A long-term rural industrialization program could just be the key to boost the government’s “Balik Probinsya” program as it can address the increasing number of unemployed and underemployed in rural areas.
“Thus, if the countryside is invigorated with rural industrialization schemes, it can provide substantial employment and income to surplus labor and hopefully attract the redundant labor in the urban sector,” De La Salle University economics professor Tereso Tullao Jr. told the BusinessMirror in a recent e-mail interview.
Right now, Tullao pointed out that the industrial economic zones operating in several provinces and regions can enhance the Balik Probinsya program as these zones can serve as pull factors that can attract program participants.
Property developers Ayala Land and Aboitizland have established economic zones in different parts of the country as part of their efforts in jumpstarting rural industrialization.
Ayala Land, in partnership with Mitsubishi Corp., established the Laguna Technopark Inc. (LTI) in Biñan. The locators are engaged in the manufacturing of electronic components, automotive parts, consumer products, food processing, pharmaceuticals, and others. Last September, Ayala Land launched Cavite Technopark in Naic. It is expected to generate approximately 20,000 jobs.
Meanwhile, AboitizLand has expressed its support through the development of its industrial zones in Cebu and Batangas. The 540-hectare West Cebu Industrial Park (WCIP) in Balamban, a joint venture between Aboitiz and Japan’s Tsuneishi Holdings since 1992, has transformed the sleepy coastal town into the shipbuilding capital of the Philippines. The complex hosts 11 industrial and eight commercial locators, employing 14,000 employees.
Moreover, AboitizLand has transformed the 700-hectare LIMA in Malvar, Batangas, into a mixed-use estate, hosting 111 locators generating more than 50,000 jobs in export-driven production industries.
Tullao explained rural industrialization is a process that must involve several stakeholders. He stressed the private sector will have an important role since it provides the needed capital, technology and physical plant for enterprises to commence.
“However, before the private sector can operate in these areas there should be adequate physical and human infrastructure in the area. This can be done by the national government, LGUs [local government units] and training institutions. The availability of hard and soft infrastructures can serve as magnets for the private sector to establish industrial zones in the rural areas,” Tullao stressed.
Tullao said the LGUs can provide business climate conducive to private initiative, including minimal local taxation, efficient renewal of licenses, absence of red tape, maintenance of peace and order, and provision of efficient public services, including garbage collection.
Meanwhile, he said higher educational institutions, particularly state colleges and universities, can provide companies with adequate supply of capable manpower drawn from among their graduates. In addition, qualified faculty members can serve as consultants to private enterprises in addressing business problems and issues.
2 comments