Led toolkit

Promoting LED
Achieving MDGs
Toolkit on Local Economic Development for Resource Cities
Dev for Resource

IMPORTANT
IMPORT

This is a first draft publication produced purposely for the
Balanghai Summit: The LGC + 14 and the MDGs
LGC 14
12-14 October 2005, Butuan City, Philippines
held in celebration of World Habitat Day

If 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

This report was published with funding support from the

Canadian International
Development Agency

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 LED
Jumpstarting 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”” Campaigns
Farm Marketing Support Through GTIC and Panindahan sa Manggahan 44
About CPPPGUG 46

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P
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 and
sustain local revenues for local governments to be able to
meet the MDG requirements.

Recognizing the limitations of the national government in financing MDG
needs, the LGUs are left with the responsibility of expanding their
revenue base and economic resources. Economic development
strategies need to be crafted by LGUs, in collaboration with the private
sector and civil society, in order to achieve the targets.

Responding to the emerging need to promote LED in the context of rapid
urbanization, and the role LED plays in meeting the MDGs, this training
is proposed to initiate and implement LED interventions through a to them with the passing of the Local Government Code of 1991, which
locally-owned and -driven strategic planning process. includes economic development. In particular, difficulties are being
encountered in efficiently and effectively deliver economic development
The training, using the LED manuals developed by UN Habitat, promotes services and support. This is principally due to limited technical
an inclusive, participatory process that integrates strategic planning, capabilities of the municipal staff, inadequate access to information
community participation, sustainability and good decision-making in and know-how, and lack of effective delivery mechanisms to tap the
local 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 capacity
In addition to these challenges, the city and the region are also development work in Iloilo City and Guimaras Province under the
struggling to properly manage the full range of responsibilities devolved International Partnership Program for Good Urban Governance.

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The 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.

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Framework for Local Economic Development Strategic Planning
Dev Promo
omotion endeav to
Local Economic Development and Promotion is an endeavor to
order to
substantially increase economic and business activities in order to
impr
pro gov (LGU).
improve the living conditions within a local government unit (LGU). It is
progress,
concerned with the accelerating economic progress, attraction of
appropriat
opriate inv production mark
appropriate outside investments, production and marketing of local
products; commercial enter
erprises;
products; establishment of commercial and industrial enterprises; and
dev entrepreneurship. for concert
development of local entrepreneurship. LED calls for a concer ted
effort various sector ors gov ov
effor t of various sectors helping the local governments in the overall
dev effort locality.
development ef for t of a locality.

In the course of capacity development activities under the Canada-Philippines
Partnership Program for Good Urban Governance (CPPPGUG), we have found
ourselves 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 effective
poverty reduction without incorporating explicit poverty reduction actions.

Therefore, a key challenge is to ensure the pursuit of inclusive economic
development that provides for both the promotion of local wealth creation and
poverty reduction; this ensures that those traditionally left out are active
participants 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. This
long-term goal for health and safety reasons, better public management or requires firmly placing LED within the broader framework of local sustainable
increased 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

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various 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 to
support LED was really a big challenge on our Canada-Philippines partnership
initiatives. We found an answer through a LED framework on strategic planning The LED framework is divided into 4 modules with 10 steps distributed among the
produced by UN Habitat and Vancouver-based Ecoplan International, the idea of 4 modules. Examples are provided in the boxes corresponding to the module or
which 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
ramew
The LED Framework
Step 1: Getting Started
Local economic development (LED) is a participatory process in which local Step 2: Stakeholders and Participation
people 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 create
decent 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: Visioning
A LED strategy is a process-oriented and non-prescriptive endeavor Step 5: Setting Objectives
incorporating:
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 focuses
attention on important issues and on how to resolve them. Strategic planning Step 9: Monitor and Evaluate
provides a general framework for action: a way to determine priorities, make Step 10: Adjust and Modify
wise choices and allocate scarce resources (e.g., time, money, skills) to achieve
agreed-upon objectives.

Strategic planning for local economic development can be viewed as a series of
four basic questions:
1. Where are we now?

