Document: Philippine Cities Competitiveness Ranking

Based on recent studies conducted by international organizations such as the International Institute for Management Development (IMD), United Nations Development Programme (UNDP), the World Development Report and the Asian Institute of Management Philippine Cities Competitiveness Ranking Project (AIM PCCRP), the Philippines faces serious challenges in competitiveness posed by its neighbors in the region such as Thailand, Indonesia and China. Comparing the results of the PCCRP and the available data on the country’s performance with our Asian neighbors point to the poor productivity and growth performance of the country’s agricultural and industrial sectors. This together with the depreciation of the peso, the deterioration of the country’s (hard and soft) infrastructure and support system which made doing business in the Philippines relatively more costly and less attractive to foreign investors are the key factors behind the decline of the country’s competitiveness. Manifestations of these conditions include the failure to attract a significant share of the foreign direct investments (FDIs) that went to other South East Asian countries and China.