usec. lontoc

LOCAL ECONOMIC DEVELOPMENT
(LED) AND COMPETITIVENESS
ANNELI R. LONTOC, CESO I
Senior Research Fellow/Guest Lecturer, UP
School of Urban and Regional Planning
8 March 2016
SCURP 2016
A BASIC COURSE IN URBAN AND REGIONAL PLANNING (ABC in URP)
Training and Extension Services Division
3/F Cariño Hall, School of Urban and Regional Planning
University of the Philippines - Diliman, Quezon City
7-11 March 2016

OBJECTIVES OF THE LECTURE
• Promote better understanding of the local economy and
how to enhance its comparative and competitive advantages
• To define the concepts of local economic development (LED),
competitiveness, economic diversification and social
entrepreneurship/social enterprises.
• To be familiar with the data requirements for planning the
economic sector at the local level
• To provide the analytical framework on how to identify your
comparative and competitive advantages.
• To present good practices on economic strategies to enhance
competitiveness in agriculture, tourism and others.

OUTLINE OF PRESENTATION
1. Concepts of local economic development
(LED), competitiveness, economic
diversification and social
entrepreneurship/social enterprises.
2. Data requirements
3. Analytical framework on how to identify your
comparative and competitive advantages
4. Local Economic Strategies
5. Good Practices from Cities

CONCEPTS OF LOCAL
ECONOMIC
DEVELOPMENT

HOW LOCAL ECONOMY WORKS?
Source: Local Governance Support Program for ARMM (LGSPA), Strategic Local Economic Development: A Guide for Local
Governments, 2009. Accessed on 1 March 2016, at http://www.slideshare.net/led4lgus/strategic-local-economic-development-a-
guide-for-local-governments.

WHAT IS LOCAL ECONOMIC
DEVELOPMENT?
- a process by which public, business and non-governmental sector
partners work collectively to create better conditions for economic
growth and employment generation. (WB, 2006)
- a participatory process in which local people from all sectors work
together to stimulate local commercial activity resulting in a
resilient and sustainable economy. It is an integrated, process-
oriented and non-prescriptive endeavour. It embraces local values
(poverty reduction, basic human needs, local employment,
integration of social and environmental values), utilizes economic
drivers (value-added resource use, local skills training, retention of
income, regional cooperation), and considers development (the
role of structural change, quality of development). (UN Habitat,
2005)¹
¹Source: http://www.slideshare.net/led4lgus/le-dseries-vol2manual2

OBJECTIVES OF LED
 to build up the economic capacity of a local area to
improve its economic future and the quality of life
for all.
 to harness the public, business and
nongovernmental sector partners to work
collectively to create better conditions for economic
growth and employment generation.
 to focus on enhancing competitiveness, increasing
sustainable growth and ensuring that growth is
inclusive.

LED Guiding Principles
1. LED is a strategically planned process.
2. LED involves integrated interventions across multiple sectors
3. LED is premised on strong local leadership
4. LED is about sustainable development
5. LED is premised on stakeholder engagement/ participation
6. LED inclusivity focuses on enhancing gender equality
7. LED promotes a strong enabling environment
8. LED involves partnering and partnerships
9. LED emphasizes creativity and flexibility in its approach
10. LED knows the importance of existing businesses and pays
attention to their needs
11. LED efforts are proactive
Source: Federation of Canadian Municipalities/International Technical Assistance Project “Ukraine Municipal Local Economic Development”, 2014

ENABLING ENVIRONMENT FOR LOCAL
ECONOMIC DEVELOPMENT
INSTITUTIONAL
STRUCTURES AND
MANDATES
ECONOMIC
CIRCUMSTANCES AND
OPPORTUNITY
SOCIAL DEVELOPMENT
AND SOCIAL CAPITAL
ENVIRONMENTAL
CHARACTER AND
SUSTAINABILITY
LOCAL
ECONOMIC
DEVELOPMENT
• systems of
government and
governance;
• regulations and
legislations;
• transparency
and
accountability
• gender equality;
• civil society;
• culture,
education,
health, housing
and safety
• competitiveness
and comparative
advantage;
• Entrepreneurship;
• Incomes and
employment
• Labor and capital
markets;
• market
proximity/access
• Land, air, and
water –
character,
capacities, etc.;
• Environmental
regulation and
behaviour;
• Green
alternatives and
opportunities
Source: Federation of Canadian Municipalities/International Technical Assistance Project “Ukraine Municipal Local Economic Development”, 2014

