regional development agenda (2010-2020)

REGIONAL DEVELOPMENT AGENDA

2010-2020

CaragaCaragaCaragaCaraga::::

The Fishery, Agro-forestry, Mining and Eco-tourism

(FAME) Center of the Philippines(FAME) Center of the Philippines(FAME) Center of the Philippines(FAME) Center of the Philippines

NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY

Caraga Administrative Region (Region XIII)

Part/Section

Messages

Foreword

Regional Development Agenda

A. Social Equity Agenda

B. Growth Agenda

C. Infrastructure Development Agenda

D. Environmental Protection Agenda

E. Private Sector Partnership Agenda

F. Resource Generation Agenda

Technical Notes

A. Analysis of the Planning

1. Demography

1.1 Population

1.2 Health and Nutrition

1.3 Education and Technical Skills

1.4 Labor and Employment

1.5 Poverty Situation

2. Physical Resources

2.1. Geographical Location

2.2. Land Area and Political Subdivisions

2.3. Hierarchy of Settlement and Functions Roles of LGUs

2.4. Ancestral Lands

2.5. Topography and Slope

2.6. Key Biodiversity Areas (KBAs)

2.7. Eco-Tourism Destinations

2.8. Mineral Resources

2.9. Water Resources

2.10. Climate and Weather

2.11. Natural Hazards

3. Economic Performance

3.1. Macroeconomic Performance

3.2. Agricultural Production

3.3. Agrarian Reform

3.4. Forest Management

3.5. Infrastructure and Utilities

3.6. Local Governance

B. Desired Scenario

1. Reformulated Vision

2. Development Challenges

3. Kay Strategies

Contents CARAGA REGIONAL DEVELOPMENT AGENDA 2010-

Title

genda

Social Equity Agenda

Infrastructure Development Agenda

Environmental Protection Agenda

Private Sector Partnership Agenda

Resource Generation Agenda

Analysis of the Planning Environment

Population

Health and Nutrition

Education and Technical Skills

Labor and Employment

Poverty Situation

Physical Resources

Geographical Location

Land Area and Political Subdivisions

Hierarchy of Settlement and Functions Roles of LGUs

Ancestral Lands

Topography and Slope

Key Biodiversity Areas (KBAs)

Tourism Destinations

Mineral Resources

Water Resources

Climate and Weather

Natural Hazards

Economic Performance

Macroeconomic Performance

Agricultural Production

Agrarian Reform

Forest Management

Infrastructure and Utilities

Local Governance

Reformulated Vision

opment Challenges

Kay Strategies

ontents -2020

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Contents CARAGA REGIONAL DEVELOPMENT AGENDA 2010

Part/Section

List of Figures

1 Poverty Incidence Among Families,

Philippines & Regions, CYs 2000, 2003, 2006

2 Subsistence Incidence Among Families,


3 Poverty Incidence Among Families

Philippines, Caraga and Provinces, CYs 2000, 2003, 2006

4 Magnitude of Poor Families

Philippines & Caraga Region & Region’s

of the Philippines, CYs 2000, 2003, 2006

5 Industry Share to GRDP, Caraga 2008

6 Percentage Share of Sub-

List of Tables

1 Population, Annual Population Growth Rates,

Density by Region Census Years 1995, 2000 & 2007

2 Population, Density & Growth Rates by Region, Province & Highly Urbanized City:

Population Censuses 1995, 2000 & 2007

3 Mountain Rages, Caraga Region

4 Gross Regional Domestic Product/Gross Value Added & Growth Rates at constant (1985) Prices, in ‘000 Pesos, Caraga Region, 2005

5 Growth Rates of Gross Regional Domestic Product by Region

at constant (1985) prices, CYs

6 Per Capita Gross Domestic Product by Regional constant (1985) prices,

in pesos, CYs 2007 and 2008

CARAGA REGIONAL DEVELOPMENT AGENDA 2010-2020

Title

Poverty Incidence Among Families,


Subsistence Incidence Among Families,


Poverty Incidence Among Families,

Philippines, Caraga and Provinces, CYs 2000, 2003, 2006

Poor Families,

Philippines & Caraga Region & Region’s Share (in %) of Poor Families

, CYs 2000, 2003, 2006

Industry Share to GRDP, Caraga 2008

-sectors to the GRDP, 2005-2008

Annual Population Growth Rates,

Census Years 1995, 2000 & 2007

Population, Density & Growth Rates by Region, Province & Highly Urbanized City:

Population Censuses 1995, 2000 & 2007

Caraga Region

Gross Regional Domestic Product/Gross Value Added & Growth Rates at constant (1985) Prices, in ‘000 Pesos, Caraga Region, 2005-2008

Growth Rates of Gross Regional Domestic Product by Region

at constant (1985) prices, CYs 2005-2006, 2006-2007 & 2007-2008

Per Capita Gross Domestic Product by Regional constant (1985) prices,

in pesos, CYs 2007 and 2008

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1

Caraga Regional Development Agenda

2010-2020

“Building Caraga as the Philippines’ Center of FAME (Fishery, Agro-forestry, Mining & Eco-tourism) by 2030”

Caraga Administrative Region or Region XIII is typical of the paradox of poverty amidst bounty.

Blessed with abundant natural resources and endowed with an extensive coast of enthralling beauty and biodiversity, the Region has attracted exploitative industries that stripped Caraga of its resources without plowing back the benefits of production to the local economy. For decades, the Region has supplied the rest of the country and even the world with raw materials that propelled their economies towards industrialization and rapid urbanization. Being a mere supplier of raw materials, Caraga has been left at the bottom rank of the development ladder, with its people barely receiving a share from the extracting industries they have enriched. Caraga today is still a resource-rich region mired in poverty.

Since its creation as an administrative region in 1995, Caraga embarked on a development

strategy that has started to pay off in terms of addressing accessibility issues, closing the resource gaps in the delivery of basic services, improving productivity and diversifying livelihood opportunities, unlocking assets necessary for equitable growth, and more importantly, in raising awareness on the need to protect and sustainably manage the region’s vast wealth in natural resources and diverse, scenic land and seascapes. The challenge of building on the gains of the last fourteen years while steering the region into new avenues for transforming its economy towards greater job creation, more competitive performance in domestic and global markets, greater efficacy and self-reliance in local governance, and greater equity and prosperity among its peoples, would require the support of all stakeholders, especially the local and national leaders.

The Region’s stakeholders envision Caraga to be fully engaged in global trade, utilizing its

competitive advantage in mining as its centerpiece by 2030. Agriculture, fishery, forestry and eco-tourism are also seen as major areas of growth with parallel attention to the continuing preservation of its ecology for sustainable development for generations beyond 2030. The year 2030 is the terminal year of the Region’s physical framework plan, the blueprint for polycentric development that would restore Caraga as a rich and flourishing economy developing at pace with the rest of the world. The first decade of the 30-year plan has put in place the social, political and economic infrastructure needed for the Region’s transformation; the second decade would further unlock the Region’s assets for agro-forestry, fishery and eco-tourism in a conflict-sensitive, disaster and climate change resilient economy; and the third decade would focus on expanding and diversifying Caraga’s market horizon to the world.

Despite decades of exploitation by extracting industries, Caraga is fortunate to find its remaining

verdant old growth forests still among the most extensive in the country. It has the most pervasive second-growth forests and the country’s largest expanse of tree plantations. Its mineral deposits of gold, nickel, chromite, copper, iron, manganese and cobalt are even more extensive than its forest cover. Its wetland in Agusan Marsh is recognized as a wetland of international significance and is the least disturbed in the country. Undoubtedly, Caraga has vast untapped assets for revitalizing itself. In

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the pre-Spanish era, some of the local government units now comprising the Caraga Region were thriving economies actively trading with China, India and the Middle East.

With decades of lessons on the impact of unsustainable natural resource extraction on its

environment and economy, Caraga is poised to take another shot at the global market with the hindsight of the obstacles it needs to hurdle to effect a sustainable growth with equity and prosperity for its citizenry.

The timeframe of this development agenda -- CYs 2010-2020, coincides with the second decade

of the region’s physical framework plan. The development menu for the period departs from the traditional resource extraction growth and puts emphasis on sustainable development, preserving ecological integrity, economic diversification and community empowerment.

AGENDA FOR DEVELOPMENT Social Equity Agenda

The priority agenda in the next 10 years calls for measures to ensure that economic development will impact on the poverty situation of the Region. Based on the MDG target, from the 45.5 percent poverty incidence and 24.2 percent subsistence incidence among families in the 2006 FIES, Caraga’s poverty statistics should drop to 25.5 per cent poverty incidence and 15.85 percent subsistence incidence among families by 2015. There is very low probability of meeting these targets. Extreme measures need to be instituted for the Region to contribute positively to the attainment of the goal on eradicating poverty and hunger by 2015.

Focused targeting on the poor and vulnerable families for basic social services along health,

education, livelihood and welfare; priority allocation of development funds to the municipalities/cities with poverty statistics higher than the regional figures, particularly for basic community infrastructures; and mainstreaming of rights-based approach in local planning shall be among the key advocacies to the LGUs. Food sufficiency/security at the community level shall also be instituted as a primary consideration for allocation of development resources for support services and incentives for priority food produce.

The bottomline of the social equity agenda is community empowerement. Other result areas of

the social equity agenda are access and service quality improvements in the HEARTS: Health and housing; Education and skills development; Agriculture and environment; Roads, bridges, railroads, energy and telecommunications; Trade and investment, tourism, mining, ICT services and technology; Social development and accountable governance.

Growth Agenda

Caraga needs to grow faster than the rest of the country to be able to catch up from the bottom rank of the development ladder. The region was able to accomplish this in 2007 with mining as its main growth driver. In the next 10 years, the Region needs to accelerate growth through economic diversification and value-adding enterprises. Increased agricultural productivity, competitive industry clusters, eco-tourism and a secure and conducive investment climate shall be the enablers of the Region’s sustained growth.

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Introduction of new technologies and provision of pre- and post-harvest support to farmers and fisherfolks must be intensified. Value adding activities must be encouraged and given priority so that the region will mature economically, from being a raw materials provider to high value products processor.

The operationalization of the industrial and economic estates in the region must also be given

priority as venue for economic diversification. The LGUs shall encourage locators, provide one-stop-shop for processing of business permits, provide tax incentives and improve infrastructure support in their respective economic zones in order to entice investors along the priority products and preferred industries.

Collaboration with relevant agencies, intensification of promotion and advocacy efforts should be

undertaken on this regard. Also, the region must make it easy for investors to locate in the region, with streamlined application processes, guarantee on availability of relevant resources (human resources, power, water, infrastructure etc.) and ensuring peace and order.

The gradual movement from subsistence food-crop production to a diversified market-oriented

system is a manifestation of a growing economy. The provision of appropriate technology coupled with capability enhancement can hasten the diversification process.

The prospect of Caraga’s tourism industry is vast given the abundant natural, cultural and other unique tourism resources in the region. Pursuing sustainable tourism development will facilitate creation of alternative livelihood opportunities, employment generation, MSMEs development, skills development and empowerment of local communities. Strengthening support for the sector through enabling policy is one form of structural security for the development of the tourism industry.

Factors that can propel development of MSMEs shall be pushed by the government to advance the growth of MSMEs in the region. These include financing assistance and safeguards against illegal entries of imported but low quality goods. Financial assistance through loans may be extended to MSMEs by offering low interest rates.

