In an earlier post, we featured why the Philippines severely lags the global competitive environment, see 2009 Global Competitiveness Report And The Philippines.
In this post, the World Bank provides the details why the economy hasn't been materially improving. Yes, some (marginal) improvements, but not sizeable enough to make a dent on the real economy.
It's primarily because policies have been less friendly (my adjective-averse/hostile) to business.
Here is the partial list of the world ranking according to doingbusiness.org.
Notice that the Philippines has ranked 144th out of 183 countries. Last year we ranked 141st.
Yet notice that the same countries, which are in the highly competitive order, have a pro-market economy environment.
We'd like to avoid saying pro-business as it may create a misplaced notion of supporting "big" business.
A market economy is an economy conducive to competitive entrepreneurial class, particularly small and medium scale enterprises.
In the East Asia & Pacific, the Philippines has been placed dismally in 21st out of the 24 countries. According to the doing business ratings, we lag almost across all categories- the worst being-starting a business, paying taxes, applying for permits and employing workers. Our best has been trading across borders.
Generally we have been relegated to lowest order just in front of Cambodia, Timor-Leste and Laos.
It's primarily because policies have been less friendly (my adjective-averse/hostile) to business.
Here is the partial list of the world ranking according to doingbusiness.org.
Notice that the Philippines has ranked 144th out of 183 countries. Last year we ranked 141st.
Yet notice that the same countries, which are in the highly competitive order, have a pro-market economy environment.
We'd like to avoid saying pro-business as it may create a misplaced notion of supporting "big" business.
A market economy is an economy conducive to competitive entrepreneurial class, particularly small and medium scale enterprises.
In the East Asia & Pacific, the Philippines has been placed dismally in 21st out of the 24 countries. According to the doing business ratings, we lag almost across all categories- the worst being-starting a business, paying taxes, applying for permits and employing workers. Our best has been trading across borders.Generally we have been relegated to lowest order just in front of Cambodia, Timor-Leste and Laos.
The Philippines' overall ranking fell, this year, not because of more deterioration but because more countries have aggressively worked to improve on their business environment. As the above graph would show.Recently the Philippines reportedly adopted reform measures aimed at ameliorated the business environment:
``The Philippines enhanced access to credit with a new credit information act that regulates the operations and services of a credit information system.
``The government also cut the corporate income tax rate from 35 percent to 30 percent and promoted company reorganization procedures by introducing prepackaged reorganizations and regulating the receiver profession."
Unfortunately while necessary and quite laudable, it hasn't been sufficient.
The Philippines remains structurally trammeled by anti-business (anti competition) pro-government (politics) policies, laws and regulations.
Unfortunately, populism and personality based politics won't solve this.
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