Dev’t, capacity building for cities
This will support decentralization and public financial management by helping cities widen their own-source revenue bases.
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This will support decentralization and public financial management by helping cities widen their own-source revenue bases.
An attractive proposition and a necessary goal to further improve the state of the Philippines is to accelerate and sustain inclusive growth in the country. But what exactly needs improvement? How can this be achieved? What does it entail? How will it benefit the Philippines?
Metro Manila is already developed and, in my opinion, not the priority in making more improvements. The cities outside Metro Manila are, however, a different story altogether. The economic competitiveness and resilience of said cities require much improvement.
The development of these cities as engines of growth that are inclusive, environmentally sustainable, and strong is the foundation with which to realize these improvements. Specific areas may need financial inputs, and technical support varies from city to city.
Examples of sectors to focus on are energy, environment, governance, health, local economy, small to medium entrepreneurship, taxation, technology and education. The enumeration is not exclusive and may be expanded.
Generally, the growth trajectories of nations are closely linked to their urban environment, where cities act as propulsions of growth and lay the groundwork for their foundation. At first glance, it may seem like a tall order, but with proper planning, preparation, and stakeholder cooperation, it becomes achievable. If urban growth is well planned, cities can accelerate regional economic growth, innovation, and the end goal of prosperity for all.
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Circling back to my initial point on why cities outside Metro Manila are important to focus on for development, these smaller cities have a relatively high urban population concentration and hold the most growth potential. Although varying in size and level of development, they are equally important in ensuring the country's success.
To achieve this would require the cooperation and participation of various sectors and stakeholders. Government agencies, various leagues of local government units, civil society groups, non-government organizations, and the private sector, which may include corporations, business chambers, and trade associations, must all be involved.
Implementing this undertaking will be an opportunity to remind everyone of the importance of the "whole-of-nation" approach. Government agencies that top the list of entities expected to shore up this collective effort include the Department of the Interior and Local Government, National Economic and Development Authority, Anti-Red Tape Authority, Department of Finance, Department of Trade and Industry, Department of Health, and Department of Education.
The participation of the Philippine National Police is also crucial, as business can thrive only in an atmosphere of peace and security.
The benefits of capacity building for cities are many. Initially, the more apparent recipients are the affected cities themselves and their inhabitants. However, increased capability will lead to a more efficient and equitable distribution of resources and delivery of services to the specific sectors we have mentioned. This will support decentralization and public financial management by helping cities widen their own-source revenue bases.
It also helps cities enhance tax collection efficiency, access debt capital markets, and strengthen their public financial systems to create a more equitable fiscal framework geared towards inclusive growth. Decentralization also improves governance, with cities becoming more accountable and transparent to their constituencies. With accountability and transparency, the city becomes an attractive destination for investments.
Local entrepreneurs will be one of many who will seize upon these attractions, but foreign investors as well. The different benefits and positive impact foreign direct investments provide a country deserve another article in the future.
For now, let us all call on our government and the private sector to join hands in developing and building capacity for all cities in the Philippines. Let us contribute to moving our country forward and taking it to new heights.