One area that needs to be assessed also is the availability of skilled and competent workers for the industry. Manufacturing MSMEs for instance, would require competent manpower to cope with market standards. The Department of Labor and Employment (DOLE) and the Technical Education and Skills Development Authority (TESDA) have initiated the formulation of the Regional Human Resource Action Plan, 2007-2010 and the Regional Technical Education Skills Development Plan which would chart the harmonization of the industry/MSME needs. These efforts shall be supplemented by relevant programs from the DepEd, DoH, CHED and the LGUs.

The LGUs can further harness the development of the MSMEs through the adoption of

appropriate mechanism like the implementation of the Barangay Micro Business Enterprises (BMBE) Law and in mobilizing their own resource to improve productivity like operationalization of a one-stop shop and thereby facilitate economic growth.

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Infrastructure Development Agenda To support the growth and equity agenda, infrastructure development shall be focused on easing

access to settlements and key production areas. The most critical catalytic infrastructure projects of the Region have been identified and proposed for funding. Some are in the pipeline still awaiting counterparting commitment from the national government.

Environmental Protection Agenda

Caraga’s ecosystem somehow managed to heal itself. The decades of unsustainable extraction of its resources has still left a patch of its original biodiversity. The preservation of the Region’s ecological integrity draws lessons from its long history of unscrupulous resource utilization. The increasing demand of the growing population would further exact pressures on the Region’s fragile disaster-prone environment.

The goal of sustainable development cannot be attained unless responsible management of these

resources shall be effectively employed by the stakeholders. Appropriate land utilization coupled with environment-friendly technology can ensure ecological and social integrity. Harmonization of policies relative to the development and management of natural resources geared towards balance development should be the priority of the concerned agencies to resolve conflicts and encourage the growth of investments in the region. Respect to customary laws and ancestral domains claims should be exercised to maintain peace and encourage participation among stakeholders.

Any development intervention should put prime importance on beneficiaries’ or target communities’ participation from project conceptualization to avoid conflicts and harness community efforts to develop and advance themselves for peace and human security.

Private Sector Partnership Agenda

An effective, efficient and responsive government bureaucracy is ideal in promoting the region’s growth potentials. Acknowledging that socio-economic development cannot be attained by efforts of the government alone, progress has been made in fostering partnership between and among government institutions and civil society groups. The private sector-led industry clusters are slowly gaining headway in building competitive enterprises. Critical partnerships should also be strengthened to sustain an environment of trust, confidence and collaboration for peace and development. These efforts need to be sustained until 2020 and beyond.

Resource Generation Agenda Being the youngest region in Mindanao, Caraga has the smallest share of the meager ODA

funneled into Mindanao compared to Luzon and the Visayas. On top of this, the LGUs in the Region are constrained by a small tax base to improve local revenues through local taxation. Caraga LGUs need to explore other sources of local revenues to generate funds for critical capital projects and investments in its human capital. The LGUs need to break out of their dependence on the IRA to fuel local development.

Technical Notes

CCCCaraga Regional Development Agenda

Caraga Regional Development Agenda TECHNICAL NOTES

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TECHNICAL NOTES

A. ANALYSIS OF THE PLANNING ENVIRONMENT

1. Demography

a. Population

Caraga Region registered a population of 2,293,480 in the CY 2007 census, making it the third least populated region in the country (Table 1). The Region accounts for 10.6 percent of the total population of Mindanao and 2.6 percent of the Philippines. Its average annual population growth between the censal years 2000 and 2007 was 1.25 percent, the lowest growth rate in Mindanao and the fifth lowest in the country. Caraga’s population growth rate has consistently been way below the national average. Between censal years 1995 to 2000, Caraga’s population grew by an average of only 1.63 per cent per year when the national growth rate was 2.3 per cent. With the current growth rate, the region is expected to double its population in 55.2 years or by 2062. This is much slower than the 30-year doubling time estimate for the Philippines. Before the end of the plan period in CY 2020, Caraga’s population is estimated to reach 2.5 million. Among the provinces in Caraga, Agusan del Sur has the largest population with 609,447, representing roughly 27 percent of the Region’s population. The newly created Province of Dinagat Islands has the smallest population at 120,813. Butuan City, the Region’s primary urban center, registered the highest growth rate at 1.53 percent (Table 2). Age-Sex Distribution

Using the CY 20001 census data, the Region’s population is relatively young with children 0-17 years old accounting for 47.6 percent of the population; 18 – 64 years old accounted for 48.7 percent; while people aged 65 and over comprised 3.7 percent. Agusan del Sur had the most number of children comprising 28.02 percent of the region’s child population. Surigao del Norte, on the other hand, has the most number of aging populace (65 years and over) accounting for about 29 percent of Caraga’s aging population. The same picture is expected in the 2007 census data which is yet to be published. In terms of sex distribution, the male population out-numbered the female population at a ratio of 51:49 as of the 2000 census. Age Dependency Ratio

The age dependency ratio was placed at 79.9 dependents for every 100 working age population based on the 2000 census. This means that for every 100 people between 15 and 65 years old, there are about 80 dependents or people younger than 15 years old and those older than 65 years old. The province of Agusan del Sur posted the highest age dependency rate at 84.19 percent, followed by Surigao del Sur with 81.85 percent, Agusan del Norte with 78.77 percent, Surigao del Norte, 77.25 percent and Butuan City, 74.10 percent.

1 The CY 2007 census report published as of this writing covers only the Provinces of Agusan del Sur and Dinagat Islands and the total

population of the Region.

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Population Density

Past censuses showed that the population density of the region rose steadily over the years. From 102 persons for every square kilometer (km2) of land in CY 1995 (the year Caraga Region was created), the region’s population density rose to 120 persons per km2 in 2007. Among the provinces, Surigao del Norte has the highest population density in the region at 160 persons per km2. Agusan del Sur is the least dense province with only 73 persons per km2. The population density of Caraga and its provinces is barely half of the national average of 258 persons per km2 in 2007. Geographic Distribution

Although the Region’s population appears to be evenly distributed to the 5 provinces based on numbers, the population density per area contradicts this, showing instead a very uneven distribution of the population. Agusan del Sur, which accounts for a greater share of the region's land area at 43 percent, accounts for only 27 percent of the region's population. On the other hand, Butuan City which accounts for only 3 percent of the total land area, has 13 per cent of the Region's population. The densest municipality is San Jose, in Dinagat Islands with more than 500 persons per km2. Ethnicity

Rich in history and culture, the Region’s indigenous peoples account for about 14 percent of its population. The major tribes present in the Region are the Manobos, the Higaonons and the Mamanuas. b. Health and Nutrition

The overall health and nutrition status in Caraga does not deviate much from the national

situation. The Region’s performance in meeting the Millennium Development Goals (MDGs) on health in 2015 appear to be on track. Caraga has a high probability of achieving the targets in reducing infant mortality rate (IMR) to 5.8 infant deaths per 1,000 live births and maternal mortality rate (MMR) to 0.54 maternal deaths per 1,000 live births. On improving access to and quality of health services and facilities, however, the Region continues to struggle with ill-equipped and poorly-staffed rural health units/centers/clinics which are located far between.

The projected life expectancy at birth in 2005 was 66.1 percent among males and 71.6 percent

among females. The top leading causes of death in the region are lifestyle related diseases especially those affecting the circulatory system. Bronchitis was the leading cause of adult morbidity and acute respiratory infection was the leading cause of infant morbidity.

In 2008, a total of 60 hospitals were operating in different parts of the region. About 25 of

these hospitals are privately-owned while the remaining 35 are government-owned. The total bed capacity of these hospitals as of 2008 was 1,722. Caraga is way below the standard ratio of 1:1000 with a regional average bed to population ratio of 1:1,318. This deficiency is even worse at the provincial, city and municipal levels where the hospitals are in varying stages of disrepair. The Province of Dinagat Islands had the highest hospital bed to population ratio at 1:2,387, while Surigao City had the lowest at 1:531.

On health insurance coverage, only 46 or about 77 per cent of the total 60 public and private

hospitals are accredited with the Philippine Health Insurance Corporation (PHIC). Among the 80 Rural Health Units (RHUs), only 65 or 81.25 per cent are accredited, and only 11 or 73 per cent of


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Table 1. Population, Annual Population Growth Rates, Density by Region

Census Years 1995, 2000 and 2007

Area 2007

(Aug 1) 2000

(May 1) 1995

(Sep 1)

Annual Population Growth Rates

Density (Persons/Sq.km.)

Land Area

2000-2007

1995-2000

1990-1995

2007 2000 1995 Sq.km. %

(Phils)

Philippines 88,574,614 76,504,077 68,616,536 2.04 2.36 2.32 258 223 200 343,282 100

National Capital Region 11,553,427 9,932,560 9,454,040 2.11 1.06 3.30 18,648 16,032 15,260 619.5 0.18

CAR 1,520,743 1,365,412 1,254,838 1.50 1.82 1.71 78 70 65 19,442 5.66

Ilocos Region 4,545,906 4,200,478 3,803,890 1.10 2.15 1.30 349 323 292 13,012.6 3.79

Cagayan Valley 3,051,487 2,813,159 2,536,035 1.13 2.25 1.51 108 100 90 28,228.8 8.22

Central Luzon 9,720,982 8,030,945 6,932,570 2.36 3.17 2.12 442 373 322 22,014.6 6.41

IV A – Calabarzon 11,743,110 9,339,618 7,750,204 3.24 4.03 3.53 696 552 459 16,873.3 4.92

IV B – Mimaropa 2,559,791 2,299,229 2,033,271 1.49 2.67 - 86 78 69 29,620.9 8.63

Bicol Region 5,109,798 4,686,669 4,325,307 1.23 1.68 1.91 281 257 238 18,155.8 5.29

Western Visayas 6,843,643 6,211,038 5,776,938 1.35 1.56 1.30 329 299 278 20,794.2 6.06

Central Visayas 6,398,628 5,706,953 5,014,588 1.59 2.81 1.65 403 359 316 15,886 4.63

Eastern Visayas 3,912,936 3,610,355 3,366,917 1.12 1.51 1.84 168 155 145 23,251.1 6.77

Zamboanga Peninsula 3,230,094 2,831,342 2,567,651 1.83 2.12 2.42 189 166 151 17,046.6 4.97

Northern Mindanao 3,952,437 3,505,708 3,197,059 1.67 1.99 2.32 193 171 156 20,496 5.97

Davao Region 4,156,653 3,676,163 3,288,824 1.71 2.41 2.64 204 181 162 20,357.4 5.93

SOCCSKSARGEN 3,829,081 3,222,169 2,846,966 2.41 2.69 2.83 170 143 126 22,513.3 6.56

ARMM 4,120,795 2,803,045 2,362,300 5.46 3.73 1.80 123 84 70 33,511.4 9.76

Caraga 2,293,480 2,095,367 1,942,687 1.25 1.63 1.82 107 98 90 21,478.4 6.26

Source: National Statistics Office, Philippine Statistical Yearbook 2008

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Table 2. Population, Density and Growth Rates by Region, Province and Highly Urbanized City:

Population Censuses 1995, 2000 and 2007

Provinces

2007 (Aug 1)

2000

(May 1)

1995

(Sep 1)

Annual Population Growth Rates

Density (Persons/Sq.km.)

Land Area*

2000-2007

1995-2000

1990-1995

2007 2000 1995 Sq.km. %

(Phils)

Provinces

Agusan del Norte 314,027 285,570 267,411 1.32 1.42 1.36 142 129 121 2,216.45 0.006

Agusan del Sur 609,447 559,294 514,736 1.19 1.79 1.43 73 67 62 8,297.19 0.024

Dinagat Islands 120,813 106,951 100,537 1.69 1.33 1.55 125 111 104 967.45 0.003

Surigao del Norte 409,468 374,465 341,666 1.24 1.98 1.53 160 146 134 2,557.98 0.007

Surigao del Sur 541,347 501,808 471,263 1.05 1.35 1.17 115 106 100 4,715.06 0.014

Highly Urbanized City

Butuan City 298,378 267,279 247,074 1.53 1.70 1.59 447 400 370 667.93 0.002

* Figures taken from the Regional Physical Framework Plan, 2004-2030, Caraga Region Source: National Statistics Office


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the 15 birthing homes in the region have PhilHealth presence in 2008. The health insurance coverage provided by PhilHealth increased by only 43, 900 from 124,196 in 2007 to 168,096 enrolled individuals in 2008.

