The economics of the BBL

WHEN we talk about the Autonomous Region in Muslim Mindanao (ARMM), the discussion about the past, present, and the future seems circular. The peace and order problem is because of the economic problems which are caused in part by the peace and order problem.

Because you can have peace and order without the ‘money’, but you can rarely have the money without peace and order, perhaps the best place to break the circular chain is by looking closely at the economic provisions contained in the Bangsamoro basic law (BBL). Granted that the BBL is only a framework, the terms and conditions embodied in the BBL are what the parties have initially agreed to and will form the basis of the actual law moving forward.

The newly established Bangsamoro Territory (BT) from the present geographical area of the ARMM has been considered a first step to the federalization of the other Philippine provinces. Others have said that the BT will function as an independent state. The truth probably lies somewhere in between. However, the current specific provisions of the BBL clearly show that the BBL is fully a part of the Philippines and under the national government and in other cases is, for all intent and purposes, completely independent from the Philippines.

In Section 3, “Exclusive Powers” of the BBL, we find the following: “Exclusive powers are matters over which authority and jurisdiction shall pertain to the Bangsamoro Government. The Bangsamoro government shall exercise these powers over the following matters within the Bangsamoro.” Sub-section 5 reads “Labor, employment, and occupation.”

Wages are obviously a part of “Labor, employment, and occupation.” Would workers in the BT be subject to the minimum wage laws passed by the national government? In the US federal system, the national government sets the minimum wage and state government can set a higher wage but not lower. In this regard, the BT might as well be an independent country.

Subsection 4 under these Exclusive Powers reads, “Trade, industry, investment, enterprises and regulation of businesses taking into consideration relevant laws.” Now we have a grey area. What exactly is going to be the definition of “consideration”? The legal definition deals with contract law-something given in return for payment. Otherwise, consider means only to take into account when making a decision. Therefore, there is not a legal reason why the BT government needs to follow Philippine national law in this regard.

The BT could conceivably pass investment laws which would give it a greater advantage in attracting investment than other provinces have under current national law. This includes foreign investment.

Section 13 allows the BT government full and complete control and jurisdiction over the exploration, development, and utilization of mines and minerals in its territory. There is not any provision in the BBL that requires the BT government to adhere existing PHL government environmental regulations regarding mining. “The Bangsamoro Government shall have the authority to protect and manage the environment.” Further, “Permits and licenses and the granting of contracts for this purpose shall be within the powers of the Bangsamoro Government.”

Yet in Section 10: “The Bangsamoro Government and the Central Government shall jointly exercise the power to grant rights, privileges and concessions over the exploration, development and utilization of fossil fuels (petroleum, natural gas, and coal) and uranium in the Bangsamoro.” That sounds like Federalism.

Also under its “Exclusive Powers” (Section 15), “The Bangsamoro Government shall have authority to regulate power generation, transmission, and distribution operating exclusively in the Bangsamoro and not connected to the national transmission grid.” The BT may have cheap nuclear generated power before the rest of the country.

However, “The Bangsamoro shall be able to interconnect and sell power over the national transmission grid to electric consumers.” With interconnection, “the Central Government and the Bangsamoro Government shall cooperate and coordinate” whatever that might mean.

The most important economic provision comes in Section 6: Revenue Sources. “The Bangsamoro Government shall have the power to create its own sources of revenues and to levy taxes, fees, and charges. Such taxes, fees, and charges shall accrue exclusively to the Bangsamoro Government.”

That may ultimately be what the BBL is all about. For better or worse and notwithstanding other considerations like the constitutionality, if the BBL is enacted into law as currently written, the future of the Bangsamoro people will be solely in the hands of its own government.

Lost in the dust of history is the name of the person who once said, “Be careful what you ask for; you may get it.

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source:  Business Mirror