The Economic Role of Metro Manila in the Philippines: A Study of Uneven Regional Development under Globalization

Abstract

Ever since Manila was established as the Western Pacific base of the galleon trade in 1571, the city has always played the central role in government, the economy, and culture in Las Islas Filipinas. American control of the archipelago in 1898 and the creation of the Philippine Republic in 1946 did not fundamentally alter the centrality of what is now Metro Manila. This paper analyzes Metro Manila's centrality within the dynamics of economic processes by introducing a critical political economy approach to research on uneven development in the Philippines under globalization. It elaborates on the economic role of Metro Manila, focusing on five themes. First, the paper discusses the role of Metro Manila as the mediating site within the Philippines, and between the Philippines and other countries, through communications and transportation infrastructure. Second, consumption and income concentration in Metro Manila are examined. The third and fourth themes look at the transformation of Metro Manila from an industrial to a post-industrial production site and the transfer of finance capital, within the context of finance capital concentration in Metro Manila. The last theme covers the concentration of corporate headquarters as a component of Metro Manila's economic power.