This is a re-posted op-ed piece.
Finally, an improvement in the country’s international ranking. In the latest Global Competitiveness Report prepared by the World Economic Forum, the Philippines has made a substantial leap of 10 notches from the previous year, placing 75th out of 142 economies.
The WEF noted that the country posted one of the best improvements in the latest report.
The administration’s economic team has reason to be elated, with the country’s macroeconomic rating rising by 14 notches. The WEF attributed the country’s 54th rank in this category to a slightly lower public deficit and debt, improved credit rating, and moderate inflation.
But many challenges remain, as the WEF itself noted. Among the worst ratings the Philippines received was in the area of corruption, where the country placed a dismal 127th, despite the avowed focus of the Aquino administration on anti-corruption measures. The country also placed 117th in terms of physical security.
Among the worst ratings were in infrastructure, where the country’s overall rank was 113th, and seaports placed 123rd. Airport infrastructure fared slightly better, at 115th place. Equally disheartening was the country’s rank in primary education, at 110th place despite a 90 percent enrolment and free and compulsory basic education. The poor quality of Philippine education, as highlighted once again in another international survey recently, has pulled down the country’s competitiveness in the past decades.
Only two Asian countries made it to the top 10 in competitiveness: Singapore dislodged Sweden to place second after Switzerland, while Japan fell three places to ninth from last year. The United States, with its financial woes, fell another notch for the third straight year, taking fifth place.
The observations of the WEF on the weaknesses of the Philippines are not new. Those problems have been raised for years by business groups and other sectors, with little progress in reforms. In other competitiveness surveys, the Philippines has fallen in ranking not because it has done worse but because other countries are doing better, addressing problems and plugging deficiencies. This is something that is worth bearing in mind for the Aquino administration as it aims for a much improved competitiveness ranking for the country by 2016.
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Source: The Philippine Star, Editorial, Sept. 10, 2011
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