Led toolkit

Promoting LEDAchieving MDGs

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IMPORIMPORIMPORIMPORIMPORTTTTTANTANTANTANTANT

This is a first draft publication produced purposely for theBalanghai Summit: The LBalanghai Summit: The LBalanghai Summit: The LBalanghai Summit: The LBalanghai Summit: The LGC + 1GC + 1GC + 1GC + 1GC + 14 and the MDGs4 and the MDGs4 and the MDGs4 and the MDGs4 and the MDGs12-14 October 2005, Butuan City, Philippinesheld 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:

Canadian UCanadian UCanadian UCanadian UCanadian Urban Institutrban Institutrban Institutrban Institutrban Instituteeeee2F Mary Mart Mall, Valeria StreetIloilo City 5000 PhilippinesTelfax: +63 33 3367827Tel. No.: +63 33 3363541Email: [email protected]

This report was published with funding support from the

Canadian InternationalDevelopment Agency

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TTTTTable of Contentsable of Contentsable of Contentsable of Contentsable of ContentsPrPrPrPrPromoomoomoomoomoting LED, Ating LED, Ating LED, Ating LED, Ating LED, Achiechiechiechiechieving MDGsving MDGsving MDGsving MDGsving MDGs

FFFFFramerameramerameramewwwwwororororork fk fk fk fk for Local Economic Deor Local Economic Deor Local Economic Deor Local Economic Deor Local Economic Devvvvvelopment Stratelopment Stratelopment Stratelopment Stratelopment Strategic Planningegic Planningegic Planningegic Planningegic Planning

UUUUUnleashing LED Thrnleashing LED Thrnleashing LED Thrnleashing LED Thrnleashing LED Through Pough Pough Pough Pough Pararararartnertnertnertnertnershipshipshipshipship

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

Case 2: Local Action on Multi-Stakeholder Implementation GroupsMulti-Stakeholder Participation in Economic Promotion

Case 3: Local Action on Marketing and PromotionCooperation in Investment and Tourism Promotion

Case 4: Local Action on Rural-Urban LinksGuimaras-Iloilo City Alliance (GICA)

Case 5: Local Action on Investing in Natural CapitalInvesting in Environmental Initiatives for LED

RRRRReducing Peducing Peducing Peducing Peducing Pooooovvvvvererererertytytytyty, R, R, R, R, Reaping Preaping Preaping Preaping Preaping Progressogressogressogressogress

Case 6: Local Action on Organizational Development for LEDProvincial Economic Development Office

Case 7: Local Action on Attracting InvestmentAttracting Outside Investment for the Guimaras GIS

Case 8: Local Action on Sustainable TourismGuisi Community-based Heritage Tourism Project

Case 9: Local Action on Partnerships in TourismPublic-Private Partnership in Guimaras Tourism Development

Case 10: Local Action on �“Buy Local�” CampaignsFarm Marketing Support Through GTIC and Panindahan sa Manggahan

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TTTTToolkit on Local Economic Deoolkit on Local Economic Deoolkit on Local Economic Deoolkit on Local Economic Deoolkit on Local Economic Devvvvvelopment felopment felopment felopment felopment for Ror Ror Ror Ror Resource Citiesesource Citiesesource Citiesesource Citiesesource Cities 1 1 1 1 1

Poverty and fiscal problems are hampering the ability ofnational and local governments in achievingMillennium 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 alocally-owned and -driven strategic planning process.

The training, using the LED manuals developed by UN Habitat, promotesan inclusive, participatory process that integrates strategic planning,community participation, sustainability and good decision-making inlocal economic development. It also provides key links to other trainingand implementation opportunities that could assist the local district,city, town or community with economic development.

In addition to these challenges, the city and the region are alsostruggling to properly manage the full range of responsibilities devolved

Promoting LED, Achieving MDGs

to them with the passing of the Local Government Code of 1991, whichincludes economic development. In particular, difficulties are beingencountered in efficiently and effectively deliver economic developmentservices and support. This is principally due to limited technicalcapabilities of the municipal staff, inadequate access to informationand know-how, and lack of effective delivery mechanisms to tap theprivate sector in local economic development.

This Toolkit provides the framework for local economic development(LED) adopted by the Canadian Urban Institute in its capacitydevelopment work in Iloilo City and Guimaras Province under theInternational 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 IloiloCity and Province of Guimaras in developing and implementinglocal actions to enhance their local economies.

2. Iloilo City: Building Partnerships for LED. Contains thedescription of the city�’s economic context, LED process andgains in LED. It also include sample local actions implementedby Iloilo City to build public-private partnerships.

3. Guimaras: Reducing Poverty, Reaping Progress: Contains thedescriptions of the provincial economic profile, LED processand gains in LED. It also include sample local actionsimplemented by the province to develop and promote its keyindustries.

4. CPPPGUG: In Pursuit of Good Urban Governance: Describesthe capacity development project implemented by CUI inMetropolitan Iloilo Development Council, Province of Guimarasand Municipality of Malay in pursuit of good governance. It alsodescribes the mandate and programming of CUI.



Framework for Local Economic Development Strategic PlanningFramework for Local Economic Development Strategic PlanningFramework for Local Economic Development Strategic PlanningFramework for Local Economic Development Strategic PlanningFramework for Local Economic Development Strategic PlanningLocal Economic DeLocal Economic DeLocal Economic DeLocal Economic DeLocal Economic Devvvvvelopment and Prelopment and Prelopment and Prelopment and Prelopment and Promoomoomoomoomotion is an endeation is an endeation is an endeation is an endeation is an endeavvvvvor tor tor tor tor tooooosubstantially increase economic and business activities in orsubstantially increase economic and business activities in orsubstantially increase economic and business activities in orsubstantially increase economic and business activities in orsubstantially increase economic and business activities in order tder tder tder tder toooooimimimimimprprprprprooooovvvvve the living conditions within a local goe the living conditions within a local goe the living conditions within a local goe the living conditions within a local goe the living conditions within a local govvvvvernment unit (Lernment unit (Lernment unit (Lernment unit (Lernment unit (LGU). It isGU). It isGU). It isGU). It isGU). It isconcerned with the accelerating economic prconcerned with the accelerating economic prconcerned with the accelerating economic prconcerned with the accelerating economic prconcerned with the accelerating economic progress, attraction ofogress, attraction ofogress, attraction ofogress, attraction ofogress, attraction ofapprapprapprapprappropriatopriatopriatopriatopriate outside ine outside ine outside ine outside ine outside invvvvvestments, prestments, prestments, prestments, prestments, production and maroduction and maroduction and maroduction and maroduction and markkkkkeeeeeting of localting of localting of localting of localting of localprprprprproducts; establishment of commeroducts; establishment of commeroducts; establishment of commeroducts; establishment of commeroducts; establishment of commercial and industrial entcial and industrial entcial and industrial entcial and industrial entcial and industrial enterererererprises; andprises; andprises; andprises; andprises; anddededededevvvvvelopment of local entrepreneurelopment of local entrepreneurelopment of local entrepreneurelopment of local entrepreneurelopment of local entrepreneurship. LED calls fship. LED calls fship. LED calls fship. LED calls fship. LED calls for a conceror a conceror a conceror a conceror a concertttttedededededefefefefeffffffororororort of vt of vt of vt of vt of various sectarious sectarious sectarious sectarious sectororororors helping the local gos helping the local gos helping the local gos helping the local gos helping the local govvvvvernments in the oernments in the oernments in the oernments in the oernments in the ovvvvveralleralleralleralleralldededededevvvvvelopment efelopment efelopment efelopment efelopment effffffororororort of a localityt of a localityt of a localityt of a localityt 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 along-term goal for health and safety reasons, better public management orincreased revenues through taxation. However, abrupt attempts to regulate theinformal economy prematurely might lead to more poverty and marginalization.Rather, local authorities might want to consider actions that tolerate and supportthe informal economy while they seek to strengthen the skills and resources ofpeople engaged in the informal economy.

The question is how we can make LED a reality in our communities. Thisrequires firmly placing LED within the broader framework of local sustainabledevelopment.

A strategic approach to LED implies careful consideration of the various trade-offs. It demands the need for harnessing and mobilizing the local human,social, financial and natural capital towards the common vision, goals andobjectives that the community aspires to achieve. This is possible only when the

Source: W. Trousdale, EcoPlan International, Inc.



various stakeholders and actors join forces to make a difference in quality oflife in their cities, towns and settlements

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 planningproduced by UN Habitat and Vancouver-based Ecoplan International, the idea ofwhich germinated from the earlier work done by EcoPlan International with theCanadian urban Institute.

The LED FThe LED FThe LED FThe LED FThe LED Framerameramerameramewwwwworororororkkkkk

Local economic development (LED) is a participatory process in which localpeople from all sectors work together to stimulate local commercial activity,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 andmarginalized.

A LED strategy is a process-oriented and non-prescriptive endeavorincorporating:

Local values (poverty reduction, basic needs, local jobs, integratingsocial and environmental values);Economic drivers (value-added resource use, local skills training, localincome retention, regional co-operation); andDevelopment (the role of structural change, quality of development).

Strategic planning is a systematic decision-making process that focusesattention on important issues and on how to resolve them. Strategic planningprovides a general framework for action: a way to determine priorities, makewise 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?

2. Where do we want to go?3. How are we going to get there?4. How do we know when we have arrived?

The LED framework is divided into 4 modules with 10 steps distributed among the4 modules. Examples are provided in the boxes corresponding to the module orsteps discussed.

Module 1: Where are wModule 1: Where are wModule 1: Where are wModule 1: Where are wModule 1: Where are we noe noe noe noe now?w?w?w?w?

Step 1: Getting StartedStep 2: Stakeholders and ParticipationStep 3: Situation Analysis.

Module 2: Where do wModule 2: Where do wModule 2: Where do wModule 2: Where do wModule 2: Where do we we we we we want tant tant tant tant to go?o go?o go?o go?o go?

Step 4: VisioningStep 5: Setting Objectives

Module 3: HoModule 3: HoModule 3: HoModule 3: HoModule 3: How do ww do ww do ww do ww do we gee gee gee gee get there?t there?t there?t there?t there?

Step 6: Identifying & Evaluating Strategy OptionsStep 7: Action Planning and Strategy DocumentationStep 8: Plan Implementation.

Module 4: HaModule 4: HaModule 4: HaModule 4: HaModule 4: Havvvvve We We We We We Arrive Arrive Arrive Arrive Arrived?ed?ed?ed?ed?

Step 9: Monitor and EvaluateStep 10: Adjust and Modify



Module 1: Where are we now?

TTTTTable 2: Table 2: Table 2: Table 2: Table 2: Ten Fen Fen Fen Fen Factactactactactororororors fs fs fs fs for Successful Por Successful Por Successful Por Successful Por Successful Parararararticipationticipationticipationticipationticipation1. Good timing and clear need2. Strong stakeholder groups3. Broad-based involvement4. Credibility and openness of process5. Commitment and/or involvement of high level, visibleleaders6. Support or acquiescence of �’established�’ authorities orpowers7. Overcoming mistrust and skepticism8. Strong leadership of the process9. Interim success10. A shift to a broader concern

StStStStStep 1: Geep 1: Geep 1: Geep 1: Geep 1: Getting Startting Startting Startting Startting Startttttededededed

TTTTTask 1: Geask 1: Geask 1: Geask 1: Geask 1: Get organized, get organized, get organized, get organized, get organized, get commitment andt commitment andt commitment andt commitment andt commitment andbuild trustbuild trustbuild trustbuild trustbuild trust

Without commitment from otherstakeholders, well-coordinated organizationand respected leadership, a strategicplanning process can stall before it starts.

TTTTTask 2: Fask 2: Fask 2: Fask 2: Fask 2: Form a core planning torm a core planning torm a core planning torm a core planning torm a core planning teameameameameam

Establish a core group before the actualplanning work begins. This will be the enginethat keeps the process moving.

TTTTTask 3: Deask 3: Deask 3: Deask 3: Deask 3: Detttttermine where the �“local�” is inermine where the �“local�” is inermine where the �“local�” is inermine where the �“local�” is inermine where the �“local�” is inthe LED prthe LED prthe LED prthe LED prthe LED processocessocessocessocess

Defining the �“local�” area is a pragmatic exercise based on common linkages,constraints and common sense (e.g. political jurisdictions at the localgovernment level).

TTTTTask 4: Deask 4: Deask 4: Deask 4: Deask 4: Detttttermine organizational capacity and if outside help is neededermine organizational capacity and if outside help is neededermine organizational capacity and if outside help is neededermine organizational capacity and if outside help is neededermine organizational capacity and if outside help is needed

The lead organization needs to determine its own capacity and bring in outsidehelp if needed.

TTTTTask 5: Plan the planning prask 5: Plan the planning prask 5: Plan the planning prask 5: Plan the planning prask 5: Plan the planning processocessocessocessocess

It is important to be clear about the planning scope, planning process,objectives and expected results before getting started.

TTTTTask 6: Defask 6: Defask 6: Defask 6: Defask 6: Define the LED planning qine the LED planning qine the LED planning qine the LED planning qine the LED planning question/challengeuestion/challengeuestion/challengeuestion/challengeuestion/challenge

Understand the �‘triggering event�’ and ask questions that address coreproblems rather than symptomatic ones, giving economic developmentplanning more leverage.

StStStStStep 2: Stakep 2: Stakep 2: Stakep 2: Stakep 2: Stakeholdereholdereholdereholdereholders ands ands ands ands andPPPPParararararticipationticipationticipationticipationticipation

What is a PWhat is a PWhat is a PWhat is a PWhat is a Parararararticipatticipatticipatticipatticipatororororory Appry Appry Appry Appry Approach?oach?oach?oach?oach?

A participatory approach involves theinclusion of different stakeholders so thattheir views, concerns and issues can beincluded in the planning process. It is alsoimportant because it is here that networks,partnerships and information sharing occurthat make better, more practical, strategiespossible. Reviewing who should be involvedin the planning process is an essential firsttask in creating a successful strategy

HoHoHoHoHow tw tw tw tw to Incoro Incoro Incoro Incoro Incorporatporatporatporatporate Pe Pe Pe Pe Parararararticipation in the Planning Prticipation in the Planning Prticipation in the Planning Prticipation in the Planning Prticipation in the Planning Processocessocessocessocess

There are four key tasks to incorporate participation in the planning process:

TTTTTask 1: Deask 1: Deask 1: Deask 1: Deask 1: Detttttermine the eermine the eermine the eermine the eermine the extxtxtxtxtent of public inent of public inent of public inent of public inent of public invvvvvolvolvolvolvolvement and identify stakement and identify stakement and identify stakement and identify stakement and identify stakeholdereholdereholdereholdereholders.s.s.s.s.

Identify stakeholders and develop a plan for participation. This does not have tobe elaborate, but it should answer key questions and consider the breadth vs.depth of participatory planning. It should determine when and how allstakeholders and the general public will be involved.

TTTTTask 2: Establish the size and structure of the stakask 2: Establish the size and structure of the stakask 2: Establish the size and structure of the stakask 2: Establish the size and structure of the stakask 2: Establish the size and structure of the stakeholder pareholder pareholder pareholder pareholder partnertnertnertnertnership grship grship grship grship group.oup.oup.oup.oup.The stakeholder group can also provide legitimacy, profile, hard thinking andmake sure a full range of issues is considered. Often working groups are alsoformed to support the work of the stakeholder group.

TTTTTask 3. Establish the prask 3. Establish the prask 3. Establish the prask 3. Establish the prask 3. Establish the procedures and tocedures and tocedures and tocedures and tocedures and terms of referms of referms of referms of referms of reference of the stakerence of the stakerence of the stakerence of the stakerence of the stakeholdereholdereholdereholdereholderparparparparpartnertnertnertnertnership grship grship grship grship group.oup.oup.oup.oup.



