Industrial Growth and Problems
Situationer Ways forward.
Higher levels of production and productivity are required to address existing supply gaps, to meet the increasing demand brought about by increasing population (and per capita consum-ption) and to respond to increasing competition from foreign producers.
From 1987 to 1997 the industry sector accoun-ted for 35% of the country’s GDP. On a per region basis, about 35% emanated from NCR, that dominates other regions in terms of invest-0ments in socio-economic concerns and infrastructure and host to national and international activities of government and the private sector.
By the 70s concern for the environment as a result of such concentration in Metro Manila led to the industrial dispersal policy and the more recent “national dispersion through regional concentration”.
As of May 1998, there were 13 Regional Agro-Industrial centers in the country spread from Cagayan down to Maguindanao. In addition, 9 Industrial Growth Corridors were also established from the Cordilleras down to Sultan Kudarat, including CALABARZON, RIZLAQUE, SOSKSARGEN, and SUDOPARIM.
On the provincial level, 20 provinces are prioritized for agro-industrial center development from Abra down to Surigao.
The Special Economic Zone and Bases Conversion and Development Acts provided for the establishment of 100 ecozones (including 37 Export Processing Zones) and the transformation of 0.12 million has. of former U.S. territory into eco zones or industrial development uses.
In addition, there are 5 Eco Zones managed by the BCDA (SBSEFZ, CSEZ, JHSEZ, PPSEZ and BTP). There are also over 400 firms within the country’s IT parks. In addition to the recommendations in the agricultural sector, inasmuch as agriculture is also a production sector, the government is guided by the following macro policies:
• review of the performance of existing industrial areas towards a decision on whether they should be maintained and supported, or used for alternative activities;
• exploration of alternative uses for non-performing industrial areas;
• promotion of the growth of IT industries as an economic activity, without prematurely constraining their locational preferences, and providing infra support and other appropriate Special Economic Zones incentives;
• promotion of ecotourism concept among existing tourist/recreational facilities and new projects as an alternative to other possibly destructive industrial projects;
• promotion of Industrial Peace; and
• promotion of clean production techniques.
Special economic zones or ecozones are selected areas with highly developed centers or which have potentials to be developed into agro-industrial, industrial, tourist/recreational, commercial, banking, investment and financial centers. May contain industrial estates, export processing zones, free trade zones and tourist/ recreational centers.
References:
1. NEDA, National Framework for Physical Planning 2001-2030, 2002
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