Bacolod’s economic zone

By Modesto P. Sa-onoy

The bill filed by Bacolod Lone District Congressman Greg Gasataya last year to create a Bacolod Economic Zone Authority has passed the House Committee on Economic Affairs during the committee hearing last week. There are yet little details published on the bill but from its name, the proposed measure promises exciting economic activities in this part of the country.

Experience in other economic zones like Clark and Cavite shows phenomenal growth not only in the economic sphere but also the social and cultural life of the communities. Economic progress has always a downstream beneficial effect, although there are also undesirable changes in the community. However, managed properly the benefits outstrips the negative impact.

An economic zone is a special area in which the business and trade laws are different from the rest of the country. Its primary aim is to increase trade, create jobs, attract investment, and develop effective administration. In short, its primal purpose is to propel growth within a specific area, in the case of the Gasataya bill, in Bacolod. However, it has always a ripple effect on the neighboring areas and in fact, the growth could spill over beyond the immediate neighbors as the growth will entice labor and investments.

Gasataya said his proposed BEZA will identify the areas in Bacolod that have to be converted into an economic zone or special economic zone either for manufacturing, information technology, and entertainment, among others, as well as to establish a Freeport.

He further said, “The intention of this bill is to provide additional jobs in Bacolod City. Once it will be approved by the Senate and President Rodrigo Duterte, it will generate thousands of jobs because the foreign companies can invest here directly.” That goes without saying because the economic zones that had become operational had been transformed into a beehive of economic activities.

The Bacolod solon added that the House committee will now make its committee report and by April the bill will be discussed again and then on to second reading, a crucial period that we hope the congressmen will consider favorably. Once it passes this crucial line the third and final reading will be easy sailing.

Gasataya also said that “We can provide additional jobs because Bacolod is right for more foreign investments and we don’t know what will happen in five to 10 years from now so we should prepare the city in terms of legislation so that there will be more funds to help the local government”. Indeed, an economic zone, operating under special laws will be able to develop its own way of getting capital to Bacolod.

When this happens the Bacolodnon will have more jobs – they need not go farther but there will also be a need for our educational institutions to attune their courses to meet the labor demands of an economic zone.

There had been several proposals for this kind of legislation. The most discussed idea was to bring together the metro-Bacolod cities and towns for a common economic development zone, but the idea got stuck in verbiage. The Gasataya bill thus is the first that will focus only on Bacolod but even so the neighboring communities will have the spillover benefits.

“If they did it there, so why not also do it here. We have the labor force but some of our students here have to avail their on-the-job training in other places outside Bacolod City because we do not have a manufacturing firm here,” he added. However, that is only transitory and eventually, we become a training ground for others.

Gasataya admits that this bill is forward-looking but that is how leaders should think and act. Leaders should have foresight on what happens tomorrow. Sadly, this is lacking in many of our local leaders who work only as the wind blows.

An economic zone, however, has its drawbacks as earlier economic zones experienced. For one Bacolod and its environs are still agricultural and a sudden shift to industrial and manufacturing will result in several dislocations and disconnections. Granting that the Gasataya bill becomes law within his term the question is whether Bacolod is ready for this shift and our educational and manpower training institutions prepared to provide the skills needed for the new economic activities.

A parallel question that he should address is how prepared Bacolod is.