I.

INTRODUCTION
For developing economies like the Philippines, the importance of establishing local indicators of development and competitiveness cannot be
stressed enough. Such an indicator system can pinpoint the benefits and connections of the outcomes of global ranking efforts to local government
units (LGUs). It can also identify the economic strengths and weaknesses of LGUs, and allow local-level comparisons, which could help lagging
LGUs to catch up with better-performing local governments. Cities and large municipalities can gain especially from such indicators as they are
centers of economic activity and generate investments and resources for areas around them and provinces where they are located. Moreover,
with the current pandemic situation, there is a glaring difference on how the most and least competitive cities were able to combat and adapt in
this pandemic.

In 2012, the National Competitiveness Council (NCC), with the assistance of the United States Agency for International Development (USAID),
through its Investment Enabling Environment Project (INVEST); developed a framework for identifying local economic indicators spanning three
pillars of Economic Dynamism, Government Efficiency, and Infrastructure. This initiative has been formalized by the NCC in 2013, wherein, the
gathering of such indicators among local governments was established and was named, the Cities and Municipalities Competitiveness Index
(CMCI). Since then, the CMCI has addressed the lack of a standardized system for compiling such local indicators in the Philippines, while
allowing LGUs to assess their relative level of competitiveness and derive insights for local policymaking and planning. As part of this initiative,
Regional Competitiveness Committees (RCCs) were also established, headed by DTI Regional Directors, which have been responsible for
regularly tracking local competitiveness indicators, formulating programs to improve competitiveness, and harmonizing investment promotion
activities across their respective regions.

After three (3) year (2015), more competitiveness ranking categories were put into place, as data gathered from the index where grouped
according to income classification, i.e. Highly Urbanized Cities (HUCs), Component Cities (CC’s), 1st and 2nd Class Municipalities, 3rd and 4th
Class Municipalities, 5th and 6th Class Municipalities, and Provinces. The following year (2016), while the country was picking up with the impact
of the typhoon Haiyan (locally Yolanda), the CMCI was further expanded, with the help of USAID’s Strengthening Urban Resilience for Growth
with Equity (SURGE) project, to account for sustainability and resilience as critical factors of local and regional competitiveness. The fourth pillar
of Resilience was added to the CMCI, and the list of indicators included within the index was expanded from 30 to 40 indicators.

In 2018, Republic Act 11032 (“The Ease of Doing Business and Effective Government Service Act”) was implemented, which put most functions
of the NCC with the Anti-Red Tape Authority (ARTA). This is when the DTI-CB implemented the CMCI Program to continue advocating for
competitiveness.

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Because of the Covid-19 pandemic in 2020, which severely affected the global economy, the rush to economic recovery has given an imperative
for local governments to be ready for digitalization or intensify capacities if they had already embarked on it. The lockdowns have shifted economic
activities online. Without access to stable internet connections, local governments are handicapped from participating in the new global economy.
LGUs that have prepared for the fourth industrial revolution and the advent of artificial intelligence (AI) recognized that innovation is an important
component of competitiveness. Hence, the Innovation Pillar started to be crafted and have been formally introduced as the 5th Pillar in 2022.
Simultaneously, more LGUs were taking part in the program, including those from the Bangsamoro Autonomous Region of Muslim Mindanao

Implementation of the CMCI Program for a decade is a milestone as it reaches 99.8% of local government units (LGUs) participation in the
country. From 285 LGUs in 2012, the coverage has been maximized to 1,631 LGUs.

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II. THE FRAMEWORK FOR LOCAL COMPETITIVENESS

A. Definition of Competitiveness, Productivity, and Resilience

The CMCI uses the framework on competitive advantage developed by Harvard University professor Michael Porter, which has also been
adopted by various global competitiveness surveys. Porter’s definition of competitiveness focuses on the idea of productivity— that is, on how
many final products and services, able to command value in local, national, and global markets, can be produced using a limited number of
inputs. Greater productivity allows the creation of the same or greater amounts of outputs using less inputs (e.g., rice harvested using
agricultural inputs, or jeepney passengers per trip using fuel and labor inputs). However, productivity can also be measured based on time
(e.g., the productivity of t-shirt sewers, based on the number of t-shirts produced per hour). In these, productivity is mostly the same as
efficiency, allow the creation of more valuable products and services with less inputs and activities.

Porter defined competitiveness as based on location and as 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 a country harnesses such resources.
Local competitiveness refers to how a city or a municipality takes stock of its resources, as well as how it uses them to improve its standard
of living. Improving productivity allows firms, cities, municipalities and countries to improve their standards of living and thereby deliver
heightened prosperity to citizens.

It is also important to distinguish between “created” and an “inherited” prosperity (Ketel 2006). Inherited prosperity is based on limited natural
resources which are transformed financial assets (e.g. mineral, fuels, agricultural lands). But even more important is prosperity which is
“created” through purposeful activities that allow a locality to realize substantial value creation based on its existing natural and physical
conditions, its human, physical, financial and natural resources, as well as the systems under which it operates. Because of this, the promotion
of competitiveness requires a whole-of-society approach to drive long-term gains in a locality’s standard of living.

Finally, competitiveness should allow for sustainable prosperity over time. Localities and countries have to consider the capacity of their value-
creation activities to mitigate, adapt, and to recover from various shocks and stresses in a manner that reduces vulnerabilities and facilitates
inclusive growth. Here, resilience is defined as the capacity of a locality to facilitate its firms and industries to create jobs, raise productivity,
and increase the incomes of citizens over time no matter what shocks and stresses it encounters (Ang 2016; Llanto 2016). This means that

3
the role of local government is paramount in ensuring a competitive environment to enable firms to sustain their profits, create jobs and
increase the productivity of people. Localities must be resilient in their infrastructure, governance, social and environmental systems to achieve
this.

B. Framework for Local Competitiveness and Resilience

Taking off from these definitions, the CMCI consists of a framework for promoting sustainable productivity and prosperity across cities and
municipalities in the Philippines. It is based on an analysis of the most common factors determining competitiveness and productivity found
among the surveys conducted globally and nationally. Among others, five global surveys - the Doing Business Survey of the International
Finance Corporation (IFC), the sustainability-adjusted Global Competitiveness Index prepared annually by the World Economic Forum (WEF),
the IMD’s Competitiveness Survey, SOLABILITY’s Global Sustainable Competitiveness Index, and the United Nations World Risk Report -
were examined to determine common factors that were relevant to the Philippines. Seven local-level surveys and measurement tools were
also studied – the Philippine Cities Competitiveness Ranking Project of the Asian Institute of Management (AIM), the NCC’s internally
generated factors, Regional Competitiveness Factors, the Asian Development Bank’s (ADB) CCED, the Rockefeller Foundation’s City
Resilience Index, the US Agency for International Development’s Resilience Agenda, as well as the Food and Agriculture Organization’s
Resilience Measurement Tool.

To construct the CMCI’s sustainable competitiveness framework, guidelines in developing indicators from the Chief Economic Development
Society - UK (CEDOS, 2011), the Local Government Economic Indicators Framework – New Zealand (BERL, 2010) and the POLICOM Local
Economic Strength Ranking (2012) were adapted. The FEEE Principle, i.e., Few in Number, Easy to Collect, Easy to Understand and
Effective Measures of Performances, was also observed.

C. Framework for Local Competitiveness and Innovation

Digitalization is a global force that innovation can ride through and expand a locality’s competitiveness. The pandemic only hastened its
expansion and importance. Towards these, the CMCI has been expanded to add the element of innovation as another pillar. With or without
the pandemic, innovation has become a critical element of local competitiveness. Combined with the other pillars, innovation can attract
more investments, foster inter local cooperation and improve social and economic indicators of practicing localities.

4
 Compared to the overall competitiveness and resiliency, innovation models at the global and national levels are still limited. Nonetheless, we
already explained in the foregoing the necessity of adding this pillar as a critical element of competitiveness. We cited the idea that
competitiveness is productivity that is based on creativity and not on inheritance. This idea already incorporates innovation as it is primarily
the process of making creativity useful or adding value. Note that inherited prosperity is heavily dependent on the natural endowments of a
locality which over time and overuse of these endowments may lead to its eventual end as in the case of minerals. Created prosperity hinges
on the idea that it is not only focused on the benefits reaped today but also is concerned about the benefits that will accrue to the future
generation. Hence, the present economic growth of the locality is necessary but not sufficient condition for competitiveness. This is because
economic growth on its own can put pressures on the natural environment leading to scarcity in basic resources or inherited prosperity such
as water, energy and minerals making productivity of that locality unsustainable. At the same time, economic structures can cause disparities
in income and development making it necessary to increasing demand for inclusion and participation of those left behind by the economic
expansion. Thus, for competitiveness to be sustainable, it has to consider the social and environmental dimensions apart from the purely
economic ones. Likewise, even if a locality has sustainable mechanisms in place, it still has to consider how to manage and adopt productivity
when it reaches a point where it can no longer improve. Therefore, there is a need to consciously consider how creativity can further improve
the productivity levels and subsequently improve overall competitiveness of the locality as well.

To construct the CMCI’s innovative competitiveness framework, rankings, reports and guidelines and in developing indicators from both the
global and national level were examined: World Intellectual Property Organization’s (WIPO) Global Innovation Index (GII), International
Innovation Index, Bloomberg Innovation Index, Consumer Technology Association (CTA)’s International Innovation Scorecard1, US Chamber
International Intellectual Property Index2, Illinois Innovation Index3 , American Innovation Index (AII)4 , and Kelly Business School in Indiana
University’s Innovation Index 2.0.

After studying and comparing existing global, national and sub-national reports on innovation and competitiveness, as well as comparisons
and studies on cities and municipalities used by different agencies, relevant indicators were identified and considered to be integrated into
the existing CMCI. In this process, it is crucial to put in perspective the experience of the past CMCIs. It can be understood that the process
as of date required significant efforts from the different local governments and the national government through the DTI to come up with a
database system. As explained earlier, many elements of innovation are already included in the CMCI. However, there is a need to be
deliberate and intentional in adding innovation-related components into the CMCI in order for it to include elements of creativity and risk-
taking. Furthermore, Prof. Porter himself added the idea of innovation when he said, “advantage must come from the ability to create and
then commercialize new products and processes…” (Porter, 2011). Basically, elements in a locality that support the ability to create and

1
https://www.cta.tech/Advocacy/Innovation-Scorecard/International-Scorecard
2
https://www.theglobalipcenter.com/report/ipindex2021/
3
https://www.istcoalition.org/data/index/
4
https://americaninnovationindex.com/about/the-american-innovation-index/

5
commercialize new products are what comprise what innovation element is. He further explains that competitiveness advances when the
public and private sectors work together to promote a favorable environment for innovation.

The convergence among the different surveys, frameworks, and reports led to five (5) core and convergent pillars necessary for realizing
sustainable competitiveness (see Figure 1): Economic Dynamism, Government Efficiency, Infrastructure, Resilience, and Innovation.
Figure 1. The Five Pillars for Sustainable Competitiveness

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 1. Economic dynamism is usually associated with activities that create stable expansion of businesses and industries and higher
employment. The pillar matches the output and productivity of the local economy with the local resources. Localities are centers of
economic activities, and due to this, business expansion and job creation are easily observable in local settings.

2. Government efficiency refers to the quality and reliability of government services and support for effective and sustainable productive
expansion. This factor looks at government as an institution that is generally not corrupt; able to protect and enforce contracts; apply
moderate and reasonable taxation and is able to regulate proactively (La Porta et al, 1999).

3. Infrastructure refers to the physical assets that connect, expand, and sustain a locality and its surroundings to enable the provision of
goods and services. It involves basic inputs of production such as energy, water; interconnection of production such as transportation,
roads and communications; sustenance of production such as waste, disaster preparedness, environmental sustainability; and human
capital formation infrastructure.

