LGSP-LED Support to MSMEs and Improving the Business Environment at the Local Level

Local Governance Support Program for Local Economic DevelopmentMarch 19, 2012

Growing Local EconomiesInnovation. Collaboration. Local Action.

LGSP-LED PLANNED RESULTS

NATIONAL COMPONENT

National ComponentIncreased capacity of DILG and participating NGAs to harmonize policies and coordinate programs in support of sustainable LED

EXPECTED RESULT OUTPUTS AS OF MARCH 2012 PLANS FOR 2012-2013DILG capacity on LED policy development strengthened thru “Learning by Doing”

Policies Developed:• State of LED and LED Support

Framework; Executive Order on a convergent approach to pursuing LED submitted to Office of the President – calls for an organization of Economic Transformation Teams (ETTs)

• 2 Joint Memo Circulars signed (Local Investments and Incentive Code (LIIC )and Local Revenue Code (LRC); Guides prepared/supported: Formulation of the LIIC, Updating of the LRC; Review of the LRC, PPP for LGUs

• Roadmap for LGUs in Promoting Organic Agriculture

• Draft Joint Memo Circular on LGU Roles in Tourism

• Advocacy and Capacity Development for the LED Support Framework (whole-of-government approach)

• Study impact of select national and local regulations on local business climate

• Develop and test prototype measure of economic growth for an LGU as an alternative to GDP

• Secretariat support the Local Investment Reform Sub Working Group

Enhanced DILG capacity in LED policy development

EXPECTED RESULT OUPUTS AS OF MARCH 2012

PLANS FOR 2012-2013

Bundled LED services and resources provided to support LED initiatives of participating LGUs/Alliances

• Memorandum of Agreement between the National Convergence Initiative NCI (DA-DAR-DENR) and DILG towards convergence for sustainable rural development• Convened ETTs in Batch 1

sites and facilitated the matching and bundling of services and resources to support LGUs/Alliances

• Operationalize MOA through Joint administrative orders, convene regional focal persons to plan and undertake cooperative projects• Support a national

convergence mechanism for Tourism• Convene RETTs/PETTs and

support bundling of LED services and resources in Batch 2 sites

Bundled LED services and resources for LED

EXPECTED RESULT OUTPUTS AS OF MARCH 2012

PLANS FOR 2012-2013

Better information on LED trends, opportunities and practices provided to participating LGUs/Alliances

• 1 National and 3 Local forums to share knowledge on LED• LED Information Program

(LIP Concept and Systems Development ongoing)• BPLS Helpdesk operated

by LGA and accessed by DTI/DILG BPLS coaches• Developed LED4LGUs

Curriculum consisting of LED Fundamentals and LED Application modules• Initiated academe-

industry links

• Knowledge sharing through LED forums and innovative media• Enhance LIP and promote its use

by Batch 2 sites and other LGUs• Support capacity development

activities for LEIPOs and others using LED4LGUs Curriculum and guides• Prepare a capacity development

program for DILG/other partners and develop LED Resource Pool to ensure sustainability• Develop tools, manuals, guides

and other KPs on LED• Design LED Innovation Awards

Better LED Information for LGUs/Alliances

LOCAL COMPONENT

LGSP-LEDBatch 1 Project Sites(Sept 2009 to Mar 2012)

One Pangasinan Alliance of LGUs (1 city, 8 municipalities)

Province of Guimaras (5 municipalities)

Bohol IAD-V (8 municipalities)

DDPKaRoMa Growth Corridor (2 cities, 4 municipalities)

• Develop local leaders (champions) for LED• Improve LGU systems and policies for LED• Strengthen LGU structures for supporting local enterprises

1. Strengthening the local business environment to encourage new investments and retention/expansion of local businesses.

1. Strengthening the local business environment to encourage new investments and retention/expansion of local businesses.

Technical assistance and training to:• Improve product quality and operational efficiency• Enhance enterprise management capabilities• Organize and link MSMEs (producers) to markets

Organic Rice, Cassava Agribusiness, Mango Agribusiness, Community-based tourism, Ecotourism

Organic Rice, Cassava Agribusiness, Mango Agribusiness, Community-based tourism, Ecotourism

Production and Productivity

Production and Productivity

Processing and Value Adding

Processing and Value Adding

Marketing and Distribution

Marketing and DistributionValue Chain Approach in supporting

MSMEs for Local Economic DevelopmentValue Chain Approach in supporting

MSMEs for Local Economic Development

2. Technical assistance, training, and institutional support to empower enterprises along the industry value chain.2. Technical assistance, training, and institutional support to empower enterprises along the industry value chain.