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Module 1: Where are we now?
Step 1: Getting Star ted
Step Getting Start Step 2: Stakeholders and
Step Stakeholder
eholders
Table 2: Ten Factors for Successful Participation
Ten Factors for
actor Par
articipation
articipation
Par ticipation
Task 1: Get organized, get commitment and
Get get 1. Good timing and clear need
build trust 2. Strong stakeholder groups Participator Approach?
articipatory
What is a Par ticipator y Approach?
3. Broad-based involvement
Without commitment from other A participatory approach involves the
4. Credibility and openness of process
stakeholders, well-coordinated organization inclusion of different stakeholders so that
and respected leadership, a strategic 5. Commitment and/or involvement of high level, visible
their views, concerns and issues can be
planning 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, strategies
Establish a core group before the actual possible. Reviewing who should be involved
planning work begins. This will be the engine 8. Strong leadership of the process
in the planning process is an essential first
that keeps the process moving. 9. Interim success task in creating a successful strategy
10. A shift to a broader concern
Task 3: Determine where the ““local”” is in
Det
process
the LED process
How to Incorporate Par ticipation in the Planning Process
How to Incorporat Par
porate articipation Process
Defining 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 to
The 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 and
objectives 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 stakeholder
Understand the ‘‘triggering event’’ and ask questions that address core partner
tnership group.
par tnership group.
problems rather than symptomatic ones, giving economic development
planning more leverage.

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Step 3: Situation Analysis
Step
Table 3: Data needs for understanding a functioning local economy
for unders economy
for Dev
What is a Situation Analysis for Economic Development?
1. Human and Social Capital
a. Organizational and Leadership Capacity: Partnerships,
Leadership
The 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 Family
This requires an understanding of local resources, local businesses, what they
d. Capacity, Competency and Innovation: Institutional,
Capacity, Compepet Innov
produce, 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 Capital
identify and prioritize important issues for consideration in future development
a. Financial: Services, Access (credit)
plans.
3. Natural Capital
a. Resources: Primary resource, Resource process
How to Conduct a Situation Analysis
How 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).

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Module 2: Where do we want to go?
Step 4: Visioning
Step Example of Vision
Exam
ample

What 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 families
The economic vision begins to answer the question: ““Where do we want to go?”” working together for a progressive economy, self-reliance, and sustainable
It 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 is
informed by the current situation and looks to the future to alter the current
into the desired. Objectives and actions are then based on this vision, thereby
connecting 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. As
human beings, we respond to this tension with an impulsive desire to close the
gap. A clearly articulated vision statement provides a continuous point of
reference to keep closing the gap and keep the process heading in a desirable
direction. As a general expression of values, visioning provides an opportunity Step 5: Setting Objectives
Step Setting Objectives
for the local area to think in broad terms about the future. Developing the
vision also provides the opportunity for dialogue, learning, relationship building Objectives?
What are Objectives?
and awareness raising. Finally, insight from the visioning process supports
development objectives, the decision-making framework (discussed in Step 5). The four points below discuss objectives:
Objectives answer the question: ““What matters?”” and ask: ““What is
How to Develop a Vision for Local Economic Development
How 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 area
describe one method: values.
Objectives clarify directions of preference that can be compared and
Task 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 good
chance 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.

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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 data
How to Set Objectives
How to Set Objectives banking and sharing of information

Setting objectives might take longer than expected. However, here is where There is a lack of information on the presence of inter-Local
time should be spent to ensure that objectives are complete, concise and Government Unit projects and programs
controllable. Well-constructed objectives will not only provide direction for
decision-making but also a framework for
monitoring and evaluating how well- chosen
actions fulfill the local area’’s vision of the
future (described in Step 9). The following six
tasks 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 statements
of objective.
Task 4: Organize objectives: separate means
from ends, actions from objectives.
Task 5: Develop SMART indicators of
performance (Specific, Measurable,
Appropriate, Realistic, Time dated).
Task 6: Prioritize objectives.

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Module 3: How do we get there?
Step 6: Identifying and Evaluating Strategy Options
Step Evaluating Strategy

How are strategy options designed?
How strategy

Strategy options are the heart of strategic planning for LED. A strategy option is
an action or group of actions that, when implemented, can help realize the
local area’’s LED vision and objectives. All the previous steps in the process
have been designed to allow the LED planning group to create good strategy
options. This is perhaps the most tangible point in the planning process ––
where thinkers and doers connect, where specific actions are envisioned and
where those with the greatest
promise are chosen.