What is Competitiveness?
• Comparative Advantage vs. Competitiveness
Advantage
• Comparative advantage – happens when one can
produce a product/service at a lower cost than others.
• Competitive advantage – happens when one can
sustain its comparative advantage through innovation
and continuous improvements such that the
products/services attain very high quality and now
attract potential investments and can penetrate wider
markets here and abroad.
Source: Manalo Z., SCURP Lecture Notes, 2014

Challenge to LGUs/Business
• To identify and focus on products/services (food and non-food,
trade, tourism, manufacturing industries) where it already has
comparative advantages; enhance their competitive
advantages; and then sell these to domestic markets and
ultimately to the global markets in Asia and the Pacific,
especially in ASEAN, US, etc.
• The business sector* plays the lead while government provides
the support infrastructure, incentives, technical, financial and
marketing assistance to reach the goal of competitiveness.
*Farmers’ cooperatives, small/medium/large industries, trading and
transport sectors, social entrepreneurs, banking community, etc.

STRATEGIES FOR URBAN
COMPETITIVENESS
1. Top-Down versus Bottom-up
2. Mobilizing Local Talents and Energies
– “Cities have one crucial resource - their people. Human cleverness,
desires, motivations, imagination and creativity are replacing location,
natural resources and market access as urban resources”
3. The Need for Effective Governance
– collaboration between government officials and private sector (e.g.
universities, business firms, professional associations, social service
entities, ethnic communities, the chamber of commerce, etc.)
Source: UNHABITAT, 2013

STRATEGIES FOR URBAN
COMPETITIVENESS
4. The Extent or Scale of the City
• City
• Metropolitan area
• Urban Region
• Province
5. How to Become a Creative Place
• creative industries – film, design, fashion, music, video,
media, advertising, etc.
• knowledge-creating and technological-development
activities
6. Path Dependency versus a New Path
Source: UNHABITAT, 2013

Global and National Competitiveness
Indices
• Global Competitiveness Index (GCI) - a comprehensive
tool that measures the microeconomic and
macroeconomic foundations of national competitiveness,
using the 12 pillars of competitiveness: institutions,
infrastructure, macro-economic environment, health and
primary education, higher education and training, goods
market efficiency, labor market efficiency, financial
market development, technological readiness, market
size, business sophistication and innovation.
Source: World Economic Forum – Global Competitiveness Report 2015-2016
www.weforum.org

Global Competitiveness Index (GCI), 2015-
2016
Top 5 of 140 Countries
RANK COUNTRY
1 Switzerland
2 Singapore
3 United States
4 Germany
5 Netherlands
ASEAN Countries Ranking
RANK COUNTRY
2 Singapore
18 Malaysia
32 Thailand
37 Indonesia
47 Philippines
Philippines: Global Competitiveness Ranking
RANK YEAR
47 2015-2016
52 2014-2015
www.weforum.org

Global and National Competitiveness
Indices
• Travel & Tourism Competitiveness Index (TTCI) - measures “the set
of factors and policies that enable the sustainable development of
the Travel & Tourism (T&T) sector, which in turn, contributes to the
development and competitiveness of a country.” It comprises four
subindexes, 14 pillars, and 90 individual indicators, distributed
among the different pillars:
1. Enabling Environment - business environment, safety and security, health and
hygiene, human resources and labour market, ICT readiness;
2. T&T policy and enabling conditions - prioritization of travel and tourism,
international openness, price competitiveness, environmental sustainability;
3. Infrastructure - air transport infrastructure, ground and port infrastructure,
tourist service infrastructure;
4. Natural and Cultural Resources - natural resources, cultural resources and
business travel,
www.weforum.org