4. Resilience refers to the capacity of a locality to build systems that can absorb change and disturbance and being able to adapt to such
changes (Llanto, 2016). It spans frameworks that bind LGUs and their constituents to prepare for possible shocks and stresses; budgeting
for disaster risk reduction; hazard/risk identification mechanisms; resilience-related infrastructure; and resilience-related mechanisms.

5. Innovation is the creation, development, and implementation of a new product, process, or service in the aim of improving efficiency,
effectiveness, or competitive advantage.

These core pillars need to be linked to the sub-national, national, and global indicator systems so that they can contribute to overall national
competitiveness within the global perspective. In this regard, Figure 2 shows how the five pillars of CMCI link the local up to the global levels of
competitiveness and development. By contributing to the aggregation/disaggregation of indicators as well as planning and policy-making efforts,
the CMCI can be seen as a tool for diagnosing, guiding, improving, and monitoring local, regional, and even national dimensions of economic
development and competitiveness. In distinguishing the different pillars of sustainable competitiveness at different levels, the CMCI can also
generate knowledge and insights not only for the national and local government, but also other competitiveness stakeholders, such as the private
sector, the academe, and civil society.

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Figure 2. National Economic Development and Competitiveness Framework

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III. DESCRIPTION, COLLECTION, AND PROCESSING OF
COMPETITIVENESS INDICATORS
Each pillar of competitiveness has contributory indicators that, in turn, are the basis of the sub-indicators that will be collected and used as
bases for ranking cities, municipalities, and provinces in the country. This chapter contains the details needed to collect the data for the
indicators—definition or description of the indicator, the measurement type or data required, and the source of data with, the lists of sub-
indicators for the indicators under each pillar.

A. Economic Dynamism
1. Size of the Local Economy

The size of the economy approximates the level of economic activity in the LGU, which, at the national level, is measured by gross
domestic product. At the local level, the proxies for local economic activity include gross sales, which can be a measure of local
production, and the number of business registrants and total capitalization of newly registered business enterprises, which indicate
the level of new investment in the locality.

Table 1. Detailed Indicators for Size of the Local Economy

Sub-Indicators Data Required Source Definition
1.1. Gross Philippine Pesos Municipal/City Treasurer’s -This indicator is a proxy
Sales of (PhP) Office (M/CTO) of the for the level of
Registered (e.g 12345678.90) local government. Note production in the LGU.
Firms that the business (or -It refers to the income
Mayor’s Permit) (at invoice values)
application form of cities received for goods and
and municipalities services over some
contains a field on gross period of time
sales - Measures size of local
economic expansion.

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 1.2. Total Philippine Pesos City/Municipal Treasurer’s -This indicator is a proxy
Capitalization (PhP) Office (M/CTO) of the for new investment in
of NEW (e.g 12345678.90) local government. - the locality.
Businesses Business Permits -Capitalization is usually
approved by the BPLO- defined as the
LGU; aggregate valuation of a
-Individual BPLS Forms company based on its
processed. current share price and
the total number of
outstanding stocks.

2. Growth of the Local Economy

The dynamism of the local economy can also be gauged by the rate of expansion of production activities, number of establishments and
investment in the area. Hence, the growth of the proxy indicators for local production described above can approximate the economic
expansion in the LGU. At the national level, this indicator is similar to the growth of gross domestic production.
Table 2. Detailed Indicators for Size of the Growth of the Local Economy
Data
Sub-Indicators Source Definition
Required
2.1. Gross Sales Number Municipal/City -This indicator measures the
of Registered (e.g. 123) Treasurer’s Office growth of the level of production
Firms (M/CTO) of the local in the LGU.
government. Note that -It is based on the income (at
the business permit invoice values) received for
application form of cities goods and services over some
and municipalities period of time
contains a field on gross - Measures growth of local
sales economic expansion.
2.2. Total City/Municipal -This indicator measures growth
Capitalization of Treasurer’s Office of new investment in the locality.
NEW Businesses (M/CTO) of the local
government. -Business
Permits approved by the
BPLO-LGU;

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 -Individual BPLS Forms
processed.

3. Active Establishments in the locality

Table 3. Detailed Indicators for Growth of the Active Establishments in the locality
Data
Sub-Indicators Source Definition
Required
3.1. Total 3.1.1. Number of Number Business Permits and This indicator
Number of approved (e.g. 123) Licensing Office measures the
Business business permits (BPLO) or the number of
Registrations for NEW business City/Municipal “active”
applications Treasurer’s Office establishments in
3.1.2. Number of (M/CTO) (if a locality.
approved city/municipality has
business no separate BPLO) -Measures
RENEWALS expanse of local
economic activity

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4. Safety Compliant Business
Table 4. Detailed Indicators for Structure of Safety Compliant Business

Sub-Indicators Data Source Definition

Required

4. Safety 4.1. Number of Number Office of Building This indicator measures regulation
Compliant Occupancy Permits (e.g. 123) Official (OBO) and compliant construction activities in a
Business* Approved City or Municipal locality, which in turn, also approximates
Engineer's Office investment activities.
4.2. Number of Number Local Bureau of Fire Actual number of Fire Safety Inspection
approved fire safety (e.g. 123) Protection Certificates (FSIC) released by local BFP
inspection in the LGU representing Safety
compliant businesses

5. Employment Generation
The level of employment is an indicator of an economy’s performance. Usually a robust economy, which produces goods and services
at a fast pace, will require people at factories and service establishments. Hence, the demand for jobs in an LGU can be gauged from a
locality’s employment level.

Table 5. Detailed Indicators for Employment Generation

Sub-Indicators Data Source Definition
Required
5.1. Number of declared Number BPLO or the M/CTO Comprising of all persons of working
employees for NEW (e.g. 123) where data will come age who during a specified brief
business applications from the application period, either one week or one day,
5.2. Number of declared form which has a field were in paid employment (i.e. at
employees for business on “number of work receiving some salary or
RENEWALS payment in cash or kind) or self-

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 employed." employed.
PESO Office. -This indicator Measures local
employment and job absorption.

6. Cost of Living

Cost of living (COL) is usually defined as “the basic cost of the food, clothing, shelter, and fuel necessary to maintain life, especially at a standard
regarded as basic or minimal.” The COL is a usual measurement that allows comparison of expenses of basic commodities across locations. An
investor may opt to go to a place with low prices of goods and services since it may imply lower costs of production. Lower cost of goods and
services may also mean adequate basic resources, since cost of goods is a function of supply and demand conditions. Generally, places with low
cost of living may be more attractive, though across locations, higher cost of living is observed in highly urbanized areas compared to lower-income
classed LGUs.

Table 6. Detailed Indicators for Cost of Living

Sub- Data Source Definition
Indicators Required
6.1. Local Rate Databank and Measures general local cost of
Inflation Rate Information Services living.
Division of the NSO – - NSO Provincial Inflation Rate
[email protected] where LGU is located.
- the local Inflation Rate will be
based on the changes in the
price level in the province
where LGU is located

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7. Cost of Doing Business
Investors are usually attracted to areas with low prices of critical inputs to production. For purposes of computing for the competitiveness
index, there are six cost sub-indicators included in the sub-factor on the cost of doing business, i.e. water, electricity, petroleum, rent,
land and labor.

Table 7. Detailed Indicators for Cost of Doing Business

Sub-Indicators Data Required Source Definition

7.1. Cost of Electricity PhP per kilowatt -Local Power is a major cost component of
of Commercial Users hour electric production.
(e.g. 16.50) cooperative -Price after minimum per kilowatt hour
consumption for Commercial
(O : "Zero" if its
free,
NDA: for No
Data Available )

7.2. Cost of Water of PhP per cubic -Local Water Water is a major cost component of
Commercial Users meter Service production, the rates of which are classified
(e.g. 16.50) Provider according to type of users.
-Price after minimum per cubic meter
(O : "Zero" if its consumption for Commercial
free,
NDA: for No
Data Available )

7.3. Price of Diesel as PhP per liter -Biggest -Price of Diesel at the biggest Gas station in
of December 31 per Gas Station the locality
year (ex. 37.50) Based on (as of December 31)
Volume/

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 Sales in the
Locality.

7.4. 7.4.1. 7.4.1.1. Plantation PhP -Regional Minimum -This indicator is a

Daily Agricultural per day Wages: National proxy for the cost
Minimum 7.4.1.2. Non- (ex. Wages and Productivity of labor in the
Wage Plantation 416.50) Council (NWPC) locality.
Rate website -The minimum
7.4.2. 7.4.2.1. (http://www.nwpc.dole. wage rate
Non- Establishments with gov.ph) which contains prevailing in the
Agricultural more than 10 workers a section on daily region where the
minimum wage rates LGU is located will
7.4.2.2. per region. be the relevant
Establishments with 10 -‐ Wages by data for this
workers or below sector: Regional offices indicator.
of the Department of
Labor and
Employment (DOLE)

7.5. Cost of Land in a PhP per square City Rental Rate of largest commercial space in
Central Business meter Planning the poblacion/CBD. This is where the
District Office or economic activity is centralized such as the
LGU Poblacion if there are no CBDs
7.6. Cost of Rent of the PhP per square Engineer's
Largest Commercial meter per Office
Space in the Locality month. If rent is
in pesos
monthly, must
divide by sq m

(ex. 496.50)

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8. Financial Deepening

Investors are usually attracted to areas with low prices of critical inputs to production. For purposes of computing the competitiveness index,
there are six cost sub-indicators included in the sub-factor on the cost of doing business, i.e. water, electricity, petroleum, rent, land and labor.

Table 8. Detailed Indicators for Cost of Doing Business

Sub-Indicators Data Source Definition
Required
8.1. Number of Number -Bangko Sentral ng The Bangko Sentral ng Pilipinas
Universal/Commercial Pilipinas (BSP) – for (BSP) classifies financial
Banks most of the data on institutions into 2 categories: (1)
8.2. Number of Thrift banks and non-bank the broad category of banks
and Savings Banks financial institutions constituting the Philippine
8.3. Number of Rural -BPLO to get data banking system which is
Banks from the business composed of universal and
8.4. Number of Non- permit application commercial banks, thrift banks,
Bank Financial form, i.e. the field on rural and cooperative banks; (2)
Institutions “lines of activity” which non-banks with quasi banking
(microfinance, can be used in getting functions such as financial
cooperatives) the number of financial cooperatives, savings and loan
8.5. Number of institutions by type; associations, pawnshops,
Pawnshops/Money -Cooperative microfinance institutions. If the
Changers / Foreign Development pawnshop functions as a money
Authority (CDA) changer or remittance center, it
-Local groups on must only be counted once since

16
 Exchange/Remittance financial institutions this is now grouped into 1
Center like the local branches category.
of the Banking
Association of the
Philippines, Rural
Banks Association of
the Philippines

9. Productivity

The number of financial institutions operating in a locality is usually a good measure of financial deepening. Progressive LGUs in highly
urbanized areas will have more banks5 and financial institutions than the secondary or lower classed LGUs. Hence the more financial
institutions in different forms are available in a locality, the more liquid and financially facilitative business activities will be.

Table 9. Detailed Indicators for Financial Deepening

Sub-Indicators Data Source Definition
Required
9.1. Gross Sales of PhP Business Permits Productivity based on gross
Registered Firms sales/worker approved by the BPLO – sales and number of employed.
9.2 Number of (e.g. LGU; individual BPLS -Measures efficiency of local
declared employees 10000.00) Unified forms processed production and potential wage
for business and profit increase.
RENEWALS

10. Presence of Business, Professional and Civil Society Organizations

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In economics, it is often said that the private sector is the driver of economic growth. Following this, it is important to harness private sector organizations,
especially the business groups, to support the LGUs’ efforts at enhancing their competitiveness. The presence of organized business groups is
positively correlated with the potential of an area to improve its competitiveness.

