What is PCCRP

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What is PCCRP?

• The project assesses the capacity of cities to
  provide an environment that nurtures the dynamism
  of its local enterprises and industries
• It assesses the general ability of the city to
  attract investments, entrepreneurs, and residents
  and uplift the living standards of its residents
• The project provides a benchmarking process that
  will aid individual cities in measuring
  competitiveness.

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Objectives of PCCRP

• Motivate local governments to change mentality
  from service provider to economic managers
• Provide feedback mechanism for business community
  to local governments
• Ranking process functions as tool to pinpoint and
  analyze best practices in economic management of
  local governments and build the capacity of all
  LGUs by applying competitiveness lessons from
  other LGUs

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Based on World Competitiveness Yearbook by
IMD

• AIM Policy Center has been the Philippine
  partner of IMD since 1995
• Annual competitiveness
• ranking of 59 countries
• Utilizes more than 300
• indicators/ criteria from
• national statistics and
• executive surveys

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Drivers of City Competitiveness
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Based on Ten Cities Ranking of 1999
1. General Santos 2. Angeles 3. Baguio 4. San
Fernando, La Union 5. Davao 6. Iloilo 7.
Zamboanga 8. Cagayan de Oro 9. Tacloban 10.
Iligan
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PCCRP 2002

• 30 cities 19 cities in Luzon
• 9 cities in Visayas
• 5 cities in Mindanao
• Cities were classified into
• Metro Cities
• Mid-Sized Cities
• Small Cities

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Based on PCCRP 2002
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Whats New with PCCRP 2003?

• 50 cities
• 23 cities in Luzon
• 11 cities in Visayas
• 16 cities in Mindanao

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Whats New with PCCRP 2003?

• Study utilized 70 indicators
• 21 quantitative indicators
• 49 perception-based
• indicators
• Executive surveys of owners and managers of
  SMEs in each city conducted between
• July 2003 to November
• 2003

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Scale to Assess Urban Competitiveness

• Scores for each indicator are converted into a
  ten-point scale based on national and global
  benchmarks

Score Qualitative Meaning
1-2 Very low competitiveness
(improve) 3-4 Below average
competitiveness(improve) 5 Average
competitiveness 6-7 Above average
competitiveness(enhance) 8-10 High
competitiveness(sustain)
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Philippine Cities Competitiveness Ranking
Project 2003

• Data gathering was conducted in partnership
  with the following educational
  institutions
• St. Louis University (Baguio)
• Angeles University Foundation
• De La Salle Lipa
• Ateneo de Naga University
• University of San Agustin (Iloilo)
• University of San Carlos (Cebu)
• Xavier University (Cagayan de Oro)
• Mindanao State University (Marawi)
• Ateneo de Zamboanga University
• Ateneo de Davao University

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Philippine Cities Competitiveness Ranking
Project 2003

• Small Cities
• Non-Metro Cities with Population Less than
  200,000 Residents

Cadiz Oroquieta Cavite Ozamis Cotabato Pagad
ian Dagupan Puerto Princesa Dipolog Roxas Dumag
uete San Carlos Koronadal San Fernando, La
Union Legaspi Sta. Rosa Malaybalay Surigao Mar
awi Tacloban Naga Tagaytay Olongapo Tagum Orm
oc
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Philippine Cities Competitiveness Ranking
Project 2003

• Mid-Sized Cities
• Non-Metro Cities with Population Greater than
  200,000 Residents

Angeles Iligan Bacolod Iloilo Baguio Lipa Bat
angas San Fernando, Pampanga Butuan Tarl
ac Cagayan de Oro Zamboanga General Santos
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Philippine Cities Competitiveness Ranking
Project 2003

• Metro Cities
• Cities comprising Metro Manila, Metro Cebu and
  Metro Davao

Cebu Mandaue Davao Manila Lapu-Lapu Marikina
Las Piñas Muntinlupa Makati Pasig Mandaluyong
Quezon City
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PCCRP MODEL
COST COMPETITIVENESS
Rating
DYNAMISM OF LOCAL ECONOMY
Rating
LINKAGES and ACCESSIBILITY
Rating
City Ranking
HUMAN RESOURCES and TRAINING
Rating
INFRASTRUCTURE
Rating
RESPONSIVENESS OF LOCAL GOVERNMENT
Rating
QUALITY OF LIFE
Rating
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Drivers of CompetitivenessCOST OF DOING BUSINESS

• COST OF ELECTRICITY
• 5-country Benchmark
• COUNTRY US/kwh
• Indonesia 0.03
• China 0.03
• Thailand 0.06
• Malaysia 0.06
• Philippines 0.09
• Source World Competitiveness Yearbook 2002

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Drivers of CompetitivenessCOST OF DOING BUSINESS

• METRO CITIES
• Davao 5.83
• Muntinlupa 5.32
• Marikina 5.29

• How expensive is it to operate in the city
  compared to other cities?
• Cost of power for industrial use
• Average rent of commercial space
• Average cost for acquiring phone services
• Minimum Wage
• General profitability of doing business
• Informal fees in the city
• Survey Data