The Travel & Tourism Competitiveness
Index 2015 Ranking
TOP 5 of 141 COUNTRIES
RANK COUNTRY
1 Spain
2 France
3 Germany
4 United States
5 United Kingdom
ASEAN Countries Ranking
RANK COUNTRY
11 Singapore
25 Malaysia
35 Thailand
50 Indonesia
74 Philippines
Philippines: Travel & Tourism
Competitiveness Ranking
RANK YEAR
74 2015
82 2013
94 2011

The Cities and Municipalities
Competitiveness Index
• is an annual ranking of Philippine cities and
municipalities developed by the National
Competitiveness Council through the Regional
Competitiveness Committees (RCCs)

FRAMEWORK OF COMPETITIVENESS
OF CITIES
The framework integrates these pillars of local economic development and competitiveness up to the regional,
national, and global levels.

Economic Dynamism
• Associated with activities that create stable expansion of business and
industries and higher employment
• Conceptually, the combination of the entrepreneurial spirit and the
financial institutions that will channel dynamism (Edmund Phelps). It is
recognized that localities are the centers of economic activities.
Therefore, business expansion and job creation are easily observable in
local settings.
• Size of the Local Economy (as measured through business registrations,
capital, revenue, and permits)
• Growth of the Local Economy (as measured through business registrations,
capital, revenue, and permits)
• Capacity to Generate Employment
• Cost of Living
• Cost of Doing Business
• Financial Deepening
• Productivity
• Presence of Business and Professional Organizations

Government Efficiency
• refers to the quality and reliability of government services and support for effective and
sustainable productive expansion ;
• this factor looks at government as an institution that is generally not corrupt; able to protect and
enforce contracts; apply moderate and reasonable taxation and is able to regulate proactively (La
Porta et al, 1999).
• This represents the people and culture factor that Porter alluded to in understanding the process
of competitiveness and making locations productive
• Transparency Score in Local Governance Performance Management System
• Economic Governance Score in Local Governance Performance Management System
• Ratio of LGU-Collected Tax to LGU revenues
• LGU Competition-Related Awards
• Business Registration Efficiency
• Investment Promotion
• Compliance to National Directives for LGUs
• Security
• Health
• Education

Infrastructure
• refers to the physical building blocks that connect, expand, and sustain a
locality and its surroundings to enable the provision of goods and services;
• involves basic inputs of production such as energy, water; interconnection
of production such as transportation, roads, and communications;
sustenance of production such as waste, disaster preparedness,
environmental sustainability and human capital formation infrastructure.
• represents the idea of making productivity sustainable over time
• Existing Road Network
• Distance from City/Municipality Center to Major Ports
• DOT-Accredited Accommodations
• Health Infrastructure
• Education Infrastructure
• Availability of Basic Utilities
• Annual Investments in Infrastructure
• Connection of ICT
• Number of ATMs
• Number of Public Transportation Vehicles

Cities and Municipalities Competitiveness
Index 20
TOP 10 CITIES
RANK OVERALL
ECONOMIC
DYNAMISM
GOVERNMENT
EFFICIENCY
INFRASTRUCTURE
1 Manila Quezon Iloilo Manila
2 Cebu Makati Naga (CS) Cebu
3 Makati Manila Cagayan de Oro Makati
4 Quezon Cebu Makati Cagayan de Oro
5 Davao Paranaque Davao Zamboanga
6 Cagayan de Oro Davao Kidapawan Quezon
7 Iloilo Caloocan Valenzuela Davao
8 Paranaque Pasig Cebu Caloocan
9 Naga (CS) General Santos Angeles Paranaque
10 Valenzuela Muntinlupa Balanga Calapan

