Palace sees improvement of Phl economic freedom ranking

MANILA, Philippines - Malacañang is optimistic that the Philippines’ economic freedom ranking would improve due to the government’s reform efforts.

Presidential spokesman Edwin Lacierda said yesterday the government is now working to improve the business environment in the country. 

“The Aquino administration has taken steps, among others, to streamline the bureaucracy, level the business playing field, improve the business registration system, and institute zero-based budgeting-efforts that show our commitment to improve the business and economic climate in the country,” Lacierda said in a statement. 

“We can reasonably expect that when the efforts of the Aquino administration are factored into their next report, the Philippines will rank higher,” he added. 

Lacierda noted that the 2011 report was based on 2009 figures covering the term of President Gloria Macapagal-Arroyo. 

The Philippines’ ranking in this year’s economic freedom survey of the World Bank slipped to 89th place from 76th place previously. The country’s score fell to 6.46 from 6.77, the report released last Wednesday showed. 

The Economic Freedom of the World report is produced by the Fraser Institute, a Canada-based public policy think tank, in cooperation with independent institutes in 85 nations and territories.

Economic freedom is gauged using five different indicators, namely size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally and regulation of credit, labor and business.

This year’s report surveyed a total of 141 countries worldwide. 

The report said the average economic freedom score over the past two years dropped to 6.64 in 2009 from 6.74 in 2007.

Fred McMahon of Fraser Institute said governments worldwide are adopting “perverse regulations” in response to the debt crisis experienced by the US and Europe. 

He said such policy moves would have huge negative implications on the economic freedom and financial recovery.