In your own words, discuss the roles of the LGU and the business community in Local Economic

Development (LED) and Business and Economic Recovery after COVID-19 and amid oil price hikes.  As
LGOO II, what actions and steps would you suggest to support and ensure your LGU’s sustainable
economic recovery.   

Role of the LGU in LED and Business Economic Recovery (BER) after Covid-19 and amid oil price hikes.

LGUs serve as the bastion of providing better services to their constituents regarding their needs and
aspirations. In the field of local economic development, it may take on the role of service provider, especially
if there are no private or other sectors that are present, or their services are inadequate. For example, the
LGU may exploit their untapped local tourism possible site that they could develop as a source, not only of
income but of employment as well.

For BER, LGUs may provide more incentives to local businesses in light of the recent covid-19 pandemic, to
encourage them to take risks in creating more businesses that generate economic value. For example,
crafting and enhancement of the Local Government Units’ (LGUs) LIIC by making it more relevant, timely
and attuned to the needs of investors. With the recent spike in oil prices, LGUs also may provide subsidies
to local transport groups or may allow the increase in the collection of fares subject to the approval of its
local legislative bodies.

Role of the Business Community in LED and BER after COVID-19 and amid oil price hikes

Business sectors on micro, small, medium, and large scale enterprises serve as the dynamo for local
employment and growth. They should seize any possible business opportunities and take risks, or develop
markets that create economic value, thus, helping the LGU with its local economic development. Also,
businesses could help revive the local economy by paying their taxes that are due. In light of covid-19,
however, they should follow minimum health standard protocol for the safety of their employees and
customers to avoid derailing or ceasing their operations. Meanwhile, the recent oil price hikes generally
affect businesses. To remedied the situation, they could conduct symposiums for better opportunities that
would help them find better ways on dealing with the crisis.  When all of these measures are taken, it could
result in more dynamic business-friendly, and competitive LGUs.

As an LGOO II, if I am allowed to be a focal person of all business-friendly and competitive LGU programs of
the department, I would do my best and see to it that all programs are fully implemented, from monitoring
and evaluation, providing copies to LGUs of the latest issuances as part of enabling mechanism, and keep
on reminding them of the systems in place that must be followed. If necessary, provide them with the
needed capacity development to make them capable and adherent to the tenets of good governance. This
would result in more capable LGUs for addressing one of the sub-sectoral outcomes of the DILG LG
outcome framework--the business-friendly, and competitive LGUs.

In one of the meetings between the executive and the legislative committees of City Z, one of the areas
identified as an urgent concern is the sharp decline in the local revenue generated from 2019-2021. While
this has been attributed to the impact of CoViD-19, the Local Finance Committee has been looking for
mitigating measures, especially in its post-pandemic transition plan. 

During the presentation, the Business Permit and Licensing Office revealed that in the said 3-year period
there was an average of 15% of business establishments closing, with the highest number recorded from
2020-2021. On the other hand, those that have continued the business have reported a drastic decline in
sales and income. Some of these establishments have already asked for support from the LGU.
As a DILG Officer, you were asked about programs in the Department that could be implemented to address
the concern raised in the meeting. What specific program would you recommend, and how do you intend to
present this to them? What would be your key messaging for the program? Describe your process of
involvement in introducing this program to the LGU.