Connecting cities across PH to boost economic growth, create jobs

The World Bank cited the need to connect cities across the Philippines to boost economic growth and create more jobs.

In its “From Cities to Corridors: Unlocking the Philippines’ Urban Growth Potential” report released Tuesday, the World Bank said the Philippines has real and widely distributed urban potential.

The report provides a detailed analysis of all 1,642 Philippine cities and municipalities to map where growth potential is strongest, where investment gaps are deepest, and what reforms are needed to integrate local economies into productive regional corridors.

According to the report, the National Capital Region, or Metro Manila, alone generated over 31 percent of the country’s gross domestic product (GDP) as of 2023.

Meanwhile, 17 highly urbanized cities (HUCs) outside NCR account for about 11 percent of GDP.

The World Bank said urban areas and growth corridors offer the Philippines a concrete pathway to larger markets, higher productivity and better jobs.

Luzon alone has 79 percent high potential urban LGUs, reflecting stronger urbanization, infrastructure and agglomeration advantages.

In the Visayas, high-potential is concentrated in port-linked coastal local government units such as Tagbilaran in Bohol, Cebu, Bacolod, Dumaguete, Tacloban, Iloilo, Kalibo, Roxas and San Jose in Panay Island.

For Mindanao, high-potential LGUs are concentrated along the northern coastal region, notably around the Cagayan de Oro-Iligan corridor, with pockets emerging in the south around Davao, Tagum and the General Santos-Polomolok corridor.

The report, however, noted that geographic barriers, coordination challenges and gaps in delivery capacity continue to limit how fully cities connect to their surrounding areas and to each other.

“The Philippines has the cities, the people, and increasingly the resources to power the next phase of its growth," said Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia and Brunei.

"Strengthening the economic integration between cities and their surrounding areas — especially in lagging regions — is how the Philippines ensures that growth is not only faster, but more inclusive. Connected corridors are the mechanism through which urban prosperity reaches the communities and families that need it most,” he added.

To help turn cities and municipalities into productive regional corridors with benefits that reach the most vulnerable communities, the report cited the need to align national planning and fiscal frameworks with the functional economic realities of Philippine cities, enable local governments to prepare and deliver investments effectively, and strengthen infrastructure and institutional incentives.