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.
Cities and municipalities are ranked on their competitiveness based on an overall competitiveness score. The overall competitiveness score
is the sum of scores on three main pillars which pool data from several sub-indicators. The three main pillars are: economic dynamism,
government efficiency and infrastructure. Scores are determined by the values of the actual data, as well as the completeness of the
submitted data. The higher the score of a city or municipality, the more competitive it is.
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 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.