Economic Experts Urge LGUs to Act Swiftly Against Global Uncertainties
Local government units (LGUs) must move quickly, protect vulnerable sectors, and strengthen local industries to cushion the impact of global uncertainties, according to economic experts. The experts spoke during the regional dialogue "Resilient Leadership: Strategy and Strength Amid Global Uncertainties," convened by Iloilo City Mayor Raisa Treñas, chairperson of the Economic Development Committee of the Regional Development Council VI.
Frontline Protection for Households
Senior Adviser Jonathan Ravelas of Reyes Tacandong & Co., who spoke on "Conflict and the Economy: Current Macroeconomic Situation in the Midst of Global Uncertainties," said local governments are at the frontline of protecting households, especially low-income families who are the first to feel the effects of rising fuel and food prices. Ravelas emphasized that speed of response is critical during times of uncertainty.
"It is not only about having the right response, but the speed of action so people will feel stability and not fear," Ravelas noted. He added that currency fluctuations and global volatility should be treated as a stress test for local governments, with prepared LGUs able to protect households, attract investments, and emerge stronger after a crisis.
Practical Interventions for LGUs
Ravelas outlined several practical interventions that LGUs can implement to cushion the impact of inflation and economic shocks:
- Providing transport relief programs and strengthening price monitoring and Kadiwa-type market initiatives to keep food affordable.
- Supporting export-oriented MSMEs, food processing, IT-BPM, and tourism services to sustain employment and bring in foreign exchange.
- Promoting financial literacy programs to help channel OFW remittances into local investments.
- Exercising fiscal discipline, prioritizing essential spending while deferring non-urgent projects.
- Fast-tracking tourism and investment-related infrastructure, especially in LGUs with fiscal surplus, to attract new capital and generate jobs.
Targeted Programs and Agro-Industrial Growth
Meanwhile, Senior Economist Winston Conrad Padojinog highlighted the importance of targeted interventions during his presentation, "Global Issues, Regional Impacts: The Mezzoeconomic Situation on Geopolitical Conflicts." Padojinog recommended that LGUs and national agencies focus on targeted program subsidies for vulnerable sectors.
He also recommended short-term fiscal reprieves for adversely affected MSMEs to help them remain operational, and the pursuit of an agro-industrial development strategy to reduce import dependence and strengthen food security. "Let us resume investment in the private sector and find ways to capitalize on the crisis. Expand energy sources, improve water utilities, and strengthen digital infrastructure. Artificial intelligence is coming, and we must be ready," he said.
Padojinog encouraged the expansion of public-private partnerships (PPP), export-oriented industries, and agro-industrial investments. He cited Western Visayas' strong potential in food processing, bamboo, and other agriculture-linked sectors. "Pursue partnerships, especially with LGUs. Iloilo is a great example of working PPP. Look at your public markets — it is a very good model to replicate. You are setting a trend, capitalize on that," he added.
Proactive Measures Over Reactive Responses
Mayor Treñas emphasized that while global conflicts are beyond the control of local governments, preparedness, fiscal discipline, and strong local programs can help communities remain stable and resilient. "Now more than ever, there is a strong need for us to reinforce our cooperation and stand united so that we can confront, and hopefully lessen, the impact of the ongoing global crisis on our local economy and ultimately on the lives of the people of Western Visayas," she said.
Treñas noted that the dialogue aims to ensure that the region remains proactive rather than reactive amid global developments. She stressed that local governments must continue strengthening partnerships with the private sector, national agencies, and communities to maintain economic stability.
Current Implementation in Iloilo City
The Iloilo City Government is already implementing measures to protect affected sectors. Upon Mayor Treñas' directive, starting March 25, the City rolled out fuel subsidy assistance for tricycle drivers and operators, with plans to extend it to public utility jeepneys, to help cushion the impact of rising fuel prices.
The City also continues to operate Merkado Lokal and Uswag Rolling Stores, programs that provide local farmers and producers direct access to consumers, helping stabilize food prices while ensuring better income for agricultural workers. "Preparedness, unity, and decisive action are necessary in times like this. If we act early, protect our people, and support our local economy, we will not only withstand this global crisis — we will emerge stronger together," the mayor concluded.
