EXECUTIVE SUMMARY
Arangkada Philippines 2010: A Business Perspective is about creating a bright future for the Philippines, the 12th most populous country and probably the 10th or 9th by 2030. Arangkada is a guidebook to a better Philippines, with the Per Capita Income (PCI) of a middle-income economy, robust investment levels, better infrastructure and higher government revenues to pay for social services, especially education and health. Absolute poverty would be reduced by inclusive growth with less malnutrition, crime, and insurgency. With more rewarding opportunities at home, Filipinos would have less reason to work abroad.
Arangkada Philippines 2010 contains 471 recommendations from Filipino and foreign businessmen and women for building a more competitive economy, reform-by-reform, leading to high growth and millions of new jobs.
Catching up and keeping up is an imperative, not a choice. The Philippines has lagged for too long, losing competitiveness, despite its immense potential and location in the fastest growing region with 60% of the global population. More than ever, opportunities abound for the Philippines to improve trade and investment ties in Asia and elsewhere and advance towards high-income status.
Despite a dynamic population and a land blessed with natural resources, economic progress has been slow. In most international ranking surveys, the Philippines is slipping. The country has not improved its competitiveness as much as others and continues to slide despite recent GDP growth and rising PCI. The country should strive to move twice as fast –“Arangkada” – which means “to accelerate.”
Contents
Abbreviations
Acknowledgements
Transmittal Letter to President Benigno Simeon Aquino III
EXECUTIVE SUMMARY
Philippines: Country Data
Introduction
PART 1: GROWING TOO SLOW
The Philippine Economic Landscape in 2010: Faster Growth is Essential
Decades Lost to Slow Growth
Philippine Growth Has Not Been Inclusive
Living in the High Growth Neighborhood
Remittances Are Important But Distort the Economy
Twice as Much Investment Needed for Higher Growth
Low Foreign Direct Investment Flows
Headline Recommendations
PART 2: BECOMING MORE COMPETITIVE
The Philippine International Competitiveness Landscape
Regional Business Outlook Survey
Best Countries for Business
Failed States Index
Index of Economic Freedom
World Competitiveness Yearbook
International Property Rights Index
Corruption Perceptions Index
Human Development Report
E-governance Readiness Survey
Doing Business Report
Investing Across Borders 2010
Paying Taxes Report
Worldwide Governance Indicators
Global Competitiveness Report
Global Enabling Trade Report
Travel and Tourism Competitiveness Report
Environmental Performance Index
Headline Recommendations
PART 3: SEVEN BIG WINNER SECTORS
Seven Big Winners
Agribusiness
Business Process Outsourcing
Creative Industries
Infrastructure
Airports
Power
Roads and Rail
Seaports
Telecommunications
Water
Manufacturing and Logistics
Mining
Tourism, Medical Travel, and Retirement
PART 4: GENERAL BUSINESS ENVIRONMENT
Business Costs
Environment and Natural Disasters
Foreign Equity and Professionals
Governance
Labor
Legislation
Local Government
Macroeconomic Policy
Security
Social Services: Poverty
Education
Health and Population
BIBLIOGRAPHY
ANNEXES