Emphasizing the key role of local government units (LGUs) in elevating the country's competitiveness, Trade and Industry Secretary Alfredo E. Pascual is encouraging local leaders to develop a holistic approach on competitiveness through innovation, entrepreneurship, and sustainable development.

Pascual made this call Thursday, Sept. 28, during the Philippine Creative Cities and Municipalities Competitiveness Congress (PCCMCC) at the Manila Hotel, highlighting that LGUs are key to sustainable growth, job opportunities, and improved life quality in the Philippines, as they are the guardians of collective aspirations. 

“LGUs, due to their proximity to the grassroots, hold the dual responsibilities of service and sensitivity. They are entrusted with multifaceted roles, from public security to environmental guardianship,” Pascual emphasized.

Pascual stressed that cities and municipalities are vital hubs for sustainable development, fostering creativity and promoting diverse talents, industries, and ideas, thereby unlocking opportunities for our country's growth.

“By transforming our localities into creative hotspots, we can attract local and foreign investments, boosting economic growth and employment opportunities,” Pascual said.

Pascual added that LGUs are responsible for ensuring the welfare and national progress of the people for the benefit of society. “However, we must recognize that much work still needs to be done,” he said

Based on this year’s Global Competitiveness Report, the Philippines was ranked 52nd among 64 countries, reflecting a four-spot decline from the 2022 ranking.

The comprehensive assessment of nations' competitive standing by the World Competitiveness Center of the International Institute for Management Development was based on 255 criteria across four competitiveness factors such as economic performance, government efficiency, business efficiency, and infrastructure.

The Philippines has seen declines in three main factors, indicating areas for improvement in government efficiency and infrastructure, while also showing significant strides in economic performance.

“Recognizing, scrutinizing, and rectifying the weak elements highlighted in the report is imperative for elevating our national standing in competitiveness,” Pascual said.

The index serves as a diagnostic tool for local government officials to evaluate city competitiveness, identify areas for improvement, and provide insights for policy-making and investment promotion, according to the DTI chief.

It also aids business communities in locating operations, as well as provides a general picture of Philippine cities and municipalities, useful for academe, civil society, and tourists.

However, Pascual said, “competitiveness is not just about attracting investors and businesses. It is also about creating an environment that fosters innovation, nurtures local culture and talent, and empowers our people to reach their full potential.”

In line with this, he also highlighted the potential of creative industries to contribute to the country's gross domestic product based on the Philippine Creative Economy Toward a Baseline and Programme.

Meanwhile, the Philippine Creative Industries Development Act (PCIDA) has prompted the DTI to prioritize fostering a more empowering environment for the creative sector.

As a startup move, Pascual mentioned the DTI's Young Creatives Challenge (YC2) initiated by Senator Imee R. Marcos and Congressman Toff de Venecia. YC2 aims to nurture and showcase the talents of young Filipinos, highlighting their limitless possibilities.

Further, the Competitiveness Bureau (CB) fosters partnerships with the academe, public and private sectors, and development organizations to achieve a more competitive Philippines. (Ma. Joselie C. Garcia)