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PIA Press Release
2006/10/17

Mindanao cities on the rise

Davao City (17 October) -- City competitiveness, as defined by the World Competitiveness Yearbook, is the ability of a city to create and maintain an environment that sustains more value creation for its enterprises and more prosperity for its people.

In the recent research of the Asian Institute for Management for the Philippine Cities Competitiveness Ranking Project (PCCRP) 2005, Philippine cities were again ranked based on seven major drivers of competitiveness: cost of doing business; dynamism of local economy; linkages and accessibility; human resources and training; infrastructure; responsiveness of local government to business needs; and quality of life. These were adopted from the World Competitiveness Yearbook of the Swiss-based International Institute for Management Development.

"Sixty-five cities were surveyed in PCCRP 2005, the fourth edition of the project. Cities were categorized into 13 metropolitan cities (those in Metro Manila, Metro Cebu and Metro Davao), 15 mid-sized cities (non-metro cities each with a population greater than 200,000), and 37 small cities (each with a population less than 200,000). Geographically, 30 cities are from Luzon, 14 from Visayas and 21 from Mindanao.

Based on the results, five Mindanao cities were named most competitive: Davao in the metropolitan cities category, Iligan in the medium-scale cities category, and Koronadal, Surigao and Tagum for the small-sized cities category.

Davao is the only metropolitan city in Mindanao that was named one of the most competitive cities in the country, confirming its role as the central economic hub in the island. The efficient LGU response to business needs, infrastructure and high quality of life also contributed to the city's high rating.

In the medium-scale category, only Iligan made it as a competitive city, ranking second in the following categories: Cost of doing business, efficient response of LGUs and developed infrastructure. Butuan ranked fourth in cost of doing business, Cagayan de Oro was fourth in infrastructure, General Santos was second in linkages and accessibility, and Zamboanga was first in the cost of doing business and dynamism of local economy.

In the small-scale cities category, Surigao was ranked first in the cost of doing business, followed by Koronadal, and Tagum was third in responsiveness of LGUs to business needs.

From the competitive cities' documented best practices, the leadership value of local government officials, followed by the presence of a strong support system (business alliances and responsive civil society) were deemed necessary to become a competitive city. Other factors influencing competitiveness included quality of human resources, presence of good infrastructure and a stable peace and order situation.

These best practices were based on the basics of development, which are infrastructure provision (roads and bridges, water, power, telecommunications); quick and simplified response from government; accurate and timely collection of statistics that build to policy making, resulting in ordinances and regulations that are responsive to current and emerging needs. Participatory governance is also a major factor highlighted in the study.

The study further noted the major contribution of cities to national economic development. All Mindanao cities surveyed were contributing in the overall economic development of Mindanao through improved infrastructure and efficient delivery of services. (PIA) [top]

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