well as experiences from other communities and projects which are
replicable and locally-appropriate.
Financing for livelihood and enterprise projects are made available directly to the participating
communities. The fund is treated by the POs as perpetual local revolving capital intended to finance
continuously their livelihood and enterprise projects.
POs whose projects need technical assistance in institutional development and strengthening,
cooperative formation and development, financial and business management (i.e., production and
marketing) are supported by engaging NGOs and BDS (business development service) providers whose
expertise satisfies the project’s requirements. In some instances, LGUs and national line agencies with
programs and expertise on PO formation and strengthening are tapped to provide technical assistance.
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
9
Basic trainings and educational programs including coaching/mentoring activities to strengthen the
POs/coops organizational management capacity are implemented on-site involving the membership
while specialized trainings using experiential techniques and exposure programs are provided to the
key leaders and management of the community-based organizations.
Institutional networking and linkages geared towards collaborative undertakings at the community and
policy levels are initiated by engaging national government agencies, LGUs, NGOs and donor agencies
in joint projects and activities.
Using these approaches Propeace, since its implementation in 2001 covering mainland Mindanao,
Palawan and Tawi-tawi, has accomplished the following:

Livelihood and enterprise projects has reached 90 compared to the original program target of 80
projects. Of the total 90 projects, 22 are managed by all-women POs while 68 are led and
managed by males. Projects managed by Muslim POs comprises 44 or 49% of the total projects.
Table 4 – Livelihood & Enterprise Projects by Sector
Livelihood & Enterprise Projects
Participating Sector
Male
Female
Muslims
Christians
IPs
Tri-people24
Total

30
13
22
3
68
14
7
1
-22
Total
44
20
23
3
90
Total
Program
Target
48
16
16
-80
Total
Actual
44
20
23
3
90
In terms of the number of individual participants, Propeace has surpassed its original target by
169% reaching 6,242 participants. Female participation is also significant at 47% based on the
actual accomplishment.
Table 5 – Sectors by Number of Individual Participants
Sectors by Number of Individual Participants
Participating Sector
Number of Participants
Male
Female
Total
Total
Program
Target
Muslims
1,377
1,240
2,617
2,400
Christians
626
894
1,520
800
IPs
968
968
1,608
800
Tri-people
313
184
497
-Total
3,284
2,958
6,242
4,000
Percentage
53%
47%
100%

