Read this and feel good

Nobody murdered, raped, plundered, land-grabbed or bombed anybody. That’s why you may have missed these bits of good news, whispering headlines buried deep in the inner pages of newspapers. It’s a fact: negative appeals more than positive. Tormented is sexier than tranquil. The fascination for angst is as time-tested as “Rebel-Without-A-Cause” James Dean, the original poster boy for exquisite anguish.

But if you’re a joy junkie, read on. These are at least as good as the Azkals’ stunning upset, or the recent Philippine Dragon Team’s unexpected haul of golds!

Philippines’ Global Competitiveness Ranking Rises

10 positions higher than 2010; one of the biggest jumps in the world!

In the 2011 Global Competitiveness Index (GCI) ranking by the World Economic Forum (WEF), Philippines moved up to No. 75 out of 142 economies — one of the highest WEF-recorded jumps worldwide, our highest rank since 1994. Last year, we ranked No. 85 out of 139 economies.

Guillermo M. Luz, National Competitiveness Council co-chairman credits this leap to “the teamwork between government and the private sector and the coordination among different government agencies…” Ten working groups meet regularly to prepare recommendations for the Economic Cluster and the Cabinet. Areas of concentration are Infrastructure, Power and Energy, Streamlining Transaction Costs and Flows, Budget Transparency, Governance, Anti-Corruption, Judicial Reforms, and ICT Governance. 

GCI measured over 110 key indicators in 12 major categories or “pillars”. Philippines improved in nine out of twelve, with significant leaps in “macroeconomic environment” (68 to 54), “technological readiness” (95 to 83); and “institutions” (125 to 117).

The improvement in macroeconomic environment was particularly evident in the areas of credit rating (75 to 63), government debt management (102 to 89), interest rate spreads (75 to 50), and management of inflation (73 to 69).

Another key driver was market efficiency for goods, particularly in the intensity of local competition (65 to 47), extent and effect of taxation (77 to 52), prevalence of foreign ownership (104 to 72), and local supplier quantity (68 to 52).

On the technological readiness front, the country showed marked improvement in FDI and technology transfer (88 to 66), internet users (112 to 88), and internet bandwidth (101 to 76).

Institutions ranking improved marginally but remains a challenge. This probes the management of public funds, counter-corruption, legal framework, and favoritism/transparency in government decisions. Many of these indicators are slowly moving in the right direction.

In terms of quality of infrastructure, port and air transport remained low. Health and primary education sector was also cited as an area for improvement, specially the quality of science and math education (which declined from last year (112 to 115).

The second piece of good news came from the 2011 ASEAN Business Outlook Survey. 327 senior executives from U.S. companies were surveyed through the American Chamber of Commerce (AmCham) in Singapore, Cambodia, Indonesia, Malaysia, Philippines, Thailand and Vietnam.

The survey revealed that ASEAN continues to grow in value for businesses in the region even while rising costs and corruption are the watch-outs. Majority (73%) expect its importance to increase over the next two years, while 85% plan to expand their business. Not a single company plans to contract. Although almost one-third chose Indonesia as the top site for expansion, the outlook on the Philippine business climate is quite positive overall. We are in fighting form versus competitors.

Cambodia’s major strengths are the stable government and political system, positive US sentiments and high level of personal security. Corruption is a leading concern, with 88% dissatisfied.

Indonesia’s low-cost business environment in labor, housing and office lease are strengths. Its weaknesses are corruption, laws and regulations, and infrastructure. Regionally, it’s the most popular expansion site chosen by U.S. companies (72%).

Malaysia improved in factors like availability of raw materials and low cost labor. However, new concerns such as lack of trained personnel and problems with laws and regulation appeared. Corruption, a long-standing issue, has significantly improved to 35% from 63% dissatisfaction last year. 

Singapore’s stable government and political system and laws and regulations are plusses. The slight decline from last year was caused by availability of low cost labor (40%) and rising office lease costs (58%). Housing costs continue to have the highest level of dissatisfaction at 77% with over 90% expecting increased living costs as well. 86% are primed for expansion, the highest rate ever recorded.

Thailand respondents enjoy personal security, adequate infrastructure, and reasonable housing/office lease costs. Concerns center on corruption and the stability of the government and political system. Still, companies continue to expand and 98% of expats are satisfied.  

Vietnam’s major strengths are the high degree of personal security, a stable government and political system. Concerns involve infrastructure, corruption in the government, rising housing and living costs. Although satisfied with the availability of low cost labor, companies note the lack of skilled personnel. Vietnam was the second choice for U.S. investment, with 25% reporting plans to expand.

Philippines: Even with expected increased in living and housing costs, majority (77%) believe that there will be an expansion in economic growth and only (2%) expect an economic contraction. Corruption, infrastructure and laws and regulations remain the issues to address.

The objective evidence shows that the Philippines is poised to soar, unless we shoot our own foot again. Bolstered by PNoy’s increased satisfaction and trust ratings as registered in the recent SWS, the straight path is indeed the shortest way to progress. A little more faith in our collective capability might rev the wheels of progress faster.

Ignoring the doomsters, cynics and spin-doctors that constantly carp, disparage and pull down is one constructive resolution. Demanding that Media play-up our country’s wins, advantages and gains is another. Even with the foreknowledge that bad news sells more, I doubt that Filipinos prefer to feel depressed, afraid or angry versus uplifted, hopeful and serene. The law of attraction submits that one gets what one thinks. If we want to be happier, good news should at least have equal if not more, space, time and dominance, than bad news. 

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