TTTTTable 3: Data needs fable 3: Data needs fable 3: Data needs fable 3: Data needs fable 3: Data needs for underor underor underor underor underssssstanding a functioning local economtanding a functioning local economtanding a functioning local economtanding a functioning local economtanding a functioning local economyyyyy

1.1.1.1.1. Human and Social CapitalHuman and Social CapitalHuman and Social CapitalHuman and Social CapitalHuman and Social Capitala.a.a.a.a. Organizational and LeaderOrganizational and LeaderOrganizational and LeaderOrganizational and LeaderOrganizational and Leadership Capacity: ship Capacity: ship Capacity: ship Capacity: ship Capacity: Partnerships,

Networks (from Step 1)b.b.b.b.b. KnoKnoKnoKnoKnowledge and Infwledge and Infwledge and Infwledge and Infwledge and Information: ormation: ormation: ormation: ormation: Business, Markets and

Economic Data, Competition, Quality of Life,c.c.c.c.c. Demographics, Household and FDemographics, Household and FDemographics, Household and FDemographics, Household and FDemographics, Household and Familyamilyamilyamilyamilyd.d.d.d.d. CapacityCapacityCapacityCapacityCapacity, Com, Com, Com, Com, Compepepepepetttttency and Innoency and Innoency and Innoency and Innoency and Innovvvvvation: ation: ation: ation: ation: Institutional,

Experience; Labor force (statistics and data, gender)2.2.2.2.2. Financial CapitalFinancial CapitalFinancial CapitalFinancial CapitalFinancial Capital

a.a.a.a.a. Financial: Financial: Financial: Financial: Financial: Services, Access (credit)3.3.3.3.3. NNNNNatural Capitalatural Capitalatural Capitalatural Capitalatural Capital

a.a.a.a.a. RRRRResources: esources: esources: esources: esources: Primary resource, Resource processb.b.b.b.b. Living sysLiving sysLiving sysLiving sysLiving systttttems: ems: ems: ems: ems: Quality of life, Aestheticsc.c.c.c.c. EcosysEcosysEcosysEcosysEcosystttttem Serem Serem Serem Serem Services: vices: vices: vices: vices: Economic support

4.4.4.4.4. PhPhPhPhPhysical Capitalysical Capitalysical Capitalysical Capitalysical Capitala.a.a.a.a. TTTTTececececechnologyhnologyhnologyhnologyhnology, Mac, Mac, Mac, Mac, Machines, Thines, Thines, Thines, Thines, Tools, Fools, Fools, Fools, Fools, Factactactactactories: ories: ories: ories: ories: Plant, factory and

business technology assessmentb.b.b.b.b. Built EnBuilt EnBuilt EnBuilt EnBuilt Envirvirvirvirvironment and Infrasonment and Infrasonment and Infrasonment and Infrasonment and Infrastructure: tructure: tructure: tructure: tructure: Geographic, Buildings

and Infrastructure (roads, sewer and water utilities

StStStStStep 3: Situation Analysisep 3: Situation Analysisep 3: Situation Analysisep 3: Situation Analysisep 3: Situation Analysis

What is a Situation Analysis fWhat is a Situation Analysis fWhat is a Situation Analysis fWhat is a Situation Analysis fWhat is a Situation Analysis for Economic Deor Economic Deor Economic Deor Economic Deor Economic Devvvvvelopment?elopment?elopment?elopment?elopment?

The situation analysis explores business and market relationships as well asorganizational networks within the local area and between the local area, theregion and the rest of the world. It looks at economic events and economictrends. It examines the economic base and how the local economy functions.This requires an understanding of local resources, local businesses, what theyproduce, where businesses inputs come from, and the marketplace. It looks atthe economic past and present of a local area and provides base data toidentify and prioritize important issues for consideration in future developmentplans.

HoHoHoHoHow tw tw tw tw to Conduct a Situation Analysiso Conduct a Situation Analysiso Conduct a Situation Analysiso Conduct a Situation Analysiso Conduct a Situation Analysis

The economic situation analysis involves three key tasks:TTTTTask 1: ask 1: ask 1: ask 1: ask 1: Collect and review research and analysis already completed.TTTTTask 2: ask 2: ask 2: ask 2: ask 2: Create a local area economic profile.TTTTTask 3: ask 3: ask 3: ask 3: ask 3: Conduct assessments and analyses:

Business and local resident attitude survey (basic issuesanalysis including perceived problems and opportunities);Competition and collaboration analysisEconomic leakage, markets and supply chain analysis;Gender analysis;Livelihood assessment analysis; andSWOT Analysis (Strengths, Weaknesses, Opportunities,Threats).



Module 2: Where do we want to go?

ExExExExExamamamamample of Visionple of Visionple of Visionple of Visionple of Vision

AMIGU (Allied Metro Iloilo Guimaras Union) is the agri-tourism capital ofWestern Visayas composed of highly educated, god-loving healthy familiesworking together for a progressive economy, self-reliance, and sustainabledevelopment.

StStStStStep 4: Visioningep 4: Visioningep 4: Visioningep 4: Visioningep 4: Visioning

What is in a Vision?What is in a Vision?What is in a Vision?What is in a Vision?What is in a Vision?

The economic vision begins to answer the question: �“Where do we want to go?�”It is a snapshot of the desired future. It makes clear the core values andprinciples 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.

WhWhWhWhWhy dey dey dey dey devvvvvelop a vision?elop a vision?elop a vision?elop a vision?elop a vision?

Visions are an important way to harness the power of the mind. By imaginingan 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 opportunityfor the local area to think in broad terms about the future. Developing thevision also provides the opportunity for dialogue, learning, relationship buildingand awareness raising. Finally, insight from the visioning process supportsdevelopment objectives, the decision-making framework (discussed in Step 5).

HoHoHoHoHow tw tw tw tw to Deo Deo Deo Deo Devvvvvelop a Vision felop a Vision felop a Vision felop a Vision felop a Vision for Local Economic Deor Local Economic Deor Local Economic Deor Local Economic Deor Local Economic Devvvvvelopmentelopmentelopmentelopmentelopment

There are many ways to generate a vision statement, and the five tasks belowdescribe one method:

TTTTTask 1: ask 1: ask 1: ask 1: ask 1: Review the SWOT Analysis and other work done previously.

TTTTTask 2: ask 2: ask 2: ask 2: ask 2: In a workshop setting, with focus groups or through surveys (a goodchance for public participation), ask the following:

What would you like the local area�’s future to become?What are the most important economic aspects of the desired future

(e.g., jobs, income, poverty reduction, etc.)?What is different about your vision of the future from what you see today?

TTTTTask 3: ask 3: ask 3: ask 3: ask 3: Collect and group similar ideas.

TTTTTask 4: ask 4: ask 4: ask 4: ask 4: Get agreement on themes and have someone from the group�‘wordsmith�’ one or two vision statements for approval at later workshops/meetings.

StStStStStep 5: Seep 5: Seep 5: Seep 5: Seep 5: Setting Objectivtting Objectivtting Objectivtting Objectivtting Objectiveseseseses

What are ObjectivWhat are ObjectivWhat are ObjectivWhat are ObjectivWhat are Objectives?es?es?es?es?

The four points below discuss objectives:Objectives answer the question: �“What matters?�” and ask: �“What isimportant about local economic development?�”

Objectives are the basis for generating and designing strategy options.They act as a checklist, or design criteria, to address local areavalues.

Objectives clarify directions of preference that can be compared andtraded off (a little more of this for a little less of that).

Objectives provide decision criteria for evaluating strategy options.

An objective is formed by converting issues and concerns into a succinctstatement that describes a direction of preference (more/less) and includes anoun; two examples are: �“Expand Employment Opportunities�” or �“ReducePoverty.�” Identifying a full range of objectives helps to avoid makingunbalanced or poor decisions.



HoHoHoHoHow tw tw tw tw to Seo Seo Seo Seo Set Objectivt Objectivt Objectivt Objectivt Objectiveseseseses

Setting objectives might take longer than expected. However, here is wheretime should be spent to ensure that objectives are complete, concise andcontrollable. 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:

TTTTTask 1: ask 1: ask 1: ask 1: ask 1: Identify key issues (concerns,problems, challenges, opportunities).TTTTTask 2: ask 2: ask 2: ask 2: ask 2: Assess issues (distinguish: cause �–effect �– outcome).TTTTTask 3: ask 3: ask 3: ask 3: ask 3: Restate issues as succinct statementsof objective.TTTTTask 4: ask 4: ask 4: ask 4: ask 4: Organize objectives: separate meansfrom ends, actions from objectives.TTTTTask 5: ask 5: ask 5: ask 5: ask 5: Develop SMART indicators ofperformance (Specific, Measurable,Appropriate, Realistic, Time dated).TTTTTask 6: ask 6: ask 6: ask 6: ask 6: Prioritize objectives.

TTTTTable 4: Exable 4: Exable 4: Exable 4: Exable 4: Examamamamamples of Sples of Sples of Sples of Sples of Strattrattrattrattrategic Objectivegic Objectivegic Objectivegic Objectivegic Objectives fes fes fes fes for Local Economicor Local Economicor Local Economicor Local Economicor Local EconomicDeDeDeDeDevvvvvelopmentelopmentelopmentelopmentelopment

Promote the Reduction of PovertyMaximize Natural CapitalPromote Decent WorkSupport Existing Local Business ExpansionPromote Economic Stability (critical for small businesses)Promote Business/Investment Attraction

Situational Analysis:Situational Analysis:Situational Analysis:Situational Analysis:Situational Analysis:

There are areas of economic coordination and cooperationbetween Iloilo and Guimaras that should be explored and furtherpromoted

There are information and data gaps that need to be addressed toplan properly and effectively coordinate local economicdevelopment initiatives

There is a need for the establishment/coordinated linkages withLocal Government Units (LGUs) and other stakeholders for databanking and sharing of information

There is a lack of information on the presence of inter-LocalGovernment Unit projects and programs



Module 3: How do we get there?

StStStStStep 6: Identifying and Evep 6: Identifying and Evep 6: Identifying and Evep 6: Identifying and Evep 6: Identifying and Evaluating Strataluating Strataluating Strataluating Strataluating Strategy Optionsegy Optionsegy Optionsegy Optionsegy Options

HoHoHoHoHow are stratw are stratw are stratw are stratw are strategy options designed?egy options designed?egy options designed?egy options designed?egy options designed?

Strategy 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.

HoHoHoHoHow are stratw are stratw are stratw are stratw are strategy options identifegy options identifegy options identifegy options identifegy options identified?ied?ied?ied?ied?

TTTTTask 1ask 1ask 1ask 1ask 1. . . . . Generate actions forpursuing priority objectives (seeStep 5).TTTTTask 2. ask 2. ask 2. ask 2. ask 2. Refine and organizeactions.TTTTTask 3. ask 3. ask 3. ask 3. ask 3. Combine into strategyoptions, evaluate against LEDobjectives and improve. Do thestrategies promote the localarea objectives? Do they requiretradeoffs and consensusbuilding?TTTTTask 4. ask 4. ask 4. ask 4. ask 4. Negotiate and redesignthe strategies; agree on astrategy



StStStStStep 7ep 7ep 7ep 7ep 7: A: A: A: A: Action Planning andction Planning andction Planning andction Planning andction Planning andStratStratStratStratStrategy Documentationegy Documentationegy Documentationegy Documentationegy Documentation

What is AWhat is AWhat is AWhat is AWhat is Action Planning?ction Planning?ction Planning?ction Planning?ction Planning?

Once a group of actions, known as astrategy option, has been designedand agreed to by the LED planninggroup, it must be operationalized. Itis one thing to get agreement on abroad strategy, quite another todetail it, maintain the commitmentand secure the required resources.Action planning is simply a way toclearly establish what must be done,the date by which it will be done,and who will be responsible fordoing the work. Action plans need tobe �“do-able�” withinthe existing limitations of time,budgets, administrative capacityand political resources. Good actionplanning offers a chance to doublecheck the strategy option to makesure the strategy is practical andcan be implemented. Specifyingtasks allows for clear budgeting anda realistic appraisal of the workahead.HoHoHoHoHow are Aw are Aw are Aw are Aw are Action Plans creatction Plans creatction Plans creatction Plans creatction Plans created?ed?ed?ed?ed?



An action plan contains a description of the specific tasks and activitiesnecessary to implement the chosen strategy option. The key tasks involved inaction planning are as follows:

TTTTTask 1ask 1ask 1ask 1ask 1. . . . . Clearly understand the tasks and actions involved in the chosenstrategy option (Step 6).TTTTTask 2. ask 2. ask 2. ask 2. ask 2. Determine who needs to be involved and specific roles andresponsibilities.TTTTTask 3. ask 3. ask 3. ask 3. ask 3. Determine time frames, resources, funding and preconditions.TTTTTask 4. ask 4. ask 4. ask 4. ask 4. Identify risks, gaps and weak links in the action plan and how theywill be addressed (e.g., actions or tasks in which there is no clear leader,no funding or other key resources identified, capacity limitations).TTTTTask 5. ask 5. ask 5. ask 5. ask 5. Reconfirm commitments of each partner.TTTTTask 6. ask 6. ask 6. ask 6. ask 6. Agree on a coordination mechanism.TTTTTask 7ask 7ask 7ask 7ask 7. . . . . Agree on a monitoring mechanism (Step 9).

StratStratStratStratStrategy Documentation: Preparing the Strategy Documentation: Preparing the Strategy Documentation: Preparing the Strategy Documentation: Preparing the Strategy Documentation: Preparing the Strategic Planegic Planegic Planegic Planegic Plan

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 thesame summary information �– information derived from the Ten Steps ofPlanning Excellence process. A typical LED strategic document will contain thefollowing chapters:

Chapter 1: IntroductionBackground information and document organization

Chapter 2: Where are we now?This provides the overview of the stakeholders and the situation. It is ananalysis of the local economy�’s strengths and weaknesses, and theopportunities and threats, as well as the availability of partners andresources for economic development.

Chapter 3: Where do we want to go?This contains the final vision and objectives that set the strategic directionfor the action plan, which is also included.

Chapter 4: How are we now? This is the strategy and the action plan. Itrepresents priority programs and projects for implementation. Here iswhere coordination of funding sources and partnerships/organizations foreconomic development are highlighted.

Chapter 5: How do we know when we have arrived?

Finally, the LED strategic planning document should describe the processfor evaluation and periodic update.

StStStStStep 8: Plan Imep 8: Plan Imep 8: Plan Imep 8: Plan Imep 8: Plan Implementationplementationplementationplementationplementation

FFFFFolloolloolloolloollowing Thrwing Thrwing Thrwing Thrwing Throughoughoughoughough

At this point of the process, a written Local Economic Development StrategyDocument should have been produced. This document should outlinecommitment of resources and establish a clear path of action. But beware! LEDstrategies often become derailed here. Developing the plan is not the end ofthe process; it requires good implementation management.

Institutionalization and Organizational DeInstitutionalization and Organizational DeInstitutionalization and Organizational DeInstitutionalization and Organizational DeInstitutionalization and Organizational Devvvvvelopmentelopmentelopmentelopmentelopment

New ways of thinking about LED and utilizing a participatory approach will taketime to be understood, accepted and routinely applied. Research indicates thatthe full impact of implementing a LED will also take time, especially ifinstitutional adaptations and adjustments are required. Developing neworganizations or adapting existing ones are two possible ways to institutionalizeand sustain the LED effort. For example, LED could be institutionalized bygiving an existing staff member responsibility for LED, or by creating a newposition within an existing department. Another way is through theestablishment of a Local Economic Development Agency (LEDA), composed ofpublic and private institutions, representatives of political and economicspheres, and civil society (see Training Resource Link 6). LEDAs havedemonstrated their effectiveness, especially in institutionally poorenvironments. In institutionally rich environments, some kind of �“officialized�”LED forum might be more appropriate, ensuring continuity in consultations,dialogue, strategic planning as well as monitoring and evaluation.



HoHoHoHoHow is institutionalization done?w is institutionalization done?w is institutionalization done?w is institutionalization done?w is institutionalization done?

The following tasks are useful in considering institutionalization:

TTTTTask 1: ask 1: ask 1: ask 1: ask 1: Strengthen existing institutional structures to improve theireffectiveness in planning, management, and coordination among differentsectors; only where necessary, create new institutions to accommodatespecial requirements both technical andmanagerial �– not covered by existing institutions.

TTTTTask 2: ask 2: ask 2: ask 2: ask 2: Change or adjust mandates of existing institutions to integrate newfunctions and roles.

TTTTTask 3: ask 3: ask 3: ask 3: ask 3: Identify and task �“anchor�” institutions to take the lead and providea home base for LED activities or phases.

TTTTTask 4: ask 4: ask 4: ask 4: ask 4: Link to established policy instruments such as annual budgeting,human resource allocation, sectoral work programs, etc

TTTTTask 5: ask 5: ask 5: ask 5: ask 5: Develop skills necessary to support and routinely apply the LEDprocess (information collection, negotiation, facilitation, strategyformulation, action planning, monitoring and evaluation).

TTTTTask 6: ask 6: ask 6: ask 6: ask 6: Modify legal and administrative frameworks to enable a proceduralframework for smooth and effective functioning of institutions.

TTTTTask 7ask 7ask 7ask 7ask 7: : : : : Provide funds to support expenditure and equipment for capacity-building and sustaining the framework, primarily through public budgetaryprovisions or allocations.

TTTTTask 8: ask 8: ask 8: ask 8: ask 8: Maintain knowledge support and a learning process, for example,through documenting and evaluating lessons of experience and buildingcollaboration with local research or consulting establishments.

Module 4: Have we arrived?StStStStStep 9: Monitep 9: Monitep 9: Monitep 9: Monitep 9: Monitor and Evor and Evor and Evor and Evor and Evaluataluataluataluataluateeeee

MonitMonitMonitMonitMonitoring is. . .oring is. . .oring is. . .oring is. . .oring is. . .

MonitMonitMonitMonitMonitoring oring oring oring oring means to �“observe�” or to �“check performance�”. Monitoringis a continuous process of collecting information using performancemeasures (or indicators) to gauge the process or project. Monitoringaccepts the design of the strategy measuring progress andperformance, and identifies successes or failures as early as possible.

EvEvEvEvEvaluation is. . .aluation is. . .aluation is. . .aluation is. . .aluation is. . .

