MANILA, Philippines – The Philippines rose eight notches to 107th from last year’s ranking of 115th and garnered an Economic Freedom Score (EFS) of 57.1 this year, an improvement from the country’s previous score of 56.2.
Foreign Affairs Secretary Albert del Rosario welcomed yesterday the improvement in the Philippines’ global ranking in the 2012 Index of Economic Freedom (IEF) recently released by the Heritage Foundation.
The 2012 IEF highlights 10 economic freedoms such as property rights, freedom from corruption, fiscal freedom, government spending, business freedom, labor freedom, monetary freedom, trade freedom, investment freedom, and financial freedom.
“This is a clear validation of the policy reforms that the President has put in place to move the country forward and uplift the lives of our people,” Del Rosario said.
“We hope this development will encourage more economic activities in the country, including foreign investments, that would translate to more jobs for our people,” he added.
The Heritage Foundation reported that the Philippine economy “has been on a steady path of economic expansion.”
The Philippines’ 2012 score is 0.9 points higher than in 2011, which constitutes a significant improvement in business freedom.
The country ranked 19th out of 41 countries in the Asia-Pacific region, surpassing other emerging economies like Indonesia, India, China and Vietnam.
The report ranked Indonesia 115th, with an EFS of 56.4; India 123rd, with 54.6; China 138th, with 51.2; and Vietnam 136th, with 51.3.
The Philippine government has “pursued a series of legislative reforms to enhance the entrepreneurial environment and develop a stronger private sector to generate broader-based job growth,” the Heritage Foundation cited.
The report said the Philippines’ business regulatory environment has improved considerably – the time and cost involved in dealing with licensing requirements have been notably reduced.
The labor market also remains structurally rigid but existing regulations are not particularly burdensome.
The Heritage Foundation also noted that regulatory efficiency has been “notably enhanced,” although it stated that “lingering institutional challenges remain that require deeper commitment to reform.”
The index argues, among others, that “higher economic freedom is strongly correlated with successful elimination of poverty.”
The Heritage Foundation is a think tank whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, and strong national defense. –Pia Lee-Brago, The Philippine Star
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