Now that the Philippines has breached the upper third of the World Economic Forum’s (WEF) Global Competitiveness Report, it is now eyeing to enter the top 20 percent of the list by 2020, or a jump of at least 18 spots over a period of five years.
And Guillermo M. Luz, private-sector cochairman of National Competitiveness Council (NCC), said the key to achieving this new target is the policy direction of the next leader.
“Moving up into a new neighborhood of competitors means we have to be looking up at the top 20 percent, which means a ranking of 30 or higher in the next five years. Absolutely, everything depends on the next administration, because leadership matters,” said Luz in an interview at the Investor Relations Office’s Philippine Economic Briefing on Wednesday.
The latest Global Competitiveness Report of the WEF placed the Philippines at the 47th spot out of 140 economies, up by 5 notches from 2014’s ranking of 52nd. This year’s five-spot jump represents the fifth time in a row that the Philippines improved its ranking in the WEF’s Global Competitiveness Report.
Of the 12 pillars tracked in the report, the Philippines notched improvement in 10 pillars, with the biggest improvements noted in Labor Market Efficiency, Health and Primary Education, Market Size, Business Sophistication, Innovation and Macroeconomic Environment.
The two pillars that registered declines are Institutions and Goods Market Efficiency.
Factors that led to a drop in the country’s ranking in the Institutions pillar were government inefficiency, or red tape, in establishing a business. For the Goods Market Efficiency, a specific area that needs to be improved are customs procedures.
Moving forward, the NCC said it will now focus on lessening the number of procedures to start a business, as well as the number of days to start a business, to respond to the downgrade in the Institutions pillar.
“Corruption has been undertaken by government inefficiency, and inadequate infrastructure. These are the factors we should be mindful about in terms of the concerns of investors,” Luz said.
The country already scaled 38 spots since 2010. Despite the jump, the Philippines remained in the fifth place in the Asean ranking.
“Our current rank of 47—compared to last year’s 52—further cements our reputation as a bright spot in Asia, an attractive destination for foreign investment, and a better place to do business for Filipinos,” Palace Spokesman Edwin Lacierda said.
“This gain is the largest measured over that period, reflecting the extent to which daang matuwid has transformed the country,” he added. “Surveys such as this have proven it time and again: reform works, good governance works.”
“The changes implemented under the Aquino administration have contributed toward increased transparency and efficiency, bolstering public trust and creating a more enabling environment for business,” he said, adding: “The effects are palpable, not only at a macroeconomic level but also in our citizens’ everyday lives, with continuous improvements in the delivery of social services. As the country prepares for next year’s referendum on daang matuwid, developments such as these continue to demonstrate the benefits of treading the straight and righteous path.”
(With Butch Fernandez)