EvEvEvEvEvaluation aluation aluation aluation aluation uses the information from monitoring to analyze theprocess, programs and projects to determine if there are opportunitiesfor changes to the strategy, programs and projects. Evaluation, likemonitoring, should promote learning. In the implementation stage of aLED strategy, evaluation is used to determine if the actions aremeeting the strategic objectives, efficiently, effectively and/or at all.

WhWhWhWhWhy Monity Monity Monity Monity Monitor and Evor and Evor and Evor and Evor and Evaluataluataluataluataluate?e?e?e?e?

By tracking performance, monitoring ensures that limited resources foreconomic development can be put to �‘�“best use�’�” and that negative orunintended impacts can be identified and minimized. Furthermore,effective monitoring and evaluation will sound the alarm when internaland external circumstances in the economic environment havechanged, when key opportunities are being missed, or whenimplementation of a project is no longer effective. Adjustments inaction plans, changes in priorities, or a complete refocusing ofstrategic objectives can then be made to ensure the economicdevelopment plan remains useful over time. Ongoing monitoringand evaluation should result in the gradual evolution and upgrading ofthe strategic plan, taking the local area closer and closer to itsenvisioned future.



HoHoHoHoHow tw tw tw tw to Monito Monito Monito Monito Monitor and Evor and Evor and Evor and Evor and Evaluataluataluataluataluate Pre Pre Pre Pre Project Imoject Imoject Imoject Imoject Implementationplementationplementationplementationplementation

TTTTTask 1: ask 1: ask 1: ask 1: ask 1: Prepare the monitoring or evaluation plan and framework: useproject objectives and performance measures (Step 5), determine what willbe monitored and what information is required and how it will be collected.TTTTTask 2: ask 2: ask 2: ask 2: ask 2: Determine who will be involved.TTTTTask 3: ask 3: ask 3: ask 3: ask 3: Determine when, where, how to monitor and evaluate.TTTTTask 4: ask 4: ask 4: ask 4: ask 4: Determine documentation and reporting protocol.

StStStStStep 1ep 1ep 1ep 1ep 10: A0: A0: A0: A0: Adjust and Modifydjust and Modifydjust and Modifydjust and Modifydjust and Modify

The 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.


Unleashing LED Through PartnershipIloilo City Vision: Premier City bIloilo City Vision: Premier City bIloilo City Vision: Premier City bIloilo City Vision: Premier City bIloilo City Vision: Premier City by 20y 20y 20y 20y 201111155555Progress is not alien to Iloilo City. Even during the pre-Spanish times, it

was already a thriving shipbuilding community where traders andmerchants converge to barter textiles and farm produce with goods from

neighboring islands. The flourishing village impressed the colonizers that it wasmade the seat of the colonial government in this part of the archipelago. In themid-19th century, Iloilo City rose to economic prominence following the openingof its port to world trade and was made a vibrant infrastructure largely becauseof a strong partnership between the colonial government and privateenterprise.

It was in 1855 when Isabel II,Queen of Spain, declared open tointernational trade the port ofIloilo. Following a Royal Order, thecolonial government providednecessary improvements to theport to support the full-scaledevelopment of the Philippinesugar industry. But this is onlyhalf of the story as the other halflies in the hands of commercialagents of British and American firms. Led by Nicholas Loney, they turned theport of Iloilo into an energetic trading hub which eventually brought unexpecteddevelopment to the city.

But much like the rest of the urban areas in the Philippines, Iloilo City�’sdevelopment took place without much reference to plans or infrastructurecapacity. As such, the city�’s present spatial pattern is composed ofuncoordinated packets of development. Further, efforts to integrate the variousland uses and the necessary infrastructure facilities into a coordinateddevelopment plan have been futile, as the implementation of land use plansand zoning ordinances have been very lax.

As a result, the problems typical of urban or urbanizing areas such as trafficcongestion, pollution, overcrowding, proliferation of informal settlements andenvironmental degradation are turning the image of progress into depressingpicture, especially in the city proper area where most of the city�’s economicactivity takes place.

Aggravating these problems are its limited land area of only 70.23 squarekilometers and its growing population that increases by 1.93 percent annuallyand which was pegged at 366,391 as per 2000 Census. The figure swells to atleast 100,000 more during daytime, what with workers and clients ofgovernment and businesses as well as students that descend everyday on theregion�’s administrative, trade and education capital. The ninth most populouscity in the Philippines ranks third in population density.

With little elbow room, urban growth and the problems associated with it arespilling over to the adjacent municipalities of Leganes, Oton, Pavia and SanMiguel. Agreeing that such can be managed collectively, Iloilo City and the fourtowns have formed the Metropolitan Iloilo Development Council (MIDC) andhave identified areas of collaboration along which they based their commonand integrated development plan. Iloilo City, however, will remain as the centerof residential, commercial, financial and education activities with the other fourtowns as its satellites.

Evidently, as Iloilo City continues to grow, its physical, economic anddemographic structures change along with it. And in light of the prevailingtrends in the nation and the rest of the world, there is a need to re-examine therole of the city with the respect to the province and the surrounding regions.This case study looks into the prevailing conditions of Iloilo City, its role in theregion�’s economic hierarchy, and how it can refocus its efforts to realizing theshared vision of becoming a �“Premier City by 2015.�”

This Visayan city aims to be more attractive both as abusiness and cultural center in the region. The localleadership laid out a plan to establish business facilitiesincluding a stock exchange, convention centers,manufacturing facilities, and an interconnected masstransport system, while preserving cultural heritage.

Source: Iloilo City Public Governance Roadmap, 2005



EconomEconomEconomEconomEconomyyyyy

The economy of Iloilo City is driven by the following sectors:

TTTTTrade and Serrade and Serrade and Serrade and Serrade and Servicesvicesvicesvicesvices. Iloilo City�’s economy is dominated by businesses involvedin trade and services. In particular, employment in wholesale and retail trade,finance, insurance, real estate and business services top the list. In spite of itsbeing one of the country�’s traditional economic centers, the growth of IloiloCity�’s economy has been relatively sluggish. Classification of businesses byindustry shows that almost 75 percent of the city�’s commercial establishmentsfall under the category of micro-enterprises, or firms with a capitalization of onlyPhP 150,000 and below. The decreasing number of registered businessestablishments also points toward a downward trend in investment.

TTTTTourism.ourism.ourism.ourism.ourism. Iloilo City has great potentialas a heritage tourist site due to itswealth of historic buildings and colorfulfestivals celebrated to honor the city�’spatron saints. Over a two-year periodalone, receipts from the tourismindustry amounted to close to PhP100,000,000. However, insufficientinfrastructure facilities, as well as thelack of maintenance of its heritage siteshamper the further development of thissector.

IndusIndusIndusIndusIndustrtrtrtrtryyyyy. Manufacturing in Iloilo City ispractically non-existent when compared to the booming trade and servicessector. In the period between 1990 and 1997, the growth of the manufacturingsector did not veer too far away from its average of 6.4 percent annually. Thesmall number of industries �– primarily agro processing firms �– is alsodiminishing, as companies have been moving out to less populated areas. Theabsence of land zoned specifically for industrial uses has also resulted in theestablishment of factories in incompatible areas.

AAAAAgriculturegriculturegriculturegriculturegriculture. The development of Iloilo City�’s agricultural sector is compromisedby the spatial demands of urbanization. Agricultural lands have been reducedsignificantly from 1,751 hectares in 1995, to only 987.16 hectares in 1997. Inaddition, the cost related to irrigating agricultural lands have also limited thecity�’s investment in this sector. Aquaculture in the city is also on the declinewith the continued degradation of the Iloilo River. The proliferation of squattersettlements along its banks has been identified as the primary source ofpollution.

InfrastructureInfrastructureInfrastructureInfrastructureInfrastructure

The development ofIloilo�’s role as acommercial center isbuoyed by the city�’stransport infrastructurenetwork, which providesthe necessary links withthe local and nationalmarkets. The city�’s roadnetwork facilitates thetransport of agriculturalproducts from thesurrounding region toother parts of the country. However, traffic congestion is becoming anincreasing problem at the city proper due to the large volume of vehiclesconverging within the small area.

The Iloilo City Port Complex is considered the leading trade and commercial hubfor Western Visayas, as well as one of the safest natural seaports in thecountry. Seventy-two foreign vessels and 10,471 domestic vessels docked atthe port of Iloilo in 2000, all with a gross registered tonnage of 12,076,649tons. On the same year, the port of Iloilo registered a passenger traffic figure of1,933,964, of which 1,003,909 disembarked and 930,055 embarked there.

Its airport handles at least 15 flights a day, serving three commercial airlinesand had a passenger traffic figure of 702,995 in 2001. In the same year, ithandled 5,670,565.7 kilos of incoming cargo and 3,793,870.5 kilos ofoutgoing cargo. With a 2,100 m. x 45 m. runway and a modern terminalequipped with computerized facilities to accommodate flights from key cities inthe country, the airport has a total land area of 52,635 sq. m.

The provision of basic utility services in Iloilo City has so far been satisfactory.The power sector has been very efficient, with only less than 30 percent of theurban households having no electrical connections. Problems, however, ariseduring the peak load hours where demand exceeds supply, therefore resultingin power interruptions. The water sector, on the other hand, suffers frominsufficient water supply and low water pressure.

Iloilo City is probably among the few cities in the country where there is actuallyan oversupply of telephone lines. The combined switching capacity of the localservice providers �– Globelines and the Philippine Long Distance Telephone Co.(PLDT) �– is 72,982. As of 1998, there were still 21, 625 unused lines.



DeDeDeDeDevvvvvelopment Stratelopment Stratelopment Stratelopment Stratelopment Strategiesegiesegiesegiesegies

11111. F. F. F. F. Fast track the deast track the deast track the deast track the deast track the devvvvvelopment of Iloilo City parelopment of Iloilo City parelopment of Iloilo City parelopment of Iloilo City parelopment of Iloilo City particularly its economicticularly its economicticularly its economicticularly its economicticularly its economicpopopopopotttttential;ential;ential;ential;ential;

2. Pr2. Pr2. Pr2. Pr2. Promoomoomoomoomottttte the rehabilitation and consere the rehabilitation and consere the rehabilitation and consere the rehabilitation and consere the rehabilitation and conservvvvvation of natural resouration of natural resouration of natural resouration of natural resouration of natural resourcescescescescesof the City especially those that contributof the City especially those that contributof the City especially those that contributof the City especially those that contributof the City especially those that contribute te te te te to the socio-economico the socio-economico the socio-economico the socio-economico the socio-economicuplifuplifuplifuplifupliftment of the people and the land;tment of the people and the land;tment of the people and the land;tment of the people and the land;tment of the people and the land;

3. Identify the future e3. Identify the future e3. Identify the future e3. Identify the future e3. Identify the future expansion areas fxpansion areas fxpansion areas fxpansion areas fxpansion areas for seor seor seor seor settlement, commerttlement, commerttlement, commerttlement, commerttlement, commercial,cial,cial,cial,cial,institutional, and industrial build-up;institutional, and industrial build-up;institutional, and industrial build-up;institutional, and industrial build-up;institutional, and industrial build-up;

4. Pr4. Pr4. Pr4. Pr4. Prooooovide spatial direction tvide spatial direction tvide spatial direction tvide spatial direction tvide spatial direction to the pro the pro the pro the pro the prooooovision and imvision and imvision and imvision and imvision and imprprprprprooooovvvvvement ofement ofement ofement ofement ofbasic and stratbasic and stratbasic and stratbasic and stratbasic and strategic infrastructure, fegic infrastructure, fegic infrastructure, fegic infrastructure, fegic infrastructure, facilities and social seracilities and social seracilities and social seracilities and social seracilities and social services;vices;vices;vices;vices;

5. Guide and encourage increased economic activities and the5. Guide and encourage increased economic activities and the5. Guide and encourage increased economic activities and the5. Guide and encourage increased economic activities and the5. Guide and encourage increased economic activities and thelocation of inlocation of inlocation of inlocation of inlocation of invvvvvestments in suitable areas and poestments in suitable areas and poestments in suitable areas and poestments in suitable areas and poestments in suitable areas and potttttential sectential sectential sectential sectential sectororororors;s;s;s;s;

6. F6. F6. F6. F6. Facilitatacilitatacilitatacilitatacilitate access be access be access be access be access by the population ty the population ty the population ty the population ty the population to economic opporo economic opporo economic opporo economic opporo economic opportunitiestunitiestunitiestunitiestunitiesand social serand social serand social serand social serand social services; andvices; andvices; andvices; andvices; and

77777. A. A. A. A. Achiechiechiechiechievvvvve a population distribution that will pre a population distribution that will pre a population distribution that will pre a population distribution that will pre a population distribution that will promoomoomoomoomottttte and sustaine and sustaine and sustaine and sustaine and sustainsocio-economic grsocio-economic grsocio-economic grsocio-economic grsocio-economic grooooowth and dewth and dewth and dewth and dewth and devvvvvelopment.elopment.elopment.elopment.elopment.

EnEnEnEnEnvirvirvirvirvironmentonmentonmentonmentonment

Much of Iloilo City�’s environmental problems have to do with drainage andwastewater treatment. The city�’s insufficient drainage system, combined withthe 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 inwater. Wastewater treatment, on the other hand, was improved with a ruling bythe city and the Department of Environmental and Natural Resources (DENR)requiring all new construction to have wastewater treatment facilities. Strictermonitoring is practiced in the residential areas where household waste is stilldischarged into the drainage systems and canals.

Solid waste is also a major problem in Iloilo City where at least 300 tons isproduced 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 ofin the city�’s waterways, clogging them in the process.

Air pollution is becoming an increasing problem with the rapid rise in motorvehicle ownership. This is particularly an issue in the major thoroughfareslocated in the city proper where in 1998 the annual average particulateconcentrations exceeded the acceptable DENR standards. Water quality andwater supply in the city is also deteriorating due to the indiscriminate disposalof waste coupled with the rapid rate of population growth.

DeDeDeDeDevvvvvelopment Issues and Pelopment Issues and Pelopment Issues and Pelopment Issues and Pelopment Issues and Poooootttttentialsentialsentialsentialsentials

Iloilo City�’s central role in the Western Visayas region is due in large part to itstraditional role as a commercial and trade hub for the region. In order to pushits further development, however, the city needs to refocus its priorities withinthe parameters of its comparative advantages. A common mistake of manyurban areas is the desire to be the �“center of the universe�” by attempting tofulfill the needs of an entire region. Instead, cities and other urbanizing areasshould identify their comparative advantages and use these to jumpstart theirprogress.

Within the context of local economic development, Iloilo City must address thefollowing issues:

1. Rationalize the city�’s land uses by allocating scarce land resourcesalong development priorities.

2. Upgrading infrastructure systems to accommodate population andindustrial growth.

3. Institute stricter environmental policies to minimize adverse impactsof urbanization on the environment.

4. Promote the preservation of its heritage sites to enhance its tourismpotential.

5. Recognizing the city�’s comparative advantages, Iloilo City has a greatpotential for enhancing its central role in the region. Among the manyoptions it can pursue are the following:

Source: Iloilo City Development Strategy, 2005



�• Strengthen physical and economic linkages with surroundingmunicipalities to promote its role as a trading center for the region. Thiswould include improving the transportation links �– road, railroad, etc. �–between the city and the surrounding municipalities to facilitate thetransfer of goods.

�• Promote the development of the city as the regional educational centerby investing in student support facilities, e.g. dormitories, libraries,Internet services, etc.

Local Economic DeLocal Economic DeLocal Economic DeLocal Economic DeLocal Economic Devvvvvelopment Prelopment Prelopment Prelopment Prelopment Processocessocessocessocess

Local economic development in Iloilo City aims to nurture the tradition thatflourished in the port of Iloilo during the mid-19th century when the colonialgovernment and the private enterprise forged a strong partnership to boost theeconomy. Specifically, it seeks to increase the level of private sector supportand investment in the midst of the economicdifficulties currently experienced by the country.

There is a prevailing need for attracting privateinvestment both domestically and internationally.While Iloilo City indicated that its businessenvironment is relatively conducive to attractingprivate investment, there are also chronic andincreasing levels of poverty, unemployment andunderemployment of the local population,resistance by local producers to diversify, and anincreasingly competitive local, national andexport market for traditional goods and services.

There is also a general lack of awareness withinthe local and international business investment communities of theopportunities that exist in Iloilo City because most local investment promotionefforts are somewhat temporary and reactive in nature.

The implementation of a LED program was seen as a means to:

�• Increase the number of new business in Iloilo City;�• Increase the awareness about Iloilo City and the neighboring local

governments as suitable areas for investments;�• Reduce the population living below the poverty threshold; and�• Reduce unemployment.

The LED process involved the following:

ExExExExExamining Local Economic Deamining Local Economic Deamining Local Economic Deamining Local Economic Deamining Local Economic Devvvvvelopment (LED) Beselopment (LED) Beselopment (LED) Beselopment (LED) Beselopment (LED) Best Practices.t Practices.t Practices.t Practices.t Practices. This activityinvolved sharing of new LED practices, tools and approaches through casestudies, study tour and information materials. Case studies on LED werecompiled and made available to stakeholders to give them ideas on what otherlocal governments are doing to hurdle the urban growth problems and otherchallenges. Officials availed of study tours in Vancouver, Malaysia andSingapore as well as in other metropolitan areas in the Philippines to give themfirst-hand insights on how leading cities address urbanization.

