Natural Resource Management: Mindanao Final Agreement
Implementations
Natural Resource Management – 1996
A widely acknowledged juxtaposition in the conflict literature on Mindanao is that the area is extremely rich in natural resources, yet the area is the single poorest in all of the Philippines. Articles 134, 143, and 147 are means of putting a greater amount of control over the area’s natural resources in the hands of the inhabitants of the region (ARMM) and, consequently, to increase the benefits enjoyed by ARMM residents from the utilization of these resources by firms. As outlined in article 146 and 147, MNLF leaders and GRP leaders will meet and define strategic minerals at a later date. The peace agreement does not indicate that the GRP retains full control over strategic minerals and all revenues from strategic minerals. The accord states that the ARMM has 100% control over all minerals, except strategic minerals.
To evaluate the degree of implementation for this provision, two streams of information can be used. First, did the GRP and Regional Government meet and collectively agree upon strategic minerals and how to allocate revenues from strategic minerals? Second, does the ARMM budget in its revenue inlays reflect increasing revenue flows from control over natural resources? No developments along these lines were observed this year.
Natural Resource Management – 1997
No developments observed this year.
Natural Resource Management – 1998
No developments observed this year.
Natural Resource Management – 1999
No developments observed this year.
Natural Resource Management – 2000
No developments observed this year.
Natural Resource Management – 2001
Republic Act 9054, passed in March 2001 represents the ratification of the 1996 peace agreement. In Article 12 (Economy), section 5, strategic minerals are defined as uranium, petroleum, fossil fuels, mineral oils, all energy, national reserves, aquatic parks, forests, watershed reservations, and “those that may be defined as such by an Act of Congress within one (1) year” of the passing of RA 9054. In theory, the ARMM is given control over minerals not defined as ‘strategic’ minerals.
The MNLF and OIC publically reject RA 9054 and claim that the GRP’s unilateral effort to define strategic minerals and keep 100% of the revenues produced by strategic minerals is a gross violation of the 1996 peace agreement.1
- “Report of the OIC Secretary-General on the Question of Muslims in Southern Philippines, 2006,” Organization of the Islamic Conference (OIC/33-ICFM/2005/MM/SG/REP.2), accessed August 02, 2012, http://www.oic-oci.org/baku2006/english/SG-report/33ICFM-MM-SG-REP-ENG-P…
Natural Resource Management – 2002
The ARMM Regional Government continues to claim that the GRP violated the peace agreement with its unilateral control over natural resources in Mindanao. Examining the ARMM budget for 2002 does not provide any evidence that the ARMM was able to increase its revenue inlays from the utilization of natural resources or from taxing firms operating in the region. The total ARMM budget in 2002 was 14.3 Billion Pesos (around 342 million U.S. dollars). The revenue raised by the ARMM through taxation amounted to 2 million pesos (around 48 thousand U.S. dollars). Hence, 99.985 of the ARMM budget came from the GRP in 2002, while 0.01 came from direct regional taxation.1
- “Towards Strengthening the Fiscal Capabilities of ARMM,” INCITEGov (Policy Paper), 2007, accessed August 03, 2012, http://www.scribd.com/doc/38724841/Towards-Strengthening-the-Fiscal-Capa…
Natural Resource Management – 2003
There is no budgetary evidence for 2003 that the ARMM increased its revenue inlays from utilization of natural resources or from direct taxation of firms operating in the ARMM. The total ARMM budget in 2003 was 15.7 Billion pesos (around 375 million U.S. dollars). The regional revenues raised by the ARMM amounted to 7 million pesos (around 167,000 U.S. dollars). Hence, 99.955 of the ARMM budget came from the GRP.1
Natural Resource Management – 2004
There is no budgetary evidence for 2004 that the ARMM increased its revenue inlays from utilization of natural resources or from direct taxation of firms operating in the ARMM. The total ARMM budget in 2004 was 16.1 Billion pesos (around 385 million U.S. dollars). The regional revenues raised by the ARMM amounted to 11 million pesos (around 263,000 U.S. dollars). Hence, 99.93 of the ARMM budget came from the GRP.1
Natural Resource Management – 2005
The total ARMM budget in 2005 was 18.3 Billion pesos (around 437 million U.S. dollars). The regional revenues raised by the ARMM amounted to 6 million pesos (around 143 ,000 U.S. dollars). Hence, 99.96 of the ARMM budget came from the GRP.1
By all observable counts, the ARMM Regional Government was never able to establish any substantial control over mineral utilization nor derive any substantial income tax base from the firms operating in the ARMM.2