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Led toolkit

  1. 1. Promoting LED Achieving MDGs Toolkit on Local Economic Development for Resource Cities Dev for ResourceIMPORTANTIMPORTThis is a first draft publication produced purposely for theBalanghai Summit: The LGC + 14 and the MDGs LGC 1412-14 October 2005, Butuan City, Philippinesheld in celebration of World Habitat DayIf you find errors –– may they be typographical, grammatical or whatsoever ––please notify the Canadian Urban Institute Philippines.You may contact us at: Urban Institute Canadian Urban Institute 2F Mary Mart Mall, Valeria Street Iloilo City 5000 Philippines Telfax: +63 33 3367827 Tel. No.: +63 33 3363541 Email: cuiphils@canurb.com
  2. 2. This report was published with funding support from the Canadian International Development Agency
  3. 3. Table of Contents Promoting LED, Achieving MDGs Promo omoting Achie chieving 1 Framework for Local Economic Development Strategic Planning ramework for Dev Strategic 3 Unleashing LED Through Partnership Through Partnership artner 14 Case 1: Local Action on Public-Private Partnership in LEDJumpstarting Local Economic Development Through Dinagyang Festival 20 Case 2: Local Action on Multi-Stakeholder Implementation Groups Multi-Stakeholder Participation in Economic Promotion 22 Case 3: Local Action on Marketing and Promotion Cooperation in Investment and Tourism Promotion 24 Case 4: Local Action on Rural-Urban Links Guimaras-Iloilo City Alliance (GICA) 26 Case 5: Local Action on Investing in Natural Capital Investing in Environmental Initiatives for LED 27 Reducing Poverty, Reaping Progress Po erty Reaping Progress ty, 29 Case 6: Local Action on Organizational Development for LED Provincial Economic Development Office 36 Case 7: Local Action on Attracting Investment Attracting Outside Investment for the Guimaras GIS 38 Case 8: Local Action on Sustainable Tourism Guisi Community-based Heritage Tourism Project 40 Case 9: Local Action on Partnerships in Tourism Public-Private Partnership in Guimaras Tourism Development 42 Case 10: Local Action on ““Buy Local”” CampaignsFarm Marketing Support Through GTIC and Panindahan sa Manggahan 44 About CPPPGUG 46 Toolkit on Local Economic Development for Resource Cities Dev for Resource
  4. 4. Promoting LED, Achieving MDGsP overty and fiscal problems are hampering the ability of national and local governments in achieving Millennium Development Goals (MDG) targets.Therefore, there is a need for a strategy to increase andsustain local revenues for local governments to be able tomeet the MDG requirements.Recognizing the limitations of the national government in financing MDGneeds, the LGUs are left with the responsibility of expanding theirrevenue base and economic resources. Economic developmentstrategies need to be crafted by LGUs, in collaboration with the privatesector and civil society, in order to achieve the targets.Responding to the emerging need to promote LED in the context of rapidurbanization, and the role LED plays in meeting the MDGs, this trainingis proposed to initiate and implement LED interventions through a to them with the passing of the Local Government Code of 1991, whichlocally-owned and -driven strategic planning process. includes economic development. In particular, difficulties are being encountered in efficiently and effectively deliver economic developmentThe training, using the LED manuals developed by UN Habitat, promotes services and support. This is principally due to limited technicalan inclusive, participatory process that integrates strategic planning, capabilities of the municipal staff, inadequate access to informationcommunity participation, sustainability and good decision-making in and know-how, and lack of effective delivery mechanisms to tap thelocal economic development. It also provides key links to other training private sector in local economic development.and implementation opportunities that could assist the local district,city, town or community with economic development. This Toolkit provides the framework for local economic development (LED) adopted by the Canadian Urban Institute in its capacityIn addition to these challenges, the city and the region are also development work in Iloilo City and Guimaras Province under thestruggling to properly manage the full range of responsibilities devolved International Partnership Program for Good Urban Governance. Toolkit on Local Economic Development for Resource Cities Dev for Resource 1
  5. 5. Promoting LED, Achieving MDGsThe Toolkit contains the following sections aside from the Introduction 1. Framework for LED: describes the LED process utilized by Iloilo City and Province of Guimaras in developing and implementing local actions to enhance their local economies. 2. Iloilo City: Building Partnerships for LED. Contains the description of the city’’s economic context, LED process and gains in LED. It also include sample local actions implemented by Iloilo City to build public-private partnerships. 3. Guimaras: Reducing Poverty, Reaping Progress: Contains the descriptions of the provincial economic profile, LED process and gains in LED. It also include sample local actions implemented by the province to develop and promote its key industries. 4. CPPPGUG: In Pursuit of Good Urban Governance: Describes the capacity development project implemented by CUI in Metropolitan Iloilo Development Council, Province of Guimaras and Municipality of Malay in pursuit of good governance. It also describes the mandate and programming of CUI. Toolkit on Local Economic Development for Resource Cities Dev for Resource 2
  6. 6. Promoting LED, Achieving MDGsFramework for Local Economic Development Strategic Planning Dev Promo omotion endeav toLocal Economic Development and Promotion is an endeavor to order tosubstantially increase economic and business activities in order toimpr pro gov (LGU).improve the living conditions within a local government unit (LGU). It is progress,concerned with the accelerating economic progress, attraction ofappropriat opriate inv production markappropriate outside investments, production and marketing of localproducts; commercial enter erprises;products; establishment of commercial and industrial enterprises; anddev entrepreneurship. for concertdevelopment of local entrepreneurship. LED calls for a concer tedeffort various sector ors gov oveffor t of various sectors helping the local governments in the overalldev effort locality.development ef for t of a locality.In the course of capacity development activities under the Canada-PhilippinesPartnership Program for Good Urban Governance (CPPPGUG), we have foundourselves asking the following: How do we get started in LED? What are the steps and tools needed to develop a LED strategy?LED is now recognized as a key component in broader efforts to reduce poverty.There is also an emerging consensus that LED cannot bring about effectivepoverty reduction without incorporating explicit poverty reduction actions.Therefore, a key challenge is to ensure the pursuit of inclusive economicdevelopment that provides for both the promotion of local wealth creation andpoverty reduction; this ensures that those traditionally left out are activeparticipants and have access to