Friday, November 13, 2015

Biz Op2 Lesson 2: Urban Growth in the Philippines

I.Time Frame:
1. Date: November 6, 9, 11, 2015
2. Number of Hours: 5 Hours
3. Time: 330-430

II. Class Schedule:
1. Course Code: ENT101
2. Course Title: Business Opportunities 2
3. Year: BS Entrepreneurship 2
4. School: DWCL

III. Objectives
1

IV. Subject Matter
1.Regional Growth Center
1.    Urban Growth in the Philippines
a.    Regional Growth Centers
1.    Features
2.    Contributions
3.    Issues and Problems
b.    Conversion of Subic Bay
1.    Background of U.S. Navy’s Withdrawal
2.    Assets
3.    Strengths and Attractions
4.    Conversion Problems
5.    Invest Potential and Opportunities
c.    Investment Incentives and Opportunities in Cebu

2 References:
Business Opportunities in the Philippines
URBAN GROWTH IN THE PHILIPPINES: POLICY ISSUES AND PROBLEMS Benjamin V. Carino
School of Urban and Regional Planning, University of the Philippines
http://www.unicef.org/sowc2012/pdfs/SOWC-2012-DEFINITIONS.pdf

V. Procedure
A. Pre-Discussion
1. Daily Routine
a. Checking of Attendance

2.Vocabulary Building
Urban (area) The definition of ‘urban’ varies from country to country, and, with periodic reclassification, can also vary within one country over time, making direct comparisons difficult. An urban area can be defined by one or more of the following: administrative criteria or political boundaries (e.g., area within the jurisdiction of a municipality or town committee), a threshold population size (where the minimum for an urban settlement is typically in the region of 2,000 people, although this varies globally between 200 and 50,000), population density, economic function (e.g., where a significant majority of the population is not primarily engaged in agriculture, or where there is surplus employment) or the presence of urban characteristics (e.g., paved streets, electric lighting, sewerage). In 2010, 3.5 billion people lived in areas classified as urban. 

Urban growth The (relative or absolute) increase in the number of people who live in towns and cities. The pace of urban population growth depends on the natural increase of the urban population and the population gained by urban areas through both net rural-urban migration and the reclassification of rural settlements into cities and towns. 

Urbanization The proportion of a country that is urban. Rate of urbanization The increase in the proportion of urban population over time, calculated as the rate of growth of the urban population minus that of the total population. Positive rates of urbanization result when the urban population grows at a faster rate than the total population. City proper The population living within the administrative boundaries of a city, e.g., Washington, D.C. Because city boundaries do not regularly adapt to accommodate population increases, the concepts of urban agglomeration and metropolitan area are often used to improve the comparability of measurements of city populations across countries and over time. Urban agglomeration The population of a built-up or densely populated area containing the city proper, suburbs and continuously settled commuter areas or adjoining territory inhabited at urban levels of residential density. Large urban agglomerations often include several administratively distinct but functionally linked cities. For example, the urban agglomeration of Tokyo includes the cities of Chiba, Kawasaki, Yokohama and others. Metropolitan area/region A formal local government area comprising the urban area as a whole and its primary commuter areas, typically formed around a city with a large concentration of people (i.e., a population of at least 100,000). In addition to the city proper, a metropolitan area includes both the surrounding territory with urban levels of residential density and some additional lower-density areas that are adjacent to and linked to the city (e.g., through frequent transport, road linkages or commuting facilities). Examples of metropolitan areas include Greater London and Metro Manila. Urban sprawl Also ‘horizontal spreading’ or ‘dispersed urbanization’. The uncontrolled and disproportionate expansion of an urban area into the surrounding countryside, forming low-density, poorly planned patterns of development. Common in both high-income and low-income countries, urban sprawl is characterized by a scattered population living in separate residential areas, with long blocks and poor access, often overdependent on motorized transport and missing welldefined hubs of commercial activity. Peri-urban area An area between consolidated urban and rural regions. Megacity An urban agglomeration with a population of 10 million or more. In 2009, 21 urban agglomerations qualified as megacities, accounting for 9.4 per cent of the world’s urban population. In 1975, New York, Tokyo and Mexico City were the only megacities. Today, 11 megacities are found in Asia, 4 in Latin America and 2 each in Africa, Europe and North America. Eleven of these megacities are capitals of their countries. Children in an increasingly urban world 11 Metacity A major conurbation – a megacity of more than 20 million people. As cities grow and merge, new urban configurations are formed. These include megaregions, urban corridors and city-regions. Megaregion A rapidly growing urban cluster surrounded by lowdensity hinterland, formed as a result of expansion, growth and geographical convergence of more than one metropolitan area and other agglomerations. Common in North America and Europe, megaregions are now expanding in other parts of the world and are characterized by rapidly growing cities, great concentrations of people (including skilled workers), large markets and significant economic innovation and potential. Examples include the Hong Kong-Shenzhen-Guangzhou megaregion (120 million people) in China and the TokyoNagoya-Osaka-Kyoto-Kobe megaregion (predicted to reach 60 million by 2015) in Japan. Urban corridor A linear ‘ribbon’ system of urban organization: cities of various sizes linked through transportation and economic axes, often running between major cities. Urban corridors spark business and change the nature and function of individual towns and cities, promoting regional economic growth but also often reinforcing urban primacy and unbalanced regional development. Examples include the industrial corridor developing between Mumbai and Delhi in India; the manufacturing and service industry corridor running from Kuala Lumpur, Malaysia, to the port city of Klang; and the regional economic axis forming the greater Ibadan-Lagos-Accra urban corridor in West Africa. City-region An urban development on a massive scale: a major city that expands beyond administrative boundaries to engulf small cities, towns and semi-urban and rural hinterlands, sometimes expanding sufficiently to merge with other cities, forming large conurbations that eventually become city-regions. For example, the Cape Town city-region in South Africa extends up to 100 kilometres, including the distances that commuters travel every day. The extended Bangkok region in Thailand is expected to expand another 200 kilometres from its centre by 2020, growing far beyond its current population of over 17 million.


