Economically Speaking: Should Tanauan, Leyte Focus More On Its Numbers?

Filed Under (Economy) by Sarah Songalia on 10-03-2007

It has been a while bloggers and I would like to apologize for that. Blame the audit and tax season, SaavedraSongalia & Associates workplace has been quite a frenzy these past few months, more so in the last few weeks.

I would like to thank those who have shared their ideas in last few blogs. In fact, such fine ideas as inviting SM or Robinsons to invest in Tanauan, creating an economic zone in Brgy. Magay and/or Pago, as well as, building our economies of scale such as the brick industry in Brgy. Canramos, the suppliers of native delicacies, the fishing village in Brgy. Bislig and our participants in the Sunday market who never fail to bring with them something that the Tanauaneños always look forward to. There again were those who wanted to talk about economic facts and figures such as the per capita income and other statistical indicators that give an insight on whether the economy of Tanauan is in good or bad shape. I consider all these comments as indicators that the Tanauaneños are quite ready and raring to see their hometown take-off.

If in the last few blogs we have discussed the award of Tanauan, Leyte as the Most Business Friendly Municipality, thanks to the efforts of our incumbent officials, and whether it is a prosperous town or a town waiting to take off, this time let us dwell on what will help it become an economically viable investment zone and a prosperous municipality.

My consulting work has brought me face to face with places I should have been surprised to see as prosperous or businesses that at the onset would make you laugh but are very profitable. One thing I realized in the course of all those engagements is the fact that profitability or prosperity relies heavily on the marketing efforts being placed on a project. I would like to commend here the analysis of ERNIE TESTON, one of our contributors for tourism, for his article “Tourism for Tanauan, Will it Work: An Analysis.” Indeed there is enough material to support the direct relationship between increased tourism and better economic conditions.

We may want to lobby for an economic zone. We may need concrete industries to support our economies of scale. We may need companies to set up branches in Tanauan Leyte to provide jobs for our people. We may need a lot more. Yet, in the course of all these needs we would always look for somebody other than us, something more than us to help in instituting all these into place.

Becoming an economically viable investment zone and a prosperous municipality would take more than economic reforms, though. Among other things, it would take the work of our leaders to be above excellence (if ever that is possible) so that on a National level, they would be able to gain the recognition of their peers. In 1995 for example, when the PEZA was formed to oversee the creation of ecozones in the Philippines, where were our municipal leaders then? What is in Tacloban City or Barugo, Leyte, the two municipalities that were selected by the government as probable economic zone sites, that Tanauan Leyte cannot develop and offer? Does this mean that the municipal government did not have an economic platform to start with? I am asking this because, then, most of us did not know what happened. There could be somebody out there who could shed light on this.

In 2004, during the 9th National Statistics Convention, Dr. ROMULO VIROLA presented a paper entitled “The Best and Worst Provinces in the Philippines: What Happened To Their Leaders in the 2004 Elections?” The paper evaluated each province in terms of economic and administrative governance (political governance due to lack of data was excluded) to come up with the Good Governance Index (GGI). As I was reading through the paper, I was surprised to see Northern Samar rank #2 (with no offense meant for the provincial government of Northern Samar) in terms of economic improvement between the year 2000 and 2003. For administrative governance, Biliran and Eastern Samar ranked 5th and 6th, respectively, in the ten most improved provinces. What is more amazing is that for the Ten Best Provinces in terms of economic governance only Siquijor (ranked 9th) was cited in the Visayas, all the other provinces came from Luzon.

There is no question that we have a lot of talented Tanauaneños. In fact, on a National Level, we have Tanauaneños holding respected positions in the government. In UP Tacloban for example, we have a Tanauaneño who is an economist who became DEAN of UP Tacloban College in the name of Ms. MARIETTA BANEZ SUMAGAYSAY. Tanauan Leyte over the years has produced a lot of promising graduates. Some of them have prospered, some are still “trapped” in the high paying call center jobs, some have ventured to set-up their own businesses outside Tanauan, still others have migrated to other countries for want of greener pastures. In all the things that we have done, we have tried to carve our name in the industry that we are in, be it in business, education, electronic commerce, manufacturing and the like.