opportunities resulting from development.Inclusive means recognizing formal as well as informal economies.In addition to reducing poverty, formalizing the informal economy might form a The question is how we can make LED a reality in our Trousdale, EcoPlan International, Inc. Source: W. communities. Thislong-term goal for health and safety reasons, better public management or requires firmly placing LED within the broader framework of local sustainableincreased revenues through taxation. However, abrupt attempts to regulate the development.informal economy prematurely might lead to more poverty and marginalization.Rather, local authorities might want to consider actions that tolerate and support A strategic approach to LED implies careful consideration of the various trade-the informal economy while they seek to strengthen the skills and resources of offs. It demands the need for harnessing and mobilizing the local human,people engaged in the informal economy. social, financial and natural capital towards the common vision, goals and objectives that the community aspires to achieve. This is possible only when the Toolkit on Local Economic Development for Resource Cities Dev for Resource 3
  7. 7. Promoting LED, Achieving MDGsvarious stakeholders and actors join forces to make a difference in quality of 2. Where do we want to go?life in their cities, towns and settlements 3. How are we going to get there? 4. How do we know when we have arrived?The need for a framework that will guide our capacity development activities tosupport LED was really a big challenge on our Canada-Philippines partnershipinitiatives. We found an answer through a LED framework on strategic planning The LED framework is divided into 4 modules with 10 steps distributed among theproduced by UN Habitat and Vancouver-based Ecoplan International, the idea of 4 modules. Examples are provided in the boxes corresponding to the module orwhich germinated from the earlier work done by EcoPlan International with the steps discussed.Canadian urban Institute. we now? Module 1: Where are we now? Frame ork ramewThe LED Framework Step 1: Getting StartedLocal economic development (LED) is a participatory process in which local Step 2: Stakeholders and Participationpeople from all sectors work together to stimulate local commercial activity, Step 3: Situation Analysis.resulting in a resilient and sustainable economy. It is a way to help createdecent jobs and improve the quality of life for everyone, including the poor and we want to Module 2: Where do we want to go?marginalized. Step 4: VisioningA LED strategy is a process-oriented and non-prescriptive endeavor Step 5: Setting Objectivesincorporating: How we get Module 3: How do we get there? Local values (poverty reduction, basic needs, local jobs, integrating social and environmental values); Step 6: Identifying & Evaluating Strategy Options Economic drivers (value-added resource use, local skills training, local Step 7: Action Planning and Strategy Documentation income retention, regional co-operation); and Step 8: Plan Implementation. Development (the role of structural change, quality of development). Module 4: Have We Arrived? Hav We Arrived?Strategic planning is a systematic decision-making process that focusesattention on important issues and on how to resolve them. Strategic planning Step 9: Monitor and Evaluateprovides a general framework for action: a way to determine priorities, make Step 10: Adjust and Modifywise choices and allocate scarce resources (e.g., time, money, skills) to achieveagreed-upon objectives.Strategic planning for local economic development can be viewed as a series offour basic questions: 1. Where are we now? Toolkit on Local Economic Development for Resource Cities Dev for Resource 4
  8. 8. Promoting LED, Achieving MDGsModule 1: Where are we now?Step 1: Getting Star tedStep Getting Start Step 2: Stakeholders and Step Stakeholder eholders Table 2: Ten Factors for Successful Participation Ten Factors for actor Par articipation articipation Par ticipationTask 1: Get organized, get commitment and Get get 1. Good timing and clear needbuild trust 2. Strong stakeholder groups Participator Approach? articipatory What is a Par ticipator y Approach? 3. Broad-based involvementWithout commitment from other A participatory approach involves the 4. Credibility and openness of processstakeholders, well-coordinated organization inclusion of different stakeholders so thatand respected leadership, a strategic 5. Commitment and/or involvement of high level, visible their views, concerns and issues can beplanning process can stall before it starts. leaders included in the planning process. It is also 6. Support or acquiescence of ’’established’’ authorities or important because it is here that networks,Task 2: Form a core planning team Form team powers partnerships and information sharing occur 7. Overcoming mistrust and skepticism that make better, more practical, strategiesEstablish a core group before the actual possible. Reviewing who should be involvedplanning work begins. This will be the engine 8. Strong leadership of the process in the planning process is an essential firstthat keeps the process moving. 9. Interim success task in creating a successful strategy 10. A shift to a broader concernTask 3: Determine where the ““local”” is in Det processthe LED process How to Incorporate Par ticipation in the Planning Process How to Incorporat Par porate articipation ProcessDefining the ““local”” area is a pragmatic exercise based on common linkages,constraints and common sense (e.g. political jurisdictions at the local There are four key tasks to incorporate participation in the planning process:government level). Task 1: Determine the extent of public involvement and identify stakeholders. Det ext xtent involvement stakeholder eholders.Task 4: Determine organizational capacity and if outside help is needed Det Identify stakeholders and develop a plan for participation. This does not have toThe lead organization needs to determine its own capacity and bring in outside be elaborate, but it should answer key questions and consider the breadth vs.help if needed. depth of participatory planning. It should determine when and how all stakeholders and the general public will be involved.Task 5: Plan the planning process process Task 2: Establish the size and structure of the stakeholder par tnership group. stakeholder partner tnership group.It is important to be clear about the planning scope, planning process, The stakeholder group can also provide legitimacy, profile, hard thinking andobjectives and expected results before getting started. make sure a full range of issues is considered. Often working groups are also formed to support the work of the stakeholder group.Task 6: Define the LED planning question/challenge Define question/challenge Task 3. Establish the procedures and terms of reference of the stakeholder procedures terms reference stakeholderUnderstand the ‘‘triggering event’’ and ask questions that address core partner tnership group. par tnership group.problems rather than symptomatic ones, giving economic developmentplanning more leverage. Toolkit on Local Economic Development for Resource Cities Dev for Resource 5
