Documentation Report on Private Sector Learning Activity, September 2016

The program's objective is to enable second-tier cities to become economically thriving and resilient growth centers, providing 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, with growth 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, with some 90% of all economic activity created by the private sector and nine out of every ten jobs. A private sector learning activity was held from June 27 to 29, 2016, at the Iloilo Convention Center, bringing together 25 private sector movers from six cities to explore ways to spark investments that will grow the economy of cities and surrounding areas. Participants came from various business 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. The learning activity analyzed 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. The objectives of this activity were to discuss trends in global and national economic development, revisit the role of the private sector in the economic development of the city, identify issues on competitiveness that impact on the flow and retention of investments in the city and ways to address these, initiate a discussion on the impact of climate change and strategies to ensure a resilient local economy, and 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. The private sector learning activity highlighted the following issues and their implications to the SURGE Project: strengthening local business development and facilitating investments. Foreign Direct Investments (FDIs) are the key to economic growth, and foreign investors consider policies of the host country, proactive measures to promote and facilitate investment, and characteristics of their economies. Businesses must define their competitiveness and develop strategies to address issues that impact on the flow and retention of investments in the city. The activity also emphasized the importance of climate change resilience in local economies. Climate change poses significant risks to economic growth, and cities must develop strategies to ensure a resilient local economy. The private sector has a critical role to play in this effort, and business support organizations must develop an Agenda for Action to contribute to a growing local economy. The private sector learning activity was a collaborative effort between the USAID SURGE Project and business support organizations. The activity brought together 25 private sector movers from six cities to explore ways to spark investments that will grow the economy of cities and surrounding areas. Participants gave the two-day activity high marks, praising the opportunity to listen to a panel of experts and collaborate and learn from one another's good practices. However, participants wanted more time for group discussions and open forum. The SURGE Project aims to contribute to higher levels of investment and employment for both the second-tier cities and adjacent rural areas. The private sector learning activity highlighted the importance of strengthening local business development and facilitating investments, as well as developing strategies to ensure a resilient local economy. The activity demonstrated the critical role of the private sector in economic development and the need for business support organizations to develop an Agenda for Action to contribute to a growing local economy.