That said, there are reasons for optimism. The resulting impacts of these issues, coupled with rapid urbanization, have greatly hampered city competitiveness, job creation, poverty reduction and livability. These include fragmented institutional arrangements for urban development and metropolitan governance, and major shortcomings in land administration and management. Why are things so complex? There are a number of underlying structural issues affecting urbanization in the Philippines, such as the country’s archipelagic geography which creates divisions in connectivity both within the country and to external markets a stagnating manufacturing sector that has not resulted in high quality jobs and, in turn, has negatively affected urban-led growth and the country’s high exposure to natural hazards, particularly flooding and earthquake risks, all of which exacerbate urban management challenges.īeyond these key structural issues are two binding constraints which, unlike the structural issues, can be addressed through a bold reform agenda. While other cities in the Philippines don’t face the scale of these challenges, they tackle similar issues. With 17 cities and municipalities in the metropolitan area, trying to tackle these challenges becomes stuck in deep complexities of urban governance and management. Because of lack of affordable housing, an estimated 11 percent of the city’s population live in slums. When it rains, streets and homes are quickly flooded because many drains are clogged or non-existent. It’s a large sprawling metropolitan area of over 12 million, with congestion that is estimated to cost US$70 million (₱3.5 billion) a day. However, it has also brought challenges, which you’ll see when you move around the streets of Metro Manila. Rapid urbanization in the Philippines has brought new jobs, educational opportunities, and better living conditions for some. Cities become engines of growth if well planned and well managed. This can bring many opportunities for growth and poverty reduction. The Philippines is one of the fastest urbanizing countries in East Asia and the Pacific.
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