The recent report of eStandards Forum of the U.S. Financial Standards Foundation indicates that the Philippines is consolidating its competitiveness position.  Based on the forum’s 12 Key Standards for Sound Financial Systems, the country’s compliance level was scored at 52.50 reflecting medium overall compliance, which brings the Philippines to the 26th place of 81 countries reviewed.

            The 12 Key Standards for Sound Financial System are : Macroeconomic Policy & Data Transparency, data dissemination, transparency monitoring policy, transparent fiscal policy; Institutional Market Infrastructure, insolvency, accounting corporate governance, auditing antimony laundering, payment systems; Finance Regulation Supervision, banking supervision, securities regulation, insurance supervision.

            The eStandards Forum also review the Business Indicator Index which reflect the country’s political, economic and business model versus an ideal best-practice benchmark.  In this comparison, the Philippines improved slightly to be at the 63rd (from 64th) place out of the 81 countries.  It is still a few notches below the standard of an ideal country with best – practice benchmark.  Using this parameter, the Philippines is still at the bottom half of the list.

            While the Philippines is at the Top Third in the list in terms of financial standards, it remains at the bottom half in terms of business indicator index.  However, it enjoys the highest rating compared with most of its neighbors in the Sountheast Asian region.

            Ambassador Cesar B. Bautista, co chairman of the National Competitiveness Council assured that the problem of businessmen in dealing with government such as applications for mayor’s permits and licenses continue to be a source of complaints.  The recent surveys of business chambers indicate that business dealings with government offices are getting to occupy a bigger portion of the total costs of doing business in the Philippines.  Bautista believes that with the exemplary performance of LGUs with “sparkplugs” chief executives, the number of steps and costs involved in getting business licenses and permits will be line with the “mean” of the IFC surveyed countries. Business leaders are involved as resource and action volunteers in progressing the various process improvement projects on the 6 factors of concern:  Non-Competitive Human Resource, Poor Management in Some Public Offices, Scarce Financing for SMEs, High Transaction Costs with Government, Logistics Infrastructure Faulty,  High Energy Costs.