  9. 9. Promoting LED, Achieving MDGsStep 3: Situation AnalysisStep Table 3: Data needs for understanding a functioning local economy for unders economy for DevWhat is a Situation Analysis for Economic Development? 1. Human and Social Capital a. Organizational and Leadership Capacity: Partnerships, LeadershipThe situation analysis explores business and market relationships as well as Networks (from Step 1)organizational networks within the local area and between the local area, the b. Knowledge and Information: Business, Markets and Knowledge Information:region and the rest of the world. It looks at economic events and economic Economic Data, Competition, Quality of Life,trends. It examines the economic base and how the local economy functions. c. Demographics, Household and Family FamilyThis requires an understanding of local resources, local businesses, what they d. Capacity, Competency and Innovation: Institutional, Capacity, Compepet Innovproduce, where businesses inputs come from, and the marketplace. It looks at Experience; Labor force (statistics and data, gender)the economic past and present of a local area and provides base data to 2. Financial Capitalidentify and prioritize important issues for consideration in future development a. Financial: Services, Access (credit)plans. 3. Natural Capital a. Resources: Primary resource, Resource processHow to Conduct a Situation AnalysisHow to b. Living systems: Quality of life, Aesthetics syst c. Ecosystem Ser vices: Economic support Ecosyst Services:The economic situation analysis involves three key tasks: 4. Physical Physical Capital Task 1: Collect and review research and analysis already completed. a. Technology, Machines, Tools, Factories: Plant, factory and echnology Machines, Tools, Fact hnology, actories: Task 2: Create a local area economic profile. business technology assessment Task 3: Conduct assessments and analyses: b. Built Environment and Infrastructure: Geographic, Buildings Envir vironment Infrastructure: Business and local resident attitude survey (basic issues and Infrastructure (roads, sewer and water utilities analysis including perceived problems and opportunities); Competition and collaboration analysis Economic leakage, markets and supply chain analysis; Gender analysis; Livelihood assessment analysis; and SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats). Toolkit on Local Economic Development for Resource Cities Dev for Resource 6
  10. 10. Promoting LED, Achieving MDGsModule 2: Where do we want to go?Step 4: VisioningStep Example of Vision Exam ampleWhat is in a Vision? AMIGU (Allied Metro Iloilo Guimaras Union) is the agri-tourism capital of Western Visayas composed of highly educated, god-loving healthy familiesThe economic vision begins to answer the question: ““Where do we want to go?”” working together for a progressive economy, self-reliance, and sustainableIt is a snapshot of the desired future. It makes clear the core values and development.principles that are central to what the local area wants to become. The vision isinformed by the current situation and looks to the future to alter the currentinto the desired. Objectives and actions are then based on this vision, therebyconnecting the vision to practical decision-making. Task 3: Collect and group similar ideas.Why develop a vision?Why dev Task 4: Get agreement on themes and have someone from the group ‘‘wordsmith’’ one or two vision statements for approval at later workshops/Visions are an important way to harness the power of the mind. By imagining meetings.an ideal future while considering the current reality, tension is created. Ashuman beings, we respond to this tension with an impulsive desire to close thegap. A clearly articulated vision statement provides a continuous point ofreference to keep closing the gap and keep the process heading in a desirabledirection. As a general expression of values, visioning provides an opportunity Step 5: Setting Objectives Step Setting Objectivesfor the local area to think in broad terms about the future. Developing thevision also provides the opportunity for dialogue, learning, relationship building Objectives? What are Objectives?and awareness raising. Finally, insight from the visioning process supportsdevelopment objectives, the decision-making framework (discussed in Step 5). The four points below discuss objectives: Objectives answer the question: ““What matters?”” and ask: ““What isHow to Develop a Vision for Local Economic DevelopmentHow to Dev for Dev important about local economic development?”” Objectives are the basis for generating and designing strategy options.There are many ways to generate a vision statement, and the five tasks below They act as a checklist, or design criteria, to address local areadescribe one method: values. Objectives clarify directions of preference that can be compared andTask 1: Review the SWOT Analysis and other work done previously. traded off (a little more of this for a little less of that). Objectives provide decision criteria for evaluating strategy options.Task 2: In a workshop setting, with focus groups or through surveys (a goodchance for public participation), ask the following: An objective is formed by converting issues and concerns into a succinct What would you like the local area’’s future to become? statement that describes a direction of preference (more/less) and includes a What are the most important economic aspects of the desired future noun; two examples are: ““Expand Employment Opportunities”” or ““Reduce (e.g., jobs, income, poverty reduction, etc.)? Poverty.”” Identifying a full range of objectives helps to avoid making What is different about your vision of the future from what you see today? unbalanced or poor decisions. Toolkit on Local Economic Development for Resource Cities Dev for Resource 7
  11. 11. Promoting LED, Achieving MDGs Table 4: Examples of Strategic Objectives for Local Economic Exam amples Strat trategic Objectives for Situational Analysis: Dev Development There are areas of economic coordination and cooperation Promote the Reduction of Poverty between Iloilo and Guimaras that should be explored and further Maximize Natural Capital promoted Promote Decent Work Support Existing Local Business Expansion There are information and data gaps that need to be addressed to Promote Economic Stability (critical for small businesses) plan properly and effectively coordinate local economic Promote Business/Investment Attraction development initiatives There is a need for the establishment/coordinated linkages with Local Government Units (LGUs) and other stakeholders for dataHow to Set ObjectivesHow to Set Objectives banking and sharing of informationSetting objectives might take longer than expected. However, here is where There is a lack of information on the presence of inter-Localtime should be spent to ensure that objectives are complete, concise and Government Unit projects and programscontrollable. Well-constructed objectives will not only provide direction fordecision-making but also a framework formonitoring and evaluating how well- chosenactions fulfill the local area’’s vision of thefuture (described in Step 9). The following sixtasks define how to set objectives:Task 1: Identify key issues (concerns,problems, challenges, opportunities).Task 2: Assess issues (distinguish: cause ––effect –– outcome).Task 3: Restate issues as succinct statementsof objective.Task 4: Organize objectives: separate meansfrom ends, actions from objectives.Task 5: Develop SMART indicators ofperformance (Specific, Measurable,Appropriate, Realistic, Time dated).Task 6: Prioritize objectives. Toolkit on Local Economic Development for Resource Cities Dev for Resource 8
