The Cities and Municipalities Competitiveness Index is an

annual ranking of Philippine cities and municipalities

developed by the National Competitiveness Council through
the Regional Competitiveness Committees (RCCs) with the
assistance of the United States Agency for International
Development.

The CMCI local competitiveness Framework adopted the

framework developed by Michael Porter, which is also being
used in a number of global surveys on competitiveness.
Porter’s definition of competitiveness focused on the idea of
productivity. Productivity is defined as output per unit of input.
Effectively, it attempts to measure how many final products
can be produced using a limited number of inputs. Productivity
also requires that efficient outputs command value in the local
up to the global marketplace. Porter defined competitiveness
as based on location and is essentially the productivity that
companies located there can achieve (Porter,2004). He
explains location as a country’s underlying source of its
resources and productivity as how the country uses these
resources. Using the same lens, local competitiveness is how
a city or municipality knows its resources and how it uses
these to improve its standard of living.

This is critical because Porter’s definition encompasses all

sectors of society. According to him, “almost everything
matters for competitiveness – schools, roads, financial
markets, the consumer.” He also cautioned that to make all of
these work for competitiveness, people and culture must also
catch up with the mindset. Hence, improving competitiveness
takes time.

Improving productivity allows firms, cities, municipalities and

countries to improve their standards of living and thereby give
prosperity to its citizens.

Provinces are the largest units in the political structure of the

Philippines. It consists, in varying numbers, of municipalities
and, in some cases, of component cities. Its functions and
duties in relation to its component cities and municipalities
are generally coordinative and supervisory.

Cities with a minimum population of two hundred thousand

(200,000) inhabitants, as certified by the National Statistics
Office, and with the latest annual income of at least Fifty
Million Pesos (P50,000,000.00) based on 1991 constant prices,
as certified by the city treasurer.

Cities which do not meet the above requirements (the

requirements of a Highly Urbanized City) shall be considered
component cities of the province in which they are
geographically located. If a component city is located within
the boundaries of two (2) or more provinces, such city shall be
considered a component of the province of which it used to be
a municipality.

First Class Municipalities are municipalities which have an

average annual income of P55M or more during the previous
four calendar years while Second Class Municipalities have a
latest annual income of P45M to P54,999,999 during the
previous four calendar years.

Third Class Municipalities are municipalities which have an

average annual income of P35M to P44,999,999; Fourth Class
Municipalities have an average annual income of P25M to
P34,999,999; Fifth Class Municipalities have an average annual
income of P15M to P24,999,999; and Sixth Class Municipalities
have less than P15M average annual income.

The uses of index Public Sector: The Index can be used as a

diagnostic tool by local government officials to assess the
competitiveness of their city or municipality and identify areas
for improvement and collaboration. Data can provide insight
for policy making, development planning and investment
promotion.

Private Sector: For the business community, the Index can

serve as a guide in deciding where to locate. Aside from the
overall score, data on the different indicators will prove
valuable depending on the specific needs of their business.

Academe: The Index also paints a general picture of

Philippine cities and municipalities which may be used by the
academe, civil society and even tourists as a take-off point for
further research.

About the Index - Cities and Municipalities Competitive Index

(dti.gov.ph)