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Philippines
>> Regional Overview >> Philippines Overview ACTIVITY DATA SHEET
PROGRAM: Philippines
TITLE AND NUMBER: Accelerate the Economic Transformation of Mindanao, 492-001
STATUS: Completed
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $200,000 DA
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: None.
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2001Summary: The island of Mindanao has more than a third of the landmass of the Philippines, and is home to one-fourth of the country's population. The quality of life of the people of Mindanao has historically been well below national levels, but the island has potential for substantial and accelerated economic growth. USAID is implementing an aggressive, broad-ranging enterprise development program on the island to facilitate maximum participation of small farmers, fishermen, and small and microentrepreneurs in the economy, while at the same time carrying out various activities intended to improve the overall trade and investment environment on the island.
Enterprise development activities include: helping marginal farmers and fishermen access more lucrative markets; creating new jobs by attracting and facilitating the establishment of new businesses; and helping private banks develop the capability to profitably provide services to microenterprises. Activities aimed at improving the trade and investment environment on the island include: policy modification assistance; infrastructure development assistance; and various programs aimed at facilitating the establishment and optimal functioning of key "business support organizations" and equity investment funds. To help solidify the peace agreement between the Government of the Philippines (GOP) and the principal Muslim separatist organization, the Moro National Liberation Front (MNLF), USAID supports programs aimed at assisting former combatants develop the capability to make a living. The recent political turmoil in the Philippines and the change in Presidents makes it all the more important for the United States Government to support continuing efforts to encourage MNLF and other Muslim groups to maintain a negotiated peace.
Key Results: Given the major disruptions Mindanao faced during the year-the explosion of armed conflict between the GOP and the Moro Islamic Liberation Front (MILF-an MNLF splinter group); a series of highly publicized kidnappings; and the generally poor performance of the national economy associated with the country's political upheaval-satisfactory progress has been made toward attainment of the objective's goals. Good progress has been made in some areas; less than satisfactory results have been attained in others. The number of marginal farm and fishing families initiating commercial-level production of more lucrative products during the year was above 11,640, exceeding the target of 10,600. Beneficiaries included some 5,523 former MNLF combatants, a special target of USAID's Mindanao programs. Although new investment from USAID-supported investment promotion efforts improved from $58 million to $73 million in 2000, this was below the 2000 target of $250 million, reflecting the outbreak of serious violence that brought new investment in Mindanao virtually to a standstill. Mindanao's annual share of the total infrastructure budget increased from 23.75% in 1999 to 26.70% in 2000-the largest annual increase ever, and above the general target of 25% per year. In 2000, over 33,000 microenterprises accessed services from banks assisted by USAID to develop their capability to profitably service the microenterprise sector. This was more than twice the target, and triples the 1998 level. Rural banks' participation in USAID's programs has been so successful that rural banks throughout the country are clamoring to join.
Performance and Prospects: Progress has been made in transforming Mindanao's economy since USAID began focusing economic growth resources there in the early 1990s, and especially since this objective was formally adopted in 1995. This period has seen sustained increases in annual investment levels, numbers of jobs, value of exports, and production of higher value products. There has been a major expansion of public infrastructure. Telephone density has increased at least twenty-fold. The peace agreement reached with the MNLF in 1996 made possible an expansion of opportunities for economic prosperity to areas of the island where, because of continuing strife, this previously had been impossible. USAID's very successful programs aimed at facilitating re-entry of former MNLF combatants into the economic mainstream have been crucial to this effort, and have also helped contain the violence in many areas. However, the recent escalation of the armed conflict between the GOP and the MILF (which was not party to the 1996 peace agreement) resulted in significant slowdowns in new investment and job creation during 2000.
Performance in 2001 will be affected by the general poor performance of the national economy and the degree to which progress is achieved in managing the continued conflict in parts of Mindanao. Nonetheless, significant program accomplishments are expected. It is expected that at least 2,000 additional former MNLF combatants will enter and graduate from current programs aimed at helping them obtain the capability to make a reasonable living. This will bring the total number of former combatant graduates from this program to 13,000. Mindanao's share of government infrastructure resources has been disproportionately low in the past, but should approach 30%, thereby helping to ensuring progress of key infrastructure activities. Several Muslim business support organizations in western and central Mindanao will be strengthened and linked into larger associations that can speak for the Muslim business community, and will provide a full range of needed services for their members.
