MANILA, June 6 (Xinhua) -- Maintaining peace, supported by increasing farm profitability, diversifying income sources, enhancing access to basic social services, and upgrading infrastructure, will accelerate poverty reduction in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) in the southern Philippines, the World Bank said in a recent report.
Following decades of sluggish economic growth, the Philippines Economic Update: Beyond The Numbers: Sustaining Poverty Reduction in BARMM said the region expanded rapidly in 2017. Between 2017 and 2019, the region averaged growth of 7.9 percent, outpacing the rest of the Philippines, which grew an average of 6.4 percent before the COVID-19 pandemic.
The report said that poverty has declined rapidly in the region for the first time in three decades, helped by income growth and government and private transfers.
The region's poverty level dropped to 37.2 percent in 2021 from more than 60 percent in 2018, which means approximately 892,000 people escaped poverty between 2018 and 2021.
"Diminished conflict has empowered farmers and entrepreneurs to invest more in their ventures, resulting in increased incomes and generating more income opportunities for workers," said World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand Ndiame Diop, adding that maintaining this peaceful trajectory is vital for the region's long-term prospects for development.
According to the report, BARMM is home to around 5 million people, who have endured persistent conflicts. Agriculture is the primary income source for most of the region's population, and sustainable poverty reduction will require enhancing agricultural productivity and raising farmers' incomes. Diversifying economic activity to create quality jobs is essential to improving the region's economic prospects.
The decline in poverty has also coincided with implementing the Bangsamoro Organic Law in 2018, establishing BARMM as an autonomous administrative region, significant increases in financial support from the national government, and consistent economic growth.
Despite the recent gains, the poverty rate in BARMM in 2021 was more than double the national poverty rate. In addition, the near-poor population increased to 36 percent in 2021 from 22 percent in 2018.
"Numerous households remain in fragile economic conditions despite having risen above the poverty line," said World Bank Senior Economist Nadia Belhaj Hassine Belghith. "This situation leaves them vulnerable to sliding back to poverty when confronted with economic shocks such as natural calamities, underscoring the continuing need for social protection and initiatives to improve livelihoods," she warned.
The report said that improving access to essential services and infrastructure can help ensure rapid poverty reduction in the BARMM. Around 28 percent of the region's population still depends on unimproved water sources and 37 percent use unsafe sanitation facilities. Approximately 20 percent of the population lack access to grid electricity in their homes or buildings, starkly contrasting to the 3 percent in the rest of the country. ■
