This study aimed to identify the socio-economic impact of unemployment and poverty, with regard to the peace and order situation, the slow infrastructural development from 1991 to 1993 in the City of Manila. The study is premised on the analysis made by Adam Smith who cited that the wealth of Nation consisted of goods and services that a nation produced. The historical, descriptive and analytical methods of research were used for this study. Findings revealed that as of the government initiative to peace and order situation, the impact is on the deterioration of peace and order, the pick pockets by minors, the kidnapping for ransom, the unsafe street to the city duelers. As of the causal factors affecting the infrastructural program of the city, the squatting in both public and private properties, lack of foresight by the government officials, graft and corruption, lack of modern equipment, laziness of government engineers office and lack of qualified contractors are the main causes of the infrastructural development delays within the city.