ONE OF what I call practical indicators of progress is the changing landscape in certain cities, towns and provinces. The change is brought about either by government infrastructure projects or private sector initiative or both.
Now that I’m back in the private sector as a full-pledged businessman, and because of the nature of my core business (real estate), I see the changes more often. For more than three decades, my Vista Land & Lifescapes has cemented its position as the country’s largest homebuilder, having delivered about 400,000 homes to Filipino families throughout the country.
The company, through its various operating units, has established presence in 100 cities and municipalities – in Luzon, Visayas and Mindanao – and I thought we have reached the peak.
My recent travels around the country, however, changed my mind – many second-tier and third-tier cities and municipalities are booming, creating opportunities for business and livelihood. Mega Manila is still the biggest contributor to gross domestic product (GDP), but it no longer has a monopoly of progress. Development is changing the landscape in many areas outside the metropolitan region, including Digos, a second-class city and the capital of the province of Davao del Sur, and Bacolod, now a highly urbanized city and the capital of the province of Negros Occidental.
After my recent travels around the country and reviewing our plans, I believe Vista Land can add 100 more cities and towns in its portfolio of projects, but we’re initially considering 50 locations. Considering the thrust of the Duterte administration to boost development in the provinces, the second batch of 100 locations for our company will not necessarily be our ultimate goal.
The government’s thrust and private-sector activities like Vista Land’s expansion outside Mega Manila fit with suggestions from other institutions.
Analysts at DBS Group Research, for example, said in a market report published by local newspapers last January that the government should prioritize infrastructure projects in the provinces in order to boost growth of the national economy.
Construction activities outside the greater Manila area, according to DBS, will have a more significant impact on the economy. From my perspective, the positive impact would be in the form of new investments being attracted to the provinces, the livelihood opportunities that will be created by infrastructure development and the jobs that new investments, infrastructure and livelihood activities will generate.
Household incomes will increase, so consumers’ purchasing power will grow, making essential goods and services, not the least shelter, affordable to more people.
Remittances from overseas Filipinos and the business process outsourcing (BPO) industry are already spurring development in the provinces, but the aggressive implementation of infrastructure projects will be a big boost to development.
We really need to push for the development of the regions outside Mega Manila. The government, principally the Department of Public Works and Highways (DPWH) should give priority to infrastructure projects in the regions.
Giving priority to infrastructure development in the regions outside Mega Manila will help address not only economic issues but social problems as well. The Asian Development Bank (ADB), in a report titled “Poverty in the Philippines,” identified low economic growth and weak employment generation as among the main causes of poverty in the country.
Metro Manila accounts for roughly 60 percent of the Philippines’ GDP; the remaining 40 percent is divided among the rest of the country, with the poorest regions accounting for a negligible share of the economy.
Metro Manila, however, is not the Philippines. The other regions have the potential and deserve to develop and contribute a larger share to the economy.
So let’s give the countryside the chance to get on the progress wagon.
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This piece first came out in Business Mirror on April 3, 2017 under the column “The Entrepreneur.” For comments/feedback e-mail to: mbv.secretariat@gmail.com or visitwww.mannyvillar.com.ph./PN
