Australian Journal of Basic and Applied Sciences, 9(31) September 2015, Pages: 268-274 ISSN:1991-8178 Australian Journal of Basic and Applied Sciences Journal home page: www.ajbasweb.com From Mountainous Terrains to Industrial Complex: The Bataan Export Processing Zone (BEPZ) and the Freeport Area of Bataan (FAB), Philippines Rosaly P. Malate Student-Graduate School/Faculty Member, University of Santo Tomas, Faculty of Engineering - Department of History, Espana, Manila 1008 Philippines ARTICLE INFO ABSTRACT Article history: Background: The rationale behind Philippine government’s decision to establish an Received 28 August 2015 Export Processing Zone (EPZ) or Economic Zone was to boost the country’s Accepted 15 September 2015 development through export-oriented industries. Since the establishment of the Bataan Available online 15 October 2015 Export Processing Zone (BEPZ), the rural town of Mariveles slowly turned into progressive industrial complex. The identification of the changes in the land use of Keywords: Mariveles Bataan brought about by the development of the Bataan Export Processing Export-Processing Zone Zone from its first year of inception to 2014 was the primary objective of this research. Bataan Export Processing Zone The research was a historical description with a view of sharing the synoptic picture of Bataan Economic Zone the changes brought about by the development of export processing zone or economic Freeport Area of Bataan zone and Freeport area in relation to the land use pattern of Mariveles Bataan. Primary Zone, Land Use, and secondary data was the bases of the research. The study concluded that availability Mariveles, Bataan of infrastructures and services greatly influenced the attractiveness of the zone to Zone foreign and domestic investors. The provisions of infrastructure external to the zone Infrastructure proper have positive spill over to the local community of Mariveles Bataan as well as to Services the national economy. © 2015 AENSI Publisher All rights reserved. To Cite This Article: Rosaly P. Malate, From Mountainous Terrains to Industrial Complex: The Bataan Export Processing Zone (BEPZ) and the Freeport Area of Bataan (FAB), Philippines. Aust. J. Basic & Appl. Sci., 9(31): 268-274, 2015 INTRODUCTION would uplift the living conditions of the people especially in the countryside (Ibid). On October The establishment of the Export Processing 2009, Pres. Gloria Arroyo signed into law Republic Zone (EPZ) hoped to give realization to then Pres. Act No. 9728. Republic Act No. 9728 or the Freeport Ferdinand Marcos’ dreamt of industrialization thru Area of Bataan Act converted the Bataan Economic export promotion. The municipality of Mariveles in Zone into a Freeport Area. The Freeport Area of Bataan province hosted the very first EPZ of the Bataan (FAB) was a special economic zone and country. In 1972, the Bataan Export Processing Zone Freeport with a dedicated governing authority, the (BEPZ) was established. BEPZ hoped to facilitate Authority of the Freeport Area of Bataan the attainment of the country’s development (AFAB).The Act allowed the zone to fulfil its objectives through job creations, training of skilled original mandate of becoming a catalyst for progress workers, technology transfer, and increase in foreign and development and to create employment and exchange earnings. These remained the zone’s livelihood opportunities to the people. Since then the objectives from its first year of inception up to the once mountainous town surrounded by water and present. The succeeding Philippine Presidents relied heavily on fishing and farming as means of continued to promote foreign investments in the subsistence gradually became a progressive industrial export processing zones by signing in more laws. complex. When BEPZ failed to fulfill its mission of The establishment of the Bataan Export countryside development through export Processing Zone or Economic Zone and Freeport manufacturing, Pres. Fidel Ramos signed in Republic Area of Bataan to the municipality of Mariveles has Act No. 7916 in 1995 that created the Philippine contributed to the absorption of labor in Bataan Economic Zone Authority (PEZA) (PEZA, 1995). Province and open opportunities for other socio- The Bataan Economic Zone (BEZ) replaced Bataan economic conveniences in the modern sector of the Export Processing Zone. The government hoped to economy. Hence, the focus of this research was the promote and speed up a viable and balanced presentation of the significant changes in the land use industrial, economic, and social development that that had taken place because of the development of Corresponding Author: Rosaly P. Malate, Student-Graduate School/Faculty Member, University of Santo Tomas, Faculty of Engineering - Department of History, Espana, Manila 1008 Philippines 269 Rosaly P. Malate et al, 2015 Australian Journal of Basic and Applied Sciences, 9(31) September 2015, Pages: 268-274 the Export Processing Zone (EPZ) from the first year consist of the pastureland, 19% of forestland, 6% of its inceptions up to 2014. agricultural lands, and the remaining 6% for Most of the existing studies view the Export residential and industrial use (NCSO Record, 2010). Processing Zone as a national project but there was Mariveles was very much underdeveloped an absence of its’ benefits and effects to the local before the establishment of BEPZ. Road networks community. Though some studies have offered were at low standard. Business was quite poor. The objective insights into the existing conditions in EPZ, stores catered to community residents whose main there was an absence of comprehensive information livelihood depended largely on fishing and farming. on the changes in the land use that have taken place A very small percentage of the population employed because of the establishment of EPZ. Most studies in NASSCO (National Steel and Shipbuilding focus on EPZ and its effect on the national economic Company), public works in Sisiman and in National growth but not the effect of EPZ’s on the local Mental Hospital (Municipal Development Plan economy. This research hoped to present the missing Report, 1980). literature needed in understanding the effects of the Taken into consideration its geographical and export-processing zone not only on the Philippine economic characteristics, Mariveles hosted the very society but also most especially to the local first export-processing zone of the country. Early community of Mariveles Bataan. proponents of export-processing zone considered such characteristics of Mariveles as potential hubs MATERIALS AND METHODS for non-urban, decentralized industrial development. They favored placing export-processing zone away The study adopted the historical method to show from urban and populated centers to encourage job the changes in the land use of Mariveles Bataan creation and economic development in rural areas because of the establishment of the Export and to reduce the rural-urban migration. Mariveles Processing Zone. The study was a qualitative was a suitable place. Aside from its deep-water bay research that utilized the archival records from the capable of accommodating ocean-going vessels, it municipal and the government agencies involved in has an existing repair and pier facilities with berthing the operation of the zone. Hence, it was a space for at least three ocean-going vessels. The compilation of available primary and secondary National Steel and Shipbuilding Company became sources of information from the reports of the Export Bataan Engineering Company (BASECO) in order to Processing Zone Authority (EPZA), Philippine provide serviced for the new zone. The development Economic Zone Authority (PEZA), and Authority of of modern and efficient facilities in the site, which Freeport Area of Bataan (AFAB). Documents was about fifty-five kilometers away across Manila accessed from the Department of Labor and Bay, may relieve congestion at the port of Manila. Employment, Department of Trade and Industry, Furthermore, the availability of government Institute of Labor Studies, libraries, and certain EPZ- reservations and public lands in Mariveles can based enterprises. Publications such as journals, accommodate the establishment of industries and Annual Reports, Philippine Statistics Authority, there was no need for expropriation proceedings to seminars and conference reports, newspaper and acquire all the lands needed for the development of magazine articles, doctoral dissertation and theses, the new zone. The selected site for the BEPZ was the and papers on related topics were sources of data. Barrio Nassco, the land formerly occupied by the Various documents such as maps, road plans and military reservation of the United States. Given up in road constructions and town planning were included. 1965 after 40 years of occupancy, that hectares of Conducted were unstructured and structured key lands settled Barrio Nassco, BASECO, and the informant interviews of some personnel from the Bataan Export-Processing Zone. Mariveles Municipal Office, local government BEPZ, according to its master plan, has a total officials and the zone’s authorities. land area of 1,209 hectares of which 345 hectares devoted to industries, 374 to housing, and 490 as Results green area. The zone rented all lands and provided Mariveles was one of the eleven municipalities the necessary infrastructures of water and electricity. and one city that comprised the province of Bataan in The BEPZ built its own water treatment facilities.