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Friday, July 28, 2006
Growth affects Cebu’s competitiveness rank
By Jessica B. Natad, Liberty A. Pinili Of Sun.Star Cebu
Cebu's fast growth has resulted in an irony of sorts—it slipped below a private research team’s ranking of the top five most competitive cities in the country last year, losing its former spot to Davao.
Economist Cayetano Paderanga Jr., who heads the think tank team, Institute for Development and Econometric Analysis Inc. (IDEA), said the ranking of cities in the country according to competitiveness was based on a survey of businessmen.
Anxieties
The result of the survey, he said, indicated that businessmen continue to have “anxieties” about “congestion in roads, water and others.”
Paderanga said in a mid-year economic briefing sponsored by Wealthbank and CIBI Information Inc. at the Cebu City Waterfront Hotel and Casino yesterday that Cebu can regain its position in the top five, if concerned local governments invest in needed infrastructure to address issues raised by the business sector.
“(Despite not landing in the top five) Cebu is still a fast growing city. It just grew very fast such that the development outran infrastructure. Davao infrastructure is not yet congested and its land area allows (development)…to expand,” he said.
“We have to be comforted by the fact that (these) problems came out because of…very fast growth,” he added.
Paderanga presented at the briefing the results of IDEA’s 2005 survey of what businessmen in the country perceived were the most competitive cities for the period.
Replaced
Davao replaced Cebu in the top five most competitive metro cities in the country. The other four are Las Piñas, Makati, Marikina and Muntinlupa.
Cebu also ranked last of 12 metro cities in terms of infrastructure but landed first of the same 12 cities surveyed in terms of linkages and accessibility.
Paderanga said the investment made by the Cebu Provincial Government in the construction of the Cebu International Convention Center for the Asean (Association of Southeast Asian Nations) is already a “good start.”
“But investment on support projects or linkages, such as road infrastructure and hotels, should follow immediately,” he said.
Paderanga specifically mentioned the need to improve Cebu’s water supply condition, as water is one of the essential elements that investors consider in putting up a business.
“Clearly, there’s a question on water (in Cebu),” he said.
While local governments may find needed infrastructure costly, Paderanga said it would be good for them to have plans.
Plans
“(Local governments) cannot afford it all at one time…but they should already have broad plans. Government has to start,” he said in a press conference following the economic briefing.
He said local governments can present their plans to the private sector, which will decide where or which infrastructure project would be a good place to invest in.
Also during the briefing, Paderanga presented IDEA’s forecast on the country’s economic growth for this year.
The group expects a lower growth rate in the gross national product (GNP), between 4.5 percent to 5.1 percent, for this year.
Paderanga said this is due to the instability of the oil prices in the world market, which is caused by conflict in the Middle East, especially the war between Israel and Lebanon.
For Bisaya stories from Cebu. Click here. (July 28, 2006 issue)
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