EsEsEsEsEstablishing a Local Economic Detablishing a Local Economic Detablishing a Local Economic Detablishing a Local Economic Detablishing a Local Economic Devvvvvelopment (LED) Telopment (LED) Telopment (LED) Telopment (LED) Telopment (LED) Task Fask Fask Fask Fask Forces and Grorces and Grorces and Grorces and Grorces and Groups.oups.oups.oups.oups.This involved the establishment of task forces composed of representativesfrom the city and national government agencies and private sectororganizations to act as advisors and technical working group or projectmanagement team in order to coordinate the project activities. These includethe following:

a. Iloilo City Convention Bureaub. Iloilo City Tourism Commissioncc. Task Force Calle Realdd. Iloilo City Heritage Conservation Councilee. Iloilo City Investment Boardf. Task Force Clean and Green

UUUUUndernderndernderndertaking Economic Assessment thrtaking Economic Assessment thrtaking Economic Assessment thrtaking Economic Assessment thrtaking Economic Assessment through Economicough Economicough Economicough Economicough Economicand Tand Tand Tand Tand Tourism Summitsourism Summitsourism Summitsourism Summitsourism Summits. Summits on key issues were done inSeptember to December 2001 to review the economicprograms and projects including analysis of capacity toimplement the programs and projects. The result was thesummary of city strengths, weaknesses, opportunities andthreats. These respectively include, among others, having

manpower as an important resource; economic instability due to rising poverty;availability of telecommunications and transportation facilities; and worseningtraffic situation both the city and province.

Preparing Local Economic APreparing Local Economic APreparing Local Economic APreparing Local Economic APreparing Local Economic Action Action Action Action Action Agenda and Prgenda and Prgenda and Prgenda and Prgenda and Programs.ograms.ograms.ograms.ograms. Based on the resultsof the SWOT prepared during the summits, identified priority programs andproposals were implemented. These programs included:

Tourism. This calls for the organization of annual entrepreneurial spirit fair,improvement of infrastructure support services leading to identified tourist andinvestment areas, establishment of the Iloilo City Convention Bureau,production of video collateral other promotional materials, establishment ofone-stop economic and enterprise office, etc.



Food security. This calls for launching of education and family planningcampaigns, setting up of research centers, strengthening of cooperatives, andimprovements of infrastructures like farm-to-market roads, fishing ports,irrigation systems, warehouses and solar dryers.

Infrastructure. This calls for strict enforcement of road construction standards,introduction of heavy mass transport system, improvement of drainagesystems, dredging of major waterways and port facilities, expansion of theinternational port, development of alternative ports, development of alternativewater sources, expansion of the water system, strengthening oftelecommunication services, and introduction of alternative power plants.

Environment. This calls for actions that would prevent air and water pollution,forest denudation and degradation of marine environments, as well as addressthe worsening solid waste problem like massive information campaigns, strictenforcement of environmental laws, provision of livelihood opportunities tomarginal sectors.

Governance. This calls for political solutions to problems on squatting, traffic,garbage disposal, taxation, sidewalk vendors and underground economy, streetpeople and lack of coordination among and between local government unitsand national government agencies on matters pertaining to economicdevelopment.

Identifying ApprIdentifying ApprIdentifying ApprIdentifying ApprIdentifying Appropriatopriatopriatopriatopriate Organizational Se Organizational Se Organizational Se Organizational Se Organizational Structure ftructure ftructure ftructure ftructure for LED.or LED.or LED.or LED.or LED. One of themechanisms identified to ensure multi-stakeholder participations in LED wasthe establishment of an investment promotion center, and by providingtechnical support to the establishment of the Iloilo City Convention Bureau andIloilo City Cultural Heritage Conservation Council. This also included the revivalof the Iloilo City Tourism Commission. Organizational improvement workshopson marketing and promotion, investment promotion planning, projectdevelopment and strategic planning were conducted.

DeDeDeDeDevvvvveloping Local Capacityeloping Local Capacityeloping Local Capacityeloping Local Capacityeloping Local Capacity..... Capacity development activities were carried outthrough the local economic development planning, project management,investment promotion, tourism promotion and development. The Iloilo CityConvention Bureau (ICCB), for example, was assisted through a workshop indeveloping a strategic plan to chart the group�’s direction and equip theorganization in building its capacity to successfully to fulfill its mandate.

ImImImImImplementing Local Economic Deplementing Local Economic Deplementing Local Economic Deplementing Local Economic Deplementing Local Economic Devvvvvelopment Prelopment Prelopment Prelopment Prelopment Projects.ojects.ojects.ojects.ojects. A number of projectshave been implemented which are producing some results (see case studies).

MonitMonitMonitMonitMonitoring and Evoring and Evoring and Evoring and Evoring and Evaluation (on-going).aluation (on-going).aluation (on-going).aluation (on-going).aluation (on-going). Seeing to it that programs and projectsare continuously assessed for further improvements, key personnel involved inproject development and implementation were trained on monitoring andevaluation. Through workshops, stakeholders were then equipped with the toolsand process of economic monitoring system.

GainsGainsGainsGainsGains

After some years of facilitating the LED process, the following gains wereachieved:

Increased tIncreased tIncreased tIncreased tIncreased tourisourisourisourisourist arrivt arrivt arrivt arrivt arrivals.als.als.als.als. Tourist arrivals in Iloilo City increased by 123 percentin 2004 over the 2003 figure. The tourism industry had benefited from theprofessional management of Dinagyang Festival. With increasing touristarrivals, the economic benefits of the festival have trickled down to othersectors like transportation, food, retail and even the lowly street traders. Thenew investments in the tourism industry (two new hotels in Iloilo City) hasgenerated more investments and attracted more visitors and investors to thecity.

EsEsEsEsEstablished public-privtablished public-privtablished public-privtablished public-privtablished public-privatatatatate pare pare pare pare partnertnertnertnertnership.ship.ship.ship.ship. The city has organized the followingfunctioning multi-stakeholder councils whose tasks are to support the LEDefforts of the city:



1. Iloilo City ConIloilo City ConIloilo City ConIloilo City ConIloilo City Convvvvvention Bureauention Bureauention Bureauention Bureauention Bureau. The ICCB is the official destination-marketing organization not only for the tourism industry in Iloilo but also inGuimaras. It focuses on promotion and selling Iloilo and Guimaras as aremarkable destination for tourists, convention delegates and businesstravelers.

2. Iloilo City TIloilo City TIloilo City TIloilo City TIloilo City Tourism Commissionourism Commissionourism Commissionourism Commissionourism Commission. This body is tasked for formulateregulations and policies relative to tourism in the city.

3. TTTTTask Fask Fask Fask Fask Force Calle Rorce Calle Rorce Calle Rorce Calle Rorce Calle Realealealealeal. Organized to revive business activities in andpreserve heritage buildings at the city�’s Central Business District (popularlyknown as Calle Real), this task force planted the seed for heritageconservation in Iloilo City.

4. Iloilo City Cultural Heritage ConserIloilo City Cultural Heritage ConserIloilo City Cultural Heritage ConserIloilo City Cultural Heritage ConserIloilo City Cultural Heritage Conservvvvvation Councilation Councilation Councilation Councilation Council. Created in April 2000under Ordinance No. 00-054 or the Local Cultural Heritage ConservationOrdinance, the council is responsible in advancing cultural heritageconservation and promotion. It composed of individuals from the arts andculture community.

5. Iloilo City InIloilo City InIloilo City InIloilo City InIloilo City Invvvvvesesesesestment and Incentivtment and Incentivtment and Incentivtment and Incentivtment and Incentive Boare Boare Boare Boare Boarddddd. This body is tasked to overseeinvestment generation for Iloilo City and the grant of incentives to newbusiness locators.

6.. TTTTTask Fask Fask Fask Fask Force Clean and Greenorce Clean and Greenorce Clean and Greenorce Clean and Greenorce Clean and Green. In charge of cleanliness and sanitationcampaigns and projects, this serves as advisory and monitoring body onsolid waste management issues.

AAAAAttractttractttractttractttracted funding fed funding fed funding fed funding fed funding for pror pror pror pror projects.ojects.ojects.ojects.ojects. As a result of creation of multi-stakeholderimplementation 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.Organized alliances.Organized alliances.Organized alliances.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.

AAAAAttractttractttractttractttracted more ined more ined more ined more ined more invvvvvesesesesestments.tments.tments.tments.tments. Iloilo City is becoming more attractive to investors.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.

ImImImImImprprprprprooooovvvvved delived delived delived delived delivererererery of sery of sery of sery of sery of services. vices. vices. vices. vices. The enhanced private sector participation in citygovernance has improved delivery of tourism, heritage conservation, economicpromotion, environmental services

LessonsLessonsLessonsLessonsLessons

Iloilo City is among the urban centers in the country that has effectivelyaddressed its economic problems through partnerships and collaboration withthe private sector and NGOs. This is well-documented fact as shown in the�“State of the Philippine Population Report 2004,�” which was released lastmonth. The report said: �“Iloilo City�’s recognition of the importance ofparticipation and cooperation has helped the city stay afloat amid problemsregarding urban growth.�” It also cited the efforts of the alliance that Iloilo Citybuilt with neighboring towns, which �“proved to be a wise move in facing thecomplicated pressures of urbanization.�”

Partnership in Iloilo City �“is at the heart of the LED efforts in Iloilo City�” as�“many of the city�’s economic projects and programs involve the participation ofvarious sectors.�” Iloilo City is able to grab the opportunities brought about bythe active participation of the various sectors. Partnership has played a bigrole in helping it meet the needs of its populace despite limited resources. Thisstrategy of governance has also helped the city address the challengesassociated with urban growth.



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

Iloilo City�’s Dinagyang Festival started in 1968 as a religious celebration atthe San Jose Parish Church to mark the feast of the Santo Niño every thirdweek 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 thedrums rumble. The colorful and exciting prancing of ati warriors is punctuatedwith shouts of �‘�’Viva Señor Niño!�’�’ and yells of �‘�’Hala Bira!�’�’ as they raise spearsand shields. The contest will be held on Sunday, the last of the two-day festivalhighlight.

Yearly, the city government allocates a substantial amount for the festival butthere had been no effort to account the financial donations, giving rise todoubts 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 presentationlacked focus and failed to showcase what is uniquely an Ilonggo culture.In 1988, the city government tapped the private sector�’s help in managing thefestival. The Iloilo Dinagyang Foundation was then organized to work hand inhand with the city government. Since then, the festival has evolved into what istruly an Ilonggo cultural show and its management has become a success storyon government-private sector partnership.

From 1988-2001, the city government still had some control in themanagement of the festival. But in 2002, the foundation totally managed it inbehalf of the city government. Financial contributions to the festival�’s hostingwere then properly accounted. Donations even exceeded what were spent inholding the festival, giving the foundation revenues to ensure the continuity ofits programs.

In 2003, at least PhP 3.573 million were generated from private donations,while government donation was only PhP 1.1 million that includes PhP 750,000from the Iloilo City government, PhP 250,000 from the Iloilo provincialgovernment, and PhP 100,000 from the Department of Tourism.

The PrThe PrThe PrThe PrThe Projectojectojectojectoject

The Dinagyang Festival is envisioned to live up to its name as the premierfestival of the country, involving the whole community �– both the public andprivate sectors working together. It shall remain focused on its religious color �–a celebration in honor of the Child Jesus. It shall continue to help attracttourists and investors to Iloilo City and Province.

The objectives of the project is to:

1. To preserve and promote cultural heritage.2. To increase tourist arrivals.3. To generate income for the tourism industry and other sectors such as

transportation and cottage industries.4. To attract business to invest in the tourism industry and other fields.



AAAAAdvdvdvdvdvancesancesancesancesances

�• The tourism industry benefited a lot from the Dinagyang. With increasingtourist arrivals, i.e. 159,888 in 2001 to 207,780, the economic benefits ofthe festival surely trickled down to other industries like transportation, food,retail and even the lowly street traders. The new investments in the tourismindustry (two new hotels in Iloilo City) are expected to generate moreinvestments and attract more visitors and investors to the city.

�• The lowly street vendors benefited from the Dinagyang. The brisk sale ofsouvenir items and festival paraphernalia is enough indicator of its impact tocommunities. Tourism is a market for all kinds of goods and the increasingnumber of tourists coming to Iloilo-159,885 in 2001 and 207, 780 in 2002-means more income for any enterprising Ilonggo, with the tourism-orientedestablishments gaining more.

ChallengesChallengesChallengesChallengesChallenges

�• Due to the limited financial assistance from the City of Iloilo, The IDFI tookcharge of looking for funds from other sources. The Festival committee createda marketing group to undertake solicitation from various business entities andindividuals by offering media mileage and promotional collaterals. Exchangedeals and advertising packages were designed to fit the particular needs ofthe target sponsors. This year, at least Php 3.573 million were generated fromprivate donations, while government donation was only Php 1.1. million thatincludes Php 750,000 from Iloilo City Government, Php 250,000 from the Iloiloprovincial government, and Php 100,000 from the Department of tourism.

�• Festival as an attraction is not a year-long activity. Besides, innovation iscritical to sustain interest.

ContactContactContactContactContact

MrMrMrMrMr. Benit. Benit. Benit. Benit. Benito Jimenao Jimenao Jimenao Jimenao JimenaExecutive DirectorIloilo Dinagyang Foundation, Inc.Iloilo City Hall, Plaza LibertadIloilo City 5000 PhilippinesTel. No. +63 33 3372760Fax No. +63 33 3375268Web: www.dinagyangfoundation.comEmail: [email protected]

Hon. JerrHon. JerrHon. JerrHon. JerrHon. Jerry Py Py Py Py P. T. T. T. T. TreñasreñasreñasreñasreñasCity MayorCity of IloiloIloilo City Hall, Plaza LibertadIloilo City 5000 PhilippinesTel. No. : +63 33 3373573 3370085 / 335 1736Fax No.: +63 33 3350689Email: [email protected]

The management of the Dinagyang Festival is under the Iloilo DinagyangFoundation. Every time the Dinagyang season would draw near, the city mayorissues an executive order creating the organizational Committee, executivecommittee and the working committees. The executive committee is headed bythe foundation with representatives of various groups and offices like the CityTourism Office, the chairperson of City Council�’s committee on tourism, the SanJose Parish priests and national agencies, among others, as members. Theworking committees include the finance, program, religious and marketing,support and publicity committees. All these were mandated to ensure thesuccess of the festival.

The various committees then conduct their respective planning and budgetingconferences, and submit an accomplished activity plan and budget proposal tothe executive board. Once an overall budget for the festival is arrived, theexecutive committee conducts a fund-raising campaign by solicitingsponsorship to meet the budgetary requirements of each committee. It is thecommittees that implement their respective activities, ensuring that these arecarried out successfully.

In the city government�’s annual budget, there is always an allocation for theDinagyang, which then becomes the city�’s contribution to the festival. Thefinance and marketing committees then work to raise additional funds. There isthen massive promotion for the festival while the program committee preparesa list of special events. The religious committee is in charge of ensuring that thereligiosity of the Dinagyang remains intact. An executive director oversees theentire conduct of the festival. There is also the secretariat that does all the so-called dirty works.

PrPrPrPrProgram structureogram structureogram structureogram structureogram structure

The honorary committee is composed of the city mayor, the congressman of thelone district of Iloilo City and the provincial governor. The oversight committeeincludes the city mayor, the chair of the city council�’s committee on tourism andthe executive assistant of the mayor. The executive committee is composed ofthe officers of the Iloilo Dinagyang Foundation, the head of the City Tourism andDevelopment Office, the chair of the city council�’s committee on tourism, themayor�’s executive assistant, the San Jose parish priest, the head of the workingcommittees, the regional directors of the Department of Trade and Industry andthe Department of Tourism, the representative of the provincial government ofIloilo and the Philippine National Police. An executive director oversees theentire conduct of the festival. There is also the secretariat that does all the so-called dirty works.



Case 2: Local Action on Multi-Stakeholder Implementation Groups:

Iloilo City is the center of activity for the Islands of Panay and Guimaras, aswell as the entire Western Visayas region. Not only is it the seat ofgovernment for the entire province, but it also pays a pivotal role as the

traditional center for trade and commerce of Panay Island and the surroundingareas.

The demands of globalization and urbanization however, have taken its toll onthe city. The problems typical of urban or urbanizing areas such as trafficcongestion, pollution, overcrowding, proliferation of informal settlements andenvironmental degradation are evident in the city, particularly in the city properarea where most of the city�’s economic activity takes place. As Iloilo Citycontinues to grow, its physical, economic and demographic structure willchange along with it. And in light of the prevailing trends in the nation and therest of the world, there is a need to re-examine the role of the city with therespect to the province and the surrounding regions.

Partnership between public and private sector and the community are ofteneffective and efficient approach to implement LED strategies in cities

Multi-Stakeholder Participation in Economic PromotionThe PrThe PrThe PrThe PrThe Projectojectojectojectoject

The project is a strategy of enhancing participation in LED through the creationof task forces and councils to assist Iloilo City achieve its key LED thrusts ineconomic promotion, tourism, environmental and social programs. The projectinvolves:

1. Stakeholder identification. Key industry players were identified and,through an executive order from the mayor, designated as members oftask forces and councils.