Organic Rice, Cassava Agribusiness, Mango Agribusiness, Community-based Rural Tourism, Ecotourism

Organic Rice, Cassava Agribusiness, Mango Agribusiness, Community-based Rural Tourism, Ecotourism

Production and Productivity

Production and Productivity

Processing and Value Adding

Processing and Value Adding

Marketing and Distribution

Marketing and Distribution

• Develop local leaders (champions) for LED• Improve LGU systems and policies for LED• Strengthen LGU structures for supporting local enterprises

Technical assistance and training to:• Improve product quality and operational efficiency• Enhance enterprise management capabilities• Organize and link MSMEs (producers) to markets

LGSP-LED Activities in Batch 1 LGUs/Alliances

Business-Friendly and Competitive LGUs

Enabling DynamicEnterprises and Decent Jobs

• Training and coaching LGU leaders on LED principles, process and best practices

• Streamlining BPLS• Review of Local Revenue Codes

and Local Investment and Incentive Codes

• Organizational strengthening for investment promotion and LED facilitation

• Etc.

• Value Chain Analysis of priority economic sectors

• Development and enhancement of enterprise business plans/models

• Training to enhance operational and enterprise management skills

• TA to prepare pre-feasibility studies and investment proposals for priority projects

• Market linkage• Etc.

Strategies for Sustaining the LED Initiatives

Strengthen LGU Capabilities in Investment Promotion and LED

Facilitation/Support

Strengthen LGU Capabilities in Investment Promotion and LED

Facilitation/Support

Local Academe-Industry Linkages

Local Academe-Industry Linkages

Partnering with private investors and associations

Partnering with private investors and associations

Facilitate Provincial Government support

for LED Initiatives

Link LED Initiatives to convergence of Nat’l

Government Agencies

Economic Transformation Team

Economic Transformation Team

Organic Rice, Cassava Agribusiness, Mango Agribusiness, Community-based Rural Tourism, Ecotourism

Organic Rice, Cassava Agribusiness, Mango Agribusiness, Community-based Rural Tourism, Ecotourism

Production and Productivity

Production and Productivity

Processing and Value Adding

Processing and Value Adding

Marketing and Distribution

Marketing and Distribution

LGSP-LEDBatch 2 Project Sites(July 2011 to Dec 2013)

• Organize and build the capacity of Batch 2 LGUs/Alliances LED Teams (using the LED4LGUs Curriculum)• Support the development of local

economic profiles and value chain studies, streamlining of their BPLS, and prioritization of their LED initiatives• Provide assistance in accessing

NGA support through convergence efforts, such as Local Economic Transformation Teams

Core LED Teams @

LED4

LGUsTraining

Core LED Teams @

LED4

LGUsTraining

Local Economic Profiling

Local Economic Profiling

Industry AnalysisIndustry Analysis

LED Strategy

LED Strategy

Priority ProjectsPriority Projects

TA and training for Quick WinsTA and training for Quick Wins

Pre Feasibility Studies and Investment

packaging for Strategic Projects

Pre Feasibility Studies and Investment

packaging for Strategic Projects

LGSP-LED Local

Project Proposal

LGSP-LED Local

Project Proposal

July Aug Sept Oct Nov Dec January 2012 … July Aug Sept Oct Nov Dec January 2012 …

Accessing bundled LED services and resourcesAccessing bundled LED services and resources

Batch 2 LGUs/Alliances

Batch 2 Local Projects are made up of LED initiatives that address the constraints and/or maximize the opportunities for improving the competitiveness of their respective Tourism Value Chains, including strengthening of the

tourism enterprises along those chains.

Marketing and Promotion of Province or

LGU/Alliance

Marketing of Priority Circuit or Destination

Area

Marketing of Priority Circuit or Destination

Area

Transport Services to

and from the Province or

LGU/ Alliance, as

well as within the Priority Circuit or

Destination Area

Product Development for Competitive Tourism

Enterprises (Higher Quality Facilities, Products, and Human Resources) within the Priority

Circuit or Destination Area

Sustainable Development of Attraction Sites in the Priority

Circuit or Destination Area (Investment Promotion for

Facilities & Small Infra)

Product Development for Competitive Tourism

Enterprises (Higher Quality Facilities, Products, and Human Resources) within the Priority

Circuit or Destination Area

Sustainable Development of Attraction Sites in the Priority

Circuit or Destination Area (Investment Promotion for

Facilities & Small Infra)

Transport Services to

and from the Province or

LGU/ Alliance, as

well as within the Priority Circuit or

Destination Area

Enabling Business Environment for Better Marketing

Local Leadership Development towards Business-Friendly and Competitive LGUs; Strengthening of Tourism Sector Institutions

Inbound Transport

AccommF&B

Ancillary

AttractionsActivities

Events

Outbound Transport

TOURISM VALUE CHAIN

Planned TA Towards Creating Business Friendly and Competitive Batch 2 LGUs/Alliances

(April 2012 to March 2013)