Local Economic Development in Visayas

The German-Philippine Programme to Strengthen the Private Sector

Overview

Cooperation on an equal footing, open and regular communication processes, transparent decisions, staff continuity, intensive on-site consultancy, and systematic dissemination of on-site tested local economic development approaches are the ingredients of the recipe for success in the region of Visayas.

Background

At the beginning of the economic support programme in 2004, the cities and municipalities in the Philippines and also on the middle island group of Visayas were affected by a very distinctive bureaucracy, a lack of reforms, misguiding incentives, and market distortions. These were the result of interventionist regulatory and funding policies as well as a lack of capacities and a lack of management competence in the conception and implementation of political reforms. The situation was additionally intensified by a weak participation of the private sector (chambers, associations) in the public-private dialogue.

Objectives

The German-Philippine programme to strengthen the private sector made it its goal to improve the economic framework. In addition to supporting the development of a modern advancement strategy for micro, small, and medium size enterprises (MSME) at national level and the support of individual sectors along the entire value chain, it secured approaches for the local economic development in the cities and municipalities of Visayas.

Activities

The programme ran a good nine years from mid-2003 until the end of 2012 and was divided in three phases. In the first phase different pilot measures were carried out in three provinces with several partners to support development approaches for a new private sector. Phase two was marked by focus and integration: based on experience through versatile pilot measures, focus was put on the most promising approaches which were conducted by only one partner, the Department of Trade of Industries (DTI). The programme was extended in all three regions and 16 provinces in the region of Visayas. Taking into account the Philippine "Gender and Development Strategy" it was systematically ensured that men and women could benefit equally from these measures. The implementation was accompanied by a jointly developed DTI effect-oriented monitoring. The findings were discussed regularly in the regions and were used to assess target achievements or concept adjustments. The already high direct responsibility of DTI regional and provincial management and local authorities were further strengthened. The exchange of positive experiences was promoted at a national, regional, and local level. In phase three the programme played an important role in raising awareness and mobilizing the DTI for "green economic development" in order to increase competition for regional MSME and on a national level. Furthermore, the partner DTI expanded self-directed the very successful local economic development in the regions of Luzon and Mindanao; the enhancement of value chains was supported by the national programme with JICA funds.

Effects

A study of the University of the Philippines, Tacloban City, revealed that 17 of the 24 intensely examined (from a total of 84 funded) cities and municipalities improved their index of local competiveness in contrast to the conditions prior to the implementation of the programme interventions. A total of 306 entrepreneurs (including 52% women) were interviewed from all 16 provinces of the region of Visayas. Out of 231 survey respondents (76%) confirmed the positive contribution of the new MSME strategies to the general competitive climate. 16 of the examined 24 cities and municipalities (2/3) registered a significant increase of new investments.

The institutionalization of development approaches at DTI and the national MSME development plan as well as the authorities ensure sustainability. Due to the success and increased tax revenues, cities and municipalities are now able and willing to provide funding for local economic development and to continue measures independently.

Conclusions

The success of the programme "Support of the Private Sector" is mainly based on the ownership of the partner DTI. Cooperation on an equal footing, open and regular communication processes, taking the positions and priorities of the partner seriously, transparent decisions, continuity, accessibilities and proximity – all play an important role. In the programme region, DTI is also characterized by a high staff continuity. The joint offices at four locations (three regions and national level) and the intensive on-site consultation in 16 provinces of Visayas emphasized the close cooperation. In phase 1 and at the beginning of phase 2, the project had become involved in an orchestrated search and experimentation process, leading from joint on-site testing of different developing approaches in three pilot provinces to further adaption and implementation in the whole region of the programme and finally to nation-wide application. This approach substantially contributed to the programme’s success.

Further Information

Promotion of Green Economic Development (ProGED)

Published: 21/07/2014

Contact

Anita Benassi
GIZ development advisor at the Department of Trade and Industry, Cebu, Philippines
anita.benassi(at)giz.de

Klaus Peter Berkemeyer
GIZ development advisor at DTI Head Office, Manila, Philippines
klauspeter.berkemeyer(at)giz.de

Images

Categories: Local economic development Start-up promotion Green Urban Economy Fostering innovation SME promotion
Regions: Asia The Philippines Visaya-Region

Location

Related Good Practices

Related events

Top