On May 29, Mara Warwick, Country Director of the World Bank office in the Philippines, announced the Philippines Urbanization Review. This framework was created to help the nation’s leaders make decisions about urbanization using diagnostic tools provided by the World Bank to help analyze investment priorities.

“As one of the fastest urbanizing countries in the region, urbanization presents a great opportunity for economic growth, job creation, and poverty reduction for the Philippines,” Warwick said during her opening remarks.

Last year, the Philippines was one of the fastest growing countries in the world, and currently, its cities generate more than 70 percent of the country’s gross domestic product.

Warwick noted that at the moment, about 45 percent of Filipinos live in cities. She added that by 2050, 65 percent — or 102 million people — will live in Filipino cities if rates of urbanization continue as they are today.

However, the desired speed and scale of urbanization brings obstacles. Cities are struggling to keep up with demands for housing, basic services, transportation, and jobs, as well as increasing income inequality between the wealthiest and poorest segments of society.

“Decisions made now will affect how cities grow and how people benefit from urbanization through economic growth, job creation, and poverty reduction,” says the Philippines Urbanization Review. According to the World Bank’s report, cities need “more affordable mass transport, such as metro rail transit and bus rapid transit systems, to raise productivity and improve the welfare of commuters.” Another recommendation is that government create more simple licensing requirements to attract more businesses and housing.

The World Bank published the Philippines Urbanization Review in the hopes that the country will take their recommended steps to cut down traffic and simplify licensing so that cities can thrive and the lives of millions of Filipino people can be improved. The decisions must be made now to ensure a prosperous future.

– Kelsey Jackson

Photo: Flickr