Press Release: FEF Statement of Support for the Passage of the Bangsamoro Basic Law

Foundation for Economic Freedom, Inc.

BOARD OF ADVISERS:

Gerardo Sicat

Cesar A. Virata

BOARD OF TRUSTEES:

Roberto De Ocampo Chairman Romeo Bernardo Vice-Chairman Calixto Chikiamco President Ernest Leung Treasurer Atty. Ricardo Balatbat III Corporate Secretary Anthony Abad Art Corpuz Eduardo Gana Felipe Medalla Vaughn Montes Simon Paterno Gloria Tan-Climaco Francis Varela Atty. Ricardo Balatbat III Executive Director

105 Philippine Social Science Center (PSSC) Commonwealth Ave., Diliman, Quezon City

Telefax: (632) 4532375 (Main Office) Tel No.: (632) 8939602 (Accounting)

Website: www.fef.org.ph Email: [email protected] / [email protected]

PRESS RELEASE

FEF STATEMENT OF SUPPORT FOR THE PASSAGE OF THE BANGSAMORO BASIC LAW

We, the Foundation for Economic Freedom, strongly support the passage of the Bangsamoro Basic Law (BBL). The Government’s herculean effort to put behind us a four-decade old, costly and painful civil strife and gain for us all the benefits of peace deserves our support. We believe that this can be a potential game changer in our economic landscape, not just in what is now called the Autonomous Region for Muslim Mindanao (ARMM), but for the entire country. Though there are risks along the way, it is well worth giving peace a chance. The legitimacy of the Moro wars for independence was the basis for the peace negotiations from the time of Marcos to the present. The Bangsamoro claim they are a separate nation with a distinct identity, culture and independent state (sultanates) with a long history of resisting the colonizers. Nations like this have the “right to self-determination” (RSD), according to the United Nations. The Organization of Islamic Conference (OIC) supported Nur Misuari and the Moro National Liberation Front in part because they supported the Bangsamoro fight for independence under the RSD and in part because they believed that the Muslims of Mindanao were under threat of genocide during martial law. Peace in the South can bring up Mindanao’s contribution to the gross domestic product (GDP). Mindanao has abundant primary resources, perfect agro-climatic conditions, lower wage rates (with the ARMM cost half of average labor cost in Mindanao), still lower power cost, and vast opportunities for growth and diversification through its BIMP-EAGA connec-tion. Investments have stayed away from Mindanao, even more so than the rest of the country, due to security concerns. As for opportunities in the ARMM, the region has the biggest areas of untapped natural resources, rich fishing grounds and fertile lands, the best beaches anywhere in the





Philippines or anywhere else, and closest cultural and historical links with Brunei, Indonesia and Malaysia which can allow the region to access new capital through Islamic financing as well as a new export market in the still growing halal industry. Further, the barter trade between Sulu and Malaysia is an economic tie that is centuries old and can be revived, with BIMP-EAGA and the initiatives being mounted as part of ASEAN 2015, fully backed by the national governments and the Asian Development Bank. The Bangsamoro will have even more powers than the ARMM government to help craft its own destiny. While the region has disadvantages largely due to the four decades of civil strife and neglect, it also has an important advantage -- starting fresh. It can learn from the history of flawed policies that have hurt the flow of investments and creation of needed jobs in the rest of the country -- rigid and costly labor policies, complex bureaucracies and red tape, a distorted fiscal incentive structure, a failed agrarian reform program and misguided environmental policies that choke the development of a responsible mining industry. As explained by FEF President Calixto Chikiamco in a workshop organised by the FEF/Philippine Center for Islam and Democracy, it may actually provide a model for the rest of the country, be the tail to wag the dog, the way Shenzen has shown the way for the rest of China. Investors may, by adapting their business models and organisational and management styles to the traditional leadership (datus) structures of the area, find that these can be better places to operate than in other places in the country. This is the encouraging lesson of Unifrutti of former Secretary Senen Bacani and the late Datu Paglas which have won international awards. Also, there is confidence in the current Moro Islamic Liberation Front (MILF), with the support of several political and traditional leaders particularly in Central Mindanao. The MILF leadership under Chair Murad is better prepared to take on the mantle of leadership of a civilian government. The MILF has successfully established the Bangsamoro Development Agency (BDA) which is tasked to prepare the Bangsamoro Development Plan; and the Bangsamoro Leadership institute (BLMI) which is putting together training programs for the Bangsamoro. The BDA and the BLMLI, chaired by civilians, are led by boards consisting of the MILF Central Committee and professionals. While all development matters are still decided by the MILF Central Committee, it is clear that the MILF has been preparing for civilian government over the last few years. The failure of the MNLF to govern the ARMM, under Misuari, has been in large part due to their lack of preparation to govern under a democratic system. This is not the case with the MILF, which has been working with government and





development partners to put in place programs such as the Sajahatra intended to provide services to its communities. To enhance the chances of success of the BBL, we urge the Government and the Business Sector to support the passage of the Bangsamoro Basic Law. The MILF leadership under Murad has invested political capital in the peace agreement. Should the Basic Law be watered down or not passed, the pragmatists in the MILF Central Committee will lose out to the fundamentalist faction which is supported by younger (and more aggressive) leaders who already feel that the original demands of the MILF have been greatly undermined during the peace negotiations. In the short term, before transition to the establishment of the Bangsamoro political entity, the business sector should assist in providing support for education. First, support adult literacy. Over half a million adults of ARMM are illiterate (more than a third of the voting population). When businesses are established in the Bangsamoro, labor will have to be imported from neighboring non-Bangsamoro provinces if the existing labor force is unskilled and illiterate. This is a condition that will breed more conflicts, as the affected citizens will lose out on job opportunities to those who have not suffered from the armed conflicts. Second, support short management training for professionals who can run public and private sectors. Apprenticeships and internships can be provided by the private sector. Third, engage the BDA, the BMLI and the Bangsamoro private sectors (chambers of commerce and business councils) to identify opportunities for collaboration. To ensure peace, stability and provide fertile ground for economic development in the region, we urge Congress to pass the Bangsamoro Basic Law consistent with the aspirations of our Bangsamoro brothers and sisters. For more information, please check our website: www.fef.org.ph , or contact the following:

Ethel Briones, Program Officer – [email protected] /+63 2 453 2375 Ranna Pintor, Program Officer – [email protected]/ +63 2 453 2375

http://www.fef.org.ph

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Press Release: FEF Statement of Support for the Passage of the Bangsamoro Basic Law