The three major shadow economies in Mindanao

By Che Palicte
There are three major shadow economies in Mindanao, according to the book “Out of the Shadows: Violent Conflict and the Real Economy of Mindanao” which had its launching at the Grand Men Seng Hotel last Tuesday.
Francisco Lara Jr., Philippines country manager of International Alert and one of the authors of the book, said that guns, drugs and kidnapping are the three economies that pose huge physical risks for local people and directly challenge the authority of the state and runs the risk of undermining peace-building efforts in Mindanao.
“This study does not suggest that the people are unaware of the present situation of the economy, this tries to make a connection between the shadow economy in Mindanao and incidents of violent conflicts and poverty,” he said.
Ed Quitoriano, director of Risk Asia Consulting, said that everybody should know why the gun is the usual suspect in economic violence in Mindanao.
“With the book we can be able to look at the findings in terms of how do we move forward beyond the traditional call of controlling guns in order to reduce crime in connection with economy and state building,” Quitoriano said.
Meanwhile, Rufa Cagoco-Guiam said that drug trade persists and flourishes in Mindanao and has been a major problem that connects to the economy.
“Our research focuses mainlyon two provinces, Maguindanao and Lanao del Sur, where the drug rates are high even if the provinces are low in lifestyle and high in poverty rate,” Guiam explained.
She said that they would try to tell the public through the book about Lanao del Sur as a “Narco Politic province” where seven local chiefs engage in the illegal drug trade operating neatly, and mimicking a large corporation named “Lucky 7 Club” where each local chief executive handles illicit trade in illegal drugs. “These problems should be seriously addressed,” she added.