The Local Government's Role in Local Economic Development through an Export-Oriented Industrialization Strategy

Abstract

INTRODUCTION

The municipality of General Trias, Cavite, used to be an agricultural area, but now it is one of the most progressive municipalities in the province of Cavite. This economic growth was due to the Local Government Unit's (LGU) decision to adopt the Export-Oriented Industrialization (EOI) strategy by encouraging foreign investors to invest in the area through the establishment of the Special Economic Zones (SEZ) within the municipality. It is evident that the local government plays an important role in achieving the goal of this export-led strategy.

METHODS

The researcher used the descriptive method to determine the role of the local government in the local economic development through this EOI strategy. This is a case study of Barangay Javalera in the Municipality of General Trias, Cavite, adopting the EOI strategy with the Gateway Business Park's establishment year 1990 until year 2015.

RESULTS

There are PEZA-registered and Non-PEZA registered companies inside the Gateway Business Park. These companies are called Locators. When the GBP was introduced to the locality, a number of developments were experienced by the people in the barangay like road construction and several other services were improved.

DISCUSSIONS

Through the revenues granted from economic zones operations specifically those collected from the locators inside the GBP, numerous projects and programs were implemented by the LGU. Aside from these developments, the big role of the local government is to foster good relationship between the GBP locators and the local entrepreneurs as well as the people of the municipality. Likewise, the local government has its role in the local economic development. There were a number of programs that were established using the revenues granted from the economic zone operations.