Urbanization presents a great opportunity for economic growth and poverty reduction in the country.
In the , the аIJʿª½± and the Government of the Philippines analyze three challenges that need to be addressed if the country is to reap the benefits of urbanization:
- Density. The growing population is not matched by key infrastructure investments.
- Distance. Connectivity issues increase transportation cost and impede labor mobility.
- Division. Limited access to basic services and economic opportunities especially among informal settlers.
The review proposes a two-pronged approach to building competitive, sustainable and inclusive cities:
- In Metro Manila: address critical issues such as congestion, flooding, and slums.
- In secondary cities: balance spatial development, increase productivity, and create jobs.
The review presents key recommendations in four priority areas:
1. City competitiveness
- simplify tax regime and business regulations
- address infrastructure gridlock
- improve access to global markets
- strengthen economic local governance
- strengthen innovation and address skills mismatch
2. Inclusive urbanization
- Help the urban poor access formal jobs
- expand formal sector employment through reinvigoration of manufacturing sector
- close the gap in affordable housing and basic service delivery
- empower communities and involve them in development process
- strengthen institutions that underpin affordable housing especially the local governments
3. Urban governance and institutions
- adopt a national urban policy
- establish a lead agency for urban development
- strengthen institutions and metropolitan governance
- strengthen accountability through fiscal decentralization
4. Land administration and management
- Address growing informal settlements
- streamline institutional arrangements for land services
- develop integrated land information system
- develop a metro-wide physical planning framework
- improve property taxation and valuation