COLLABORATING FOR LED
LOCAL GOVERNANCE SUPPORT PROGRAM
FOR LOCAL ECONOMIC DEVELOPMENT
Local Economic Development
LED is a process by which public,
business and non-governmental sector
partners in a locality work collectively to
create better conditions for economic
growth, employment generation and
quality of life for all.
Why Economic Development?
• Increased unemployment due to:
• OFWs coming home in droves due to problems in
places of work
• Thousands of new graduates entering labor market
• Slow recovery in our traditional export markets affecting
our industries
• Income from OFW remittances will be greatly
reduced
• Need to support MSMEs responsible for 92% of
economic growth and 3.3B jobs
• Essential for poverty reduction
Why Local?
• Localized response to the global crisis
• Brings together local actors in the community
in crafting an inclusive LED strategy
• Builds on local assets
• Protective of the Environment
• Pro-poor
• Builds capacity of LGUs and local
communities
LED Framework
Positions alternative mechanisms for
various institutions to facilitate and
support LED. It is a work in progress
and starts with converging national
agencies with LED functions to assist
LGUs and their communities in their
LED initiatives, thereby “A Whole of
Government” approach.
Process for Development
State of LED Report
1. Institutional
mapping of LED
policies &
programs
Paints the “institutional
landscape” of LED in the
Philippines. The report is
focused on two Philippine
economic drivers: 1)
Tourism and 2)
Agriculture/Agribusiness
State of LED: Key Findings
• There are numerous NGA programs and services available to
LGUs
• NGA programs and services are mandates-driven and sectoral in
orientation sometimes not responsive to local needs which often
cut across the agencies jurisdiction and mandates.
• Weak horizontal coordination among national agencies poses a
tremendous challenge to LGUs that have to deal with many
agencies for needed resources
• Poor vertical coordination leaves most LGUs ignorant of many
national programs.
Why Government needs to work together for LED
1. Need to bridge the horizontal divide in government through a
strategic, collaborative and coordinated approach to the delivery of
LED services and support by national level agencies
2. Government has to adjust to the challenges of an era of both fiscal
constraints and entrepreneurial revolution
3. To support LGUs and their stakeholders who are in the forefront of
efforts to bring economic development to rural and often
underserved areas
4. The current two-track delivery system where both NGAs and LGUs
initiate devolved activities independently, has created
intergovernmental coordination issues
5. The LGUs deal and transact with many national programs and
national actors and agencies aside from their constituents
Government as LED Enabler
• Government shape the enabling environment by:
• Implementing LED-related policies
• Enforcing related regulations
• Providing infrastructure and social services
• Providing promotion and facilitation assistance
• Building and maintaining an over-all climate that is
investment-friendly and conducive to business
attraction, retention and expansion
Failure in this Role will degrade the environment for
LED and discourage investors
Effective Government Role in LED:
• Alignment of LED policies and regulatory
frameworks
• Harmonization of mandates and functions of
LED-related institutions
• Coordinated delivery of LED programs and
services
• Holistic approach to Capacity Development of
LED institutions and stakeholders.
National Government Roles in LED
• Creating enabling policies for LED
• Decentralizing resources and responsibilities
• Providing administrative, professional and technical
•
•
•
•
assistance
Supporting vertical coordination of policies and programs
at different government levels
Providing information on the National Development
Strategy and relevant national policies
Offering the assistance of national experts to fill the gaps
in local knowledge
Providing infrastructure, transportation and
communication support
LGU Roles in LED
• Creating stable and business-friendly policies
• Data-gathering and analysis of the local situation
• Mobilizing local stakeholder participation
• Providing good infrastructure
• Improving livability of the place
• Coordinating actions with national agencies and other
local governments
• Overseeing the LED process
• Monitoring & Evaluating LED outcomes
Public Entrepreneurship:
the theoretical underpinning of the
LED Framework
• Practice of innovation, experimentation and creativity in
•
•
•
•
the public domain and in the public interest
Being alert to opportunities
Introduction of technological and organizational
innovations
Exercising good judgment over deployment of resources
under uncertainty – new ways to make or distribute new
products and services
Increasing government’s capacity to respond to issues of
quality of life
THE LED FRAMEWORK
• An innovative “Whole-of-Government” approach to pursuing
LED that provide mechanisms for NGAs, private sector,
academe and NGOs to converge resources, coordinate and
collaborate to assist communities implement LED.
