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WORLD BANK SAYS RED TAPE IS HOLDING THE PHILIPPINES BACK

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has advised the Philippines to speed up the completion of reforms intended to make its environment more conducive to business.

The recommendation came following the release of its survey results on “Doing Business 2009″ indicating Philippine overall ranking in terms of ease in conducting business dipping by four notches to 140 out of 181 countries from last year’s 136.

The country’s ranking, however, actually moved down by one notch with the addition of three countries in the survey –Bahamas, Qatar and Bahrain.

“We should make these reforms happen –and soon,” IFC Resident Representative Jesse Ang noted, referring to reforms underway including establishing a Web-based registry system, a credit information system to reduce lending risks and implementing the anti-red tape law to ensure speed and transparency in government transactions with the public.

WB Country Director Bert Hofman explained that less cumbersome regulations bring small microenterprises into formal sector and enables increased access to finance for their expansion.

“Research indicates that countries with burdensome regulations tend to have a larger informal sector, higher unemployment, and slower rates of new business formation,” he noted.

For his part, National Competitiveness Council private sector co-chair Cesar B. Bautista expressed confidence their initiatives undertaken to improve local business environment can increase the country’s ranking next year.

The number of days for business was further reduced from 58 to 52 days to 39 days, Trade Undersecretary Zenaida Maglaya noted.

Aside from this measure, Maglaya said 15 National Economic, Research and Business Assistance Center (NERBAC) have been launched throughout the regions.

She said those in Cebu, Davao and Pampanga are fully operational focusing on knowledge management, investment promotion and business licensing, while most newly launched NERBACs are handling business licensing activities.

Likewise, the Board of Investments (BOI) expanded its One Stop Action Center into an Investments Servicing Group to provide the crucial, expanded and upgraded services to a broad range of investors with one department acting as the NERBAC-National complementing the NERBAC regional centers, she added.

Maglaya said the completion of Philippine Business Registry connectivity requirements for Security and Exchange Commission, Social Security System, Taguig, Navotas, San Fernando City of Pampanga and Gen. Santos City is ongoing.

This year’s IFC Doing Business survey measures the following indicators: starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.

The Philippines scored the lowest in starting and closing a business at 155 and 151, respectively.

It rated the highest in terms of trading across borders that examined the number of documents, number of days and cost to export and import.

For the third year in a row, Singapore ranked first in the overall ranking in terms of ease in doing business, followed by the New Zealand and United States.

Source: Adelaida Bulaon