EDITORIAL - Some improvement

That was a significant improvement for the Philippines in the latest Index of World Economic Freedom. From 107th among 177 countries last year, the Philippines is now ranked 97th in the index drawn up by the Washington-based Heritage Foundation together with The Wall Street Journal. The Philippines also ranked 17th among 41 countries in the Asia-Pacific.

Notable improvements in freedom from corruption and investment freedom pulled up the Philippines’ ranking, according to the report. Improvements were also noted in fiscal freedom and government spending.

The country, however, saw its scores drop in three of the 10 categories: business freedom, labor freedom and monetary freedom. Its scores were also unchanged in trade freedom, property rights and financial freedom. The report noted that the country’s efforts to attract foreign investment suffered from systemic inefficiency and heavy bureaucracy.

And while improving by 10 places is significant, being ranked 97th among 177 is still not much to crow about. For the 19th consecutive year, Hong Kong and Singapore ranked first and second overall in the latest index, reflecting the dynamism of two of Asia’s most prosperous economies. They were followed by Australia, New Zealand, Switzerland, Canada, Chile, Mauritius, Denmark and the United States. At the bottom was the Hermit Kingdom, North Korea.

While the report cited reform efforts in the Philippines, it called for more anti-corruption measures that must be institutionalized. Echoing assessments of other groups, the report noted the inefficiency of a judiciary that is susceptible to political interference and does not promote effective and transparent enforcement of the law.

The annual index, drawn up since 1995, indicates that recent reform efforts are starting to bear fruit and are being noticed outside the country. But it also shows that much more needs to be done, particularly in ensuring that the reforms will take root.