2. Crafting of council/committee vision and plan of action. The task forcesand other similar bodies meet to come up with strategic plans to serve asguides in the fulfillment of their respective mandates.

3. Development and recommending policies, ordinances and guidelines.Policy recommendations emanating from the task forces were adopted intolocal legislations to for institutionalize them and make the programssustainable.

4. Meetings to build commitment among members. Task force and councilmembers regularly meet to ensure full participation and cooperation.

5. Work planning and budgeting sessions. Task force and council membersconduct strategic planning, which includes tasking and budgeting, toguarantee fulfillment of their respective mandates.

6. Education and communication campaigns on certain critical issues. Publicsupport is necessary for proposals emanating from task forces andcouncils, thus, education and communication campaigns are essential notonly in raising awareness and also to generate their acceptance.



�• Built multi-stakeholder councils and task forces on the following:

1. Iloilo City ConIloilo City ConIloilo City ConIloilo City ConIloilo City Convvvvvention Bureauention Bureauention Bureauention Bureauention Bureau. The ICCB is the official destination-marketing organization not only for the tourism industry in Iloilo but alsoin Guimaras. It focuses on promotion and selling Iloilo and Guimaras asa remarkable destination for tourists, convention delegates andbusiness travelers.

2. Iloilo City TIloilo City TIloilo City TIloilo City TIloilo City Tourism Commissionourism Commissionourism Commissionourism Commissionourism Commission. This body is tasked for formulateregulations and policies relative to tourism in the city.

3. TTTTTask Fask Fask Fask Fask Force Calle Rorce Calle Rorce Calle Rorce Calle Rorce Calle Realealealealeal. Organized to revive business activities in andpreserve heritage buildings at the city�’s Central Business District(popularly known as Calle Real), this task force planted the seed forheritage conservation in Iloilo City.

4. Iloilo City Cultural Heritage ConserIloilo City Cultural Heritage ConserIloilo City Cultural Heritage ConserIloilo City Cultural Heritage ConserIloilo City Cultural Heritage Conservvvvvation Councilation Councilation Councilation Councilation Council. Created in April 2000under Ordinance No. 00-054 or the Local Cultural Heritage ConservationOrdinance, the council is responsible in advancing cultural heritageconservation and promotion. It composed of individuals from the artsand culture community.

5. Iloilo City InIloilo City InIloilo City InIloilo City InIloilo City Invvvvvesesesesestment and Incentivtment and Incentivtment and Incentivtment and Incentivtment and Incentive Boare Boare Boare Boare Boarddddd. This body is tasked tooversee investment generation for Iloilo City and the grant of incentivesto new business locators.

6. TTTTTask Fask Fask Fask Fask Force Clean and Greenorce Clean and Greenorce Clean and Greenorce Clean and Greenorce Clean and Green. In charge of cleanliness and sanitationcampaigns and projects, this serves as advisory and monitoring body onsolid waste management issues.

�• Improved delivery of tourism, heritage conservation, economic promotion,environmental services.

�• Enhanced private sector capacity in city governance.


�• Lack of commitment to fulfill agreed responsibilities.�• Poorly defined roles and expectations.�• Seeking participation of multi-stakeholders require incentives and motivationaltools.


Hon. JerrHon. JerrHon. JerrHon. JerrHon. Jerry Py Py Py Py P. T. T. T. T. TreñasreñasreñasreñasreñasCity Mayor, City of IloiloIloilo City Hall, Plaza LibertadIloilo City 5000 PhilippinesTel. No. : +63 33 3373573 3370085 / 335 1736Fax No.: +63 33 3350689Email: [email protected]

Hon. MerHon. MerHon. MerHon. MerHon. Mercy Drilon-Garcy Drilon-Garcy Drilon-Garcy Drilon-Garcy Drilon-GarciaciaciaciaciaCouncilor, City of IloiloChairperson, Iloilo City TourismCommissionIloilo Terminal MarketIloilo City 5000 PhilippinesTel. No.: +63 33 3360699

EngrEngrEngrEngrEngr. Jose R. Jose R. Jose R. Jose R. Jose Roni Poni Poni Poni Poni PeñalosaeñalosaeñalosaeñalosaeñalosaCity Planning and Development OfficerChairperson, Iloilo City Investment andIncentive BoardCity Planning and Development OfficeIloilo City Hall AnnexIloilo City 5000 PhilippinesTel. No.: 3373159


DrDrDrDrDr. T. T. T. T. Teresa Sarabiaeresa Sarabiaeresa Sarabiaeresa Sarabiaeresa SarabiaPresident, Iloilo City Convention Bureauc/o La Fiesta HotelM. H. del Pilar Street, MoloIloilo City 5000 PhilippinesTel. No. : +63 33 3380044/3379508Mobile: +63 919 8240785

ArArArArArch. Antch. Antch. Antch. Antch. Antonio Sagradoronio Sagradoronio Sagradoronio Sagradoronio SagradorChairperson, Iloilo City Cultural HeritageConservation CouncilCity Planning and Development OfficeIloilo City Hall AnnexIloilo City 5000 PhilippinesTel. No.: 3373159

MrMrMrMrMrs. Marilen Locsins. Marilen Locsins. Marilen Locsins. Marilen Locsins. Marilen LocsinChairperson, Task Force Clean andGreenc/o City Environment and NaturalResources OfficeM. H. del Pilar Street, MoloIloilo City 5000 PhilippinesTel. No.: +63 33 3362879



Case 3: Local Action on Marketing and Promotion

While Iloilo City continues to be the center of activity for the islands ofPanay and Guimaras, as well as the entire Western Visayas region, itmust double its efforts in promoting its potentials as a business

location and at the same time as a destination for tourists. The vibrancy of thetourism industry in a given locality is a handy tool in attracting investments. Aninvestment boom in a certain locality, which would indicate an encouragingpeace and order condition, would also make it attractive to tourists who arebecoming security-conscious amid threats of terrorism elsewhere in the world.

Iloilo City may have lots to offer both as an investment hub and as a touristdestination but other areas in the country are also scampering to get their sliceof outside capital and spendthrift visitors. It must therefore do a lot of salespitching.

As a tourist destination, Iloilo City boasts of its festivals and other heritagesites. But beyond that lies more which if also marketed with its own, can makethe offer pretty much attractive. Thus, the sites and sights in the Iloilo provinceand in nearby Guimaras enhances the appeal. However, what is needed is acollaborative effort to ease the burden and intensify the work. The same is truein attracting investments where offers must be much tempting over the others.

Cooperation in Investment and Tourism PromotionThe PrThe PrThe PrThe PrThe Projectsojectsojectsojectsojects

These projects consist of the Experience Iloilo Guimaras Marketing Programand the establishment of Iloilo Investment Promotion Center.

�• Experience Iloilo GuimarasExperience Iloilo GuimarasExperience Iloilo GuimarasExperience Iloilo GuimarasExperience Iloilo Guimaras

The proposed Experience Iloilo Guimaras Marketing Program is prepared tosupport the accelerated development of Iloilo and Guimaras as a vibrant andsuccessful convention and individual travelers�’ destination in the Philippines.

This is to:

1. Develop and implement marketing and communication strategies in orderto build awareness and desire to visit Iloilo and Guimaras;

2. Increase tourist arrivals of Iloilo and Guimaras3. communicate effectively the �“Experience Iloilo and Guimaras�” brand with

Industry, government and the general public.

This marketing program is implemented by the Iloilo City Convention Bureau(ICCB) Inc., the official destination-marketing organization for Iloilo andGuimaras�’ tourism industry, in coordination with the Department of Tourism andthe local governments of Iloilo City and the provinces of Iloilo and Guimaras.ICCB focuses on promoting and selling Iloilo and Guimaras as a remarkabledestination for tourists, convention delegates and business travelers.

The program is a collective undertaking among sectors in Iloilo City, Iloilo andGuimaras provinces and adjacent destinations, to promote these sites aspotential tourism, trade and investment destinations. It was conceptualized in2001 and finalized in 2005 after a discussion with former DOT SecretaryNarzalina Lim. Iloilo City Mayor Jerry Trenas then requested the ICCB to lookinto organizing the said promotion event.

The activities include:

1.1.1.1.1. ConConConConConvvvvvention Marention Marention Marention Marention Markkkkkeeeeetingtingtingtingting: Generate meeting and convention businessfor Iloilo City and Guimaras�’s hotel and resorts, travel operators andother key tourism stakeholders.

2.2.2.2.2. DesDesDesDesDestination Martination Martination Martination Martination Markkkkkeeeeetingtingtingtingting: Promote Iloilo and Guimaras�’s positivetourism image as a destination and gateway to Western Visayas.





DrDrDrDrDr. T. T. T. T. Teresa Sarabiaeresa Sarabiaeresa Sarabiaeresa Sarabiaeresa SarabiaPresident, Iloilo City ConventionBureauc/o La Fiesta HotelM. H. del Pilar Street, MoloIloilo City 5000 PhilippinesTel. No. : +63 33 3380044/3379508Mobile: +63 919 8240785

EngrEngrEngrEngrEngr. Diosdado P. Diosdado P. Diosdado P. Diosdado P. Diosdado P. Cadena, Jr. Cadena, Jr. Cadena, Jr. Cadena, Jr. Cadena, Jr.....Provincial DirectorDepartment of Trade and IndustryTel. No.: +63 33 3370392 3350149/ 5099942Telfax No. : +63 33 3370392


�• Fosters a more productive local economy by attracting investors, thuscreating more job opportunities;

�• Increased tourist arrivals;�• Improved communication between LGU and private sectors in diverse

aspects of marketing and promotion; and�• Increased funding for capital and operating re requirements


�• Expecting much too soon�—marketing pay-offs usually take some time.There is a need to constantly motivate the players for long-term gains

�• Marketing behavior is unpredictable and demanding. Marketing plansshould be adapted to respond to these changes

3.3.3.3.3. PPPPPararararartnertnertnertnertnership Buildingship Buildingship Buildingship Buildingship Building: Strengthen collaboration and partnership withkey stakeholders and strategic partners.

4.4.4.4.4. MemberMemberMemberMemberMembership Deship Deship Deship Deship Devvvvvelopmentelopmentelopmentelopmentelopment: Provide members with wide range ofbusiness opportunities to market their products and services.

5.5.5.5.5. InsInsInsInsInstitutional Detitutional Detitutional Detitutional Detitutional Devvvvvelopmentelopmentelopmentelopmentelopment: Strengthen long-term competitivecapabilities of ICCB.

�• The Iloilo InThe Iloilo InThe Iloilo InThe Iloilo InThe Iloilo Invvvvvesesesesestment Prtment Prtment Prtment Prtment Promoomoomoomoomotion Centtion Centtion Centtion Centtion Centererererer

The Iloilo Investment Promotion Center is responsible for investment andtourism promotion in order to:

1. project Iloilo as premier agricultural and tourism center;2. promote agriculture and tourism investments3. fast-track implementation of infrastructures projects4. strengthen partnerships for investment and tourism promotion5. establish central business information support services to investors

The center provides a two-pronged service �– investment and promotion, andbusiness support.

1. Investment and Tourism Promotion:

�• adopts long and short-term investment promotion and tourism plansspecifying priority areas and activities

�• provides incentives and support measures to attract tourists andinvestors to Iloilo

�• establishes and maintains networks and contacts for investment andtourism promotion;

�• secures financial assistance for the operation of the organizations andprograms that support investment and tourism promotion;

�• fosters coordination of institutions, programs and initiatives around ashared vision for economic development of Iloilo City and Iloilo Province

�• recommends ordinances, rules and regulations for the implementationof investment and tourism promotion programs and projects

2. Business Support Services

�• provides key business information on demographic information,pricing schemes, and competitive assessment through access tolibrary and on-line resources

�• conducts training andeducation programs to promoteentrepreneurship, smallbusiness development andpromotion and tourismdevelopment

�• offers free consultation withexperienced andknowledgeable businessadvisor/volunteers

�• provides assistance onenterprise planning andpreparation of Industry studies,financing, businessregistration, exporting andimporting

A Technical Secretariat plans,implements, and coordinates theactivities of its committees. It serves asthe technical arm in exercising itsfunctions on linkage building andlegislative support, and on offeringbusiness support services.



Case 4: Local Action on Rural-Urban LinksGuimaras-Iloilo City Alliance (GICA)

Iloilo City and Guimaras are in the heart of Western Visayas and teeming witheconomic opportunities and potentials. There is a need for a propercoordination in terms of economic and infrastructure services that will

encourage investors in the area.

In order to hasten the economic development in the area, there is a need tocomplement and consolidate development efforts for more efficient andeffective service delivery to investors and community. This will ensurecompetitiveness of the area, there is a need to focus on key developmentpriorities such as ports, road system, and common investment policies toensure favorable investment climate.


�• Established open access to urban markets for rural stakeholders, thusspurring economic development in Guimaras and helping Iloilo City easilyobtain necessary products and services.

�• Established common framework for addressing infrastructure andeconomic development issues


�• The need to strengthen political links between rural and urban areas andbuild political trust to facilitate collaboration.

�• The possibility of an exploitative relationships if decision-making power inboth rural and urban areas is not shared



Hon. JC Rahman AHon. JC Rahman AHon. JC Rahman AHon. JC Rahman AHon. JC Rahman A. Na. Na. Na. Na. Navvvvva, MDa, MDa, MDa, MDa, MDGovernor, Province of GuimarasGuimaras Provincial CapitolSan Miguel, Jordan 5045Guimaras, PhilippinesTelfax. No. : +63 33 5813349 2371111Web: www.guimaras.gov.ph


The Guimaras Iloilo City Alliance (GICA) was organized to help improve theeconomic competitiveness of the participating LGUs through joint undertakingsin investment promotion, tourism development and promotion, planning andcoordination of infrastructure support services.

The alliance shall perform the following functions:

�• conduct joint planning and coordination of economic and infrastructureservices and projects�• develop common economic and infrastructure resources, information, toolsand methodologies for the common benefits�• share social, economic and infrastructure resources, information, tools andmethodologies for the common benefits�• coordinate implementation of common economic and infrastructure supportprojects�• train its economic and engineering departments�• operate shared tourism information center�• develop common tourism promotion campaigns



Case 5: Local Action on Investing in Natural CapitalInvesting in Environmental Initiatives for LED

Iloilo City�’s population is 365,820 (2000 census of population). During daytimeit reaches around 500,000 to account for the visitors and the transient laborforce residing outside the city. The increase in the city�’s population coupled

with the increase in the number of goods available has created a massive amountof solid waste vis-à-vis the eyesore.

The city generates about 300 tons of municipal solid waste (MSW) per day. Thecurrent per capita waste generation stands at about 0.70 kilograms per day.Likewise, there is a significant increase from the 1999 figures of 280 tons/dayand 0.642 kilograms/day for total waste generation and per capita wastegeneration, respectively. The city spends about PhP 2.4M monthly for itsgarbage collection services thru a private contractor.

Among the problems of the city include:

�• Flooding�• Ponding and inundation occur over a vast area of the city especially during

heavy rains coupled with high sea level�• The drainage system is inadequate and antiquated

Despite all these, Iloilo City is slowly emerging as the new green city in thePhilippines. Under the auspices of the US-AEP, the city , along with other Asiancounterparts, formulated a plan of action for the management of water andsanitation in their respective municipalities.


The establishment of a sustainable development program for the rehabilitationof Iloilo River and the establishment of an effective water supply and drainagesystem for the City of Iloilo includes:

1. establishment of a structural framework that would institutionalize theproject through enactment and enforcement of local ordinances thatwould enhance its early implementation,

2. promotion of a multi-sectoral arrangement for the protection andsustained development of the projects;

3. provision of adequate and quality water for the city�’s sustainable growth;and

4. provision for an adequate drainage system.

The project covers the preparation of a plan of action that included workingwith a multi-sectoral group to establish a master plan. Baseline data werecollected for the river implementation program and drainage system during thefirst year, an integrated improvement and development plan is formulated inthe second year, and in the second year to the fifth year the master plan will beformulated.

SpecifSpecifSpecifSpecifSpecific Pric Pric Pric Pric Project Descriptionsoject Descriptionsoject Descriptionsoject Descriptionsoject Descriptions

Iloilo Flood ContrIloilo Flood ContrIloilo Flood ContrIloilo Flood ContrIloilo Flood Control Prol Prol Prol Prol Projectojectojectojectoject..... This project aims to address the problem ofperennial flooding in Iloilo City and the neighboring municipalities. It is fundedby a loan from the Japanese government through the Japan Bank forInternational Cooperation (JBIC), approved on March 28, 2002. TheDepartment of Public Works and Highways, together with the municipality ofPavia and Iloilo City, was tasked to facilitate the necessary right-of-wayacquisition and resettlement activities to pave the way for the smoothimplementation of the project. They are now in the process of completing allpre-requisites for the implementation of the project. Relocation sites sufficientto accommodate the informal dwellers that would be displaced by the projectare being developed by the DPWH, which is the executing agency.