24
Total
Actual
2,617
1,520
1,608
497
6,242
(169%)
Women play significant role in various Propeace-supported projects. Most of the all-women
managed projects are in micro-lending followed by trading and merchandising,
Tri-people POs are those with membership from Muslims, IPs and Christians.
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
10
Table 6 – Collective Projects Managed by Women
Collective Projects Managed by All-Women POs
Type of projects
Women
Managed
Trading & Merchandising
4
Micro-Lending
14
Agri-Agua Production
1
Livestock and Poultry
1
Post Harvest Facilities
-Food Processing & Handicraft Production
2
Total
22
Total No. of
Projects
22
29
21
5
5
8
90
Stages of Development of Communities in Conflict Areas
In almost seven (7) years of working in Southern Philippines in partnership with the marginalized
communities of Muslims, Christians and IPs and various stakeholders on peace and development, PDAP
realized that communities in conflict areas in the context of livelihood and enterprise promotion go
through several stages of development. These six stages mark a continuum from survival to
rehabilitation to development and growth (see figure 2).
Conflict Situation. Due to massive displacement of communities in a conflict situation, delivery of
relief services such as food and medicines are crucial. During this period the need to call for
cessation of hostilities is a critical task to prevent further displacement of communities. The role of
Civil Society Organizations (CSOs), the press/media and peace advocates forming as a “peace
constituency” together with the IDPs (internally displaced peoples) to call for ceasefire from warring
forces becomes very important. At this stage where the displaced families are living in various
evacuation centers, peace education is an effective strategy that helps to heal the trauma and
emotional wounds suffered by the IDPs. Dialogue and therapy sessions are implemented to help
reduce cultural and religious resentments and biases among the affected.
Post-conflict Preparation. In situations where the war is prolonged and formal declaration of
cessation of hostilities has not been reached, IDPs play a lead role by asking warring forces to allow
them to return to their communities. The “space for peace” model in Pikit, Cotabato spearheaded by
the local communities and external facilitators (e.g., NGOs, donors, government agencies, etc.) is
one effective and successful approach towards this end. With the expressed willingness of warring
forces to respect the peace declaration of the communities affected, the IDPs can start to prepare for
their return and rehabilitation which includes activities such as undergoing psycho-social programs
and capacity-building planning, village rehabilitation and restructuring, core shelter construction
planning, damage assessment and planning for livelihood including basic services requirements. At
this level a multi-stakeholder mobilization involving CSOs, government donor agencies and even the
private sector becomes very useful in order to generate the necessary resources to support the
planned return of the IDPs.
Rehabilitation. With the support of all stakeholders including the warring forces (i.e., government
and the rebel forces), the IDPs start to go back and settle in their communities to rebuild their
damaged houses and community infrastructure (like the village government office and religious
structures such as mosques and chapels), cultivate their lands through food for work programs and
help implement labor-based construction of water projects. For communities with POs prior to the
war, community organizing activities to revive and re-strengthen the organizations are initiated.
Agricultural Productivity and Livelihood. At this stage where the IDPs are back and settled in their
villages various type of support are provided to make their agricultural activities more productive
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
11
such as introduction of farming systems and sustainable agriculture (SA) technologies, extension of
soft agricultural credit, and provision of water for drinking and irrigation purposes. As additional
source for food security and household income, projects like backyard food production techniques,
inland fish production and livestock production technologies are made available. During this stage
continued provision of basic social services on health, literacy and adult education are necessary.
Peace education continues to be an important feature in rebuilding family, community and inter-faith
relationships in order to sustain the initial peace gains achieved.
Micro-Enterprises.
Community-based micro-finance or micro-lending projects are effective
interventions in assisting households implement both on-farm and off-farm livelihood activities such
as food processing, agricultural trading, merchandising, operation of common service facilities for
agri-production and processing, agricultural trading and handicraft. Micro-finance modalities vary
depending upon the financing needs of the project and the existing culture and traditions of the
community. In some projects implemented by Muslim POs, micro-finance policies comply with certain
Islamic principles on financing while others simply follow the usual micro-finance standards. At this
stage of development, micro-enterprises are also provided with entrepreneurship and technology
training, product improvement assistance, basic business management and marketing skills. Savings
and capital build-up schemes are also given emphasis to allow formation of internal capital within the
community thereby increasing their collective capacity to finance and invest in their own enterprise
projects. Peace education at this stage moves up to a higher level when community leaders are
tapped to extend peace education in other communities affected by the conflict to expand the peace
constituency and assume leadership roles in government and donor-initiated structures that supports
the peace and development efforts.
Market-Oriented Enterprises.
Food-based and food-related micro-enterprises with value added
potential such as fish sausage processing, fruit jelly processing, organic sugar production
(“muscovado”), cooking oil production are given assistance in product quality improvement, costing
and pricing techniques to enhance their marketability. For these products to reach the shelf in malls
and supermarkets various enterprise improvement interventions are provided such as labeling and
packaging, promotions and consumer education, participation in trade fairs and product presence in
various showrooms established by the government and private sector (i.e., chamber of commerce,
industry associations, etc.). Non-food products and enterprises such as handicraft and traditional
craft weaving possess strong potential for domestic and export markets. These products are given
assistance through product quality and design improvement, buyer linkage, participation in trade
fairs and presence in showrooms.
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
12
Figure 2. Stages of Development of Communities in Conflict Areas in the Context of Livelihood & Enterprise Development
SURVIVAL
REHABILITATION
DEVELOPMENT & GROWTH
MARKETORIENTED
ENTERPRISE
MICRO-ENTERPRISE
AGRI. PRODUCTIVITY & LIVELIHOOD PROMOT’N
REHABILITATION
POST-CONFLICT
PREPARATION
CONFLICT
SITUATION
5
4
ENTERPRISEFOCUSED
APPROACH
3
2
6
COMMUNITY-BASED APPROACH
1 OFF-SITE APPROACH
Main
concern
beneficiary
households
of
Some major factors
needed to reach this
level
Required
development
interventions
Stages of
Organizational
Growth