Table 5 below provides a list of 31
common LED actions that could be
taken alone, phased in over time or
combined 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

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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?

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Chapter 4: How are we now? This is the strategy and the action plan. It
An action plan contains a description of the specific tasks and activities represents priority programs and projects for implementation. Here is
necessary to implement the chosen strategy option. The key tasks involved in where coordination of funding sources and partnerships/organizations for
action 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! LED
Strategy Documentation: Preparing the Strategic Plan
Strategy 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 LED
strategic planning document will be unique in content, but will likely contain the Dev
Institutionalization and Organizational Development
same summary information –– information derived from the Ten Steps of
Planning Excellence process. A typical LED strategic document will contain the New ways of thinking about LED and utilizing a participatory approach will take
following 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.

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Module 4: Have we arrived?
How is institutionalization done?
How Step 9: Monitor and Evaluate
Step Monitor Evaluat
aluate
The 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.

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How to Monitor and Evaluate Project Implementation
How 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 Modify
Step 10: Adjust

The monitoring and evaluation process is designed to track performance and
identify where and when adjustments in plan implementation at the project
level need to be made or where more fundamental changes to the plan vision
or objectives might need to occur. Adjustments and modifications should occur
throughout the strategic planning process whenever new information arises or
new priorities for direction or action are identified. And, of course, on a regular
basis (every 5-10 years), the strategy needs to be completely revisited. At this
time, go back to Step One.

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Unleashing LED Through Partnership
P
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 from
neighboring islands. The flourishing village impressed the colonizers that it was This Visayan city aims to be more attractive both as a
made the seat of the colonial government in this part of the archipelago. In the
mid-19th century, Iloilo City rose to economic prominence following the opening business and cultural center in the region. The local
of its port to world trade and was made a vibrant infrastructure largely because leadership laid out a plan to establish business facilities
of a strong partnership between the colonial government and private including a stock exchange, convention centers,
enterprise.
manufacturing facilities, and an interconnected mass
It was in 1855 when Isabel II, transport system, while preserving cultural heritage.
Queen of Spain, declared open to
Source: Iloilo City Public Governance Roadmap, 2005
international trade the port of
Iloilo. Following a Royal Order, the
colonial government provided Aggravating these problems are its limited land area of only 70.23 square
necessary improvements to the kilometers and its growing population that increases by 1.93 percent annually
port to support the full-scale and which was pegged at 366,391 as per 2000 Census. The figure swells to at
development of the Philippine least 100,000 more during daytime, what with workers and clients of
sugar industry. But this is only government and businesses as well as students that descend everyday on the
half of the story as the other half region’’s administrative, trade and education capital. The ninth most populous
lies 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 the
port of Iloilo into an energetic trading hub which eventually brought unexpected With little elbow room, urban growth and the problems associated with it are
development 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 four
But much like the rest of the urban areas in the Philippines, Iloilo City’’s towns have formed the Metropolitan Iloilo Development Council (MIDC) and
development took place without much reference to plans or infrastructure have identified areas of collaboration along which they based their common
capacity. As such, the city’’s present spatial pattern is composed of and integrated development plan. Iloilo City, however, will remain as the center
uncoordinated packets of development. Further, efforts to integrate the various of residential, commercial, financial and education activities with the other four
land uses and the necessary infrastructure facilities into a coordinated towns as its satellites.
development plan have been futile, as the implementation of land use plans
and 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 prevailing
As 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 the
congestion, 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 the
picture, 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 the
activity takes place. shared vision of becoming a ““Premier City by 2015.””