The question now is, will the municipal government push for economic reforms? If they do that, would the Tanauaneños who have something to share be willing to give their resources, talent and time to make Tanauan Leyte an economically viable investment zone thereby making it a prosperous town? If there would be some who are willing, what would be the first step into making Tanauan an economically viable investment zone? CAN WE REALLY START SOMETHING BIG IN TANAUAN, LEYTE?

Let’s hear you guys. Soon politicians will graze the horizon wanting our attention. Our greatest challenge is still to segregate the spoiled egg from the good ones so that our basket will always be full of promising new beginnings. Let’s start the sharing….

Mabuhay ang Tanauan!

Comments:

  1. Good questions Sarah…Its really for the local government to initiate economic reforms, then everything will follow. I, for myself been asking if it is okay to start a business in Tanauan. A friend is going to put up a small bar and cafe resto in our town. I hope everyone will support the said resto and all other small scale enterprise shall be patronized. If it is going to make a profit, who knows more is coming…In a bigger scale, the local government shall do more effort to market Tanauan. But as a first step, they should make sure of the basic needs like sustainable energy power supply, intense security, and sufficient water supply. They should pass more laws and resolutions that will serve as guide for implementation of economic reforms. Red tape must not be welcome during the process. Stop corruption. There should be proper waste management program..Make Tanauan more clean and peaceful. The local government must be transparent to the people…They should consult the expert in order to have proper decisions and have more assemblies to inform and reach out the Tanauananons for any reforms. If the big companies like Pepsi Co. can do well in Tanauan, why not other companies?

    [Reply here]

  2. That is also a good question Opuk. Indeed, why not other companies? Let’s for a while objectively assess Tanauan, Leyte. What would companies consider when investing in a town? Any investor would always assess whether his investment can be recovered and if so for how long. The length of time that his investment would be recovered would depend on the overhead that will be incurred and the revenue that can be generated from his venture.

    Do the people of Tanauan, Leyte have the capability and capacity to consummate a sale? If so what is the percentage of the people able to do this as against the people who live by day to day in order to survive? The per capita income of our town would now play a role. The question is, do the municipal government have the data for this? It is a known fact that our electricity charge in Tanauan, Leyte is more expensive than in Metro Manila. What remedies can the municipality implement to take care of this? What is the spending pattern of the people in Tanauan? What attracts the people of Tanauan? What is the percentage of the old as against the youth? What are the existing businesses in the municipality and what are their major concerns? How has the municipality addressed this? What major organizations affect the municipality? How is the peace and order in the town? How much does a Tanauaneno spend on food, clothing, shelter and other necessities on the average? What percentage of his income does a Tanauaneno save for emergencies, medical needs and retirement?

    The list can go on and on. What is clear though is that we need the help of our municipal government and our Tanauanons who can invest in our hometown. I wish your friend well on his venture. May there be more Tanauanenos like your friend who would be willing to invest their resources in our town.

    Best regards! To all of you out there, let’s continue the sharing…

    [Reply here]

  3. Let me put in my two cents on the issue in terms of physical planning and development. What I mean by that is how “Planning and Architecture” play an important role in every aspect of city or town development.

    Planning as we know it today, started with physical planning, with the Architect in the lead role. The great cities of the world have taken shape mainly through the activities of the Architect, with the collaboration of various professionals in different fields of engineering, social, education, public health, legal, researchers, ecologist, transportation, etc.

    I wonder if the municipal government of Tanauan has a current “Master Development Plan” for our town. This is a primitive and important step that will serve as a blueprint and guide as to how we are going to embark towards development of our town. Let us not create another mistake of ineffective road systems, unattractive and dilapidated public buildings, unplanned residential and commercial zones, unpreserved agricultural fields, potential flood areas, and the list goes on and on.

    In contrast, planned residential and commercial development, effective drainage and water supply systems, beautifully landscaped parks and playgrounds, architecturally designed buildings, promotion of green environment and preserving nature, etc. — all of these constributes positively in attracting investors and tourists alike.

    I believe Tanauanenos can do it. Tanauan has a vast resource of qualified professionals that can contribute to the development of our town. Let’s all work together and collaborate with our government.

