Aidalyn Gingco

ABM 121
Integrative Task
Socio-Economic Impact
of The Urbanization of Lipa City
on Businesses and The Government

Lipa City is an agricultural city, with more than 70% of its land dedicated to agriculture. Lipenos,
on the other hand, are less involved in agricultural activities these days, owing to their growing
interest in commerce and trade. It can be seen in the shrinking agricultural land. Inadequate
agricultural production, particularly rice and vegetable production, resulted from dwindling
interest in farm work. Nonetheless, the slowdown can be attributed to a variety of other factors,
including the cost of production inputs and the frequency of natural disasters, to name a few.
Agri-industrial activities, on the other hand, such as poultry and livestock, have aided the
economy. The arrival of commercial establishments in the 1980s signaled the city's shift toward
urbanization. Since then, the commercial sector has grown in importance in the city's economic
development. The commercial area is now much larger, and more and more business
establishments have sprouted in the succeeding years. Economic activities include the trading
of agricultural products, agri-based finished products, hardware, office and school supplies, but
the majority of these products are imported from outside the country.

As Lipa City proceeds toward urbanization, it must be prepared to deal with the concerns and
challenges that will inevitably arise, or the city will be unable to reap the full benefits of
economic growth and development. Managing urban expansion is a big issue that the municipal
government will have to address straight on. The current administration's ability and willpower to
generate self-generated revenue will determine its capacity to ensure that Lipeos receive quality
basic social services such as education, health, and social welfare services, not to mention the
benefits that Lipa City Government receives under the auspices of some politicians and other
external sources. Given that the current local chief executive is nearing the end of her term, the
sustainability of financial help from external sources such as the nationwide development fund is
uncertain. As a result, the city government must be able to maximize the taxing powers granted
to local governments under the Local Government Code.

Lipa has potential that, if fully realized, will transform the city from an emerging to a highly
urbanized one. Lipa City's strong educational performance is noteworthy. The city is committed
to enhancing its educational system because it feels that education is a vital tool in the fight
against poverty. As a result, Lipa can provide highly competent human or labor resources. On
the one side, the city's health facilities are likewise commendable, with all of its health centers
approved by the DOH as Sentrong Sigla.

The crude birth rate, according to the city health office, is stable while crude death rate had
actually increased. Hence, the rapid growth (i.e. 4.5% PGR) can only be attributed to
in-migration. This is also best explained by the booming economy, because within this period
the LIMA Technology Park was established.
The advent of commercial establishments in the 1980s signaled the city’s leaning towards
urbanization. Since then, the commercial sector has become increasingly important in the city’s
economic development. The commercial area is now a lot bigger. From 30 hectares in 1995,
it now occupies 105 hectares. More and more business establishments mushroomed in the
area in the succeeding years.
The total registration in 1996 was nearly 60% more than the previous year's registration (2,423
in 1995 VS 3,874 in 1996). Surprisingly, it contains 81 percent renewed firms, indicating the
vitality of the city's business sector. The exceptional increase in registration can be linked to the
remarkable number of registered enterprises in the retail trade sector, which is nearly double the
figure from 1995. During the years 1989-2003, the retail trade sector continuously ranked first in
terms of business registrations, indicating that many people are interested in retailing. More
specifically, the bulk of the city's establishments are engaged in retailing, with a consistent share
of more than 50% of total registration during the last 8 years. The city's second growing sector is
the services sector, which accounts for an average of 25% of total firm registrations over a
15-year period.

Out of the 72 barangays in the city, commercial establishments are concentrated in 12 urban
barangays. For instance, the major shopping centers in Lipa are located in Poblacion and the
city’s periphery. They include 1) Fiesta-World Mall (Dagatan); 2) South Supermarket (Ayala
Highway, Balintawak); 3) MS Supermart (T.M. Kalaw Street); and 4) Southern Twin
Supermart (P. Torres Street).

Lipa City's strategic location proved to be an economic boom, as it benefits from the spillover
effects of growth in Metro Manila and Batangas City. Similarly, Lipa City's centralized location
makes it not only the commercial but also the financial capital of the Region.

Issues and Challenges

Lipa City should be prepared to deal with the issues and challenges that come with
urbanization, or else the city will not be able to reap the full benefits of economic growth and
development. Managing urban expansion is a big issue that the municipal government will have
to address straight on. The current administration’s ability and will power to generate
own-source revenue will determine its capacity to ensure that Lipeños are receiving quality
basic social services such as education, health and social welfare services, not to mention the
benefits that Lipa City Government is getting from the auspices of some politicians and other
external sources. Given that the current local chief executive is nearing the end of her term, the
sustainability of financial help from external sources such as the nationwide development fund is
uncertain. As a result, the city government must be able to maximize the taxing powers granted
to local governments under the Local Government Code.

Nonetheless, the city possesses potential that, if fully realized, will transform Lipa from an
emerging to a highly urbanized city. Lipa City's excellent educational performance is noteworthy.
The city is committed to enhancing its educational system because it feels that education is a
vital tool in the fight against poverty. As a result, Lipa can provide highly competent human or
labor resources. On the one side, the city's health facilities are likewise commendable, with all of
its health centers approved by the DOH as Sentrong Sigla. The existence of well-equipped
hospitals, as well as a number of private medical and dental clinics, as well as diagnostic
laboratories, benefits not only the Lipenos, but also the residents of neighboring communities.
Furthermore, the existence of different cooperative and civic organizations that are actively
participating in local government-initiated initiatives demonstrates a strong spirit of cooperation
among Lipenos.

Source:
https://dirp4.pids.gov.ph › ris › dps › pidsdps0451