LINC-EG is a four-year project under the Global Business, Trade and Investment II (GBTI II) indefinite quantity contract. Implemented by the DAI/Nathan Group, LINC-EG will promote local and national economic competitiveness to improve prospects for economic growth and fiscal sustainability in the Philippines.

Working with local advocacy groups, the project develops policy reforms that improve Filipino private sector competitiveness, particularly in Mindanao. Although these reforms can target any level of government, the project focuses on local governments, combining our understanding of the agents and institutions involved in reforming the Philippines’ political economy with a technical approach that builds ownership among local reform advocates. For example, the project includes subnational provincial competitiveness indexing.

LINC-EG’s approach will be to select reform-minded localities that can serve as growth models, regional “growth poles,” and inspirations to other local governments.The project is driven by seven technical assistance packages that strengthen public-private partnerships and facilitate private sector development:

Measuring Factors of Competitiveness: To collect data about regulatory conditions and the production-cost burdens created by transportation constraints in Mindanao, and to recommend reforms.

Supporting the Competitiveness Policy Agenda: To foster streamlined and transparent processes for transferring ownership of leases and land, ease asset ownership rights, and permit securitized borrowing on par with other members of the Association of Southeast Asian Nations.

Streamlining Business Permitting and Licensing: To enhance service delivery and enable a full-service center with one-stop shop capabilities for business start-ups in Davao City’s National Economic Research and Business Assistance Center.

Improving Property Rights and Land Use: To stabilize the property rights of poor farmers, attract or increase investment in rural areas, create on- and off-farm jobs, bring underused land into production, and improve local competitiveness.

Improving Income Tax Collection Efficiency and Reducing Tax Leakages: To enhance tax revenues, especially in the Northern Mindanao region, based in Cagayan de Oro City, the second-largest source of revenues in Mindanao.

Improving Trade Facilitation and Customs Administration: To bring the Philippines in line with best international practices for customs administration thereby facilitating competitiveness by reducing import and export transaction costs.

Expanding Infrastructure:To improve logistics chain performance through diagnostics, stakeholder dialogue, implementation planning, and technical advice.