Autonomous Region in Muslim Mindanao - Economy

Economy

The region is one of the most impoverished areas in the Philippines. It has a per capita gross regional domestic product of only PhP3,433 in 2005, 75.8 percent lower than the national average of PhP14,186. It is the lowest among the Philippines' 17 regions, the second lowest region has a per capita income almost double the ARMM's. ARMM has a population of 4.1 million based on the 2007 census. It is the country's poorest region, where average annual income was just 89,000 pesos ($ 2,025) in 2006, less than 1/3 of Manila level.

Poverty incidence in the region is a high 45.4 percent in 2003, almost twice the national average of 24.4 percent. Significant progress has been made in reducing poverty in the region, which was reduced by 10.5 percent from the 2000 figure, only the Caraga region has a higher poverty incidence in 2003. Lanao del Sur reduced its povery incidence by as much as 26.9 percent, placing itself as the 12th most successful province in poverty reduction. Tawi-Tawi and Sulu have reduced their figures by 18 and 17.6 percent, respectively. In 2000, all the four provinces of the ARMM were among the 10 poorest in the Philippines. By 2003, Lanao del Sur, Sulu and Tawi-Tawi were out of the bottom 10, leaving only Maguindanao, which remains to be the second poorest or the second with the highest incidence of poverty among the Philippines' provinces.

^a 79 provinces in 2003.

^b 77 provinces with data in 2000.

^c Not yet part of the ARMM in 2000. 2000 figures include Isabela City.

^d 2003 figures exclude Isabela City.

^e Figures include Shariff Kabunsuan, exclude Cotabato City.

Despite the autonomy, ARMM receives approximately 98% of its operating revenue from the National Government of the Philippines, and has yet to create significant, viable sources of additional revenue. Perhaps for this reason, the per capita spending on such vital services as education and infrastructure are among the lowest in the Philippines, and the five provinces of the ARMM continue to be ranked consistently on the lower rungs of economic development within the country. The per student expenditure on education, for example, is less than $100, with the result that students within ARMM schools generally score poorly, in comparison with other provinces, on standardized achievement tests administered throughout the country.

ARMM is one of the country's top producers of fish and marine resources, particularly seaweed, which is used in some toothpastes, cosmetics and paints. It has large mineral deposits, including copper and gold.