Cities and Municipalities Competitiveness
Index 20
TOP 10 MUNICIPALITIES
RANK OVERALL
ECONOMIC
DYNAMISM
GOVERNMENT
EFFICIENCY
INFRASTRUCTURE
1 General Trias Gen. Trias Santa Barbara (IO) Angono
2 Santa Maria (BU) Lupon Midsayap Malay
3 Taytay (RL) Santa Maria (BU) Maramag Taytay (RL)
4 Kabacan Cainta Agoo Cainta
5 Kalibo Polangui Kalibo Silang
6 Angono Daan Bantayan San Francisco (AS) General Trias
7 Daan Bantayan Taytay (RL) Sablayan Kabacan
8 Midsayap Kabacan San Jose (AE) Daet
9 Santa Barbara(IO) Polomolok Surallah Balayan
10 Polomolok Malay Limay Malungon

1 Davao del Sur
2 Misamis Oriental
3 Cebu
4 South Cotabato
5 Zamboanga del Sur
6 Rizal
7 Agusan del Norte
8 Benguet
9 Cavite
10 Camiguin

Key Lessons for City Competitiveness
1. Institutions
 the decision-making framework of the city
 Leadership and vision—a clear, far-sighted view of where cities
should head, and a single-minded practical will to ensure they get
there—show the power of city leaders as CEOs.
2. The Regulatory Framework for the City’s Business Climate.
 “Getting the basics right”—which involves stable and prudent fiscal
policies, including efficient and simple taxation;
 a flexible labor market;
 openness to trade and foreign investment;
 simple and transparent business regulation
www.weforum.org

Key Lessons for City Competitiveness
3. “hard connectivity”—the city’s core physical
infrastructure.
 Transportation (air, road and rail)
 Communications
 Energy
 Logistics systems (especially those that feed into regional
production clusters and global value chains)
4. “soft connectivity”—the city’s social capital.
Education is the ultimate soft connectivity
digital infrastructure
www.weforum.org

In summary…
• Plan for competitiveness using the strategic approach – focus
on the products/services with comparative advantages and
aim for inclusive growth where everyone benefits from the
development of the local economy.
• Competitiveness subscribes to the objective of sustainable
development wherein economic production should not lead
to destruction of the environment to ensure that future
generations will equally benefit from our resources.
• Competitiveness is sustained by innovation and continuous
improvement, which depends on information, an accurate
assessment of market needs and access to new technology.

Economic Diversification:
• Economic Diversification – the transformation of
the economic base of the province/ city/
municipality.
• Economic base – is made up of the economic
activities that provide the primary employment
and income to the economy.
• “Where are you now, and where do you want to
go?”
Traditional
Agriculture
Agro-Industrial
Economy
Agro-Ind’l
Mfg/Other Inds
Agro-Ind’l
Mfg/Other Inds/Servs
Route to Economic
DiversificationSource: Manalo Z., SCURP Lecture Notes, 2014

Economic Base Theory
Theoretical Foundation:
Economic or Export Base Theory
Economic base includes activities that provide the
primary employment and income of an area, whether
this be a municipality, city, province or region. The
theory divides the economy into two: basic or export
sector and non-basic or residentiary sector that caters
to the local market. The export sector produces
goods/services for areas (national or international)
outside its borders.

Illustration of Economic Base Analysis
Economic inter-relationships between areas under the Economic Base
Theory :
Economic Effects on City A:
- City A exports to City B Exports Increase the Income of City A
- Increase in the income Increases the Consumption of City A of
both local/imported goods/services
- Increase in the consumption Increases the income even of
of local goods/services non-basic sector of City A
- Increase in the income of Even higher income for City A
both export and non-basic
sectors

Economic Effects on City B:
- If City A also buys imported Increase in income of the basic
goods/services from City B or export sector of City B
- Increase in income in City B Increase in consumption in
City B even of non-basic
goods/services
……and so forth …eventually leading to higher income for City B
as well. Trade produces beneficial effects to both cities.
Hence, the aim is to produce and sell competitively beyond one’s
territorial boundary to progress in economic development.
Illustration of Economic Base Analysis