  12. 12. Promoting LED, Achieving MDGsModule 3: How do we get there?Step 6: Identifying and Evaluating Strategy OptionsStep Evaluating StrategyHow are strategy options designed?How strategyStrategy options are the heart of strategic planning for LED. A strategy option isan action or group of actions that, when implemented, can help realize thelocal area’’s LED vision and objectives. All the previous steps in the processhave been designed to allow the LED planning group to create good strategyoptions. This is perhaps the most tangible point in the planning process ––where thinkers and doers connect, where specific actions are envisioned andwhere those with the greatestpromise are chosen.Table 5 below provides a list of 31common LED actions that could betaken alone, phased in over time orcombined as strategy option.How are strategy options identified?How strategy identified? Task 1. Generate actions for 1. pursuing priority objectives (see Step 5). Task 2. Refine and organize actions. Task 3. Combine into strategy options, evaluate against LED objectives and improve. Do the strategies promote the local area objectives? Do they require tradeoffs and consensus building? Task 4. Negotiate and redesign the strategies; agree on a strategy Toolkit on Local Economic Development for Resource Cities Dev for Resource 9
  13. 13. Promoting LED, Achieving MDGs Step 7: Action Planning and Step 7: Action Strategy Strategy Documentation Action What is Action Planning? Once a group of actions, known as a strategy option, has been designed and agreed to by the LED planning group, it must be operationalized. It is one thing to get agreement on a broad strategy, quite another to detail it, maintain the commitment and secure the required resources. Action planning is simply a way to clearly establish what must be done, the date by which it will be done, and who will be responsible for doing the work. Action plans need to be ““do-able”” within the existing limitations of time, budgets, administrative capacity and political resources. Good action planning offers a chance to double check the strategy option to make sure the strategy is practical and can be implemented. Specifying tasks allows for clear budgeting and a realistic appraisal of the work ahead. How Action created? How are Action Plans created?Toolkit on Local Economic Development for Resource Cities Dev for Resource 10
  14. 14. Promoting LED, Achieving MDGs Chapter 4: How are we now? This is the strategy and the action plan. ItAn action plan contains a description of the specific tasks and activities represents priority programs and projects for implementation. Here isnecessary to implement the chosen strategy option. The key tasks involved in where coordination of funding sources and partnerships/organizations foraction planning are as follows: economic development are highlighted. Task 1. Clearly understand the tasks and actions involved in the chosen 1. Chapter 5: How do we know when we have arrived? strategy option (Step 6). Task 2. Determine who needs to be involved and specific roles and Finally, the LED strategic planning document should describe the process responsibilities. for evaluation and periodic update. Task 3. Determine time frames, resources, funding and preconditions. Task 4. Identify risks, gaps and weak links in the action plan and how they will be addressed (e.g., actions or tasks in which there is no clear leader, no funding or other key resources identified, capacity limitations). Step 8: Plan Implementation Step Implementation Task 5. Reconfirm commitments of each partner. Task 6. Agree on a coordination mechanism. Following Through ollowing Through Task 7. Agree on a monitoring mechanism (Step 9). 7. At this point of the process, a written Local Economic Development Strategy Document should have been produced. This document should outline commitment of resources and establish a clear path of action. But beware! LEDStrategy Documentation: Preparing the Strategic PlanStrategy Strategic strategies often become derailed here. Developing the plan is not the end of the process; it requires good implementation management.The best LED strategic planning document is brief and easy to use. The LEDstrategic planning document will be unique in content, but will likely contain the Dev Institutionalization and Organizational Developmentsame summary information –– information derived from the Ten Steps ofPlanning Excellence process. A typical LED strategic document will contain the New ways of thinking about LED and utilizing a participatory approach will takefollowing chapters: time to be understood, accepted and routinely applied. Research indicates that the full impact of implementing a LED will also take time, especially if Chapter 1: Introduction institutional adaptations and adjustments are required. Developing new Background information and document organization organizations or adapting existing ones are two possible ways to institutionalize and sustain the LED effort. For example, LED could be institutionalized by Chapter 2: Where are we now? giving an existing staff member responsibility for LED, or by creating a new This provides the overview of the stakeholders and the situation. It is an position within an existing department. Another way is through the analysis of the local economy’’s strengths and weaknesses, and the establishment of a Local Economic Development Agency (LEDA), composed of opportunities and threats, as well as the availability of partners and public and private institutions, representatives of political and economic resources for economic development. spheres, and civil society (see Training Resource Link 6). LEDAs have demonstrated their effectiveness, especially in institutionally poor Chapter 3: Where do we want to go? environments. In institutionally rich environments, some kind of ““officialized”” This contains the final vision and objectives that set the strategic direction LED forum might be more appropriate, ensuring continuity in consultations, for the action plan, which is also included. dialogue, strategic planning as well as monitoring and evaluation. Toolkit on Local Economic Development for Resource Cities Dev for Resource 11