Dev for Resource 14


Economy
Economy Infrastructure

The economy of Iloilo City is driven by the following sectors: The development of
Iloilo’’s role as a
Trade and Ser vices Iloilo City’’s economy is dominated by businesses involved
Services
vices. commercial center is
in trade and services. In particular, employment in wholesale and retail trade, buoyed by the city’’s
finance, insurance, real estate and business services top the list. In spite of its transport infrastructure
being one of the country’’s traditional economic centers, the growth of Iloilo network, which provides
City’’s economy has been relatively sluggish. Classification of businesses by the necessary links with
industry shows that almost 75 percent of the city’’s commercial establishments the local and national
fall under the category of micro-enterprises, or firms with a capitalization of only markets. The city’’s road
PhP 150,000 and below. The decreasing number of registered business network facilitates the
establishments also points toward a downward trend in investment. transport of agricultural
products from the
Tourism. Iloilo City has great potential surrounding region to
as a heritage tourist site due to its other parts of the country. However, traffic congestion is becoming an
wealth of historic buildings and colorful increasing problem at the city proper due to the large volume of vehicles
festivals celebrated to honor the city’’s converging within the small area.
patron saints. Over a two-year period
alone, receipts from the tourism The Iloilo City Port Complex is considered the leading trade and commercial hub
industry amounted to close to PhP for Western Visayas, as well as one of the safest natural seaports in the
100,000,000. However, insufficient country. Seventy-two foreign vessels and 10,471 domestic vessels docked at
infrastructure facilities, as well as the the port of Iloilo in 2000, all with a gross registered tonnage of 12,076,649
lack of maintenance of its heritage sites tons. On the same year, the port of Iloilo registered a passenger traffic figure of
hamper 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 airlines
Industr y . Manufacturing in Iloilo City is
Industr
try
and had a passenger traffic figure of 702,995 in 2001. In the same year, it
practically 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 of
sector. 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 terminal
sector 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 in
small 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. The
absence 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 the
Agriculture The development of Iloilo City’’s agricultural sector is compromised
griculture. urban households having no electrical connections. Problems, however, arise
by the spatial demands of urbanization. Agricultural lands have been reduced during the peak load hours where demand exceeds supply, therefore resulting
significantly 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 from
addition, 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 decline
with 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 actually
settlements along its banks has been identified as the primary source of an oversupply of telephone lines. The combined switching capacity of the local
pollution. service providers –– Globelines and the Philippine Long Distance Telephone Co.
(PLDT) –– is 72,982. As of 1998, there were still 21, 625 unused lines.

Dev for Resource 15


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 and
Environment
Envir
vironment industrial growth.

Much of Iloilo City’’s environmental problems have to do with drainage and 3. Institute stricter environmental policies to minimize adverse impacts
wastewater 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 worst
of 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 tourism
water. 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 great
monitoring is practiced in the residential areas where household waste is still potential for enhancing its central role in the region. Among the many
discharged into the drainage systems and canals. options it can pursue are the following:

Dev for Resource 16


•• 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 Process
Local 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 representatives
Local economic development in Iloilo City aims to nurture the tradition that from the city and national government agencies and private sector
flourished in the port of Iloilo during the mid-19th century when the colonial organizations to act as advisors and technical working group or project
government and the private enterprise forged a strong partnership to boost the management team in order to coordinate the project activities. These include
economy. Specifically, it seeks to increase the level of private sector support the following:
and investment in the midst of the economic
difficulties currently experienced by the country. a. Iloilo City Convention Bureau
b. Iloilo City Tourism Commissionc
There is a prevailing need for attracting private c. Task Force Calle Reald
investment both domestically and internationally. d. Iloilo City Heritage Conservation Councile
While Iloilo City indicated that its business e. Iloilo City Investment Board
environment is relatively conducive to attracting f. Task Force Clean and Green
private investment, there are also chronic and
Undertaking Economic Assessment through Economic
ndertaking through
increasing 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 economic
resistance by local producers to diversify, and an
programs and projects including analysis of capacity to
increasingly competitive local, national and
implement the programs and projects. The result was the
export market for traditional goods and services.
summary of city strengths, weaknesses, opportunities and
threats. These respectively include, among others, having
There 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 worsening
opportunities 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.

