Philippines improves ranking in global connectedness index

MANILA, Philippines - The Philippines has moved a few notches higher in the global connectedness rankings, but it will have to work harder to optimize the trade and economic benefits of having strong ties to the outside world.

According to a newly released study by logistics service giant DHL on the global connectedness of 140 countries, the Philippines ranked 58th in overall global connectedness in 2013, up six places from 64 over the last two years.

It earned an overall score of 49 over 100 last year, three more than it did in 2011, based on the findings of the DHL Connectedness Index 2014: Analyzing Global Flows and Their Power to Increase Prosperity.

Among the 10 member-countries of the Association of Southeast Asian Nations (Asean), the Philippines was in sixth place in global connectedness.

Singapore led the Asean bloc and came in third place overall globally in 2013, down from second place in 2011. Thailand came next (no. 19 overall in 2013 from 20 in 2011), followed by Malaysia (21 from 19), Vietnam (33 from 28), Cambodia (48 from 57), Brunei Darussalam (91 from 74), Indonesia (111 from 113), Laos (131 from 126), and Myanmar (135 from 138).

In depth of global connectedness (the depth of a country’s cross-border interactions), the Philippines was in 116th place last year, one point up from 2011. On the other hand, its breadth of global connectedness (breadth of geographic distribution) was much higher in 19th place, up five slots from its 2011 placement.

The third edition of DHL’s global connectedness index (GCI) warned, however, of a notable reversal in the decades-long worldwide trend toward connectedness, which is measured by cross-border flows of trade, capital, information, and people.

“Trade depth, as a distinct dimension of globalization, continues to stagnate and the overall level of global connectedness remains quite limited, implying that there could be gains of trillions of US dollars if boosted in future years,” it said.

Frank Appel, CEO of Deutsche Post DHL, noted the increased pressure on globalization and growing resistance to international trade negotiations. “I am convinced that a prosperous world needs more, not less integration,” he said.

He explained: “Global connectedness is a powerful engine for peace and prosperity. Cross-border flows of people, information, trade, and capital enhance intercultural understanding and tie nations together in sustainable economic relationships. Military conflict is far less likely to occur among connected countries and regions. And just as global connectedness contributes to a more peaceful world, it also drives economic opportunity. Its positive effects have lifted millions out of poverty and created a thriving middle class in many developing countries. ”

In the GCI, the Netherlands retained its top ranking as the world’s most connected country in 2013, and Europe was once again the world’s most connected region. All but one of the top 10 most globalized countries in the world were located in Europe, with Singapore as the one standout.

Besides the Netherlands and Singapore, other countries rounding off the top 10 were Ireland (no. 2), Belgium (4), Luxembourg (5), Switzerland (6), United Kingdom (7), Denmark (8), Germany (9), and Sweden (10).

North America was the second most globally connected region, with the United States as the most connected country in the Americas. Overall the US was ranked 23rd out of the 140 countries measured by the GCI.