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Philippines

Local Government Competitiveness (PH0039)

Overview

At-a-Glance

Action Plan: Philippines National Action Plan 2015 – 2017

Action Plan Cycle: 2015

Status: Inactive

Institutions

Lead Institution: National Competitiveness Council (NCC)

Support Institution(s): Department of Trade and Industry, National Economic Development Authority – Philippine Statistics Authority , Department of Interior and Local Government. Academe, Local Business Groups

Policy Areas

Capacity Building, Open Data

IRM Review

IRM Report: Philippines End-of-Term Report 2015-2017

Starred: No

Early Results: Marginal

Design i

Verifiable: Yes

Relevant to OGP Values: Access to Information Technology

Potential Impact:

Implementation i

Completion:

Description

CMCI aims to cover 70% of all the local governments across the country. This also intends to get the participation of all regions including the Autonomous Region in Muslim Mindanao (ARMM).
The data can be used by potential investors in deciding where to locate their businesses. More importantly, the data can serve as a tool for local executives to evaluate the competitiveness of their locality and take the steps to improve performance and attractiveness for investments.
All the results and data provided through the CMCI website will allow the general public to see and compare the performance of
their locality vis-à-vis other cities across the country. This will also help the citizens assess the effectiveness of their local government leaders and become more informed voters.

IRM End of Term Status Summary

11. Local government competitiveness

Commitment Text:

· Difficulty in gathering data at city and municipality level;

· Sustainability of data collection affected by funding

· Time lag in national data surveys.

The objective is to design and provide a diagnostic tool that can be used by LGU officials in assessing their level of competitiveness and identifying areas for improvement and collaboration

Responsible institution: National Competitiveness Council (NCC)

Supporting institutions: Department of Trade and Industry, National Economic Development Authority – Philippine Statistics Authority, Department of Interior and Local Government. Academe, Local Business Groups

Start date: 1 May 2014

End date: 31 July 2015

Commitment Aim

The commitment aimed to support the design and implementation of the City and Municipalities Competitiveness Index (CMCI), a tool that local government units (LGUs) can use to assess their competitiveness and identify areas for improvement and collaboration.[Note: The Index provides a picture of how local government units are performing in terms of economic dynamism, government efficiency, and infrastructure: Economic dynamism was scored according to 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 was 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 the existing road network, distance from city center to major ports, Department of Tourism-accredited accommodations, health infrastructure, education infrastructure, basic utilities, infrastructure investments, ICT connection, ATMs and public transportation. (See Inquirer, Manila is most competitive city; Davao Sur for provinces, Amy Remo, 17 July 2015. Available at: http://business.inquirer.net/195432/manila-is-most-competitive-city-davao-sur-for-provinces#ixzz4PuTIPm71)] This aimed to encourage LGUs to improve their competitiveness consistently over time. Specifically, it aimed to cover all 144 cities across the country, increase the number of LGUs covered from 1,120 to 1,232, and improve on the preliminary target of overall competitiveness score of 20 percent of total number of LGUs covered and institutionalize the CMCI.

Status

Midterm: Complete

By the midterm, all the deliverables of the commitment were accomplished. The number cities covered increased from 142 in 2015 to 144 in 2016; the number of LGUs covered increased from 1,120 in 2015 to 1,389 in 2016. Further, 57 out of 142 cities (40 percent) and 391 out of 978 (40 percent) municipalities improved their overall competitiveness index score in 2016. Procedures for collecting data were also completed and have been institutionalized through a memorandum of agreements with relevant agencies.[Note: For details, see Aceron, Joy. 2017. Philippines Progress Report, 2015-2017. Open Government Partnership Independent Reporting Mechanism. ]

Though this deliverable was completed as of midterm, the NCC reports that it exceeded its own target for 2017, covering a total of 1,487 local governments. It was also able to cover the newly converted city, General Trias.[Note: National Competitiveness Council, response to the questionnaire of the IRM Researcher for the End of Term Report. Sent on October 6, 2017.] The CMCI’s website also remains operational with the latest survey results.

Did It Open Government?

Access to Information: Marginal

The commitment has generated, systematized, and publicized information on the competitiveness of local governments, information that was not accessible before. The 40 percent increase in the level of competitiveness of the LGUs that were covered by assessment indicates change in practices to improve competitiveness, specifically practices related to economic dynamism, government efficiency, and infrastructure.[Note: The Index provides a picture of how local government units are performing in terms of economic dynamism, government efficiency, and infrastructure: Economic dynamism was scored according to 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 was 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 the existing road network, distance from city center to major ports, Department of Tourism-accredited accommodations, health infrastructure, education infrastructure, basic utilities, infrastructure investments, ICT connection, ATMs and public transportation. (See Inquirer, Manila is most competitive city; Davao Sur for provinces, Amy Remo, 17 July 2015. Available at: http://business.inquirer.net/195432/manila-is-most-competitive-city-davao-sur-for-provinces#ixzz4PuTIPm71)] This indicates that LGUs acted on the early findings of CMCI to improve their competitiveness, and that progress can be scaled up and sustained. One gap that has been repeatedly raised in interviews is whether the public is accessing the information and using it to engage government,[Note: Manila is the most competitive city; Davao Sur for provinces, Amy Remo, 17 July 2015. Available at: http://business.inquirer.net/195432/manila-is-most-competitive-city-davao-sur-for-provinces#ixzz4PuTIPm71. ] particularly in improving local government’s performance on competitiveness. This is viewed by stakeholders as important for ensuring that the gains of this initiative are sustained.