Food, medicines &
temporary shelter
Safety & security
---
 Media advocacy; call
for ceasefire
 Provision of food and
medicines, health
clinics
 Relief funds accessing
from CSOs, donors,
go’vt, private sector.
 Obtain safety and
security commitment
from warring forces
 Rebuilding of core
shelters
 Land cultivation
 Re-entry plan for IDPs
(shelter & livelihood)
 Village Rehabilitation
and Restructuring
Plan
 Negotiations with
warring forces
 Multi-stakeholder
mobilization of
resources
 Psycho-social &
capacity bldg. for
space for peace
 Agri- support on food
for work program
 Water & health
services
 Community org’n.
 Peace education
 Provision of
agricultural inputs
 Provision of social
services to address
basic needs
 Establishment
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
 Make land productive
to ensure HH food
security
 Reduce production
risks & costs
 Agricultural credit
 Potable water and
irrigation
 Farming systems & SA
technology
 Livestock prod’n.
technology
 Agricultural credit
 Social services to
address basic needs
 Continuing peace
education
 Regularization
 Earn additional income
 Ensure off-season
livelihood
 Seek stable employment
 Availability & diversity of
on-site raw materials
 Organizational capacity for
enterprise
 Capital formation
 Enterprise seed capital
 Skills training
 Product improvement
 Organizational capacity for
enterprise
 Marketing
 Islamic-compatible
financing
 Peace education
 Institutionalization
 Sufficient & stable
market demand
 Marketing
 Technology
 Support for certification,
licenses, trademark &
processing
 Packaging & promotion
 Peace education
 Expansion/Innovation
13
The Partners Capacity Index (PCI)
One of the innovative tools that PROPEACE has developed is the Partners Capacity Index (PCI). PCI is
a PDAP-PROPEACE initiated performance analysis and measurement tool focused on 3 areas – project
implementation, organizational management, enterprise management. It is a self-guided capacity
development assessment tool that analyzes and measures the community partners performance and
growth utilizing applicable measurement tools in organizational and enterprise management and
participatory approaches.
Partners projects are assessed and classified into 5 types – exceeding expectation (EE), as planned
(AP), minor slippage (MiS), major slippage (MaS), poorly implemented (PI).
PCI is also a pro-active tool that identifies the applicable course of action that the community partners
and assisting agencies have to undertake in order to improve on performance and mitigate constraints
and problems in the projects.
The following is the summary result of the partner POs PCI ratings.
Table 7 – PCI Result for PROPEACE Projects
Project
performance
Exceeding
expectation
As Planned
Minor Slippage
Major Slippage
# of
projects
Muslims
SECTORS
IPs
Christians
Women
Managed
Org’ns. with
women
champion
2
37
0
17
1
10
1
10
1
9
1
16
32
16
6
10
11
19
12
10
2
0
1
2
Poorly
implemented
7
3
3
1
0
1
Total
90
46
22
22
22
39
Below are the key findings of the PCI of the PDAP partners:








About 79% (71/90) of Propeace partners have fair to excellent capacity in terms of project
implementation. These partners were able to carry out planned activities, utilize PDAP grant and mobilize
and utilize local counterpart with rating ranging from minor slippage, as planned and exceeds
expectation.
About 72% (33/46) for Muslims
About 77% (17/22) for Ips
About 95% (21/22) for Christians
39 out of 90 project were managed / or championed by women in terms of top management.
37 out of 90 projects or 42% are in the operationalization stage in their organizational development
38 out of 90 projects or 42% are in the growth to expansion stage in terms of enterprise performance
79 out of 90 projects or 88% are satisfactory to outstanding in terms of PCI over-all performance
At the level of the partner Peoples Organizations (POs) the PCI has been discussed and presented to
them for their validation and identification of appropriate course of action that the partners need to
take in order to continue to implement their projects effectively, mitigate and improve on their
performance. Thus through the PCI the partner POs has greatly realized and has been able to share in
the responsibility of sustaining their projects.
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
14
At the service provider level (donors, NGOs, government, LGUs), the PCI generated great interest
when it was presented briefly during the PCDF-sponsored thematic conference on livelihood and
enterprises on September 29,2004 in Davao City, where donors such as the ADB, JICA, AUSAID, ILO,
CIDA and programs like EU-STARCM, UNIDO-Industrial Development Program, etc. were present.
At the PDAP level, the PCI is a valuable investment which it will use as a building block for its future
program in Mindanao. The PCI is a very useful experience and a basic tool in developing further a
comprehensive program performance analysis and measurement framework and indicator system for
livelihood and enterprise projects.
Important Features of Livelihood and Enterprise Programs in ConflictAffected Areas
As communities go through the six stages of development with the end view of promoting the growth
of livelihood and enterprises, five important elements come to fore based on PDAP’s experience.

