Subic & clark: Industrial ecology models for developing urban centers in the Philippines PDF

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Subic & Clark: Industrial Ecology Models for Developing Urban Centers in the Philippines R. G. Manalo1, M. V. Manalo2 1 Manila Electric Company, Pasig City, Philippines 2 De La Salle University, Manila, Philippines ([email protected], [email protected]) Abstract - This paper is about...

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Subic & clark: Industrial ecology models for developing urban centers in the Philippines May Manalo 2012 IEEE International Conference on Management of Innovation & Technology (ICMIT)

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Subic & Clark: Industrial Ecology Models for Developing Urban Centers in the Philippines R. G. Manalo1, M. V. Manalo2 Manila Electric Company, Pasig City, Philippines 2 De La Salle University, Manila, Philippines ([email protected], [email protected]) 1

Abstract - This paper is about a framework that would help developing nations like the Philippines minimize if not eliminate the various social problems such as poverty, unemployment, insurgency, traffic congestions, pollution, etc., in the various metropolitan cities like Metro Manila. The US occupation of the Philippines did not only teach Filipinos speak English but also leave some infrastructures that can be considered as the sources of development in the country. The former US military bases namely, Subic & Clark , in the Philippines have retained their natural beauty, cleanliness and discipline, even if they are no longer managed by American military personnel. The two economic areas where simple traffic rules are strictly followed are in complete contrast with what is happening in most parts of the Philippines. The proponents’ recommendation is to replicate Subic & Clark in every province and surely, the Philippines will never be the same again.

II.

Subic and Clark are the perfect settings for economic activities because of their existing infrastructures and available human resources and support services. Investors, especially foreigners, will most likely put their money in these places because of the various incentives available as well as the support they get from the government. Given the limited resources of the government, a single Subic/Clark-like project is a big budgetary constraint for the national government. If government resources will be allocated to a single project like Subic or Clark, other social services will be affected if not jeopardized. This economic solution might create an even bigger social concern due to the inequality in the distribution of government resources among provinces and cities.

Keywords – Industrial Ecology, Sustainable Development, Economic Development Zone, Military Base

III. I.

INTRODUCTION

Economic activities in the Philippines are mostly done within the cities and metropolis. The classic example is Metro Manila in Luzon island where almost 30 to 40 percent of the Gross Domestic Product of the Philippines is generated. Other areas include Metro Cebu in the Visayas and Metro Davao in Mindanao. As a result, their populations are growing as more Filipinos from the provinces aspire for better lives in the metropolitan areas. Those who can not find jobs end up being beggars, homeless, squatters and others even become criminals. The increase in the population results to traffic congestion, pollution and high standard of living. Somewhere near Metro Manila, in the provinces of Zambales where former US Subic Naval Base is located and Pampanga where former US Clark Air Base can be found, are two places in the Philippines that are popular for their orderliness. These are two beautiful places left by US military forces and are now managed by the Philippine government. Economic activities are also vibrant in these locations but the environment is clean and people working and living in the areas are disciplined, including motorists. If Subic and Clark can be the rallying points for the Philippines to be an economic tiger, it is only proper for the government to create a Subic or Clark in every province to promote economic activities in the provinces. In this manner, cities and metropolis like Metro Manila will be relieved of their perennial social problems like overpopulation.

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GAP ANALYSIS

FRAMEWORK

In Fig. 1, a framework that may result in reducing if not eliminating poverty in any developing nation is called the Military Base - Industrial Ecology Model. This concept is particularly applicable to those countries struggling to develop and improve their economies and at the same time managing some internal threats to their security. In the Philippines, the local communist guerillas, the secessionist armed groups in Mindanao and some local terrorists affiliated to international terrorist organizations are the internal security concerns.

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Fig. 1. Military Base – Industrial Ecology Model

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The concept is the combination of the military base and special economic zone frameworks which are two different ideas for different purposes. But this combined model will serve one purpose, that is, to improve the living conditions of the citizens of a nation plagued by internal security threats. The proponents believe that by improving the economic lives of the citizens, the internal security concern will die a natural death. The model is composed of five major stakeholders that will play important roles. The cooperation among stakeholders will be the key to the success of the framework. The government agencies provide the needed infrastructure plans and regulations. The Congress or the legislative body of the country shall promulgate a law that would allow the national government and local government units to develop economic areas in the various localities in the country. The complex management is an independent government agency which is mandated to promote and manage the complex. The managers shall be appointed by the President of the country for a fixed term and shall be free from any political considerations or accommodations. Ideally, professional managers should be appointed upon recommendations of the various sectors of the locality. The police organization provides security inside the complex to maintain orderliness and manage local crimes. The police personnel in these areas should come from the best candidates because they will be dealing with foreign investors whose perceptions about our country as a great place to invest in must be protected and preserved. The military organization protects the whole complex from insurgents and lawless elements of the society. Military personnel must at all times manage the perimeters of the complex from any intrusions of armed groups. The government must maintain enough numbers of military personnel to protect the area. Ideally, the locators inside the complex should complement the available raw materials in the surrounding communities as well as the available labor skills. This will surely uplift the living conditions of the surrounding communities which will translate to peace and prosperity. Local insurgency can be minimized if not eliminated when the local communities in the areas are employed and educated.

