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An LGU good governance model for shared prosperity

Business World Philippines

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July 15, 2025

At the Management Association of the Philippines (MAP), our reflections on shared prosperity sometimes drift to the public sector where there is so much potential for uplifting the lives of Filipinos.

Among local government units (LGU), we saw good governance models that produce shared prosperity. Let us focus on one example. We will avoid names and present this example as a generic path available to all who wish to try it.

Our chosen good governance model consists of a three-step framework with implementation practices for each step. Step one is laying the foundation for good governance, mainly by eliminating graft and corruption. Step two is optimizing nurtured resources through projects that benefit many. Step three is institutionalizing reforms by embedding transparency, integrity and public involvement in the structure and culture of the LGU organization.

STEP 1. LAY THE FOUNDATION

Our example’s first primary practice in building a foundation for good governance is the installation of a procurement process that is devoid of overpricing, kickbacks, commissions, rigged biddings, wasteful and inefficient purchasing, low quality supplies and substandard results. A clean procurement process enables an LGU to mobilize funds for much needed projects.

Picture a water hose. A water hose peppered with punctures can only produce a trickle of water at the end of the hose. In the same manner, public resources are dissipated before they reach beneficiaries by a procurement process that is riddled with graft and corruption.

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