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Dedicated to Regional Development



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Week 2 February 11, 2004
 


Big projects, small projects

In many places in this region, a lot of government projects are being implemented. As taxpayers, it is important that we take note of these projects because it shows “where our tax payments are being spent”.

It is really quite amusing to observe that some projects are big and many are small. The infrastructure projects that I have seen cost as low as P50,000 to as high as P240 million.

Why the wide gap? The small projects are focused on particular barangays, the big projects seem to cater to larger populations (or markets) such as the province or the region.

It is important that we note (and this is my professional bias) how they impact on our economy. The key questions would, therefore be: How will the projects affect employment? Will it raise family incomes?

To me, a project that does not increase employment and income should be a low priority project. In other words, it should be implemented later, after the employment-generating projects are implemented.

If a project has a minimal effect on raising family incomes should also be a low priority project.

If such type of projects continue to be implemented over several years then these will create a financial drain on government revenues that will not result in solving the poverty problem (which I discussed in my last column).

From a developmental point of view: How will the project reduce inequalities in income and wealth? This is another critical question. A project that caters only to those who have money is certainly not developmental and is inconsistent with the role of government in society. Such projects should be left to the private sector to undertake.

It is apparent that if projects that don't have a significant positive impact on the economy keeps on being implemented then our tax payments will not significantly result in an improved economic situation. In a situation like this, we cannot “move beyond”. Our future will not be as progressive as we want it to be.

   
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