MANILA, Philippines – The Philippines will focus on six priority areas where the country has been downgraded over the past five years as it moves toward attaining the country’s target of ranking in the top third of several international competitiveness surveys.
These priority areas are trading across borders, protecting minority investors, enforcing contracts, registering property, starting a business and paying taxes.
In a presentation during yesterday’s 4th Annual Ease of Doing Business Summit, National Competitiveness Council (NCC) co-chairman for the private sector Bill Luz showed these six areas emerged as the major factors which dragged down the country’s competitiveness over the past few years.
From 2011 to 2016, Luz said Philippines’ rankings in terms of trading across borders have plunged 34 notches.
This was followed by protecting minority investors in which the country’s rankings fell 23 notches, and enforcing contracts which posted a 22-notch decline.
In registering a property, international competitiveness surveys showed the Philippines dropped 10 notches over the five-year period, while starting a business and paying taxes recorded declines of nine and two notches, respectively.
“We have not done enough. We cannot be satisfied with what has been accomplished so far. I’m afraid we cannot open those champagne bottles yet. We have just scratched the surface,” Trade Secretary and NCC chair Adrian Cristobal Jr. said.
The NCC, however, noted key areas where the country has made significant gains in rankings for the past five years, such resolving insolvency (up 100 notches), dealing with construction permits (up 57), getting electricity (up 35) and getting credit (up 19).
“What this reflects more than anything is a deep level commitment on the part of government and private sector to make the country more competitive and improve conditions in the country for both businesses and consumers,” Luz said.
“I am confident that given the commitment and teamwork shown by all the agencies and private sector, we can turn those downgrades around and overtake some countries. One thing about competitiveness is every country is trying to outdo each other so we cannot standstill because we will be overtaken,” he added.
Among the 12 international competitiveness surveys which the NCC monitors, the Philippines has so far breached the top third in two of them, namely the Global Competitiveness Index and the Global Gender Gap Report of the World Economic Forum.
Meanwhile, the Philippines has posted significant gains in the International Finance Corporation’s Doing Business Report, moving up 45 notches for the past five years.
Currently, the Philippines ranks 103rd out of 189 economies in the report.
The country aims to be on the top third or number 63 of the world rankings this year.
“To reach the upper third this year will be sort of stretch now and we knew it was an ambitious stride but we made great strides. So we continue to try to land on the upper third, but it will be challenging,” Cristobal said.
“Again, we do this not because of the annual World Bank report or other international reports. These are just convenient tools to measure our performance. We do not do this to attract more foreign direct investments, though that may be one of the benefits, nor do we do this purely because of business. The main reason why we are complying is for the small guys out there,” he added.