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Report on the Private Sector Learning Activity REPORT ON THE PRIVATE SECTOR LEARNING ACTIVITY Strengthening Urban Resilience for Growth with Equity (SURGE) Project CONTRACT NO. AID-492-H-15-00001 SEPTEMBER 29, 2016 This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of the International City/County Management Association and do not necessarily reflect the views of USAID or the United States Government. USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page i Documentation Report on Private Sector Learning Activity, September 2016 REPORT ON THE PRIVATE SECTOR LEARNING ACTIVITY Strengthening Urban Resilience for Growth with Equity (SURGE) Project CONTRACT NO. AID-492-H-15-00001 Program Title: USAID/SURGE Sponsoring USAID Office: USAID/Philippines Contract Number: AID-492-H-15-00001 Contractor: International City/County Management Association (ICMA) Date of Publication: September 29, 2016 USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page i Documentation Report on Private Sector Learning Activity, September 2016 Contents I. Introduction 4 II. Design of the Forum 5 III. Participants 5 IV. Implications on the Project 5 V. Next Steps 7 Tables Table 1. Batangas City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges 25 Table 2. Batangas City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 26 Table 3. Puerto Princesa City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges 27 Table 4. Puerto Princesa City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 28 Table 5. Iloilo City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges 31 Table 6. Iloilo City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 32 Table 7. Tagbilaran City Output of Workshop 1: Business Attraction and Expansion –Opportunities and Challenges 33 Table 8. Tagbilaran City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 33 Table 9. Cagayan de Oro City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges 36 Table 10. Cagayan de Oro City Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 36 Table 11. Zamboanga City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges 37 Table 12. Zamboanga City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 37 USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page ii Documentation Report on Private Sector Learning Activity, September 2016 Annexes Annex 1. Highlights/ Proceedings 8 Annex 2. Output of Workshops 1 and 2 25 Annex 3. Program 39 Annex 4. List of Participants 42 Annex 5. Photo Documentation 44 Annex 6. Visual Aids/ Presentation 45 Annex 7. Summary of Evaluation/ Feedback 45 Acronyms BOT Build-Operate-Transfer FDI Foreign Direct Investment CLUP Comprehensive Land Use Plan GDP Gross Domestic Product IPC Investment Promotion Center LEIPO Local Economic and Investment Promotion Office LGU Local Government Unit M&E Monitoring and Evaluation MSME Micro, Small and Medium Enterprise NCC National Competitiveness Council NGO Non-Government Organization PPP Public-Private Partnerships TESDA Technical Education and Skills Development Authority USAID United States Agency for International Development USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page iii Documentation Report on Private Sector Learning Activity, September 2016 I. Introduction The Strengthening Urban Resilience for Growth with Equity (SURGE) Project of the USAID aims to foster the development of conditions for broad-based, inclusive, and resilient economic growth for a critical mass of cities and surrounding areas outside of Metro Manila, Cebu, and Davao. The objective of the program is to enable second‐tier cities to become economically thriving and resilient growth centers. As engines of growth, these cities will provide a better quality of life for residents and people in surrounding areas. By the end of SURGE, activities are expected to have contributed to higher levels of investment and employment for both the second‐tier cities and adjacent rural areas. The Philippine economy posted solid growth in 2015. This growth is projected to pick up with higher investment and consumption. Sustaining strong growth will require policy continuity to develop infrastructure and human capital, improve the investment climate, and reform governance. The private sector is an essential pillar for pushing and sustaining economic development: some 90% of all economic activity is created by the private sector, as are nine out of every ten jobs. However, businesses face many barriers that impede investment, business expansion, job creation and sustainable growth. The learning activity brought together 25 private sector movers from the six CDI cities to explore ways to spark investments that will grow the economy of cities and surrounding areas. Participants came from various business organizations such as Chambers of Commerce and Industry, Business Clubs and other Business Support Organizations and discussed ways to attract, retain and grow investments with experts. Industry/business leaders conferred on issues and solutions to enable the private sector to contribute to the economic development of their cities and thus, the country. This activity analyzed the current trends and prospects in economic development, globally and nationally, the essential role of the private sector, as well as the challenges and opportunities for economic growth. Specifically, the objectives of this activity were: (1) To discuss trends in global and national economic development; (2) To revisit the role of the private sector in the economic development of the city; (3) To identify issues on competitiveness that impact on the flow and retention of investments in the city and ways to address these; (4) To initiate a discussion on the impact of climate change and strategies to ensure a resilient local economy; and (5) To provide a venue for business support organizations to discuss organizational development issues and develop an Agenda for Action to contribute to a growing local economy. This report addresses Component 2: Activity 2.4.1.1: Economic Growth Action Plan. It is also in support of Component 4, Activity D.3.2: Holding of Capacity Building Activities/Workshops. USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 4 Documentation Report on Private Sector Learning Activity, September 2016 II. Design of the Forum The three-day learning activity was held from June 27 to 29, 2016 at the Iloilo Convention Center. It had the following parts: ñ Part 1: Quick visit to Iloilo’s historical landmarks, cultural attractions and business development trends leading to a Welcome Dinner, Introductions/Lightning Talks. ñ Part 2: Two days of sessions on current trends and prospects on economic development, the essential role of the private sector, and the challenges and opportunities for economic growth. ñ Part 3: Two short workshops to identify opportunities and challenges for business attraction and expansion, and develop a private sector agenda for economic growth in the cities. Slide presentations, workshop outputs, and photos have been compiled and are part of the documentation report as attachments. III. Participants There were 11 resource persons and 25 participants from the Chambers of Commerce, Business Clubs and other Business Support Organizations. Of the participants, 16 were male and 9 were female. Overall, the group gave the two-day activity high marks. Participants were very pleased to have listened to a panel of experts. They were also grateful that USAID SURGE initiated this activity which allowed them to collaborate and learn from one another’s good practices. However, participants wanted more time for group discussions and open forum. IV. Implications on the Project The Private Sector learning activity highlighted the following issues and their implication to the SURGE Project. Strengthen local business development and facilitate investments The key to economic growth is Foreign Direct Investments (FDIs). Foreign investors consider the following criteria for investing: policies of the host country, proactive measures that countries adopt to promote and facilitate investment, and characteristics of their economies. To this end, businesses must define their focus, do capacity building, and promote investments. USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 5 Documentation Report on Private Sector Learning Activity, September 2016 SURGE recognizes the private sector as the engine of growth. The Project will work with the private sector to identify the most promising key economic sectors and initiate discussions on the most strategic potential interventions to accelerate trade and investment acquisition in those sectors. The Project will also develop and implement appropriate capacity building interventions for the cities’ LEIPO and investment promotion centers, and provide niche assistance to Chambers, trade associations, and other business support organizations. Strengthen the business enabling
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