from: www.bworldonline.com (Click HERE for original article)
THE PHILIPPINES has slipped anew in terms of global competitiveness, with poor infrastructure and government inefficiency eclipsing gains made in economic performance and business competence.
While the country improved its score -- by over six points to a total of 63.291 from 56.526 last year -- in the latest edition of the World Competitiveness Yearbook (WCY), it still fell to 41st out of 59 economies from 39th place last year as other economies posted stronger gains.
The country was also ranked the least competitive in the Asia-Pacific region for the third straight year in the WCY, produced annually by the Switzerland-based Institute for Management Development (IMD) and released locally yesterday.
The Philippines’ ranking has fluctuated in lower third of the list in the last five years. It was 45th in 2007, improving to 40th the year after and then sinking to 43rd in 2009.
The latest result came as the country’s National Competitiveness Council (NCC) set a 2016 target of inclusion in the top 30 or 50 after missing a 2010 goal of a top third placing.
The United States and Hong Kong jointly took first place in the latest rankings with a perfect score of 100.
Last year’s topnotcher, Singapore, slipped to third with a score of 98.557.
Taiwan, Australia, Malaysia, China, New Zealand, Korea, Japan, Thailand, India and Indonesia also ranked above the Philippines in the Asia-Pacific region.
The WCY ranks economies from most to least competitive using four criteria: economic performance, government efficiency, business efficiency and infrastructure.
The Philippines enjoyed a significant jump in its economic performance this year, going up five notches to 29th. This was propelled by the country’s 7.6% gross domestic growth last year and a strong rebound in exports. The country, however, still suffers from a lack of foreign direct investments.
Business efficiency was also boosted this year through improvements in the productivity, efficiency and attitudes of the labor force. The Philippines climbed up one notch in the list to 31st.
"The Philippine labor force is well-educated and speaks good English, which is good especially for business process outsourcing," IMD Deputy Director Suzanne Rosselet-McCauley said in a presentation.
There was, however, a marked decline in government efficiency as the country sank to 37th from last year’s 31st. Fiscal policy, institutional framework, social framework and business legislation were listed as areas for improvement. Current regulations also make it difficult for business to compete domestically and internationally, Ms. McCauley said.
"Business efficiency is outpacing government efficiency. The Philippines will be able to increase its competitiveness if it synchronizes both," she said.
The country also dropped one notch to 57th in terms of infrastructure due to inadequate facilities, particularly for science and education.
"There is a lack of emphasis in research and development. The government should also work for greater access to education and increase investments in energy and transportation infrastructure," Ms. McCauley noted.
The public-private partnership (PPP) program could help bridge the infrastructure gap, Philippine Constructors Association, Inc. Executive Director Manolito P. Madrasto yesterday said.
However, unclear PPP guidelines on risk-sharing and guarantees could turn away interested businesses, he warned.
"We have a bad reputation of shirking on our contracts, so the government has to make an effort to make clear and certain rules regarding the PPP to assure investors," Mr. Madrasto said.
The Aquino administration’s proposed K-12 education program could also improve the quality of education in the country, University of the Philippines economist Benjamin E. Diokno said in a press conference.
"We will not see the effects overnight, but it is a good start," he said.
The government should work on its deficiencies as soon as possible because last year’s growth and export rates are not sustainable, Mr. Diokno added, as these came from a low base.
NCC co-chairman and private sector representative Guillermo M. Luz said the latest rankings were a "good wake-up call" for the Philippines.
"We are moving with small steps in the beginning, but there will be bigger and faster steps in the future as we get more government agencies involved," he told BusinessWorld. -- DCJJ
*Do not wait for the government to take care of you, position yourself and learn to become an Entrepreneur!
The country was also ranked the least competitive in the Asia-Pacific region for the third straight year in the WCY, produced annually by the Switzerland-based Institute for Management Development (IMD) and released locally yesterday.
The Philippines’ ranking has fluctuated in lower third of the list in the last five years. It was 45th in 2007, improving to 40th the year after and then sinking to 43rd in 2009.
The latest result came as the country’s National Competitiveness Council (NCC) set a 2016 target of inclusion in the top 30 or 50 after missing a 2010 goal of a top third placing.
The United States and Hong Kong jointly took first place in the latest rankings with a perfect score of 100.
Last year’s topnotcher, Singapore, slipped to third with a score of 98.557.
Taiwan, Australia, Malaysia, China, New Zealand, Korea, Japan, Thailand, India and Indonesia also ranked above the Philippines in the Asia-Pacific region.
The WCY ranks economies from most to least competitive using four criteria: economic performance, government efficiency, business efficiency and infrastructure.
The Philippines enjoyed a significant jump in its economic performance this year, going up five notches to 29th. This was propelled by the country’s 7.6% gross domestic growth last year and a strong rebound in exports. The country, however, still suffers from a lack of foreign direct investments.
Business efficiency was also boosted this year through improvements in the productivity, efficiency and attitudes of the labor force. The Philippines climbed up one notch in the list to 31st.
"The Philippine labor force is well-educated and speaks good English, which is good especially for business process outsourcing," IMD Deputy Director Suzanne Rosselet-McCauley said in a presentation.
There was, however, a marked decline in government efficiency as the country sank to 37th from last year’s 31st. Fiscal policy, institutional framework, social framework and business legislation were listed as areas for improvement. Current regulations also make it difficult for business to compete domestically and internationally, Ms. McCauley said.
"Business efficiency is outpacing government efficiency. The Philippines will be able to increase its competitiveness if it synchronizes both," she said.
The country also dropped one notch to 57th in terms of infrastructure due to inadequate facilities, particularly for science and education.
"There is a lack of emphasis in research and development. The government should also work for greater access to education and increase investments in energy and transportation infrastructure," Ms. McCauley noted.
The public-private partnership (PPP) program could help bridge the infrastructure gap, Philippine Constructors Association, Inc. Executive Director Manolito P. Madrasto yesterday said.
However, unclear PPP guidelines on risk-sharing and guarantees could turn away interested businesses, he warned.
"We have a bad reputation of shirking on our contracts, so the government has to make an effort to make clear and certain rules regarding the PPP to assure investors," Mr. Madrasto said.
The Aquino administration’s proposed K-12 education program could also improve the quality of education in the country, University of the Philippines economist Benjamin E. Diokno said in a press conference.
"We will not see the effects overnight, but it is a good start," he said.
The government should work on its deficiencies as soon as possible because last year’s growth and export rates are not sustainable, Mr. Diokno added, as these came from a low base.
NCC co-chairman and private sector representative Guillermo M. Luz said the latest rankings were a "good wake-up call" for the Philippines.
"We are moving with small steps in the beginning, but there will be bigger and faster steps in the future as we get more government agencies involved," he told BusinessWorld. -- DCJJ
*Do not wait for the government to take care of you, position yourself and learn to become an Entrepreneur!
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