Local Government Competitiveness (PH0039)

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.

For Commitment details, see https://www.opengovpartnership.org/documents/philippines-mid-term-progress-report-2015-2017.

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.]