Reversing 14-year infra decline key to competitiveness, says AIM

THE Aquino administration has to arrest the 14-year deterioration in the Philippines’ competitiveness by aggressively improving the country’s infrastructure, particularly its power sector, according to the Asian Institute of Management (AIM) Policy Center.

In a forum, Ma. Lourdes Sereno, AIM Policy Center executive director, said that among the factors listed by the World Yearbook on Competitiveness, infrastructure has deteriorated the most in the country.

“It is also the common factor that is vital to all the high-ranking countries,” Sereno said.

Based on this year’s yearbook, the Philippines performed poorly in terms of infrastructure, ranking 56th out of 58 countries surveyed.

“The new government should improve the country’s energy insecurities. It’s negatively perceived,” Sereno told reporters.

She said the perception among businessmen is that the government cannot assure them of enough energy supply in the future,” she said, adding that a poor budget picture pulls down the country’s public finance and infrastructure rankings.

The country’s technological, scientific, and human resources infrastructure ranked 56th, its health and environment, 48th; and its technological infrastructure, 29th. The Philippines ranks 57th in terms of interest payment on its public debts.

The new administration should also rebuild public institutions and citizens’ trust, which can be seen from the fulfillment of civic duties such as the payment of taxes, Sereno said.

The country ranked 56th in terms of tax efficiency, and 58th with regards corruption.

The Aquino administration must also address the country’s high population growth rate, the lack of jobs and under-investment in infrastructure, including energy, education and health.

Overall, the Philippines ranked 39th out of 58 countries in this year’s yearbook with a score of 56.526, up from 43rd last year.

The Philippines lagged behind neighbors such as Singapore, which ranked 1st; Malaysia, 10th; Indonesia, 26th; and Thailand, 35th.

“The degradation of the Philippines ranking over a period of 14 years is a wake up call to the Aquino administration and the public,” Sereno said.

The AIM professor also said the government must address legislation problems by improving its systems and processes at all levels.

Virgilio Fulgencio, Department of Trade and Industry executive director for the Center for Industrial Competitiveness, said the agency is optimistic about improving the country’s competitiveness in the next five years.

“The goal of the new administration is to [make] the Philippines more competitive. We are focusing on consumer protection and ease of doing business, including cutting red tape,” he said. –Darwin G. Amojelar, Senior Reporter, Manila Times