Carried Forward?

This commitment will not be carried forward in the next national action plan. According to NCC, this is because all the deliverables have been completed.[Note: National Competitiveness Council, response to the questionnaire of the IRM Researcher for the End of Term Report. Sent on October 6, 2017.] The IRM researcher recommends that the program continues its work, focusing on making the CMCI data user-friendly, actionable, and accessible to citizens. Closer attention should be paid to how LGUs act upon the CMCI findings to undertake reforms that improve their competitiveness, particularly focusing on LGUs that have not improved their scores. The IRM researcher also reaffirms the recommendation to harmonize the CMCI with other relevant assessment indices for efficiency and greater impact.[Note: Ibid.]


Commitments

  1. Civil Society Participation to Improve LGU Service Delivery

    PH0042, 2017, Capacity Building

  2. Engage Communities in the Fight Against Corruption, Criminality and Illegal Drugs

    PH0043, 2017, Capacity Building

  3. Ease of Doing Business:Competitiveness

    PH0044, 2017, Legislation & Regulation

  4. Ease of Doing Business: Philippines’ Anti-Red Tape Challenge)

    PH0045, 2017, Capacity Building

  5. Citizen Participatory Audit)

    PH0046, 2017, Audits and Controls

  6. 8888 Citizens’ Complaint Center

    PH0047, 2017, Public Participation

  7. Government Feedback Mechanism

    PH0048, 2017, Capacity Building

  8. Access to Information Legislation

    PH0049, 2017, Capacity Building

  9. e-Participation Through the National Government Portal

    PH0050, 2017, Citizenship and Immigration

  10. Open Budget Index and Budget Reform Bill

    PH0051, 2017, E-Government

  11. Philippine Extractive Industries Transparency Initiative

    PH0052, 2017, Beneficial Ownership

  12. Institutional Mechanisms for Disaster Response

    PH0053, 2017, E-Government

  13. Shelter Development for Informal Settler Families

    PH0054, 2017, E-Government

  14. Open Local Legislative Processes

    PH0055, 2017, E-Government

  15. Law on ATI

    PH0029, 2015, Right to Information

  16. Transparency of Local Govs Plans and Budgets

    PH0030, 2015, Fiscal Transparency

  17. Open Data

    PH0031, 2015, Open Data

  18. Extractive Industries' Transparency

    PH0032, 2015, Extractive Industries

  19. CSO Engagement in Public Audit

    PH0033, 2015,

  20. Civic Enagement in Local Budget Planning

    PH0034, 2015, Participation in Budget Processes

  21. Civic Enagement in Local Budget Planning – Community Capacity-Building

    PH0035, 2015, Capacity Building

  22. Improving Public Service Delivery

    PH0036, 2015, Public Participation

  23. Improving Local Govs' Performance

    PH0037, 2015, Capacity Building

  24. Improve the Ease of Doing Business

    PH0038, 2015, Private Sector

  25. Local Government Competitiveness

    PH0039, 2015, Capacity Building

  26. Public and Private Sector Dialogue

    PH0040, 2015, Private Sector

  27. Improving Corporate Accountability

    PH0041, 2015, Private Sector

  28. Sustain Transparency in National Government Plans and Budgets

    PH0020, 2013, E-Government

  29. Support for the Passage of Legislations on Access to Information and Protection of Whistleblowers

    PH0021, 2013, Legislation & Regulation

  30. Engage Civil Society in Public Audit

    PH0022, 2013, Public Participation

  31. Enhance Performance Benchmarks for Local Governance

    PH0023, 2013, Capacity Building

  32. Enhance the Government Procurement System

    PH0024, 2013, E-Government

  33. Strengthen Grassroots Participation in Local Planning and Budgeting

    PH0025, 2013, Participation in Budget Processes

  34. Provide More Accessible Government Data in a Single Portal and Open Format

    PH0026, 2013, E-Government

  35. Starred commitment Initiate Fiscal Transparency in the Extractive Industry

    PH0027, 2013, Extractive Industries

  36. Starred commitment Improve the Ease of Doing Business

    PH0028, 2013, Private Sector

  37. Disclose Executive Budgets

    PH0001, 2011, Fiscal Transparency

  38. Access to Information Initiative

    PH0002, 2011, Right to Information

  39. Broader CSO Engagement

    PH0003, 2011, OGP

  40. Participatory Budget Roadmap

    PH0004, 2011, Participation in Budget Processes

  41. Local Poverty Reduction

    PH0005, 2011, Subnational

  42. Empowerment Fund

    PH0006, 2011, Capacity Building

  43. Social Audit

    PH0007, 2011, Public Participation

  44. Results-Based Performance

    PH0008, 2011, Capacity Building

  45. Performance-Based Budgeting

    PH0009, 2011, Capacity Building

  46. Citizen’S Charters

    PH0010, 2011, Capacity Building

  47. Internal Audit

    PH0011, 2011, Audits and Controls

  48. Single Portal for Information

    PH0012, 2011, E-Government

  49. Integrated Financial Management System

    PH0013, 2011, E-Government

  50. Electronic Bidding

    PH0014, 2011, E-Government

  51. Procurement Cards

    PH0015, 2011, Open Contracting and Procurement

  52. Manpower Information System

    PH0016, 2011, E-Government

  53. Expand the National Household Targeting System (NHTS)

    PH0017, 2011, Public Participation

  54. e-TAILS

    PH0018, 2011, E-Government

  55. Budget Ng Bayan

    PH0019, 2011, Fiscal Transparency