Caraga, however, managed a substantial decline in malnutrition incidence between 2003 and

2008. Among the five provinces, Surigao del Sur posted the highest incidence of malnutrition (below normal low to below normal very low) at 21.84 percent in 2008, while Butuan City recorded the lowest incidence at 7.73 percent.

In terms of water and sanitation, feeble improvements have been attained in household access to

safe water and households with sanitary toilets. As of the latest data (2007), about 21 households for every 100 have no access to safe water supply. Among the five provinces in the region, the Province of Dinagat Island posted the highest percentage of households with access to potable water supply at 90.4 percent. Surigao del Sur posted the lowest at 71.6 per cent. Among the cities, Surigao City recorded the highest percentage access at 99.2 per cent. Bislig City posted the lowest at 78.4 percent household access to potable water supply. The overall percentage of households with access to safe water throughout the Region was 79.2 percent, still far from the 98 per cent target in urban areas and 90 percent in rural areas by 2010. On percentage of households with sanitary toilets, only 78.1 percent was reported in 2007.

c. Education and Technical Skills

The literacy picture in Caraga mirrors the literacy picture of the country. The simple literacy rate

for both sexes 10 years old and over in the Region (based on the latest FLEMMS2 report published in

CY 2006) is 92.1 percent, lower than the national figure of 93.4 percent. Similar to the national figure, the simple literacy rate among the female population of Caraga at 94.6 percent is higher than its male population at only 89.5 percent. However, unlike the national figures, the disparity between female and male literacy rates was very high in Caraga. At the national level, the gap was less than 2 per cent at 94.3 per cent among females and 92.6 percent among males.

On participation rate, cohort survival rate and completion rate, both the elementary and secondary

levels posted volatile trends between school years (SY) 2000 and 2008. High drop-out rates in both elementary and secondary levels are also observed. However, the Region consistently topped in the National Achievement Test, both in elementary and secondary levels.

As of SY 2008-2009, there were about 1,682 elementary schools in the region; 1,592 were public elementary schools and 90 were private schools. Like in elementary education, there were fewer private secondary schools than the public ones, with only 91 private schools and 298 public schools. The total student population in the public schools was five times larger than that in the private schools (155,090 students in public schools compared to 25,918 in private schools). Remote barangays and even some urban barangays continue to contend with problems on access to basic education. The Region, and so with the Philippines, is likely to miss the MDG target for participation rate and cohort survival rate in 2015.

On technical-vocational education, tech-voc schools sharply increased from 11 in SY 2006-2007 to 58 in SY 2007-2008. This was due to the increasing demand for skilled workers in other countries. Only 5 among the 58 institutions are under the direct supervision of the Technical Education and Skills Development Authority (TESDA).

2 Functional Literacy, Education and Mass Media Survey 2003

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Figure 1. Poverty Incidence Among Families

Philippines and Regions,

CYs 2000, 2003, 2006

d. Labor and Employment

The agriculture sector continues to absorb the bulk of the Region’s labor force. However, the percentage share of the services sector has been increasing faster than the shares of both the agriculture and industry sectors. This indicates a shift in the employment picture of the Region’s economy towards the services sector. The labor force participation rate (LFPR) in Caraga was higher than the Philippines in 2008 at 65.1 per cent of the population 15 years old and over. The national LFPR was only 63.7 percent. Likewise, the employment rate of the Region was higher at 94.7 percent compared to the Philippines at only 93.2 per cent. But, on underemployment, Caraga posted a higher rate at 20.1 percent compared to the national underemployment rate of 17.5 percent (Table 3). e. Poverty Situation

Since the 1997 Family Income and Expenditure Survey (FIES), the first FIES that covered the then newly created Caraga Region, Caraga invariably ranked among the top 3 regions highest in poverty incidence. In the latest FIES in 2006, Caraga slid to 3rd place with 52.6 per cent of its population (45.5 per cent of its families) falling below the poverty threshold. This is an improvement in rank compared to its performance in the 2003 FIES where the Region posted the highest poverty incidence among families. Caraga ranked second to the ARMM in the 2000 FIES (Figure 1). The other regions with poverty incidence higher than 50 percent and are least likely to meet the MDG target reduction in poverty incidence by 2015 are: Regions 4-B and 5 in Luzon and ARMM in Mindanao. However, among the four regions with very high poverty incidence, Caraga has the lowest in magnitude or the actual number of families below the poverty threshold. In terms of subsistence incidence, or percentage of families/population with incomes below the food threshold, Caraga ranks a very close second to Region 9 which posted the highest incidence in 2006. Caraga’s subsistence incidence of 24.2 percent is more than double the national subsistence incidence of only 11.0 per cent (Figure 2). Looking inward within the Region, only Surigao del Norte posted a higher poverty incidence compared to the regional figure. However, the newly created Province of Dinagat Islands which was not covered by the 2006 FIES, also registered an above 50 percent incidence among families.


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Figure 2. Subsistence Incidence Among Families Philippines and Regions

CYs 2000, 2003, 2006

Figure 3. Poverty Incidence Among Families, Philippines, Caraga and Provinces

CYs 2000, 2003, 2006

The other provinces in Caraga have managed to keep poverty incidence below 50 percent. Agusan del Norte, the only province in Caraga that did not belong to the bottom 20 provinces of the country, was also the only province in the region that posted an increase in poverty incidence from 33.2 percent in 2003 to 35.2 percent in 2006 (Figure 3).

The high poverty incidence in the region is attributed to unequal distribution of wealth. The 2003 NSCB estimates revealed that income distribution in the region has been largely unequal. Its gini coefficient in 2003 was posted at 0.4294 from 0.4118 in 2000. This means that the region is experiencing a growing inequality in income among and within income clusters. However, its income disparity is still below the national average of 0.4660 even though it is one of the eight (8) regions which exhibited increasing income disparity between 2000 and 2006. When compared to the income distribution in the rest of the country, Caraga ranks 6th from the lowest in income disparity. The Region’s poor families accounted for about 4.32 per cent of the total poor families in the Philippines (Figure 4). This is quite disturbing since the Region’s population is only 2.6 per cent of the Philippine population in 2007.

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2. Physical Resources

a. Geographical Location

Caraga Region is situated in the Northeast section of Mindanao. It is located between 70 55’ to 100 00’ latitude and 1250 15’ to 1260 30’ longitude. It is bound on the north by the Bohol Sea; on the south by Region XI’s provinces of Davao, Compostela Valley and Davao Oriental; on the west by Region X’s Bukidnon and Misamis Oriental; and on the east by the Philippine Sea and the Pacific Ocean.

b. Land Area and Political Subdivision

The region has a total land area of 19,128.42 km2. It represents about 18.8 percent of the total land area of Mindanao and roughly 6.4 percent of the Philippines. The ARMM has the biggest land area with 33,511.4 km2, while the NCR has the smallest land area with only 619.5 km2.

Caraga Region is composed of five (5) provinces -- Agusan del Norte, Agusan del Sur, Surigao del Norte, Surigao del Sur and the Province of Dinagat Islands; three (3) cities -- Butuan, Surigao and Bislig; seventy (70) municipalities and 1,310 barangays. Of the 70 municipalities, fifty-four (54) are in the mainland and sixteen (16) are in the islands. Among the provinces, Agusan del Sur has the largest land area of about 8,297.19 km2 or 43 percent of the region’s total area. Surigao del Norte has the highest number of municipalities and barangays at 26 municipalities and 435 barangays.

Figure 4. Magnitude of Poor Families Philippines and Caraga Region

and Region’s Share (in %) of Poor Families of the Philippines

CYs 2000, 2003, 2006


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c. Hierarchy of Settlements and Functional Roles of LGUs

Caraga’s network of settlements is characterized by a single primary urban center serving as the regional center, two (2) secondary urban centers functioning as the sub-regional centers, and several tertiary growth centers comprising large, medium and small towns.

Butuan City, the only highly-urbanized city in the region, is considered as the primary urban center in Caraga. It serves as the regional center where most regional offices of national government agencies are located. As the primary urban center, Butuan City provides the highest levels and scales of service in the region. This center is the hub of economic activities in terms of industrial, commercial, trading and services with minimal activities in agriculture.

The secondary urban centers in the region are the two (2) component cities: Surigao (Surigao del Norte) and Bislig (Surigao del Sur). These component cities serve as sub-regional centers which provide services to nearby municipalities. Surigao City serves as the commercial and trading center in the Pacific Rim and a special zone for mineral-based industries. Bislig City serves as the agri-industrial center of the region for agri-forestry and aqua-marine processing. The towns categorized as large tertiary growth centers are considered the provincial growth centers which provide direct links to rural production areas that are not served by the larger urban centers. In the region, the large town-tertiary growth centers are Cabadbaran in Agusan del Norte, Bayugan, Prosperidad and San Francisco in Agusan del Sur as well as Cantilan, Hinatuan and Tandag in Surigao del Sur. The other tertiary growth centers, such as the medium and small towns, are predominantly agriculture-based economies serving as food providers of the region. The existing settlements in the region cover approximately 15,348 hectares of land. Total land requirement to support population increase between 2010and 2020 is about 3,000 hectares. Improvements in major infrastructure facilities and social services and amenities would be critical to meet the increasing demands of the locality. d. Ancestral Lands

Based on the total area covered by Certificates of Ancestral Domain Claims (CADCs) as of CY 2003, the Region’s ancestral land covers an aggregate area of 263,262 hectares. There are still pending applications for CADC covering significant tracts of land.

e. Topography and Slope

The region is characterized by flat, rolling and mountainous areas. Roughly 47 percent of its land area is flat, gently sloping, undulating and rolling lands; 40 percent, moderately steep to steep; and 12 percent, very steep with slope of 50% and above. Mountain ranges divide the Agusan and Surigao provinces and its sub-ranges cut across most of the lowlands along the Pacific Coast. Notable of these ranges are listed in Table 3.

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Table 3. Mountain Ranges, Caraga Region

No. Mountain Ranges

Covered Areas Elevation (MASL)

1 Mt. Mayapay Butuan City and Buenavista 718 masl

2 Mt. Hilong-Hilong Traverses the 4 provinces 2,012 masl

3 Mt. Mabaho Santiago, Augsan del Norte 1,823 masl

4 Mt. Cabanatuan Kitcharao, Agusan del Norte 918 masl

5 Mt. Piglalahan Carmen, Agusan del Norte 810 masl

6 Mt. Diwata Boundary of Tubod, Bacuag and Mainit, Surigao del Norte

750 masl

7 Mt. Buhangin Boundary of Sison, Placer and Mainit, Surigao del Norte

664 masl

8 Mt. Tendido Boundary of Mainit and San Francisco, Surigao del Norte

9 Mt. Satellite Malimono 1,016 masl

10 Mt. Agudo Malimono 1,018 masl

11 Mt. kabutan Traverses Alegria and Kitcharo 975 masl

12 Mt. Legaspi Claver, Surigao del Norte 1,170 masl

13 Mt. Redondo Dinagat Island Over 900 masl

14 Mt. Kabinliw Dinagat Island Over 900 masl

Source: Provincial Physical Framework Plans of the Four (4) Provinces

f. Key Biodiversity Areas (KBAs)

Of the 206 integrated priority areas identified for biodiversity conservation in the country, six (6) Key Biodiversity Areas (KBAs) identified as priority conservation sites for terrestrial ecosystem are in eastern Mindanao, known as the Eastern Mindanao Biodiversity Corridor (EMBC). The Provinces of Surigao del Norte, Surigao del Sur, Agusan del Norte and Agusan del Sur in Caraga Region and the Province of Davao Oriental and Compostela Valley in Region 11 form part of the EMBC. The KBAs in the Region cover an approximate area of 733,355 hectares, endowed with an astounding biodiversity of both flora and fauna.