  15. 15. Promoting LED, Achieving MDGs Module 4: Have we arrived?How is institutionalization done?How Step 9: Monitor and Evaluate Step Monitor Evaluat aluateThe following tasks are useful in considering institutionalization: Monitoring is. . . Monitoring Task 1: Strengthen existing institutional structures to improve their Monitoring means to ““observe”” or to ““check performance””. Monitoring Monitoring effectiveness in planning, management, and coordination among different is a continuous process of collecting information using performance sectors; only where necessary, create new institutions to accommodate measures (or indicators) to gauge the process or project. Monitoring special requirements both technical and accepts the design of the strategy measuring progress and managerial –– not covered by existing institutions. performance, and identifies successes or failures as early as possible. Task 2: Change or adjust mandates of existing institutions to integrate new Evaluation is. . . Evaluation functions and roles. Evaluation uses the information from monitoring to analyze the Evaluation Task 3: Identify and task ““anchor”” institutions to take the lead and provide process, programs and projects to determine if there are opportunities a home base for LED activities or phases. for changes to the strategy, programs and projects. Evaluation, like monitoring, should promote learning. In the implementation stage of a Task 4: Link to established policy instruments such as annual budgeting, LED strategy, evaluation is used to determine if the actions are human resource allocation, sectoral work programs, etc meeting the strategic objectives, efficiently, effectively and/or at all. Task 5: Develop skills necessary to support and routinely apply the LED process (information collection, negotiation, facilitation, strategy Why Monitor and Evaluate? Why Monitor Evaluat aluate? formulation, action planning, monitoring and evaluation). By tracking performance, monitoring ensures that limited resources for Task 6: Modify legal and administrative frameworks to enable a procedural economic development can be put to ‘‘““best use’’”” and that negative or framework for smooth and effective functioning of institutions. unintended impacts can be identified and minimized. Furthermore, effective monitoring and evaluation will sound the alarm when internal Task 7: Provide funds to support expenditure and equipment for capacity- 7: and external circumstances in the economic environment have building and sustaining the framework, primarily through public budgetary changed, when key opportunities are being missed, or when provisions or allocations. implementation of a project is no longer effective. Adjustments in action plans, changes in priorities, or a complete refocusing of Task 8: Maintain knowledge support and a learning process, for example, strategic objectives can then be made to ensure the economic through documenting and evaluating lessons of experience and building development plan remains useful over time. Ongoing monitoring collaboration with local research or consulting establishments. and evaluation should result in the gradual evolution and upgrading of the strategic plan, taking the local area closer and closer to its envisioned future. Toolkit on Local Economic Development for Resource Cities Dev for Resource 12
  16. 16. Promoting LED, Achieving MDGsHow to Monitor and Evaluate Project ImplementationHow to Monitor Evaluat Project Implementation aluate Task 1: Prepare the monitoring or evaluation plan and framework: use project objectives and performance measures (Step 5), determine what will be monitored and what information is required and how it will be collected. Task 2: Determine who will be involved. Task 3: Determine when, where, how to monitor and evaluate. Task 4: Determine documentation and reporting protocol.Step 10: Adjust and ModifyStep 10: AdjustThe monitoring and evaluation process is designed to track performance andidentify where and when adjustments in plan implementation at the projectlevel need to be made or where more fundamental changes to the plan visionor objectives might need to occur. Adjustments and modifications should occurthroughout the strategic planning process whenever new information arises ornew priorities for direction or action are identified. And, of course, on a regularbasis (every 5-10 years), the strategy needs to be completely revisited. At thistime, go back to Step One. Toolkit on Local Economic Development for Resource Cities Dev for Resource 13
  17. 17. Promoting LED, Achieving MDGsUnleashing LED Through PartnershipP rogress is not alien to Iloilo City. Even during the pre-Spanish times, it was already a thriving shipbuilding community where traders and Iloilo City Vision: Premier City by 2015 by 201 merchants converge to barter textiles and farm produce with goods fromneighboring islands. The flourishing village impressed the colonizers that it was This Visayan city aims to be more attractive both as amade the seat of the colonial government in this part of the archipelago. In themid-19th century, Iloilo City rose to economic prominence following the opening business and cultural center in the region. The localof its port to world trade and was made a vibrant infrastructure largely because leadership laid out a plan to establish business facilitiesof a strong partnership between the colonial government and private including a stock exchange, convention centers,enterprise. manufacturing facilities, and an interconnected massIt was in 1855 when Isabel II, transport system, while preserving cultural heritage.Queen of Spain, declared open to Source: Iloilo City Public Governance Roadmap, 2005international trade the port ofIloilo. Following a Royal Order, thecolonial government provided Aggravating these problems are its limited land area of only 70.23 squarenecessary improvements to the kilometers and its growing population that increases by 1.93 percent annuallyport to support the full-scale and which was pegged at 366,391 as per 2000 Census. The figure swells to atdevelopment of the Philippine least 100,000 more during daytime, what with workers and clients ofsugar industry. But this is only government and businesses as well as students that descend everyday on thehalf of the story as the other half region’’s administrative, trade and education capital. The ninth most populouslies in the hands of commercial city in the Philippines ranks third in population density.agents of British and American firms. Led by Nicholas Loney, they turned theport of Iloilo into an energetic trading hub which eventually brought unexpected With little elbow room, urban growth and the problems associated with it aredevelopment to the city. spilling over to the adjacent municipalities of Leganes, Oton, Pavia and San Miguel. Agreeing that such can be managed collectively, Iloilo City and the fourBut much like the rest of the urban areas in the Philippines, Iloilo City’’s towns have formed the Metropolitan Iloilo Development Council (MIDC) anddevelopment took place without much reference to plans or infrastructure have identified areas of collaboration along which they based their commoncapacity. As such, the city’’s present spatial pattern is composed of and integrated development plan. Iloilo City, however, will remain as the centeruncoordinated packets of development. Further, efforts to integrate the various of residential, commercial, financial and education activities with the other fourland uses and the necessary infrastructure facilities into a coordinated towns as its satellites.development plan have been futile, as the implementation of land use plansand zoning ordinances have been very lax. Evidently, as Iloilo City continues to grow, its physical, economic and demographic structures change along with it. And in light of the prevailingAs a result, the problems typical of urban or urbanizing areas such as traffic trends in the nation and the rest of the world, there is a need to re-examine thecongestion, pollution, overcrowding, proliferation of informal settlements and role of the city with the respect to the province and the surrounding regions.environmental degradation are turning the image of progress into depressing This case study looks into the prevailing conditions of Iloilo City, its role in thepicture, especially in the city proper area where most of the city’’s economic region’’s economic hierarchy, and how it can refocus its efforts to realizing theactivity takes place. shared vision of becoming a ““Premier City by 2015.”” Toolkit on Local Economic Development for Resource Cities Dev for Resource 14