Table 10. Detailed Indicators for Presence of Business and Professional Organizations
Sub-Indicators Data Source Definition
Required

10.1 Total Number - LGU-accredited business - Organized business groups in the

number of LGU groups – LGU’s Planning locality that have legal personalities
recognized / Development Office and are accredited in the locality.
registered - Other Business Operationally, these pertain to: (1)
business Organizations - Records of organizations that are registered with
groups business associations such the Securities and Exchange
as the Philippine Chamber of Commission and are members of
Commerce and Industry nationally accredited business
(PCCI) at national and organizations like the Philippine
regional levels. Chamber of Commerce and Industry;
or (b) business groups that are
accredited by the LGU.
- With promotion strategies for
existing businesses.

(Actual list of business organizations

to be provided and validated by the
RCC focal person/academe)

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B. Government Efficiency
Investors are attracted to areas, which foster a business-friendly environment. Local governments play a critical role in ensuring that policies
are conducive to attract investment. Citing the Global Competitiveness Report again, “Government attitudes toward markets and freedoms
and the efficiency of its operations are also very important: excessive bureaucracy and red tape, overregulation, corruption, dishonesty in
dealing with public contracts, lack of transparency and trustworthiness, inability to provide appropriate services for the business sector, and
political dependence of the judicial system impose significant economic costs to businesses and slow the process of economic development.”

11. Compliance to National Directives: Comprehensive Development Plan (CDP)

The responsiveness of LGUs is assessed in relation to compliance to national directives. Locational preferences and decisions of investors
at the local level are influenced by zonal classifications, which in turn are dependent on the LGUs’ Comprehensive Land Use Plan (CLUP).
Hence, Local Chief Executives, who are forward looking, will usually be up-to-date in revising their CLUP, which is required to be done every
ten years. With the adverse impact of climate change these days, which can destroy localities, the revision of CLUPs has become more
important and so with the need to formulate Disaster Risk Reduction and Management Plans (DRRMP).

Table 11. Detailed Indicators for Compliance to National Directives

Sub-Indicators Data Source Definition
Required
11.1. 11.1.1. YES or NO Planning and -The document that pertains
Comprehensive Presence of Development to the multi-sectoral plan
Development CDP Office of formulated at the city/municipal
Plan (CDP) 11.1.2. Year Year LGU level, which
of Last embodies the vision, sectoral
Update goals, objectives, development
strategies and

19
 policies within the term of LGU
officials and the medium-term.

12. Presence of Investment Promotions Unit (IPU)

The presence of an investment promotions unit highlights the obligation of the local government to provide a conducive business
environment and attract investments. This implies putting in place efficient business permitting processes that grants permits and licenses
at the shortest possible time and with reasonable documentary requirements from business applicants. At the same time, LGUs that set
up investment promotion offices reflect their seriousness in taking care of investor interest and are favorably looked upon by investors.

Table 12. Detailed Indicators for Presence of IPU

Sub-Indicators Data Required Source Definition

12.1. Order/Resolution YES or NO BPLO, Planning This signifies the seriousness of the
Creating Code and LGU to attract investments by having
Development a single unit of investment processing.
12.2. Date of Last Year Office of LGU Observation of the presence of the
Update following: a) local investment
incentives code; b) physical office; c)
12.3. Presence of YES or NO
staff; d) executive order of the mayor
Office and Staff
or resolution of the Sanggunian

(Attach pictures of Physical Office and

Staff; Copy of EO and Investment
Code)

20
13. Compliance to ARTA Citizens Charter

Business registration efficiency also highlights the obligation of the local government to provide a conducive business environment and attract
investments. This implies putting in place efficient business permitting processes that grants permits and licenses at the shortest possible
time and with reasonable documentary requirements from business applicants. At the same time, LGUs that set up investment promotion
offices reflect their seriousness in taking care of investor interest and are favorably looked upon by investors.

Table 13. Detailed Indicators for Compliance to ARTA Citizens Charter

Sub-Indicators Data Source Definition

Required

13.1. Submission of YES or NO Submission and This indicator measures the

Citizens Charter to Validation by commitment of the LGU
ARTA ARTA of LGU regarding it's efficiency in
Citizens Charter. conducting business registration
13.2. Visible Citizens Picture proof of in the form of speed and
Charter in the LGU the visibility of CC effectiveness of LGUs' business
Office in the LGU Office registration processes as well as
avoiding red tape.

21
14. Capacity to Generate Local Resources

Revenue generation, especially from LGU’s own resources, is an indicator of the capacity of the local government to implement investment-
related programs and projects. Most LGUs depend heavily on Internal Revenue Allocation (IRA); hence the Department of Finance recognizes
LGUs that are least dependent on IRA and can generate resources from its own set of taxes and fees. Consistent with this stance of the
government, the capacity to generate resources is assessed based on the share of own-source revenues to the LGUs’ total revenue collection.
LGUs with high own-source revenue shares are associated with better fiscal management.

Table 14. Detailed Indicators for Capacity to Generate Local Resources

Sub-Indicators Data Required Source Definition

14.1. Business Tax collected by the PhP http://www.blg This indicator

LGU (in Php) (e.g. f.gov.ph/# measures the
14.2. Real Property Tax collected 12000000.00) resources that the
by the LGU (in Php) LGUs can generate
through real property
14.3. Total Revenues of the LGU (in
and business taxes,
Php)
which are the two
largest source of local
revenues.

15. Capacity of Health Services

Table 15. Detailed Indicators for Capacity of Health Services

Sub-Indicators Data Required Source Definition

15. 15.1. 15.1.1 Must get the Regional Office Number of health human
Capacity Capacity of Doctors number of each of the resource in the PUBLIC
of Health PUBLIC 15.1.2. health worker Department of and PRIVATE health
Services Nurses category and Health for data facilities in the locality as

22
Health 15.1.3. then divided by on health represented by the
Services Midwives Indicator 56 manpower for number of doctors,
15.1.4 (Population of the PUBLIC nurses, mid-wives and
Medical Locality) to get sector; medical technologists in
Technolo health human LGU Health both PUBLIC and
gists resource per Office to PRIVATE health
15.2. 15.2.1. capita. validate; BPLO institutions in the LGU.
Capacity of Doctors to check By getting the ratio of
PRIVATE registration of each type of health
15.2.2. health related human resource we know
Health Nurses
Services business can know if the local
15.2.3. Philippine health capacity is
Midwives Medical meeting standards
15.2.4 Association
Medical (PMA) for health
Technolo professionals
gists (PUBLIC and
PRIVATE) PSA
for the
population of the
locality
15.3. Ratio of Doctors
in Public and Private
Health Services to
Population
15.4. Ratio of Nurses in
Public and Private
Health Services to
Population
15.5. Ratio of Midwives
in Public and Private
Health Services to
Population

23
 15.6. Ratio of Medical
Technologists in Public
and Private Health
Services to Population

16. Capacity of School Services

Table 16. Detailed Indicators for Capacity of School Services

Sub-Indicators Data Required Source Definition

16.1. 16.1.1. Number of PUBLIC

Secondary School Teachers
Education The number of teachers
Schools 16.1.2. Number of PUBLIC per type of educational
School Students Regional and
service, ie, secondary,
Division Office
16.1.3. Number of Numbers are tech-voc and tertiary in
of the
PRIVATE School collected but the public and private
Department of
Teachers must be sector is compared to
Education for
16.1.4. Number of computed as a the number of students
secondary
PRIVATE School Students ratio to in the same category to
schools.
16.1.5. Ratio of Teachers students in enable us to see the
TESDA for
to Students in Public and each segment education. service
technical
Private Secondary to determine capacities of the locality.
vocational
Education Schools the capacity for The total number of
certificates.
16.2. 16.2.1. Number of PUBLIC quality graduates represent the
CHED for
Tertiary School Teachers education. ready number of skilled
tertiary
Schools human resources at the
16.2.2. Number of PUBLIC schools
tertiary and at the
School Students
technical levels.
16.2.3. Number of School
PRIVATE Teachers

24
 16.2.4. Number of School
PRIVATE Students
16.2.5. Ratio of Teachers
to Students in Public and
Private Tertiary Schools
16.3. 16.3.1. Number of PUBLIC
Tertiary School Graduates
Graduates
16.3.2. Number of
PRIVATE School
Graduates
16.3.3. Total No. of
Tertiary Graduates from
Public and Private Schools
16.4. 16.4.1. Number of PUBLIC
Technical School Teachers
Vocational 16.4.2. Number of PUBLIC
Education School Students
and
16.4.3. Number of
Training
Schools PRIVATE School
Teachers
16.4.4. Number of
PRIVATE School Students
16.5.5. Ratio of Teachers
to Students in Public and
Private Technical
Vocational Education and
Training Schools
16.5. 16.5.1. Number of PUBLIC
Technical School Graduates
Vocational

25
 Education 16.5.2. Number of
and PRIVATE School
Training Graduates
Schools 16.5.3. Total No. of
Graduates Tertiary Graduates from
Public and Private Schools

17. Recognition of Performance

Giving of awards to local governments to recognize good performance has been an accepted practice by both National Government agencies
like the DILG and private sector organizations like the Philippine Chamber of Commerce and Industry. These awards systems have been an
excellent motivator for LGUs. Hence, the number of awards, especially those that promote competitiveness is a good indicator of good
performance of LGUs.

Good governance promotes economic growth and is a critical ingredient to attracting investors in a given locality. Good governance, however,
requires transparency and accountability in public services. These two principles are included in DILG’s LGU performance monitoring and
management system called Local Government Performance Management System.

Table 17. Detailed Indicators for Recognition of Performance

Sub-Indicators Data Source Definition
Required
17.1. Number of DILG Number -Office of the Mayor -This considers the efforts
recognized awards for the listing of of LGUs to improve its
awards (other awards performance based on the
not covered by the following recognized
regional DILG must be awards: (a) Galing;(b) Seal
based on certification) of Good Housekeeping; (c)
-Regional Offices of Pamana ng Lahi; (d) eGov
the DILG for the DILG Awards for LGUs;(e)
awards (e.g. Seal of PCCI’s Most Business-
Friendly LGU Award; (f)

26
 Good Local Excellence in Local
Governance) Governance Awards
(EXCELL);(g) Outstanding
LGUs in Streamlining
BPLS.
17.2. Other 17.2.1. -No Common source, Other Awards given by
awards Regional but counts all credible government and
conferred by Awards competitiveness non-government
credible 17.2.2. related awards given institutions
institutions National by credible
Awards government and non- (Actual list of both DILG
17.2.3. government Recognized Awards and
International institutions Other Awards to be
Awards provided and validated by
the RCC focal person)

18. Compliance to Business Permits and Licensing System (BPLS) Standards

Table 18. Detailed Indicators for Compliance to BPLS Standards

Measurement
Sub-Indicators Type / Data Source Definition
Required
18. 18.1. E- 18.1.1. YES or NO City or This indicator
Getting BPLS Adoption of Municipal measures the speed
Business Software E-BPLS Business and effectiveness of
Permits Software Permits and LGUs’ business
18.1.2. YES or NO Licensing registration processes
DICT E- Office, as well as their
BPLS Department of Compliance to
Software Information Business One-Stop-
18.2. 18.2.1 YES or NO and Shop set by ARTA
Business Presence of Communication and e-BPLS
One-Stop- BOSS Standards either LGU

27
Shop 18.2.2 All YES or NO Technology Initiatiated or set by
(BOSS) year round (DICT) DICT from
registration, payment
and release, on the
issuance of Mayor's
Permits.