Iloilo RivIloilo RivIloilo RivIloilo RivIloilo River Rer Rer Rer Rer Rehabilitation Prehabilitation Prehabilitation Prehabilitation Prehabilitation Projectojectojectojectoject..... This project calls for the rehabilitation of the10-kilometer Iloilo River, which is actually an arm of the sea. A master plan hasalready been completed which envisions the watercourse to be a communityriver that promotes ecological balance, develop society�’s total well being andquality life, displays harmony between constructed and natural environmentsand above all, supports local, regional and national economic activities for amore progressive Iloilo City. It also identifies the different goals, objectives and




�• Inclusion of the Iloilo River rehabilitation in the list priority projectsand the creation of a multi-sectoral ad-hoc body to prepare initialpreparation for river improvement planning.

�• Preparation of the Iloilo River development master plan by the IloiloRiver Development Council and the Iloilo Business Club.

�• Attraction of the US-AEP and The Asia Foundation�’s assistance tohelp facilitate the preparation of the Iloilo River DevelopmentMaster Plan and Urban Design.

�• Establishment of the City Environment and Natural ResourcesOffice.

�• Introduction of development measures that included the partialrelocation of informal settlers around the river, enforcement ofprotective zoning, organization of Barangay Fisheries and AquaticResources Management Councils and construction of thepromenade.

�• Finalization of the City Environment Code which partly deals withwaste management and pollution control along the critical waterresource.

�• IEC campaigns, dredging activities, annual river clean-ups, andremoval of sunken debris, fish corrals and other obstructions havealso been made to arrest the deterioration of the river and itsimmediate environs.

�• The community pride as a high economic, environmental and socialperformer stimulates a sense of achievement.


�• While natural capital LED projects can generate profits, initialcapital is required to establish these infrastructures

�• There is a need to build consensus among stakeholders on therange of options and actions to be undertaken

�• The investments and management of natural capital LED projectsrequire technical expertise to achieve improvements and changes

�• It can be difficult to judge the success of natural capital projects interms of economic development especially when environmental,economic and social interests conflict with each other.

strategies in the aspect ofland use, environment,social, economic,infrastructure andtransportation that willencourage local andforeign investors.

Iloilo Solid WIloilo Solid WIloilo Solid WIloilo Solid WIloilo Solid WasasasasasttttteeeeeManagement PrManagement PrManagement PrManagement PrManagement Projectojectojectojectoject..... TheIloilo City governmentintends to operate a sanitary landfill in order to properly address the mountinggarbage disposal problem and to ward off imminent environmental and healthproblems that may occur due to the open dumpsite found in Mandurriaodistrict. The law of solid waste management, also known as the Ecological SolidWaste Management Act 2000, requires local government units to convert openor controlled dumpsites into sanitary landfills that should be operational by2007. The city has already made a preliminary design for the sanitary landfill assupported by Iloilo Flood Control Project. It will be located in the existingCalajunan dumpsite in Mandurriao that is about five to eight hectares. Theproject composed of four phases, with the first phase alone costing P48 million.Part of the plan for the realization of this landfill is to apply a build-operate-transfer scheme.


EngrEngrEngrEngrEngr. Noel Z. Hechano. Noel Z. Hechano. Noel Z. Hechano. Noel Z. Hechano. Noel Z. HechanovvvvvaaaaaCity Environment and Natural Resources OfficersCENRO Iloilo CityM. H. Del Pilar Street, MoloIloilo City 5000 PhilippinesTel. No. +63 33 3378262/ 3362879Email: [email protected] [email protected]

EngrEngrEngrEngrEngr. Jose R. Jose R. Jose R. Jose R. Jose Roni Poni Poni Poni Poni PeñalosaeñalosaeñalosaeñalosaeñalosaCity Planning and Development OfficerCity Planning and Development OfficeIloilo City Hall AnnexIloilo City 5000 PhilippinesTel. No.: 3373159

Hon. JerrHon. JerrHon. JerrHon. JerrHon. Jerry Py Py Py Py P. T. T. T. T. TreñasreñasreñasreñasreñasCity MayorCity of IloiloIloilo City Hall, Plaza LibertadIloilo City 5000 PhilippinesTel. No. : +63 33 3373573 3370085 / 335 1736Fax No.: +63 33 3350689Email: [email protected]

EngrEngrEngrEngrEngr. Raul Gallo. Raul Gallo. Raul Gallo. Raul Gallo. Raul GalloCity Public Services OfficerIloilo City Hall AnnexIloilo City 5000 PhilippinesTel. No.: +63 33 3377052Mobile: +63 916 5283144



IIIII am rather inclined t am rather inclined t am rather inclined t am rather inclined t am rather inclined to belieo belieo belieo belieo believvvvve that this is the lande that this is the lande that this is the lande that this is the lande that this is the landthat God gathat God gathat God gathat God gathat God gavvvvve te te te te to Cain.�”o Cain.�”o Cain.�”o Cain.�”o Cain.�”

A decade ago, one poor man from Guimaras could be grumbling with a similarline to deplore the widespread poverty that was gripping the island. Todaythough, that may no longer apply �– in the same manner that it does notanymore fit the now prosperous Canada when its shores failed to impressFrench explorer Jacques Cartier in 1534, prompting him to write that historicallamentation.

Truly, Guimaras was in dismal state then when it became a full-fledged provincein 1992. Most of its inhabitants were poor. There were not much investments tocreate jobs for the people and income for local governments, making the latterunable to deliver basic services. It was even included in the so-called �“Club 20,�”that infamous list of 20 poorest provinces in the Philippines during the onset ofdecentralization, as identified under the Social Reform Agenda of thenPresident Fidel Ramos.

In 1990, Guimaras had an unemployment rate of 15.4 percent, much higherthan the regional (Western Visayas) and the national rates of 11.7 and 8.5percent, respectively. The picture of poverty was much grimmer in the homes.According to a 1999 joint report by the United National Population Fund and theNational Statistics Office, 67.6 percent of households in the island had noaccess to safe drinking water while 74.3 percent had no sanitary toilets,resulting to diseases and redirection of hard-earned income for medicines andhospitalization.

The provincehood of Guimaras came shortly after the passage of the LocalGovernment Code of 1991, the law that transferred to local government unitsthe responsibility of delivering basic services, which was before a function ofthe national government. The law also devolved personnel, assets, equipment,and the though task of economic survival. Sadly, the new local governmentsthat were installed did not have the appropriate structures, leadership andtechnical competence and resources to handle the demands of �“devolvedgovernance.�”

Having to fend for itself and with little resources, Guimaras was in a quandaryon how to survive and at the same time address the basic needs of its people.There was clear dependence on national government for funds. Less than 14percent of financial resources are raised locally, and close to 86 percent ofexternal funds are in the form of Internal Revenue Allotments (IRA) for the threetowns that then comprise the province �– Buenavista, Jordan and NuevaValencia. (The two other towns of San Lorenzo and Sibunag were created later).

In 1995, Guimaras only earned PhP 65.2 million. It has gone helpless as therewere less funds to propel the economy. Poverty persisted. That same year, theCensus on Population showed that the poverty incidence in Guimaras based onthe food threshold was pegged at 75 percent, the highest in the region. Thedata meant 75 percent of its people could not afford the minimum foodrequirement to sustain their well-being.

Reducing Poverty, Reaping Progress



PPPPPoor But Ricoor But Ricoor But Ricoor But Ricoor But Richhhhh

The 60,465-hectare island is mainly an agricultural province growing rice,coconut and mango, its signature crop. The total area devoted to agriculture is48,378 hectares. However, most of the individual farms in Guimaras (68percent) are less than two hectares, giving less room for productivity. Further,only half of it belongs to the farmers themselves. In the coastal villages, on theother hand, marginal fisherfolks could not compete with commercial fishingvessels scouring the waters off the island, which leaves them with little catch.Workers, for their part, had to go to nearby Iloilo City to find jobs due to theabsence of employment opportunities in the island.

However, like the land that Cartiernamed �“Kanata�” which he laterrealized to be rich in natural resources,Guimaras is teeming with economicdrivers that it can readily tap to hurdlethe challenges that came with its newprovincial status. Given the rightframework and support for theirdevelopment, they can serve asvehicles to progress.

In agriculture, the island beams withfertile soil growing high-value crops like mangoes, coconut, cashew andPhilippine lime (kalamansi). In fishery, it is fringed with a wealthy fishingground yielding marine life enough to sustain a sizable population.Above all, it boasts of its tourism potentials, with its rich physical andcultural heritage providing postcard-perfect sceneries, exceptionalevents and exciting festivities.

Like any province in the Philippines, Guimaras grow rice. Of its agricultural land,67.6 percent are planted with the staple food. Coconut comes next, where atleast 954,200 trees tower across its length and breath. The average coconutproduction is 28 per tree per year with an estimated total production of42,146,080 per year. Copra production in 1995 was 5,591 metric tons.

Mango is however the most important commercial crop in the province. TheGuimaras carabao mango is one of the best in the world and is renowned for itssweetness and superior eating quality. In 1995, there were 3,996 mangogrowers, attending to 155,860 trees, 61 percent of them were fruit bearing.Certified by the US Department of Agriculture as free from mango pulp-weevil,Guimaras started to export mangoes to the United States in 2001. With at least

8,000 hectares of mango orchards, the island produced 11,182.72 metric tonsof mangoes in 2003.

Other important crops include Philippine lime (kalamansi), cashew, camote,vegetables, corn, cassava and legumes. There are about 1,312 kalamansifarms in the province, with a total of 555,302 trees producing 1,924.63 metrictons in 2003. At least 434 hectares of land in the island is also planted withcashew, which yielded 851 metric tons in 1991.

Guimaras is surrounded by rich fishing grounds, which include the GuimarasStrait, Iloilo Strait, Panay Gulf and the Visayan Sea. Fishing is a major economicactivity in 54 barangays, with at least 2,840 fishers who principally use non-motorized fishing crafts and gears consisting of hook and line and gill nets.From July 1995 to October 1996, the estimated catch in the province was8,604 metric tons. Meanwhile, its fishpond area totaled 1,658 hectares,yielding an average of 625 kilos per hectare per harvest. With milkfish as thedominant species cultured, production reached 2,410 metric tons in 1988.

The island has become synonymous withpicturesque beaches, alluring shore islets,panoramic farms, rustic countryside andculturally based festivals. Travelmagazines have featured spots like IslaNaburot, Costa Aguada and RaymenBeach. The Pagtaltal sa Guimaras and theManggahan Festival highlight its richheritage. It also boasts with historical andreligious destinations like Camp Jossman,Trappist Monastery and Balaan Bukid. In1993, the tourist arrival figure inGuimaras was 2,247. It jumped to 5,756

the following year and further to 12,394 in 1995. By 1996, it experienced atremendous increase of 67.4 percent, reaching 20,753.

The InnoThe InnoThe InnoThe InnoThe Innovvvvvationationationationation

With its various challenges, the provincial government of Guimaras has beenaggressive in its economic development initiatives. However, ineffectivecoordination of local economic development programs result to inefficientutilization of resources and capabilities. In answer, an economic developmentstrategy for the island was prepared, which identified three priority sectors �–agriculture, fisheries and tourism. Local economic development practices were



piloted to equip stakeholders with the capacity to implement projects gearedtowards poverty reduction.

Supporting Guimaras is the Canadian Urban Institute (CUI), a non-governmentorganization that provides Canadian know-how transfer through funding fromthe government of Canada. CUI assists Guimaras through the GuimarasEconomic Initiative (GEI), a program that is aimed at providing capacitydevelopment assistance to the provincial and municipal governments througheconomic strategy development and its implementation as well as initiate aninter-local government cooperation to sustain initial achievements in localeconomic development strategy processes.

The partnership program is focused on community-based and multi-stakeholderdevelopment planning and implements a process that involved all the threelevels of local governments, non-government organizations and civil society. Ithas since resulted to plans that now provide direction for the local governmentsin mobilizing human and financial resources for the achievement of theirpriority economic, environmental and social development objectives. To test ifthe plans work, pilot projects on the area of integrated solid wastemanagement, heritage tourism development and local economic developmentwere created.

Local Economic DeLocal Economic DeLocal Economic DeLocal Economic DeLocal Economic Devvvvvelopment Processelopment Processelopment Processelopment Processelopment Process

Local Economic Development (LED) offers local government, the private sector,civil society organizations and the local community the opportunity to worktogether to improve the local economy. It aims to enhance competitiveness andthus encourage sustainable growth that is inclusive. The purpose of LED is tobuild up the economic capacity of a local area to improve its economic futureand the quality of life for all.

Guimaras has fully tapped local economic development as a mechanism tocreate better conditions for economic growth and employment generation. Theprovince undertook the following process:

Getting Started by Examining Local Economic Development (LED) BestPractices. To find out what is applicable for Guimaras, a number of localeconomic development best practices were examined through various venues.During the pilot phase of the program, there was an exchange of professionalsbetween Canada and Guimaras. Canadian consultants shared their expertisewith local authorities. Guimaras professionals also went to Canada to studysuccessful local government planning, development approaches andmethodologies in engaging citizens. Case studies on best practices in LED werecompiled and shared with stakeholders to give them ideas on what other localgovernments are doing to hurdle the challenges that came with devolution.

Undertaking Economic Assessment. A participatory assessment of theisland�’s economy was conducted using the SWOT (strengths, weakness,opportunities and threats) analysis. These were conducted in all of the 96barangays of the province. Information obtained provided a comprehensiveview of barangays�’ priority needs and was an important step in the finalizationof each of the Strategic Barangay Development Plan. All the other findings andpriority issues were gathered to form a Provincial Situation Analysis, whichcontains the profile of the island�’s economic base, market profile, businessresources and economic trends and forecasts. The preparation engaged closeto 39 stakeholders from the private sector, cooperatives and officials of thelocal government units.

Preparing Local Economic Vision and Strategy. A local economicdevelopment agenda was developed based on local economic resourceanalysis, various reports from workshops and consultant reviews. The strategycalls for the attainment of food self-sufficiency for farmers and fisherfolks, theavailability of necessary basic infrastructure to support local economicdevelopment, guaranteeing efficient and responsive local government



decisions in business development approvalsprocess and promotion of community-basedtourism enterprises. The plan was thenpresented to stakeholders for validation andapproval. The strategy provided a framework forcoordinated focus for economic developmentefforts in Guimaras. A project approach forstrategic economic planning has been designed,leading to the formation of a multi-stakeholderteam �– the Provincial Implementation Task Forceon Economic Development (PITF) �– establishedby the provincial government to coordinateimplementation of economic developmentstrategy. It is composed of representatives fromkey provincial departments, five municipalitiesand the business and private sectors. The roleand functions of the PITF was clearly defined. Acomplementation workshop was conducted toreview economic plans and develop coordinatedeconomic strategy on investment promotion and marketing. Subsequently, the�“Guimaras Provincial Economic Agenda�” was born �– a document that containedsectoral plans for agriculture, fishery and tourism. The agenda was laterintegrated in the Guimaras Medium Term Provincial Development Plan(GMTPDP) of 1998-2004.

Identifying Appropriate Organizational Structure for LED. The SWOT analysison Guimaras found the need for an appropriate organizational and structuralmachinery for economic development and investment promotions. Eventually, itwas recommended that an organizational model for Guimaras that will takecharge of the implementation of the local economic plans, investmentpromotion and related initiatives would be created. The organization is asustainable mechanism for the local economic development programs of theprovince. Thus, the Guimaras Provincial Economic Agenda and the GuimarasMedium Term Provincial Development Plan pushed for the creation of theProvincial Economic Development Office (PEDO) that will coordinate economicdevelopment efforts in order to maximize human and financial resources toeffectively achieve the province�’s economic goals and targets. The officebecame operational in January 2004, after a reorganization was undertaken inthe provincial government.

Developing Local Capacity. To promote local economic development, thecapacities of local governments were enhanced through training-workshops andcoaching. These include those in Economic Strategy Development, Investment

Promotion Planning, Industry Study Analysis,and Tourism Planning and Management,among others. The services of Canadianexperts were tapped to provide technicalsupport and on-site trainings tostakeholders. Workshops also involvedgovernment agencies like the Department ofTrade and Industry and the Bureau ofInvestment. There were also study tourswithin the Philippines (Cebu and Bohol in theVisayas, and Davao and Samal Island inMindanao) to look at successful economicinitiatives in these areas and learn howthese were carried out with the intent ofechoing them back in Guimaras. Officialsalso visited Singapore and Malaysia to learnfrom the experiences of other Asiancountries not only in the area of economicdevelopment but also in urban planning,

tourism promotion, infrastructure management, environmental sustainabilityand social service delivery.

Implementing Actions and Demonstration Projects. The implementation ofdemonstration projects sought to test acquired capacity of stakeholders inimplementing projects geared towards poverty reduction, enhancement of theprovincial revenue base, upgrading local services, increasing the ability of localgovernments to offer greater opportunities for local investments and givesupport to social and environment services. These include:

The Provincial Economic Development Office (PEDO)

Created in January 2004, PEDO is tasked �“to provide strategic direction,leadership and action to strengthen the Guimaras economy to support theprovince�’s poverty reduction goals.�” The office is guided by the vision ofmaking Guimaras �“the preferred tourism and investment destination foragriculture, fishery and tourism in the country.�” The creation of PEDOseeks to foster a supportive and competitive investment climate inGuimaras, retain and expand existing business in agriculture, fishery andtourism, attract new investments in priority sectors of agri-tourism,agriculture and fisheries to the island, manage provincial governmententerprises and ensure effective business support policies and services,benchmark progress in Guimaras and best practices nationwide, andstrengthen the entrepreneurial capacity of cooperatives, associations andgroups.



