The document discusses four observations about economic development in Bangsamoro: 1. Bangsamoro has strengths like natural resources and location that provide opportunities under ASEAN and BIMP-EAGA agreements. 2. Economic development should use three parallel tracks: small producer models, large corporate farms, and a combination. 3. Investors should learn from early successful projects like partnering with local leaders and respecting cultural norms. 4. Critical enablers for development include investment agencies, protection policies, flexible investment policies, financing, and a development corporation.

1. Bangsamoro Economic Development: Four Observations
Cielito F. Habito
Ateneo de Manila University
Chief of Party, USAID TRADE Project

2. 1.Bangsamoro has unique strengths and opportunities, especially under AEC/BIMP- EAGA.
2.Economic development will be best approached on three parallel tracks (small, large scale & combination of both).
3.Investors must study the ‘success secrets’ of early movers.
4.Critical enablers must be put in place.
Four Observations on Bangsamoro

3. 1. Bangsamoro’s unique strengths…
Abundant natural wealth (agriculture, marine, mineral resources)
Superior agro-climatic conditions (e.g., sheltered by Mt. Apo from Pacific typhoons, even rainfall, fertile soils)
Lower wage rates (official and de facto – up to P200 less than Luzon daily wage)

4. …and opportunities
Islamic population comprise the majority in SE Asia, even as they are minority in Philippines & Mindanao
-The ASEAN market is an Islamic market
-Bangsamoro/Mindanao is gateway to BIMP-EAGA
Global Halal market is among most rapidly growing market segments

5. 2. Three-track economic development
Small producer-based model
-Government support-intensive
-Effective clustering mechanism needed (Agumil model; NGO/PO-managed)
-Financing mechanism is critical
Large-scale corporate farm model
-Consolidate land holdings (La Frutera)
-Malaysia FELDA/FELCRA model (D-M-T)
Combination: Nucleus Estate model

6. 3. ‘Success secrets’ of early movers
Partner with influential & progressive local leader
Invest effort in trust & confidence building
Work within cultural norms of work force and community

7. 4. Critical Enablers
Professional investment promotion & facilitation agency
Investment protection: investment insurance schemes (covering both domestic & foreign investors)
More flexible and liberal investment policy environment (vs. national)
Financing facilities (incl. Islamic finance)
Bangsamoro Development Corp?

8. Assalammu alaikum