Press Release
January 15, 2008

RP's falling competitiveness worrisome, says Mar

Senator Mar Roxas has expressed concern over the dismal results of international surveys showing the Philippines' "falling economic competitiveness."

Last year alone, Roxas, chairman of the Senate committee on trade and commerce, said the Philippines ranked 49th in terms of overall competitiveness among 61 industrialized and emerging economies surveyed by the Swiss-based International Institute for Management Development.

"Philippine competitiveness is still falling. In the World Bank's most recent yearly survey of 'ease in doing business,' the Philippine ranking slipped by five notches -- from 121st in 2005 to 126th of 175 countries in 2006," said Roxas, in a speech before the Foreign Correspondents' Association of the Philippines.

Citing the same World Bank survey, Roxas said Thailand ranked 18th, Malaysia 25th, Taiwan 47th. Even Vietnam, he said, ranked higher than the Philippines at 104th. Only Indonesia, among the Asian countries, lagged behind the Philippines at 135th.

"What word comes to mind when asked, What do people think about the Philippines today? One Filipino word best describes the country's condition today: Sayang. Its closest translation in English: What a waste. A word that connotes regret, forlornness over what could be and could have been," he said.

Roxas said Thailand passed the Philippines by in individual incomes in 1981. Now, he said, the average Thai is at least twice as rich as the average Filipino. Malaysians are almost four times, and Singaporeans almost 20 times richer.

"Meanwhile, Indonesia and Vietnam are breathing down our necks," he added.

Roxas attributed the day to day erosion of the people's trust in the institutions to an increasingly "dysfunctional political system."

This, he said, is the most glaring source of "sayang" in the society today.

Roxas cited the latest Social Weather Stations survey that shows public satisfaction with all top four government institutions significantly declining compared to the previous quarter.

From a net positive 32 rating in September, the Senate declined 13 points, to only +19 in December, he lamented.

The House of Representatives' net satisfaction score fell from +18 to +3. Even the Supreme Court dropped from +24 in September to neutral net +5 in December.

"This is more glaring, given the fact that the tribunal has enjoyed double-digit positive approval rating over the past four quarters," he said.

The Cabinet went from neutral net +1 to -9, a steep plunge that reflects the President's own negative trust ratings, he said.

"The administration has very concrete opportunities to arrest this trend of mistrust and disillusionment," Roxas said.

"I fear that a deepening estrangement from politics has made it easier for government - as the most organized and powerful entity - to do as it wishes, having long abandoned the need to have public opinion on its side."

He said when government no longer cares about public opinion, "it begins to test the limits of abuse and malfeasance."

Corruption, he said, persists in almost all levels of the bureaucracy, as bribery becomes a tool to get foreign loans and local projects signed, sealed and delivered even without public bidding.

"Smuggling-from onions to guns, from clothes to hot cars-continues to undermine the viability of legitimate growers, planters manufacturers and factory owners," Roxas said.

"The truth is, we have become incrementalists! A little bit here and a little bit there. No wonder we have fallen into a rut, unable to pull ourselves out of our misery. We want change - but not too much. We want order and more security. but not too much.. better tax collection.. but not too much. More traffic management and open sidewalks.. but not too much. The result: We grow. But not too much. Incrementalists!" Roxas pointed out.

"I love this country: I'm here for life; and I intend to do all I can to try and help reverse this situation," Roxas said.

"For this I believe. If we are to succeed in 2008, and beyond, the status quo in the Philippines today - this perception of sayang - is simply unacceptable. If we are to rise as a nation, we must build from past regrets and begin to work with our eyes set on the future. Then, and only then, can real, meaningful change happen," Roxas said.

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