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PIA Press Release

6 Leyte LGUs pledge to foster local economic dev't

Tacloban City (February 13) -- The municipalities of Palo, Isabel, Baybay, Carigara, Palompon and the City of Ormoc, all in the province of Leyte formalized their commitment to foster local economic development with the use of the Local and Regional Development (LRED) approach for their planning, by entering into a Memorandum of Commitment with German Development Cooperation's (GTZ) Private Sector Promotion (SMEDSEP) Program.

The signing of the Memorandum of Commitment for 2008 which was held in Isabel, Leyte on February 1, provided an opportunity for key partners and stakeholders in Leyte to gather together in one venue.

The Local Chief Executives of the 6 municipalities signed the MOC. DTI Director Cynthia Nierras signed in behalf of SMEDSEP and GTZ Visayas Coordinator Volker Steigerwald.

In entering into a Memo of Commitment as part of the institutional cooperation process in the LRED implementation under the second phase of PSP/SMEDSEP, the 6 LGUs agreed, among others, to serve as a resource institution for other LGus that express interest in LRED approach, and to improve business licensing procedure as well as implement specific measures to insure the institutionalization of the project beyond the project life.

For its part, SMEDSEP will provide technical assistance in the implementation and management of the project as well as in the planning and monitoring of the LRED activities.

The City of Ormoc and the municipalities of Baybay, Carigara and Palompon are actually the pilot LGUS of the Program. Last year, Palo and Isabel committed their interest in also using the Local and Regional Development approach for their planning under the SMEDSEP Program.

LRED is a participatory planning and implementation process wherein public and private stakeholders in a locality work together to improve conditions for economic growth and employment generation. It is about mobilizing people and making them work together to effect change.

The LRED approach has built quite a demand from LGUs in Eastern Visayas since 2004 when it was first introduced by GTZ because of the positive results demonstrated in the pilot LGUs which helped build a good credibility of the approach.

LRED is one of the models being promoted by GTZ's private Sector Promotion Program which is a development cooperation between the Republic of the Philippines and the Federal Republic of Germany, that aims to improve the Business and Investment Climate for Small and Medium Enterprises in the Philippines, especially in the Visayas.

The Program contributes to the efforts of the Philippine Government to improve the framework condition for private sector development in the country. SMEDSEP is implemented in partnership of the Department of Trade and Industry at the national, regional and provincial levels and the German Technical Cooperation on behalf of the German Federal Ministry for Economic Cooperation and Development.

GTZ is an international cooperation enterprise for sustainable development with worldwide operations owned by the German Government. For 30 years already, it has been providing forward-looking contributions to political, economic, ecological and social development in partner countries.

GTZ supports reform and change processes in an increasingly globalize world, often working under difficult conditions. Its major approach to facilitate change is promoting capacity development of people and partner organizations as well as improving institutions and frame conditions in partner countries in order to contribute towards socioeconomic progress. (PIA 8) [top]

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