This is assessed
based on: number of
procedures or steps
and processing time.
These two criteria for
efficiency are applied
to two types of
permits that are
processed by cities
and municipalities in
the Philippines: (1)
Mayor's Permit for
New Business
Applications; and (2)
Mayor's Permit on the
Renewal of Business
Applications.

-This also looks at the

availability of a
computer-aided
system (e.g. eBPLS)
used for processing
Business permits and
licenses at the LGU
level.

28
19. Peace and Order
Table 19. Detailed Indicators for Peace and Order
Measurement Type
Sub-Indicators Source Definition
/ Data Required
19.1. No. of Number Philippine The ratio of police to
Policemen National Police population to ascertain how
19.2. Police to Ratio: Number of Regional Office ; close or far it is from the
Population Ration Policemen / Total Local PNP standard of 500
Papulation residents/policemen

20. Social Protection: Number of Local Citizens with PhilHealth Registration

Table 20. Detailed Indicators for Social Protection

Measurement
Sub-Indicators Type / Data Source Definition
Required
20.1. Philsys Ratio: Number Local Refers to the overall reach of National ID
Registered of local Philippine registration which allows citizens to
Members of Locality citizens Statistics formally avail of social protection services
to population Ratio registered for Authority such as social pension, 4Ps, PWDs,
National ID (PSA) unemployment benefits, among others.
over the total
population of
locality

29
C. Infrastructure
The presence of infrastructure facilities is often a major consideration in investors’ decision to locate in an area. The World Economic Report
2012-2013 aptly explains the important role of infrastructure in the competitiveness discussions, “Extensive and efficient infrastructure is
critical for ensuring the effective functioning of the economy, as it is an important factor in determining the location of economic activity and
the kinds of activities or sectors that can develop in a particular instance. Well-developed infrastructure reduces the effect of distance between
regions, integrating the national market and connecting it at low cost to markets in other countries and regions. In addition, the quality and
extensiveness of infrastructure networks significantly impact economic growth and reduce income inequalities and poverty in a variety of
ways.” In the Philippine competitiveness index, ten indicators of infrastructure are highlighted.

The adequacy of basic infrastructure facilitates the operations of businessmen and is therefore an important determinant of competitiveness.
Basic infrastructure covers the road network, the distance of the LGU to different entry points, the number of tourist accommodations,
availability of basic utilities and LGU investments in infrastructure.

21. Basic Infrastructure: Roads

Table 21. Detailed Indicators for Basic Infrastructure: Existing Road Network
Measurement
Sub-
Type / Data Source Definition Sub-Indicators
Indicators
Required
21.1. 21.1. Asphalt (in Kilometers Comprehensive This indicator measures
Existing km.) Land Use Plan interconnectivity and the
Road 21.1.2. Concrete e.g. 25km, Final (CLUP) of LGU, level of mobility in the
Network (in km.) Input: 25 ; City or locality. The road network
21.1.3. Gravel 2000m, Final Municipal is estimated by getting the
(in km.) Input: 2 Engineering total length of roads in the
21.1.4. Unpaved office, DPWH. locality (including bridges)
(in km.) (O - "Zero " if as a proportion of the
none, NDA for LGU’s total land area.
No Data
Available)

30
 21.1.5. Total Total Square Measures the total land
Land Area Kilometers area of the locality.
e.g. 250 sq.km,
Final Input: 250 ; (Note that data available
1000 sq.m = .001 on PSA website are in
sq.km, Final Hectares, Please convert
Input: 0.001 data to square Kilometers
1 ha = 0.01 )
sq.km, Final
Input: 0.01

22. Basic Infrastructure: Ports

Table 22. Detailed Indicators for Basic Infrastructure: Distance of City/Municipal Hall to
Major Ports
Measurement
Sub-Indicators Type / Data Source Definition
Required
22.1.1. Distance Kilometers Comprehensive This indicator provides guidance on
to Operating Land Use pLan how near the center of government is
Airport e.g. 25km, (CLUP) of to its entry points, such as operating
(in Km.) Final Input: 25 ; LGU, airports with commercial flights, land
22.1.2. Distance 2000m, Final Engineer’s transport (bus/jeep/UV express)
to Land Input: 2 Office terminals and seaports/local PUBLIC
Transport wharfs.
Terminal (NDA for No
(in Km.) Data Available,
22.1.3. Distance N/A - If the data
to Seaport / required is not

31
 Local PUBLIC applicable to
Wharf your LGU)
(in Km.)

23. Basic Infrastructure: Availability of Basic Utilities

Table 23. Detailed Indicators for Basic Infrastructure: Availability of Basic Utilities
Measurement Measurement
Sub- Sub-
Type / Data Source Definition Type / Data
Indicators Indicators
Required Required
23. Basic 23.1. Average 23.1.1. Number of Engineers Business
Infrastructure: hours of utility Water Hours per Office, environment
Availability of services per 23.1.2. Day (ex. 24) C/MPDO,Utility needs
Basic Utilities day at the Electricity service consistency of
Central (NDA for No provider in the and regularity
Business Data locality to of water and
District Available, include LGU- electricity
N/A if data is owned service services.
not provider - Hours per
applicable to day of
your LGU) available
water and
electricity per
LGU
- Percentage
of households
with water
and electricity
connection
per LGU
23.2. No. of Household
with Water Utility

32
23.3. Percentage of Percentage
Households with Water (ex. 95)
Utility this will be
computed
over
indicator 57
(NDA for No
Data
Available,
N/A if data is
not
applicable to
your LGU)
23.4. No. of Household with Electricity

23.5. Percentage of Percentage

Households with Electricity (ex. 95)
this will be
computed
over
indicator 57
(NDA for No
Data
Available,
N/A if data is
not
applicable to
your LGU)

33
24. Number of Public Transportation Vehicles

Table 24. Detailed Indicators for Number of Public Transportation Vehicles

Measurement
Sub-Indicators Type / Data Source Definition
Required
24.1. Buses Number/Actual -Land Transportation -This indicator
24.2. Passenger Vans count Office – for data on represents the mobility
24.3. Jeepneys the number of buses, of the local population.
(O - "Zero " if passenger vans, -PUBLIC transportation
24.4. Tricycles
none, NDA for jeepneys, taxis includes all types of
24.5. Taxis No Data motorized vehicles duly
24.6. Ferries 24.6.1. Available, N/A - -Philippine Ports recognized by the LGU.
Ship If the data Authority –for data on
24.6.2. required is not ships and fast craft
Fast Craft applicable to
24.7. Passenger Bancas your LGU. ex. -Local Transport
For landlocked Associations – data
24.8. Others 24.8.1.
areas, kindly put will depend on the
Motorized
"N/A" for Water nature of the
Vehicles
Transportation association, e.g.
24.8.2. vehicles ) jeepney associations
Non-
Motorized -C/MPDO – for data
Vehicles on tricycles

25. Education Infrastructure

The quality of the workforce, which is an important factor in productivity and competitiveness, is partly dependent on the availability of health
and education services in the locality. The latter, in turn, depends on the manpower in these sectors as well the available related infrastructure.
In the case of education, both the lack of teachers and schoolrooms have been the excuse for the deterioration in literacy rate. The importance
of manpower in health and education has been addressed in the component on government efficiency in earlier sections (sub-factor on basic
government services); the corresponding social infrastructure requirements are addressed in this sub-factor.

34
 Table 25. Detailed Indicators for Education Infrastructure
Measurement
Sub-Indicators Type / Data Source Definition
Required
25.1. Number 25.1.1. Schools Number/Actual Engineer's -Indicate
of PUBLIC 25.1.2. Classrooms Count Office, availability of
secondary DepEd facilities for basic
schools and (O - "Zero " if Division education
classrooms none, NDA for Office,
25.2. Number 25.2.1. Schools No Data DepEd
of PRIVATE 25.2.2. Classrooms Available) Regional
secondary Office.
schools and
classrooms
25.3. Tertiary 25.3.1. 25.3.1.1. Engineer's -Indicate
Schools PUBLIC Schools Office, availability of
(for cities only) Tertiary 25.3.1.2. LGU facilities for higher
Schools Classrooms Education education
and Office,
Classrooms CHED
25.3.2. 25.3.2.1. Regional
PRIVATE Schools Office.
Tertiary 25.3.2.2.
Schools Classrooms
and
Classrooms
25.4. Technical 25.4.1. 25.4.1.1. LGU -Indicate
Vocational PUBLIC Schools Education availability of
Education and Technical 25.4.1.2. Office, facilities for Tech.
Training Vocational Classrooms TESDA Voc. education
(for cities only) Education Regional
and Office.
Training
Schools

35
 and
Classrooms
25.4.2. 25.4.2.1.
PRIVATE Schools
Technical 25.4.2.2.
Vocational Classrooms
Education
and
Training
Schools
and
Classrooms

26. Health Infrastructure

The quality of the workforce, which is an important factor in productivity and competitiveness, is partly dependent on the availability of
health and education services in the locality. The latter, in turn, depends on the manpower in these sectors as well the available related
infrastructure. In the case of education, both the lack of teachers and schoolrooms have been the excuse for the deterioration in literacy
rate. The importance of manpower in health and education has been addressed in the component on government efficiency in earlier
sections (sub-factor on basic government services); the corresponding social infrastructure requirements are addressed in this sub-factor.

Table 26. Detailed Indicators for Health Infrastructure

Measurement
Sub-Indicators Type / Data Source Definition
Required
26.1. Number of 26.1.1. Clinics Number/Actual Engineer’s -This
PUBLIC health 26.1.2. Total Clinic Beds count Office, LGU indicator
facilities and 26.1.3. Laboratories Health Office, measures the
and/or Diagnostics Centers (O - "Zero " if availability of

36
 corresponding 26.1.4. Total No. of Beds of none, NDA for Regional facilities for
bed capacities Laboratory and/or No Data DOH health
Diagnostics Centers Available) maintenance
26.1.5. Hospitals and
26.1.6. Total Hospital Beds emergencies.
26.2. Number of 26.2.1. Clinics
PRIVATE health 26.2.2. Total Clinic Beds
facilities and 26.2.3. Laboratories
corresponding and/or Diagnostics Centers
bed capacities
26.2.4. Total No. of Beds of
Laboratory and/or
Diagnostics Centers
26.2.5. Hospitals
26.2.6. Total Hospital Beds

27. LGU Investment in Infrastructure

Table 27. Detailed Indicators for LGU Investment in Infrastructure

Measurement
Type / Data
Sub-Indicators Source Definition
Required

27.1. Total Investment Philippine Engineer’s -Represents actual resources

in Infrastructure of LGU Peso Office, allocated by LGU for its
(ex. C/MPDO, infrastructure requirements.
27.2. Total LGU Budget 12000000.00) BLDG Measures the prioritization of LGU
website for infrastructure,
27.3 Percentage
budget for the
Investment
Infrastructure over the
total LGU Budget

37
28. Accommodation Capacity

Table 28. Detailed Indicators for Accommodation Capacity

Measurement
Sub-Indicators Type / Data Source Definition
Required
28.1. Number 28.1.1. Hotels Number/Actual Engineer’s This indicator focuses
of DOT 28.1.2. Resorts count Office, DOT on the available
Accredited 28.1.3. (regional) - for facilities in the LGU
Hotels, Resorts, Apartelles (O - "Zero " if data on for accommodations
Apartelles, 28.1.4. Mabuhay none, NDA for accredited based on the existing
Mabuhay Accommodations No Data tourist Department of
Accomodations, Available) establishments, Tourism accreditation
and Homestays 28.1.5. C/MPDO standards and the
Homestays corresponding
number of rooms in
each of the facilities.

