The code vested in LGUs the powers and functions to deliver services in the areas of health, agriculture, public works, social welfare, development and conservation of the environment and natural resources and tourism. To enable the local governments to perform their functions, the LGC of 1991 not only transferred some regulatory functions of the national government agencies to the LGUs but also granted LGUs certain governmental and corporate powers.
Among the governmental and corporate powers granted to LGUs include those pertaining to propriety rights, foreign grants, cooperative undertakings among LGUs, tax exemption privileges of LGUs, credit financing and inter-LGU loads, grants and subsidies. Full autonomy in exercising their propriety functions and in managing economic enterprise were given to all local governments.
The local governments were also allowed to dispose, develop, lease, obtain and utilize their own properties and resources for productive and developmental purposed. They are allowed to commercialize or privatize to improve delivery of certain basic services.
Whereas, decision-making before was highly centralized, the local governments are not allowed to negotiate and secure financials grants or donations from local or foreign assistance agencies without having to obtain clearance or approval for such grants from higher LGU except from their respective Sanggunian.
This legislation transformed local governments into a crucial player in the promotion of investments and productivity that would push our country into global competitiveness. And so as the Philippine Government is set to get the country more globally competitive, the local governments are being tapped to provide the right environment to promote investment and businesses and achieve economic growth.
Through the National Competitiveness Council (NCC) established by the Philippine Government in 2006, the ‘Five-star projects’ was put together which includes the development of local government units (LGUs) into economic spark plugs by providing assistance for their ‘sunrise’ or up-and-coming industries to become more productive. These industries are along the areas of agri-business, tourism, information technology-enabled (IT enabled) services, mining, manufacturing, health and wellness and supply-chain logistics. The NCC has identified the first set of 120 LGUs as potential ‘economic spark plugs’ to be established this year.
The Local Government Academy has compiled the profiles of these LGUs as easy reference. The LGUs have been arranged according to super-region concept, one of the government’s strategies to promote investments across the country.
Download SPARKPLUG LGUs profile
- North Luzon Agribusiness Quadrangle (25 LGUs, 88 pages)
- Luzon Urban Beltway (33 LGUs, 127 pages)
- Central Philippines (38 LGUs, 109 pages)
- Mindanao Super Region (24 LGUs, 107 pages)
