BUSINESS-FRIENDLY AND COMPETITIVE LOCAL GOVERNMENT UNITS Coaching Business-Friendly and Competitive LGUs for LEIPOs 21-22 January 2015 Brentwood Suites, Quezon City

Recent Updates The Philippines placed 52nd out of 144 economies in the prestigious rankings, versus59th in 2013. Since 2010, when the Aquino administration took office, the country has gained 33 places – the largest over the period among all countries studied. “Philippines are among the most improved in the annual survey of 189 economies”

DILG PROGRAM FRAMEWORK Poverty in multiple dimensions reduced and massive quality employment created Societal Outcome Economic Development Human Development and Poverty Reduction Security, Justice and Peace Climate Change Adaptation and Mitigation Good Governance and Anti-corruption KRAs/ Sector Outcomes STRENGTHENED Business-Friendly and Competitive LGUs Environment-Protective, Climate Change Adaptive and Disaster Resilient LGUs CAPACITY State of Local Governance improved DILG Outcome Areas Socially-Protective and Safe LGUs Accountable, Transparent, Participative and Effective Local Governance INTERNAL GOVERNANCE MFO LG Capacity Development, Performance Oversight and Awards/Incentives DILG Programs/Projects/Activities (from Locally-funded and Regular funds) PPAs

BUSINESS-FRIENDLINESS AND COMPETITIVENESS This is a condition where LGUs spur sustainable economic and inclusive growth by engaging the business sector by promoting local trade/business and generating employment. PROGRAM OBJECTIVES Improve capacity of LGUs in engaging business sector, promoting local trade / businesses and generating employment following reforms in their business environment Enhance LGU competitiveness towards increasing sustainable growth and ensuring that growth is inclusive

Desired Outcomes for a Business-Friendly and Competitive LGU Updated and approved CLUP/Zoning Ordinance as well as CDPs/sector plans to guide location and focus of investments Structure leading local economic investment and incentive promotion (eg. LGU LEIPOs w/ capacity to perform their LED roles) Local policies and ordinances for business and investment attraction and retention consistent with national investment policies (Local Investment and Incentives Code, Local Revenue Code, Local Tourism , etc) Streamlined transactional services (BPLS, building/construction permits, occupancy permits, sanitation and fire clearances) LGU Roadmap to attract investments and generate employment (ie LGU Business Plan) Active partnership with business sector (implementation of a PPP project) Basic Infrastructure to support local businesses (roads, power, IT support)

DILG Outcome Area: Business-friendly and competitive LGUs Calls for local governments to work with the private sector and other stakeholders to improve local economic services

“A successful economic development strategy must focus on improving the skills of the area's workforce, reducing the cost of doing business and making available the resources business needs to compete and thrive in today's global economy.” - Rod Blagojevich “Governments across the globe realize the private sector is an important motor of development and job creation. And they realize it’s important to have the right regulations that enable the development of the private sector.” -Rita Ramalho, WB-IF

Local Economic Development Business Friendly and Competitive LGUs Enabling Environment for BFCL - Cap Building of Investment Promotion Office/r (LEIPO) - Formulation of Business Plan - Updating CDP, CLUP, LIIC, LRC - Information Portal (SparkBIz) Simplifying Regulatory Systems Streamlining BPLS Streamlining Building/Occupancy Permits Automation of BPLS and other RS Local Infrastructure Support Provincial Road Management Facility (PRMF) Special Local Road Fund (SLRF) Konkreto at Ayos na Lansangan at Daan Tungo sa Pangkalahatang Kaunlaran KALSADA Workforce Development Skills Training for Accelerated Growth in Local Government (STAG-LG) The BFCL Outcome Area directly contributes to the Local Economic Development. DILG supports and promotes the business-friendly and competitive LGU condition where LGUs spur sustainable economic and inclusive growth (through tourism development) by engaging business sector, promoting local trade/ businesses and generating employment. This can be attained when LGUs bring about an environment where economic development is possible and sustainable, either through the responsible use of their powers provided them by the Local Government Code, or promoting and implementing programs and projects that boost their economic and business potentials such as reforming their current systems for processing businesses and permits or adopting practices that enable them to attract more businesses such as the creation of LEIPOs An LGU is considered business- friendly and competitive if it has: An updated and approved CLUP/ Zoning Ordinance and CDPs/ sector plans to guide location and focus of investments Investment promotion teams (LEIPO/LEDIP) in charge of local economic investment and incentive promotion Policies/ordinances for investment attraction and retention consistent with national investment policies (LIIC and LRC) Streamlined regulatory services (BPLS, building/construction permits, occupancy permits) An LGU Business Plan to attract investments and generate employment Active partnership with local business sector Basic infrastructure support to local businesses (roads, power, water, etc.)

