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Vol. XXVII NO.2 April 1996

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The articles in this issue are key introductory studies for the preparation of the National Urban Policy for the Philippines;. The evidence presented shows that from 1990 to 1994, the PPB for NRC accounted for over 30 percent of the total for all regions of the country. For this reason, they are also expected to have an impact on the patterns of urbanization and spatial development of the country.

The urbanization component of the strategy actually includes the development of major urban centers in the country, which will lead to the country's integration into the global economy. In the context of the urban growth phenomenon, implicit policies may overlap with the concept of “urban bias” observed in less developed countries. One of the main objectives of spatial development is to redress the socio-economic imbalance between urban and rural areas in the country.

The Philippines' National Capital Region (NCR) accounts for about one-third of the country's Gross Domestic Product (GOP) generated by more than thirteen percent of the country's population. There is increasing evidence of a land crisis in the major urban centers of the Philippines. It currently contributes P100 billion a year to the economy and accounts for 6 to 7% of the country's GOP.

Trends in urban land prices The rising demand for urban land has led to a very bullish trend in the real estate industry in the major urban centers of the country.

Figure 1. Urbanization and Economic Development Philippines, By Region:
Figure 1. Urbanization and Economic Development Philippines, By Region:

ENDNOTES

11 Since 1990, most of the new and pending subdivision projects handled by the HLURB are located in the fringes of Metro Manila. Given the rate of commercial development in the main urban centers across the country, a doubling of the commercial space supply by the year 2000 is not far off. LN MFGGVA=natural log of manufacturing gross weight at 1985 prices; and the number in parentheses is the standard error of the regression coefficient.

For example, through special assessments, up to 60% of the cost of local infrastructure can be recovered from the beneficiaries of real estate. THE MARKET AND LABOR SUPPLY POTENTIAL OF THE SUB.ZONE OF THE CLARK ECONOMIC ZONE (CSEZ-SZ). A dot (X bar, Y bar) marking the centroidal location of the population under study describes protection of the population.

Average or standard distance is a measure of the spatial deviation of a population from a central location. Morong grew very fast (61 percent) because of the UN refugee center that was established there. It basically remained in the same place from 1980 to 1990, with a slight shift to the west, after the establishment of the refugee center in Morong.

The behavior of the centrographic center of Pampanga differed from the pattern observed for the rest of the region. This suggests that the economic impact of the Clark Air Force Base facility dominated the province. The potential market and productive workforce of the cities where CSEZ-SZ is located is significant.

Highly urbanized areas experience agglomeration effects leading to higher productivity than in the rest of the country. In the Philippines, a one percent increase in the percentage of the population living in urban areas is associated with a 0.63% increase in real LGU expenditure per capita.2 The relationship between LGU expenditure per capita and the degree of urbanization for the different regions in the Philippines are shown in Figure 1. The higher elasticity rate compared to that of total LGU revenue indicates a trend towards a more or less general reliance on locally generated revenue in the different regions of the Philippines.

An increase of 0.69% in real LGU per capita income is achieved for each percentage increase in the degree of urbanization in different regions of the Philippines.3. The level of tax revenue of an urban government is determined by: 1) the size of the economic base of the city;.

Table 4 relates broad categories of city expenditure with revenue sources. The results indicate that before the advent of the 1992 LGC, urban governments have generally avoided politically risky tax increases, and supported their general urban services wit
Table 4 relates broad categories of city expenditure with revenue sources. The results indicate that before the advent of the 1992 LGC, urban governments have generally avoided politically risky tax increases, and supported their general urban services wit

1 This article was based on a technical input document on the Fiscal Management Dimensions of Urbanization in the Philippines prepared by the author for UNDP and NEDA in December 1995 as part of the necessary studies for the preparation of the National Urban Policy. The author would like to acknowledge the financial support offered to the study by UNDP.

Planning and Development Collaborative International (PADCO), lnc., A Self-Sustaining System of Financing For Cities (Vol. I). 7 The local revenue figure is underestimated as the COA revenue report on RPT collection does not include the SEF component earmarked for education and the COA report does not include off-balance sheet funding sources such as the various variances in the BOT scheme. 11 Based on work done by the consultant in Cebu City in 1994, the estimated rate of under-declaration of gross sales for local tax purposes ranged from 80 to 100%.

16 The distance learning program (Open University) of the University of the Philippines can be used to conduct this component. CARINO is a professor and currently Dean of the School of Urban and Regional Planning (SURP) at the University of the Philippines. RAMOS is an associate professor at the University of the Philippines School of Urban and Regional Planning (SURP).

Pigura

Figure 1. Urbanization and Economic Development Philippines, By Region:
Table 4 relates broad categories of city expenditure with revenue sources. The results indicate that before the advent of the 1992 LGC, urban governments have generally avoided politically risky tax increases, and supported their general urban services wit

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