The region, having one of the largest remaining blocks of Dipterocarp forest in the country, serves as habitat to more than 2,300 plant species, accounting for some 30 percent of the Philippines total number of plant species. Of these, 60 percent are endemic to the corridor and account for 29 percent of the Philippines’ endemic species. Siargao Island is home to the second largest mangrove forest in Mindanao (86 square kilometers) and the largest contiguous stand of mangroves in the country (40 square kilometers). Moreover, there are 178 resident breeding bird species and 37 mammal species, which represented 67 percent and 42 percent respectively of the native mammals in the Mindanao Biogeographic Region. Diversity of other taxonomic groups is only partially documented, but species diversity is high, including 26 amphibians and 62 reptiles are found in the region.


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Endemicity is also high within the corridor with 17amphibian and 19 reptile species endemic to the country occurring within the corridor, several of which are confined to Mindanao Island. The corridor is also home to 77 endemic bird species, 40 percent of all Philippine endemic birds and 22 species, including two species of rodents found only in Dinagat Islands. In terms of conservation status, 69 threatened species of animals and plants are known to occur in the corridor. Nine (9) species listed as critically endangered, includes the Philippine eagle, Philippine cockatoo and the Philippine crocodile with 10 listed as endangered and 50 are vulnerable.

g. Eco-Tourism Destinations

Eco-tourism sites are areas that provide

recreational and educational benefits because of their unique characteristics. These areas are situated in clearly delineated areas such as tourist zones, tourist spots, tourism estates and protected areas declared by virtue of legislative and executive issuances. These areas have special biodiversity and other natural features and contain assets of historical and cultural significance.

The National Ecotourism Strategy identified

the Agusan Marsh and Wildlife Sanctuary in Agusan del Sur and the Siargao Island Protected Landscape and Seascape (SIPLAS) in Surigao del Norte as major ecotourism sites. These areas have gained prominence because of their unique natural features and biodiversity.

Another attraction in Agusan Marsh is the floating communities of indigenous peoples with

distinct cultural practices and traditions adapted to the 19,000-hectare waterworld. Thriving in traditional houses made of indigenous materials that rise with the level of water in the perennially flooded milieu, these floating communities are generally self-contained.

The SIPLAS on the other hand, gained distinction for the varied natural landscapes of the small

islands and the natural waves coming from the Pacific seaboard suitable for surfing. The island is also known by its wide expanse of mangrove considered as the largest contiguous mangrove forest in the country. h. Mineral Resources

Caraga Region is an eminent epithermal gold district with several large-scale mines, gold

prospects and small-scale mining sites. The search for additional resources and reserves has not dampen with the years.

The previous production of copper concentrate from Manila Mining Corporation’s Placer Mine,

long been a gold producer only, and the recent discovery of the Boyungan Prospect by Anglo-Philex opened up new opportunities for finding potentially concealed porphyry copper-gold mineralization below the epithermal gold system.

Undisturbed landscape in Caraga provides respite to

foreign and domestic tourists.

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The region has abundant metallic and non-metallic minerals. For metallic minerals, nickel silicate has a volume of 173,842,141 metric tons, copper/gold with 102,064,931 metric tons, chromite with 1,224,495 metric tons and iron ore with 2,098,785 metric tons. On the other hand, non-metallic minerals composed of limestone and silica is estimated at 239,403,485 metric tons and 148,126,467 metric tons. Although the provinces of Agusan del Norte and Agusan del Sur have identified mining areas, significant volume of these minerals are located in the provinces of Surigao del Norte and Surigao del Sur.

i. Water Resources

The region has abundant water resources including rivers and lakes. The DENR listed 85 rivers and 33 lakes. Out of these, the Environmental Management Bureau (EMB) identified 36 major rivers and lakes with a drainage area of not less than 40 square kilometers. About 19 of these major bodies of water are already classified based on DENR’s Department Administrative Order (DAO) No. 34, series of 1990. Under the classification assessment conducted by EMB, eleven (11) out of the 19 classified bodies of water fall under Class A and eight (8) belong to Class C. Class A rivers and lakes are bodies of water that require complete treatment in order to meet the National Standards for Drinking Water (NSDW), while Class C are those bodies of water which have the quality that can support the propagation and growth of fish and other aquatic resources. The region’s major water resources have diverse uses ranging from Public Water Supply Class I and II, Recreational Water Class I and II and other uses that give economic benefits to people living in the community such as fishery, agriculture and industrial waters.

Prominent among the rivers in the region is the Agusan River, the third largest river in the country with a total drainage area of 10,921 square kilometers. The Agusan River, with headwaters from the Compostela Province in Davao del Norte, traverses the provinces of Agusan del Norte and Agusan del Sur and the city of Butuan. Within the Agusan River Basin lies Agusan Marsh which serves as the catchment basin of water from upstream before it slowly flows downstream and finally to Butuan Bay. Due to its unique physical and biological significance, Agusan Marsh was declared as protected area under the National Integrated Protected Area System (NIPAS). Lake Mainit, the largest lake in the region, straddles the provinces of Agusan del Norte and Surigao del Norte. It is the fourth largest lake in the country and traverses eight municipalities: Alegria, Tubod, Mainit, and Sison in the province of Surigao del Norte and Tubay, Santiago, Jabonga and Kitcharao in Agusan del Norte. j. Climate and Weather

With a Type II climate, Caraga has no pronounced dry season (Map 2.8). It has, however, pronounced maximum rainfall from November to March with rainy days ranging from 18-25 days per month. Surigao del Sur, Surigao del Norte and Agusan del Sur have months with rainfall registering more than 500 mm. Minimum and maximum temperatures are recorded at approximately 22.40 C and 32.40 C, respectively.


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h. Natural Hazards

Caraga is one of the regions in the country prone to geological and meteorological or hydrological hazards. Available data from the Office of Civil Defense (OCD) indicate that a total of 18 incidents of natural calamities disrupted the region from CYs 1999-2008. Flooding occurred frequently, almost every year with eight (8) incidents recorded in the last 10 years. This figure does not include the four (4) incidence of flashfloods and two (2) flooding and landslides that occurred within the same period. In addition, three (3) typhoons and one (1) earthquake were recorded in the same period. As a result of the abovementioned calamities, the region incurred an accumulated loss of properties of roughly PhP 3.193-billion, with flooding contributing about 39 percent; flashflood, 23 percent; typhoon, 20 percent; flooding and landslide, 16 percent; and, earthquake, 2 percent. Approximately 73 percent of the estimated damages were incurred in infrastructure facilities/utilities, 26 percent in agriculture and 1 percent in social infrastructure. These events have also resulted in 257 casualties with 195 (68 percent) dead, 64 injured (22 percent) and 28 missing (10 percent). The damage wrought by natural calamities in the region entail spiraling cost of reconstruction and rehabilitation. As the region aspires for sustainable development, there is a need to undertake actions and institutionalize mechanisms to reduce, if not eliminate, the negative impact of natural calamities. Flooding in the region is primarily caused by excess waters in major rivers that traverse its flood plains and alluvial plains. Among the primary rivers that caused major flooding are Agusan River, Tago River, Surigao River, Gigaquit River, Carac-an River and Bislig River. Flooding is also prominent in areas surrounding Lake Mainit, located between Agusan del Norte and Surigao del Norte; and Agusan Marsh in Agusan del Sur. Most of the flood prone areas prone are within built-up areas, agricultural areas, marshlands, fishponds and lakeshores. Among the top 10 areas which indicated Level 5 (highest level) risk to life due to flooding are the cities of Butuan, Surigao, and Bislig and the municipalities of Magallanes and Cabadbaran (Agusan del Norte), Bayugan, San Francisco and Bunawan (Agusan del Sur), Placer (Surigao del Norte) and Tago (Surigao del Sur). Butuan City is further assessed to have areas with Level 5 risk to property due to flooding. The cities of Surigao, and Bislig and the municipalities of Buenavista, Cabadbaran, and Magallanes (Agusan del Norte), Bayugan (Agusan del Sur), Tandag and Tago (Surigao del Sur) indicated Level 3 (moderate) risk to property. While Butuan City ranks number one among the top ten (10) urgent priority areas for having a Level 5 risk to life and property due to flooding, the construction of the Lower Agusan Development Project (LADP) – Flood Control Component is expected to minimize the occurrence of flooding in the city. Rain-Induced Landslide. Given the region’s terrain and wet climate throughout the year with peak rainfall during the NE monsoon period (November to February), rain-induced landslides and other mass movements are common in areas within 30 percent to above 50 percent in slope which include open canopy forest, closed canopy forest, agricultural areas and built-up areas with low and moderate population density. Ground Rupture. Caraga is located in the tectonically active belt in the Philippine Fault Zone. This fault zone traverses the whole region from north to south. About 80 kilometers offshore to the east of the region is the Philippine Trench. Both the fault zone and the Philippine Trench are identified as earthquake generators and greatly contribute to the seismicity in the area. In the last 10 years,

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Figure 5: Industry Share to

GRDP

Caraga, 2008

Source: National Statistical Coordination Board

however, only one (1) earthquake was recorded to have brought significant damage in some areas of the region. That earthquake happened in 1999.

The areas prone to ground rupture are the built-up areas of the major growth centers of the region such as the cities of Butuan, Bislig and Surigao and the municipalities of Cabdbaran, Nasipit and Buenavista in Agusan del Norte; Bayugan and San Francisco in Agusan del Sur; and Tandag and Lianga in Surigao del Sur.

Liquefaction is a secondary effect of ground shaking that can cause recent sediments, particularly sandy deposits to lose strength. For Caraga Region, data available for this type of hazard are only for Surigao del Norte, Surigao del Sur and the newly created province of Dinagat Islands (formerly part of Surigao del Norte) since these provinces were beneficiaries of the READY Project. The majority of municipalities in the abovementioned provinces fall within low to very low risk areas except for the cities of Surigao and Bislig and the municipality of Tandag which fall within the moderate priority risk areas. Storm Surge or tsunamis are destructive sea waves generated by offshore seismic events. Based on recorded tsunami events and overlay analysis, the eastern seaboard of Caraga directly facing the Philippine Trench is highly prone. The western coast of Caraga facing Bohol Sea can also be prone to tsunamis. However, no occurrence of storm surge had been recorded so far on the western coast unlike on the eastern coast of the region. Like the case of liquefaction hazard, data available on storm surge are only for Surigao del Norte and Surigao del Sur. Surigao City and fifteen (15) municipalities, eight (8) in Surigao del Norte and seven (7) in Surigao del Sur, fall within priority risk areas.

3. Economic Performance

a. Macroeconomic Structure and Growth

Caraga is predominantly an agriculture economy. However, in CY 2008, the services sector surpassed agriculture, fishery and forestry sector (AFF), contributing almost 35% to the regional economy. Although the gross value added (GVA) of the services sector in 2008 was lower than its 2007 performance, its contribution to the regional economy in 2008 was higher because it did not decrease by as much as the AFF sector did. The industry sector similarly increased its percentage contribution to GRDP, contributing 31.14%, with mining and quarrying sub-sector as its main driver followed by manufacturing and construction sub-sectors. Figure 5 shows the percentage contribution of the major industries to Caraga GRDP in 2008.

