Smart cities mean smarter communities

In the vibrant archipelago of the Philippines, LAB.PH (or the LAB, as it’s commonly known), is the economic development and technology consultancy arm of the Roxas-Kalaw Foundation for the Eradication of Poverty. Eschewing the traditional focus on smart cities that rely on technology alone purely as a means to solve problems, the organization champions a more inclusive vision: creating smart communities through people, technology, and good governance. We emphasize not only technological advancement but also the empowerment of local communities, ensuring that the benefits of innovation reach every layer of society.

The LAB’s forward-thinking approach benefits communities economically, socially, and environmentally. Harnessing data and technology to unlock potential in underserved areas leads to the development of robust, sustainable cities.

Laying the groundwork for community transformation

To genuinely prepare communities for technological integration, we must first enhance the basic enablers of development. This involves improving educational opportunities, which give individuals the knowledge and skills to interact with new technologies. It also includes boosting the economic conditions that provide the purchasing power needed to access and benefit from smart technologies.

Only by elevating the overall quality of life—through economic empowerment and provision of essential services—can we create an environment where advanced technologies can be effectively implemented and utilized.

At the heart of our initiatives is the intelligent use of data, analyzed through our Economic Development Framework known as Community OS. Our approach balances the social, financial, and ecological aspects of various activities within an ecosystem. Just as big data must be meticulously cleaned, sorted, and analyzed to extract valuable insights, a similar process is essential when engaging with local communities to ensure the most accurate and useful information is obtained.

By methodically organizing and interpreting community input, we can identify underlying patterns and needs. This allows us to take targeted actions that are not only effective but also deeply resonant with the community’s unique context and aspirations. This structured engagement ensures that our initiatives are grounded in reality and tailored to foster meaningful and sustainable improvements within the community.

The LAB actively engages with local stakeholders to establish partnerships across public and private sectors. We organize communities, gather and interpret diverse data sets, and pinpoint precise supply and demand discrepancies in every industry using a social accounting matrix that comprises balance sheets, household income statements, inputs and outputs of goods and services, and investment potential.

The impact of data-driven community organization

Community OS is instrumental in revealing opportunities. By allowing us to dive deep into the data, it helps us identify untapped areas with high growth potential. This could lead to the introduction of new industries that align with the community’s existing strengths; or it could help us enhance underdeveloped sectors with high potential.

From here, we unveil potential business opportunities within an open data framework, compile essential business requirements, and implement a tailored portfolio of businesses designed to meet unique local needs. This model not only generates crucial information but also provides a perspective through which community members can effectively identify and address local challenges. This process fosters entrepreneurship, enhances trade, solidifies partnerships, and attracts investments, driving out poverty and nurturing sustainable growth.

The impact of these discoveries is profound. New industries bring new jobs, diversifying the local economy and providing residents with both employment and training opportunities. This not only enhances their skills but also boosts their confidence, encouraging them to innovate and take entrepreneurial risks.

Moreover, the presence of new industries and a thriving job market attracts further investment. Investors are keen on markets that show vibrant economic activity and a commitment to sustainable growth. As these investments flow in, they bring additional resources and expertise, reinforcing the cycle of growth and innovation.

Revealing opportunities for community growth

Our work with Local Government Units (LGUs) shows how data can streamline governance and enhance public administration. Often, LGUs have budgets that might not always be directed toward the most impactful projects due to a lack of detailed community insights. With the rich data provided by Community OS, LGUs can now better assess the needs of their constituents and plan projects, policies, and initiatives that are directly relevant to the people they serve. This approach prevents the misallocation of resources on less helpful projects such as unnecessary infrastructure, and directs funds towards initiatives that offer genuine benefits.

In San Jose del Monte, Bulacan, a province in the Philippines, The Lab’s detailed mapping and analysis have dramatically illustrated the power of data in transforming local economies. Over five months, we mapped a population of 600,000 people across 59 barangays (the smallest administrative unit in provincial and city government), identifying 69 industries with combined assets of about Php 30 billion [US$518.6 million].

A striking discovery was made in the pork industry: while the community exports pork worth Php 20 million annually [US$345,000], it imports processed pork products valued at nearly Php 800 million [US$13.8 million].

This substantial gap revealed a critical opportunity for local development of processing centers, small pig farms, and the establishment of businesses that can help fill this demand. Addressing this deficit could significantly enhance local production capabilities, reducing reliance on imports and bolstering the local economy. This model can then be replicated throughout other industries and sectors.

Building sustainable infrastructure beyond metro manila

In the Philippines, the concentration of opportunities in Metro Manila has long overshadowed the potential of other regions. This urban-centric approach to development has shown its limitations, particularly in its failure to promote equitable growth across the country. The LAB recognizes the urgent need to shift focus and resources towards creating infrastructure that supports sustainability and economic diversification in underserved areas.

A recent study conducted by LAB.PH in one of the major regions in Mindanao, home to 3 million people, underscored the transformative potential of internet connectivity. Our findings revealed that the principal barrier to economic and social development was the lack of digital access. Connectivity remains a significant hurdle; without reliable internet access, numerous regions are unable to participate in the burgeoning digital economy, which is critical for modern business practices, such as e-commerce, and accessing vital services like financing and credit. By prioritizing the establishment of robust internet infrastructure, we aim to unlock a multitude of opportunities for the local population.

Enhanced connectivity will enable residents to engage in e-commerce, opening up markets and business possibilities that were previously inaccessible. It will also facilitate essential services such as online banking, credit provision, and wider communication channels. These advancements are pivotal for integrating these communities into the national economy, promoting local entrepreneurship, and ensuring that the benefits of economic growth are more evenly distributed.

Our vision for the future: digital inclusion

Once these opportunities are discovered, what comes next, and how do citizens benefit from it?

Building on the infrastructure improvements across the Philippines, LAB.PH created the LifeCert, a universal digital identity system designed to revolutionize how individuals interact with and benefit from various socio-economic opportunities.

LifeCert will serve as a foundational element in empowering individuals, giving them unprecedented access to benefits that were previously beyond reach due to logistical and bureaucratic constraints. This digital identity not only confirms an individual's identity and credentials but also acts as a portable record of their professional and community-based contributions, which can be used to create granular data. Its self-sovereign nature gives users full control over what data they provide and to whom, in a system where credibility and trust are built through verifiable data accessible from anywhere in the country.

With improved connectivity, LifeCert will enable citizens, especially those in previously marginalized regions, to participate fully in the national economy. This digital identity facilitates smoother transactions. It also provides easier access to government and financial services and is a reliable means of engaging in e-commerce platforms.

The implementation of digital identity, alongside enhanced internet infrastructure, represents a dual thrust towards achieving comprehensive socio-economic inclusivity. It's not just about connecting people to the internet; it's about integrating them into a broader network of services and opportunities that can significantly elevate their quality of life. LAB.PH is at the forefront of this ambitious endeavor, committed to delivering these transformative technologies to every Filipino, thereby ensuring that the benefits of development are shared by all.2