LOREN URGES REVIEW OF POLICIES AS RP COMPETITIVENESS DECLINES

Sen. Loren Legarda yesterday urged the government to undertake an immediate review of its economic policies following a survey released by the Asian Institute of Management (AIM) showing that Philippine competitiveness has fallen to 43rd among 57 countries.

"The release of this survey is very timely now that we are a week from the State of the Nation address of the President," Loren said. "For the sake of our people, the government should stop bragging about its successful development efforts. Instead it should review its policies and performance and take immediate action to correct them."

She pointed out that "of importance is infrastructure, which according to world economists, is the reason why we have failed to attract more direct foreign investments. Government inefficiency should be eliminated so that business and the people should have more confidence to engage in development activities."

Loren urged the people to watch and listen to the President's state-of-the-nation address on July 27 "and evaluate if they have truly felt the developments that this administration is claiming." In a survey released by the AIM last July 13, the Philippines ranked 43rd out of 57 countries in the 2009 World Competitiveness Yearbook compiled by the International Institute for Management Development (IMD).

The Philippines fared worse in four factors of competitiveness namely: economic performance, government efficiency, business efficiency, and infrastructure, report said. "We are the lowest ranked among ASEAN countries and despite accomplishments claimed by this administration, this survey will prove otherwise. We are the 56th in ranked in terms of infrastructure and 2nd to the last in Asia in terms of labor productivity," Loren deplored.

"What should also be underscored is the fact that we have the worst pupil-teacher ratio in high school and elementary levels where we ranked 57th and 56th respectively in the same survey. Education is a right for every Filipino. The National Statistical Coordination Board reported for 2008 that the net enrolment ratio dropped from 84.4% to 83.2%.

"This is the net enrolment ratio for the age group corresponding to the official school age in the elementary or secondary level to the population of the same age group in a given year. The number of students per classroom in the country is fifty while our neighboring countries have twenty students per classroom, "Loren said.

She asserted that "while education gets the biggest chunk in our budget next to debt servicing and internal revenue allotments, the budget is not enough to cope with the growing population that depends on public education. According to Social Watch, enrolment grows at an average of 2.5% annually while the education budget grows only at about 2% in real terms annually. "In the meantime that a lot of people are still debating about the system, let us get things moving by building thousands of classrooms and school facilities all over the archipelago and producing better teachers (better paid, too). We should also improve our facilities and provide more books and teaching aides from laboratories to computers.

"We should tap the private sector for creative joint ventures. We should also consider issuance of educational infrastructure development bonds to get the needed funds and jumpstart our effort." The 2009 World Competitiveness Yearbook also reported that from rank 40th last year the Philippines went down to 43rd this year.

"This is an indication that government efforts are insufficient and bolder and concrete actions must be taken by the government," Loren declared. "The SONA that PGMA will deliver on the 27th must show the real condition of the country. How can we move towards progress and development if we do not acknowledge our real condition? "

"Despite the reports of this government of its accomplishments in its more than seven years of administration, why is it that we ranked lowest in the four points of competitiveness - economic performance, government efficiency, business efficiency, and infrastructure?" Loren asked. "We can do better than this. The Filipinos deserve better. What is important is that government must acknowledge the real condition of the country. We have to consolidate all efforts to eliminate corruption which eats up more than 30% of our budget and re-evaluate the government priorities so as to have a balanced approach to the problems that our country is facing."