13 November 2013 - The Permanent Mission of the Philippines to the World Trade Organization (WTO) reported that the Philippines was cited as one of the 10 economies improving the most in 2012-2013 in areas tracked by the Doing Business 2014 report.
The report was presented in an event organized by the World Bank, the International Finance Corporation and the WTO in Geneva on November 06.
In the report, the Philippines significantly improved its ranking by 30 places from 138th to 108th. Ambassador Esteban B. Conejos, Jr., Permanent Representative of the Philippines to the WTO, was invited by Ms. Selina Jackson, Special Representative of the World Bank Group to the UN and WTO, to be the discussant during the presentation.
The Doing Business report assesses regulations affecting domestic firms in 189 economies and ranks the economies in 10 areas of business regulation. It measures the basic steps and amount of time it takes for business enterprises to undergo a government process across the lifetime of a business—from the day it starts (i.e., incorporates) to the day it closes (i.e., files for insolvency or closure).
The 2014 report focused on the theme “Understanding Regulations for Small and Medium-Size Enterprises: Comparing Regulations for Domestic Firms in 189 Economies”.
As discussant, Ambassador Conejos was pleased to share that the Philippines moved up 30 places in the ranking, the largest jump recorded in the world this year and the Philippines’ biggest gain in the 11 years of the report.
He stated that President Benigno S. Aquino III has time and again declared that “the Philippines is open for business.” The improvement in the ease of doing business in the Philippines is one pillar of a comprehensive reform agenda focused on sound fundamentals, good governance and enhanced competitiveness.
He noted that the National Competitiveness Council (NCC), a public-private task force currently chaired by Trade and Industry Secretary Gregory L. Domingo and co-chaired by Mr. Guillermo M. Luz, takes the lead in Philippine competitiveness efforts. While the NCC was formed in 2006, it took on a heightened role with Executive Order No. 44, which provided the objective of improving the country’s competitiveness from the bottom third of the ranking to the top third – or at least 63rd – by 2016 (with the improvement in the latest rankings, the Philippines has moved from the bottom third to the middle third).
President Aquino further underlined the seriousness of his administration in enhancing competitiveness with Administrative Order 38, which has been implementing NCC’s “Game Plan for Competitiveness,” with a dedicated work team per indicator mandated to submit actual changes or improvements through a formal regulatory document such as an executive order, administrative order, department order, circular, or city ordinance.
In the latest Doing Business report, the Philippines advanced in seven out of 10 indicators, compared to only three in 2012. These are on: Resolving Insolvency (up 65 places due to the 2010 Financial Rehabilitation and Insolvency Act); Getting Credit (up 43 places with better access to credit information and the Data Privacy Act guaranteeing borrowers’ right to access their data); Getting Electricity (up 24 with 8-day improvement in obtaining connection); Paying Taxes (up 12 places with electronic filing and payment system for social security contributions); Trading Across Borders (up 11); Dealing with Construction Permits (up 1); and Registering Property (up 1).
These reforms have been felt by entrepreneurs and investors as evidenced by improvement in investments in recent years.
The reforms currently implemented only represent the “evolution” stage of reforms involving manual cutting or streamlining of steps. More significant gains are expected during the subsequent “revolution” phase involving reengineering and automation.
Ambassador Conejos expressed confidence that the Philippines will sustain its momentum in competitiveness and eventually reach its target to be in the top 63 by 2016. “There is a long way to go and much more needs to be done to make us more competitive and attractive in terms of job-generating investments, but the initial results serve as an inspiration to drive us to keep on moving and improving,” he stated.
Mr. Yonov Frederick Agah, WTO Deputy Director-General, noted the significant progress of the Philippines. Mr. Augusto Lopez-Claros, Director of Global Indicators and Analysis of the World Bank Group, stressed the importance of continuing with reforms even with the attainment of significant improvements, and was pleased to hear the Philippines’ work-in-progress mindset. He also cited the Philippines for its comprehensive reform agenda on other fronts. Ms. Jackson thanked the Philippines for sharing its reform initiatives. END