PRESS RELEASE April 6, 2018

Unlocking Mindanao’s Potential is Key to Reducing Extreme Poverty in the Philippines

Growth corridor strategy to improve infrastructure, enhance connectivity and ensure balanced growth in Mindanao

DAVAO CITY, April 6, 2018 – With Mindanao accounting a third of the Philippines’ poor – but only a quarter of its population, unlocking Mindanao’s potential is critical in bringing down poverty in the entire country, says a new report launched today by the World Bank, the Mindanao Development Authority (MinDA), and the Philippine Business for Social Progress (PBSP).

The main challenge for Mindanao, like the rest of the Philippines, is how to speed up growth that creates more and better jobs and reduces poverty, explains the report, entitled Mindanao Jobs Report: A Strategy of Mindanao Regional Development.

“The strategies identified in the report could not be more timely and relevant to the priorities that we in Mindanao Development Authority have set out to pursue under the Duterte administration,” said Secretary Abul Khayer Alonto, Chairperson of MinDA. “Under our long-term development plan as approved and included in the Philippine Development Plan for 2017-2022, we are pursuing socio-economic development initiatives through the Mindanao Development Corridors.”

Following extensive consultations with many of Mindanao’s leaders and stakeholders, the report came up with recommendations around three areas, namely:

  • Raising the productivity of Mindanao’s farm and fisheries sector and improving its connectivity and access to local and global markets;
  • Investing in health, education, skills training, and social protection for the poor; and
  • Addressing the drivers of conflict and strengthening institutions in conflict-affected areas.

Mindanao’s growth corridor strategy is the key, said Secretary Alonto, as it is designed to improve infrastructure, enhance linkages between growing and lagging regions, and ensure balanced growth. Such a strategy would lead to greater connectivity that can reduce transportation costs and improve the competitiveness of small farmers and other producers.

The corridor strategy divides Mindanao into four development corridors: the Northern Mindanao Development Corridor, Southern Mindanao Development Corridor, Western Mindanao Development Corridor, and the Bangsamoro Development Corridor.

Thirty-five projects that facilitate movement of people, goods and services – consisting of ports and airports improvements, inter-regional and intermodal roads, bridges, and roll-on/roll-off shipping facilities – are given priority for national government funding. A total of 21 of these priority projects already have funding, amounting to Php17 billion.

“Unlocking Mindanao’s potential could help sustain the country’s growth momentum, create more income opportunities for the poor, and help strengthen the prospects for peace,” said Miguel Dominguez, Chairperson of Philippine Business for Social Progress Regional Executive Committee. “To help achieve this goal, PBSP promotes inclusive business practices to ensure that communities are active stakeholders and partners in the value chain - as producers, business partners, employees, or consumers. We continue to partner with various levels of government and advocate corporate social responsibility consistent with the values of people empowerment, collective action, and peace anchored on just and equitable development.”

Currently accounting for 15 percent of the country’s GDP and 40 percent of agricultural production, Mindanao can contribute much more to the Philippine economy. But conflict in some areas constrains Mindanao’s aspirations to accelerate inclusive growth, says Mara K. Warwick, Country Director for the Philippines, Thailand, Malaysia, and Brunei. Hence, addressing the issues that fuel conflict – such as land ownership disputes, historical injustices, and weak governance – is important, as are accelerated efforts to improve land titling and registration and promoting equitable access to land, especially among small farmers, she said.

“While the government addresses these issues through the peace process and other initiatives, improving delivery of social services and reforming policies to support job creation and economic opportunity for all can help ensure the success of peace-building efforts,” said Warwick

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PRESS RELEASE NO: 2018/04/06

Contacts

Manila
Dave Llorito
+63-465-2514
dllorito@worldbank.org
Davao City
Kathy Mar Mateo
082-221-6929
kathymar.mateo@minda.gov.ph
Api
Api