Social Entrepreneurship and
Social Enterprises
• Adopting a mission to create and sustain social value (not just
private value),
• Recognizing and relentlessly pursuing new opportunities to serve
that mission,
• Engaging in a process of continuous innovation, adaptation, and
learning,
• Acting boldly without being limited by resources currently in hand,
• Exhibiting heightened accountability to the constituencies served
and for the outcomes created.
…Entrepreneurs playing the
role of change agents in the
social sector, by:
Source: J. Gregory Dees (2001)

Social Entrepreneurship and Social
Enterprises
Social Enterprise is defined as:
• “an organisation, whether an
association, single proprietorship,
partnership, corporation, or a
cooperative, whose primary
stakeholders and/or beneficiaries are
marginalized sectors of society,
engaged in providing goods and
services that are directly related to its
mission of improving societal well-
being.
• It generates profit or surplus with due
regard to social and environmental
costs, and makes a proactive
contribution to resolving social and
environmental problems. (HB 6095)

Source: https://www.choosesocial.ph/
Culture Environment Education
Social Enterprise
Development
Poverty
Eradication
Health and
Wellness
Rural
Development Human Rights
Employment
Development and
Skills Training
Entrepreneurship and
Local Business
Development
Social impact groupings of social
enterprises

STUDY OF THE LOCAL ECONOMY
The key areas/parameters for this study include employment and workforce
development, volume and value of production, land utilization, investments in
the form of policies, infrastructure and marketing facilities, etc.
This starts with a good analysis of the Socio-Economic Physical Profile (SEP)
of the province, city, municipality, and the participation of Municipal Agriculture
Officer, Municipal Agrarian Reform Officer, Tourism Officer, representatives
from DTI, TESDA, PESO, DOST, NGO and PO.
The study involves the
assessment of the current
state and growth pattern of
local economy with the end
view of building and
strengthening the economic
activities in a sustainable
manner.

MAJOR SECTORS OF THE LOCAL ECONOMY
1. AGRICULTURE, FISHERY AND FORESTRY
2. COMMERCE AND TRADE
3. INDUSTRY
4. TOURISM
On data requirements please refer to the handout entitled “Data Information
for the Preparation of an Economic Sector Plan” based on the CLUP
Guidebook Volume 2 (2014).

ANALYTICAL
FRAMEWORK ON HOW TO
ANALYZE THE
COMPARATIVE AND
COMPETITIVE
ADVANTAGES

Analytical Framework on How LGUs Can Identify and
Enhance Comparative and Competitive Advantages
•
Analysis of the SEPP
Identify major
economic drivers of
the local economy
Ascertain location
of these major
economic drivers
(spatial dimension)
Do SWOT analysis
Assess needed
infrastructure
support
Determine other
requirements –
investments, financing,
promotion, marketing
Assess the skills of
the workforce; the
level of
entrepreneurial
capability
Analyze economic
policies, rules and
regulations which
are contributory or
hindrance
Ascertain
institutional
mechanisms
• Demographic
• Economic
• Investment climate
• Hard Infrastructure
• Regional and National
information
• to leverage strengths,
• overcome weaknesses,
• exploit opportunities/
economic development trends
• deal with threats
VISION
MISSION
GOALS,
OBJECTIVES
WHO
DOES
WHAT,
WHEN,
WHERE,
HOW
M & E
Agriculture, Commerce and Trade,
Industry, Tourism
AEC/ MTPDP/
REGL DEVT
PLAN/
PROV’L
DEV’T PLAN

STRATEGIES TO IMPROVE AGRICULTURAL
COMPETITIVENESS AND SUSTAINABILITY
1. Improve rural infrastructure and facilities to make
agricultural production more competitive in quality and price
and be climate-resilient through enhanced technical design
of irrigation and drainage systems and facilities, farm-to-
market roads (FMRs), grains drying facilities, etc.

2. Shift from subsistence farming basically for food self-
sufficiency to higher value crop production for export
3. Provide Post-harvest facilities (markets, warehouses, cold
storage, slaughter houses, packaging plants.

