PHILLIPPINES

GLOBAL COMPETITIVE INDEX and Key Parameters

that have an edge over India

Viraj.Dhamdhere
MBA Sem 4
Roll No.29
Amity Mumbai

Philippines' Global Competitiveness Ranking Rises in 2011

The Philippine National Competiveness Council (NCC) has stated that this
jump is one of the highest recorded worldwide for this year by the WEF,
and is the highest on record for the Philippines since its entry into the
global competitiveness ranking in 1994.
The Global Competitiveness Index measures over 110 key indicators spread
across 12 major categories or pillars. The Philippines recorded
improvements in ranking in nine of the 12 pillars. The key driver for the
Philippines gains has been attributed to the judicious management of its
macroeconomic environment.
In particular, the Philippines showed improvements in its rankings on credit
rating (from No. 75 to No. 63), government debt management (from No.
102 to No. 89), interest rate spreads (from No. 75 to No. 50), and
management of inflation (from No. 73 to No. 69). Another key driver was in
the area of market efficiency for goods, particularly in the intensity of local
competition (from No. 65 to No. 47), extent and effect of taxation (from
No. 77 to No. 52), prevalence of foreign ownership (from No. 104 to No.
72), and local supplier quantity (from No. 68 to No. 52). On the
technological readiness front, the country showed marked improvements
in FDI and technology transfer (from No. 88 to No. 66), internet users (from
No. 112 to No. 88), and internet bandwidth (from No. 101 to No. 76).

Global Competitiveness Index

Rank (out of 139) (17)Score

GCI 20102011.........................................................85 ......4.0

GCI 20092010 (out of 133)......................................87........3.9
GCI 20082009 (out of 134).......................................71........4.1
Basic requirements...................................................99........4.0
1st pillar: Institutions ...............................................125........3.1
2nd pillar: Infrastructure...........................................104........2.9
3rd pillar: Macroeconomic environment ....................68........4.6
4th pillar: Health and primary education ....................90........5.4
Efficiency enhancers.....................................................78........3.9
5th pillar: Higher education and training ....................73........4.0
6th pillar: Goods market efficiency.............................97........3.9
7th pillar: Labor market efficiency .............................111........3.9
8th pillar: Financial market development......................75........4.0
9th pillar: Technological readiness................................95........3.2
10th pillar: Market size.................................................37........4.5
Innovation and sophistication factors ............................75........3.4
11th pillar: Business sophistication................................60........4.0
12th pillar: Innovation....................................................111........2.

Key Parameters Where Philippines has edge over India

1) Macroeconomic Environment
Where India Ranks below Philippines at Rank 73 and Philippines at 68
2) Health and Primary Education
Where India Ranks below Philippines at Rank 104 and Philippines at 90
3) Higher Education and Training
Where India Ranks below Philippines at Rank 85 and Philippines at 73

Philippines
The Global Competitiveness Index in detail
INDICATOR

RANK /139

1st pillar: Institutions

1.01 Property rights.......................................................................

..99

1.02 Intellectual property protection ...........................................

..103

1.03 Diversion of public funds.................................................

..135

1.04 Public trust of politicians .......................................................

134

1.05 Irregular payments and bribes..............................................

.128

1.06 Judicial independence .........................................................

..111

1.07 Favoritism in decisions of government officials ....................

131

1.08 Wastefulness of government spending ................................

118

1.09 Burden of government regulation ........................................

.126

1.10 Efficiency of legal framework in settling disputes ............

....122

1.11 Efficiency of legal framework in challenging regulations ...

...116

1.12 Transparency of government policymaking...........................

123

1.13 Business costs of terrorism ..................................................

126

1.14 Business costs of crime and violence.................................

..104

1.15 Organized crime ..................................................................

..106

1.16 Reliability of police services .................................................

.105

1.17 Ethical behavior of firms.......................................................

.129

1.18 Strength of auditing and reporting standards........................

..75

1.19 Efficacy of corporate boards ...................................................

56

1.20 Protection of minority shareholders interests .....................

..80

1.21 Strength of investor protection* .........................................

.109

INDICATOR

RANK /139

2nd pillar: Infrastructure

2.01 Quality of overall infrastructure .............................................113
2.02 Quality of roads .....................................................................114
2.03 Quality of railroad infrastructure..............................................97
2.04 Quality of port infrastructure .................................................131
2.05 Quality of air transport infrastructure ....................................112
2.06 Available airline seat kilometers* ............................................28
2.07 Quality of electricity supply ...................................................101
2.08 Fixed telephone lines* ..........................................................106
2.09 Mobile telephone subscriptions* ............................................88
3rd pillar: Macroeconomic environment
3.01 Government budget balance* .................................................63
3.02 National savings rate* .............................................................74
3.03 Inflation*..................................................................................73
3.04 Interest rate spread* ...............................................................75
3.05 Government debt* ................................................................102
3.06 Country credit rating*..............................................................75