    Together we can do it.

    [Reply here]

  4. Again, Architect, you are right! Before anything else we should have that plan. I also wonder if the municipal government do have that. I am not sure who is heading the Municipal Development Planning. THey could probably shed light on this.

    [Reply here]

  5. Is Tanauan still a third class municipality? What happens to the revenues we get from taxes paid by local companies and small scale industries we have in Tanauan? What about the IRA?

    [Reply here]

  6. I commend your blogs, Sarah; very informational and well-written. Anyway, in response to your query, I believe economic planners need to look at the statistics. I am not in anyway an authority who can intellectually address this issue as I am not an econmist; I am in the medical health profession. But I can argue and discourse based on pragmatic way of thinking. At any rate, government officials and economists, upon looking at the figures (hopefully), can identify areas in which to work on. Based on the statistics you supplied, Tanauan, Leyte is below the poverty level. We can first start and focus on this issue on how to increase the household income in order to augment the economy. We need to encourage every adult member of the household to work and put money on the table in order for the family to survive. In an ideal setting, it is the government’s responsibility to create jobs to its constituents. But this is not happening in Tanauan and to the Philippines as a whole. This is something curious minds have to investigate. Why is Tanauan, Leyte below the poverty level? One, does the “white collar job” mentality have to do with this issue? Second, is there an over supply of education so that nobody wants to work anymore in the farming industry and small scale industry/cottage industry? Third, what can the government do to fix this problem? It is election time. Have the politicians address this issue yet in their campaigns? I see on the televison people in Manila who are in the streets always waiting for the opportunity to derail the government and I see on television foreigners being kidnapped for ransom. If I were a foreign investor, do you think I would come and invest my money knowing there is no security and political stability in your country? Do we really need mass education to curb the economy? How many of these unemployed have college education/degrees? Unless the government work on these issues confronting the country right now, I believe there can not be progress and prosperity in the Philippines.

    [Reply here]

  7. Thank you Mano Frank. This blogsite is really supposed to do that — give you information and air your ideas so that the whole of the population who still want to see Tanauan, Leyte take off will have a forum where everybody is free to share. We do need people like you who can fearlessly share their thoughts. You have also contributed your fair share of ideas and do know that we are grateful for it.

    Tanauan, Leyte has quite a history with the Spanish era. I hear great stories about the war and other traditions that make me believe has molded us into what we are now. The culture of the “elite and the worker” is predominantly imbibed in us Filipinos (not only Tanauanenos)that in Tanauan, when you visit and meet friends you have not seen for a long time, you can expect that the first question that you will hear them ask you is “where do you work?” or “kumusta ka?” And if the answer you give them is not up to their “expectations” you would not really be treated as nicely as those who are in “influential positions.”

    I guess this attitude of aiming for what you call the “white collar job” is a result of this conditioning. And this is very true in Tanauan. How many families have vast farmlands in Tanauan? Have any of you seen any of the family members working on the farmlands? Probably a few, but for most, they view it as not “decent” to work in the farm. How many families do you know have ventured into business? Are they not the same families who have been in business even before you were born?

    It is true, that every adult member of the family should strive to put food on the table but because of fewer jobs in the province many of our graduates still look up to their parents for support. Had they been educated in a way where they need not look for jobs but create income generating activities for themselves, it would have been a different story.

    I still believe that education is the most powerful tool in curbing the economy. The only question is, what curriculum should the educational system adhere to? Should entrepreneurship be on top of the list? If I am to be asked, my answer will be a very big YES!

    These are pressing issues that need to be addressed on a macro level for it to trickle down to the micro level. The micro level, however, can lobby for this propaganda so the macro level will hear. Planning will take a lead role in all of this. Without the plan, no concrete actions can be taken. In order to plan, we have to know and understand the current situation. Statistics can be a helpful gauge but it cannot be used conclusively. The qualitative side of all things needs to be considered.