Despite the changing structure of the Caraga economy, the region is still mainly dependent on agriculture and fishery (Table 5). The agriculture and fishery sector has consistently contributed the highest share to the Region’s Gross Regional Domestic Product (GRDP) from 2005 to 2008, although at a declining trend. Trade followed far behind, also at a declining trend. The other sub-sectors with substantial contributions to the GRDP are manufacturing, construction and government services. The manufacturing sub-sector also posted


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Figure 6. Percentage Share of Sub-sectors

to the GRDP, 2005-2008

a declining trend. The forestry sector output, where the Region contributes the highest share to the national output, has also experienced a slack in the same period. The only sub-sector that posted a sharply increasing share to Caraga’s GRDP was mining and quarrying. Figure 6 shows the percentage share of the sub-sectors to Caraga’s GRDP from CY 2005 to 2008.

The sharp increase in the mining and quarrying sector output was the primary reason for the unprecedented GRDP growth of the Region in 2007 at 8.6 per cent at constant (1985) prices. This placed the Region as the second fastest growing region in the country in 2007. However, in the following year, the mining sub-sector was affected by the global financial crisis, thus, slowing down the sub-sector’s growth. The wood-based industries and plantation products of the Region were also affected by the global crisis. Caraga’s GRDP grew by only 3.2 percent in 2008, which was lower than the national growth of 3.8 percent for the same period. This was a set back from the last two years (2006 and 2007)

Table 4. Gross Regional Domestic Product/Gross Value Added and Growth Rates

at constant (1985) Prices, in ‘000 Pesos

Caraga Region, 2005-2008

INDUSTRY/ YEAR GROSS VALUE ADDED % INCREASE/ DECREASE

2005* 2006* 2007* 2008 2005-2006

2006-2007

2007-2008

I. AGRI.,FISHERY,FORESTRY 6,168,348 6,194,301 6,316,801 6,285,103 0.42 1.98 -0.50

a. Agriculture and Fishery 5,397,577 5,460,593 5,860,162 5,848,679 1.17 7.32 -0.20 b. Forestry 770,770 733,708 456,639 436,424 -4.81 -37.76 -4.43

II. INDUSTRY SECTOR 3,638,920 4,449,901 5,342,193 5,757,510 22.29 20.05 7.77

a. Mining and Quarrying 426,454 1,056,561 1,860,982 2,130,541 147.75 76.14 14.48 b. Manufacturing 1,523,958 1,621,801 1,547,186 1,534,643 6.42 -4.60 -0.81 c. Construction 1,115,189 1,193,161 1,352,483 1,499,340 6.99 13.35 10.86 d. Electricity and Water 573,318 578,378 581,542 592,987 0.88 0.55 1.97

III. SERVICE SECTOR 5,786,282 5,993,206 6,262,049 6,444,378 3.58 4.49 2.91

a. Transport, Comm., Storage 372,026 396,839 432,102 440,130 6.67 8.89 1.86 b. Trade 3,074,512 3,165,958 3,320,865 3,372,002 2.97 4.89 1.54 c. Finance 124,037 137,363 150,394 147,753 10.74 9.49 -1.76 d. Dwellings & Real Estate 689,621 710,141 720,004 735,991 2.98 1.39 2.22 e. Private Services 425,811 454,676 484,883 507,959 6.78 6.64 4.76 f. Government Services 1,100,276 1,128,228 1,153,800 1,240,543 2.54 2.27 7.52

GROSS REGIONAL DOMESTIC

PRODUCT 15,593,550 16,637,408 17,921,043 18,486,991 6.69 7.72 3.16


*Updated figures


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when Caraga’s GRDP growth was higher than the national performance (Table 5).

Table 5. Growth Rates of Gross Regional Domestic Product

by Region at constant (1985) prices

CYs 2005-2006, 2006-2007 and 2007-2008

REGION/YEAR 2005-2006 2006-2007 2007-2008

PHILIPPINES 5.4 7.2 3.8

NCR METRO MANILA 6.7 7.8 4.9

CAR CORDILLERA 3.6 7.2 1.8

I ILOCOS 6.1 5.8 2.2

II CAGAYAN VALLEY 7.4 6.6 2.0

III CENTRAL LUZON 4.8 6.1 3.8

IVA CALABARZON 4.6 5.5 2.0

IVB MIMAROPA 1.6 9.4 3.1

V BICOL 2.6 7.7 4.3

VI WESTERN VISAYAS 4.9 7.7 4.4

VII CENTRAL VISAYAS 4.8 8.7 3.4

VIII EASTERN VISAYAS 5.2 3.2 3.6

IX ZAMBOANGA PENINSULA 2.1 7.4 2.2

X NORTHERN MINDANAO 6.9 7.9 5.3

XI DAVAO REGION 4.3 6.7 3.7

XII SOCCSKSARGEN 6.6 6.7 4.6

ARMM MUSLIM MINDANAO 3.7 5.4 1.9

XIII CARAGA 6.0 8.6 3.2


In terms of the Region’s share to the Gross Domestic Product (GDP), Caraga’s share in 2008

stood at 1.3 percent to the Philippines’ GDP and 7.4 percent to Mindanao’s GDP, both reflecting the same percentage contribution of the Region in 2007. This indicates that the other growth regions of the country were similarly affected by the global crisis in 2008.

On per capita GRDP, Caraga has not advanced much from where it started compared to the other regions. Caraga is still fourth from the lowest among all 17 regions in the country, and second from the lowest among the Mindanao regions. However, in terms of growth in per capita GRDP, it ranked 9th among the 17 regions (Table 6). If the Region can sustain a faster growth rate, it can catch up with the more progressive regions.


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Table 6. Per Capita Gross Domestic Product

by Regionat constant (1985) prices, in pesos

CYs 2007 and 2008

REGION / YEAR 2007 2008

PHILIPPINES 15,405 15,686

NCR METRO MANILA 40,241 41,624

CAR CORDILLERA 19,099 19,043 I ILOCOS 8,277 8,289 II CAGAYAN VALLEY 8,500 8,518

III CENTRAL LUZON 11,838 12,049

IVA CALABARZON 14,800 14,759

IVB MIMAROPA 13,482 13,546 V BICOL 7,058 7,222

VI WESTERN VISAYAS 13,834 14,166

VII CENTRAL VISAYAS 14,816 15,008

VIII EASTERN VISAYAS 6,915 7,020

IX ZAMBOANGA PENINSULA 10,669 10,684

X NORTHERN MINDANAO 16,527 17,050

XI DAVAO REGION 14,846 15,153

XII SOCCSKSARGEN 12,499 12,792

ARMM MUSLIM MINDANAO 3,585 3,572

XIII CARAGA 7,441 7,534 Source: National Statistical Coordination Board

b. Agricultural Production

Blessed with fertile soil, vast tracts of production land and a climate suited to plantation development, the Region’s agricultural productivity was ironically lower than other regions even in its major crops like rice, corn, banana, coconut and abaca. Of the six regions in Mindanao, Caraga ranks either 5th or 6th in almost all agricultural crops.

Productivity of other crops (vegetables, root crops, etc) was also below the average enjoyed by

other regions. Inadequate management practices and occurrence of disease were identified as the major causes of low productivity. Banana, for instance, which normally yields about 12-16 metric tons (MT) per hectare recorded only more than 7 MT per hectare due to bunchy top disease and inappropriate management practices.

High value vegetables, which gained prominence in the region in CY 2000, experienced low

productivity as well. Although it accounts for approximately 30,000 hectares planted to assorted vegetables, its productivity was only 176 MT. With an actual consumption of 27,000 MT, the region is still deficient of vegetables by more than 23,000 MT. At present, this shortage is supplied by the neighboring regions of Davao and Northern Mindanao.

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Palm oil production has been increasing for the past three years because of the growing demand for palm oil products both in the local and foreign markets. At present, Caraga Region has developed an estimated 13,478 hectares with 5 major palm oil producers covering an aggregate area of 11,700 hectares. Contract growers cover about 2,971 hectares, all in Agusan del Sur. The potential area for palm oil development in the region is about 95,110 hectares with the province of Agusan del Sur having the biggest share of 90,000 hectares.

For abaca industry, the region has planted about 6,300 hectares. Among the abaca-producing

regions of the country, Caraga ranked 5th in terms of area planted to the crop with Bicol region having the largest area planted with more than 40, 000 hectares, followed by Eastern Visayas with 32,000 hectares. Caraga Region contributes only 5 percent to the national abaca production but was observed to be the fastest growing abaca-producing region in the country with an annual increase of 7 percent.

Livestock and poultry production is not significant in the region. Most livestock production

activities in the region are found in small farms or in a backyard scale which are ordinarily attended by households. Based on per capita requirement, the region has been deficient in carabeef, beef, chicken and chicken egg. The region primarily depends on supply coming from the neighboring provinces of Misamis Oriental, Davao and Bukidnon.

As identified in the Caraga SAFDZ map, about 92,459 hectares are suitable for livestock

development. Despite this potential, both meat and dairy production remain underdeveloped and no large-scale investment has been proposed for this purpose. The dairy production undertaken in Northern Mindanao State Institute of Science & Technology (NORMISIST), though considered small, has been found profitable and is now gaining recognition.

Swine and chicken production, on the other hand, are on a backyard scale. At present, there are no commercial breeders located in the region except for contract growers sparsely located in Agusan del Norte and Butuan City. The areas covered by these farms are still small, ranging from 5,000 to 20,000 heads. There are still areas available for expansion region-wide.

On fisheries, Surigao del Norte is the major producer of marine fishery products in the region.

The province has 7 marine fishery grounds and rich inland fishery resources like fresh water, brackish water and lakes covering a total area of 10,225.65 hectares. Despite these abundant resources, fishery production in the region cannot satisfy or meet the local demand. The region still depends on the fishery products coming from General Santos City and Misamis Oriental.

Mangrove areas which are utilized for fishpond purposes under Fishpond Lease Agreements (FLAs) are counted as fishing grounds. As of 2003, around 3,161 hectares of lands were released for fishpond development but only 2,417 hectares were covered by FLAs

The productivity of the coastal land resources has been adversely affected by environmental

abuse, unsustainable production practices which resulted to overfishing and land use conflicts. Sedimentation and siltation, brought about by unsound agricultural and forestry practices, mismanagement of watersheds, and unregulated mining have contributed to the dwindling fishery productivity.

Coastal resources are further depleted by illegal fishing methods such as the use of dynamites,

electrofishing in inland waters, poisoning and use of fine mesh nets. Among the most prevalent conflicts involving fishing grounds are those that involve tourism and land reclamation for industrial purposes. The destruction of coastal vegetation, like mangrove deforestation, likewise affected the fishery resources. Fishery production in the region is marked by lean fish catch in the last five years.


