“Nearly every country in the world is now becoming industrialized as rapidly as it can.” - John Boyd Orr
It appears this may not hold true for the Philippines in the near future as hinted on a report from Andrew James Masigan on mb.com.ph. But, the same cannot be said for Cebu since its industrial sector has experienced a boost in the last five years, mainly in creative industries, electronics, ship-building, and furniture. Aside from being the most diversified region in the Philippines, the industrial sector of Cebu has increased faster compared to that of other regions in the country. In fact, Cebu may be on its way into entering an exclusive list of the newly industrialized economies in the region.
Let’s backtrack into the late ‘80s and early ‘90s. During this time, the country was in the middle of rebuilding its democratic institutions after two decades under the Marcos dictatorship. While the Philippines dealt with the removal of monopolies within its economy, newly-industrialized countries continued to develop. Due to this, the country was described as the “sick man of Asia.”
It appears this may not hold true for the Philippines in the near future as hinted on a report from Andrew James Masigan on mb.com.ph. But, the same cannot be said for Cebu since its industrial sector has experienced a boost in the last five years, mainly in creative industries, electronics, ship-building, and furniture. Aside from being the most diversified region in the Philippines, the industrial sector of Cebu has increased faster compared to that of other regions in the country. In fact, Cebu may be on its way into entering an exclusive list of the newly industrialized economies in the region.
Let’s backtrack into the late ‘80s and early ‘90s. During this time, the country was in the middle of rebuilding its democratic institutions after two decades under the Marcos dictatorship. While the Philippines dealt with the removal of monopolies within its economy, newly-industrialized countries continued to develop. Due to this, the country was described as the “sick man of Asia.”
Cebu On Its Way To Become A Newly Industrialized Economy - image source: faq.ph
Fast forward to the present time, changes have been noted as investor confidence in the country increased with the commitment of the government in dealing with corruption and promoting good governance. The Philippines is currently among the most financially stable economies in the world thanks to good fiscal management by the Department of Finance and the Bangko Sentral ng Pilipinas. In fact, growth in the Philippines reached 6.3 percent in the last five years, which is the highest in the ASEAN region.
Despite these accomplishments, the country has yet to reach the status of a newly industrialized economy. Only 33 percent of the country’s economy can be attributed to industry while 57 percent can be credited to services. Agriculture takes up the remaining 10 percent. Due to this, the Philippines cannot be considered a newly industrialized economy since it is mainly a service-driven economy.
Despite these accomplishments, the country has yet to reach the status of a newly industrialized economy. Only 33 percent of the country’s economy can be attributed to industry while 57 percent can be credited to services. Agriculture takes up the remaining 10 percent. Due to this, the Philippines cannot be considered a newly industrialized economy since it is mainly a service-driven economy.
Cebu On Its Way To Become A Newly Industrialized Economy - image source: en.wikipedia.org
But, when it comes to Cebu, the figures are different. The industrial sector of Metro Cebu accounts for nearly 40 percent of its economy, which is around 6 percent higher than the national average. The livelihood of around 29 percent of the labor force is based on the industrial section, which is nearly double the national average. The per capita income in Cebu is among the highest in the Philippines since its economy leans towards industry.
The economy of Cebu has been expanding by 9 percent, which is higher than the growth rate of the entire country. While Cebu is the fourth biggest regional economy in the country, it has the smallest population among the top four regions.
The economy of Cebu has been expanding by 9 percent, which is higher than the growth rate of the entire country. While Cebu is the fourth biggest regional economy in the country, it has the smallest population among the top four regions.
Cebu On Its Way To Become A Newly Industrialized Economy - image source: everythingcebu.ph
The growth of the industrial sector in Cebu is nearly double the growth rate of its service sector. The past five years saw industries growing by over 13 percent. In comparison, the services sector grew by only 7 percent. Exports in Cebu from 2013 to 2014 increased by 38 percent. Total exports reached $ 5.4 billion, which is $1.9 billion higher than its imports. With these figures, it may be possible for Cebu to become a newly industrialized economy by 2025 if its growth continues at its current pace.
Infrastructure is critical to ensure continuous economic growth in Cebu. Among the major projects set to be completed in the by 2017 are the Bus Rapid Transit system and a world-class airport. While these projects allow Cebu attain the status of a newly industrialized economy, there are other areas for improvement. It will be necessary for the government to improve the road and bridge networks along with the seaports and export processing zones in the region. Traffic in Cebu has gone from bad to worse in the past few years, making it critical for the government to find ways in managing it to prevent any adverse effects on its growth.
Infrastructure is critical to ensure continuous economic growth in Cebu. Among the major projects set to be completed in the by 2017 are the Bus Rapid Transit system and a world-class airport. While these projects allow Cebu attain the status of a newly industrialized economy, there are other areas for improvement. It will be necessary for the government to improve the road and bridge networks along with the seaports and export processing zones in the region. Traffic in Cebu has gone from bad to worse in the past few years, making it critical for the government to find ways in managing it to prevent any adverse effects on its growth.
Cebu On Its Way To Become A Newly Industrialized Economy - image source: sunstar.com.ph
The Mega Cebu 2050 is a development road map showing what Cebu aims to achieve by 2050. The master plan epitomizes the aims and aspirations of Cebu for 2050. Since the whole country has a stake in the success of Cebu, it is necessary for the government to ensure suitable infrastructure projects are set aside for the region. Among the projects urgently needed by Metro Cebu are an effective flood control system, a Light Railway System, a bulk water supply system, and a bigger seaport.
While the government may have had a hand in the growth Cebu is currently enjoying, it was mainly achieved through hard work and proper planning. Since the country has the opportunity of becoming a newly industrialized economy through the development in Cebu, it will be necessary for the government to provide Cebu will all the infrastructure projects it requires to ensure its continuous growth.
While the government may have had a hand in the growth Cebu is currently enjoying, it was mainly achieved through hard work and proper planning. Since the country has the opportunity of becoming a newly industrialized economy through the development in Cebu, it will be necessary for the government to provide Cebu will all the infrastructure projects it requires to ensure its continuous growth.
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