  18. 18. Promoting LED, Achieving MDGsEconomyEconomy InfrastructureThe economy of Iloilo City is driven by the following sectors: The development of Iloilo’’s role as aTrade and Ser vices Iloilo City’’s economy is dominated by businesses involved Services vices. commercial center isin trade and services. In particular, employment in wholesale and retail trade, buoyed by the city’’sfinance, insurance, real estate and business services top the list. In spite of its transport infrastructurebeing one of the country’’s traditional economic centers, the growth of Iloilo network, which providesCity’’s economy has been relatively sluggish. Classification of businesses by the necessary links withindustry shows that almost 75 percent of the city’’s commercial establishments the local and nationalfall under the category of micro-enterprises, or firms with a capitalization of only markets. The city’’s roadPhP 150,000 and below. The decreasing number of registered business network facilitates theestablishments also points toward a downward trend in investment. transport of agricultural products from theTourism. Iloilo City has great potential surrounding region toas a heritage tourist site due to its other parts of the country. However, traffic congestion is becoming anwealth of historic buildings and colorful increasing problem at the city proper due to the large volume of vehiclesfestivals celebrated to honor the city’’s converging within the small area.patron saints. Over a two-year periodalone, receipts from the tourism The Iloilo City Port Complex is considered the leading trade and commercial hubindustry amounted to close to PhP for Western Visayas, as well as one of the safest natural seaports in the100,000,000. However, insufficient country. Seventy-two foreign vessels and 10,471 domestic vessels docked atinfrastructure facilities, as well as the the port of Iloilo in 2000, all with a gross registered tonnage of 12,076,649lack of maintenance of its heritage sites tons. On the same year, the port of Iloilo registered a passenger traffic figure ofhamper the further development of this 1,933,964, of which 1,003,909 disembarked and 930,055 embarked there.sector. Its airport handles at least 15 flights a day, serving three commercial airlinesIndustr y . Manufacturing in Iloilo City isIndustr try and had a passenger traffic figure of 702,995 in 2001. In the same year, itpractically non-existent when compared to the booming trade and services handled 5,670,565.7 kilos of incoming cargo and 3,793,870.5 kilos ofsector. In the period between 1990 and 1997, the growth of the manufacturing outgoing cargo. With a 2,100 m. x 45 m. runway and a modern terminalsector did not veer too far away from its average of 6.4 percent annually. The equipped with computerized facilities to accommodate flights from key cities insmall number of industries –– primarily agro processing firms –– is also the country, the airport has a total land area of 52,635 sq. m.diminishing, as companies have been moving out to less populated areas. Theabsence of land zoned specifically for industrial uses has also resulted in the The provision of basic utility services in Iloilo City has so far been satisfactory.establishment of factories in incompatible areas. The power sector has been very efficient, with only less than 30 percent of theAgriculture The development of Iloilo City’’s agricultural sector is compromised griculture. urban households having no electrical connections. Problems, however, ariseby the spatial demands of urbanization. Agricultural lands have been reduced during the peak load hours where demand exceeds supply, therefore resultingsignificantly from 1,751 hectares in 1995, to only 987.16 hectares in 1997. In in power interruptions. The water sector, on the other hand, suffers fromaddition, the cost related to irrigating agricultural lands have also limited the insufficient water supply and low water pressure.city’’s investment in this sector. Aquaculture in the city is also on the declinewith the continued degradation of the Iloilo River. The proliferation of squatter Iloilo City is probably among the few cities in the country where there is actuallysettlements along its banks has been identified as the primary source of an oversupply of telephone lines. The combined switching capacity of the localpollution. service providers –– Globelines and the Philippine Long Distance Telephone Co. (PLDT) –– is 72,982. As of 1998, there were still 21, 625 unused lines. Toolkit on Local Economic Development for Resource Cities Dev for Resource 15
  19. 19. Promoting LED, Achieving MDGs Solid waste is also a major problem in Iloilo City where at least 300 tons is Development Strategies Dev Strategies produced daily. Of this volume, only 150 tons is disposed in the city dumpsite, implying that the rest remains uncollected on the streets or worse, disposed of 1. Fast track the development of Iloilo City par ticularly its economic Fast dev particularly in the city’’s waterways, clogging them in the process. pot potential; Air pollution is becoming an increasing problem with the rapid rise in motor Promo omot conserv resources 2. Promote the rehabilitation and conservation of natural resources vehicle ownership. This is particularly an issue in the major thoroughfares located in the city proper where in 1998 the annual average particulate contribute to of the City especially those that contribute to the socio-economic concentrations exceeded the acceptable DENR standards. Water quality and upliftment uplif tment of the people and the land; water supply in the city is also deteriorating due to the indiscriminate disposal of waste coupled with the rapid rate of population growth. expansion for settlement, commercial, 3. Identify the future expansion areas for settlement, commercial, institutional, and industrial build-up; Development Issues and Potentials Dev Po Pro to pro impr pro 4. Provide spatial direction to the provision and improvement of strategic facilities services; basic and strategic infrastructure, facilities and social services; Iloilo City’’s central role in the Western Visayas region is due in large part to its traditional role as a commercial and trade hub for the region. In order to push 5. Guide and encourage increased economic activities and the its further development, however, the city needs to refocus its priorities within inv pot sector ors; location of investments in suitable areas and potential sectors; the parameters of its comparative advantages. A common mistake of many urban areas is the desire to be the ““center of the universe”” by attempting to fulfill the needs of an entire region. Instead, cities and other urbanizing areas Facilitat acilitate by to opportunities 6. Facilitate access by the population to economic oppor tunities should identify their comparative advantages and use these to jumpstart their services; and social ser vices; and progress. 