Working Group on Decentralization and Local Governance
Sub-Theme 2
Enhancing Competitiveness
for Inclusive Growth
Strategic Directions to Competitive Economy
Improving Transaction Flows and Reducing
Costs
Accelerating Infrastructure Development
Strengthening the Development of Industries
with high impact potential
(SMEs, tourism, agribusiness, mining, IT-BPO)
Providing for Ecological Integrity
Creating Effective Access to Financing
2
Figure : Ranking on the Ease of Doing Business Among Asian Countries
Source: Doing Business 2008
Figure: Ranking on the Number of Procedures to Start a Business Among Asian Countries
(Source: Doing Business database)
Figure : Ranking on the Cost to Start a Business Among Asian Countries
(Source: Doing Business database)
Infrastructure bottlenecks
• Critical infrastructure = roads, power, transport, water
• Philippines underinvests in physical infrastructure; ave
rage spending is 2% of GDP and this share has been
declining in the last 10 years
• inefficient ground transport infrastructure facilities
that increases the cost of moving goods and people
• absence of modern international gateway airport that
restricts tourism, trade and investment
• power sector is unreliable and expensive. Electricity
prices in the country are among the highest in the
country
• Poor quality of living
• Ecological integrity implies providing for good
quality of living
• healthy and clean environment attracts more
investments (tourism).
• Healthy and clean environment impacts on
health and productivity (competitiveness of
human resources)
Critical Role of LGUs
• LGUs provide the support systems for
investments through the ff:
- permits and licensing
- provision/implementation of incentives
- physical planning and zoning
- national and local road network (incl.
transport planning and implementation)
- enforcement of environmental laws
Key Policy Issues and Proposed Agenda
1. Improve transaction flows and costs
 Streamlining bureaucratic procedures and reduce
processing time
 Institutionalize e-governance
Proposed Policy Agenda
−Upscale BPLS
−Set up one stop shops for business facilitation
Key Policy Issues and Proposed Agenda
2. Development of Industries with High Impact
 Providing consistent and predictable investment
policy environment with national government
Proposed Agenda
−Harmonize local investment code with Omnibus Investment Code
−Integration of designated special economic zones in the Comprehensive
Development Plans (CDPs)
−Lead formulation of National Tourism Development Plan to harmonize with
local tourism development plans
−Review of the Philippine Mining Act and harmonize with local development
plans
−Amend LGC to support national investment codes
Key Policy Issues and Proposed Agenda
2. Development of Industries with High Impact
 Encouraging diversification and entrepreneurship in
agriculture
Proposed Agenda:
−Expand Sustainable Upland Development (SUD)
model
−Provide innovative market linkages (e.g. Food
Terminals, Bagsakan Centers)
−Support Agrarian reform communities
Key Policy Issues and Proposed Agenda
3. Infrastructure Development
 Pursuing infrastructure initiatives through PPP
Proposed Agenda
−Develop PPP guidelines for LGUs
−Capacity building for PPP team
Key Policy Issues and Proposed Agenda
3. Infrastructure Development
 Pursuing reforms in local infrastructure development
and management
Proposed Agenda
− Regional or metropolitan cluster for road network
−Support development of Comprehensive and Integrated
Infrastructure Plan
−Improve local road construction through competitive
procurement processes
−Adopt quality management systems (ISO standards)
Key Policy Issues and Proposed Agenda
4. Quality of Living
 Encouraging investment in solid waste and
sanitation
Proposed Agenda
- Strengthen PPP in waste management
Key Policy Issues and Proposed Agenda
4. Quality of living
 Enforcing environmental controls
Proposed Agenda
-Incorporate sustainability practices and disaster risk
management standards in CLUPS/zoning
-Improve national-local interface by allowing NGA
representatives to participate in LDC deliberations
- Create metropolitan or regional scale management
(clustering) for flood management, sanitation,SWM
Priority LGU Policy Issues
• Streamlining the bureaucracy
• Improving coordination: national and local,
- Investment Codes, Investment incentives
- Tourism Plans, Mineral Action Plan
- Infrastructure plans
- Master planning for environmental concerns
(flood mgt, SWM, sanitation)
• PPP
Thank you