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The growing demand for fishery products from the growing population would require development of additional fishery areas. River and other freshwater systems have been identified as expansion areas for fishery production. Portions of the mouth of Agusan River, Masao River in Butuan City and Kalinawan River in Tubay and other river systems in other provinces have been utilized for the establishment of fish cages. Fish cages along the rivers, however, may pose hazards as these could constrict the passage of water which would result to irregular water flow. Under abnormal condition, particularly during heavy rains and high tides, the water could backflow and create damage to property in certain areas. The risk is aggravated during flooding.

c. Agrarian Reform

The cumulative accomplishment of the region in land acquisition and distribution under

Comprehensive Agrarian Reform Program (CARP) reached 209,830 hectares or 87 percent of the total target area as of December 31, 2007. The province of Dinagat Islands has accomplished 100 percent of its 8,447 hectares; followed by the province of Surigao del Norte with 95.34 percent; Surigao del Sur, 90.25 percent; Agusan del Sur, 84.50 percent; and Agusan del Norte, 82.60 per cent. The land parcels awarded to the farmers are expected to enhance farm productivity. d. Forest Management

Caraga Region was declared by the DENR as the timber corridor in the south due to its abundant

natural stands and forest plantations. Based on forest statistics, however, the region’s forest cover had significantly reduced from about 276,469 hectares of closed canopy forest in 1987 to only about 62,658 hectares in 2003. Although some of these areas still belong under protection category and classified as timberland, a greater area have been converted and cultivated for agro-forestry, industrial trees and some portions are left idle. A total of 213,811 hectares or an average of 14,254 hectares per year were lost to other uses.

Of the total area of 1,609,781 hectares allocated for production land use, about 991,528 hectares

are production forests, utilized for both timber and non-timber production. Portions of forestlands located in areas with slopes below 50 percent are also utilized for production purposes. Only about 616,019 hectares of the production forest are covered with tenurial instruments and the remaining 375,509 hectares are without tenure. The rapid depletion of the region’s forest resources is the most prevalent threat to production forests.

The Region’s plantation forests cover around 669,878 hectares stradling both the production and

protection areas. These are covered by tenurial instruments issued by DENR for industrial tree plantation, like the Timber License Agreement (TLA) and Industrial Forest Management Agreement (IFMA), and others. Most private sector plantations have commercial production objectives while government reforestation projects endeavor to rehabilitate deforested areas and protect watersheds.

A new tenurial instrument - the Co-Production Sharing Agreement (CPSA), which covers a total

area of 110,790 hectares in Caraga, was adopted to ensure sustainable development of the Region’s forest resources. It recognizes the communities as partners in forest development and hence, gives them the lead role in the rehabilitation, protection, development and management of the forests. Another tenurial instrument - the CBFM, integrates various forestry programs such as Integrated Social Forestry (ISF), Community Forest Plantation (CFP), Community Environment Project (CEP),

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Coastal Resource Management and Development Project (CRMDP) and Environment and Natural Resources-Sectoral Adjustment Loan (ENR-SECAL) among others.

e. Infrastructure and Utilities

The last five years saw rapid development of the Region’s infrastructure and utilities sector,

particularly in transportation, communication, rural electrification and water supply. The existing transport system of the region comprises several modes of transport including road, coastal shipping and air transport. It has recorded a substantial growth over the years both in terms of spread of network and in the outcome of the system. Land Transportation

The transportation sector continuous its aim of ensuring access to growth and flow of goods and services to provincial centers, and the many small and scattered centers of population across the region. Roads in Caraga consist of national roads and local roads (provincial roads, municipal roads, barangay roads and trails). The road network has grown from 7,515.59 kilometers in 1997 to about 9,340.85 kilometers by the end of 2008, of which 17.30 percent are paved, about 61.40 percent are considered to be of all-weather standards, and 21.30 percent have an earth surface. In terms of paved road coverage and service performance as measured by road densities, the region has 0.488 kilometers of road per square kilometer of land area, much lower than the 0.59 average road density of the country.

The national highways, with a total length of 1,210.68 km, constitute only 13 percent of the total

road network, but carry the bulk of the total road traffic. Of its total length, 668.80 km are concrete, 109.84 km are asphalt and 432.04 km are gravel road. Majority of unpaved segments , where most timber and bailey bridges are concentrated, are located along Dinagat Islands National Road Network, Siargao Island Circumferential Road, Surigao-Davao Coastal Road, Agusan del Sur Circumferential Road, Butuan City-Las Nieves-Esperanza-Bayugan Road, and Prosperidad-Lianga Road.

On bridges, the Department of Public Works and Highways (DPWH) national statistics showed that Caraga has 435 national bridges with a total length of 16.16 kilometers. Permanent bridge structures comprise Reinforced Concrete Deck Girder Bridges (RCDG) steel bridges with a combined length of 14.62 kilometers.

Air Transportation

The region has four currently operating commercial airports, namely, Butuan Airport, Surigao City Airport, Tandag Airport and Siargao Airport. The development and upgrading of airports is a major thrust area in the transport sector. Under SONA projects, Butuan Airport and Siargao Airport are being upgraded and modernised to meet the traffic growth, and to cater to the needs for improving the infrastructure.

For the whole region, airport statistics registered an increase in the number of aircraft movement

from 1,664 in 2004 to 2,440 corresponding to an increase in cargo from 2,189 metric tons to 2,731 metric tons and increase in the number of passengers from 150,560 to 332,381.

Sea Transportation

There are 64 seaports in the region, broken down into: two (2) baseports, five (5) terminal ports, four (4) sub-terminal ports, twenty-six (26) municipal ports and twenty seven (27) private ports.


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Baseports, terminal ports and sub-terminal ports work under the overall control of the Philippine Ports Authority (PPA).

In 2008, the total number of domestic and foreign vessels at berth and at anchorage registered 680

at Nasipit Baseport and 1,220 at Surigao Baseport. Port calls for the entire region as of 2008 increased by 87 percent from 2004 and showed that cargo throughput registered 7.28 million metric tons broken down into: 2.05 million metric tons of domestic cargo and 5.23 million tons of foreign cargo, while the total disembarking and embarking passengers passing through all seaports in the region increased to 1.52 million.

Communication

The continuing liberalization and development of the telecommunications sector has given the industry a big boost, bringing increased demand and competition particularly from multinational companies. Privatizations and deregulation have created widespread competition; technology has brought mobile communications and the Internet has revolutionized business life. All these sharply increased investment, raised the number of service providers and users and improved access to telephone services and other modes of communication.

The restructuring of telecommunications in the past 10 years involved private sector participation,

particularly in the provision of new and cellular mobile telephone services. As new transportation links carry goods and people, new communication links put people in instant contact with one another. Wireless communication, which emerged as a significant consumer service, has now grown to such an extent that all major urban areas and municipalities in the region have at least one cell site for Globe and Smart.

The telecommunications sector restructuring was geared toward increasing overall access to

telephone services to the recommended minimum of 10 mainlines per 1,000 persons. The deregulation, liberalization and modernization of the telecommunication sector have enhanced the region’s access to local and global information. The region has a fully interconnected and operational Local Exchange Carriers (LEC) in Butuan City, Surigao City and in the municipality of Cabadbaran. All major urban areas and municipalities in the region have at least one cell sites each for Globe and Smart. Globe, Smart and Sun continue efforts to expand the coverage of its GSM network to include more distant and less accessible areas in the region. With a total of 228 cell sites, communication can now easily be accessed along all major highways. Internet Service Providers (ISPs) rose to five (5) with Bayantel, PLDT myDSL, PhilCom, Smart and Globe as the key players.

Energy

Power in the region is dependent on the Mindanao power grid which is powered by hydro and diesel power plants. This is distributed in the region by six (6) distribution utilities or electric cooperatives. All municipalities, 99 per cent of all barangays and 79 percent of all sitios within the region are already energized. A large portion of the remaining un-energized barangays are mostly remote and with dispersed households which are difficult to energize as these would require extensive resources, time and effort. The remaining unelectrified barangays are found in remote areas franchised under ASELCO and SURSECO II. Alternative approaches such as stand-alone renewable energy systems and other rural electrification solutions are explored for these last mile barangays.

The region is host to a 100MW diesel-powered Power Barge 117 located in Nasipit, Agusan del

Norte. This was installed in the region sometime in June 1994 in response to the power crisis in the 1990s and also in anticipation of the growing demand for electrical power in the region. From 108.60 megawatts region-wide power demand in 1999, it increased to 137.41 megawatts in 2007. Power demand, however, dropped significantly in 2008 due to the closure of the Paper Industries

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Corporation of the Philippines (PICOP) in Bislig City with an average annual demand of 30 megawatts.

Water Infrastructure

The water sector performed well with respect to irrigation, water supply, and flood control. Irrigated area increased to 31% while safe water supply coverage now reached 88.90 percent with 34.1 percent and 35.4 percent of all households now enjoying Level III and Level II water system, respectively.

While a number of programs and projects on water supply provision have been implemented, problems on inadequate water and sanitation facilities still exist throughout the region and have been particularly acute in the remote areas. Although many communal faucets have been constructed in recent years, the growth of population has imposed even greater needs. This calls for a need to develop more projects on water supply improvement especially for remote barangays, and the strict implementation of environmental rules and regulation on watershed management.

f. Local Governance

Using indicators of good governance, the accomplishments in local governance in Caraga were

along improvements in the systems and procedures within the LGUs and in establishing better linkages with stakeholders to enhance transparency, accountability and efficiency. Most LGUs in Caraga have significant gains in simplifying operational procedures, reducing discretionary authorities, facilitating access of citizens to information on LGU services and transactions and on building the capacity of LGU technical staff to deliver better services. However, in terms of improving local incomes, most LGUs in the Caraga are still heavily dependent on their IRA. The bulk of the LGU annual expenditures go to salaries and wages which almost always hit if not exceed the maximum limit set by law at 55% for 4th class LGUs and below, and 45% for higher class LGUs.

While the provinces of Caraga belong to either, first, second or third income class, more than half

of the municipalities belong to the fourth to sixth income class. Surigao del Sur, a second class province, has 11 (65%) of its 17 municipalities belonging to the 4th and 5th class income groups while Surigao del Norte, a third class province, has all of its municipalities in the 4th to 6th class levels. Seventy percent (70%) of Agusan del Norte’s municipalities are considered 4th and 5th classes. Only Agusan del Sur, first class, gives the impression of consistency with 92% of its municipalities belong in the upper income brackets. The newly created Province of Dinagat Islands (PDI) on the other hand is considered as a second class province and has five (5) out of its seven (7) municipalities belonging to 4th income class and two (2) categorized as 5th income class municipalities.

On development planning, all provinces, except the Province of Dinagat Islands (PDI) have

already undertaken the updating of their Provincial Physical Framework Plans (PPFPs) and are now finalizing the write-up for presentation to their respective Provincial Land Use Committees (PLUCs) and the Regional Land Use Committee (RLUC). The provincial teams have also undergone various orientation on mainstreaming disaster-risk reduction measures, thematic and geo-hazard vulnerability, climate change adaptation measures and other relevant indicators.

To settle land tenurial disputes and to facilitate development initiatives in areas with Certificate of Ancestral Domain Claims (CADC), IP communities are pursuing the immediate formulation of the Ancestral Domain Sustainable Development Protection Plan (ADSDPP) in close coordination with LGUs and agencies.


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B. DESIRED SCENARIO 1. Reformulated Vision “By 2020, Caraga Region is the fastest growing ecologically-sound economy in the country steered by an empowered citizenry”

2. Development Challenges

� Need to Strengthen Local Government Units (LGUs) for Good Governance

Development interventions funded either locally or by Official Development Assistance (ODA) have been primarily dedicated to infrastructure. Lesser attention has been given to governance, social services and enterprise development which are mostly devolved functions. Local enterprises would have been good sources of additional LGU revenues but only few of the LGUs initiate local enterprises and for those which have initiatives, they are not big enough to contribute to the local budget needed for basic services. LGUs should capacitate themselves more in sustaining income-generating initiatives to raise revenues for other development efforts and thus wean themselves from IRA dependency.

� Need to Diversify Engines of Economic Growth

GVA Growth

The economy of Caraga has been historically dependent on natural resource extraction for growth. It is characterized by low value creation averaging at PHP 15 billion per year, less than one third of the values created by neighbouring Regions 10 and 11. It is also characterized by slow growth averaging at 4.2 percent (in 2002-2008) compared to the national average of 5.16 percent during the same period.