IV.

METHODOLOGY

There are various stages as well as responsibilities in the implementation plan of the Military Base – Industrial Ecology Model. The national government, together with the local government units will identify the location of the complex. Ideally, the complex should be near a sea where a port can be built or an area where large cargo planes can safely land. This may be the biggest hurdle in the planning stage. There will be expropriation proceedings where the national government must shoulder the payment of the properties in accordance with the existing fair market values. During this stage, the local governments and local media should be responsible for

disseminating the benefits of the project to the local communities. This will somehow reduce the local settlers’ resistance and manage the expectations of the local residents. The military organization will be the first one to set up its facilities once the areas have been identified by the national and local government units. The military organization will set up their camps inside the complex and be responsible for the perimeter security. Military intelligence will have to be strengthened to prevent possible attacks from insurgents and other armed criminals. Once the complex is free from lawless elements, various local agencies and local government units will have to work with the communities and promote the benefits of the complex to them. The local residents must be given assurance with regard to livelihood that they can derive from the construction of the complex up to its operation as an economic zone. The required legislations and ordinances should also be taken cared of by the various government agencies regarding tax incentives and other perks for locators. Foreign investors and local businessmen must not be distinguished so that the same benefits can be derived by local corporations. The national government will also have to invite businessmen engaged in support services such as entertainment, housing, hospitals and clinics, educational institutions, transportation, utilities and others to complement the factories to be constructed and operated. The international community should also be involved to attract foreign direct investments especially those that would use local raw materials for their productions. The police organization which includes the fire department provides internal security and the maintenance of peace within the complex. Police stations will be set up in strategic locations and will maintain an ideal complement of police personnel. State-of-the-art equipment must be provided to the local enforcers so they can respond to troubles effectively and instantaneously. The complex management will be the overall coordinator for the smooth delivery of services and for the protection of the locators. The complex management facilitates the hiring or initial screening of labor coming from the nearby communities as well as the procurement of raw materials from the surrounding areas. The complex management formulates a long term plan on how to involve private entities in the infrastructure development like roads, bridges, seaports and airports. The task of the Complex Management is to develop, improve, and continuously monitor the functionality of the industrial system. This includes the efficient flow of materials, energy and information with the goal of sustainable relationship with the natural and social environment that surrounds the Military Base-Industrial Ecology complex [1]. This relationship among industries is a methodology for maximizing and utilizing efficiently the various resources available to all, thus, eliminating the production of waste by treating wastes of one industry as a by-product and or raw materials for another which normally occur in a natural ecosystems [2].

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The Military Base-Industrial Ecology model can provide a framework to address the problems of poverty and social unrest among the poor nations of the world specifically the Philippines since the scope of this proposed methodology is wide. The model’s final aim is the sustainability of human systems. V.

REVIEW OF RELATED LITERATURE

The Philippines is located just above the equator. It is considered as the second largest islands group in the world with 7,107 islands. The archipelago is bounded in the West by the West Philippine Sea, in the East by the Pacific Ocean, in the North by the Bashi Channel, in the South by Sulu and Celebes Sea. The country lies between Australia and the Asian Mainland, thus, giving it a position at the crossroads of International Air Travel lanes [3]. Since World War II, the Philippines has been on an unfortunate economic trajectory, going from one of the richest countries in Asia during the 1960s next to Japan to one of the poorest countries. But despite the many socio-economic and political crises that it had undergone, the Philippine economy proved comparatively well-equipped to weather the various global financial crises that hit the economy of almost all the countries all over the world during the 1990s [4]. Although the Philippines is considered a poor nation, there are places other than Metro Manila that are considered developing and the economic activities vibrant and flourishing. These are the former U.S. Military Bases in Subic and Clark. Subic Bay Freeport located southwest of Luzon. It is considered one of the points in the growth triangle and is an engine for economic development in the region [5]. Subic Bay Freeport is a supplier of services and products for the Central Luzon Development Program. The place reflects a wellmanaged industrial ecology where both economic development and environmental protection and preservation may be observed. Just like Subic Bay Freeport, Clark Special Economic Zone (CSEZ) has been known for a long period of time as the Clark U.S. Air Base. Today, Clark Special Economic Zone is developing to become the center for business, industry, aviation and tourism in the Philippines as well as the entertainment and gaming center of Asia. With the construction of the Diosadado Macapagal International Airport which is a 2,500-hectare airport complex, Clark is projected in becoming an airport-driven metropolis that will surely bring growth in the region since it is being envisioned to become the country’s main international gateway for all forms of commercial aviation in the near future [6]. With these two capable and successful examples of developing economic areas, it is very promising in poor countries like the Philippines to replicate this strategy and start considering the proposed model called Military Base-Industrial Ecology. This interdisciplinary framework for designing and operating industrial systems can help balance the environmental and economic performance of poor or developing countries.

