Press Release
March 25, 2008

LOREN URGES TRANSPARENCY
END TO CORRUPTION IN GOV'T

ZAMBOANGA CITY, March 25 - Deploring the low state of the Philippines's global competitiveness, Senator Loren Legarda today (March 25) called for government transparency and an end to corruption in order to enhance the Philippines' global competitiveness.

Addressing the graduates of the Zamboanga State College of Marine Sciences and Technology, Loren said that "the government, with the help of the private sector, needs immediately to address several issues in order to improve our competitiveness" and thus accelerate national economic growth and reduce poverty.

She deplored that in the recent report in the World Economic Forum on global competitiveness, the Philippines ranked 71st among 125 countries, sinking from rank 48 in the WEF's Global Competitiveness Index (GCI) in year 2000. In contrast, Singapore occupied fifth, Malaysia, 26th, Thailand 35th and Indonesia 50th in the present GCI.

The current chair of the Senate Committee on Economic Affairs, Senator Legarda said that while the Philippines scored relatively higher in market efficiency, macro economy, as well as in higher education and training, it scored poorly in infrastructure, health and primary education, as well as in the capacity for innovation. She identified these factors as crucial in enhancing global competitiveness.

"Incidentally," Loren disclosed, "corruption was noted as the topmost problematic factor for doing business in the Philippines." She stressed, "corruption and red tape are the primary things that should be removed."

On the part of the government, Loren said, it needs to address the issues of good governance, peace and order, infrastructure development, business and educational reforms, agricultural credit and financing, industry, small and medium enterprises, environment, human capital, competition and market reforms, mining and social concerns.

On the part of business, she affirmed, "good corporate governance is likewise expected." While she observed that in general business organizations in the Philippines have done well, they should exercise their economic freedom "within a framework of effective accountability."

She urged business to improve its innovativeness. She pointed out that as stated by the WEF, "it was in the areas of technological readiness, business sophistication and capacity for innovation where the Philippines clearly has lagged behind, thus weakening our over-all ability and competence to strengthen and improve our competitiveness."

She also appealed to the educational institutions "to equip our students and the younger generation with the necessary knowledge and skills to enable them to adapt to the changing times, thus further boosting the potentials of our human resources, and essentially our industries, towards becoming more competitive and productive."

She asserted that 'the future of the Philippine economy, or any economy for that matter, will no longer be based on natural resources or production costs, but rather on knowledge. Knowledge-based systems place a premium on higher set of skills of our workers which further translates to higher production value."

Loren praised the Zamboanga State College of Marine Sciences and Technology for its role in advancing the fisheries and aquaculture industry, thus preserving the country's marine resources and maintaining the country's food supply from this sector.

Despite this, she bewailed that Philippine aquaculture production has fallen steadily and quite significantly from fourth place in 1985 to 12th place today. "This decline is what we hope to reverse through the collective effort by the government, the private business and through research and development by the academe."

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