Economic and Social Development: Mindanao Final Agreement
Implementations
Economic and Social Development – 1996
The 1996 peace agreement calls for various provisions such as the ARMM establishing its own Regional Economic and Development Planning Board, tourism promotion, authority to the ARMM to give incentives including tax holidays within its power and resources in the area of autonomy, enact a regional tax code and regional local tax code, encourage the establishment of banks and bank branches along with establishing an Islamic Banking Unit in the ARMM. The ARMM was allowed to accept foreign financial and economic grants, issue its own bonds, treasury bills and debt papers in coordination with the central bank. The peace accord calls for the fiscal autonomy of the ARMM, gives preferential rights over the exploration, development and utilization of natural resources in the autonomy area respecting existing rights on the exploration, exploitation and utilization of the natural resources. The internal revenue tax collected from the ARMM region was to be allocated for the Regional Autonomous Government, for a period of five year, in the Annual General Appropriation Act, which could be extended upon the mutual agreement between the national and regional autonomous government.
Executive Order no. 371 created the Southern Philippines Council for Peace and Development (SPCPD) as a transitional body to be dissolved after the plebiscite scheduled for 1999. The SPCPD however did not lead to the establishment of the institutional frameworks called for in the accord for socio-economic development.1
The Regional Economic and Development Planning Board was not established. Concerning Islamic banks, there was only one Islamic Bank, Al-Amanah, in the region. The Growth with Equity in Mindanao project sought to get other overseas Islamic Banks to set up branches in the ARMM region.2 As provided in the accord, the ARMM was allowed to keep 80 percent of tax revenue for five years, but the amount was miniscule.3 There were no records found of the ARMM issuing treasury bills or debt papers.
- John D. Harber, “Conflict and Compromise in the Southern Philippines: The Case of Moro Identity,” (M.A. Thesis, Naval Postgraduate School, Monterey, California, 2008).
- “Philippines lures foreign Islamic banks,” Agence France Presse, October 25, 1996.
- “Philippines dangles more autonomy to Moslem rebels,” Agence France Presse, February 2, 1999.
Economic and Social Development – 1997
Socioeconomic reform in Mindanao was supposed to be addressed in an institutional fashion after establishing the Regional Economic and Development Planning Board. This did not happen in 1997. In terms of foreign support for socio-economic development, in December 1997, $500 million was pledged in a meeting attended by representatives from the Consultative Group for the Philippines for the development of Mindanao which included programs related to livelihood and eco-tourism among other developmental projects.1 In respect with establishing the Islamic bank branches, the central bank was in a process to amend the country’s banking regulation to attract foreign Islamic banks.2
- “Philippines Gets Us$500 m for Mindanao Development,” AAP Newsfeed, December 23, 1997.
- “Philippines preparing rules to attract Islamic banks,” Associated Press, January 29, 1997.
Economic and Social Development – 1998
The Regional Economic and Development Planning Board was not created in 1998. There were no reports of newly established Islamic banks in the region. However, as provided in the accord, however, the ARMM was allowed to keep 80 percent of tax revenue for five years.1 The ARMM received foreign support and grants for various socio-economic development related projects.
Economic and Social Development – 1999
The Regional Economic and Development Planning Board was not created in 1999. There were no reports of newly established Islamic banks in the region. However, as provided in the accord, however, the ARMM was allowed to keep 80 percent of tax revenue for five years.1 The ARMM received foreign support and grants for various socio-economic development related projects.
Economic and Social Development – 2000
The Regional Economic and Development Planning Board was not created in 2000. There were no reports of newly established Islamic banks in the region. As called for in the accord, the ARMM was allowed to keep 80 percent of tax revenue for five years.1 The ARMM received foreign support and grants for various socio-economic development related projects.
Economic and Social Development – 2001
The Regional Economic and Development Planning Board was not created in 2001. The ARMM was allowed to keep 80 percent of tax revenue for five years.1
Economic and Social Development – 2002
The Regional Economic and Development Planning Board was not created in 2002. There were no reports of newly established Islamic banks in the region. The ARMM did receive foreign support and grants for various socio-economic development related projects.
Economic and Social Development – 2003
In 2003 the ARMM Department of Trade and Industry called for the regional legislature to expedite the passage of the Regional Economic Zone Authority (REZA) bill in order to boost local and foreign investment through tax incentives and revenue holidays.1 On 15 August 2003, the regional assembly passed the RIZA law in accordance with the 1996 accord. The RIZA law provides the legal mechanism for the creation, operation, administration, and coordination of the special economic zones within the region.2 This also paved the way for the formulation of policies for various socio-economic development programs including the local tax code, and preferential rights over the exploration, development and utilization of natural resources in the autonomy area.
- “Mindanao Region Calls for Rapid Passage of Bill to Boost Investment in Philippines,” World Markets Analysis, January 10, 2003.
- “ARMM ecozone authority gets P13M,” Alternate Forum for Research in Mindanao, accessed August 31, 2012, http://www.afrim.org.ph
Economic and Social Development – 2004
Following the establishment of the Regional Economic Zone Authority (REZA) in the ARMM region, there were no clear indications or reports that the organization carried out the specific reforms called for in the accord.
Economic and Social Development – 2005
In 2005, the Al-Amanah Islamic Bank was the only bank in the ARMM.1 The Regional Economic Zone Authority (REZA) was established, and the ARMM received large amounts of foreign support and grants for various socio-economic development related projects. Most of the broad reforms called for in the 1996 accord did not materialize.