Local distributors, who act as agents of transnational companies, control the sale of the imported seeds, fertilisers and farming equipment that have swamped the market since the early '80s. The distributors also provide the essential service of granting loans to impoverished peasants in order to afford the high-priced imports. But the loans come with a mind-boggling price tag. As a result, poverty is endemic in the rural areas. The Filipino National Economic and Development Authority estimates that rural poverty reaches 73 per cent, while the national poverty level hovers around 32 per cent.
Conditions are especially appalling on the southern island of Mindanao.
Classified among the Philippine's most impoverished provinces, the island's per capita GNP is six times lower than the national average. Half of the work force is unemployed. The MLNF has battled the central government since 1969 demanding self-determination. In a country where 83 per cent of the population is Roman Catholic and the economic and political elites are Christian, Muslims constitute a marginalised and impoverished minority. Allegedly supported by the Afghani Taliban, Abu Sayyaf gained worldwide notoriety last spring when it captured and held 21 foreign hostages.