7. Achieve a population distribution that will promote and sustain Achie chiev promo omot Within the context of local economic development, Iloilo City must address the gro dev socio-economic growth and development. following issues: 1. Rationalize the city’’s land uses by allocating scarce land resources along development priorities. Source: Iloilo City Development Strategy, 2005 2. Upgrading infrastructure systems to accommodate population andEnvironmentEnvir vironment industrial growth.Much of Iloilo City’’s environmental problems have to do with drainage and 3. Institute stricter environmental policies to minimize adverse impactswastewater treatment. The city’’s insufficient drainage system, combined with of urbanization on the environment.the relatively flat terrain has caused the periodic flooding in the city, the worstof which took place in 1994 where 80 percent of the city was submerged in 4. Promote the preservation of its heritage sites to enhance its tourismwater. Wastewater treatment, on the other hand, was improved with a ruling by potential.the city and the Department of Environmental and Natural Resources (DENR)requiring all new construction to have wastewater treatment facilities. Stricter 5. Recognizing the city’’s comparative advantages, Iloilo City has a greatmonitoring is practiced in the residential areas where household waste is still potential for enhancing its central role in the region. Among the manydischarged into the drainage systems and canals. options it can pursue are the following: Toolkit on Local Economic Development for Resource Cities Dev for Resource 16
  20. 20. Promoting LED, Achieving MDGs •• Strengthen physical and economic linkages with surrounding The LED process involved the following: municipalities to promote its role as a trading center for the region. This would include improving the transportation links –– road, railroad, etc. –– Examining Local Economic Development (LED) Best Practices. This activity Examining Dev Best between the city and the surrounding municipalities to facilitate the involved sharing of new LED practices, tools and approaches through case transfer of goods. studies, study tour and information materials. Case studies on LED were compiled and made available to stakeholders to give them ideas on what other •• Promote the development of the city as the regional educational center local governments are doing to hurdle the urban growth problems and other by investing in student support facilities, e.g. dormitories, libraries, challenges. Officials availed of study tours in Vancouver, Malaysia and Internet services, etc. Singapore as well as in other metropolitan areas in the Philippines to give them first-hand insights on how leading cities address urbanization. Dev ProcessLocal Economic Development Process Establishing a Local Economic Development (LED) Task Forces and Groups. Establishing Dev Task Forces Groups. This involved the establishment of task forces composed of representativesLocal economic development in Iloilo City aims to nurture the tradition that from the city and national government agencies and private sectorflourished in the port of Iloilo during the mid-19th century when the colonial organizations to act as advisors and technical working group or projectgovernment and the private enterprise forged a strong partnership to boost the management team in order to coordinate the project activities. These includeeconomy. Specifically, it seeks to increase the level of private sector support the following:and investment in the midst of the economicdifficulties currently experienced by the country. a. Iloilo City Convention Bureau b. Iloilo City Tourism CommissioncThere is a prevailing need for attracting private c. Task Force Calle Realdinvestment both domestically and internationally. d. Iloilo City Heritage Conservation CouncileWhile Iloilo City indicated that its business e. Iloilo City Investment Boardenvironment is relatively conducive to attracting f. Task Force Clean and Greenprivate investment, there are also chronic and Undertaking Economic Assessment through Economic ndertaking throughincreasing levels of poverty, unemployment and and Tourism Summits Summits on key issues were done in Tourism Summits.underemployment of the local population, September to December 2001 to review the economicresistance by local producers to diversify, and an programs and projects including analysis of capacity toincreasingly competitive local, national and implement the programs and projects. The result was theexport market for traditional goods and services. summary of city strengths, weaknesses, opportunities and threats. These respectively include, among others, havingThere is also a general lack of awareness within manpower as an important resource; economic instability due to rising poverty;the local and international business investment communities of the availability of telecommunications and transportation facilities; and worseningopportunities that exist in Iloilo City because most local investment promotion traffic situation both the city and province.efforts are somewhat temporary and reactive in nature. Preparing Local Economic Action Agenda and Programs. Based on the results Action Agenda Programs.The implementation of a LED program was seen as a means to: of the SWOT prepared during the summits, identified priority programs and proposals were implemented. These programs included: •• Increase the number of new business in Iloilo City; Tourism. This calls for the organization of annual entrepreneurial spirit fair, •• Increase the awareness about Iloilo City and the neighboring local improvement of infrastructure support services leading to identified tourist and governments as suitable areas for investments; investment areas, establishment of the Iloilo City Convention Bureau, •• Reduce the population living below the poverty threshold; and production of video collateral other promotional materials, establishment of •• Reduce unemployment. one-stop economic and enterprise office, etc. Toolkit on Local Economic Development for Resource Cities Dev for Resource 17