Higher economic growth has not been experienced by the region because of lack of value-adding activities. Most manufacturing companies do not establish their processing plants in the Region for various reasons, like inadequate infrastructure and transport facilities.

Mobilizing Micro, Small and Medium Enterprises (MSMEs)

With the dominance of resource-extracting industries, Caraga’s economic structure shows dualistic features with a few bigger companies with limited linkages to the MSME sector and to the rest of the regional economy in general.

Although Caraga has eco-tourism and agro-industrial potential for MSME development, the current resource flow in the banking system indicate a lack of bankable investment projects in the region. The micro finance sector is underdeveloped. The majority of the so called microfinance institutions extends consumer loans to employees and does not offer collateral-free lending for productive purposes using state-of the-art micro finance loan technologies.

Industry clusters were organized in the region to discuss concerns and hasten development

initiatives in their respective industries. The oil palm industry is experiencing some problems particularly in covering payments to its growers in the case of one oil palm company. This has put the growers in a difficult position, incurring penalties and additional interest on loans from

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banks. Another concern of the oil palm industry is the productive use of oil palm waste products and non-bearing oil palms.

The proliferation of alternative medicine ushered the way for another industry cluster to be formed. Moringa, commonly known as malunggay has been subjected to many researches as to its medicinal uses, thus, investments started to flourish. Local farmers interested to venture into moringa farming have organized themselves, thus, the cluster emerged.

The Department of Agriculture (DA) through its Regional Fishery and Agricultural Council

(RAFC) and the Department of Agrarian Reform (DAR) through its Agrarian Reform Communities (ARCs) and some private individuals also formed the High Value Vegetable Industry Cluster.

Public-Private Sector Partnership

Government support in maintaining an enabling environment for the private sector to fully develop their business initiatives was among the issues discussed in the 15th Caraga Business Conference (CBC). The business chambers sought partnership with the provincial governments in the conduct of the annual conference.

In Caraga, lack of public funds limits the scope and reach of local government programs and

projects. A strong link between the public and the private sectors is needed to ensure a shared vision and understanding of the government’s development plans and programs. Representation of the private sector in local development planning has yet to be strengthened and expanded to bolster cooperation and sharing of ideas.

Infrastructure Support Facilities

Since the birth of the region, basic infrastructures have been developed continuously and have been accorded high priority for local and foreign funding as these are viewed as an important support to economic and social services to enhance quality of life. However, the infrastructure requirements of the region still remain large, including those that provide vital links to agriculture, industries and major tourism areas. Compared to its neighboring regions, Caraga’s infrastructure is below standard in most performance indicators. Particularly, roads, power, communications, irrigation, and water supply facilities require improvement and rehabilitation. Greater effort is needed in sourcing funds for farm-to-market roads, irrigation and safe water supply in the rural areas.

� Need to Improve the Poverty Situation

Being a poor economy with a poor distribution of natural assets and wealth, the region has always had a poverty level higher than the national average. While the country managed to substantially reduce poverty, Caraga managed to reduce poverty by only 1.6 percent in 2006 but still on a level far higher than the 1997 figure. The magnitude of poor has also increased to 201,929 families from 195,622 in 2003, which means that one million people or one half of the population lives below the poverty line. This also means that more and more families would spend a larger portion of their incomes for food and limit spending for education, housing and health or for securing livelihood. Most affected are indigenous communities, uplands settlers, landless farmers and small fishers and communities in conflict affected areas.


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� Need for Harmonizing Land Uses for Sustainable Utilization and Management of the

Region’s Natural Resources

The region is blessed with natural resources, fertile lands for agriculture and forestry activities, good climate condition, rich aqua and marine resources, relatively vast tracts of forest, huge untapped mineral reserves, diverse and attractive eco-tourism sites. Based on these competitive advantages, the region’s economy is primarily anchored on agriculture, forestry and mining.

Of its total land area of 1,913,842 hectares, 70 percent is classified as timberlands and 30 percent alienable and disposable lands. Based on the Bureau of Agricultural Statistics (BAS) data, areas utilized for agricultural production accounted for approximately 26 percent of the region’s total land area. However, one of the issues confronted by the region is the overlapping and conflicting land uses and tenurial instruments/claims which resulted from the lack of harmonization and synchronization in the implementation of laws, policies and development priorities; and the lack of proper coordination between and among concerned agencies, line bureaus and between national and local governments.

Moreover, the region is saddled with issues and concerns on the utilization and management of its timberlands. The DENR data showed that roughly 74 percent of the region’s production forest representing 38 percent of the region’s land area, is already covered with tenurial instruments such as Integrated Forest Management Agreement (IFMA), Timber License Agreement (TLA), Community-based Forest Management Agreement (CBFMA) and others.

As noted, the utilization of forest resources is growing faster than the reforestation activities

as evident in the diminishing forest cover. The remaining closed canopy forest constitutes just about 3 percent of the region’s land area. DENR statistics showed that 2006 recorded the highest confiscation of illegal logs reaching 12,628 cubic meters. This was a huge rise from that of 2000 and 2004 where confiscations reached only 5,467.88 and 4,787.86 cubic meters, respectively.

Protection forests constitute 26 percent of the region’s timberlands and approximately 18 percent of its total land area. Other than these, the region has two proclaimed protected areas under the National Integrated Protected Area System (NIPAS): the Agusan Marsh Wildlife Sanctuary and the Siargao Island Protected Landscapes and Seascapes (SIPLAS). The two (2) areas, covering 16 percent of the region’s total land area, are among the six (6) key biodiversity areas (KBAs) in the region. These key biodiversity corridors were identified as priority conservation sites for terrestrial ecosystem that formed part of the Eastern Mindanao Biodiversity Corridor (EMBC). The EMBC covers areas in all five (5) provinces. The Agusan Marsh is recognized by the Ramsar International Convention on Wetlands as a wetland of international significance. Also, the DENR identified 26 critical watershed areas covering a total land area of 951,078 hectares. These areas represent approximately 50 percent of the region’s land area. Eighteen (18) of these watershed areas are supporting national irrigation systems in the region.

The proliferation of mining activities has become a concern in the recent years. Based on the

June 2009 data from the Mines and Geosciences Bureau (MGB), the region’s mining areas reached a total of 118,268.96 hectares, representing 6.18 percent of the region’s total land area. A total of 128 applications for mining exploration are being processed covering a total area of 619,254.49 hectares; 64 Mineral Production Sharing Agreement (MPSA) applications covering 406,333.41 hectares and three (3) Financial and Technical Assistance Agreement (FTAA) covering 13,010 hectares. These represent 54.27 percent of the region’s total land area.

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The region is recognized as one of the Timber and Mineral Corridors in the country due to its

rich timber resources both natural and plantation forests, and its enormous mineral deposits. About 67 percent of the country’s wood products using planted species come from Caraga. With the diverse development priorities of the region, there is a need to harmonize the region’s land uses for sustainable utilization and management of its natural resources.

While the region recognizes that its rich natural resources can significantly contribute to the

long-term development of the region, environmental protection and natural resources conservation will also be taken into account. Thereby, areas declared with permanent protection status under the NIPAS law (natural parks, proclaimed watersheds and forest reserves, military reservations, landscapes and seascapes, etc.), areas outside NIPAS that require protection because of their distinctive physical features, anthropological significance, historical and educational value, biodiversity rich areas, and areas prone to natural hazards will be considered an integral part of the protected area system in the region.

3. Key Strategies 1. Strengthen advocacy and support to development priorities for poverty reduction

Various development strategies that contribute to reduce poverty problems in the country have been outlined by the national government. The 10-point legacy and the 8 by 08 strategy of the Arroyo administration spelled out priorities like job creation, stable cost of living, strong peso, more investments, pro-poor education, pro-poor healthcare, housing and hunger mitigation, greening the environment and strong anti-terrorism efforts. The Millennium Development Goals (MDGs) and the Super Region strategy are also intended to impact on alleviating poverty. By supporting these strategies, the region stands to benefit from improved infrastructure facilities, improved agricultural productivity and enhanced investment and tourism prospects. The impacts of these foregoing projects can best be monitored through the Community Based Monitoring System (CBMS), a tool which provides policy makers and program implementers good information base for tracking the impacts of macroeconomic reforms.

LGUs’ implementation of CBMS is at varying levels. The provinces of Agusan del Sur is currently updating its CBMS of 2005. Agusan del Norte is already at its finalization stage while the rest of the provinces are still in the process of CBMS formulation. LGUs are encouraged to continuously update their CBMS as a basis for identifying the real poor and greater intervention in areas with critical levels of poverty should be strongly advocated by key development players. Convergence of efforts should also be ensured especially in poverty stricken areas to achieve greater impact. 2. Ensure food sufficiency/security

This strategy calls for sustainable implementation of appropriate agricultural development

projects. The Region’s agriculture productivity has improved for the past three years as a result of robust implementation of priority agricultural development projects. The support provided for the enhancement of grains productivity like hybrid seeds, fertilizer inputs, post harvest facilities, infrastructure facilities and technology were seen to have contributed in the performance of the agriculture sector. Support to livelihood development and other primary crops and livestock likewise


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contributed to the attainment of food security for the region. Uninterrupted implementation of these efforts may sustain the gains of the sector.

On the other hand, the land area devoted to agriculture must be protected from conversion to other non-agricultural uses. Policy instruments to penalize the owners of abandoned and idle agricultural lands should be strictly implemented to ensure the attainment of the goals for food security. 3. Pursue economic diversification and promote value-adding enterprises

Increasing agricultural productivity, strengthening industry clusters, tourism development and

building a secure and conducive investment climate are all geared toward economic diversification.

The region’s labor force is primarily employed in the agricultural and agri-related sectors of the economy. Thus, improving agricultural productivity becomes the most critical factor to be attended to. Introduction of new technologies and provision of pre- and post-harvest support to farmers and fisherfolks must be intensified. Also, value adding activities must be encouraged and given priority so that the region will mature economically, from being a raw materials provider to high value products processor. The operationalization of the industrial and economic estates in the region must be given priority. Collaboration with relevant agencies, intensification of promotion and advocacy efforts should be undertaken on this regard. Also, the region must make it easy for investors to locate in the region, with streamlined application processes, guarantee on availability of relevant resources (human resources, power, water, infrastructure etc.) and ensuring peace and order.

The gradual movement from subsistence food-crop production to a diversified market-oriented system is a manifestation of a growing economy. The provision of appropriate technology coupled with capability enhancement can hasten the diversification process.

The prospect of Caraga’s tourism industry is vast given the abundant natural, cultural and other unique tourism resources in the region. Pursuing sustainable tourism development will facilitate creation of alternative livelihood opportunities, employment generation, MSMEs development, skills development and empowerment of local communities. Strengthening support for the sector through enabling policies is one form of structural security for the development of the tourism industry.

The development and sustainability of MSMEs depends on the support provided by the government. Factors that can propel development of MSMEs should be pushed by the government to advance the growth of MSMEs in the region. These include financing assistance and safeguards against illegal entries of imported but low quality goods. Financial assistance through loans may be extended to MSMEs by offering low interest rates.

One area that needs to be assessed also is the availability of skilled and competent workers for the industry. Manufacturing MSMEs for instance, would require competent manpower to cope with market standards. The Department of Labor and Employment (DOLE) and the Technical Education and Skills Development Authority (TESDA) have initiated the formulation of the Regional Human Resource Action Plan, 2007-2010 and the Regional Technical Education Skills Development Plan which would chart the harmonization of the industry/MSME needs. These efforts should be supplemented by relevant programs from the DepEd, DoH, CHED and the LGUs.

