EDITORIAL - State of denial

It is no coincidence that most of the prosperous economies also have professional bureaucracies and the least red tape. They also rank high in international comparisons of ease in doing business and in national competitiveness. It is also no coincidence that most of the top performers in these areas also rank high in terms of transparency.

It comes as no surprise that the Philippines, which over the years has slipped in ranking in all those areas, was rated the third worst in a recent survey of 12 Asian countries and territories in terms of bureaucratic efficiency. The survey, taken among 1,373 expatriate business executives in Asia by the Political and Economic Risk Consultancy, noted that inefficiency and red tape deterred investment. This is consistent with the country’s record in attracting foreign direct investment. In the past 10 years, FDI levels in the Philippines have fallen way behind those of its Southeast Asian neighbors, notably Singapore, Malaysia, Thailand and Vietnam.

The latest survey ranked the Philippine bureaucracy ahead of only India and Indonesia. Other factors in those two countries, however, have made them attract more FDI than the Philippines in recent years. Leading the PERC survey on the bureaucracy was perennial top performer Singapore, with Hong Kong close behind. Thailand was ranked third, followed by South Korea, Japan, Taiwan, Malaysia, China and Vietnam.

Commenting on the survey, a Malacañang official said the Philippines could not have attracted FDI if the results were accurate. The outgoing administration is simply acting true to form in being in a state of denial about the quality of the bureaucracy it is leaving behind. This is an administration, after all, that sees nothing wrong with appointing the President’s manicurist and gardener to key government positions, or in issuing a slew of midnight appointments as going-away presents to Arroyo loyalists.

The next administration cannot afford to have the same mindset. The country has a lot of catching up to do if it wants enough job-generating investments, and citizens need efficient and honest public service from a professional bureaucracy.