Metro Manila (CNN Philippines) — The National Economic and Development Authority (NEDA) believes that the passage of the Bangsamoro Basic Law (BBL) could buoy economic growth in Muslim Mindanao.
In a study, the agency found that the bill could generate up to 12.8% economic growth in the region.
A triennial study by the Philippine Statistics Authority (PSA) revealed that the poverty incidence rate in the Autonomous Region in Muslim Mindanao (ARMM) stood at 48.7% in 2012. That figure is a significant increase from the 39.9% rate in 2009.
The region contributed to just 0.74% of the country’s gross domestic product (GDP) in 2013.
In stark contrast, Philippine GDP grew by 7.2% during that very same year.
Under the government’s 2015 Budget Priorities Framework, the province of Sulu was categorized as a Focus Geographical Area (FGA) with “high poverty magnitude,” while the provinces Lanao del Sur and Maguindanao were classified as FGAs with high poverty incidence.
“The plan is expected to push the regional economy to achieve double-digit growth rates in the first five years of the creation of the Bangsamoro,” NEDA Regional Office 11 Director Maria Lim said in a statement.
NEDA is aiming for the region’s GDP per capita to rise by at least 22% to P38,000 to P40,000 from the current P29,608.
“This will further narrow the regional disparities between the Bangsamoro regions and the rest of Mindanao,” Lim added.
According to NEDA, various business leaders have pledged investments totaling P16.3 billion, contingent to the ratification of the BBL.
“Although this legislation will not cure all the ills of the present situation, I believe the negotiators on both side sincerely tried their best to find a fair and lasting peace in Mindanao,” said Vicente Lao, chairman of the Mindanao Business Council (MinBC).