Poverty-Focused
Poverty and underdevelopment breeds conflict and political instability. PDAP’s response through
livelihood and enterprise creation highlights the importance of providing immediate relief for food
security and poverty alleviation. For projects to be relevant and responsive to the needs of the
communities, PDAP implements a community-focused approach whereby POs/coops decide for
themselves the kind of project that are short-gestating which produce immediate results for the
project participants. Projects are also based on the natural resource endowments of the area,
the enterprise’s market potential, the skills capacity of the participants and their track record.

Social Capital Formation
War and conflict destroy the fabric of communities and societies. It erodes trust and confidence
in individual and community relationships and destroys structures that support communitarian
values and traditions. PDAP’s effort in building the individual competencies of leaders and project
participants as well as the organizational capacities of communities in organizational and
enterprise management and inter-institutional engagement are geared towards the formation of
social capital. Gender-fair and environment-sensitive projects are developed and implemented
with the community taking a lead role supported by technical assistance interventions.

Multi-Stakeholdership
Individuals and communities that go through conflict situations loose practically everything that
they have including self-esteem. The problems and needs are wide-ranging and diverse enough
for any one development program or organization to respond to. For development programs to
be effective in conflict areas, development stakeholders need to collaborate and work together
so that projects and activities do not duplicate and meager resources are put to better use.
PDAP, with its niche in livelihood and enterprise programs working together with other
stakeholders, has shown positive results for communities affected by the conflict. In some
instances, the Propeace-supported physical structures built by the PO become temporary shelter
of displaced families and the venue for psycho-social therapy sessions of the programs
implemented by other NGOs.
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
15

Multi-Cultural and Inter-faith
Cultural, tribal and religious biases and resentments born out from long historical animosities
heighten during conflict situations. Peace education that recognizes the historical root of
conflicts, similarities and divergence in cultures and faiths, the affirmation of strengths and
common thread that binds communities together despite conflict – are necessary development
interventions in conflict areas. Respect for people’s culture and faith, dialogue and joint actions
and finding practical ways to work together are measures that facilitate community development
action assisted by outside stakeholders. The use of faith-based and culturally-compatible
approaches in micro-finance projects manifests the strengths found in the communities traditions
and beliefs and provides an element for project viability and sustainability.

Agriculture and Enterprise/Industry Orientation
Communities emerging from conflict who have been displaced in their economic activities need
to revive their farming and other agriculture related livelihood in order to attain food security and
free themselves from dependence in relief and rehabilitation work. While PDAP has supported
communities in agriculture productivity improvement projects, it also became necessary to
support communities to move beyond agriculture productivity especially when such communities
have already attain a secured level of food supply/security, has gain some surplus production
and therefore ready to go into value-added micro-enterprise and market-oriented activities.
Two schools of thought dominate the concept of enterprise creation – one is the necessary
presence of a sound market and strong support institutions which allows people to do business
and create enterprises, while the other presupposes that individuals with motivation, capabilities
and resources interacting with society will have the capacity to create enterprises. PDAP’s
approach in building the capacities of people and communities to manage their own livelihood
and enterprises is a manifestation of the latter. While institutions and government policies help
transform conflict-affected communities into productive and vibrant societies, in the end the
people and the communities (i.e., motivated by a vision, possessing the right values and armed
with competencies and skills) determine by themselves the kind of development they want.
Propeace-supported projects on food processing and handicraft/weaving which are currently
marketed within and outside the communities and whose potential can be further enhanced
through enterprise improvement strategies demonstrate this belief and aspiration.
Lessons and Challenges for Future Programs
The recovery of communities ravaged by conflict is determined by many factors. The strength of
institutions (i.e., local government, national agencies, church and religious, educational system,
financial, business, etc.), the macro policy framework, the micro-environment obtaining in the
communities and the people’s inherent and acquired abilities and resources are all necessary in this
regard.
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16
While PDAP has found a niche in livelihood and enterprise promotion in the conflict areas of Southern
Philippines, the need to continuously pursue peace and development work (i.e., particularly in
livelihood and enterprise creation) is by no means a finished task. Another peace accord 25 seems to be
at sight offering yet another chance for pursuing development under a climate of peace. However,
much needs to be done. PDAP believes that for development programs to be effective in pursuing
peace, several lessons should be taken into account. These lessons serve as PDAP’s guideposts in
pursuing its livelihood and enterprise work in Southern Philippines.

