According to the Global Competitiveness Index (GCI) 2011-2012 rankings published by the World Economic Forum (WEF), Philippines' competitiveness is improving, significantly in certain respects. However, decades of mismanagement of the economy and other competitiveness factors mean that the climb up the competitiveness rankings is slow; the results show that the country remains mired in the mid-tier of global attractiveness to investors.
“Up 10 places to 75th, the Philippines posts one of the largest improvements in this year’s rankings,” reads the Global Competitiveness Report (GCR) 2011-2012. “The vast majority of individual indicators composing the GCI (Global Competitiveness Index) improve, sometimes markedly. Yet the challenges are many, especially in the areas at the foundation of any competitive economy, even at an early stage of development.”
The Global Competitiveness Report 2011-2012 ranks 142 countries using over 100 indicators. For each indicator, the list of countries are ranked according to the performance of their economy in that indicator. Philippines ranked 75th out of 142 countries, a big move from its former ranking in the 85th spot (as reported in the 2010 GCR).
With regard to the Philippine economy, the following are reflected in the GCR 2011-2012:
- Corruption and physical security, ranking at 127th and 117th. They are still perceived as “particularly acute" issues.
- The country’s infrastructures is said to be “improving marginally,” but it not fast enough to meet the needs of the business sector, specifically the growing outsourcing industry of the country. The country ranked 113th with this indicator.
- Another weak index ranking is the Seaport and Airport infrastructure of the country; Seaport ranked at 123rd while Airport ranked at 115th. This is a major area to improve, considering that the country is also a prime tourist destination worldwide.
The report also reflects that there is a “vast opportunity” for improvement in other indicators, and points specifically to the inflexible and inefficient labor market of the country, which ranked 113th.The “most problematical factors for doing business” in the Philippines include tax regulations, inefficient government bureaucracy, and inadequate supply of infrastructure.
The following are the reflected strengths that contribute to the country's global competitiveness:
- The macroeconomic situation of the country is positive, raising the Philippines 14 places to 54th. This is due to the slightly lower public deficit and debt, an improved country credit rating, and the inflation remains under control.
- Reliance on professional management puts the country in the 50th spot.
- In the affordability of financial services, Philippines ranks at the 42nd.
- Extent of staff training places the country on the 34th spot.
The Outsourcing Industry is one of the main drivers of boosting the economy. It is one of the most tangible evidences that the country is competitive enough. Together with government and other private sectors, the outsourcing industry can help raise the mark higher in the next Global Competitiveness Report.
About the Author
Publish on 07/24/2012
is a self-employed blogger and copywriter from the Philippines who loves writing and is always happy to share her passion for blogging.
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