Instead of wasting our time debating on the pros and cons of
federalization, which obviously is a non-starter because of its numerous
conceptual and practical flaws, it would be more productive for us to
identify certain regions of the Philippines which can already be
encouraged to act like federal states under the Local Government Code.
There are many provisions of this Code that already permit enlightened,
honest, and competent Local Government heads to constitute their
respective geographical territories as de facto federal states, even
without amending the Constitution. They can levy their own taxes, issue
municipal bonds, partner with the private sector in building all types
of infrastructures such as public school buildings, railroads, airports,
toll ways, sea ports, etc., without having to go to NEDA or other
national government agencies for authorization. As another enabler for
greater financial autonomy, the National Government can execute the
recent mandate of the Supreme Court to automatically release the
Internal Revenue Allotment (IRA) due the LGU units. What President
Duterte legitimately desires — to “decapitate” Imperial Manila — can be
more quickly achieved through this more aggressive implementation of the
Local Government Code.
If there is a region that is ready to constitute itself as a de facto
federal state, it is Central Luzon with the Pampanga Triangle (San
Fernando, Angeles City, and Clark) as the strategic center. It is a
happy coincidence that former President Gloria Macapagal Arroyo is now
the new speaker of the House and has at least the next 11 months to
champion the long-term development of Central Luzon as a de facto
federal state. She can use her moral authority to motivate and lead
the LGU heads in Central Luzon to implement a long-term (at least the
next ten years) plan to endow the region with the best infrastructures,
high-quality educational institutions, and good governance practices
that are indispensable for sustainable and inclusive development. I see
her role there (together with Governor Lilia Pineda of Pampanga)
similar to what Senator Frank Drilon played in making Iloilo City one of
the most promising business centers in the Visayas today. In fact, some
are hoping that before Speaker GMA retires from politics, she could
have a stint as governor of Pampanga.
In 2017, while the whole national economy was growing at 6.7%,
Central Luzon’s GRDP grew at 9.3%, next only to the Cordillera
Administrative Region (CAR) that grew at 12.1% and Davao at 10.9%. The
region is highly industrialized with industry contributing the largest
share to the regional economy at 48.3% in 2017. Within the industrial
sector, construction led with a whopping 22.3% growth in 2017, followed
by manufacturing at 13.2%, and electricity, gas, and water at 8.5%.
With these strong growth rates of the component sectors of industry, it
was industry that contributed most to the region’s overall growth with
6.4 percentage points, followed by services with 2.3 percentage points
and agriculture, hunting, forestry, and fishing at 0.6 percentage
point. Central Luzon has the third largest population in the
Philippines at 11.2 million, next only to Calabarzon (14.4 million) and
the National Capital Region (12.9 million). With a population density
of only 510 per square kilometer (compared to NCR of 21,000 per square
kilometer), Central Luzon has much more room for further expansion and,
with the appropriate infrastructures, can still count on producing most
of its food requirements, especially the higher-value crops like fruits,
vegetables, and livestock. Central Luzon could be an agro-industrial
power in the country.
The Build, Build, Build program of the Duterte administration is
highly visible in Central Luzon. For example, Angeles City has rolled
out 14 road and bridge projects to alleviate traffic problems prior to
the completion of the P211-billion Malolos-Clark Railway (to be built
with Japanese funding) and the P13-billion expanded Clark International
Airport at the Clark Freeport Zone scheduled for completion in 2020.
These 14 projects include the construction of the North Luzon Expressway
(NLEx)-Subic Clark Tarlac Expressway (SCTEx) Connecting Road or Abacan
Expressway; the East Circumferential Road; the Furniture Village Bypass
Road; Angeles Livelihood Road in the Export Processing Zone Authority;
the Angeles SCTEx Toll Exit Interchange in Barangay Margot; a flyover at
the Angeles-Magalang Road; and the Angeles-Porac (Pampanga)-Dinalupihan
(Bataan) Road. With all these infrastructure projects, no wonder the
country’s leading real estate developers like Ayala Land, Megaworld,
Robinson, SMDC, Filinvest, Century Properties, and many others are
investing heavily in townships, resorts, and industrial estates in the
region.
The National Government is doing much to help Central Luzon become
the next Metro Manila area. DPWH has started the construction of the
access roads amounting to P476 billion leading to the new Clark City
(NCC). Also programmed for Clark is the widening of the Clark-Angeles
perimeter road, the Manila North Road, the Pulung Maragul Bridge, Pulung
Cacutud Bridge, Cutud Bridge, and Telebastagan-Friendship Road. A dike
is programmed to rise at the Malabanias section of the Abacan River.
The projects also include the improvement of the city’s watershed in
Barangay Sapang Bato. The new Clark terminal, which is expected to
serve eight million passengers annually, is expected to significantly
benefit Angeles City which is fast becoming a tourism, entertainment,
and culinary destination in Central Luzon, attracting—in addition to
foreign tourists—some of the more than 60 million domestic tourists who
are discovering the many attractive sites in their own country. Mayor
Edgardo Pamintuan of Angeles City declared that the 1,167 flights
registered in and out of Clark from January to May in 2017 served
146,000 passengers and contributed 12,908 registered business
establishments—of which 1,589 were new business ventures.
The Duterte administration has to be complimented for finally
declaring the inevitable — that Clark will be the major international
airport of the country to replace NAIA which is handicapped by very
limited runway capacity while Clark has almost unlimited capacity
because of the huge land area for further expansion. The Clark Freeport
Zone is being recognized as the next aerotropolis in Asia, considering
its potential to develop into an aircraft repair hub and to host other
aviation-related businesses. The first Aeromart Summit held at the CFZ
last April 6, 2017, was an indication that the Philippines is already
being recognized as a major player in the aviation industry. The
Aeromart Summit aimed at promoting the country’s capabilities in
aerospace parts manufacture, aircraft MRO, and aviation training
programs. It is also expected to maximize the investment and
outsourcing opportunities in the Philippines, especially in Clark for
aerospace and aviation by serving as the platform to expand the reach of
the local aerospace industry players through business-to-business
meetings. (To be continued).
source: Manila Bulletin Column of BERNARDO M. VILLEGAS
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