Posted on Wednesday, August 28, 2002

Mindanao’s cycle of unrest unbroken

By Dave L. Llorito, Research Head

First of two parts

A dearth in education and health services, and a rising cadre of young, angry men are important issues on the sidelines of the Mindanao Business Conference that opens in Surigao City today.

The conference is an excellent opportunity for Mindanao to showcase its potential as an island-economy. But even as residents of southern Philippines tout their strengths, socio-economic indicators also raise concerns about a growing underclass that provides fresh recruits for a long-running separatist insurgent movement.

In 2001, Mindanao accounted for 18 percent of the country’s gross domestic pro-duct; 34 percent of the country’s gross value added (GVA) in agriculture, fishery and forestry; 14 percent of the country’s GVA in industry; and also 14 percent of the country’s GVA in services.

Mindanao is particularly known as the country’s producer of export products like pineapples, giant cavendish bananas, asparagus, palm oil, rubber, fishery products, coconut oil and other coconut by-products, activated carbon, and other high value agribusiness products.

Competitive edge

The island economy, however, could contribute more to the national pie if concerted efforts are made to tap its vast economic potentials. The Growth with Equity in Mindanao (GEM), a development assistance program funded by the United States Agency for International Development (USAID) claims that the island economy possesses competitive edges in terms of economic resources, location advantages, human resources, improved infrastructure, and natural resources.

Mindanao’s rich soil and abundant rainfall allow the production of a wide variety of food and industrial crops year-round.

Its mountains are rich with metallic and non-metallic mineral resources, including gold, nickel, lead, limestone, and manganese. It has a long coastline that harbors rich marine resources.

Over the years, development assistance and public investments in ports and road networks have significantly improved Mindanao’s infrastructure stock, thus reducing the costs of doing business and improving competitiveness of Mindanao enterprises.

Business opportunities

These advantages have attracted a growing number of local and multinational investors.

Mindanao has a lot more to offer to entrepreneurial souls. (TABLE 1) Across the island, there are opportunities for high value fruit and vegetable production and processing; seaweed farming and processing; light manufacturing; tourism development; telecommunications, energy, and water resources development; port and air port development; furniture and wood products; industrial tree and fruit tree plantations; and coconut coir and activated carbon manufacturing.

Governance woes

To tap these potentials, local and national leaders have to address crucial problems.

Mindanao lags badly in the delivery of basic social services like education, health services, facilities and roads.

While main urban centers boast an impressive road networks and even Basilan island now has the makings of an airport, some areas are so isolated people hardly feel the presence of government.

Government and private organizations agree that effective governance is important in the Mindanao peace process, a critical part of any growth and development blueprint.

Access to education

Table 2 shows the participation rate of children at the elementary level in Mindanao in both public and private schools in schoolyear (SY) 1997 to 2000. The table shows that Mindanao’s participation rate stood at 93 percent, low compared to Visayas’ and Luzon’s 97 percent. Nevertheless, Mindanao’s participation rate is close to universal and this could possibly be attributed to the “free” education provided by the public schools.

Source of basic data: MEDCo and DECS

When Mindanao’s participation rate at the secondary level is considered, however, the picture drastically changes. As shown in Table 3, the national participation rate for secondary education stood at 65 percent — while Mindanao had only 51 percent.

When we consider the regional breakdown, the Autonomous Region in Muslim Mindanao (ARRM) has the lowest participation rate of 32 percent.

What alarms is that when compared to the previous figures in 1997-1998, participation rate for all regions in Mindanao have been drastically going down, indicating that less and less number of children are entering high school. Why?

Source of basic data: MEDCo and DECS     

The figures on drop out rates as well as cohort survival rates for elementary and high school levels should provide the answer. As shown in Table 4, Mindanao regions consistently have a high elementary drop out rate of 11-12 percent. The national average is only seven to eight percent. The same is true for high or secondary levels (Table 5).

Within Mindanao, ARRM has the highest drop out rates for both elementary (20 percent) and secondary (16 percent) levels.

The Filipino Report Card, a World Bank document, cites illness and physical disability as the primary reason, followed by economic reasons (e.g. high expenses, the child is needed to help the family). The Report Card monitors the performance of agencies that deliver social services from the beneficiaries’ perspective.

Source of basic data: MEDCo and DECS     

Source of basic data: MEDCo and DECS     

High drop out rates for Mindanao regions mean that a significant number of youth are disadvantaged in the job market.

As shown in Table 6, only 56 percent of those who enter Grade 1 were able to finish elementary. This figure is again low as compared to the national figure of 69 percent or Luzon’s 76 percent and Visayas’ 65 percent.

Cohort survival rates for elementary are especially worse in Western Mindanao, (55 percent) and ARMM (33 percent). Among those children who were able to enter high school, Mindanao again posted the lowest survival rate of 66 percent as compared to the national figure of 69 percent. It may be no coincidence that the two regions are known strongholds of the extremist Abu Sayyaf and other armed separatist groups.

Drop out  rate refers to students who do not finish the school year                    

Source :  DECS                                                    

Quality problem, too

Statistics on participation, drop out rates, and cohort survival rates only depict quantity. Available statistics on “quality” also point to the overall low performance of Mindanao’s education sector.

As shown in Table 8, most Mindanao regions ranked low in the results of the National Elementary Assessment Test (NEAT) and the National Secondary Assessment Test (NSAT). The government administers these tests to assess the performance and quality of instruction given by schools all over the country. Mindanao regions also fared badly in science scholarship examinations given yearly by the Department of Science and Technology (Table 9).

Source: Human Development Report 2000                                          

Source: MEDCO                                  

Access to health services and facilities. Government statistics on people’s access to health-related services and facilities also show that Mindanao residents are generally disadvantaged compared to those in Luzon and the Visayas.

Table 10 shows that regions in Luzon generally have higher access: 42 percent of residents have access to health facilities; 79 percent have access to safe drinking water; and 72 percent have access to sanitary toilet facilities.

Access in the Visayas is generally lower compared to Luzon but higher when compared to Mindanao. Thirty-five percent of Visayas residents have access to health facilities; 64 percent have access to safe drinking water; and 63 percent have access or own sanitary toilet facilities. People in Mindanao have the lowest access: 35 percent for health facilities, 58 percent for safe drinking water; and 63 percent for toilet facilities. It is only in access to toilet facilities where Mindanao is at par with the Visayas.