LOCAL ECONOMIC

DEVELOPMENT
An approach to promote economic
growth, creation of wealth, and
contribute in the over-all development
of poor communities
Managing existing resources of a locality to
stimulate economic activity, generate employment,
and create new community and business wealth to
achieve a better quality of life for all in the
community
 LOCAL ECONOMIC
DEVELOPMENT
A process by which actors within
communities work collectively with
public, business and civil society
groups to create better conditions for
economic growth and employment
generation
A partnership process between local governments, community-based
organizations and the private sector to stimulate the economy of a
well defined territory, build up competitive advantage of a locality
and develop new institutions and local systems through dialogues
and strategic actions (World Bank, IIED)
 LOCAL ECONOMIC
DEVELOPMENT
 is about communities improving their
investment climate and business enabling
environment
 is about integrating local development in a
broader strategic planning process for a
district, province, or region
 is about maximizing the competencies and
the wide range of disciplines and functions of
the local government and private sector –
environment planning, business development,
infrastructure and real estate management
and finance.
AGRICULTURAL PROJECTS
AS MEANS TO
OPERATIONALIZED THE
LED STRATEGY
 Natures of Agriculture Projects
 Traditional agriculture – monocrop production –oriented
 Diversified crop production – cash crops to high value
crops
 Agro- industrialization
- Upstream industries – initial processing of
agricultural commodities e.g. Rice, corn and flour milling, fish
canning, oil extraction
- Downstream industries – further manufacturing
operations on intermediate products made from
agricultural materials e.g. bread, biscuits, noodle making, weaving,
garment making, paper making, soap making
 Integrated production, processing and marketing
enterprises (crop, livestock and fisheries/aquaculture)
 Agribusiness/Social Enterprises
 Agribusiness encompasses the sum of all activities
that occur in farm resource supply, farm production,
manufacturing and processing, storage, distribution
and wholesale and retail sales of plants, animal,
forestry and fishery products. (DA)
 Agribusiness embodies the “seed to shelf” concept of
the supply chain
 Agribusiness is applying science and technology to
farming and market solutions to agriculture. It
involves organizing and managing the supply chain
from production to post harvest to processing/
manufacturing to transport and finally marketing to
deliver to end-users and customers (Malonzo).
 Social enterprises are agribusiness activities in the
agricultural, manufacturing, industrial and service
sectors (KFI)
 AGRIBUSINESS
All market and private business-oriented
entities involved in the production, storage,
distribution, and processing of agro-based
products; in the supply of production inputs
and in the provision of services (e.g.
extension and research) - GTZ
 AGRIBUSINESS
Mode of managing agricultural enterprises at
the production input and output distribution
and processing levels. – German science

Business of agriculture. – Anglophone

context; market-oriented definition
Agribusiness support is considered to be
part of a country’s economic development
concept
- alternative job creation
- income generation
- reducing poverty
Agribusiness support is considered to be
part of a country’s economic development
concept
- alternative job creation
- income generation
- reducing poverty
 Key Players
Category Groups involved in the
supply chain
Producers Farmers and fisherfolks
Distributions Haulers, commission agents,
and distributors, wholesale and
middlemen retail merchants in rural and
urban markets, export agents
Buyers Food processing companies,
international buyers from
retail companies, processing
companies, fair trade
organizations and brokers
Support Farmers’ organizations,
Agencies cooperatives, unions
Role and activities
Food producers
Purchase of produce, transport to
buyers in retail and wholesale
markets, quality grading, provision
of agricultural/fishery inputs and
credit
Purchase of agricultural produce for
further processing/value addition,
quality grading, marketing and
sales, support and advise to
producers in fair trades
Support to producers – securing
production/marketing training and
extension support
 Key players
Category Groups involved in Roles and Activities
the supply chain
Support Fair Trade Training of producers, provision of
Agencies organizations inputs/credit, community development, quality
Non-government upgrading, advice and support for export
organizations procedures

Trade and Industry Support to processors in market studies,

associations, feasibility studies, business planning,
Chamber of networking, training, advice on technical
Commerce inputs

Advise to producers on production,

Consultants(local and marketing, crop protection, quality
international) improvement, support agencies

Provision of credit to farmers and agro-

Banks, Lawyers, industries, assistance in business planning,
accountants preparation of legal agreements and
contracts
 Key Players
Category Groups in the supply Roles and responsibilities
chain
Government Ministry of Agriculture Development of policy framework for
agricultural production, planning, sector
monitoring, extension/advisory services,
farming inputs, direction and control of
agricultural research policies, research
programs and trainings

Ministry of Trade and Development of policy framework and

Industry/Export legislation for domestic, regional and
Promotion international agribusiness, processing and
export market, quality standards and
implementation of food legislation

Local Government Development and implementation of local

plans and sub-sector programs, building
capacity for local institutions for planning
and delivery of public services
Financial Viability and Sustainability
of Agribusiness Undertaking

- must respond to the needs of intended

beneficiaries and make profits to recoup
cost of investment, expand the enterprise

- must ensures stable income for the

beneficiaries, and generate revenues for the
LGU to finance other capital investment
projects of the city.
 Preliminary
Assessment
When identifying what agriculture
projects to implement in the city, the
following are critical questions are to be
answered during the preliminary
assessment:
 What are our objectives for investing in agriculture
projects?
 Why do you want to undertake agriculture projects in
your City? What is the end in mind?
 How do your agriculture projects fit into your overall
vision, goals, objectives and LED strategies?
 Possible Responses
 We want stable sources of income for our
constituents
 We want to generate more revenues to
finance other requirements of the city
 We want to maximize the utilization of our
agriculture base since more than 50% of our
barangays are rural
 We want to produce goods and services that
are competitive not only in the city but also in
the region, national and ultimately penetrate
the global market
 Project Packaging Components
 The Congruence and relevance of the agriculture
projects to the City’s vision, goals, objectives and
LED strategies

 Marketing Feasibility Analysis - the presence of

good market, the size of the market and the
sales prices and volume expected to be realized

 Technical Analysis - the production capacity of

the enterprise, the appropriate technology and
operational processes to be used

 Institutional Arrangements – the organization and

legal structures to be adopted, linkages and
networks formed and technical assistance
required
 Project Packaging Components
 Social and Environmental Safeguards – the
social and environmental impacts of the
enterprise

 Financial Feasibility Analysis – the amount of

financing needed for both fixed assets and
working capital, sources of financing, and cost of
capital

 Economic Impact – the overall enterprise rates

of return, cash flows, income break-even points
and ability to pay for loan amortizations, if any,
and the benefits of the enterprises to the
beneficiaries and city
You are measured
Not for what you have,
Not even for who you are,
But what others have become
Because of you. . .