• The LED Framework does not set out a detailed policy and
program to pursue economic growth
• Rather, it emphasizes that government, both national and
local are enablers, complementors and facilitators of LED
and it is private enterprises that are the major producers for
LED.
• It organizes current policies, programs and services into
three windows to ensure comprehensive access to a bundled
programs and services that respond to the LED requirements
of LGUs and communities.
LED Framework
NGAs with LED-related
Mandates
Academe, Private Sector, &
Other Stakeholders
Nat’l Economic Transformation Team
(Harmonization of policies &programs)
Economic Transformation Teams (Regional/Provincial Level)
(Coordinated delivery of LED support to LGUs)
Support to Local LED Initiatives (LED Service Windows)
Entrepreneurial Leadership
Development
Examples:
• Partnership with Academe to form
LED Knowledge Networks
• LED Fundamentals – ELD curriculum
Entrepreneurial Systems
Improvement
Examples:
• Regulatory Simplification / BPLS
streamlining
• One Stop Shops
Enterprise Development
Examples:
• Business Incubation facilities
• Joint Ventures & Other PPP modalities
• Assistance to Social Enterprises
• Investment Promotion Center (inc. website)
• Tourism Information Center& website
• Citizens’ Charter
Results: LED champions with
entrepreneurial mindsets in
the LGU and community
Results: Enhanced LGU
policies, programs and
process for LED
Results: Viable local
enterprises
Achieving Local Economic Development
Harmonized national government
support for LED; business friendly
environment; LED strategies; PPP
and other methodologies
Infrastructure development;
Capital investments
LED
Enterprise
Development
LED leaders that are
vision builders, resultsoriented, risk-takers,
innovative, etc
Entrepreneurial
Leadership
Entrepreneurial
Systems
Improvement
Examples of CCT Integration in the 3 LED Service Windows
• Develop long-term gender responsive and environmentally
sustainable LED education curricula
• Provide economic information (sex-disaggregated)
• Develop local economy profiles incorporating:
• Strategic Environment Assessment (including Climate
Change and Disaster Risk Reduction)
• Gender Assessment
• Conduct industry value chain analyses that integrate GE, ES and
PR considerations
National Economic Transformation Team /
National LED Committee
• National agencies with LED support functions agree to
come together for a horizontal coordination and
shared delivery of LED services
• A strategic policy and managerial platform
• Ensures a more comprehensive LED support program
encompassing the 3 windows
• Will not impinge on NGA mandates
• Effectively links the LGUs to appropriate government
and private agencies with LED programs
Local Economic Transformation Teams (LETTs)
(Regional/Provincial)
• Action teams at the regional and/or provincial levels
• Delivery mechanism for LED support services to LGUs
• Greater efficiency and effectiveness
• Flexible rather than structured
• A strategic, dynamic and synergistic way of working
together where the lead role adjusts in response to the
focal LED initiatives of LGUs
Economic Transformation Teams as
LED support delivery mechanisms
LGU/
Alliance
DTI
DOLE
Business
groups
National LED
Committee/National ETT
(NETT)
LGU
Leagues
(LPP)
Local
ETT(LETT) FOR
AGRIBUISNESS
DILG
Region/Province
Academe
DTI
DA
LGU/
Alliance
DENR
TESDA
LGU/
Alliance
DA
DTI
DOLE
DOT
DILG
National
Private
Sector
(PCCI)
DENR
NEDA
DOLE
TESDA
DOT
LETT FOR
TOURISM
DILG
Region/Provinc
e
TESDA
Acade
me
PIA
DENR
Orientation of
NGAs on the
LED Framework
and ETT
Commitment of
NGAs on ETT
(MOA)
Mapping of NGA
policies,
programs and
assistance to
LGU LED
initiative
Bundling of NGA
assistance to
LGUs
ETT Operational Guide
Delivery of
Bundled
assistance to
LGUs by NGAs