Industrial Ecology: A Tool for Economic Development There is an increasing awareness of the major roles played by industrial systems in combination with their fundamental linkage with how natural ecosystems work [7]. This knowledge of combing industrial systems with ecosystem is commonly known as “industrial ecology”. The development of industrial ecology is an attempt to provide a new conceptual framework for understanding the impacts of industrial systems on the environment. It is an interdisciplinary framework for designing and operating industrial systems as living systems interdependent with natural systems [8]. This new discipline provides a framework that will assist in reducing environmental impact, improving eco-efficiency, creating good industrial planning and increasing production with the end goal of greater sustainability [9]. The primary goal of industrial ecology is to promote sustainable development at the global, regional, and local levels [10]. The United Nations Commission on Environment and Development defined sustainable development as “meeting the needs of the present generation without sacrificing the needs of the future generations.” This encompasses the wise use of renewable and non-renewable resources, preserving human and ecological well being, and the promotion of environmental preservation and protection [11]. According to Garner and Keoleian (1995), one of the objectives of industrial ecology is to change the linear nature of the industrial system to that of cyclical structure. It means that raw materials are used in the manufacture of products or services with the end view of re-using the energy or byproducts or wastes materials for another product or process. In an industrial ecosystem, the waste produced by one company would be used as resources by another with the end result of minimizing or even eliminating waste in the industrial system without producing a negative impact in the natural systems. Sustainable use of renewable resources and minimal use of non-renewable ones is what industrial ecology promotes since industrial activities are highly dependent on a steady supply of resources. Human beings are also an important component of the complex web of ecological interactions since human activities cannot be separated from the functioning of the entire system. All these related factors in the industrial ecology framework should end with the primary challenge of sustainable development which is the attainment of intergenerational as well as inter-societal equity [8]. This means the capability of the present generation to operate without depleting natural resources and degrading ecological health with the end in mind of providing for the needs of the future generations. This also covers the ability of the new system to eradicate the existence of inter-societal inequities where the poor or underdeveloped countries enjoy proportionately the available resources compared with the rich or developed countries. Industrial ecology according to Allenby (2000) is the objective, multidisciplinary study of industrial and economic systems and their linkages with the fundamental natural systems. This reflects the reality of the world where human

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beings operates in an environment system in connection with technology vis-à-vis the advancement of human culture and economic system. The focus of the industrial ecology approach is the understanding that sustainable development can be possible or achievable if consideration is given to the relationship of the environment to the different human and economic activities not just an overhead but a strategic and integral concern of all. It is not only remediation and compliance to eliminate or reduce the toxic that human operations are doing to the natural biodiversity but an overall strategic and integrative system that will require a high degree of integration involving different fields such as engineering, physical sciences, biological sciences, social sciences, law, economics and technology development [13]. Progress in the adoption of industrial ecology approach towards the desired sustainable world also requires concurrent evolution in ethics and institutions. This is due to the fact that any global sustainable state can be influenced by political, cultural or religious system for its definition and achievement. Although the concept of industrial ecology may sound ambitious due to the integration of many different units and covering a wide perspective ranging from the scale of molecules to that of the planet [14], achieving such a holistic view is a challenge that human kind must face in order to make sustainable development a reality.

Economic Development Zone and the Military Base Approach in Utilizing the Industrial Ecology Concept The economic development zone concept has been around in various forms since the late 1970s [15]. Its primary purpose is to create areas of special economic opportunity for job creation in places that are in greatest need of employment and economic growth. The establishment of an economic development zone normally serves as a focal point for economic development due to the unique benefits that accompany this kind of organization. According to Pollina (2009) economic development zone is attractive both to the government and companies who decided to locate in the area. The government can assist aggressive incentive programs to geographic areas of the country needing economic improvement. Companies investing in the area on the other hand may be extended more aggressive economic incentives to encourage higher levels of economic growth. As the concept of economic zone evolved overtime to meet the needs of modern economic development, these zones have become one...