Saturday, October 6, 2012

DTI SETS ASIDE BUDGET FOR LRED UPSCALING IN LUZON AND MINDANAO

The Department of Trade and Industry (DTI) has earmarked PhP 8 Million in 2012 and PhP 13 Million in 2013 to promote competitiveness of local government units (LGUs) in Luzon and Mindanao through the Local and Regional Economic Development (LRED) approach.”

Acknowledging the success of the LRED approach that the
DTI and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) implemented jointly with 84 LGUs in the Visayas for the past eight years, DTI Undersecretary Merly Cruz said that the department is intensifying the upscaling of LRED in Luzon and Mindanao to make the business environment more favourable 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% 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”, says 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, Templonuevo explains. “LRED is a major step towards generating jobs, business enterprises and revenues for the LGUs.”

In 2003, The Philippine government, in partnership with the Federal Republic of Germany, initiated a private sector promotion program to create a more favourable business environment for MSMEs in the Visayas. In time this program became popularly known as PSP SMEDSEP.

On its last phase in 2012, a closing event for the PSP 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.

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

GIZ supports reform and change processes in an increasingly globalized 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. The joint projects and programs are outcome and impact oriented and contributes towards socioeconomic progress.



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