DILG’s LED Program as a Vehicle for Enabling Business Friendliness and Competitiveness: Local Governance Support Program for Local Economic Development (LGSP-LED): In 2008, the Government of Canada entered an endeavor with the Philippines through the Department of the Interior and Local Government (DILG) to spur local economic growth in strategic locations across the country. The Local Governance Support Program for Local Economic Development or LGSP-LED was established and now serves as one of the Department’s key programs that build business-friendly and competitive LGUs, through innovative approaches and interventions supporting DILG and LGUs. LGSP-LED’s efforts supports DILG’s work on BFCL both at the creation of the enabling environment as well as in providing working models on how BFCL are able to deliver results in terms of jobs and investments. The Batch 3 Provinces in Region VI all focused on tourism development must take in all the capacity building efforts of the Department and LGSP-LED in creating local business environment that are conducive to investments and job creation..

LED Information Portal (Sparkbiz) LGSP-LED is implemented through DILGs: BLGD Local Government Academy (LGA) Regional and provincial offices Provincial Offices Private Sector Partners (PCCI, NCC) Approaches Convergence Capacity development LED Information Portal (Sparkbiz)

Convergence (or Economic Transformation Teams) work with other national government agencies and private sector

RETT: Mobilizing National Government Agencies to Support LGUs LGUs/Alliances/TDAs DA DOLE DILG DOT DTI DPWH DENR As validated by the State of LED report, there is no shortage of supply when it comes to LED support programs and services from NGAs. However, the development and delivery of these programs continues to be fragmented and delivered in isolation from each other. This weak coordination among national agencies poses a tremendous challenge to local governments that have to deal with many agencies for needed resources.   A mechanism for greater NGA coordination, synergy and effective delivery of LED programs is needed in order to maximize resources and minimize overlaps and duplications.

Capacity Development LED4LGUs curriculum- a capdev program for LEIPOs and LED team to enhance LED knowledge and skills; delivered through a knowledge network composed of industry and private sector partners, local resource institutions and select LGUs Capacity-building in other LED and BFCL interventions

Establishment of LED INFORMATION PORTAL (SPARKBIZ) http://sparkbiz.ph Bring business and LGUs together by providing up-​to-​date investment information that matters, straight from the LGUs themselves to drive and spark economic development in more places in the country Facilitate generation of info requirement for PCCI’s Most Business-Friendly Awards NCC’s Most Competitive LGUs ----- Meeting Notes (1/22/15 11:45) ----- NCC and PCCI's Awards are major considerationin in the SGLG under the themathic area Business-Friendly and Competitive LGUs

Partnership with the Private Sector Working partnership with the Philippine Chamber of Commerce of the Philippines, and other private groups, and other those working for the private sector such as NCC. Constant dialogues and consultations with private sector groups/organizations Consider recommendations from chambers (e.g. Arangaka Report of JFCC)

Creating Business-friendly LGUs Support LED Local Projects Creating Business-friendly LGUs LGU policies, plans and systems Investment promotion Accessing business support services Destination marketing Building Competitive Tourism Sector Tourism circuit planning Workforce Development Product and market enhancement

Results so far…. Php 6 billion New Investments Since 2008, the local projects in 9 sites have achieved results in terms of improved local economic conditions 2,269 direct jobs Employment New investments Employment Visitor arrivals Increase of 50-90 % Visitor Arrivals

What are the roles and responsibilities of the Local Economic and Investment Promotion Officer (LEIPO)?

“Overcoming poverty is not a task of charity, it is an act of justice “Overcoming poverty is not a task of charity, it is an act of justice. Like Slavery and Apartheid, poverty is not natural. It is man-made and it can be overcome and eradicated by the actions of human beings. Sometimes it falls on a generation to be great. YOU can be that great generation. Let your greatness blossom.” - Nelson Mandela

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