Rethinking Urban Strategies : A Closer Look at Small City Competitiveness in the Philippines

The traditional focus of urban development policies on primary cities has increasingly been challenged, highlighting the need to explore the economic potential of smaller and medium-sized cities. Given that a significant proportion of the global population resides in cities with fewer than 300,000 inhabitants, a comprehensive assessment of their socio-economic performance is essential. This study examines the competitiveness of cities in the Philippines, where urban areas are predominantly small to mid-sized, by analyzing data from the Cities and Municipal Competitiveness Index (CMCI) for 146 cities. The findings indicate that larger cities—defined as those with populations exceeding 500,000—generally exhibit stronger socio-economic performance but are also associated with higher costs, particularly in terms of rent. While larger cities outperform across multiple dimensions of competitiveness, including economic dynamism, government efficiency, infrastructure, resilience, and innovation, several small and medium-sized cities surpass national averages and rank among the most competitive urban areas. Notably, cities such as Pasay, Iloilo, Naga, and Legazpi demonstrate high competitiveness due to their strategic location, economic vitality, infrastructure development, strong governance, disaster resilience, and innovation-driven policies. These findings underscore the potential of smaller cities to contribute significantly to economic growth and development, warranting greater policy attention toward fostering their competitiveness.