YES, government-private sector collaboration to improve our country’s global competitiveness in the National Competitiveness Council (NPC) has become more intense in the past couple of years. As a result, a lot of reforms have been carried out nationally and in the local governments to make doing business in the Philippines less disagreeable to foreign investors.

Making foreign businessmen feel good about doing business in the Philippines is a goal that must be taken seriously, not only by the government people and private-sector businessmen who are now already working together in the NPC. Local governments officials at all levels, including the barangay, must also help in the effort. For our country lags far behind our more successful fellow members of Asean as a foreign direct investment (FDI) destination.

FDIs are the funds that foreign investors sink into long-term and big-ticket projects—infrastructure, renewable energy and traditional electric power production, massive agro-business corporations and the like. These big projects will of themselves create jobs and by their existence and productivity trigger more commerce and industry, meaning more businesses, stores and factories and therefore more jobs.

Jobs are the key to making or country more prosperous and less weighed-down by massive poverty that involves almost 40 percent of our population.

Some of our country’s biggest traditional trading partners—the United States, Japan and the rich countries of Western Europe—are suffering from recession or at least a prolonged economic slowdown. We simply must become more attractive to foreign investors than we are now. Other countries in Asia, our neighbors in the Association of Southeast Asian Nations as well as Latin American and African countries are our competitors for some of the much-reduced foreign capital.

WB-IFC Doing Business 2013 Report
That is why it was bad for our overall ranking in the latest Doing Business Report of the World Bank (WB) and its sister-company, the International Finance Corporation (IFC), to fall to No. 138, two notches below our place (No. 136) last year. The study is titled “Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises.”

The administration spokesmen, understandably, attempted to lessen the hurt and keep the people’s spirit up. It’s true that perhaps the Doing Business 2013 report had some data-gathering flaws.

The report says we did not make any reform in the 12 months since the survey and research for Doing Business Report 2012 were completed. Near perfect New Zealand at No. 3 rank under Singapore and Hong Kong at least did one reform. Like us No. 4 USA also did not introduce any reform. But No. 5 Denmark did 1, No. 6 Norway did 2, No. 7 United Kingdom did 1, No. 8 S. Korea did 4, No. 9 Georgia did 6, No. 1 Australia did 1, No. 15 Ireland did 2, No. 16 Taiwan did 2, Canada did 1.

Our fellow Asean countries’ reform records are better. No. 1 Singapore 0 reforms. But it’s a First World country and already the best place for doing business in. No 12 Malaysia did 2 reforms. No. 18 Thailand also 2, like No 79 Brunei 2 reforms. No. 99 Vietnam 1. No. 128 Indonesia 1 reform. No. 133 Cambodia 1 reform. No. 163 Lao PDR did 3 reforms. Myanmar has no ranking.

But we did do reforms—mainly nationally

To counter the WB-IFC judgment against us, Presidential Spokesman Edwin Lacierda said, “We have already started to embark on our one stop processing center.” As a result of this more foreign investors are interested in the Philippines. “They’re eyeing the Philippines as an investment haven.

And certainly, part of our obligation is to make certain that we continue to improve the manner [of dealing with foreign investors] and the services that come along with doing business here in the Philippines,” he added.

President Aquino’s spokesman said the World Bank report seemed to focus only on doing business in the local government level.

“But certainly, it’s something that we need to reckon with and, of course, we’ve always been in the process of trying to improve the services both on the national and the local government level.” He also said the government had introduced e-reforms which is part of the one-stop shop of the Department of Trade and Industry (DTI).

“Insofar as the national government is concerned, we have the one-stop shop that we have started with the DTI. For instance, you register your business name with the DTI, and you’re able to enroll immediately and have your Tax Identification Number, your Social Security System number, etc.

Those are the e-reforms that we have done at the national level,” he said. But obviously the WB-IFC researchers either did not notice them.

The report specifies rankings according to different aspects of “Doing Business.” It shows that starting a business here is the most complicated in the world, so our rank in this issue is very poor—No. 161 out of 185.

The American Chamber of Commerce’s (AMCHAM) Senior Adviser, John Forbes, disputes the report. He told GMA News Online, “I think it’s inaccurate, I don’t think they gave a correct representation of the Philippines.”

Nevertheless, we have to inspire the local governments to improve by big leaps. For this WB-IFC report was mainly concerned with small and medium enterprises (SMEs). The researchers saw what we Filipinos generally know.

We must make lots of reform. If we don’t — despite the administration’s confidence that the WB-IFC report will have no impact on foreign investment flows to our country — our FDI will remain as low as it is. This year it is less than $1 billion, just the same as Cambodia’s ($0.9 billion). Singapore’s FDI is $27.4 billion, Indonesia’s is $8.2 billion in inflows, Thailand’s is $5.6 billion and Malaysia’s is $4.4 billion.