4th pillar: Health and primary education

4.01 Business impact of malaria ...................................................101
4.02 Malaria incidence*...................................................................96
4.03 Business impact of tuberculosis ...........................................106
4.04 Tuberculosis incidence* ........................................................117
4.05 Business impact of HIV/AIDS..................................................83
4.06 HIV prevalence* ........................................................................1
4.07 Infant mortality* ......................................................................89

INDICATOR

RANK / 139

4.08 Life expectancy* .....................................................................84

4.09 Quality of primary education ...................................................99
4.10 Primary education enrollment rate* ........................................82

5th pillar: Higher education and training

5.01 Secondary education enrollment rate* ...................................82
5.02 Tertiary education enrollment rate*.........................................76
5.03 Quality of the educational system...........................................69
5.04 Quality of math and science education.................................112
5.05 Quality of management schools .............................................61
5.06 Internet access in schools.......................................................76
5.07 Local availability of research and training services..................77
5.08 Extent of staff training.............................................................46

6th pillar: Goods market efficiency

6.01 Intensity of local competition ..................................................65
6.02 Extent of market dominance.................................................109
6.03 Effectiveness of anti-monopoly policy ....................................92
6.04 Extent and effect of taxation...................................................77
6.05 Total tax rate*..........................................................................99
6.06 Number of procedures required to start a business* ...........128
6.07 Time required to start a business*........................................120
6.08 Agricultural policy costs...........................................................95
6.09 Prevalence of trade barriers ....................................................89
6.10 Trade tariffs*............................................................................52
6.11 Prevalence of foreign ownership ..........................................104

INDICATOR

RANK / 139

6.12 Business impact of rules on FDI .............................................98

6.13 Burden of customs procedures.............................................129
6.14 Degree of customer orientation ..............................................42
6.15 Buyer sophistication ................................................................60

7th pillar: Labor market efficiency

7.01 Cooperation in labor-employer relations..................................56
7.02 Flexibility of wage determination ............................................96
7.03 Rigidity of employment* .........................................................75
7.04 Hiring and firing practices..................................................... .116
7.05 Redundancy costs* ............................................................. ..114
7.06 Pay and productivity ................................................................82
7.07 Reliance on professional management ...................................47
7.08 Brain drain ............................................................................. ..85
7.09 Female participation in labor force* ......................................104

8th pillar: Financial market development

8.01 Availability of financial services ...............................................49
8.02 Affordability of financial services.............................................37
8.03 Financing through local equity market ....................................56
8.04 Ease of access to loans...........................................................55
8.05 Venture capital availability........................................................75
8.06 Restriction on capital flows .....................................................64
8.07 Soundness of banks ................................................................38
8.08 Regulation of securities exchanges ........................................73
8.09 Legal rights index* ................................................................103

INDICATOR

RANK / 139

9th pillar: Technological readiness

9.01 Availability of latest technologies ............................................62
9.02 Firm-level technology absorption ............................................59
9.03 FDI and technology transfer ....................................................88
9.04 Internet users* ......................................................................112
9.05 Broadband Internet subscriptions* .........................................84
9.06 Internet bandwidth* ..............................................................101

10th pillar: Market size

10.01 Domestic market size index*..................................................33
10.02 Foreign market size index* .....................................................43

11th pillar: Business sophistication

11.01 Local supplier quantity.............................................................68
11.02 Local supplier quality ...............................................................70
11.03 State of cluster development ..................................................55
11.04 Nature of competitive advantage ............................................67
11.05 Value chain breadth .................................................................59
11.06 Control of international distribution .........................................45
11.07 Production process sophistication...........................................86
11.08 Extent of marketing.................................................................50
11.09 Willingness to delegate authority............................................38

12th pillar: Innovation

12.01 Capacity for innovation ............................................................80
12.02 Quality of scientific research institutions ..............................108

INDICATOR

RANK / 139

12.03 Company spending on R&D....................................................85

12.04 University-industry collaboration in R&D.................................85
12.05 Govt procurement of advanced tech products ....................129
12.06 Availability of scientists and engineers ...................................96
12.07 Utility patents per million population*.....................................7