Dev for Resource 17


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 in
Food security. This calls for launching of education and family planning project development and implementation were trained on monitoring and
campaigns, setting up of research centers, strengthening of cooperatives, and evaluation. Through workshops, stakeholders were then equipped with the tools
improvements 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, Gains
introduction of heavy mass transport system, improvement of drainage
systems, dredging of major waterways and port facilities, expansion of the After some years of facilitating the LED process, the following gains were
international port, development of alternative ports, development of alternative achieved:
water sources, expansion of the water system, strengthening of
telecommunication 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 the
Environment. This calls for actions that would prevent air and water pollution, professional management of Dinagyang Festival. With increasing tourist
forest denudation and degradation of marine environments, as well as address arrivals, the economic benefits of the festival have trickled down to other
the worsening solid waste problem like massive information campaigns, strict sectors like transportation, food, retail and even the lowly street traders. The
enforcement of environmental laws, provision of livelihood opportunities to new investments in the tourism industry (two new hotels in Iloilo City) has
marginal 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 LED
and national government agencies on matters pertaining to economic efforts of the city:
development.

Dev for Resource 18


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 of
Tourism (DOT) to be used to market Iloilo and its cluster under the Visit Iloilo
and Guimaras 2006 project.

Organized alliances. The Guimaras-Iloilo City Alliance (GICA) was organized to
help improve the economic competitiveness of the participating LGUs through
joint undertakings in investment promotion, tourism development and
promotion, 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 and
PhP 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, the
city has attracted call centers firms in Metro Manila to invest in the city.

Improved deliver y of services. The enhanced private sector participation in city
Impr
pro deliver
ery services.
governance has improved delivery of tourism, heritage conservation, economic
promotion, environmental services

Dev for Resource 19

Case 1: Local Action on Public-Private Partnership in LED
Jumpstarting Local Economic Development Through Dinagyang Festival

I
loilo City’’s Dinagyang Festival started in 1968 as a religious celebration at
the San Jose Parish Church to mark the feast of the Santo Niño every third
week of January. In 1973, the Iloilo City took over the festival’’s management
from the religious groups and opted to institutionalize it as a tourist attraction.
Since then, it has become Iloilo’’s foremost tourism product.

Dinagyang, which literally means ‘‘’’to make merry,’’’’ is a two-day citywide party.
The main attraction is the ati-ati contest where soot-covered dancers,
presented as ati warriors, gyrate their bodies in choreographed steps as the
drums rumble. The colorful and exciting prancing of ati warriors is punctuated
with shouts of ‘‘’’Viva Señor Niño!’’’’ and yells of ‘‘’’Hala Bira!’’’’ as they raise spears
and shields. The contest will be held on Sunday, the last of the two-day festival
highlight.

Yearly, the city government allocates a substantial amount for the festival but
there had been no effort to account the financial donations, giving rise to
doubts that some officials made a killing out of the contributions. Moreover,
tourist arrivals were not desirable because the festival was not well promoted.
Tourists who come to witness become frustrated because the presentation
lacked focus and failed to showcase what is uniquely an Ilonggo culture.
In 1988, the city government tapped the private sector’’s help in managing the
festival. The Iloilo Dinagyang Foundation was then organized to work hand in
hand with the city government. Since then, the festival has evolved into what is
Project
The Project
truly an Ilonggo cultural show and its management has become a success story
on government-private sector partnership.
The Dinagyang Festival is envisioned to live up to its name as the premier
festival of the country, involving the whole community –– both the public and
From 1988-2001, the city government still had some control in the
private sectors working together. It shall remain focused on its religious color ––
management of the festival. But in 2002, the foundation totally managed it in
a celebration in honor of the Child Jesus. It shall continue to help attract
behalf of the city government. Financial contributions to the festival’’s hosting
tourists and investors to Iloilo City and Province.
were then properly accounted. Donations even exceeded what were spent in
holding the festival, giving the foundation revenues to ensure the continuity of
The objectives of the project is to:
its programs.
1. To preserve and promote cultural heritage.
In 2003, at least PhP 3.573 million were generated from private donations, 2. To increase tourist arrivals.
while government donation was only PhP 1.1 million that includes PhP 750,000 3. To generate income for the tourism industry and other sectors such as
from the Iloilo City government, PhP 250,000 from the Iloilo provincial transportation and cottage industries.
government, and PhP 100,000 from the Department of Tourism. 4. To attract business to invest in the tourism industry and other fields.

Dev for Resource 20

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