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Philippines
>> Regional Overview >> Philippines Overview Program Data Sheet
492-010
USAID MISSION: Philippines
PROGRAM TITLE: Conflict Resolution in Mindanao (Pillar: Democracy, Conflict, and Humanitarian Assistance)
STRATEGIC OBJECTIVE AND NUMBER: Prospects for Peace in Mindanao Strengthened, 492-010
STATUS: Continuing
PLANNED FY 2002 OBLIGATION AND FUNDING SOURCE: $5,200,000 DA; $12,300,000 ESF
UNOBLIGATED PRIOR YEAR FUNDS AND FUNDING SOURCE: $3,211,000 ESF
PROPOSED FY 2003 OBLIGATION AND FUNDING SOURCE: $3,750,000 DA; $15,000,000 ESF
INITIAL OBLIGATION: FY 2001 ESTIMATED COMPLETION DATE: FY 2004Summary: This program is the principal means through which USAID is assisting the Government of the Philippines to consolidate the still fragile peace in Mindanao, and to ensure that Mindanao does not become a source of recruits for terrorist organizations. USAID addresses threats to U.S. and global interests posed by the separatist conflict in Mindanao through targeted assistance for individuals and communities in conflict-affected areas, and helping to bring about a general and equitable expansion of economic opportunity for the people of Mindanao. Experience in Mindanao has shown that broad social, political and economic development is critical to the success of efforts to undercut groups seeking to continue the conflict, promote destabilization, or engage in terrorism.
Activities under this program are grouped into four components:
- assistance for former combatants and their communities;
- strengthening of a decentralized, transparent governance framework in conflict-affected areas;
- expansion of availability of sustainable financial services for microenterprises; and
- development of economic infrastructure in conflict-affected areas.
Activities will mitigate potential conflicts by helping individuals and organizations in conflict-affected areas become financially self-sufficient and helping government be more responsive to the needs of the people.
Inputs, Outputs, and Activities: USAID provides technical assistance and training, equipment to ex-combatants and communities for start-up farming and seaweed culture, and equipment for small infrastructure projects.
FY 2002 Program: Major activities include—
- assisting approximately 8,000 former combatants of the Moro National Liberation Front (MNLF) to develop the capability of making a living for themselves and their families. USAID will provide the former combatants all inputs to initiate commercial-level production of corn, rice, or seaweed, as well as training, technical support, and marketing assistance. This assistance will bring the total number of former MNLF combatants assisted since 1997 to 21,000, or approximately 75% of all former MNLF combatants in need of livelihood assistance. USAID will provide post-harvest facilities to 300 MNLF communities. If the Government of the Philippines and the Moro Islamic Liberation Front (MILF) make sufficient progress in peace talks, USAID could provide assistance to up to 700 former MILF combatants;
- assisting local governments in Mindanao to improve public services, ensure transparency, and reduce corruption, by developing their capacity to exercise authorities delegated to them by recent amendments to the "Organic Act" that established the Autonomous Region of Muslim Mindanao;
- assisting 25 rural banks in Mindanao to profitably provide loan and deposit services to microenterprises on a continuing basis. This will bring the total number of rural banks assisted since 1998 to 85. These institutions will provide microloans to 22,000 additional microenterprises. Particular attention will be paid to rural banks that are located in conflict-affected areas, or which provide services to members of religious and cultural minorities. The program will develop a new bank management software program to facilitate proper management of microenterprise clients. Microenterprise assistance may be extended under this program to include credit unions in Mindanao; and
- assisting 30 MNLF communities to build small infrastructure facilities such as water systems, jetty improvements, bridges, and culverts. The program strengthen seven business support organizations that help to sustain economic progress in conflict-affected areas—the Muslim Business Forum, the Seaweed Producers' Association, the Tawi-Tawi Chamber of Commerce, the Cotabato City Chamber of Commerce, and the Mindanao Business Council.
Planned FY 2003 Program: In FY 2003, USAID’s activities will increase the number of rural banks and credit unions offering services to microenterprises; increase the number of former MNLF and MILF combatants receiving livelihood assistance by 8,000; provide community infrastructure projects to 500 communities in the conflict areas; and establish an additional five business-support organizations that will provide services in conflict-affected areas. A strategy review planned for 2002 will identify other areas of assistance for social reconciliation and conflict mitigation such as land, education, and women’s issues.
The planned FY 2003 program includes funds from USAID’s conflict prevention initiative.
SUBMISSION OF THIS PROGRAM DATA SHEET CONSTITUTES FORMAL RENOTIFICATION OF USAID’S INTENT TO OBLIGATE FY 2002 RESOURCES FOR THE ACTIVITIES DESCRIBED ABOVE. Performance and Results: FY 2001 assistance enabled 7,000 former MNLF combatants to make the transition from guerilla fighter to productive farmer--bringing the total number of former MNLF combatants provided with the capability to make a reasonable living to 13,000. An assessment carried out by an independent organization determined that almost 95% of USAID’s program "graduates" were still carrying out the production activities in which they had been trained. The assessment also determined that USAID's program had been a key factor in dissuading these former combatants from again taking up arms against the government, or joining the Abu Sayyaf terrorist group. USAID assisted 30 rural banks to develop the capability of profitably servicing microenterprises, with these banks providing microloans to 10,000 borrowers. By the end of the program, an estimated 29,000 former combatants in conflict-affected areas will have been assisted in becoming productive members of the economy; about 100 rural banking institutions will be providing services to 50,000 microenterprises; 50 community infrastructure projects are projected to have been completed; 12 business support organizations will have been established or assisted; and approximately 50 local governments will have adopted practices that improve local governance.
Principal Contractors, Grantees, or Agencies: Program activities are implemented under contracts with Louis Berger International Inc., and Chemonics Inc., and through grants to The Asia Foundation and local non-government organizations. The private sector, local governments, and the national government match much of the funding provided by USAID. Principal Philippine Government agencies working with USAID include the Office of the Presidential Advisor for Regional Development, the Mindanao Economic Development Council, the Southern Philippines Council for Peace and Development, the Department of Agriculture, and the National Economic and Development Authority. The Rural Bankers' Association of the Philippines is USAID’s principal microfinance partner; the World Council of Credit Unions may participate in the future.
US Financing in Thousands of Dollars
492-010 Prospect for Peace in Mindanao Strengthened DA ESF Through September 30, 2000 Obligations 0 0 Expenditures 0 0 Unliquidated 0 0 Fiscal Year 2001 Obligations 1,500 0 Expenditures 0 0 Through September 30, 2001 Obligations 1,500 0 Expenditures 0 0 Unliquidated 1,500 0 Prior Year Unobligated Funds Obligations 0 3,211 Planned Fiscal Year 2002 NOA Obligations 5,200 12,300 Total Planned Fiscal Year 2002 Obligations 5,200 15,511 Proposed Fiscal Year 2003 NOA Obligations 3,750 15,000 Future Obligations 0 0 Est. Total Cost 10,450 30,511
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Last Updated on: May 29, 2002 |
