Thursday, January 1, 2015

Philippines International Competitiveness Report 2010 201

Global Competitiveness Report (GCR)

Every year the World Economic Forum produces an annual Global Competitiveness Report with the objective of evaluating the economic competitiveness of countries.

The GCR presents two complementary approaches for assessing national competitiveness.

(i) Growth Competitive index(GCI)

The report assess a nation’s ability to sustain economic growth by evaluating twelve pillars of competitiveness.

(1)Institutions; (2) Infra structure; (3) Macro Economic stability ;(4) Health and primary Education ;(5) Higher education and training; (6) Goods market efficiency; (7) Labour market efficiency ;(8) Financial market sophistication; (9) Technological readiness; (10) Market size (11) Business sophistication; (12) Innovation.

After the global economic crisis, the ranking of the Philippines in the 2010-2011 Global Competitiveness Index (GCI) released by the World Economic Forum (WEF) improved by two notches to 85th out of 139 countries.

The WEF said the Philippines improved its ranking and score to 4, it was ranked 87th in the 2009-2010 with a score of 3.9.

The report said, however, that the country’s ranking last year and this year was still significantly lower than its ranking in 2008, at 71st and with a score of 4.1.

1st Pillar - Institutions

Institutions are simply the incentive systems that structure human interaction [North, 2003]. They are the “rules of the game” in society—formal rules, informal constraints, and their enforcement characteristics—which reduce uncertainty, generate regular behavior, and allow people to get on with everyday business.

 Of particular concern are institutions in the public sector. Public sector institutions—those that loom large in people’s public or political actions—include, on the one hand, the explicitly defined constitutions and laws, rules and regulations, which together are meant to ensure good governance. These formal rules prescribe the functions and accountabilities of branches of government, agencies, politicians and bureaucrats, their interaction among themselves and with the public. Also there are a number of Foreign invents are flowing into Philippines.

GCI ranking interms of institutions was 125 rank(2010-2011)

2nd Pillar - Infrastructure.

Philippines ranked 104 in GCI infrastructure in 2010-2011 report.
In the recently released 2010 World Competitive Yearbook (WCY), the Philippines slightly improved its overall competitiveness ranking from last year, but is still lagging behind its neighbours in the Asia Pacific region.

Like in previous years, the Philippines ranked near the bottom when it came to infrastructure. It ranked 56th out of 58 economies in infrastructure.

The Philippines ranked 56th in basic infrastructure, in scientific infrastructure, and in education; 48th in health and environment; and 29th in technological infrastructure.

The low score in infrastructure was caused by the country’s low secondary school enrolment, high pupil-teacher ratio, and low public spending on education.

Philippine’s  port system, road system, water transport system, distribution system are really so bad and the cost of distribution of goods from island-to-island is so high. The country, she added, is not devoting enough share of its gross domestic product for new infrastructure projects.

3rd pillar – Macroeconomic stability      
The macroeconomic stability can be measured by the government surplus/deficit, national savings rate, inflation, interest rate spread and government debt..The crisis in the 1980s lead to macroeconomic instability. Government intervention in the financial system repressed its function with various forms of regulations. When the resulting cumulative distortions in the system led to financial crises, the intervention took the form of "relief,” which generated more serious moral hazard, imposed heavier costs on government finance and then led to macroeconomic instability, i.e. domestic as well as external imbalances. This instability has made the financial system more and more vulnerable. Till then there are many ups and downs with new monetary policies. Corruption is the main culprit in Philippines which is leading to macroeconomic instability.

2010-2011 GCI ranking in terms of macroeconomic stability was 68.

4th pillar – Health and primary education

The Philippines is home to the most hospitable people on earth, having been very popular because of its hospitality to local and foreign tourist. This attitude is one of the many reasons why a lot of people are thinking about relocating into this Southeast Asian country.

The Philippines has about 95,000 or about 1 per 800 people with about 1,700 hospitals where 60% are private totalling 85,000 beds.

TO get FREE ACCESS to this complete 16 Page Academic Project Report on “Philippines Global Competitiveness Report (GCR)

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Hope this project helped in getting ideas to make your own project better.

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