Peace and development work is attainable in conflict areas given time, a favorable policy
environment and resources that directly address the root of the conflict – poverty and
underdevelopment.

A multi-stakeholder approach involving the national government, local government units, NGOs,
donor agencies and local communities creates a “peace constituency” that can push development
work towards the attainment of peace in conflict areas.

A multi-cultural, inter-faith and diversified approach in supporting community-based structures
geared towards change and transformation at the community level.

Peace education as the underlying foundation in re-building relationships and forming community
structures that promotes the culture of peace and enhances people’s capacities to withstand
conflict brought about by warring forces.

The use of Islam-compatible principles and other innovative approaches in finance, livelihood
and enterprise promotion work and socio-cultural development that has proven to work in other
progressive Muslim communities/societies.
Human Security as the Over-arching Framework
Poverty reduction remains to be the primary concern in a country like the Philippines, and more
especially in Mindanao where conflict arises as a natural consequence of impoverishment, injustices,
socio-cultural biases and prejudices. However, while poverty remains to be the principal consideration
and the chief “lens” for all development interventions, another important “lens” appear to be useful in
responding to the development challenges of Mindanao conflict communities, that is the human
security framework.
Human security is defined as one that focuses on the strengthening of human-centered efforts from
the perspective of protecting the lives, livelihoods, and dignity of individual human beings and realizing
the abundant potential inherent in each individual. In contrast to National Security which focuses on
state-centered efforts rather than people and their communities, the state and their respective
governments need to adopt a new paradigm of security. This is paramount “because the security
debate has changed dramatically since the inception of state security advocated in the 17 th century.
According to that traditional idea, the state would monopolize the rights and means to protect its
citizens. State power and state security would be established and expanded to sustain order and
peace. But in the 21st century, both the challenges to security and its protectors have become more
In 2000, the government under President Estrada’s administration declared an “all-out war” against the MILF which displaced
close to a million individuals. Upon the assumption of President Gloria Macapagal-Arroyo in 2001, peace negotiations were
conducted with the MILF. However, in February 2003 extensive armed clashes occurred between the Armed Forces of the
Philippines (AFP) and the MILF which displaced more than 400,000 individuals. A couple of months after this, peace negotiations
resumed with the active facilitation of the Malaysian Government & other OIC-member countries such as Brunei. Since then the
ceasefire declared and agreed between the two parties has so far been holding and respective by both parties.
25
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
17
complex. The state remains the fundamental purveyor of security. Yet it often fails to fulfill its security
obligations—and at times has even become a source of threat to its own people. That is why attention
must now shift from the security of the state to the security of the people.”26
In the context of conflict-affected countries such as the Philippines, and especially in Mindanao where
the conflict is manifest, human security as a development framework finds enormous relevance.
Specifically this means that development interventions should gear up towards the following:

Protecting people or the internally displaced peoples (IDPs) caught in violent conflicts
Innocent civilians, women, elderly and children are almost always the unfortunate victims of
conflicts resulting from armed clashes between rebel forces and the state military forces.
Government has the moral and the constitutional responsibility to see to it that people affected
by conflict are protected and taken cared of either in evacuation centers or right in their own
communities. Government has the primordial responsibility to use the state resources and
apparatus to provide relief and security to IDPs in the same manner that it uses the state
resources for war. CSOs, donor agencies as well as the private sector need also to provide
complementary assistance to augment scarce government resources.

