Overview of the Philippine

Development Plan 2017-2022,

and the Role of LGUs in
Economic Development
MILAGROS A. RIMANDO
REGIONAL DIRECTOR
FINANCIAL LITERACY FORUM
12 OCTOBER 2018
Outline of presentation
• Overview of the PDP 2017-2022
• CAR regional development potentials
• The role of local governments in regional economic
development
• Public financial management
From vision to action
Long-term Developmental Goals

By 2040, Philippines will be a

• prosperous,
• predominantly middle-class
society
• where no one is poor;

Our peoples will

• live long and healthy lives,
• be smart and innovative and
• live in a high-trust society

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 2040 MATATAG, MAGINHAWA AT PANATAG NA BUHAY

TO LAY DOWN THE FOUNDATION FOR INCLUSIVE GROWTH, A HIGH-TRUST AND

2022 RESILIENT SOCIETY, AND A GLOBALLY-COMPETITIVE KNOWLEDGE ECONOMY

“MALASAKIT” “PAGBABAGO” “PATULOY NA PAG-UNLAD”

ENHANCING THE SOCIAL FABRIC INEQUALITY-REDUCING INCREASING GROWTH
TRANSFORMATION POTENTIAL
Ensure people-centered, Expand economic
Increase access Promote
to economic
Stimulate
clean, and efficient opportunities technology
opportunities innovation
governance adoption
Pursue swift and fair
IMPLEMENT STRATEGIC TRADE AND FISCAL POLICY, MAINTAIN
administration of
MACROECONOMIC STABILITY, AND PROMOTE COMPETITION
justice

Promote Philippine Accelerate Reduce Maximize demographic

culture and values human capital vulnerability
of individuals
dividend
development

Accelerate strategic Ensure safety Ensure ecological

Ensure peace
infrastructure and build integrity, clean &
and security
development resilience healthy env’t
Enhancing the social fabric (Malasakit)
• Ensure a people-centered, clean and efficient governance
 Promote awareness of anti-corruption measures; strengthen
deterrence mechanisms
 Improve the productivity of the public sector; strengthen vertical
and horizontal linkages; improve Human Resource Management
systems in the bureaucracy,
 Promote shared public service values
 Implement regulatory reforms; adopt a
seamless service delivery approach

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Enhancing the social fabric (Malasakit)
• Pursue swift and fair administration of justice
 Shift from the traditional fragmented system to a sectoral approach
in delivering justice (from lodging of complaints, investigation,
prosecution, conviction, and corrections)
 Deliver justice real-time
 Increase access to legal aid; strengthen
victim and witness protection
 Pursue corrections reform

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Enhancing the social fabric (Malasakit)
• Promote Philippine culture and values
 Increase awareness of our diverse culture
 Inculcate Filipino values for the common good
 Advance “pagkamalikhain” or creative excellence
 Promote culture-sensitive governance and development

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Reducing Inequality in Economic
Development Opportunities (Pagbabago)
• Expand Economic Opportunities in Agriculture,
Fisheries, and Forestry
 Improve productivity within ecological limits
 Increase access to value-chains and innovative
financing
 Increase access to technology including production
and post-harvest technologies
 Increase access and protect farmers rights to
resources

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Reducing Inequality in Economic
Development Opportunities (Pagbabago)
• Expand Economic Opportunities in Industry and Services
through Trabaho and Negosyo
 Increase local and foreign direct investments
 Increase competitiveness, innovativeness, and resilience
 Expand market access
 Ensure safety and quality of goods and services
 Improve access of MSMEs and cooperatives to production
networks
 Improve access to finance of MSMEs, cooperatives, and
Overseas Filipinos
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Reducing Inequality in Economic
Development Opportunities (Pagbabago)
• Accelerate Human Capital Development
 Guaranteed care at all life stages
 Ensure functional Service Delivery Networks
 Sustain health financing
 Achieve quality, accessible, relevant and liberating basic
education for all
 Improve quality of higher and technical education and
research
 Improve employability and labor productivity
 Enhance labor mobility and income security

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Reducing Inequality in Economic
Development Opportunities (Pagbabago)
• Reduce Vulnerability of Individuals and Families
 Mitigate risks faced by vulnerable groups
 Manage economic risks
 Enhance DRRM mechanisms
 Reduce governance and political risks
 Achieve universal social protection

