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WB-IFC: Inadequate reforms pull investment credibility down |
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Thursday, 11 September 2008 |
The Philippines should be more serious in implementing reforms if it is to keep pace with other countries in promoting business activity, according to a report of the World Bank and International Finance Corp.The Philippines slipped four notches No. 136 last year to No. 140 in “Doing Business 2009,” the sixth report in an annual World Bank-IFC series that looks into the laws, rules and regulations that govern business activities in 181 economies.
The Philippines’ dismal performance was attributed mainly to its lack of follow-through when it came to reform implementation, having only instituted one of a possible 10 reforms that the report covered.
The reforms covered were in the areas of starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.
The Philippines registered improvement in trading across borders—the only reform credited to it for the report period—having reduced the amount of time needed to export goods to 16 days from 17 days and to import goods to 16 days from 18 days.
This was achieved through “upgraded risk management and electronic data interchange system for Customs,” the report said.
Reforms that wee underway included the establishment of the Philippine Business Registry, an online registry and credit information system that aims to reduce lending risks, as well as the implementation of the anti-red-tape law to ensure speed and transparency in government transactions.IFC senior private sector development specialist Kim Jacinto-Henares said it was not that the Philippines was not instituting reforms. What was lacking was the implementation of these reforms, she said in a presentation Wednesday.
“We have to move and complete our reforms because other countries are doing their reforms,” Jacinto-Henares said. “Speed is also a factor to be considered. It’s not that we’re not doing anything. It’s more like other countries are doing more.”
“There are a lot of things that we still have to do and we have to complete,” she added. “Doing reforms is a continuing process. After completing one, that doesn’t mean that’s it. Everyone has to keep on running. There [has to be] a sense of urgency.”
For the Philippines to boost its ranking and become a more conducive environment for putting up businesses, she said, reforms should be systematically targeted, with a broad coalition of stakeholders working together to see the reforms through.
National Competitiveness Council co-chairman Cesar Bautista said it was true that the Philippines needed laws to improve the business environment, but at the end of the day the results are more important.
“The law may or may not be there,” Bautista said. “Public officials should be able to do their jobs within the confines of existing laws. They shouldn’t blame the absence of specific laws for their inaction.”
Source: Philippine Daily Inquirer by Abigail L. Ho, September 11, 2008
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Last Updated ( Thursday, 11 September 2008 )
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