2017年-世界发展银行全球_Improving_City_Competitiveness_for_Economic_Development_and_Job_Creation___Philippines_Urbanization_Review_Policy_Notes_36页_4mb

Summary of Improving City Competitiveness for Economic Development and Job Creation

Core Content

This policy note outlines the challenges and opportunities for improving city competitiveness in the Philippines, with a focus on fostering economic development and job creation. It identifies key factors that influence city competitiveness and emphasizes the need for both national and local-level reforms.

Main Challenges

1. Poor Business Environment

• Regulatory complexity: Business registration and licensing processes are cumbersome, with many steps and forms required.
• High costs and time: The average firm spends 29 days and PHP 20,000 (16.1% of per capita income) to start a business.
• Corruption: Firms often pay bribes or give gifts to obtain permits and services.
• Annual business permit renewal: A complex and costly process, with some cities requiring 31 steps.
• Taxation issues: Tax compliance is expensive and burdensome, especially for MSMEs.
• Impact on SME growth: The regulatory environment discourages SME growth, leading to low productivity and limited job creation.

2. Weak Infrastructure, Land Management and Access to Markets

• High trade costs: The Philippines ranks poorly in international trade connectivity and has high bilateral trade costs.
• Poor logistics performance: Weak shipping connectivity and high internal shipping costs hinder market integration.
• Expensive and unreliable utilities: Internet, water, and electricity are costly and unreliable in many cities.
• Traffic congestion: Public transport systems are underdeveloped, leading to long commutes and inefficiencies.
• Land management issues: Lack of coordination among LGUs and poor land information systems lead to conflicts and deter investment.

3. Low Demand for Innovation and Skill Mismatch

• Limited R&D investment: Innovation and technology absorption are insufficient to drive productivity.
• Skill mismatch: There is a lack of alignment between skills available and those demanded by the economy.
• Need for skills development: Greater investment in education and training is required to meet industry needs.

Key Opportunities and Good Practices

1. Business Registration Reforms

• Local initiatives: Cities like Batangas, Cagayan de Oro, Ilollo, and Quezon City have streamlined the process.
• One-stop shops: These reduce the number of steps and time required for business registration.
• National reforms: The "Nationwide Streamlining of Business Permits and Licensing Systems Reform (BPLS)" and "Reform Simplification for Local Governments (RS4LG)" have shown some success, but many LGUs have not met the targets.

2. Improving Infrastructure and Connectivity

• ICT improvements: Better internet access is critical for supporting the BPO sector and digital transformation.
• Real-time data tools: Cities like Manila and Cebu are using ICT to improve urban transport planning and reduce congestion.
• Investment in utilities: Reliable and affordable access to water and electricity is essential for business operations.

3. Enhancing Land Management and Coordination

• Land information systems: Developing a systematic and accurate land information system can reduce fraud and disputes.
• Coordination among LGUs: Better coordination is needed to create business clusters and ensure efficient land use.

Policy Recommendations

• Simplify national business regulations: Reduce the number of steps, forms, and signatories required for business registration and renewal.
• Improve tax compliance: Make tax regulations more business-friendly, especially for MSMEs.
• Invest in digital infrastructure: Lower internet costs and improve connectivity to support innovation and digital industries.
• Enhance transport systems: Develop reliable and efficient public transport to reduce congestion and improve productivity.
• Strengthen land governance: Improve land information systems and promote coordination among local governments to support investment and business clusters.
• Promote skills development: Align education and training programs with industry needs to reduce skill mismatch and encourage innovation.

Conclusion

City competitiveness is a vital driver of economic development and job creation in the Philippines. While there have been some successes in streamlining business processes and improving infrastructure, significant challenges remain. A coordinated effort between national and local governments, along with private sector engagement, is essential to create a more enabling environment for businesses and sustainable growth.