Room for improvement

THE improvement of the Philippine economy has been brought to the forefront recently after it was included in the ten most-improved economies cited by the International Finance Corporation (IFC) together with the World Bank (WB).
The country was named in its report that discussed making business easier through simplifying trade across borders in 2009/2010 with the use of electronic customs systems.
The eighth in a series of annual reports conducted by the IFC and WB titled Doing Business 2011: Making a Difference for Entrepreneurs showed the Philippines as among those that have improved business initiatives in the category of having a one-stop shop at the municipal level.
Like the Philippines, 72 other economies worldwide have favored the one-stop shop business registration because such process does not require legal changes. At the same time, it enables entrepreneurs and governments alike often see immediate benefits according to the report.
Doing Business 2011 provides quantitative measures for establishing a business that covers the initial regulations, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business—as they apply to domestic small and medium-sized enterprises.
Aside from improvements made in the electronic customs systems, new processes such as electronic payments and online submission of declarations have cut the time and cost to trade in the Philippines, according to the report.
IFC Philippines Resident Representative Jesse O. Ang said the results of the Doing Business 2011 report “can serve as a global benchmark for the new Philippine government as it begins serious national regulatory reforms and embark on a concerted effort to complement local initiatives.”
“These should help the country to keep pace with other countries in enabling local small and midsized companies to join the formal sector, become more competitive, and create more jobs,” he added.
The Doing Business report meanwhile clarified its limitations such as not covering all factors relevant for business. The report states that it does not evaluate macroeconomic conditions, infrastructure, workforce skills or security; nor does it assess market regulation or the strength of the financial systems, which are both determining factors in underlying the cause of a financial crisis.
A country’s progress—no matter how big or small—indicates the determination of its government to prove to the world that they too can reach be successful. With a unified decision to always make room for innovation and creativity, and with an open mind to learn from mistakes, a nation such as the Philippines is sure to achieve its ultimate goal of progress. (AJPress)