Guisi Community-based Heritage Tourism

The Guisi Community-basedHeritage Tourism is designeddevelop and promote the cultural,historical, natural, livelihood andreligious heritage of the province.One of its aims is to launch anenvironmentally sensitive andcooperative form of communityeconomic development. The projectis being implemented by thetourism division of PEDO, themunicipality of Nueva Valencia and the Barangay Council of Dolores, thevillage where the project in being piloted. The Barangay Dolores TourismCouncil (BDTC) is managing it. Guisi is a sitio or a hamlet that boasts of itsnatural, cultural and historical heritage.

Panindahan sa Manggahan

The Panindahan sa Manggahan, first implemented in 2003 during thecelebration of the Manggahan Festival, showcased how simple coachingcan develop the capacity of local government personnel in organizing,promoting and managing a local activity like a farm market day tour. Heldat the Jordan (Alibhon) Food Terminal Market, it was aimed to highlight themarket�’s role in the town�’s economy. Posting record sales of PhP 700,777in just one day, the activity drew domestic tourists from Iloilo City. Everyyear since then, the Panindahan sa Manggahan has become a regularfeature of the Manggahan Festival, an annual celebration marking theprovincehood of Guimaras.

Public-Private Partnership in Guimaras Tourism Development

A Galing Pook awardee, the Public-Private Partnership in Guimaras TourismDevelopment is an innovative approach that sought to facilitate theparticipatory planning and development of the tourism industry in theprovince to increase tourism arrivals and receipts, thereby contributing tothe poverty reduction efforts of the provincial government. It uses fourapproaches �– participatory planning, marketing and promotion,community-based initiatives and tourism support services. All theseundertakings were witnesses to a close collaboration between theprovincial government and national government agencies, and non-government organizations and communities.

Agri-Fishery Development Program

The Agri-Fishery Development Program aims to contribute security andimproved standard of living of marginal fisherfolks, sustenance fisherfolksand small processors through increased income. It also intends to developproductive and replicable agri-fishery development models, promote agri-fishery processing that support agri-fishery development and intensifymarketing and institutional support to agri-fishery development. Thesewere carried out through the integration of duplicating services to ensureefficiency and effectiveness in service delivery.

Monitoring and Evaluation. Seeing to it that programs and demonstrationprojects are continuously assessed for further improvements, key personnelinvolved in project development and implementation were trained formonitoring and evaluation. An economic monitoring system for Guimaras wasdeveloped to serve as the economic barometer for the provincial economy.Through a workshop, stakeholders were then equipped with the tools andprocess of economic monitoring system. An economic monitoring plan was alsocompleted based on the outputs of the workshop. The economic monitoringsystem serves as guide in tracking the economic health of the province keyindicators such as agriculture, fishery, tourism, trade and industry, andbusiness support services. Results were then shared with stakeholders forpurposes of learning and of further improving project implementation.

Guimaras GainsGuimaras GainsGuimaras GainsGuimaras GainsGuimaras Gains

By utilizing local economic development to answer its needs, Guimaras hasmade a number of inroads. Its economic agenda has been formulated andadopted in the provincial development plan. Characterized by a community-based �“bottom-up�” approach to planning, it was carefully crafted, taking intoconsiderations various aspects of the province�’s economy. Considering that thefeatures of the agenda were contributions of various stakeholders, it was notdifficult to push for its adoption.

The capacity of its stakeholders have been developed and strengthened byseries of workshops and trainings as well as by study tours and on-the-jobcoaching. Stakeholders are now equipped with necessary skills and knowledgein investment promotion, proposal writing, strategic planning, business processimprovement, industry analysis and economic monitoring. The organization andoperationalization of the Provincial Economic Development



Office (PEDO) also spelled a lot in building up the economic capacity ofGuimaras. Providing strategic direction, leadership and action to strengthen thelocal economy and to support the province�’s poverty reduction goals, PEDO alsofosters a supportive and competitive investment climate in Guimaras. It alsooperates the Guimaras Trade and Information Center (GTIC), a showroom of allGuimaras products and services that also serves as a one-stop informationcenter for tourists, investors, existing businesses, and business associationsresponding to investment inquiries with data and advices.

Tourism is gaining grounds, as can be gleaned from the data on tourist arrivals.In 2002, 1,223 foreign tourist and excursionists came to Guimaras. By 2003, itrose by 33.2 percent to 1,629 and nearly doubled at 2,994 by 2004. Domestictourists and excursionists continue to come in droves to Guimaras. From108,206 in 2002, in went up to 122,429 in 2003, and further up to 133,638in 2004. Total tourist receipts experienced the same trend from 2002 to 2004.Last year�’s receipts totaled PhP 159.1 million, an increase of 24 percent overthe 2003 figure of PhP 128.3 million. Of late, Guimaras has partnered withIloilo City in creating the Guimaras-Iloilo City Alliance (GICA) to improve theeconomic competitiveness of the two places through joint undertakings, one ofwhich is in the area of tourism development and planning. The �“Visit Iloilo-Guimaras�” project was also launched to market the two areas as tourismdestinations.

GICA also called for the joint undertakings in investment promotion andcoordination of infrastructure support services, both of which are part of theeconomic development thrusts of Guimaras. Specifically, the agreement calledfor the strengthening of investment policies and improvement of road systemsto ensure favorable business climate. Iloilo City agreed to upgrade its portfacilities that serve as jump-off point to the island-province. This complementsthe RORO (Roll-on Roll-off) Sea Transport System that is already in place. Itenabled the easy transport of heavy and light vehicles, freight and passengersbetween Iloilo and Guimaras.

Guimaras has also acquired a Geographic Information System (GIS), atechnology that has been acknowledged to improve local governance, sincemajority of the government�’s day-to-day activities involve the use of spatialdata. It can specifically be used for effective land use planning; zoning; socio-economic profiling; design, implementation and monitoring of governmentfacilities and infrastructure; site planning and development; resourcemanagement; environmental monitoring; and mapping of government land-based assets, among others. The Guimaras GIS project is considered alandmark effort in the country, making it the only province implementing thissystem using microwave communication technology to achieve real-time or near

real-time exchange of business information between the provincial governmentand each municipality.

Telecommunications has dawned in the island. It is already linked to the worldby telephone and mobile services is available. In 2003, at least 9,520telephones lines have been installed in the towns of Jordan and Buenavista. APhP 115-million, 3.4-megawatt bunker oil-fired Guimaras Power Plant wasrecently inaugurated to address a decade-old problem in the island�’s powersupply. The project was a result of the electricity supply agreement signed inNovember 2003 between Guimaras Electric Cooperative (Guimelco) and the



Trans-Asia Oil and Energy Development Corporation, the firm that will construct,finance, operate and maintain the power plant. Currently, Guimelco provideselectricity throughout the island, sourcing its power from the National PowerCorp. (Napocor) through a 2.5-km submarine cable.

Efficient and effective delivery of services is a major thrust of the localleadership in Guimaras, which continuously seeks to develop and strengthen itsgovernance capacity and policies, and improve its systems. Responsivegovernance is considered an economic driver. Guimaras recognizes that theisland�’s potentials as well as the development assistance that it has beenreceiving can never trickle down to the poorest of the poor if it does not haveresponsive governance. As such, the local leadership readily adoptsrecommendations made in multi-stakeholder consultations and workshops.

Ensuring SusEnsuring SusEnsuring SusEnsuring SusEnsuring Sustttttainabilityainabilityainabilityainabilityainability

To ensure sustainability of programs beyond the change of political leadership,structures were set up through the enactment of ordinances. The ProvincialEconomic Development Office (PEDO) was created under an ordinance re-organizing the provincial government of Guimaras. The Local Government Codeof 1991 allows every local government unit in the Philippines to design andimplement its own organizational structure and staffing pattern based on itspriority needs and service requirements.

The same law also allowed Guimaras to explore cooperative arrangement withother local government units to pursue common development agenda. In thislight, Guimaras partnered with neighboring Iloilo City to form the Guimaras-IloiloCity Alliance (GICA) to improve the economic competitiveness of the two placesthrough joint undertakings in investment promotion, tourism development andplanning and coordination of infrastructure support services. The GuimarasProvincial Investment Code, now in its final draft, will outline policies forinvestors and business in the province in anticipation of capital influx that maycome as support infrastructures and services are being strengthened.

FFFFFuture Concernsuture Concernsuture Concernsuture Concernsuture Concerns

Guimaras is looking at the future as it wishes to see more achievements for theisland. Foremost in its mind is to sustain and coordinate provincial andmunicipal economic planning, be it long-term or short-term, to better harmonizestrategies and objectives. The improvements and coordination of supportinfrastructures through partnership agreements and institutional organizationsensure the sustainability of the program. The comprehensive investmentordinance and institutionalized policies that were put in place also work in thesame vein.

Guimaras will give focus on the development of its key industries to show howLED impacts on them. Agricultural research capacities of local governments willbe improved to better guide them in planning and implementation ofagricultural endeavors. It intends to support employment and manpowertraining to assure investors of a sure supply of qualified workers for industriesthat may relocate in Guimaras. It will seek to intensify marketing and promotionactivities to serve as catalysts for investment generation.

Local economic development paints a bright picture over a gloomy canvass thatonce enveloped Guimaras Island.



Case 6: Local Action on Organizational Development for LEDProvincial Economic Development Office

Guimaras was a poor island when it became a province in 1992, a yearafter the Local Government Code was enacted. The people agonize overpoverty and unemployment. By 1995, its poverty incidence based on the

food threshold was a high of 75 percent, which meant most of its people couldnot afford the minimum food requirement to sustain their well-being. Theprovincial revenue was relatively low due to the absence of investments,rendering the local government incapable of delivering basic services.

With vast resources that can provide the much-needed impetus for growth, thelocal government found it needed an arm that would coordinate economicdevelopment efforts to effectively achieve economic goals and targets. Turningto the Local Government Code of 1991 for help, it also found it has the libertyto design and implement its own organizational structure and staffing patternbased on its priority needs and service requirements. Thus, in January 2004,the Provincial Economic Development Office (PEDO) was born.


The Provincial Economic Development Office (PEDO) provides strategicdirection, leadership and action in strengthening the Guimaras economy andsupports the province�’s poverty reduction goals. PEDO is tasked to coordinatethe implementation of all economic activities and provide technical andadministrative support to municipal governments in the area of trade andinvestment, tourism, enterprise development and cooperative development.

The mandate of PEDO is as follows:Foster a supportive and competitive investment climate in Guimaras;Retain and expand existing businesses in agriculture, fishery and tourism;Attracting new investments in priority sectors of agri-tourism, agricultureand fisheries;Manage provincial government enterprises and ensure effective businesssupport policies and services;Benchmark progress in Guimaras and best practices nationwide;Strengthen the entrepreneurial capacity of cooperatives, associations andother groups.

The head of PEDO reports directly to the governor. The key staffs are in-chargeof tourism promotion, investment promotion, employment generation andenterprise management. The office is also tasked to build partnerships andlinkages with other provincial departments, municipal governments, nationalgovernment agencies and business sector to implement various economicprojects and programs.

PEDO has three divisions:Tourism Development �– in charge of tourism planning and implementation,monitoring, evaluation and promotion and marketing;Cooperative Development �– takes care of cooperative, farmer andfishermen organization development and training, linkage building andnetworking and technical assistance to cooperative management; andTrade, Investment and Employment Promotion �– handles investmentpromotion, trade and development and networking and marketingemployment assistance, enterprise planning and business development,support services development and management, as well as resourcemobilization.




Improved organizational capacity to focus on economicpriorities of the provinceVenue for facilitating information exchange, policydevelopment and enterprise trainingAvailable support for existing and prospective enterprises inthe province


Businesss development alone will not ensure povertyreduction. It should be coupled with measures to addressequity problems in economic developmentThere is a need to build staff capacity in key functionalareasToo few resources considering more demand for PEDOservices


MrMrMrMrMr. R. R. R. R. Ruben Coruben Coruben Coruben Coruben CorpuzpuzpuzpuzpuzProvincial Economic Development OfficerProvincial Economic Development OfficeProvince of GuimarasSan Miguel, Jordan 5045Guimaras PhilippinesTel. No. +63 33 2371134Mobile: +63 917 3026920




Case 7: Local Action on Attracting InvestmentAttracting Outside Investment for the Guimaras GIS

Since Guimaras became a province, it has relentlessly pursued localeconomic development programs to better its fiscal standing as a localgovernment. A major source of income of local government units is real

property taxes. To increase their tax collection base, local governmentstraditionally increase tax rates. But Guimaras is faced with the dilemmabetween increasing tax rates and the capacity of its populace to pay highertaxes amid economic difficulties. Instead of increasing tax rates, it worked tomake its collection more efficient.

Guimaras believe that it is better to efficiently collect taxes than pass on totaxpayers the burden of offsetting shortfalls by increasing taxes. Putting inplace a system that will expedite the assessment and processing of realproperty valuation can carry this out. Such a system can be provided by a GIS-based tax mapping technology that can accurately process and update data,reducing the time of LGU personnel in doing assessment works and eliminatingred tapes.


The Geographic Information System (GIS) for Guimaras Project has the followingobjectives:

To establish a geographicdatabase;To improve mapping systemTo develop a multi-purposeparcel data throughCoordinate Geometry (COGO)and Technical Description(TD) Mapping;To generate updated taxmaps;To improve local capabilitiesthrough GIS training.

GIS has been acknowledged to improve local governance, since majority of thegovernment�’s day-to-day activities involve the use of spatial data. Thistechnology can specifically be used for effective land use planning; zoning;socio-economic profiling; design, implementation and monitoring of governmentfacilities and infrastructure; site planning and development; resourcemanagement; environmental monitoring; and mapping of government land-based assets, among others.

Three different GIS applications were developed for Guimaras province: theReal Property Tax Administration System, the Business Permits and LicensingSystem, and the Billing and Collection System. Having a good database of theresources of the province can make Guimaras more attractive to investors.



Considering that theestablishment of a GIS-basedsystem requires large financialinvestment, Guimaras searchedfor investors or partners inimplementing the project. F. F.Cruz and Co. that has beenoperating in the island forseveral years through itsshipping industry has beenidentified as a possible partnerfollowing its recentadvancement in GIS through its Survey Geomatics Division.

Owing to the pioneering nature of the project, F. F. Cruz is likewise in search of apartner LGU to work with in order to showcase the benefits of the technology.For Guimaras project, a soft financial arrangement has been proposed; only 35percent initial payment was required and the remaining 65 percent will bespread over years of equal installments with the first payment to be made oneyear after full operationalization of the project.

The Guimaras GIS project is considered a landmark effort in the country, basedon the component activities and the approach used. Guimaras is a pioneer interms of the technology known as datasets, where geo-rectified aerialphotographs (orthophoto maps) and parcel data generated through technicaldescription mapping, are linked and fitted together. Furthermore, Guimaras isthe only province implementing this system using microwave communicationtechnology to achieve real-time or near real-time exchange of businessinformation between the provincial government and each municipality.

The project comprised the conduct of aerial photography and ground controlsurvey using Global Positioning System technology, the generation oforthophoto maps, geographic database development, technical descriptionmapping, GIS applications development, the provision of hardware andsoftware, microwave radio networking of the provincial capitol and municipalhalls, and capability building through training and technology transfer.


MrMrMrMrMr. Jimm. Jimm. Jimm. Jimm. Jimmy S. Babany S. Babany S. Babany S. Babany S. BabanProvincial Planning and Development CoordinatorProvince of GuimarasSan Miguel, Jordan 5045Guimaras, PhilippinesTel. No.: +63 33 2371384Mobile: +63 917 3026920



In many instances, the GIS for Tax Mapping has generatedinformation on the tax base of the province and thus indicate someeconomic opportunities in terms of areas for investmentsThe local staff of the provincial governments have discovered newknowledge and skills that will guide tem in revenue generationThe project provided opportunity to exchange technical knowledgeon financing options which was used in establishing the project


There are many potential problems with developing and revising taxordinances as results of GIS technologyThere is a need to balance the interest of investors in funding theproject and the needs and the ability of the provincial governmentto �“repay�” the value of GIS technology.



Case 8: Local Action on Sustainable TourismGuisi Community-based Heritage Tourism Project

Guimaras identified three economic drivers that can propel its economy �–agriculture, fishery and tourism. The island has numerous tourismpotentials that can generate much-needed investments. It boasts of

natural, cultural, historical and religious attractions. But aside from attractingoutside capital to develop the tourism industry, it also encouraged communitiesto invest on their own assets so they can directly reap the benefits.