  21. 21. Promoting LED, Achieving MDGs Identifying Appropriate Organizational Structure for LED. One of the Appropriat opriate Structure for mechanisms identified to ensure multi-stakeholder participations in LED was the establishment of an investment promotion center, and by providing technical support to the establishment of the Iloilo City Convention Bureau and Iloilo City Cultural Heritage Conservation Council. This also included the revival of the Iloilo City Tourism Commission. Organizational improvement workshops on marketing and promotion, investment promotion planning, project development and strategic planning were conducted. Developing Local Capacity. Capacity development activities were carried out Dev Capacity. through the local economic development planning, project management, investment promotion, tourism promotion and development. The Iloilo City Convention Bureau (ICCB), for example, was assisted through a workshop in developing a strategic plan to chart the group’’s direction and equip the organization in building its capacity to successfully to fulfill its mandate. Implementing Local Economic Development Projects. A number of projects Implementing Dev Projects. have been implemented which are producing some results (see case studies). Monitoring and Evaluation (on-going). Seeing to it that programs and projects Monitoring Evaluation are continuously assessed for further improvements, key personnel involved inFood security. This calls for launching of education and family planning project development and implementation were trained on monitoring andcampaigns, setting up of research centers, strengthening of cooperatives, and evaluation. Through workshops, stakeholders were then equipped with the toolsimprovements of infrastructures like farm-to-market roads, fishing ports, and process of economic monitoring system.irrigation systems, warehouses and solar dryers.Infrastructure. This calls for strict enforcement of road construction standards, Gainsintroduction of heavy mass transport system, improvement of drainagesystems, dredging of major waterways and port facilities, expansion of the After some years of facilitating the LED process, the following gains wereinternational port, development of alternative ports, development of alternative achieved:water sources, expansion of the water system, strengthening oftelecommunication services, and introduction of alternative power plants. Increased tourist arrivals. Tourist arrivals in Iloilo City increased by 123 percent touris arrivals. ourist in 2004 over the 2003 figure. The tourism industry had benefited from theEnvironment. This calls for actions that would prevent air and water pollution, professional management of Dinagyang Festival. With increasing touristforest denudation and degradation of marine environments, as well as address arrivals, the economic benefits of the festival have trickled down to otherthe worsening solid waste problem like massive information campaigns, strict sectors like transportation, food, retail and even the lowly street traders. Theenforcement of environmental laws, provision of livelihood opportunities to new investments in the tourism industry (two new hotels in Iloilo City) hasmarginal sectors. generated more investments and attracted more visitors and investors to the city.Governance. This calls for political solutions to problems on squatting, traffic,garbage disposal, taxation, sidewalk vendors and underground economy, street Established public-private par tnership. The city has organized the following Established public-privat partner ate tnership.people and lack of coordination among and between local government units functioning multi-stakeholder councils whose tasks are to support the LEDand national government agencies on matters pertaining to economic efforts of the city:development. Toolkit on Local Economic Development for Resource Cities Dev for Resource 18
  22. 22. Promoting LED, Achieving MDGs 1. Iloilo City Convention Bureau The ICCB is the official destination- Conv Bureau. Lessons marketing organization not only for the tourism industry in Iloilo but also in Guimaras. It focuses on promotion and selling Iloilo and Guimaras as a Iloilo City is among the urban centers in the country that has effectively remarkable destination for tourists, convention delegates and business addressed its economic problems through partnerships and collaboration with travelers. the private sector and NGOs. This is well-documented fact as shown in the 2. Iloilo City Tourism Commission This body is tasked for formulate Tourism Commission. ““State of the Philippine Population Report 2004,”” which was released last regulations and policies relative to tourism in the city. month. The report said: ““Iloilo City’’s recognition of the importance of 3. Task Force Calle Real Organized to revive business activities in and Force Real eal. participation and cooperation has helped the city stay afloat amid problems preserve heritage buildings at the city’’s Central Business District (popularly regarding urban growth.”” It also cited the efforts of the alliance that Iloilo City known as Calle Real), this task force planted the seed for heritage built with neighboring towns, which ““proved to be a wise move in facing the conservation in Iloilo City. complicated pressures of urbanization.”” 4. Iloilo City Cultural Heritage Conser vation Council Created in April 2000 Conserv Council. under Ordinance No. 00-054 or the Local Cultural Heritage Conservation Partnership in Iloilo City ““is at the heart of the LED efforts in Iloilo City”” as Ordinance, the council is responsible in advancing cultural heritage ““many of the city’’s economic projects and programs involve the participation of conservation and promotion. It composed of individuals from the arts and various sectors.”” Iloilo City is able to grab the opportunities brought about by culture community. the active participation of the various sectors. Partnership has played a big 5. Iloilo City Investment and Incentive Board. This body is tasked to oversee Investment Incentive Board role in helping it meet the needs of its populace despite limited resources. This investment generation for Iloilo City and the grant of incentives to new strategy of governance has also helped the city address the challenges business locators. associated with urban growth. 6.. Task Force Clean and Green In charge of cleanliness and sanitation Force Green. campaigns and projects, this serves as advisory and monitoring body on solid waste management issues.Attracted funding for projects. As a result of creation of multi-stakeholder ttracted for projects.implementation groups, one of the key groups, the Iloilo City Convention Bureau(ICCB) has generated of PhP 1 million seed money from the Department ofTourism (DOT) to be used to market Iloilo and its cluster under the Visit Iloiloand Guimaras 2006 project.Organized alliances. The Guimaras-Iloilo City Alliance (GICA) was organized tohelp improve the economic competitiveness of the participating LGUs throughjoint undertakings in investment promotion, tourism development andpromotion, planning and coordination of infrastructure support services.Attracted more investments. Iloilo City is becoming more attractive to investors. ttracted investments.After offering a one-year tax holiday for investments between PhP 1 million andPhP 5 million, two-year tax holiday for investments worth P20 million, and three-year tax holiday for companies which have invested P40 million and above, thecity has attracted call centers firms in Metro Manila to invest in the city.Improved deliver y of services. The enhanced private sector participation in cityImpr pro deliver ery services.governance has improved delivery of tourism, heritage conservation, economicpromotion, environmental services Toolkit on Local Economic Development for Resource Cities Dev for Resource 19