The LGUs, on the other hand can harness the development of the MSMEs through the adoption

of appropriate mechanism like the implementation of the Barangay Micro Business Enterprises

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(BMBE) Law and in mobilizing their own resource to improve productivity like operationalization of a one-stop shop and thereby facilitate economic growth.

Marginal agriculture areas suitable to oil palm in the region should be explored to boost

productin. The aggregate volume of production of current growers can barely supply the required volume for a viable palm oil processing plant. The establishment of palm oil processing plants in the Region most appropriately in Agusan del Sur where the two (2) oil palm industries are located can create value-adding enterprise to the region and additional employment opportunities.

The venue for economic diversification shall primarily be the Strategic Economic

Development Zones (SEDZ) and Alliances. The LGUs shall encourage locators, provide one-stop-shop for processing of business permits, provide tax incentives and improve infrastructure support in their respective economic zones in order to entice investors in their priority products and preferred industries:

√ Nasipit, Agusan del Norte Industrial Estate (NANIE) – wood-based industries, agri-aqua

based industries, food processing, light and medium labor intensive; industries, oleochemical plants, toys and gifts houseware, export/import trading.

√ Tubay Agricultural Processing Center (TAPCEN) – for agricultural products processing; √ Shannalyne Technological and Environmental Park (STEP) in Agusan del Sur – wood-

based production and processing; √ Lanuza Bay Development Alliance (LBDA) – integrated and sustainable management of

uplands, lowlands, river systems and coastal resource of the bay including Solid Waste Management

√ Lake Mainit Development Alliance (LMDA) - Lake Mainit Development Alliance (LMDA) – conservation and protection of the ecology of the lake system and the surrounding environment that sustain Lake Mainit

√ Hinatuan Passage Development Alliance (HIPADA) – community-based integrated coastal management process and programs; and

√ Siargao Island Protected Landscape and Seascape (SIPLAS) Development Alliance – converse, protect and develop priority ecosystems and habitat (water adventure, natural scenery, rich history, business enterprise and entertainment)

4. Rationalize and promote ecological diversification without destroying the environment.

This strategy supports the aspiration on ecological balance and social stability. The increasing

demand of the growing population created pressures on the environment and natural resources. The goal of sustainable development cannot be attained unless responsible management of these resources shall be effectively employed by the stakeholders. Appropriate land utilization coupled with environment-friendly technology can ensure ecological and social integrity. Harmonization of policies relative to the development and management of natural resources geared towards balanced development should be the priority of the concerned agencies to resolve conflicts and encourage the growth of investments in the region. Respect to customary laws and ancestral domain claims should be exercised to maintain peace and encourage participation among stakeholders.

There are existing laws and guidelines that offer sustainable development and responsible utilization of resources. Mining activities should be guided by the policy of responsible mining


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practices and management. Strictly enforcement of laws to protect the integrity of the environment should be observed while responding to economic development priorities. The Department of Environment and Natural Resources (DENR), Environmental Management Bureau (EMB) and Mines and Geo-Sciences Bureau (MGB) should seek a bigger share of the DENR budget to strengthen their monitoring activities not just in the mining industry but of other industries as well. Environmental safeguards shall also be pursued for other industries in the region.

Areas considered protected under NIPAS and other pertinent laws should be excluded from mining development. Other areas like critical watershed as identified by the LGUs and community as primary source of potable water should likewise be excluded in the mining application. Free, Prior and Informed Consent (FPIC) should always be part of the process in every development.

The foregoing concerns facilitated the creation of a joint Regional Land Use Committee (RLUC) and Regional Mineral Development Council (RMDC) Technical Working Group to conduct study on the different land use issues. The initiative undertaken by the joint RLUC and RMDC on land use harmonization should be pursued to address the issue on land uses.

Any development intervention should put prime importance on beneficiaries’ or target communities’ participation from project conceptualization to avoid conflicts and harness community efforts to develop and advance themselves for peace and human security.

5. Intensify a rationalized infrastructure development in settlements and key production

areas.

Increase budgetary allocation and ensure efficient use of resources.

Infrastructure support has contributed significantly in agricultural development through increased productivity. The provision of farm-to-market roads facilitated the easy transport of goods to the market thereby cause the sector to improve its outputs. Critical infrastructure projects are pipelined for implementation from 2007-2010. These infrastructure projects are already listed in the super region development framework and some were acknowledged as part of the President’s commitments in her State of the Nation Address in 2006 and in 2007.

Other priority infrastructure projects of the region are the upgrading of seaports, airports and national highways. The assured budget support for the priority infra projects ensure its implementation.

Increasing police visibility in entry and exit points in the region as well as in other public utilities such as terminals, national highways shall be pursued for safety of the public and to help reduce crime incidence. 6. Strengthen and sustain partnership among stakeholders to expedite socio-economic

development of the region.

An effective, efficient and responsive government bureaucracy is ideal in promoting the region’s growth potentials. Yet socio-economic development cannot be attained by efforts of the government alone. Progress has been made in fostering partnership between and among government institutions and civil society groups. Critical partnerships should be strengthened to sustain an environment of

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trust, confidence and collaboration for peace and development. These efforts need to be sustained until 2010 and beyond.

One area that can sustain strong partnerships is the strengthening of inter/intra alliances through institutional capacities for better participation in decision-making process such as planning, policy formulation, project/program development, implementation and monitoring. The institutionalization of the Regional Geographic Information System (GIS) Network, a multi-level and multi-sectoral linkage in data, information and knowledge sharing, human resource development and technology transfer provides a more effective planning, management, monitoring and evaluation of development initiatives in the region.

The LGUs and the political will of Local Chief Executives (LCEs) are the best mechanisms to maintain peace and order in the communities. With the help of the different stakeholders in the Local Peace and Order Councils, LCEs should take the lead in initiating activities to enhance economic activities especially in remote areas and ensure community participation to help curb insurgency. Development interventions should prioritize likewise these remote areas and should come as responses to these communities’ true needs. Strong coordination with the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) should also be ensured for a more comprehensive approach to maintaining peace and order in the communities. Specifically, more effort should be poured in Andap Valley, in Surigao del Sur to make a strong and sustained government presence in these areas.

7. Integrate Rights-Based Approach (RBA) in development

Mainstreaming rights based approach to development at all levels is essential to integrate RBA in

the development process. RBA related capability building interventions need to cascade down to the LGU level. The formulation of the National and Regional Human Rights Action Plan shall be pursued in a participatory manner. Preparation of RBA tools including monitoring and evaluation tools is necessary for the effective implementation and monitoring of the region’s compliance to the to the different international human rights instruments of which the country is a signatory/state party.

Formulation of the Regional Human Rights Action Plan (RHRAP) shall be pursued. This shall take into consideration the eight (8) thematic clusters headed by different agencies. The members of each cluster are expected to incorporate in the RHRAP issues and concerns and programs and projects in their respective thematic chapters for subsequent implementation in the planning processes and documents in the region.

8. Uphold integrity and accountability in government primarily in the areas of finance, service

delivery and governance

Strengthen LGU Income Generation for Less IRA Dependency

The LGUs can increase real property tax (RPT) collection by updating the tax mapping of real

properties. Butuan City in particular has updated the assessment value of Butuan City’s RPT under the Real Property Appraisal and Assessment Operation. This is expected to increase RPT collection of LGU for CY 2009.


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The business tax collection can be strengthened through encouraging new private investments in their localities particularly anchored on their niches such as agriculture and high value crops for Agusan del Norte, forestry and agriculture for Agusan del Sur, fishery and responsible mining for Surigao del Norte, Surigao del Sur and Surigao City. The PDI is to strengthen its gains as a newly created Province and invite tourism investments and infrastructure support from the government. Butuan City should capitalize on its role as the regional government center and its rich history while Bislig City can encourage new investments in fishery and forestry.

Improved infrastructure and services, such as rehabilitation/construction of bus/jeep terminals,

expansion of public markets and slaughter houses, to support the LGU-operated economic enterprises would increase revenues for the LGUs.

Integrate Systems to Ensure Transparency and Accountability in Government

o Anti-Red Tape Act

The implementation of The Anti-Red Tape Act (ARTA) is a mechanism for the government

to ensure transparency and accountability in government. Among the LGUs, Agusan del Sur, Surigao del Norte and Dinagat Island have completed

their Citizen’s Charter while Surigao del Sur and Agusan del Norte are still in the process of finalizing their Citizen’s Charter. Butuan City and Surigao City have completed their Citizen’s Charter while Bislig City is still finalizing preparation of its Citizen’s Charter.

There is still a need to implement all aspects of ARTA not just the aspect of Citizen’s

Charter.

o Integrity Development Action Plan

The Presidential Anti-Graft Commission (PAGC) is pushing for the Integrity Development

Action Plan (IDAP) to be cascaded in the Regions. Caraga Region through the advocacy of the Regional Development Council shall help promote the main features of the IDAP which are: (1) Prevention – strengthens internal control among organizations; (2) Education – dissemination of anti-corruption rules and regulations and conduct of ethics training; (3) Investigation and Enforcement – development of internal complaint/affairs unit and use of administrative disciplinary machinery; and (4) Strategic Partnerships – enhancement of the private sector and civil society participation in governance and linking of databases of complementary agencies.

o System on Competency Assessment for Local Governments (SCALOG)

The implementation of the SCALOG through the Department of Interior and Local

Government (DILG) shall help establish a self-assessment tool for LGUs to measure organizational competencies or the organizational and governance environment within which the LGU delivers its services. The seven (7) clusters for area of organizational competencies are (1) organization and staffing; (2) legislative support; (3) transparency; (4) management systems; (5) participation; (6) continuous improvement; and (7) customer service.

Rationalization Plans and Staff Complementation

To improve the efficiency of government services within affordable levels and in the most

accountable manner, there is a need to push for the full implementation of the Rationalization Plans of

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government agencies even with the possibility of a change in the government administration. Given its intent to rationalize and abolish redundant and duplicating positions, it also provides Caraga’s regional line agencies the opportunity to secure a full personnel complementation.

Local Planning

Full downloading and subsequent adoption of the provinces of the Disaster Risk Reduction

(DRR) – Enhanced Provincial Development and Physical Framework Plan (PDPFP) shall be pursued.

9. Sustaining fiscal gains

On LGU’s fiscal sustainability, the five provinces need to competently demonstrate prudent fiscal management as key strategy. The LGUs should be able to efficiently manage their expenditures within the programmed limits on one side and should be able to increase tax collection by curbing unscrupulous and counterproductive activities. Further, local interventions should focus on increasing opportunities and growth for investments and enhancing competitiveness of human capital.

Innovations adopted by Surigao City to increase its income should be replicated by other key LGUs of the region to make them less dependent from the internal revenue allotment.

10. Adaptability to climate change

In order to address impacts of climate change, workable strategies should be pursued at the local levels. Strengthening the awareness of key stakeholders and communities through fora and public consultations shall be initiated by concerned agencies. Along with this, an assessment of vulnerable areas and communities shall be undertaken to determine appropriate interventions.

For inter-sectoral and spatial concerns, disaster risk reduction measures have been mainstreamed in the regional physical framework plans and the provincial development and physical framework plans.


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Carmencita S. Cochingco Regional Director, NEDA Caraga

Nimfa Tiu Building, J. Rosales Avenue, Butuan City

Email Address: [email protected], Website: http://caraga.neda.gov.ph TeleFax No. : (085) 815-03-08, Phone No. : (085) 342-5774

regional development agenda (2010-2020)

Documents

philippinesfame center

growth agenda

development challenges3

ecotourism fame center

philippines regions

philippines national

poverty incidence

ecotourism destinations2