• MID-SIZED CITIES
• General Santos 6.88
• Batangas 6.57
• Bacolod 6.48

• SMALL CITIES
• Tagaytay 6.80
• Cavite 6.57
• Tagum 6.30

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Drivers of CompetitivenessDYNAMISM OF THE LOCAL
ECONOMY

• METRO CITIES
• Cebu 6.99
• Makati 6.90
• Quezon City 6.87

• Can the city attract and foster inward
  investments?
• Average household income
• Local inflation rate
• Percentage of top 200 corporations
• Popn vs. fast-food chain locators
• Market size
• Consumer Price Index
• Tourism sector is vibrant
• Business revenues expected to increase
• Business access to financing
• Regulatory environment is conducive to business
• Survey Data

• MID-SIZED CITIES
• Iloilo 6.93
• Bacolod 6.58
• Cagayan de Oro 6.53

• SMALL CITIES
• Tacloban 6.29
• Tagaytay 6.19
• Sta. Rosa 5.87

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Drivers of CompetitivenessLINKAGES AND
ACCESSIBILITY

• How easy is it to transport goods and services
  from the city?
• Raw materials are located near the city
• Transporting raw materials from sources takes a
  short time
• International entry and exit points are located
  near the city
• Availability of business support services
• Benefits of business collaboration in the city
• If the level of national government agencies
  services is good
• Survey Data

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Drivers of CompetitivenessHUMAN RESOURCES AND
TRAINING

• How well equipped is the population to build and
  take advantage of opportunity in the locality?
• Number of tertiary educational institutions
• Number of vocational Institutions
• Skilled labor availability
• Easily trainable workforce
• Appropriate academic programs for local industry
• Adequate IT training programs
• Eagerness of workers to skills development
• Importance of investing in skills development
• Availability of training programs organized by
  schools and industry partners
• Expectation on worker performance
• Constructive labor-management relations
• Availability of businesses that allows on-the-job
  trainess
• Effective management of workers
• Link between job satisfaction and worker
  productivity
• If poor labor practices are discouraged in the
  city
• Strong worker suggestion on business operations

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Drivers of CompetitivenessRESPONSIVENESS OF LGU

• Can the LGU respond to systematic and short-lived
  issues with a well grounded and focused vision?
• Percentage of IRA to LGU revenue
• If securing a business is simple and efficient
• If the city government is transparent in its
  dealings
• If citys administration of justice is fair
• If city policies and regulations are reflective
  of business needs
• If local government holds regular forums to
  elicit opinions from constituents
• If the citys Clean and Green Program is
  effective
• If business taxes are reasonable
• If the citys master development plan is
  appropriate to business sectors needs
• If land use regulations are reasonable and
  flexible
• If LGU is involved in developing human resources
• If LGU programs to assist displaced workers are
  effective
• Survey Data

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Drivers of CompetitivenessINFRASTRUCTURE

• Are the necessary physical, telecommunications,
  technological, infrastructure, and knowledge
  support services present?
• Number of banks
• Road density
• Vehicle density
• Number of internet service providers
• Well- managed road network and traffic
• Road clearance during peak hours
• Reliability of electric power services
• Abundance of water supply
• Easy connection of telephone lines from other
  service providers
• Adequate cellular phone signals
• Reliability of ISPs
• Adequate garbage management
• Survey Data

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Drivers of CompetitivenessQUALITY OF LIFE

• How well-off are residents in terms of quality of
  environment and life?
• Incidence of theft per 100,000 Pop.
• Incidence of murder per 100,000 Pop.
• Hospital beds per 100,000 Pop.
• Life Expectancy at birth
• Roads and public open spaces are clean
• Open bodies of water are clean
• Air quality is clean
• Rest and recreational facilities are adequate
• Conduciveness of the security environment to
  businesses.
• Survey Data

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Recognition of the Most Competitive Philippine
Cities
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Overall Competitiveness
SMALL CITIES
1. Koronadal
6.17 2. San Fernando, La Union 6.09 3.
Tagaytay 6.05
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SMALL CITIES RANKING BY DRIVER
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Overall Competitiveness
MID-SIZED CITIES
1. Bacolod 6.62 2. San Fernando,
Pampanga 6.24 3. Cagayan de Oro 6.18
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MID-SIZED CITIES RANKING BY DRIVER
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Overall Competitiveness
METRO CITIES
1. Marikina 6.58 2. Pasig 6.36
3. Davao 5.89
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METRO CITIES RANKING BY DRIVER
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PCCRP 2003 TRAITS OF THE MOST COMPETITIVE
PHILIPPINE CITIES

• Low cost of doing business and broad market base
• Proximity to other growth centers
• Competent Workforce
• Vibrant tourism sector
• Strong supporting environment
• Very responsive local government

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Next Steps

• City Competitiveness Roadshows Nationwide
• City Competitiveness Best Practices Analysis
• Marikina, Pasig, and Davao
• Bacolod, San Fernando, Pampanga, and Cagayan de
  Oro
• Koronadal, San Fernando, La Union,
  and Tagaytay
• Pinoy Cities on the Rise 2004 Magazine
• Leadership indicators in PCCRP
• Regionalize the City Competitiveness Ranking
  Project
• City Competitiveness Ranking 2005