OVERVIEW
 
The Cities Development Initiative (CDI) is a cross-cutting development approach that works strategically in selected cities in the Philippines. This initiative is built on the premise that economic growth and job creation are closely linked to urban development, where cities act as engines of economic growth. CDI seeks to promote economic growth outside of Metro Manila to disperse economic opportunity in the Philippines.
 
CDI is an integral part of the U.S.-Philippines Partnership for Growth (PFG). The PFG will assist the Philippines achieve the goal of moving to a higher, sustained and more inclusive growth trajectory in line with other high-performing emerging economies. Signed in November 2011 by U.S. Secretary of State Hillary Clinton and Philippine Foreign Affairs Secretary Del Rosario, the PFG is helping the Philippines achieve its high growth potential by creating a more transparent, predictable, and consistent legal and regulatory regime; fostering a more open and competitive business environment; strengthening the rule of law; and supporting fiscal stability.
 
CDI seeks to assist the Philippines promote higher, sustained and more inclusive growth by providing a range of development interventions in targeted cities. CDI, as part of PFG, is an approach where the U.S. Government and the participating city hold mutual responsibility for promoting growth through appropriate policies and incentives, greater transparency and accountability, and increased competitiveness.
 
ACTIVITIES 

• Improve the investment climate by fostering a more open and competitive business environment less encumbered by corruption and regulatory burdens;
• Support investments in high-value industry clusters;
• Facilitate infrastructure improvements and public service delivery; and
• Enhance human capacity resources to take advantage of emerging economic opportunities.

 
To maximize contribution and impact, USAID/Philippines’ resources will be leveraged and directed to support economic development in cities positioned for higher growth. Designed in collaboration with local partners and in consultation with other donors, a Development Assistance Package will be launched, comprising a series of mutually re-enforcing development interventions cutting across the Mission’s portfolio. These development interventions derive from existing projects and future interventions.
 
Criteria for city selection include an enabling environment for growth, credible city government commitment to economic reforms and good governance, committed local partners, engaged private sector community, and likelihood of producing significant impact.
 
Batangas, Cagayan de Oro, and Iloilo are the first three cities USAID has chosen as pilot cities for its innovative approach to programming in support of the PFG. The initiative will be scaled and expanded to additional cities in subsequent years in implementing the PFG Joint Country Action Plan.