EDITORIAL - Least competitive

About four decades ago, the Philippines placed second only to Japan in terms of economic pro-gress and human development indicators in this part of the world. Today, in study after study, the Philippines is turning into the regional laggard, managing to stay ahead only of countries emerging from violent conflict such as Laos and Cambodia.

The 2009 World Competitiveness Ranking once again bears out this dismaying trend. Of 57 economies included in the World Competitiveness Yearbook, the Philippines ranked 43rd  overall, dropping three notches from its previous slot. The survey did not include Southeast Asian neighbors Vietnam, Cambodia, Myanmar and Brunei, but the Philippines lagged behind 12 other Asia-Pacific economies.

Never mind perennial Asian achievers Hong Kong, which ranked second in competitiveness after the United States, or Singapore, which ranked third. But the Philippines was also far behind its Southeast Asian neighbors Malaysia, which placed 18th, and Thailand, which ranked 26th. Even Indonesia was a notch above the Philippines. If Vietnam and oil-rich Brunei had been included, they might have also rated better than the Philippines.

The Swiss-based International Institute for Management Development prepared the 2009 World Competitiveness Scoreboard based on the 57 economies’ business efficiency, infrastructure, government efficiency and economic performance. The Philippines rated badly in all but business efficiency, where it ranked 32nd. In the sub-factors, the country reportedly rated poorly in business legislation where it ranked 50th, productivity and efficiency (53rd), education (54th), public finance (54th), international investment (56th), scientific infrastructure (56th) and basic infrastructure (57th).

All these weaknesses are not impossible to correct. A number of them have long been listed as areas of concern by various groups. Some of the weaknesses are being addressed, but the competitiveness survey should serve as a reminder that more needs to be done if the country wants to even keep up with its better performing neighbors.