    As I am just a writer in this site and do not have an influence in any way on how the local nor the national government will run their show, I can merely address some issues you have raised based on some research with a little bit of opinion. Lets hope the rest of the people who are monitoring this site and who have a say on how things are being done in our hometown contribute their valuable pieces of information. That would be the only way wherein this blogsite would be effective. In as much as it is election time and the local campaigns will soon start rolling may the insights in this blogsite help form the platform of government of our future leaders. We assure you Mano Frank and all our web visitors out there that we will always strive to give you our cents worth on issues that needs to be discussed. May you always be a part of us.

    [Reply here]

  8. Yes, Tanauan, Leyte is still considered a 3rd class town. The IRA or the Internal Revenue Allotment is dependent on the taxes that the municipality can collect so that if there are fewer businessess who are paying taxes and fewer people who are declaring their true income, then our tax collection will not really warrant an amount sufficient to give our town the prosperity it wants to achieve.

    [Reply here]

  9. progress start with economic activities. it create jobs, increase per ca-pita income of household thus creating domino effects of progress. so why don’t you identify potential business ventures in tanauan, maybe some business minded tanauanenos living abroad will be interested in investing. i heard that there are some foreigners attending the surfing competition
    in santo nino beach, this is one best way of attracting foreigners if we develop our beaches & surely someone will be interested to put up beach resorts catering the needs of the sport. maybe this is a good field to start. consult the municipal development officer on business venture potentials and publish it on this blog-site for everybody to see, who knows we might be able to catch investors.

    [Reply here]

  10. Economic activities spur the foundations of economic reforms. Progress, however, is the result of sustained economic activities. A concrete economic plan and desired economic gains will form the foundation for sustained economic activities.

    Soon the founders of this blogsite, hopefully together with the municipal government, will be sponsoring an economic survey in Tanauan, Leyte to find data on key economic indicators. That would answer best answer what potential business ventures there are in our hometown. Right now, as I am far from our hometown, and just trying to give my cents worth on the economic issues that mirror our town, I cannot yet give this data.

    [Reply here]

  11. All I can say is planning should commence from the municipality, so citizens will be able to comprehend the situation in our town. The government should lead us and create jobs for these unemployed citizens. Prosperity is such a long process, not just by a click or a snap of fingers. If we all really think of it, we can make it for we have our own resources that need good hands to flourish them as we welcome investors. We truly need trustworthy officials to make these things possible and have the desire to uplift our economy.

    Family members working on the farmland? Why not? But do not we have an apprehension that by doing so we are taking their jobs away as farmers? For me, it is better to give those jobs to them, so they will be able to provide their daily needs. Farmers need consideration…

    Perhaps they said it all…

    Good luck and may this come into reality.

    [Reply here]

  12. Much is needed to be done by the local government in the infrastructure level. Our physical environment should be welcoming and pleasing to potential investors.

    Here is one of the many things I would like to comment - the proper implementation of our National Building Code. What is our local government doing when it comes to new construction and renovation of old structures - especially for commercial use? Are they inspected by our building officials? Are the building officials well-equipped to do the job? Do the buildings meet the minimum requirements of the Building Code - parking space, stability, safety, etc.? I hate to see a bakery shop or a restaurant without at least one or two parking space. Chances are, a client with a car will park in the street- the result, they will block the flow of traffic!

    The local government can even make some revenue from doing building inspections. Make it a requirement for every building being constructed - charge a fee for every inspection - from foundation, roughing-ins, electrical, mechanical, plumbing, occupancy,etc. This will ensure safety for every structure being built. And I think it’s time for the local to enact a local building Code and enforce it before violations become even more rampant thereby compromising the safety of our people.

    [Reply here]

  13. your right sarah our IRA depends on the revenue that the municipality collects and the municipality is earning from the Real Property tax & business taxes and we can even earn more kon tuhay la it collection officer hit BIR. just look at the procedure on how to get and renew business licenses the office of the Mayor allows our business man not to ask clearance from Mr BIR. WHY? because they know na nang dudugas si Mr. BIR but they do nothing with this imbis na magiging income hit municipyo it income tax nawawara kay mas dako pa it guin aaro ni Mr BIR kaysa hit guin reresibuhan para ha gobyerno.

    [Reply here]

Leave a Reply

Infilutions SSand Associates