Mabuhay
Accomodations refers
to tourist inns,
pension houses,
motels, bed and
breakfasts, guest
houses, hostels, and
other similar
accommodation
establishments.

38
 28.2. Number 28.2.1. Hotels Number/Actual Engineer’s
of Rooms in count Office, -Indicator of visitor
DOT Accredited 28.2.2. Resorts C/MPDO and capacity.
Hotels, Resorts, (O - "Zero " if DOT (regional)
Apartelles, none, NDA for - for data on -Number of rooms in
Mabuhay 28.2.3. No Data accredited DOT accredited
Accomodations, Apartelles Available) tourist Hotels, Resorts,
Homestays, 28.2.4. Mabuhay establishments, Apartelles, Mabuhay
and Others Accommodations C/MPDO Accommodations,
28.2.5. Pension House.
Homestays

29. Information Technology Capacity

In the current digital age, the use of technology can lead to increased productivity, greater efficiency, connectivity, and accessibility, which
are factors that can enhance competitiveness of a locality. It is therefore important to get the information and communication technology (ICT)
readiness of LGUs. The more households are connected, the broader is the market for potential investors. This can also lead to improvements
in efficiency for services and product delivery.

Complementing the use of technology is the importance of greater mobility that facilitates travel and transport of goods and services. Hence,
two indicators have been included in the competitiveness index to measure technological readiness/advancement and the level of mobility of
LGUs – the number of internet and telephone providers – and the availability of public transport vehicles.

Table 29. Detailed Indicators for Information Technology Capacity

Measurement Type /
Sub-Indicators Source Definition
Data Required
29.1. Number of Actual Number All mobile services This indicator provides the
cell sites in the providers foundation of the sustainability of
locality (O - "Zero " if none, NDA information technology activities
for No Data Available) which are now requiring basic
internet speed for business,
logistics, health and education

39
30. Financial Technology Capacity

As stated earlier, the number of financial institutions, which is a measure of financial deepening, is highly correlated with a robust local
economy. It facilitates the mobilization of financial resources for use in the production of goods and services. The simplest measurement of
financial development in an area would be the number of automated teller machines.

Table 2. Detailed Indicators for Financial Technology Capacity

Measurement
Sub-Indicators Type / Data Source Definition
Required
30.1. Number of Number/Actual Engineer's This indicator represents both the ICT
ATMs in locality Count Office, capacity and financial liquidity/development in
C/MPDO, the locality. ATMs also represent stable
30.2 Number of LGU (O - "Zero " if Local Bank electronic connection in the LGU. The
transactions using e- none, NDA for Branches, number of transactions of LGU using e-
payment facilities No Data BSP, physical payment facilities approximates the use of fin-
Available) counting tech in the locality.

D. Resilience
There are two definitions of resilience with a local level perspective. The first refers to the capacities of local units to function, so that the
people living and working there–particularly the poor and vulnerable–survive and thrive no matter what stresses or shocks they encounter.
(City Resilience Framework) The second refers to the ability of people, households, communities, countries and systems to mitigate, adapt
to and recover from shocks and stresses in a manner that reduces chronic vulnerability and facilitates inclusive growth. (USAID)

In the two definitions, the common link are the terms shocks and stresses. The key element is systems. In the broad sustainability frameworks
previously discussed, they appear in all of the pillars of economic, social and environmental aspects of competitiveness. This means that
they are cross-cutting issues that are inherent in any economic, social and environmental systems. The common responses to them are
prevention, mitigation, coping, and adaptation.

40
31. Organization and Coordination: Land Use Plan
Table 31. Detailed Indicators for Organization and Coordination: Land Use Plan
Data
Sub-Indicators Source Definition
Required
31.1. Presence of the CLUP INPUT: YES Planning and Observation of the presence
31.2. Presence of local executive or NO Development of the following: a) actual
order or ordinance that mandates the Office , comprehensive land use
implementation of the CLUP (usuallly Engineer's plan; b) physical office; c)
the Planning and Development office of the staff d) executive order of
Office) LGU the mayor or resolution of
31.3. Presence of an office and staff the Sanggunian; e) year of
that implements the CLUP last update
31.4. Year of Last Update INPUT: Year (Attach copy of Actual CLUP
and EO; Pictures of Physical
Office and Staff)

32. Organization and Coordination: Disaster Risk Reduction and Management Plan (DRRMP)

Table 32. Detailed Indicators for Organization and Coordination: DRRMP

Data
Sub-Indicators Source Definition
Required

41
 32.1. Presence of the INPUT: Planning and -This validates LGU compliance
DRRMP YES or NO Development to RA 10121 on having a
32.2. Presence of local Office of DRRMC Plan.
executive order or ordinance LGU
that mandates the (Attach pictures of Physical
implementation of the Office and Staff; Copy of EO or
DRRMP actual resolution and actual
32.3. Presence of office and DRRM Plan to be validated by
staff that implements the the Focal Person/academe)
DRRMP
32.4. Year of Last Update

33. Organization and Coordination: Annual Disaster Drill

Table 33. Detailed Indicators for Organization and Coordination: Annual Disaster Drill
Data
Sub-Indicators Source Definition
Required
33.1. Conduct of LGU-wide INPUT: YES LGU data Physical Record of the conduct
disaster drill or NO of disaster drill in the LGU
33.2. Number of LGU Initiated Number/Actual
and coordinated disaster drill Count
conducted
(O - "Zero " if
none, NDA for
No Data
Available)

34. Organization and Coordination: Early Warning System

42
 Table 34. Detailed Indicators for Organization and Coordination: Presence of an Early
Warning System That Integrates Professional Responders and Grassroots
Organizations
Sub-Indicators Data Required Source Definition
34.1. Presence of early warning INPUT: YES or NO LGU Presence of early
system that integrates professional data warning system in the
responders and grassroots LGU (with proof)
organization
34.2. Number of Early Warning Number/Actual
System Count

(O - "Zero " if none,

NDA for No Data
Available)

35. Resiliency Financing: Budget for DRRMP

Table 35. Detailed Indicators for Resiliency Financing: Budget for DRRMP
Data Required
Sub-Indicators Source Definition
35.1.1. Total Budget Philippine Peso Planning and Contingency fund for disaster as %
for DRRMP (PhP) Development of total LGU budget (from
(ex. Office of LGU Governance Pillar)
35.1.2. Total LGU 12000000.00) (One of the Key Provisions of the
Budget Local Disaster Risk Reduction and
35.1.3 Percentage Percentage Management Fund (LDRRMF) is to
of budget for (Maximum of allocate a minimum of 5% budget
DRRMP to total 100%) for DRRMP over the total LGU
LGU budget budget)

43
36. Resilience Reports: Local Risk Assessments

Table 36. Detailed Indicators for Resilience Reports: Local Risk Assessments
Data
Sub-Indicators Source Definition
Required
36.1. Availability of INPUT: DENR, DRRMO Availability of local Geohazard
local Geohazard Maps YES or NO Maps
from DENR
36.2. Availability of Availability of LGU Risk Profile
LGU Risk Profile from
Local DRRMO

37. Resilience Infrastructure: Emergency Infrastructure

Table 37. Detailed Indicators for Resilience Infrastructure: Emergency Infrastructure

Data
Sub-Indicators Source Definition
Required
37.1. 37.1.1. Public Number/A Public and =Actual number of
Ambulance Ambulance ctual count Private designated
37.1.2. Private Hopsitals for Emergency Vehicle
Ambulance (O - "Zero data on available in the LGU
" if none, Ambulance;
37.2. 37.2.1. Public Firetruck
NDA for Bureau of Fire -This indicator
Firetrucks 37.2.2. Private No Data Protection represents the
Firetruck Available) (BFP) for data capacity to extend
37.3. 37.3.1. Public Clearing on Firetrucks; service by providing
Clearing Equipment Philippine Emergency Vehicle
Equipment 37.3.2. Private Clearing Coast Guard for during disaster. The
Equipment data on Public indicator on
37.4. Boats 37.4.1. Public Rubber Rubber Boats; infrastructure also
Boat LGU data counts
37.4.2. Private Rubber evacuation/isolation
Boat

44
 37.4.3. Other Boats and emergency
Used for Rescue facilities during
37.5. 37.5.1. Public disasters and health
Infrastructur Infrastructure for emergencies.
e for multi- evacuation
purpose 37.5.2. Private
use: Infrastructure for
evacuation/i evacuation
solation
37.6. Presence of drainage systems INPUT:
in LGU Center YES or NO

38. Resilience Infrastructure: Utilities

Table 38. Detailed Indicators for Resilience Infrastructure: Utilities

Data
Sub-indicator Source Definition
Required
38.1. Water 38.1.1. INPUT: YES Engineers Office, Availability of Natural
Source Presence of or NO C/MPDO,Utility water sources (rivers
Water Source in service provider and streams), dams,
the LGU in the locality to deep well, water
include LGU- catchment, rainwater
owned service collection system,
38.1.2. Distance Kilometers provider; This indicator provides
of Water Source LGU data guidance on how near
to LGU e.g. 25km, the center of
Municipal Final Input: 25 government to available
Hall/City Hall ; water sources during
2000m, Final disasters
Input: 2

45
 38.2. Power 38.2.1. INPUT: YES Availability of Power
Source Presence of or NO Source (Proof
Power Source Required)
in the LGU
38.2.2. Distance Kilometers This indicator provides
of Power guidance on how near
Source to LGU e.g. 25km, the center of
Municipal Final Input: 25 government to available
Hall/City Hall ; power sources during
2000m, Final disasters
Input: 2
38.3. 38.3.1. INPUT: YES Availability of Generator
Generator Presence of or NO Set
Set Generator Sets
in the LGU
38.4. 38.4.1. Power Number/Actual LGU data Observation if there are
Redundancy 38.4.2. Water count more than one source
38.4.3. Telecom power (coal, gas, solar,
(O - "Zero " if geothermal, biomass),
38.4.4.
none, NDA for water (rivers and
Alternate Route
No Data streams), dams, deep
38.4.5. Fuel Available) well, water catchment,
rainwater collection
system),
telecom (Radio, UHF,
VHF, Satellite Phones),
road,
fuel (diesel, charcoal,
firewood, bioethanol,
biogas).

39. Resilience of System: Employed Population

46
 Table 39. Detailed Indicators for Resilience of System: Employed Population
Sub-indicator Data Required Source Definition
39.1. Number of Number/Actual LGU data, Number of Trained Responders in
Trained count NDRRMC the locality listed in the NDRRMC
Responders
(O - "Zero " if
none, NDA for No
Data Available)

40. Resilience of System: Sanitary System

Table 40. Detailed Indicators for Resilience of System: Sanitary System

Sub-indicator Data Required Source Definition
40.1. Access to Sanitary INPUT: Yes or No Environment Access of an LGU to
Landfill office Sanitary Landfill-
maintained/controlled
sanitary lanfill or solid
waste disposal and
treatment area within or
outside the locality.
40.2. Frequency of Number/Item count -Average number of
Garbage Collection per (O "Zero" for None Garbage Collection in the
Month and NDA for No locality per Month.
Data Available)
40.3. Practice of Waste INPUT: Yes or No -Presence of a waste
Segregation segregation system in the
LGU'
40.4. Access to INPUT: Yes or No LGU Access or Existence
Recycling/ Material of Recycling/ Material
Recovery Facility Recovery Facility

47
E. Innovation
Innovation Pillar, was conceptualized given that LGUs are now finding various ways to use new technologies in addressing issues in economy
and efficiency regarding business registrations, getting permits, bills payment, and productivity. It is included in the data gathering for this
year but the indicators for this pillar were not yet included in the scoring and ranking, as they are still being assessed and analyzed in terms
of relevance to the LGUs’ performance and contribution to the overall improvement on the state of competitiveness given the set of indicators
in the said pillar.

