MICRO INDUSTRIALIZATION

In the midst of never ending economic crisis, a competent leader's first reaction should be prudence that should result to optimal use of government resources. Simultaneously, he should be thinking of approaches that could stimulate economic activities, not only confined to mega projects where the poor and the unqualifed can not participate but more importantly, micro projects that need soft and appropriate technologies and minimal investments.

Take the case of the emerging industry directions of Iloilo City. There is the hype of several IT companies coming to establish bases and branches. Plans for several thousands of seats of the highly favored Business Process Outsourcing or the BPO industry may soon become realities with MegaWorld and Ayala aggressively fast tracking their hardwares. Leaders claim the readiness of the city to meet the requirements of these companies.

BPO and similar industries are hungry for power and the recently power-sufficient Iloilo City may soon find itself power-deficient in one or two years. Thus there is an urgent need for power franchisee, PECO, to find new sources of power in anticipation of the surge in demand, probably twice the current demand of 85 megawatts.

There is also the emerging demand for attendant services and utilities. These industries would need water probably 50% more than the existing demand of Iloilo City which is met by MIWD at barely 30%, thus the bench mark for water sufficiency should be about 100% of the current supply where the supply agency hopes to meet through its recent PPP strategy.

More importantly, the human resources needed to man these BPO should be ready. This may not pose to be big problem since Iloilo City is the accepted center of education south of Manila. But attendant services needed to accommodate these future employees should be ready. Boarding houses, apartelles, etc. may have to be built and in the case of aging or old houses, converted and improved to meet the housing regulations.

Let us not however forget about those who cannot be employed by these new locators, the barely educated and the unemployed. There needs to be services focused on them, particularly their livelihood or economic activities. At this point, the city's technocrats may think only of vending and small scale trade. But they should think further and think of micro industries, similar to those that propelled Cebu into the industrial center that it is now. Micro processing and manufacturing centered on both food and metal working have created wealth not only for the upscale or the middle level capitalists but also for the small ones.

Take the case of the processed and dried mangoes. Even households process mango and other fruits into preserves that sell not only as pasalubongs but also as common everyday dessert afforded by even the poor households. Basic tools and implements like the bolo, scythes, cane knives, and the cockfighting knife- tari/bulang are made mostly by small craftsmen who employ their relatives and thus provide them with the means to survive and send their children to school and prosper. There is also the vibrant car repair and restoration industry where the majority of the restored units find their way to Iloilo City and elsewhere.

Also notice the second and third generation of industries in Cebu. With the development of highly skilled manpower, many large manufacturing industries including ship building have relocated there. Most important however is the second generation gun- smithing and gun manufacturing activities throughout the island, no longer confined to Danao City. While there is still the many backyard gun makers, the province and city has transposed into a modern gun making island where almost any type of gun can be copied using the best gun metals available in the world and by licensed gun manufacturers employing hundreds of skilled gunsmiths. While some may be illegal and clandestine, the bottom line is that gun manufacturing provides livelihood, economic activity and development.

It is not impossible for Iloilo City to follow the same path. There is already the existence of small scale and micro industries. There is a firecracker industry that provides seasonal employment, albeit dangerous. There is somehow minimal pasalubong manufacturing. But we have the best jeepney body fabrication artisans and shops.

Maybe the present leaders of Iloilo City should think of planned micro industrial development instead of focusing on expense-oriented activities like building a scandalously overpriced city hall. Maybe instead of focusing on services like beauty parlors and barber shops, they should be thinking of metal-crafts, tool and equipment fabrication that is needed in other upstream industries like farming and downstream industries like food processing. It doesn't take a genius to plan and execute all these. All it takes is a single-minded, quick thinking and decisive executive.