1. Peace is always been big capital business in the ARMM and entire Mindanao. The major players are Government officials, politician, NGO, donors, and rebels?
Investment and peace in ARMM
TUESDAY, 07 FEBRUARY 2012 19:07 MERCEDES B. SULEIK / FREE ENTERPRISE
THE Mindanao problem has been festering for far too long. Many of us do not fully understand it nor the peace processes that have been continually bruited about by every administration. Neither do we appreciate what is necessary to bring peace and development to Mindanao.
In two fora sponsored by the Eisenhower Fellows Association of the Philippines (Efap), efforts to bring about an understanding of the Mindanao conflict and the developmental requirements of the region were held at the Ayala Museum last Oct. 7, 2011 and Jan. 20, 2012.
In October 2010, the issue tackled was what the paper presentor, Mr. Ariel C. Fernandez, dubbed as “The Other 50 Percent of the Mindanao Conflict and the Challenges Ahead” in which was discussed the proposal that all the peace talks in Mindanao could solve at best only 50 percent of the conflict.
The other half, Mr. Hernandez opined, is about Demobilization, Community and Enterprise Development, and Reconciliation, which is different from the Demobilization, Disarmament, and Reintegration that was once offered by the Arroyo administration. He emphasized the challenge of delivering the basic and social services to the communities affected by violent conflict, and the challenge to the business sector to invest in the conflict-ridden areas even as the peace agreement is still shaping up. When people can participate in business and social enterprises, it will be the most effective demobilizing mechanism and will even be the answer to the disarmament issue.
Quite understandably, the business sector is wary of investing in conflict-ridden areas, and the question of whether or not it is possible to develop business models for expansion and replication from existing socil enterprises around Mindanao with cooperatives and NGOs. Also, it is also asked if the time is ripe for business sector to actively participate in building a constituency of entrepreneurs as a key foundation to sustaining peace, and whether the business sector would be willing to share the production technologies and offer these to the market.
The second forum last January picked up from the first, and covered the topic “Opportunities Amid Conflict – A Forum on Business Opportunities in ARMM.” Organized again by Efap together with the Australian Agency for International Development (AusAID), the forum reached out to several business groups such as the Makati Business Club, the Financial Executives Institute, and the Management Association of the Philippines as well as to the interested public. The keynote speech of ARMM OIC Governor Mujiv Hataman stated that “Investing in the ARMM is good for business, good for peace,” and presented in the forum his plans on how to institute reforms in the region with the support of P8.59 billion that the current administration promised to invest in the ARMM to fast-track its economic development.
A panel of speakers shared their experiences on doing business in the ARMM. Mr. John Perrine, Chair of Unifrutti Philippines (who by the way claimed that he chose Filipino citizenship, thus emphasizing his commitment to this country), gave his thoughts as CEO of one of the country’s leading banana exporters, and how it is actually expanding its operations in ARMM. He debunked the general impression that ARMM is unsafe for business, saying that it was no more unsafe than other places in Luzon, and that he and his family have lived there in complete freedom of movement without the need for bodyguards.
Another ARMM industry leader and President and CEO of EA Trilink Corp., Dr. Alfredo Panizales, provided insights from his experience in managing the only franchisee and licensee to provide telecommunication facilities and services in the ARMM. He said that EA Trilink also implements the Rural Information and Communications Technology Program of the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area for the entire Mindanao and Palawan.
Two other panelists, Dr. Fermin Adriano, World Bank Consultant for Mindanao; and Mr. Ishak Mastura, former Chair of BOI ARMM also shared their insights for Mindanao peace and development.
Dr. Adriano helped to formulate the World Bank strategy, which led to the creation of the multi-donor Mindanao Trust Fund. He gave a list of 11 successful companies, some of which were foreign investors, with his observations on these companies operating in the conflict-affected areas (CAA), and some lessons obtaining from them. To cite a few: (1) Conflict did not prevent private investments in Mindanao’s CAAs; (2) Security and land access are critical investment constraints; (3) Risk-sharing through greater state participation; and (4) There is no single model for development.
Mr. Mastura reported that as of the end of last year, private investments in the ARMM had for the first time reached the P1-billion mark, attributing the increase in investments to “gains in the peace process.”
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