a. Regional Growth Center



1970s - the government took a major initiative explicitly designed to achieve a more “ balanced ” spatial development. It was to be achieved through a policy of dispersal of economic activities with the establishment of Regional Growth Centers. The strategy for growth dispersal was meant to complement rather than supplement urban governance and management strategies. 

These growth centers and economic zones are usually located in small to medium-sized urban areas of the country. The selected growth centers were envisioned as “ counter-magnets ” to the large urban
concentrations in the country. The “ growth centers ” strategy had obvious roots in the “growth pole ” theory. As originally formulated by Perroux, growth poles are a cluster of firms or industries which are “ propulsive ” in nature, i.e., they have the capacity for generating and transmitting growth to other parts of the country.

A major objective of the plan was to promote small and medium-scale industries in smaller urban areas so as to generate non-farm employment opportunities. This official pronouncement led to the adoption of the industrial dispersal policy, which was to be carried out through the establishment of industrial estates (IEs) and export processing zones (EPZs) in selected growth centers of the country.

The regional growth center strategy was further pursued by the Aquino administration with the designation of Regional Industrial Centers (RICs), later renamed the Regional Agro-Industrial Centers (RAICs) in all regions of the country. In addition, a number of special economic zones were likewise identified.

Features:
a. Industrial Estate is the generic term used to refer to a tract of land developed for the use of a group of industries according to a comprehensive plan. It is provided with roads and infrastructure support and utilities, with or without pre-built factories and common service facilities, and falls under a unified and continuous management. An export processing zone,namely a customs-controlled, duty-free enclave, is considered to be a special type of industrial estate. The location of industrial estates in the Philippines is shown in Map 1.

b. The Regional Agro-Industrial Center (RAIC) which officially includes the Export Processing Zones (EPZs) in the country. Initially referred to as Regional Industrial Centers, the RAICs have been envisioned
as the nuclei of industrialization and development in each of the country’s regions, destined to become the convergence point for public and private investments. At the same time, they have also been designed to trigger rural industrialization and economic expansion. As a location specific strategy, it focuses on one location in each of the fourteen (14) regions of the country and provides for the infrastructure needed by industries to operate on a competitive basis (see Map 2).

c. The Growth Corridor or Quadrangle which usually covers neighboring areas (municipalities, provinces or regions) linked together through the collaboration and cooperation of local governments. The integration of these areas allows them to share their comparative advantages/strengths with one another, thereby ensuring the optimum utilization of resources and the development of the corridor and its radiation areas, as well as the integration of the targeted areas into a single economic unit.

d. The Economic Zones (ECOZONES) are a somewhat smaller, but more formal variant of the growth network concept.As envisioned, ECOZONES are industrial production areas strategically located in the countryside, and are aimed at hastening the development of urban centers and rural areas around them. Foreign investments, as well as private sector and local government initiatives are to be encouraged in the establishment of the ECOZONES to enhance their role as prime movers of the local economy.

3. Motivation Question


4. Motive Question



D. During Discussion
1.Engagement Activity
a. What are the contributions of Regional Growth Centers?
Exports

b. Issues and Problems of Regional Growth Centers

a. A Limited Contribution to Industrial Dispersal
b. Slow Progress in Implementation
c. A Small Contribution to Employment
d. Land Conversion and the Displacement of Families
e. Relatively Weak Backward and Forward Linkages


c.    Conversion of Subic Bay
-1st Special Economic Zone

1.    Background of U.S. Navy’s Withdrawal
*Nationalisation Movement
*End of Cold War Era
*United States Budget Deficit
*Incorrect Judgement
*Mount Pinatubo Eruptions

2.    Assets
*Port
*Air
*Utilities and Serices
*Industrial and Commercial Estates

3.    Strengths and Attractions

4.    Conversion Problems


5.    Invest Potential and Opportunities



Competitive Factors

1. Strategic Location
-center in the Philipippines

Mactan International Airport

-2nd International

2.Large Domestic Part

3. Competitivewages and personnel
4. Financial institutions

Investment potentials in cebu

1. Tourism


VI. Assessment
1. Short Quiz
Will a shift from a highly centralized governance to a Federal Parliamentary system will spur the development of regional economic zones such as the Clark and Subic Economic Zones.
2. Explain the saying Take care of peace and order and let business take care of business’,” 
3. 5 Reason why you should invest in cebu and subic
what are the challenges that hinders urban growth in htephilippines
VII. Assignment

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