41. Information and Communication Technologies (ICT) Plan

Table 41. Detailed Indicators for Cost of Freight

Sub-indicator Data Required Source Definition
41.1 Presence of INPUT: Yes or No; Engineer’s A document which outlines how
LGU ICT Plan NDA if No Data Office, C/MPDO your organization's ICT will
Available support your overall corporate
objectives and strategy over a
defined period
41.2. Presence of Internet The LGU's foundational
Active and up to validation by understanding of innovation
date LGU website DTI. Website begins with its own use of the
must be updated internet platform as a way to
as of end 2021. showcase the locality with
updated information.

Website is a set of related web

pages located under a single
domain name, typically produced
by a single person or
organization. The LGU website
will definitely allow easy and more
convenient access to LGU
information thereby saving the

48
 time of the public from going to
and queuing in the municipal hall
and also the time of public
officials from attending to its
constituents just to provide the
"usual" information or data.

41.3 Presence of Internet Social Media refers to websites

Active and Up to validation by and applications that enable users
date LGU Social DTI. Social to create and share content or to
Media account Media account participate in social networking.
regardless of Examples are Facebook,
number Instagram, Twitter, LinkedIn,
YouTube.

49
42. Innovation Financing: R&D Expenditures Allotment

Table 42. Detailed Indicators for Innovation Facilities

Data
Sub-indicator Required Source Definition

42.1. R&D 42.1.1. Total Philippine Engineer’s Represents actual resources

Expenditures LGU Budget for Peso (PhP) Office, allocated by LGU for its
R&D (ex. C/MPDO, Research and Development
42.1.2. Total 12000000.00) BLDG requirements. Measures the
LGU Budget website prioritization of LGU for R&D,
42.1.3. particularly focused on STEM
Percentage of sector.
LGU Budget for
R&D over Total
LGU Budget
42.1.4 Total
LGU
Expenditure for
R&D
42.1.5. Total
LGU
Expenditure
42.1.6.
Percentage of
R&D
Expenditure
over Total
Expenditure

50
43. ICT Use: E-BPLS Software
Table 43. Detailed Indicators for STEAM Graduates
Data
Sub-indicator Source Definition
Required
43.1. E-BPLS 43.1.1. INPUT: City or This indicator measures the
Software Adoption of E- Yes or Municipal speed and effectiveness of
BPLS Software No Business LGUs’ business registration
43.1.2. DICT E- Permits and processes as well as their
BPLS Software Licensing Compliance to Business One-
Office, DICT Stop-Shop and Online e-BPLS
Standards set by DICT from
registration, payment and
release, on the issuance of
Mayor's Permits.

44. Online Payment Facilities

Table 44. Detailed Indicators for Innovation Financing: R&D Expenditures Allotment
Data
Sub-indicator Source Definition
Required
44.1. Presence of Online INPUT: Yes City or Municipal This indicator measures the
Payment Facilities provided or No Business Permits speed and effectiveness of
by LGU and Licensing LGUs’ to any of the
Office, C/MPDO transactional processes to its
client by providing online
payment facilities.

51
45. STEM Graduates
Table 45. Detailed Indicators for IPOPHL Registration
Data
Sub-indicator Source Definition
Required
45.1 45.1.1. Graduates Number/ actual Engineer's Number of Graduates for
Number of of Science count Office, LGU Science, Technology,
Tertiary Education Engineering, Mathematics
STEM 45.1.2. (NDA for No Office, CHED (STEM) coming from private
Graduates Graduates of Data Available) Regional Office. or public tertiary school.
Technology Tertiary schools
45.1.3. Graduates STEM focuses explicitly on
of Engineering the hard scientific,
45.1.4. Graduates technological, engineering or
of Mathematics mathematical skills to drive
progress or create a new
concept.

52
46. Intellectual Property (IP) Registration
Table 46. Detailed Indicators for ICT Use: E-BPLS Software
Data
Sub-indicator Source Definition
Required
46.1. 46.1.1. 46.1.1.1. Number/ Intelectual Intellectual Property (IP) serves as the foundation of
Number of Patents Filed actual count Property innovation in our economy and it can be protected
IP Office of the through Intellectual Property Rights that are
46.1.1.2.
Registration (NDA for No Philippines registered or filed under IPOPHIL.
Registered
Data
Available) Registered refers to the number of issued patents,
utility model, industrial design, trademark and
copyright. For Patents, it is the signing of the
certificates that the registration/issuance dates will be
generated. While copyright is vested from the
moment of creation, they can still be registered for
various reasons. On the other hand, filed means the
IP applications received by IPOPHL at a given period.

A patent is an exclusive right that allows the inventor

to exclude others from making, using, or selling the
product of his invention during the life of the patent.
Patent owners may also give permission to, or
license, other parties to use their inventions on
mutually agreed terms. Owners may also sell their
invention rights to someone else, who then becomes
the new owner of the patent.

46.1.2. 46.1.2.1. A trademark protects a business’ brand identity in the

Trademarks Filed marketplace. Registration of it gives the owner the
exclusive rights to prevent others from using or
47.1.2.2.
exploiting the mark in any way. A trademark is a
Registered
word, a group of words, sign, symbol, logo or a
combination thereof that identifies and differentiates
the source of the goods or services of one entity from
those of others. Aside from being a source-identifier,

53
 differentiator, quality indicator, and an advertising
device, a protective mark may also bring another
stream of income to the owner through licensing or
franchising.
46.1.3. 46.1.3.1. Copyright is the legal protection extended to the
Copyrights Filed owner of the rights in an original work. “Original
46.1.3.2. work” refers to every production in the literary,
Registered scientific and artistic domain.
46.1.4 46.1.4.1. Utility Model (UM) allows the right holder to prevent
Utility Filed others from commercially using the registered UM
Model without his authorization, provided that the UM is new
46.1.4.2.
based on the Registrability Report.
Registered
46.1.5 46.1.5.1. An industrial design is the ornamental or aesthetic
Industrial Filed aspect of an article. Design, in this sense, may be
Design three-dimensional features (shape or surface of an
46.1.5.2.
article), or the two-dimensional features (patterns or
Registered
lines of color). Handicrafts, jewelry, vehicles,
appliances – the subject of industrial designs range
from fashion to industrial goods.

54
47. Internet Capability
Table 47. Detailed Indicators for Internet Capability
Data
Sub-indicator Source Definition
Required
47.1. No. of Number/ C/MPDO;Telephone, This indicator reflects the internet-readiness and -
Towers, Cell actual count Cable and Internet access of a locality, which is measured by the number
Sites, and/or Companies/Providers; of towers, cell sites, and or repeaters in that locality;
Repeaters in (NDA for No NTC as well as provision of wi-fi access to public while in
Locality Data either the Municipal/CIty Hall or a public/commercial
Available) facilities in the locality.

Tower refers to all types of towers including but not

limited to (1) a three-legged or four-legged tower
structure used for telecommunications, power,
transmission service or of similar nature or (ii) poles,
or (iii) telecom masts, or (iv) a similar infrastructure or
civil wors.

A cell site is defined as the entire set of equipment

needed to receive and transmit radio signals for
cellular voice and data transmission; typically includes
transmitters, receivers, power amplifiers, combiners,
filters, a digital signal processor, a power supply and
network interface modules.

A repeater is an electronic device that receives a

signal and retransmits it. Repeaters are used to
extend transmissions so that the signal can cover
longer distances or be received on the other side of
an obstruction.
47.2. Free Wifi INPUT: Yes or Wifi (wireless fidelity) is a facility allowing computers,
Access Available No smartphones, or other devices to connect to the
to Public

55
 internet or communicate with one another wirelessly
within a particular area.
48. Availability of Basic Internet Service

Table 48. Detailed Indicators for Availability of Basic Internet Service

Sub-indicator Data Required Source Definition

48.1. Number of Household Engineers Office, Business environment needs
with Post-paid Internet Number/Actual C/MPDO,internet consistency of and regularity of internet
Service Subscription service provider in services.
NDA if No Data the locality to - Data of total households with Internet
Available include LGU-owned Service Subscription in locality vis-a-vis
service provider, data of total number of households per
48.2. Percentage of Percentage PSA and BPLO LGU from PSA
Household with Internet (Maximum of
Service Subscription 100%)
48.3. Number of Businesses Number/Actual
with Post-paid Internet
Service Subscription NDA if No Data
Available
48.4. Percentage of Percentage
Businesses with Internet (Maximum of
Service Subscription 100%)

56
49. Start Up and Innovation Facilities

Table 49. Detailed Indicators for Green Innovation Project

Data
Sub-indicator Source Definition
Required
49.1. Number Start Up Number/ Government STARTUP refers to any person or registered
Registered in the actual count Agencies and entity in the Philippines, which aims to
locality (LGU, DTI, Universities that develop an innovative product, process, or
SEC, or DOST) (NDA for No supports business model.
Data Innovation
Available) A technology startup is a company whose
purpose is to bring technology products or
services to market. These companies deliver
new technology products or services or
deliver existing technology products or
services in new ways.
49.2 Number of higher CHED regional The number of higher education institutions
education institutes in office providing STEM courses is the foundation of
locality offering STEM human resource production for innovation in
courses the locality
49.3 Number of CHED regional Conducting research is another foundation
research and office, BPLO, element for innovation. By counting the R&D
development centers DOST Regional Centers in each tertiary institution, public and
in the locality Office private research centers provide a venue for
innovative development

57
50. New Technology

Table 50. Detailed Indicators for Online Payment Facilities

Data
Sub-indicator Source Definition
Required
50.1. Number of Number/Actual LGU, New Technology means any invention, discovery, improvement, or
New Technology in count DTI, innovation, that was not available, whether or not patentable,
the locality (e.g. DICT including, but not limited to, new processes, emerging technology,
adoption of Artificial NDA if No machines, and improvements to, or new applications of, existing
Intelligence (AI), Data Available processes, machines, manufactures and software.
Industry 4.0-
readiness such as Artificial intelligence (AI) refers to the simulation of human
Robotic Process intelligence in machines that are programmed to think like humans
Automation (RPA), and mimic their actions. The term may also be applied to any
Internet of Things machine that exhibits traits associated with a human mind such as
(IoT), Intelligent learning and problem-solving. Samples of AI are in the form of
Apps., 5G, Machine virtual assistants such as Google Assistant, Siri, Cortana, and
Learning, Alexa.
Blockchain,
Cognitive Robotic Process Automation (RPA) is another popular and trending
Computing) technology that allows us to automate business processes. RPA
neither requires coding for development nor direct access to the
database. It has a list of commands executed by bots under some
standard set of business rules. Sample use of RPA: automated
report generation, emulates human actions, audits and validates
information, quality assurance.

Internet of Things (IoT) is a system of interrelated computing

devices, objects, digital machines, animals, or people that have
unique identifiers (UIDs), and this technology can transfer data over
a network without human-to-human or human-to-computer
interactions. Sample uses of IoT technology are in the development
of smart homes, smartwatches, smart cities, connected cars, digital

58
health.

Intelligent Apps are applications that make use of historical and real-
time data from user interactions and many other sources to make
predictions and suggestions. Different AI components, such as
Machine Learning, robotics, general intelligence, expert systems,
and NLP, are used in developing Intelligent Apps. Some of the
Intelligent Apps we are using in our daily lives are Alexa, Siri,
Google assistant, Ada Health, Netflix, Seeing AI, and ELSA.

5G is the Fifth Generation mobile broadband, beyond Long-term

Evolution (LTE) mobile networks. It is a game-changer and a
trending technology, that improves our network connections.
Through this, we will get faster, stable, and secure connections.
Hence, shortly, we will have 5G mobiles in our hands.