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Reducing Inequality in Economic
Development Opportunities (Pagbabago)
• Build Safe and Secure Communities
 Develop integrated neighborhoods and sustainable communities
 Intensify implementation of alternative and innovative housing
solutions including financing modalities
 Strengthen decentralization of housing and urban development
interventions
 Adopt viable land acquisition approaches and fast-track inventory
of lands
 Strengthen housing as a platform to reduce poverty and improve
social outcomes

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Increasing potential growth (Patuloy na Pag-unlad)
 Reach for the demographic dividend
• Accelerate the demographic transition
 Reduce fertility rates
 Reduce mortality rates
• Maximize gains from the demographic dividend
 Improve quality of human capital
 Reduce youth unemployment
 Improve savings build-up
 Improve population and development integration

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Increasing potential growth (Patuloy na Pag-unlad)
 Vigorously advance science, technology, and innovation (STI)
• Accelerate technology adoption
 Increase STI utilization in agriculture, industry, and services sectors
 Increase investments in STI-based start-ups, enterprises and spin-offs
• Stimulate innovation
 Enhance creative capacity for knowledge and technology generation,
acquisition and adoption
 Strengthen open collaboration among actors in the
STI ecosystem

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Supporting Strategies
 Ensure a Sound, Stable and Supportive Macroeconomic
Environment
 Reform tax policy and administration; Increase local sources of LGU
revenue
 Reform expenditure management; Increase budget share of social
and infrastructure sectors; Encourage participation in well-structured
PPP schemes; and further improve debt management
 Maintain flexible inflation targeting, market-determined exchange
rate and sufficient reserves
 Pursue regional and international cooperation

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Supporting Strategies
 Ensure a Sound, Stable and Supportive Macroeconomic
Environment
 Promote financial stability and capital market development;
Strengthen financial inclusion and develop legal infrastructure for
Islamic finance
 Pursue strategic trade partnerships, maximize existing agreements,
and explore new markets
 Intensify marketing, promotion and market intelligence
 Reduce trading cost and facilitate trade

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Supporting Strategies
 Level the Playing Field through a National Competition Policy
Review anti-competitive legislations and policies
Analyze competition issues in priority sectors
Investigate anti-competitive conduct and agreements
Promote competition-related policies
Institutionalize a mechanism for implementing the National
Competition Policy
Conduct capacity building activities

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Bedrock Strategies
• Attain just and lasting peace
 Negotiate (and conclude) peace agreements
 Implement provisions of previous peace agreements
 Implement peace-promoting socioeconomic development programs in
conflict-affected communities
• Ensure security, public order, and safety
 Uphold and protect territorial integrity and sovereignty through diplomatic
means and by having a credible defense posture
 Launch a holistic program to combat criminality, illegal drugs and corruption
 Increase police visibility and inculcate professionalism
 Ensure security and safety of overseas Filipinos and
foreigners in the country

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Bedrock Strategies
• Accelerate infrastructure development
 Increase spending in public infra (GAA, PPP, ODA)
 Strengthen linkage in planning, investment programming, and budgeting
 Implement strategic infra in transport, ICT, water resources and energy
subsectors
 Ensure infrastructure assets preservation
 Intensify R&D on life cycle cost-effective technologies
• Ensure ecological integrity, clean and healthy environment
 Sustain biodiversity and ecosystem services
 Implement sustainable area development programs in resource-based
communities

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 CAR Development Vision
We, the people of the Cordillera, proud of our
culture and heritage rooted in spirituality shall
have a truly autonomous region of a united,
enlightened and empowered citizenry who shall
pursue sustainable development where
responsibilities and benefits are shared by all.
Regional Development Goals:
• Social and human development
• Sustained economic growth
• Environmental quality and sustainable
use of resources
• Cultural integrity and cultural identity
• Regional integration
• Regional autonomy
Regional Spatial Strategy: North
& South Clusters Plus

Growth strategy that includes

the development of
two primary growth centers:

 BLISTT (Baguio City-La

Trinidad-Itogon-Sablan-
Tuba-Tublay) as the
southern growth node

 Eastern Kalinga (Tabuk-

Pinukpuk-Rizal-Tanudan) as
the northern growth node
 KEY REGIONAL DEVELOPMENT POTENTIALS
1. Resource-based
industry
development

CAR hosts 13 major river

systems, hence referred
as the Watershed Cradle
of Northern Luzon
 KEY DEVELOPMENT POTENTIALS
 13 major river basins with an estimated area of 18,293 square kilometers
suitable for water and energy exploration

 Watershed resources such as timber and minor forest products are available
for the wood industry and wood-based light industry

 Scenic landscapes and rich biodiversity afforded by watersheds plus a unique

cultural experience are tourism attractions.

