SEVERAL emerging markets in the world have experienced exceptional economic strides. These nations are mostly highly export-driven with strong inflows of capital and investment and well-capitalized banking institutions.
Many emerging markets have already “emerged.” Now that it is no longer the “Sick Man of Asia,” it is high time for the Philippines to experience this and become an integral player in the world economy as well. The country is a good option for its low start-up costs for new businesses, desirable workforce, and geographical proximity to other Asian markets. Foreign investments are more than welcome in the country.
The Philippines’ standing in the International Institute for Management Development’s (IMD) World Competitiveness Yearbook (WCY) for 2016 has seen a minor setback after falling to 42nd place from 41st last year. This drop comes despite being hailed as the one of the fastest-growing economies in the world.
The annual report measures four broad factors in measuring competitiveness—economic performance, government efficiency, business efficiency and infrastructure. It uses economic data from various international and national sources, as well as an opinion survey in generating over 300 criteria to assess and rank the competitiveness of nations.
The WCY also suggested that the incoming administration under President-elect Rodrigo Duterte address these challenges to improve the country’s competitiveness landscape: Secure businesses and communities from conflicts and calamities; Sustain governance reforms at all levels and across administrations; Enhance infrastructure, human capital, and cooperation to reduce transaction costs; Develop a competitive business environment to benefit from ASEAN integration and Foster shared prosperity through entrepreneurship and decent employment.
Under a new management, with Pres.-elect Duterte at the helm, the Philippine economy is poised to emerge as an economic prospect and attractive business destination. His economic team is set to meet this month to assess current government forecasts.
Incoming Budget Secretary Benjamin Diokno said that the incoming government is considering lowering the economic growth targets for the country in the next three years.
“Public spending, especially for public infrastructure, does not affect economic growth instantaneously. There is usually a lag. “Second half growth rate will be slower…as the impact of election spending fades. Agricultural sector and exports would continue to be weak,” Diokno revealed.
To avoid an economic regression, the incoming government should address issues such as weak institutions, poverty and corruption continue to dissuade investors and make exporting in the country challenging.
Breaking through to the next level is all about meeting and exceeding expectations. As auspicious as it is. The Philippine economy should no longer settle for minor improvements and find ways to being consistently good rather than great just once in a while. (AJPress)