One such community is Guisi, a coastal hamlet in Barangay Dolores in NuevaValencia town with a rich natural, historical andcultural heritage. It is home to a Spanish-eralighthouse, a white-sand beach, a cave, a waterfall andpeople that have preserved their indigenous culture. Itwas found to be a perfect spot to pilot anenvironmentally sensitive and cooperative form ofcommunity economic development endeavor.


The Guisi Community-based Heritage TourismProject is designed to assists current efforts inGuimaras in developing and implementingtourism in order to develop and promote thenatural, cultural, historical and religiousheritage of province. It is being implemented by

the Provincial TourismOffice, the Municipality ofNueva Valencia and theBarangay Council ofDolores and beingmanaged by the BarangayDolores Tourism Council,Inc.

The project offers a 2-day 1-night tour package. Developedby the Project Management Team, it highlights the cultureof Barangay Dolores being related to the preservation ofthe Guisi lighthouse and promoting awareness and

protection of marine resources around the area. As part of the package, guestswill experience a karosa ride, welcome songs by children, a welcome drink, andboating around Dolores Strait and other nearby barangays.

Guided by members of the Kapisanan ng mga Maliliit na Mangingisda ngDolores (KAMAMADO), one could also experience varied methods of catchingfish used by the fishermen like using nets, hook and line and others. Thesemethods help in preserving the dwindling marine resources of the municipality.Crystal clear waters also offer a view of the corals below.

In the afternoon, one could experience local barangay life such as tubagathering from the coconut trees together with the local people. After dinner,guests will be presented with a dance drama featuring the students of theDolores Elementary School and the elderly as they relate Dolores�’ history andcultural heritage using local instruments.



The second day of the package will lead the guests to a scenic trek toPanaloron Falls offering a magnificent view of Guimaras Strait. With theassistance of the Barangay Tanods as tour guides, one could also experiencehill climbing around 150 meters above sea level and witness the scenic view ofDolores and its environs. Guests could enjoy swimming on a clean and pristinewater of Guisi.

The tour package cost varies depending on the number of guests. An averageof P1,450.00 per individual for a group of six (6) persons will be chargedcovering the karosa ride, boating, trekking, meals (2 lunch, 1 dinner and 1breakfast), accommodation, tour guide services, cultural presentation,roundtrip transfer from Iloilo City to Guisi.


Supported local economic development by creating entrepreneursfro informal sectorBuilds local tax base from additional income derived from theheritage tourism packagesSupported the preservation of environmental and economic healthof the barangay.


Expensive infrastructure upgrades�—there is a need for more basicinfrastructure like access roads, markets and water facilitiesThe cost of managing the project using cooperative structure willlikely be expensive considering the start up expenses ofestablishment


MrMrMrMrMr. R. R. R. R. Ruben Coruben Coruben Coruben Coruben CorpuzpuzpuzpuzpuzProvincial Economic Development OfficerProvincial Economic Development OfficeProvince of GuimarasSan Miguel, Jordan 5045Guimaras, PhilippinesTel. No. +63 33 2371134Mobile: +63 917 3026920


Hon. Diosdado GonzagaHon. Diosdado GonzagaHon. Diosdado GonzagaHon. Diosdado GonzagaHon. Diosdado GonzagaMunicipal MayorMunicipality of Nueva ValenciaNueva Valencia, Guimaras

MrMrMrMrMr. Allan Gaitan. Allan Gaitan. Allan Gaitan. Allan Gaitan. Allan GaitanManagerGuisi Heritage Tourism ProjectBarangay DoloresNueva Valencia, GuimarasMobile: +63 916 9746983

Ms. AmMs. AmMs. AmMs. AmMs. Amparparparparparo Buncado Buncado Buncado Buncado BuncadMunicipal Tourism OfficerMunicipality of Nueva ValenciaNueva Valencia, GuimarasMobile: +63 926 3317404



Case 9: Local Action on Partnerships in TourismPublic-Private Partnership in Guimaras Tourism Development

Tourism has been identified as the cornerstone of the economic development of Guimaras. The rationale for the choice was obvious and needs nolengthy explanation. The 60,457-hectare island-province is teeming with

tourism potentials �– from pristine beaches and scenic landscapes to colorfulfestivals and rich cultural traditions. In short, tourism promises a lot forGuimaras.

However, its tourism industry wasin disarray due to uncoordinateddevelopments, low communityawareness, low capital invest-ments and poor quality of tourismproducts. Developers did not takeinto consideration specific landuses and environmental impacts.Community participation was poorbecause they were uninformed ofongoing programs. As a result,investors shy away.


To fully develop the industry,Guimaras encourage public-private partnership or 3Ps, an innovative approachthat sought to facilitate the participatory planning and development of thetourism industry in the province to increase tourism arrivals and receipts,thereby contributing to its poverty reduction efforts. Four approaches wereused:

Participatory Planning. Stakeholders were brought together to draw up atourism master plan, develop new programs, and install monitoring andevaluation systems for the tourism industry. This gave them a sense ofownership over plans and projects, thus generating their full cooperation toensure its success.

Marketing and Promotion. To tap the vast market of tourism and makeGuimaras competitive, new festivals and events were organized andpromotional materials were developed. Tour destinations were upgradedand facilities improved to make them more attractive. Participation intourism fairs was encouraged to expose Guimaras products.

Community-based Initiatives. Community-based tourismprojects were encouraged by assisting locals in planning andimplementing their own initiatives. This was carried out by raisingtheir awareness on the impacts and benefits of tourism and bydeveloping their capacities in ensuring the sustainability of theirrespective initiatives.

Tourism Support Services. The provincial government helpedset up guest assistance centers and turned these over to themunicipalities for management. The Guimaras Trade and

Information Center (GTIC) was opened to showcaseproducts and services. Tourism groups werestrengthened and provided with capacity-buildingsupports.

New products have been developed and establishedones have been improved. Farmers and fishers havebeen formed not only for agriculture and fisheryproductivity but also to support tourism-relatedactivities. Industry groups like tour guides, jeepneyand tricycle drivers, pumpboat operators, resortowners and producers were strengthened, makingthem effective tourism front-liners. These madeGuimaras more competitive and attractive, a can be

gleaned from the steady increase in tourist arrivals. This resulted to theexpansion of the revenue base of local governments and more economicopportunities for the people.

Public-Private Partnerships in Guimaras Tourism Development is a Galing Pookawardee in 2004.




The results of the intervention introduced by CUI are remarkable. Foreigntourist and excursionist arrival figures showed that from 1,223 in 2002, itrose to 1,629 in 2003. Last year, the figure was a high 2,994. Domestictourists and excursionists continue to come in droves to Guimaras. From108,206 in 2002, in went up to 122,429 in 2003, and further up to133,638 in 2004. Gleaning from the numbers, it is obvious that tourismspelled good business for Guimaras. What is more remarkable is the factthat Guimaras has been trimming down its tourism budget over the pastthree years but continues to experience growth in tourism arrivals as wellas in tourism receipts in the same period.

In 2004, for example, Guimaras only allocated 1.6 million pesos fortourism but by the end of the year, it recorded a total tourism receipts of ahigh 159.1 million pesos! The latter figure was 24-percent hike over the2003 receipts of 128.3 million pesos, where the tourism budget was 2.98million pesos. In 2002, tourist receipts totaled 53.3 million pesos while thebudget was 4.08 million pesos. From a meager budgetary allocation fortourism that goes slimmer each year, the provincial government hasrecorded not only huge but also increasing returns in its investments.

The increase in tourist arrivals also spelled more jobs and employmentopportunities in the province. In 2004, resorts in Guimaras employed 421personnel, 111 were permanent and 191 were seasonal workers. The restworked as tour guides.


To sustain the gains of Public-Private Partnerships in Tourism Developmentin Guimaras, organizational structures and systems were institutionalized.These include the creation of the Provincial Economic Development Office(PEDO) whose mandate is to support the promotion and marketing of theprovincial tourism program. Municipal Tourism Offices, which regulatestourism activities in the municipal level, and Barangay Tourism Councils,which help implement community-based projects, were strengthened andmade fully functional. Tourism ordinances were enacted to provide supportmechanisms for programs and projects.

Communities and private sector collaboration must be maximized. Withouta strong collaboration, there could never be effective partnership anyway.Moreover, partnership is achievable when the motivation is economics, aclear proof to a wisecrack that says �“money is not the problem but it is thesolution.�” Lastly, it is clear that education and training are a must to turnstakeholders into partners for development.


MrMrMrMrMr. R. R. R. R. Ruben Coruben Coruben Coruben Coruben CorpuzpuzpuzpuzpuzProvincial Economic Development OfficerProvincial Economic Development OfficeProvince of GuimarasSan Miguel, Jordan 5045Guimaras, PhilippinesTel. No. +63 33 2371134Mobile: +63 917 3026920




Case 10: Local Action on �“Buy Local�” CampaignsFarm Marketing Support Through GTIC and Panindahan sa Manggahan

The absence of employment opportunities inGuimaras and the little earning derived fromtraditional farming and fishing compelled its

people to process fruits and vegetables, plant high-value crops and develop novelty products toaugment their income. However, no matter howsaleable they can be, their production could not besustained because of the absence of marketingopportunities and services.

To support these endeavors, the local governmentof Guimaras introduced mechanisms that can serveas venue for small-scale entrepreneurs in marketingand promoting their products to generate returns,and at the same time encourage them to improveproduct quality for further sustainability of theirendeavor. Among these mechanisms are theestablishment of the Guimaras Trade andInformation Center (GTIC) and the initiation of thePanindahan sa Manggahan.


The Guimaras Trade and Information Center (GTIC)is a showroom of all Guimaras products andservices that also serves as a one-stop informationcenter for tourists, investors, existing businesses,and business associations responding toinvestment inquiries with data and advices. It alsoworks with site selectors to promote newinvestments in Guimaras and conducts trainingsand provides business development services. GTICsupports small entrepreneurs in trade andinvestment promotion, provides business andeconomic information, promotes Guimaras tourismand expedites investment generation for the island.

GTIC�’s goal is to promote a supportive andcompetitive climate that will enable Guimaras toattract new investments on fishery, agriculture andtourism. Managed by the Provincial EconomicDevelopment Office (PEDO), it also serves as thebody responsible to promote linkages among smalland medium enterprises (SMEs) with the nationaland local governments. GTIC plays a vital role as avenue to coordinate efforts in achieving the goal ofeconomic development for the province. GTIC�’sconstruction was undertaken with fundingassistance from the Canadian Urban Institute (CUI).

The Panindahan sa Manggahan is a farm marketday tour event directed to attract domestic touristsof Iloilo City and Western Visayas, as a means ofpromoting the agricultural, fishery, industries andlocal culture and traditions of Guimaras.

First implemented in 2003 during the celebration ofthe Manggahan Festival, it highlight the importantrole of the market in boosting the local economy.

Held at the Jordan (Alibhon) Food Market, itprovides economic opportunities for farmers andfishermen, local craftsmen and artists to showcasetheir produce and subsequently earn income fromthe event. It also creates awareness on theagricultural and fishery and tourism potentials ofthe province.

It also relives the role of the Alibhon public marketas the major trading center of the province whichhas traditionally been the main buying center foragricultural produce, fish and local delicacies andhandicrafts in the past, attracting traders andconsumers from Iloilo City and province of Iloilo.




The first Panindahan sa Manggahan posted a record sales of PhP 700,777in just one day. It also drew domestic tourists from Iloilo City. Every yearsince then, the Panindahan has become a regular feature of theManggahan Festival, an annual celebration marking the provincehood ofGuimaras.

The total sales of GTIC from January to September 2005 is PhP 1.295million.


Sellers from other local governments might complain that selectionof products for sale in the GTIC favor only membersProduct quality and availability is not consistent for some items.Forecasting us important activity in ensuring constant supplyLack of budget for center infrastructures like display counters, tables,etc to ensure the excellent product presentationSustainability of Panindahan rests on the motivation of local vendorsassociation since the bulk of the responsibilities rests on them


MrMrMrMrMr. R. R. R. R. Ruben Coruben Coruben Coruben Coruben CorpuzpuzpuzpuzpuzProvincial Economic Development OfficerProvincial Economic Development OfficeProvince of GuimarasSan Miguel, Jordan 5045Guimaras PhilippinesTel. No. +63 33 2371134Mobile: +63 917 3026920

Ms. Angeles GabineMs. Angeles GabineMs. Angeles GabineMs. Angeles GabineMs. Angeles GabinettttteeeeeTourism SectionProvincial Economic Development OfficeProvince of GuimarasSan Miguel, Jordan 5045Guimaras, PhilippinesMobile: +63 927 4185523



About CPPPGUGAbout CPPPGUGAbout CPPPGUGAbout CPPPGUGAbout CPPPGUG

The Canada-Philippines PCanada-Philippines PCanada-Philippines PCanada-Philippines PCanada-Philippines Pararararartnertnertnertnertnership Prship Prship Prship Prship Project foject foject foject foject for Good Uor Good Uor Good Uor Good Uor Good UrbanrbanrbanrbanrbanGoGoGoGoGovvvvvernanceernanceernanceernanceernance is a four-phase initiative funded by the CanadianInternational Development Agency (CIDA) under the International

Partnership Program for Good Urban Governance that supports the Philippines�’continued thrust towards decentralization of power to local authorities andempowerment of communities in local decision-making, as set forth in the1991 Local Government Code.The geographic focus of the project is the Western Visayas Region, one of thepriority areas for intervention under CIDA�’s Country Development Framework.

The Canadian Urban Institute (CUI) works with several local and regionalgovernment units in the region, as well as with national level agencies with alocal development mandate. The project is strengthening the capacity of localauthorities to promote sustainable development, good governance andcommunity involvement in decision-making. The project aims to assist theselected local government institutions in Western Visayas to achieve moreefficient and equitable delivery of economic, environmental and social servicesthrough the promotion of inter-local governmental cooperation and good urbangovernance.

The project consists of three activity components:

PPPPParararararticipatticipatticipatticipatticipatororororory straty straty straty straty strategy deegy deegy deegy deegy devvvvvelopmentelopmentelopmentelopmentelopment with involvement of civil society and theprivate sector to assist in the development, coordination and implementation ofstrategic program plans. This is accomplished through establishing multi-stakeholder project steering committees and implementing demonstrationprojects.

Capacity deCapacity deCapacity deCapacity deCapacity devvvvvelopment and strengtheningelopment and strengtheningelopment and strengtheningelopment and strengtheningelopment and strengthening of the management and financialcapabilities of local and regional institutions in order for them to effectivelyplan, implement and evaluate collaborative strategies addressing commonurban development issues. This is accomplished through conducting baselineassessments, formulating capacity development plans, facilitating participatoryplanning processes and strengthening capabilities in the areas of project andfinancial management.

Communication and disseminationCommunication and disseminationCommunication and disseminationCommunication and disseminationCommunication and dissemination among local and regional partners andother stakeholders of project processes, lessons learned and best practicesresulting from the project.

The Canadian UCanadian UCanadian UCanadian UCanadian Urban Institutrban Institutrban Institutrban Institutrban Instituteeeee (CUI) is a non-profit organization dedicated toproviding solutions to important issues that have an impact on the quality oflife in urban areas and communicating those solutions to a wide audiencethrough a variety of media.

The CUI brings together experts from different disciplines to connect people,money and ideas to build strong communities and equitable andcompetitive urban areas in Canada and internationally. The CUI wasestablished in 1990 by the City of Toronto and the Municipality ofMetropolitan Toronto with a mandate to:

Connect urban decision-makers at all levels of government, thecorporate and community sectors to enhance policy making andmanagement of urban areas.

Convene groups of decision-makers throughout Canada and abroad tofacilitate the exchange of information between urban areas within Canadaand internationally.

Communicate the results of applied research and provide training inorder to foster co-operative approaches to urban issues.

Major initiatives currently underway include:

MeMeMeMeMetrtrtrtrtropolitan Iloilo Initiativopolitan Iloilo Initiativopolitan Iloilo Initiativopolitan Iloilo Initiativopolitan Iloilo Initiative (MII)e (MII)e (MII)e (MII)e (MII), which is assisting five local governments inthis medium-sized urban region to pursue intermunicipal cooperation, regionalplanning, growth management and improvements to regional service deliverythrough the establishment of a metropolitan governance body known as theMetro Iloilo Development Council.

Guimaras Economic InitiativGuimaras Economic InitiativGuimaras Economic InitiativGuimaras Economic InitiativGuimaras Economic Initiative (GEI)e (GEI)e (GEI)e (GEI)e (GEI), which is aimed at developing thecapacities of the provincial and municipal governments to bring abouteconomic development and poverty reduction, as well as to sustain earlierenvironmental protection undertakings.

MalaMalaMalaMalaMalay Local Social Sery Local Social Sery Local Social Sery Local Social Sery Local Social Service Delivvice Delivvice Delivvice Delivvice Delivererererery Enhancement Initiativy Enhancement Initiativy Enhancement Initiativy Enhancement Initiativy Enhancement Initiative (MLSSDEI)e (MLSSDEI)e (MLSSDEI)e (MLSSDEI)e (MLSSDEI), whichis assisting this municipality to improve the coordination and sustain the qualityof the delivery of social services for the disadvantaged groups through broad-based inter-agency coordination and partnerships.


Technology

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