Gov't allots P21M for LGU competitiveness program

CEBU, Philippines - The success of the Local and Regional Economic Development (LRED) program, implemented by the Department of Trade and Industry (DTI) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in the Visayas, has moved the government to introduce the same in Luzon and Mindanao.

Established eight years ago, LRED has been proven to increase the competitiveness level of Local Government Units (LGUs) in the Visayas. 

In a statement, DTI announced that it has earmarked P8 million for this year and P13 million for 2013 or a total of P21 million to promote competitiveness to LGUs in Luzon and Mindanao through the LRED approach.

DTI Undersecretary Merly Cruz said that the department is intensifying the upscaling of LRED in Luzon and Mindanao to make the business environment more favorable for MSMEs nationwide.

In a DTI and GIZ survey conducted recently, it was established that LRED contributed to the rise in the competitiveness index of 71 percent of LGUs surveyed in the Visayas.

“This development, when replicated more broadly across the country, can have greater positive impact in the now improving Philippine competitiveness ranking globally,” said Lorenzo Templonuevo, GIZ PSP SMEDSEP Senior Adviser.

LRED is a participative process by which stakeholders from both public and private sectors are mobilized to become partners in a joint effort to improve the economy of a locality and increase its competitiveness.

The LRED process invites the private sector to voice their concerns and offer advice in the LGU’s legislative processes to make policy work for businesses.

“LRED is a major step towards generating jobs, business enterprises and revenues for the LGUs,” Templonuevo added.

In 2003, the Philippine government, in partnership with the Federal Republic of Germany, initiated a private sector promotion program to create a more favorable business environment for MSMEs in the Visayas. This program came to be known as PSP SMEDSEP with the Local and Regional Economic Development (LRED) program as one of the approaches introduced.

Now on its last phase, a closing event for the SMEDSEP will be held on October 24 at the Radisson Blu Hotel to give recognition to the DTI and GIZ partnership in the implementation of the highly successful MSME development program.

The PSP SMEDSEP closing activity will also feature the soft launch of the Promotion of Green Economic Development (ProGED) Philippines Project.

Cruz said that many approaches and themes that GIZ shared with DTI have already been mainstreamed in the Visayas and are now being upscaled to the rest of the country through cooperation with other development partners.

Templonuevo revealed that the DTI and SMEDSEP have also worked together in other development initiatives such as the simplification of business registration process, cashflow based lending, private sector provision of business development services and promotion of value chains.

SMEDSEP contributes to the efforts of the Philippine government to improve the framework conditions for private sector development in the country. It is implemented in partnership with the DTI at the national, regional and provincial levels on behalf of the Philippine government and the German Federal Ministry for Economic Cooperation and Development (BMZ).

At the National level, PSP SMEDSEP’s advisory service helped shape the 2011 to 2016 National Strategy for MSME Development which has been adopted by the Philippine Development Plan of the Aquino Administration. (FREEMAN)