Up to the 1960s, the Philippines was a leader in Asia in terms of most aspects of human development. Ferdinand Marcos and the depredations perpetrated during his authoritarian regime derailed this development. Other countries in Asia sprinted ahead, and the Philippine diaspora of maids and blue-collar workers started.
Recovery from the dictatorship has been arduous. Today the country still lags behind much of the rest of the world in terms of national competitiveness and human development indicators. From 1996 to 2008, the country also lagged behind the rest of Asia in terms of governance, according to the World Bank.
In its eighth Worldwide Governance Indicators, the World Bank acknowledged progress made by the Philippines but noted that its scores fell below regional averages. The scores were based on rankings provided by think tanks, research firms and survey organizations around the world.
From 2007 to 2008, the Philippines’ scores improved in terms of controlling corruption and upholding the rule of law, but the figures were lower than the regional average. The difference was lowest in terms of political stability, with the country scoring 10.5 percent – a slight improvement from the 10.1 in 2007, but way below the regional average of 59.4 percent.
The country scored higher than the regional average in terms of regulatory quality, rating 51.7 percent against the region’s 42.1 percent. Government effectiveness was also rated higher than the regional average of 46.5 percent, although the country’s score slipped from 56.4 percent in 2007 to 55 percent last year. The country’s score in terms of voice and accountability also fell from 43.3 percent to 41.3 – lower than the regional average of 49.9 percent.
Studies have shown a correlation between good governance and economic development. It is no coincidence that Asia’s most successful economies are also the ones that do well in those governance indicators. The country was left behind by Asia’s so-called tiger economies, and even if their growth was halted by the financial crisis in 1997, the Philippines has not managed to catch up. Now the country is being left behind by Thailand and may be overtaken even by Vietnam. Complacency is a luxury the Philippines cannot afford. As in economic growth, the country can do better in terms of governance and must catch up with its neighbors.