Issues and Opportunities on Philippine Competitiveness : An Overview

1. Issues and Opportunities on Philippine Competitiveness: An Overview Ambassador Cesar B. Bautista Co-Chair, Core Group on the National Competitiveness Summit National Competitiveness Summit 06 October 2006

2. COMPETITIVENESS: A Shared Responsibility The Public-Private Partnership Approach

3. The Philippines is faced with a challenging situation World Competitiveness Yearbook (IMD) #49 out of 61 Economic Performance Government Efficiency Business Efficiency Infrastructure Global Competitiveness Report (WEF) #77 out of 117 Macroeconomic Stability Openness and Market Size Institutions Business Sophistication Good Market Efficiency Labor Market Efficiency Financial Market Efficiency Infrastructure Personal Security Basic Human Capital Advanced Human Capital Technological Readiness Innovation • The challenge is not merely about improving ratings but rather in creating a better environment for business and our people Doing Business (WB, 2007) #126 out of 175

4. In addressing this challenge, we have to go back to the basic factors Firm strategy, structure & rivalry • Human Resources • Management • Access to Financing • Infrastructure • Transaction costs and flows • Energy Factor Conditions Demand Conditions Related & supporting industries The Determinants of National Advantage “Porter Diamond”

5. …and gear them up to address the challenges facing the country • Competitive Human Resources • Efficient Public and Private Sector Management • Effective Access to Financing • Improved Transaction Costs and Flows • Seamless Infrastructure Network • Energy Cost Competitiveness and Self-Sufficiency

6. Take-off References • Medium Term Philippine Development Plan 2004 - 2010 • Philippine Export Development Plan 2005 – 07 • National Export Congress Scorecards • Philippine Development Forum • 31st Philippine Business Conference (PCCI) • 2006 National Manpower Summit • 2006 Roadmap for Export Competitiveness of Services Sectors (EO 372, S. 2004) • EO 395, S. 1997 • RA 9013 • EO 428, S. 2005 • ADB Country Report • AmCham Investment Climate Improvement Report • Current Efforts - Services Coalition, Private sector efforts (e.g. PQAF, ECOP, MAP, PCCI, LGU-based initiatives etc.) • The Core Group directions were built upon the past and current efforts of private sector organizations, partner development agencies and government institutions

7. As basis for a sustained Competitiveness Campaign • What you measure is what you improve – the need for continuous improvement • Target: Within the Top Third in 2010 • Wider involvement from sectors • A mindset change within the citizenry and the government sector

8. The Draft Action Agenda for Competitiveness • To be pursued by the private sector champions and by the senior public officials • Not a wishlist but an action list that is defined by timeframes, responsible persons and priorities • Basis for prioritization • Nice to have • Good to have • Must have…NOW

9. Action Agenda and Quick Wins • Hasten the mindset change for Competitiveness • Quick wins – specific actions to achieve measurable benefits to certain sectors

10. Opportunities presented by a Competitiveness mindset • Services as the biggest winner • Strong position of relevant industries and agriculture • More jobs, lower poverty rate • Reverse the brain drain (IRELAND model)

11. The Competitiveness Summit is a start of a process • Way forward… • Structure to implement the action agenda • Continuous revisiting – how to progress, not merely to monitor • White paper – to determine impact on top sectors • Resources to sustain

12. Thank You