(Part II)

In last weeks column I wrote about the Mindanao economic corridor that occupies the space between the cities of General Santos and Cagayan de Oro,encompassing the SOCCSKSARGEN, Davao, and Northern Mindanao Regions. Empowering the 15 million residents of this corridor, who respresent 12.5 percent of our nation’s economy, and creating opportunities for the other 10 million of Mindanao will be vital in sustaining expanded inclusive economic growth.

In this week’s column I would like to focus on how this corridor and the rest of the Mindanao economy will play a crucial part of the Philippine growth story, and the country’s participation in the larger ASEAN Economic Community.

First off, it bears noting that when we speak of the economy, we do not deal with mere numbers such as Gross Domestic Product, or the Gross National Income number used by the World Bank.

These numbers the total productive output of a people, the enterprises they are organized in that create the products and services. Thus, how productively the people perform, that is, how much value created create from the skills and resources we hold, engage or trade with, will be reflected in these figures.

In our context, the reality is that we still have about 15-percent under the official poverty line, with the risk of more falling into poverty due to various factors. The imperative, therefore is for all levels of government to provide the policies that encourage the economic growth of the people within the economy.

These include programs that encourage business expansion and upscaling and the soft and hard infrastructure, often through government spending, that can build and sustain inclusive growth of a people in their respective economies across all regions.

That said, Mindanao's larger role and contribution in the Philippine story can be felt in three vital areas: renewable energy, expanded food production and responsible mineral extraction and production. These are areas where the island has comparative advantages that must be capitalized on to drive the growth of local economies and better opportunities for residents, as well as provide necessary products for the rest of the country.

In terms of energy, Mindanao can take on more renewable energy from hydroelectric, solar and geothermal sources to reduce the islands, and, in turn, the nation’s dependence on imported fossil fuels. Getting new renewable energy projects online is therefore vital to achieving this goal.

As I have written in numerous past columns, expanded, climate-smart food production is essential to assure the country of sufficient food supply, especially in the face of looming El Niño and other disasters, as well as assure the majority of Filipinos that their food supply is affordable in order to lower inflation.

Responsible mining will be vital to tap our substantial sources of natural mineral wealth in a manner that strengthens local communities and mitigates negative effects on the environment in the spirit of sustainable development.

Apart from these three areas, I believe that a key enabler that spurs inclusive growth is the expansion of opportunities for growing local businesses. Policies and programs will be needed to boost the capability of this corridor and the larger Mindanao economy, without which integration to the ASEAN economic community, sustaining upper middle income status may be hard to achieve.