4. Link farmers’ produce with institutional buyers such as:
• fast food chains
• supermarkets
• food processors
• other wholesalers/retailers in the food industry

5. Promote environment-friendly and sustainable production
systems that use the farming systems approach, employ good
agriculture/aquaculture practices, promote economic endeavors
such as agri-ecotourism.
• Develop agri-tourism areas

ECONOMIC STRATEGIES TO ENHANCE
COMPETITIVENESS IN TOURISM
• TOURISM
“Tourism is a powerful driver for economic growth, infrastructure
modernization, local area development, and employment
generation.”

STRATEGIES TO ENHANCE
1. Identify outstanding tourism assets for
development and promotion
nature – mountains, highland, lakes, ponds, river and
landscape, marine park, diving spot, other unique land
formation and landscape
History and culture – fort and castle, cathedral and church, garden,
street and townscape, historical road and path, historic remains,
museum, art museum, zoo and botanical garden, aquarium, other
structure and buildings
Industrial tourism – agro-forestry, farm and ranch,
fishery, arts and crafts
Sports and recreational facilities – golf, tennis, cycling
road and area, hiking course, camping ground, nature trail
and path, beach, marina and harbour, leisure land, theme
park, sports complex

1. Identify outstanding tourism assets for
development and promotion
Shopping – shops, shopping mall/area, open air
market, Sunday market, traditional market area,
local specialties and restaurant
Customs and traditions – event and festival, folk
music and dance, local culture and traditions
Special event – exposition, conventions
Health and wellness – medical treatment, spa,
aesthetics

2. Select Priority Tourist Destinations based on
the following criteria:
• Tourist appeal – uniqueness, historical value,
socio-cultural value, natural aesthetic,
• Accessibility – distance, travel time, type of
road, means of transport
• Activities and products
• Facilities and services
Source: DOT

3. Develop Tourism Circuits
– Tourism circuits are tourist destinations to be
included in the tour packages (e.g., half-day city
tour, full day tour, adventure tour, cultural tour).
– Criteria for choosing destinations to be included in the
circuits:
• similar gateway (land, air and sea)
• stage of development
• contiguity
• accessibility
• market demand

PROMOTE SOCIAL ENTERPRENEURSHIP:
Agro-enterprise Development
• The FEP was launched in 2008 in
partnership with the Jollibee
Foundation, the Catholic Relief
Services Philippines and the National
Livelihood Development
Corporation.
• The Catholic Relief Services (CRS)
Philippines promotes market-driven
strategies that facilitate farmers’
active participation in modern
markets, such as: supermarkets, fast
foods, hotels and restaurants, and
institutional caterers.
• The National Livelihood
Development Corporation (NLDC) is
a government corporation mandated
to provide for the credit needs of the
farmers through its accredited
microfinance institutions (MFIs),
such as rural banks, cooperatives,
and non-government organizations
(NGOs).
The FEP experience has demonstrated that by
combining the elements of market, finance and
agro-enterprise clustering, farmers can meet the
volume, quality and timeliness requirements of
institutional buyers.

PROMOTE SOCIAL ENTERPRENEURSHIP:
Agro-enterprise Development
• FEP seeks to help smallholder farmers
to improve their incomes.
• The program provides critical
education and training, expands
economic opportunities for farmers
through improved access to key
institutional markets, such as Jollibee
Foods Corporation (JFC).
• There are three key components:
- Agro-Enterprise Capacity-Building provided by the Catholic Relief
Services (CRS);
- Partnership Management with JGF ensures that FEP’s farmer groups
have access to the resources and technical assistance that they need;
- Advocacy and Promotion in collaboration with academic institutions.

