Competitiveness on Multiple Fronts Key to Top-Notch Performance

Developing a competitive advantage across several variables has proven successful for the top-ranked cities and municipalities in the Cities and Municipalities Competitiveness Index (CMCI) 2014 of the National Competitiveness Council.

Launched earlier today at the Regional Competitiveness Summit, the CMCI measures competitiveness at the local government level using 28 indicators grouped into three equally-weighted pillars: Economic Dynamism, Government Efficiency, and Infrastructure. Scores on each pillar were combined to form the overall score used to rank cities and municipalities.

The CMCI 2014 featured a record number of 136 cities and 399 municipalities, up from 122 cities and 163 municipalities in the pilot run in 2013. Leading the roster of the most competitive cities this year were Makati City, Cagayan de Oro (Misamis Oriental), and Naga (Camarines Sur). For municipalities, Daet (Camarines Norte) was ranked the most competitive overall, followed by General Trias (Cavite) and Kalibo (Aklan).

During the Regional Competitiveness Summit, Trade and Industry Undersecretary Adrian S. Cristobal Jr. delivered the opening remarks on behalf of Secretary Gregory L. Domingo, while United States Agency for International Development Mission Director Gloria D. Steele gave the message of support. National Economic Development Authority Director General Arsenio M. Balisacan served as the keynote speaker.

Awards were also given to the top three cities and municipalities per category. While the National Capital Region swept the Economic Dynamism category with the cities of Parañaque, Makati, and Manila taking the top spots, the Government Efficiency category was dominated by cities outside Metro Manila. The top cities for Government Efficiency were Naga (Camarines Sur), Iloilo (Iloilo), and Angeles (Pampanga). For the Infrastructure category, the top cities were Davao (Davao del Sur), Cagayan de Oro (Misamis Oriental), and Marikina.

Among the municipalities, the most competitive for Economic Dynamism were Tanza (Cavite), General Trias (Cavite), and San Pedro (Laguna), all from Region IV-A, CALABARZON. The most competitive municipalities for Government Efficiency were Kalibo (Aklan), Tupi (South Cotabato), and San Mateo (Isabela). Finally, for Infrastructure, the most competitive municipalities were Daet (Camarines Norte), Rodriguez (Rizal), and Paniqui (Tarlac).

The results highlight the importance of being competitive in several factors, especially those which are closely examined by potential investors. It should be noted that the top three cities and municipalities for overall competitiveness also received at least one award in a category.

In addition to pursuing across-the-board competitiveness, NCC Private Sector Co-Chairman Guillermo M. Luz advised stakeholders at the Regional Competitiveness Summit to work together in building cities and municipalities which are affordable, accessible, socially-acceptable, environmentally-friendly, economically-viable, and climate-resilient. The CMCI was designed to encourage local governments to regularly track data and eventually benchmark performance against other cities in the ASEAN to better manage their regions.

Note:

The CMCI was developed by the NCC through the Regional Competitiveness Committees (RCCs) with the assistance of the INVEST Project of USAID. City and municipality data used in the CMCI were voluntarily submitted by the RCCs.

Economic Dynamism scores were based on data on the size and growth of the local economy as measured by business registrations, capital, revenues, and occupancy permits; capacity to generate employment; cost of living; cost of doing business; financial deepening; productivity; and presence of business and professional organizations. Government Efficiency scores were based on data on transparency scores, economic governance scores, local taxes and revenues, local competition-related awards, business registration efficiency, investment promotion, compliance to national directives, security, health, and education. Infrastructure scores were based on data on existing road network, distance from city/municipality center to major ports, Department of Tourism-accredited accommodations, health infrastructure, education infrastructure, basic utilities, infrastructure investments, ICT connection, ATMs, and public transportation.

The complete results are available for viewing at: http://www.competitive.org.ph/cmcindex