INDUSTRY CLUSTERING: A STRATEGY FOR REGIONAL ECONOMIC DEVELOPMENT IN CARAGA REGION, PHILIPPINES

 

The Caraga Region is composed of four provinces: Agusan del Norte, Agusan del Sur, Surigao del Norte and Surigao del Sur.  Considered as the richest region in terms of natural resources, Caraga sits on 3.5 billion metric tons of metallic and non-metallic reserves. Thousands of hectares are planted with timber trees, oil palm, abaca, banana, and other commodity crops. 

 

Despite the richness of its natural resources, Caraga ironically, is one of the poorest regions in the Philippines. The poverty rate of the region which is fifty point two percent (50.2%) is actually worse than that of the entire country, which is only thirty-four percent (34%).

 

To spur regional economic development, the Regional Development Council or RDC adopted the Industry Clustering strategy on March 17, 2004 through RDC Resolution No. 6, as a way of enhancing the region’s competitive advantage. 

 

Industry Clustering is identified as a major strategy for countryside development and is seen as a focused approach in investment promotion.

 

The strategy promotes networking among local enterprises, buyers, input providers, local policy makers, the academe, research institutions, transport and hauling providers and other stakeholders in the industry, and provides them with a venue to regularly consult with one another.

 

Industry Clustering facilitates investments for the eight clusters in Caraga; which are the wood, oil palm, tourism, abaca, high value vegetables, seaweed and arts and crafts clusters. Combined, the 8 clusters have an investment potential that is estimated to amount to at least P80 billion.

 

Industry	Investment Potential (Value adding activities not included)
Wood	P50 billion
Oil Palm	P10 billion
Tourism	P10 billion
Banana	P5 billion
Abaca	P2 billion
High Value Vegetables	P2 billion
Seaweed	P500 million
Arts & Crafts	P500 million

 

 

There are also emerging industry clusters in the region. The mining, coconut and processed food industries are among the identified emerging clusters. When fully developed, these two emerging clusters would contribute a significant amount of investments.

 

With strong commitment and close partnership of the region’s industry leaders, government sector, academe, and people’s organizations coupled with the support of the Caragans as a whole…we create an environment conducive to business growth.

 

FORESTRY. AGRICULTURE. MINING. ECO-TOURISM (FAME)

 

Go for FAME in Caraga.