LOCAL EXAMPLES OF SOCIAL
ENTERPRISES
• ECOWEB (Ecosystem Work for Essential Benefits, Inc.
• EcoWEB won the 1st Developmental Social Enterprise Award
(DSEA) 2015, the first time that this award was presented by the
PwC Philippines and the BCY Foundation, which aims to recognize
developing and viable organizations that are committed to a social
objective, and can be multipliers of social progress through their
enterprises. (http://www.dseawards.com/)
• EcoWEB's social enterprise included the EcoHerbs and Ecorganic
(http://www.ecoweb.ph/index.php/products). These two SE's
involve marginal women farmers who cultivated the herbs and
small coconut farmers who produce the virgin coconut oil used in
EcoHerbs. The product is marketed by self-employed vendors and
advertised through the probably oldest marketing strategy - word of
mouth - and the most modern method - the internet.
BUB Coffee Processing
Project Benefitting the IPs in
Iligan

ENTERPRISES
• Don Bosco Multi-Purpose Cooperative – promotes
sustainable agricultural production in rice and bananas; sells
is 2 shops in Davao and in supermarkets across Metro
Manila; exports black, red and brown rice. The Don Bosco-
DA partnership paved the way for the entry of the
cooperative in the rice export market.
Habi is a social enterprise founded under Sosyal Revolution,
Inc. It aims to bring responsible fashion by partnering with
low-income urban communities in the Philippines. Currently,
Habi works with the mothers of the poor communities in
Quezon City - Kawan ni Sto. Niño in Old Balara and Saint Luigi
Oriones Creations in Payatas. The mothers weave the rags
used to make the shoes and are paid an income at three
times above the market price, and also provides additional
skills-based training to the communities. Retail stores are
located in Metro Manila and the Visayas, as well as an online
store providing service to the US.
Source: A Review of Social Enterprise in the Philippines, British Council, 2015

ENTERPRISES
• R2R (Rags2Riches, Inc.) is a for-profit social enterprise
based in Manila, Philippines organized by a group of
young professionals who met the mothers of Payatas
and designed an enterprise model to improve the
quality of their rugs. It creates eco-ethical fashion and
home accessories out of upcycled scrap cloth, organic
materials and indigenous fabrics, and by working with
artisans living in the poor communities across the
country.
Last January, Therese “Reese” Fernandez-Ruiz, its
co-founder, caught the attention of Forbes and was
placed on its annual “30 Under 30” list of social
entrepreneurs, who, according to the magazine, are
leveraging business tools to solve the most pressing
problem of poverty.
Source: - See more at: http://asianjournal.com/aj-magazines/rags2riches-the-philippine-based-social-enterprise-transforms-scraps-into-
designer-accessories/#sthash.RP5V6DyK.dpuf

Promote PPP for Local Economic
Development
• Local government units may enter into joint ventures and such other
cooperative arrangements with the private sector to engage in the delivery of
certain basic services, capability-building and livelihood projects, and to
develop local enterprises designed to improve productivity and income,
diversify agriculture, spur rural industrialization, promote ecological balance,
and enhance the economic and social well-being of the people.
PRIVATE MANAGEMENT OF MALABON
CENTRAL MARKET
PPP Modality: Lease Agreement
Key Results:
Guaranteed net income of 1.5 million per
month for the City
Strengthened the Malabon Central Market
Development Cooperative
LGU savings on other costs: repairs,
utilities, personnel, etc.
Private sector participation in service
delivery
Market operation free from partisan politics
BUILDING THE MANDALUYONG PUBLIC
MARKET
PPP Modality: Build Operate and Transfer
Key Results:
Public market without cost to the city
Gross income of 20M instead of 10M
annual outlay for loan payment
Employment for city residents
Rise of new commercial district
Traffic, flooding, garbage and pollution
problems minimized
Source: DILG

GOOD PRACTICES FROM
THE CITIES

GOOD PRACTICES FROM THE CITIES
Source: ISA, 2015

GOOD PRACTICES FROM THE
CITIES
Source: ISA, 2015

Source: ISA, 2015
GOOD GOVERNANCE leads to
REAL BREAKTHROUGHS

GOOD PRACTICES FROM THE CITIES
Source: ISA, 2015
Cost of Project: Php. 203.00 Million
Source of Funds: LBP and Local Funds
-Construction of different sports facilities, like Olympic size
swimming pool, soccer football field, volleyball courts, tennis
courts, basketball courts, archery field, embankment/land
development, etc.
Dipolog City Sports Complex

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