Providing minimum living standards (work-based security; securing livelihoods; access to land,
credit, training)
As soon as the IDPs are settled in their communities, government and other sectors need to
provide rehabilitation activities and consequential development-oriented projects geared
towards securing the food security and livelihood requirements of the affected sectors. Landrelated issues which are often a cause of conflict need to be responded and resolved utilizing
community-based and culturally-appropriate approaches. State or government-mandated
conflict resolution approaches and the legal justice system need to be augmented or attuned
with community-based approaches. Training programs have to be directed towards social
capital formation and strengthening of communities’ institutional capacity to engage other
sectors. Financing for agriculture and enterprise activities need to be adapted to locallyappropriate or culturally-sensitive approaches such as those espoused in Islamic-compatible
financing systems.

Access to social services such as health and education
Health and basic education are critical concerns for communities affected by conflict. Health
programs that utilizes modern and alternative traditional systems have to be deployed for the
benefit of the marginal sectors. Educational systems in indigenous forms and those that are
under the Muslim Madrasah system will have to be effectively utilized to complement modern
educational approaches. Formal and non-formal peace education will also have to be directed
both at the formal educational system and at the community-level. The latter is most
important in the formal educational system where both teachers and students/pupils need to
be re-educated or re-oriented on peace education.

Articulating common goals, while developing multiple identities (inter-religious dialogue;
culture of peace)
In Mindanao where different tribal identities abound and various religious persuasions exist
(between and among Christians and Muslims), development efforts should recognize the role
26
United Nations-Commission on Human Security Report, 2003.
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
18
and importance of traditional and faith-based (or inter-faith) approaches as a bridge for people
to come together towards one common identity as a people.
Dialogue within the same
religious persuasion (i.e., within and among Christian sects, and even within and among
different Islamized tribal groups) and between faiths (i.e., between Muslims and Christians)
should be pursued towards a deeper understanding of each other’s faith and beliefs leading
towards religious tolerance and formation/acceptance of communitarian values that are
universally acceptable embracing all forms of cultural, tribal and faith systems.

Empowering communities for good governance (engaged/active citizenship)
Effective governance is best addressed both from the perspective of formal governance
institutions and the communities/sectors being governed. Governance institutions in conflict
communities are oftentimes weak and deeply vulnerable to pressures from the ruling power or
dominant sectors (i.e., economic elite, traditional leaders, corrupt government officials and
even revolutionary or rebel groups who are yet to settle with the government). Strengthening
of these institutions through capacity building and institutional development activities is a must
such that they become accountable and responsive to the communities/sectors they are
supposed to govern and serve. Communities on the other hand need to engage actively in an
organized manner these formal governance institutions utilizing existing windows of
opportunity for participation and engagement. In the context of the Philippines and Mindanao,
the existing Local Government Code (despite its existing limitations) offers opportunities for
communities and organized sectors to participate actively and engage government in providing
public goods and services (for the poor and the marginal sectors) necessary for poverty
reduction and the promotion of human security.

Forming alliances among civil society groups including churches, government and local
communities
A broad constituency of sectors and institutions that are committed to peace and development
is a critical foundation for sustained engagement with all the key stakeholders especially the
warring factions (i.e., rebel groups and government/military).
Peace is possible and
sustainable when the people themselves affected by conflict are united in a common front to
fight the root causes of the conflict. The communities themselves taking the initiative of
engaging other allied sectors brings forth a “peace constituency” that can effectively push and
eventually diminish any form of unpeace or anti-peace efforts from outside. While this is a
struggle that cannot be achieved overnight, it is important that the people themselves in
tandem with other sectors take the cudgel for peace.
Finally, set against the challenges of poverty reduction and human security, PDAP commits to pursue
its work on livelihood and enterprise promotion. The last seven years of PDAP work in Mindanao and
Palawan has shown that indeed peace is possible and sustainable in the communities where it
operated upon. And while PDAP may have played a pivotal role in these communities, ultimately the
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
19
long term sustainability of these efforts will be pursued and determined by the communities themselves
as they resolutely uphold their efforts, as well as by the other sectors and institutions (e.g., national and
local governments, private sector, donor agencies, financing institutions, educational institutions,
NGOs, etc.) operating in the wider macro environment where the bigger challenges lie.
Rural Enterprises for Poverty Reduction & Human Security, Jerry E. Pacturan, 7 December 2004
20