Possible Adjustments to Plans: Activities associated with the current phase of the Mindanao program will end in 2001. Activities intended to strengthen the policy advocacy capabilities of key business support organizations on the island will be continued under objective 492-002. Support for peace prospects will be included in a new special objective (492-010). This support will involve a new, follow-on program that consolidates the best practices of two prior programs aimed at reintegrating former combatants and communities into the productive economy. USAID's highly successful Microenterprise Access to Banking Services in Mindanao (MABS-M) Program will be continued under objective 492-003, and expanded more aggressively into Muslim areas.
Other Donor Programs: Following USAID's lead-and in spite of the upsurge in armed conflict in 2000-all major donors have continued to focus on Mindanao. The level and type of USAID interaction with donors varies. For donors with limited on-the-ground program development and management capability (i.e., the United Kingdom, Italy, New Zealand), USAID provides assistance in identifying, planning, and implementing suitable assistance activities that are financed by those countries. For countries and organizations with greater on-the-ground planning and implementation capability, such as the World Bank and Australia, frequent meetings are held to discuss how programs might support each other. For example, USAID has provided considerable assistance to local government units in developing and submitting proposals for small infrastructure project funding under the World Bank-sponsored Social Fund, which focuses on the Muslim areas of Mindanao.
Principal Contractors, Grantees, or Agencies: Louis Berger International, Inc. is principal contractor for trade and development activities on Mindanao, and one of two major contractors for the prior programs focused on former combatants. (The second contractor, under an Office of Transition Initiatives-funded activity, was Development Alternatives, Inc.) Chemonics, Inc. is the contractor for the Microenterprise Access to Banking Services-Mindanao Program. Philippine counterparts include the Presidential Advisor for National Development, the Southern Philippines Council for Peace and Development, and the Rural Bankers' Association of the Philippines.
FY 2002 Performance Table
Philippines: 492-001
Performance Measures:
Indicator FY97 (Actual) FY98 (Actual) FY99 (Actual) FY00 (Actual) FY00 (Plan) FY01 (Plan) FY02 (Plan) Indicator 1: Families initiating commercial production of more lucrative products 7,959 13,472 13,906 11,640 10,600 10,600 NA Indicator 2: Level of USAID-facilitated private investment per year 247 88 58 73 150 125 NA Indicator 3: Microenterprises and small producers receiving financial services from formal institutions (depositors and borrowers) 2,000 4,000 12,220 34,127 16,000 23,000 NA Indicator 4: Value of higher value products shipped from Mindanao 4.00 3.10 2.80 2.90 3.00 4.00 NA Indicator 5: Mindanao's share of the national government's infrastructure development budget 23.60 23.80 23.75 26.70 30.0 25.0 NA Indicator Information:
Indicator Level (S) or (IR) Unit of Measure Source Indicator Description Indicator 1: IR Number of farm/fishing families Quarterly and Semestral Reports from Contractor (GEM); Mindanao State University Survey NA Indicator 2: IR US$ million Project monitoring forms and reports for Contractor (GEM) NA Indicator 3: IR Number of microenterprises and small producers receiving financial services from formal institutions (depositors and borrowers) Microenterprise Access to Banking Services in Mindanao (MABS-M) monitoring reports accomplished by participating rural banks NA Indicator 4: IR US$ billion National Statistics Office (NSO) Total value of higher value products (i.e. all manufactured goods, all processed agricultural goods, and all agricultural products except corn, rice, and coconut) Indicator 5: IR Percent share of national infrastructure budget Project reports from the Growth with Equity in Mindanao (GEM) Program contractor and from the GOP Mindanao Economic Development Council (MEDCO) NA U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 26,749 DA 12,077 DA 14,672 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA 75,817 MAI 75,000 MAI 817 MAI 0 DCA 0 DCA 0 DCA Fiscal Year 2000 3,500 DA 10,908 DA 0 CSD 0 CSD 0 ESF 0 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA 0 MAI 67 MAI 0 DCA 0 DCA Through September 30, 2000 30,249 DA 22,985 DA 7,264 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA 75,817 MAI 75,067 MAI 750 MAI 0 DCA 0 DCA 0 DCA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA 0 MAI 0 DCA Planned Fiscal Year 2001 NOA 200 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA 0 MAI 0 DCA Total Planned Fiscal Year 2001 200 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA 0 MAI 0 DCA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 0 DA 0 DA 30,449 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA 0 MAI 0 MAI 75,817 MAI 0 DCA 0 DCA 0 DCA
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Last Updated on: May 29, 2002 |
