SAN SALVADOR–The U.S. Agency for International Development (USAID) presented the results of the 2013 Municipal Competitiveness Index (MCI), reflecting improvements in the competitiveness level of 108 municipalities in El Salvador.

The MCI measures the business climate at the municipal level, providing information to identify strengths and opportunities to increase tax revenues, improve regulatory and procedural frameworks and to improve the business climate and attract investment at the local level. The MCI helps identify areas for joint action with the private sector and the community for local employment promotion and the implementation of public policies that enable greater local economic development.

The 10 highest ranked municipalities in the 2013 MCI are: Atiquizaya (Ahuachapán), El Carmen (Cuscatlán), Alegría (Usulután), Tejutla (Chalatenango), San Julián (Sonsonate), Pasaquina (La Unión), Juayúa (Sonsonate), San Salvador (San Salvador), San Pablo Tacachico (La Libertad) y Antiguo Cuscatlán (La Libertad). These results are the product of an investigation carried out with over 8,000 business owners and representatives of municipal governments, and validated by consultations and surveys using statistical methodology.

The 2013 MCI, now in its third year, measured the degree of economic governance through eight indicators: transparency, municipal services, proactivity, illicit payments, public safety, time to comply with regulations, taxes and fees, and entry costs.

Since 2009, USAID has funded the MCI with technical support from the Superior School of Economics and Business (ESEN) to measure the degree of economic governance in the municipalities of El Salvador. The total amount invested in the development and dissemination of the 2013 MCI was $215,836.00, of which ESEN provided $92,246.00.  ESEN will also continue the development of MCI every two years.

With a total investment of $11.2 million from September 2010 to March 2014, the USAID Municipal Competitiveness Project supports 50 municipalities to improve competitiveness, develop a business-friendly environment, promote entrepreneurship and generate business and employment opportunities.  The project strengthens the municipalities’ administrative capacity in providing services to entrepreneurs and encourages partnerships with the private sector.

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