 CAR’s hydropower potential is estimated at 3,580 megawatts (about 27 % of

the country’s potential)

 Hydropower development in the region shall focus on mini and small run-of-
river type hydro projects for being socially acceptable and environment-
friendly.
 KEY DEVELOPMENT POTENTIALS
2. Agri-and agro-based industries development
 Coffee (CAR OTOP)
 Cabbage, other temperate
vegetables such as broccoli,
cauliflower, carrots, potato, etc.
 High value organic vegetable
including kale, red cabbage, etc.
 Heirloom rice
 Cutflowers
 Strawberry
 Bamboo
 OTOP and souvenir product
development to support rural areas
with undeveloped potentials
 KEY DEVELOPMENT POTENTIALS

3. Technology and Knowledge-Based Industries

 Baguio consistently in the Top Ten Next Wave cities

 Baguio is among the 100 global outsourcing destinations

 Continued operation and possible expansion of the Baguio

Ecozone (electronics and machinery) outside Baguio City

 Developing metals industry (aerospace and agri-industrial

manufacturing technology)
 KEY DEVELOPMENT POTENTIALS

3. Creative industry development

 Baguio City is named as UNESCO’s Creative City

under the Crafts and Folk Arts, the first in the
Philippines to join the global Creative City Network
 KEY DEVELOPMENT POTENTIALS

4. Education and manpower development

 CAR as prime education center in North

Philippines with quality higher education
institutions and technical and vocational
institutions.
 KEY DEVELOPMENT POTENTIALS

5. Tourism development

 Ecotourism
 Agri-tourism/farm tourism
 Adventure
 Health and wellness
 Historical and cultural heritage
 Culinary
 Culture
THE ROLE OF LOCAL GOVERNMENTS IN
REGIONAL ECONOMIC DEVELOPMENT
 LGUs are Key to Economic Development

 The enactment Local Government Code of 1991 was meant to

transform LGUs into self-reliant communities and active partners in
nation-building by giving them more powers, authority,
responsibilities and resources.

 Hence, the LGUs play a greater and more pro-active role in driving
the country’s sustainable and inclusive economic development.
Devolved functions to LGUs:
1. Agriculture extension and on-site research
2. Community based forestry projects
3. Field health and hospital services and other tertiary health services
4. Public works and infrastructure projects
5. School building program
6. Social welfare services
7. Tourism facilities and promotion and development
8. Telecommunications services for provinces and cities
9. Housing projects for provinces and cities
10. Others such as like investment support
 LGUs are Key to Economic Development
 Create a more supportive and competitive environment via
leadership and policy making.

 Invest in basic infrastructure that will reduce the cost of doing

business and increase the ease of doing business.
 LOCAL INVESTMENT PRIORITY AREAS
AGRICULTURE SECTOR
1. Commercial production of agricultural crops, poultry, livestock and fishery production
2. Organic agriculture production
3. Construction of support facilities – irrigation, post-harvest facilities, i.e., trading post
AGRI-BUSINESS SERVICES
4. Processing of agricultural and agroforestry products
5. Production of petroleum trees and processing of biofuels
6. Production of rubber trees and processing of rubber products
7. Production of animal and aqua feeds excluding those for game animals, fowls and other
species
8. Coconut and coconut by-product processing
9. High yielding value commercial crops production and processing
10. High breed seed production
11. Organic fertilizers
 LOCAL INVESTMENT PRIORITY AREAS
TOURISM SECTOR
1. Preservation of historical sites, cultural heritage sites
2. Construction of monument parks and museum (i.e., SIPAT)
3. Development of recreational centers – resorts, water rafting, picnic sites,
camping sites, zip lines, trekking)
4. Construction of a convention center for big functions
5. Tourism-related services
- Tourism transport services – land, cable cars/zip line,
- Accommodation facilities – inns, lodge, hotels
- Development of retirement villages, cultural villages
- Restoration/preservation and operation of heritage sites, land marks and
structures
- Parks and playgrounds, view decks, information centers, etc.
 LOCAL INVESTMENT PRIORITY AREAS

MANUFACTURING
1. Furniture and fitting shops
2. Souvenir products made of wild raw material (indigenous)
3. Manufacturing of traditional crafts

