THE National Economic and Development Authority (Neda) believes the creation of the Bangsamoro Autonomous Region (BAR) will be able to boost the economy of the Autonomous Region in Muslim Mindanao (ARMM) and other provinces to be included in the new region.
In a statement on Tuesday, Socioeconomic Planning Secretary Ernesto M. Pernia said the ratification of the Bangsamoro Organic Law (BOL) through a plebiscite and the creation of BAR would increase investments in the region.
This bodes well for the new region, which includes the ARMM, the poorest region in the Philippines. The ARMM’s poverty incidence is at 47 to 60.4 percent of the population or around 1.74 million to 2.24 million poor Filipinos as of 2015.
“Given that the BOL provides a lot of opportunities to increase the budget for BAR, we expect to see more programs and infrastructure projects in the region,” Pernia said.
The latest Philippine Statistics Authority data from the 2016 Annual Survey of Philippine Business and Industry showed only 103 establishments with total employment of 20 or more are based in ARMM.
As a result, ARMM had the least labor productivity nationwide with only P175,900 in 2016. The average total labor productivity nationwide was at P964,352 in that year.
Pernia said as the new Bangsamoro government is vested with powers over political and fiscal matters, the public financial management and delivery of services in the region would improve.
He said the national government will be investing around P70 billion for the fiscal year of 2019 as assistance to the region.
This does not include compensation for the members of the Bangsamoro Transition Authority, benefits and entitlements of affected ARMM regional government employees, disposition of personnel and assets, initial funding to carry out requirements of the transition, and additional development programs and projects subsidized by the national government.
Pernia also underscored the planned major infrastructure projects in the region amounting to P22.15 billion for FY 2019 alone and P40.85 billion for 2017-2022, based on the Public Investment Program, as of September 2018.
“Connectivity and social infrastructure should be the primary concern of the Bangsamoro Transition Authority and the new leaders of the BAR to address pressing issues, most importantly access to basic services,” Pernia said.
As part of the creation of the new region, the Bangsamoro Economic and Development Council will be established to serve as the planning, monitoring, and coordinating agency for all development plans, programs and projects of the Bangsamoro government. A representative of the Bangsamoro government will also sit as a member of the Neda Board.
Pernia said that with the new Bangsamoro government vested with powers over political and fiscal matters, the public financial management and delivery of services in the region would improve.
“Neda also acknowledges that the plebiscite is a historic moment for Mindanao. The agency looks forward to the success of this initiative to further this administration’s thrust of inclusive development established on a strong foundation of peace and security,” Pernia added.
The first part of the plebiscite in the ARMM, Cotabato City and Isabela City took place on January 21.
It will be followed by another plebiscite on February 6 in Lanao del Norte, except Iligan City, and North Cotabato, as well as local government units that petitioned to be included.
Image credits: Nonie Reyes