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WB rates RP poorly as site for business

09/27/2007

The Philippines was ranked among the worst countries to do business in the world, based on a World Bank (WB) survey released yesterday.

As a result of the survey, the WB urged the Arroyo administration to speed up reforms meant to ease business transactions in the country to attract more investments.

The Philippines slipped to 133rd in the WB’s annual “Doing Business” survey that examines business regulations and reforms in 178 economies. Last year, the Philippines ranked 130.

In Southeast Asia, the Philippines is only ahead of Cambodia, Laos and East Timor. Indonesia overtook the Philippines this year as it climbed to 123 from 135.

The country slipped across the board in almost all categories in the ranking this year, falling to 144th in terms of starting a business from 135 last year, 77th from 75th on dealing with licenses, even at 122nd on employing workers, falling to 86th from 81st on registering property, 97th from 94th on getting credit, improving to 126th from 129th on paying taxes, falling to 57th from 52nd on trading across borders, a poor 113th in both years on enforcing contracts and a more dismal 144th in both years on closing a business.

Overall, Singapore was ranked as the most business-friendly country, followed by New Zealand and the United States.

The report was meant to pinpoint to policy-makers areas of reform and design a reform agenda, Jesse Ang, acting country manager for the International Finance Corp., the WB’s private lending arm, said in a statement.

“In the Philippines’ case, the challenges have been identified and reforms are starting to be implemented,” Ang said. “Through more strategic and focused implementation, the Philippines can quickly lower the cost of doing business and attract more private sector capital.”

WB acting country director Maryse Gautier said hastening reforms will allow the Philippines to raise its investment rate from 15 percent of gross domestic product to 20 percent, the level enjoyed by its regional peers.

“Raising investment is important not just for sustaining growth but for generating more jobs to get many more Filipinos out of poverty,” Gautier said.