MSME DEVELOPMENT
4. Development of Export-Oriented Industries
5. Establishment of more Go Negosyo Centers
6. Green Pasalubong Centers
 LOCAL INVESTMENT PRIORITY AREAS

INFRASTRUCTURE
1.Sports Facilities
2.Mass Housing Project
3.Health Care Services
4.Educational Institutions
5.Water Systems
6.Research, Development and Extension Centers
7.Training Centers
8.Social Infrastructure
THE LGU PFM Reform Roadmap
and Implementation Strategy
A strategic guide on what LGUs
want to do and achieve with their
PFM in the immediate, medium and
long term periods to attain their
desired end-state (vision)

complemented by a well-designed
action program that details the
activities and timeframe on how and
when they could reach their PFM
goal and vision.
USES OF THE ROADMAP AND
IMPLEMENTATION STRATEGY

Provide LGUs with strategic directions to

strengthen their PFM system towards
improved revenue generation and
expenditure management

Two very crucial systems in

the efficient and effective
delivery of services.
USES OF THE ROADMAP AND
IMPLEMENTATION STRATEGY

Assist the Oversight Agencies to strengthen

their coordination in better supporting PFM
reforms identified, designed and being
implemented by the LGUs

Guide Development Partners in identifying

possible entry points for financial support
and other interventions
 How was the LGU PFM Reform
Roadmap Developed?

Established the current state of LGU PFM

system

Identified the desired end-state of the said

system

laid down the policy agenda that will help

both LGUs and Oversight Agencies (OAs)
in getting to the desired end-state
PFMAT Results
Current Desired State
STAKEHOLDERS’ VOICE
GOAL VISION
• Strong linkage of long term plans with
Annual Budget “An LGU service delivery
• Budget requirements understood by all “An open and transparent system that lowers the cost
and stirs public involvement in the budget LGU PFM System that is of doing business, stimulates
process stable and sustainable, private investments,
• Sufficient funds for programs and renders financial compliance, generates employment and
projects anchored on long term plans underpins efficient and income opportunities,
• Self-reliant LGUs that generate sufficient effective delivery of services, improves welfare levels for
local revenues to support budget ensures the highest level of LGU constituents and
expenditures accountability and provides
• Simplified financial systems that yield
accelerates local economic
genuine citizens’ growth.”
timely, accurate and credible financial participation.”
information
• Functional and operational Internal Audit
Service which leads to zero COA
disallowances
• Quality participation of CSOs in the
planning and budgeting process
 Core Approaches to Implementation
of PFM Reforms

1. Multiply sponsorship in the implementation of the LGU

PFM Reform
Expand the engagement of all stakeholders in
the implementation of LGU PFM Reforms to
ensure attainment of:

• Improved Capacities of OAs and LGUs

• Improved LGU PFM systems
• Improved service delivery by LGUs
 Core Approaches to Implementation
of PFM Reforms

2. Empower LGUs to customize their PFM Improvement

Plan (PFMIP)

LGU stakeholders and sponsors will

be enabled to assess their PFM
system, design and actualize their
PFMIPs based on their own level of
readiness
 Core Approaches to Implementation
of PFM Reforms

3. Harmonize and coordinate Oversight Agencies’

technical support to LGUs

LGU PFM Reforms seeks to

institutionalize convergence of
the OAs in providing technical
assistance to LGUs
 Core Approaches to Implementation
of PFM Reforms

4. Capacitate Oversight Agencies and LGUs to Manage the

Reform

OA and LGU Stakeholders and

Sponsors/Champions will be
capacitated on change management
WHAT IS THE CONNECTION AMONG
THE ROADMAP, IMPLEMENTATION
STRATEGY AND PFM IMPROVEMENT
PLAN?
 The Roadmap, Implementation
Strategy & PFM Improvement Plan
Roadmap
Implementation Strategy
A strategic guide on what we
(LGUs) want to do and Lays down the specific PFMIP
achieve with our PFM in the actions to be done to carry
immediate, medium and long out the policy agenda that Details the specific activities
term periods to attain our will result to the outcomes, which the LGU will undertake to
desired end-state (vision) and anticipates the strengthen its PFM System over
implementation risks and a given period of time together
identifies mitigating measures with the resources needed to
carry them out

Prepared jointly by LGUs Prepared by LGUs to

and OAs to serve as their implement PFM
overall strategic guide reforms
 THANK YOU AND
HAVE A GOOD DAY!

www.car@neda.gov.ph