According to middle and upper managers from various corporations and institutions worldwide, the Philippines became less competitive, slipping nine places to 50th among 63 countries.
The survey, conducted by the Switzerland-based Institute for Management Development in partnership with the Asian Institute of Management, found that the Philippines was perceived to be less competitive in all four measures: economic performance, government efficiency, business efficiency and infrastructure.
This was the steepest drop among Asia Pacific countries. It also placed the Philippines in last place among the five Asean founding members. Singapore was third, Malaysia 22nd, Thailand 30th and Indonesia 43rd.
Employment played a significant part in perception on economic performance, with a slight increase in unemployment and a slight decrease in the number of employed Filipinos, the report said. Other countries generally saw improvements in this area.
Infrastructure, too, is a cause for concern, as the government appears to only work on physical infrastructure through its Build Build Build program. Basic, scientific and educational infrastructure should also be improved because these will promote human capital formation.
As expected, administration officials tried to put a positive spin on the survey results. Presidential Spokesman Harry Roque said the administration was already addressing these issues. Socioeconomic Planning Secretary Ernesto Pernia said the country’s rank was the result of a mis-observation. Even the co-chairman of the National Competitiveness Council, Bill Luz, said it was a mere snapshot for 2017, and that the effects of government investments cannot be felt immediately anyway.
It is true that the survey findings were a result of the respondents’ perception. These respondents, however, are not random people on the street who may or may not be knowledgeable of the conditions in other countries. Instead, they are managers who are informed and who routinely make business decisions based on this kind of information.
Perception, too, should not be dismissed as “mere” perception. Investment decisions are made on a combination of hard data and perception. If others perceive business conditions in the Philippines to be slipping, it cannot be all fiction.
Trade Secretary Ramon Lopez’s statement on accelerating strategic reforms so that we could be at par with other countries is heartening, but then again the proof is how this would translate to actual statistics that would become a basis for educated perception.
Economic performance, government efficiency, business efficiency, and infrastructure are not quite as exciting to read about as President’s provocative statements, or appointments and resignations, or the simplistic battle between good guys and bad guys in government. Still, these are the foundations that determine whether we progress as a nation—or whether we just appear to be getting there.