Machine Learning (ML) is a set of algorithms that find and apply

patterns to data. ML is a trending technology that discovers rules
causing a problem by using the data and finds a solution to that
problem.

Blockchain technology is an entirely new way of documenting data

on the Internet. Sometimes, it is also referred to as the distributed
ledger technology (DLT). The information recorded on Blockchain is
distributed but not copied, and it can be in any form, such as
ownership of something, someone’s identity, a transaction, etc.

Cognitive Computing technology integrates with certain concepts in

Artificial Intelligence (AI), such as natural language processing
(NLP), Machine Learning (ML), reasoning, speech recognition, etc.,
that help in improving human decision-making.

Source: https://intellipaat.com/blog/top-trending-technologies/#no1

59
 F. Additional Data

51. Cost of Freight (for Cities and Municipalities Outside Metro Manila)

Table 51. Detailed Indicators for Cost of Freight

Indicators Definition/Description Measurement Type/Data Required Source

Cost of freight (for Air freight - The cost of freight for one Amount in peso/ kilogram Local Port
cities and balikbayan box. Authorities, Local
municipalities outside Land freight - Transportation cost basis is from Airlines, Freight
Metro Manila) local starting point to Manila (NDA for No Data Available, N/A – If the data Forwarders
Sea freight required is not applicable to your LGU. Ex. For
landlocked areas, kindly put “N/A” for Water
Transportation vehicles)

52. Number of Public Transport Terminals

Table 52. Detailed Indicators for Number of Public Transport Terminals

Definition/ Measurement
Indicators Source
Description Type/Data Required

Number of Buses Actual number of Number/Actual Count Survey, LGU data

public transport Transport Terminals (0 – “Zero “ if none,
terminals Passenger vans per vehicle type NDA for No Data
available in the LGU Available)
Jeepneys

Tricycles

60
 Taxis

Ferries Ship

Fast craft

Passenger bancas

Others Motorized vehicles

Non-motorized vehicles

53. Frequency of Trips per Day

Table 53. Detailed Indicators for Frequency of Trips per Day

Definition/ Measurement Type/Data
Indicators Source
Description Required

Frequency of Buses Actual number of Trips Number/Actual Count Survey, LGU

trips per day per vehicle type available data
Passenger vans in the LGU
(0 – “Zero “ if none, NDA for No
Ferries Ship Data Available)

Fast craft

Passenger bancas

Others Motorized vehicles

61
 Non-motorized vehicles

54. Number of Retail Companies

Table 54. Detailed Indicators for Number of Retail Companies

Indicators Definition/Description Measurement Type/Data Source
Required

Number of Number of gas Shell Measures investment Number/actual count Engineer’s

retail stations confidence and Office,
companies Petron economic activity C/MPDO,
(0 – “Zero” for None and NDA for BPLO
Total Gas
No Data Available)
Caltex

Seaoil

Flying V

Other gas stations

Number of fast- Jollibee

food chains
McDonald’s

Other fast-food chains

7-Eleven

62
Number of Ministop
convenience
stores Family Mart

Other convenience stores

Number of SM Supermarket/Hypermarket
supermarkets
Robinsons Supermarket

Gaisano

Waltermart

Puregold

Savemore

City Supermarket, Inc.

LCC Supermarket

Other supermarkets

Number of Mercury Drugstore

drugstores
Watsons Drugstore

South Star Drugstore

Rose Pharmacy

The Generics Pharmacy

63
 Other drugstores

55. Capacity of School Services: Net Enrollment Ratio (Secondary Level)

Table 55. Detailed Indicators for Capacity of School Services

Measurement Type/Data
Indicators Definition/Description Source
Required

Capacity of school services: The ratio of the enrolment for the age Ratio Philippine Statistics Authority,
net enrollment ratio group corresponding to the official school enrolment/school age population Regional and Division Office of the
(secondary level) age in the secondary level to the (e.g., 200/1000) Department of Education
population of the same age group in a
given year. (NDA for No Data Available)

56. Population of Locality

Table 56. Detailed Indicators for Capacity of School Services
Measurement Type/Data
Indicators Definition/Description Source
Required

Population of Locality Number/Actual count Philippine Statistics Authority,

Regional and Division Office of the
(O "Zero" for None and NDA for Department of Education
No Data Available)

64
 57. Total Number of Household of Locality
Table 57. Detailed Indicators for Total Number of Household of Locality

Measurement Type/Data
Indicators Definition/Description Source
Required

Total Number of Household Number/Actual count Philippine Statistics Authority,

of Locality Regional and Division Office of the
(O "Zero" for None and NDA for Department of Education
No Data Available)

65
IV. Computing the Competitiveness Index

A. Description
The data gathered to form the index are unique and depend on its nature and type. In order to compute the index and rank the different sub-
indicators, there is a need to understand the weighting of each pillar and the manner of computing each indicator.

B. Weights

Similar to other indexes, the competitiveness index ranking has a total index value of 100 representing a fully competitive local unit. The index
is composed of five (5) pillars thereby making each pillar represent about 20% of index value, to wit:

a. Economic Dynamism = 20%

b. Governance Efficiency = 20%
c. Infrastructure = 20%
d. Resiliency = 20%
e. Innovation = 20%

There are ten (10) indicators for each of the five (5) pillars of the index, with each indicator having an equal weight of 2%. Weight assignment
differs at the sub-indicator level. Weights at this level can be achieved by dividing the weight of an indicator (i.e. 2%) into the number of a sub-
indicator under it.

66
To exemplify, if an indicator has 3 sub-indicators, each sub-indicator will have a weight of 0.667% (or 2%/3) each. Such is the case for the
Information and Communications Technology (ICT) Plan indicator under the Innovation pillar, which has three (3) sub-indicators under it – 1)
Presence of LGU ICT Plan, 2) Presence of Active and Up-to-date LGU website, and 3) Presence of Active and Up to date LGU Social Media
account. Each of the sub-indicators will have a weight of 0.667%.

Another example. Let us take a look at Capacity of Health Services indicator in the Government Efficiency pillar. This indicator has two (2)
sub-indicators, i.e. Capacity of Public Health Services and Capacity of Private Health Services; and these two (2) sub-indicators still has four
(4) sub-sub indicators under it, i.e. Doctors, Nurses, Midwives, and Medical Technologists. To compute for the score of these four (4) sub-sub
indicators under a sub-indicator, we divide the 2% first by 2, given that there are two (2) sub-indicators – i.e 2%/2 = 1%. Please find below the
computation of the weight of sub-sub-indicator.

Given:
• weight of 1 indicator is 2%
• this 1 indicator has 2 sub-indicators
• each of the sub-indicator has 4 sub-sub indicators each
Computation:
Weigh of a sub-sub indicator = (2%/2) / 4 = 0.25% each.

sub
indicator sub- sub-indicator
indicator
Capacity Doctors (0.25%)
of Public Nurses (0.25%)
Health Midwives (0.25%)
Services
Capacity Medical Technologists
(1%)
of Health (0.25%)
1Services Doctors (0.25%)
Capacity
(2%)
of Private Nurses (0.25%)
Health Midwives (0.25%)
Services
Medical Technologists
(1%)
(0.25%)

67
Competitiveness Ranking Categories
To ensure that CMCI rankings of different LGUs are with respect to comparable peers, standardization of indicators and ranking proper will
be conducted in six (6) competitiveness ranking categories. Figure 3 presents these different categories, encompassing 5th and 6th Class
Municipalities, 3rd and 4th Class Municipalities, 1st to 2nd Class Municipalities, Component Cities, Highly Urbanized Cities, and Provinces.

Figure 3. CMCI Competitiveness Ranking Categories

68
The relevant categories for municipalities and cities as standardization and scoring procedures discussed in the next subsection will be
conducted among LGUs only within their relevant competitiveness ranking categories. Scoring for provinces, by comparison, will undertake
a different procedure which will be discussed in a separate subsection.

69
 C. Standardizing and Scoring for Cities and Municipalities
1. To standardize the computations, we follow the process of computing the components of the United Nation Development Program’s
Human Development Index (HDI)6 using a standard formula or Formula 1A, if higher values indicate higher ranks (e.g. number of public
schools):

However, if the lowest values indicate higher ranks (e.g. Cost of Electricity of Commercial), use Formula 1B:

To implement this standardization for indicators, we follow the following steps:

STEP 1 – Arrange the values of the indicators per year from Minimum to Maximum Value.

STEP 2 – Identify the Minimum and Maximum Value per indicator.

STEP 3 – Compute values per indicator using either Formula 1A or Formula 1B, depending on the direction of greater/lower ranking of
values.

STEP 4 – Multiply the values per indicator with the identified weights per indicator.

STEP 5 – Add the weighted values to get index per pillar.

STEP 6 – Add the indexes per pillar to get Competitive Index.

6
Based on http://hdn.org.ph/computing-for-hdi/

70
2. For indicators that only feature a “Yes” or “No” answer (e.g. “Presence of the Local Investment Incentives Code”, “Presence of the
DRRMP”), a special scoring scheme is adopted. Namely, “Yes” values are converted to a numerical value of one (1), and “No” values
are converted to a numerical value of zero (0). STEP 4 to STEP 6 of the steps identified in C.1. are thereafter undertaken.

3. Specifically for the sub-indicators related to the “Growth of the Local Economy” indicators, the formula for computing the sub-indicators
is the simple growth formula:

Computed growth rates for sub-indicators will thereafter be standardized in line with Formulas 1A or 1B.
Sample Procedure:

Below is an example of using the steps above for some sub-indicators for Economic Dynamism:

0. Indicator computation sample: Size of the economy

This indicator has two (2) sub-indicators for the Size of the Economy indicator: gross sales or registered firms, and total capitalization of
new businesses. The period to be covered for ranking 2022 are relevant figures for 2021. Since there are 2 sub-indicators, the index
weight for the Size of the Economy indicator of 2% (20% for Economic Dynamism divided by ten indicators) is further divided by two (2)
giving each sub-indicator a weight of 1.%.

In this example, we are particularly interested in standardizing and scoring the relevant indicators for Bauang, a 1st-class municipality in
La Union, Ilocos Region. For this purpose, we also look at the respective values for (a) Gross Sales, and (b) Capitalization for the rest of
the 507 other 1st-class municipalities, including those with the maximum and minimum values for each sub-indicator.

Table 3 shows the computation for Gross Sales and Table 4 for Capitalization. Table 5 shows the scoring for the combined Size of
Local Economy Indicator.

71
 Table 3. Computations for Gross Sales Sub-indicator: Bauang and Other 1st-Class
Municipalities, 2021
Index Value Sub Indicator Index Score
LGU DATA (Resulting Value Using HDI (Index value * Weight per Sub-
Formula) Indicator)
Cainta (max value) 181,188,518,312.52 1.0000 1.2500
La Trinidad (BU) 92,990,886,169.68 0.5132 0.6415
Guiguinto 80,455,165,849.60 0.4440 0.5550
Bauang 2,179,628,509.88 0.0120 0.0150
Jolo (min value) 659,000.00 0.000 0.000
Trento (no data) NDA - -
Note: Figures shown in the table are for illustration purposes only and does not reflect the real datasets of the LGUs.

Table 4. Computations for Capitalization Sub-indicator: Trento and Other 1st-Class

Municipalities, 2016
Sub Indicator Index Score
Index Value
LGU DATA (Index value * Weight per Sub-
(Resulting Value Using HDI Formula)
Indicator)
Manapla (max value) 3,668,485,236.00 1.0000 1.2500
Mauban 3,363,642,925.99 0.9169 1.1461
Villanueva 1,740,580,664.93 0.4745 0.5931
Trento 22,660,331.00 0.0062 0.0077
Jolo (min value) 3,200.00 0.0000 0.0000
Aguinaldo (no data) NDA - -
Note: Figures shown in the table are for illustration purposes only and does not reflect the real datasets of the LGUs.

