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ECONOMIC DEVELOPMENT :
PLANNING THE LOCAL
ECONOMY
Prof. Zenaida A. Manalo, PhD, EnP
12 March 2013

SCURP 2013
A BASIC COURSE IN URBAN AND REGIONAL PLANNING (ABC in URP)
Training and Extension Services Division,
Asst. Prof. Kristine Follosco-Aspiras Training Director
3/F Cariño Hall, School of Urban and Regional Planning
University of the Philippines - Diliman, Quezon City
March 11-15, 2013 SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Objectives of the
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1. Familiarize you with the data requirements for


planning the economic sector at the local level
(cities and municipalities).
2. Outline the framework for economic analysis of
the local economy.
3. Identify major issues and concerns with
emphasis on those that have to do with local
spatial planning of the economic sector.
4. Provide an example of Strategy Formulation
for the Tourism Sub-Sector.
SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Study of edit
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FOCUS :
The study involves an assessment of
the current state and growth pattern
of the local economy with the objective
of strengthening economic activities
in a sustainable manner.

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Data
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Economic Sector

Sub-sectors include the following:

1. Agriculture (includes fishery and forestry)


2. Industry
3. Commerce and Trade
4. Tourism
Please refer to the accompanying Economic Development handout,
which outlines the types of data required for the economic analysis of
the above sub-sectors. Source document is the HLURB CLUP
Guidebook, Vol. 2 (2007).

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Analytical Framework
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 Determine the economic structure of the
city/municipality, the contribution of each
economic sub-sector and the economic trends
or patterns of growth;
 Identify major drivers of the local economy in
line with the strategic planning of the economy;
 Ascertain location of these major economic
activities (spatial dimension);
 Do SWOT (strengths-weaknesses-opportunities-
threats) analysis, which will give important
inputs into the planning of the Economic Sector;

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Analytical Framework
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 For major drivers, assess infrastructure support


as well as support in the following areas -
investment, finance, promotion, marketing, etc.;
 Also assess skills of the workforce as well as the
level of entrepreneurial capability; and
 Analyze economic policies at the national/
regional/ provincial/city/municipal levels
whether these will lead to the attainment of the
economic goals of the province/city/municipality.

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Major
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The analysis and planning of the local economy should
address the following critical issues and concerns:
1. Agriculture, Fishery and Forestry :
Spatial /Physical Factors under consideration
• Declining area due to conversion of agricultural
land to non-agricultural use and its impact on
food supply;
• Effects of natural causes such as soil erosion,
flooding and landslides on arable land and forest areas;
• Reduced municipal waters for marginal fisherfolks because
of illegal fishponds, intrusion of commercial fishing vessels in
these waters, reduced water quality due to siltation;
SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Major
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• Insufficient infrastructure and support facilities.
• Presence of soil and water pollution from various
sources.

Agriculture.....
Non-Spatial Planning Considerations
• Lack of more advanced technology;
• Insufficient capital;
• An out-migration area leading to a decline in manpower; and
• Inadequate government support to agriculture, fishery and
forestry.

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Major
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2. Industry
Spatial/Physical Factors under Consideration:
• Lack of suitable land for industrial
expansion considering topography, geo-hazards,
wind direction, availability of groundwater, etc ;
• Types of industries being planned (clean versus pollutive);
• Proper location of existing and potential industries including
industrial estates viz-a-viz other land uses such as residential,
institutional and commercial uses. Industries are not allowed near
these uses, There is a need to create buffer zones or
greenbelts. Zoning ordinances should reflect these.
• Inadequate infrastructure for present and future
industries (water, power, transportation, communication).

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Major
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Industry
Non-Spatial Planning Considerations :

• Proper choice of technology (capital-intensive versus labor-


intensive);
• Insufficient sources of capital (local and foreign direct
investments);
• Presence/absence of skilled manpower; and
• Level of government support to industries by way of policies and
programs, e.g., incentives under an investor-friendly business
environment, good governance practices to minimize corruption
when dealing with the business sector, low-interest financing
schemes, product packaging and marketing, etc.

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Major
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3. Commerce and Trade

1899 1940s

2008
SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Major
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3. Commerce and Trade
Spatial/Physical Factors under Consideration:

• Major types of commercial activities and location;


• Unregulated growth of CBD (Commercial Business District);
• Inadequate road network servicing the CBD/volume of traffic
generated by the commercial activities;
• Lack of available land to accommodate the creation of a new
CBD as a growth node and a way to decongest old city center;
• Other support infrastructure (water, power, transport system
including transport terminals) may be limited.

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Major
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Commerce and Trade

Non-Spatial Planning Considerations:


• Earnings of LGUs from commerce and trade;
• Manpower and capital requirements of the commercial sector;
• Presence/absence of financial services (banks, lending
institutions, pawn shops, etc); and
• LGU support in the form of reduced red tape in the acquisition
of business permits and licenses; conduct of trade fairs;
business matching services; trade information dissemination,
market price monitoring.

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Major
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4. Tourism
Spatial/Physical Factors under Consideration:
• Nature (man-made vs natural) and location
of tourist attractions;
• Types of accommodations available and
location whether these are sufficient for different types of
visitors;
• Carrying capacity of tourist attractions in terms of tourist
arrivals these can absorb;
• Lack of accessibility of tourist spots (via land, air and/or sea)
and infra requirements for upgrading or constructing new
airports, seaports, RORO ports, roads and bridges; and
• Presence of geo-hazards.

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Major
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Tourism
Non-Spatial Planning Considerations:
• Presence/Absence of cultural festivities;
• Lack of skilled labor force;
• Inadequate promotion of tourist destinations by both the
government (national and local) and the private sector;
• Absence of tourism-friendly environment (e.g, hostile
attitudes of local people towards visitors);
• Poor peace and order conditions;
• Contributing to stronger cultural pride and identity;
• Exposure of locals to drugs and liberal sexual mores; and
• Level of institutional support (Tourism Councils/Tourism
Offices, Tourism Officers).

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
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Planning the Local Economy: Tourism


An Example of Strategy Formulation

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Strategy Formulation
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Master title style
Strategy
• provides guidance for actions to be taken
• associated with resolving major issues
• may be economic in nature but may have
positive and/or negative social, physical,
environmental and even, institutional
implications.

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Strategy Formulation
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Master:title styleExample
Identification of Outstanding Tourism Assets

• Types of Tourism Assets:

Churches

Parks and Open


Spaces

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Strategy Formulation
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Master:title styleExample
Identification of Outstanding Tourism Assets
• Types of Tourism Assets:

Historic Monuments
and Iconic Buildings

Shopping Centers and


local Trade Fairs

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Strategy Formulation
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Tourism
styleExample
Identification of Outstanding Tourism Assets

Beach Resorts

Garden Resorts

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Strategy Formulation
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Master:title styleExample
Selection of Priority Tourist Destinations
“outstanding”
Selection Criteria:
• Historic Value
• Available support infrastructure
• Accessibility
• Presence of views and vistas
• Environmental quality
• Potential provincial/regional/national/international
importance of the tourist destination.

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
Strategy
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Development of Tourism Circuits
• Tourism circuits are tourist destinations to be included in
the tour packages (e.g. half-day city tour; full day tour, 2-7
day tours).
• Criteria for choosing destinations to be included in the
circuit include:
 Similar gateway (land, air, sea)
 Stage of development
 Contiguity
 Accessibility
 Market demand.

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)
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Thank you!!!

SCURP 2013: A Basic Course in Urban and Regional Planning (ABC in URP)

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