72
 Table 5. Computations for Size of Local Economy Indicator: Trento and Other 1st-Class
Municipalities, 2016
INDICATOR
LGU Gross Sales Capital RANK
SCORE
Mauban 0.1765 1.1461 1.3227 1
Limay 1.2500 0.0068 1.2568 2
Manapla 0.0043 1.2500 1.2543 3
Cainta 0.5550 0.1907 0.7457 4
Guiguinto (BU) 0.6415 0.1025 0.7440 5
Hagonoy (BU) 0.0229 0.0000 0.0229 196
Trento 0.0150 0.0077 0.0228 197
Roxas (PN) 0.0001 - 0.0001 465
Tineg - 0.0000 0.0000 466
Aguinaldo - - - 467
Note: Figures shown in the table are for illustration purposes only and does not reflect the real datasets of the LGUs.

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For both sub-indicators, we undertake the following steps for standardization and scoring:

1. Arrange the values for the sub-indicator from highest to lowest. Municipalities with no data available (NDA) are not included in the
computation

For gross sales, the municipality with the highest reported sales is Limay, Bataan, while the lowest is Tineg, Abra.

For capitalization, the municipality with the highest reported capitalization is Manapla, Negros Occidental, while the lowest is Murcia, Negros
Occidental.

2. Use Formula 1A to standardize the values of the municipalities included.

As for harboring maximum values, the respective values of Limay and Manapla are standardized to 1.000; while those of Tineg and Murcia are
standardized to 0.0000 as the minimum values among the observations.

Meanwhile, Trento’s gross sales value is standardized to 0.0120, while its value for capitalization to 0.0062.

3. Multiply the computed value with 1.25 to get the index value/score for each sub-indicator.

As maximum values, the respective values for Limay and Manapla are scored at 1.25.

Multiplied to 1.25, the index value of Trento’s gross sales value is scored at 0.0150, while that for capitalization at 0.0077.

4. Add the index value of each sub-indicator to get the index value of LGU for the size of local economy.

As shown in Table 5, to arrive at its total indicator score of 0.0228, Trento’s sub-indicator scores of 0.0150 and 0.0077 are simply added. This
would rank Trento in 197th place among 1st-Class Municipalities.

It is worth noting that municipalities without available data are automatically ranked lower. Aguinaldo, Ifugao, ranked 467th due to its not submitting
data for either of the sub-indicators.

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 B. Indicator computation sample: Size of the economy

Table 6 below presents calculated scores for the ten (10) indicators of the Economic Dynamism Pillar, for which data pertaining to
Trento and other 1st-Class Municipalities is once again presented.

Table 6. Calculated Scores for Ten (10) Indicators of the Economic Dynamism Pillar:
Trento and Other 1st-Class Municipalities
Presence of
Size of Growth of Structure Safety Cost of Economic
Increase in Cost of Financial Business and
LGU the Local the Local of Local Compliant Doing Productivity Dynamism RANK
Employment Living Deepening Professional
Economy Economy Economy Business Business Total
Organizations
0.1913 9.9738
Cainta 0.7457 0.0045 1.3644 0.7415 0.4278 2.0946 1.7542 2.4242 0.2255 1
0.2300 9.1488
Taytay (RL) 0.3725 0.0053 0.8333 1.0902 0.9899 2.0946 1.8782 1.6162 0.0386 2
Santo Tomas
0.0430 9.1108
(BS) 0.4971 1.2008 - 0.4675 2.1819 1.9595 1.9442 0.8081 0.0087 3
0.0408 7.9611
Carmona 0.7140 0.0040 0.2496 0.4631 1.6608 1.9257 2.0700 0.7828 0.0503 4
0.0559 7.9514
Kalibo 0.2363 0.0566 0.8043 0.6439 0.2556 2.0608 1.7851 2.0202 0.0328 5
0.0129 4.5790
Porac 0.0726 0.0241 - 0.2739 0.2160 1.7230 1.8827 0.3662 0.0077 196
0.0043 4.5785
Guiuan 0.0517 0.0109 0.0214 0.1072 0.0601 1.7568 1.8854 0.6692 0.0115 197
0.0645 4.5739
Trento 0.0228 0.0046 0.0100 0.0694 0.0577 1.6216 2.2821 0.3914 0.0498 198
0.0989 4.5730
Candaba 0.0198 0.0133 0.1332 0.0982 0.0419 1.7230 2.1303 0.3030 0.0114 199
Note: Figures shown in the table are for illustration purposes only and does not reflect the real datasets of the LGUs.

The overall score for Trento is 4.5739, which would lead it to be ranked in 198th place under the Economic Dynamism pillar. Note that the
score for the Size of the Local Economy indicator is 0.0228, which was computed through the steps displayed in Tables 51, 52, and 53. Also,
the final score of 4.5739 already reflects the weights for the ten individual indicators, which each amount to 2.5% of the final CMCI score.

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 C. Standardizing and Scoring for Provinces

In the CMCI, provinces are also ranked on the basis of data collected from cities and municipalities, and not only original data collected from
provincial governments. Two qualifying criteria need to be met for province-level scores to be calculated and ranked:

1. 90% of the LGUs in the province of interest should have been covered by the CMCI for the year in question; and
2. 60% of the population of the province of interest should have been encompassed by the LGUs that have been covered by the
CMCI for the year in question.

For provinces which qualify for scoring, the overall CMCI scores (not the pillar scores) of the individual component LGUs within the province
of interest can be aggregated through Formula 2, which is presented in Figure 4. However, Highly Urbanized Cities within the province are
excluded from the computation, given their disproportionately large populations and LGU incomes.

Figure 4. Provincial Scoring Formula

To arrive at the provincial score, Formula 2 adds up all the weighted scores of the individual LGUs within the province. In this case, the
weight is made up of two parts: firstly, the ratio of the individual LGU’s population to the total provincial population and, secondly, the
LGU’s income (in terms of total local revenue) to total provincial income7. Both ratios are halved before being summed up to form the
weight for the individual LGU. This weight is then multiplied to the individual LGU’s overall score to get its weighted score.

7
Both total provincial population and total provincial income are arrived at by getting a simple sum of the populations or revenue of the individual LGUs in the province of interest (excluding HUCs).

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Sample Procedure:

Figure 5 below shows a sample computation for a province with only five (5) component municipalities/cities.

Figure 5. Sample Provincial Scoring

To arrive at the final province score of 23.1883, the following steps are taken in Figure 5:

1. The population weights of each of the component LGUs within the province are derived by halving the ratio of the LGU population to
the total provincial population;
2. The income weights of each of the component LGUs within the province are derived by halving the ratio of the LGU income/revenue
to the total provincial income;
3. The total weight is derived by getting the sum of the population weight and income weight of each individual LGU;
4. The contribution of the individual LGU to the provincial score is derived by multiplying the overall score of the individual LGU by its
total weight;
5. The provincial score is derived by adding up all the individual contributions to the provincial scores of the individual LGUs.

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 V. MECHANISMS FOR DATA GATHERING
The process of computing the competitiveness rankings, the institutional responsibilities and the timetable of activities are described in this
chapter.

A. Process for Data Gathering

The key institutions that are critical for the data gathering and computation of the competitiveness rankings are the Competitiveness Bureau of
the Department of Trade and Industry (DTI), the RCCs and third parties/research institutions.

Figure 6. Process for Data Gathering for the Competitiveness Ranking

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 B. Data Validation Process

The validation and consolidation of LCDSs at the regional level can involve a focal research or academic institutions to support the work of the
RCCs. Should access to the back-end portal be needed, these focal persons from the academe are registered the same way as the LGU and
the DTI are given access. At the same time, DTI will also engage a national-level focal third party to further validate local data submitted by the
RCC, with both LDCSs as well as other national-level data. The key role of such focal third parties is to ensure the quality of the data gathered
from the LGUs and RCCs. Once this national-level validation process has taken place, those with questionable entries in the LDCSs are to be
returned concerned LGUs, through the RCCs, which upon final review and correction will be consolidated by the third party into a national data
capture sheet (NCDS). The third party shall then do sample computation of scores on the NCDS in order to come up with national rankings,
subject to DTI’s review and finalization. Upon finalization and after conferment, the results will then be uploaded to the DTI’s CMCI website. A
summit and awarding ceremony will also be held to publicly present the results and recognize the best-performing provinces, cities and
municipalities.

In general, pertinent attachments may be submitted by the LGUs to be used as proof for certain indicators. Moreover, to guide the validators at
the provincial and regional level, the DTI provides a general guideline in the conduct of the validation for use by the DTI at the provincial and
regional levels, and by the third party at the national level: 2023 CMCI Validation Guidelines-Final.pdf

In regard to the data entry in the automated system, those indicators representing ratio shall automatically be calculated by the system in the
portal, as well as those same indicators from different pillar. This is to reduce unwanted error in the data encoding. Moreover, to further streamline
the data encoding process, a data sanity checking feature is added to the platform wherein upon data entry, the data will be automatically checked
and validated based on the general guideline or rules. Example, if an indicator requires a yes or no answer, the system will only accept responses
as either yes, no, or not applicable. Should it violate at least one of the assigned rules, there will be a flag error and the submission of the Local
Data Capture Sheet will not be fulfilled. The error must be addressed/corrected, in order for the submission to be accepted by the system. This
way, data correction already takes place at the outset of the data gathering done by the LGU.

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 LIST OF ACRONYMS
ADB Asian Development Bank
AIM Asian Institute of Management
ATM Automated Teller Machines
BPLO Business Permits and Licensing Office
BPLS Business Permits and Licensing System
BSP Bangko Sentral ng Pilipinas
CBMS Community Based Monitoring System
CC Component City
CCED City Cluster Economic Development
CDA Cooperative Development Authority
CDP Comprehensive Development Plan
CEDOS Chief Economic Development Society
CLUP Comprehensive Land Use Plan
CMCI Cities and Municipalities Competitiveness Index
CPDO City Planning and Development Office
DB Doing Business
DEPED Department of Education
DENR Department of Environment and Natural Resources
DILG Department of the Interior and Local Government
DOST Department of Science and Technology
DOH Department of Health
DOT Department of Tourism
DPWH Department of Public Works and Highways
DRRMC Disaster Risk Reduction and Management Council
DRRMP Disaster Risk Reduction Management Plan
DRRMO Disaster Risk Reduction Management Office
DTI Department of Trade and Industry
GCI Global Competitiveness Index

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GDP Gross Domestic Product
HUC Highly Urbanized City
ICT Information and Communications Technology
IFC International Finance Corporation
INVEST Investment Enabling Environment Project
IMD International Institute for Management Development
IPU Investment Promotions Unit
JMC Joint Memorandum Circular
LFS Labor Force Survey
LCDS Local Data Capture Sheet
LGPMS Local Governance Performance Management System
LGSP-LED Local Governance Support Program for Local Economic Development
LGU Local Government Unit
LIIC Local Investment Incentives Code
M/CTO Municipal/City Treasurer’s Office
MOA Memorandum of Agreement
MPDO Municipal Planning and Development Office
NCC National Competitiveness Council
NCDS National Data Capture Sheet
NTC National Telecommunications Commission
OIDCI Orient Integrated Development Consultants, Inc.
PCCR Philippine Cities Competitiveness Ranking
PNP Philippine National Police
PSA Philippine Statistical Authority
RCC Regional Competitiveness Committee
RCDS Regional Data Capture Sheet
SGH Seal of Good Housekeeping

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SURGE Strengthening Urban Resilience for Growth with Equity
USAID United States Agency for International Development
WEF World Economic Forum

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