Becoming More Competitive

GUILLERMO M. LUZ Private Sector Co-Chairman 26 February 2013

Becoming More Competitive

Report 2012 Rank 2011 Rank Change ASEAN Data

Collection Period

Next Report

Source

Global Competitiveness Index 65/145 75/142 +10 6 of 8 Q2 9/13 WEF

Ease of Doing Business 138/185 136/183 0 8 of 9 Q2 10/13 IFC

World Competitiveness Report 43/59 41/59 (2) 5 of 5 Q1 5/13 IMD

Corruption Perceptions Index 105/179 129/183 +24 5 of 10 12/13

Transparency International

Economic Freedom Index 97/177 107/179 +10 5 of 9 1/13 Heritage

Foundation

Global Information Technology Report 86/142 86/138 0 6 of 7 4/13 WEF

Travel & Tourism Report n/a 94/139 n/a 7 of 8 11/13 WEF

Global Innovation Index 95/141 91/139 (4) 6 of 9 7/13 WIPO

Country Brand Index 95/118 78/113 (17) 8 of 8 10/13 FutureBrand Logistics Performance Index 52/155 44/155 (8) 4 of 9 11/13 World Bank

Failed States Index 56/177 50/177 + 6 6 of 7 8/13 Foreign Policy

Prosperity Index 67/142 66/110 ------ 6 of 8 10/13 Legatum Inst.

GLOBAL COMPETITIVENESS REPORT CARD

Global Competitiveness Report ASEAN ranking, 2009 - 2012

Over-all rankings COUNTRIES 2012 2011 2010 2009

SINGAPORE 2 2 3 3

MALAYSIA 25 21 26 24

BRUNEI DARUSSALAM 28 28 28 32

THAILAND 38 39 38 36

INDONESIA 50 46 44 54

PHILIPPINES 65 75 85 87 VIETNAM 75 65 59 75

CAMBODIA 85 97 109 110

l Other ASEAN Countries not included in the Survey: Laos & Myanmar

Global Competitiveness Report Philippines, 2011 & 2012

12 PILLARS

PILLARS 2012 2011 Change 1st pillar: Institutions 94 117 + 23

2nd pillar: Infrastructure 98 105 + 7

3rd pillar: Macroeconomic environment 36 54 + 18

4th pillar: Health and primary education 98 92 (6)

5th pillar: Higher education and training 64 71 + 7

6th pillar: Goods market efficiency 86 88 + 2

7th pillar: Labor market efficiency 103 113 + 10

8th pillar: Financial market development 58 71 + 13

9th pillar: Technological readiness 79 83 + 4

10th pillar: Market size 35 36 + 1

11th pillar: Business sophistication 49 57 + 8

12th pillar: Innovation 94 108 + 14

Ease of Doing Business Report ASEAN ranking, 2009 - 2013

COUNTRIES 2013 (185

economies)

Adjusted 2012 (183

economies)

2011 (183

economies)

2010 (183

economies)

2009 (181

economies)

SINGAPORE 1 1 1 1 1

MALAYSIA 12 14 23 23 20

THAILAND 18 17 16 12 13

BRUNEI DARUSSALAM 79 83 86 96 88

VIETNAM 99 99 90 93 92

INDONESIA 128 130 126 122 129

CAMBODIA 133 141 138 145 135

PHILIPPINES 138 136 134 144 140 LAOS 163 166 163 167 ------

Ease of Doing Business Report Philippines, 2009 – 2013, by indicator

Indicators 2013 (185

economies)

Adjusted 2012 (183

economies)

2011 (183

economies)

2010 (183

economies)

2009 (181

economies)

OVERALL RANKING 138 136 134 144 140

Starting a business 161 158 155 162 155

Dealing w/ construction permits

100 101 98 111 105

Getting electricity 57 53 57 - -

Employing Workers - - 115 126

Registering Property 122 120 109 102 97

Getting Credit 129 127 116 127 123

Protecting Investors 128 124 131 132 126

Paying Taxes 143 136 127 135 129

Trading across borders 53 56 54 68 58

Enforcing contracts 111 109 114 118 114

Resolving Insolvency 165 166 161 153 151

World Competitiveness Report ASEAN Ranking, 2011 - 2012

Country 2012 ranking

2011 ranking

change

SINGAPORE 4 3 -1

MALAYSIA 14 16 + 2

THAILAND 30 27 -3

INDONESIA 42 37 -5

PHILIPPINES 43 41 -2

World Competitiveness Report

2012 RANKING 2011 RANKING CHANGE

Econ Performance

SINGAPORE 9 5 -4

MALAYSIA 10 7 -3

THAILAND 15 10 -5

INDONESIA 32 32 0


Gov’t Efficiency

SINGAPORE 2 2 0

MALAYSIA 13 17 +4

THAILAND 26 23 -3

INDONESIA 28 25 -3

PHILIPPINES 32 37 +5

ASEAN 2012 ranking

(out of 176 countries

and territories)

2011 ranking

(out of 183 countries

and territories) change

SINGAPORE 5 5 0

BRUNEI 46 44 (2)

MALAYSIA 54 60 + 6

THAILAND 88 80 (8)

PHILIPPINES 105 129 + 24

INDONESIA 118 100 (18)

VIETNAM 123 112 (11)

CAMBODIA 157 164 + 7

LAOS 160 154 (6)

MYANMAR 172 180 + 8

Corruption Perceptions Index ASEAN Ranking, 2011 - 2012

Indicator Sub indicator 2013

(out of 179)

2012 (out of 177)

CHANGE

Rank Score Rank Score Rank Score

RULE OF LAW

Property Rights 94 30 97 30 +3 same

Freedom from

Corruption

127 26 136 24 +9 +2

LIMITED

GOVERNMENT

Fiscal Freedom 88 79.3 86 79.1 -2 +0.2

Government

Spending

10 90.2 19 89.7 +9 +0.5

REGULATORY

EFFICIENCY

Business Freedom 135 53.1 135 54.3 same -1.2

Labor Freedom 128 51.0 124 51.7 -4 -0.7

Monetary Freedom 73 76.6 74 77.1 +1 -0.5

OPEN MARKETS

Trade Freedom 93 75.5 93 75.5 same 0

Investment Freedom 98 50.0 117 40.0 +19 +10.0

Financial Freedom 69 50.0 72 50.0 +3 0

Economic Freedom Index Philippines, 2012 - 2013

Economic Freedom Index ASEAN Ranking, 2012 - 2013

Country 2013 Score

(out of 179)

2012 Score

(out of 177) Change

SINGAPORE 2 2 No change

MALAYSIA 56 53 -3

THAILAND 61 60 -1

CAMBODIA 95 102 +7

PHILIPPINES 97(5th) 107(5th) +10

INDONESIA 108 115 +7

VIETNAM 140 136 -4

Global Information Technology Report ASEAN ranking, 2011 - 2012

Country 2012 Score 2011 Score Change

SINGAPORE 2 2 No change

MALAYSIA 29 28 -1

THAILAND 77 59 -18

INDONESIA 80 53 -27

VIETNAM 83 55 -28

PHILIPPINES 86 86 No change

CAMBODIA 108 111 +3

Travel and Tourism Report ASEAN ranking, 2011

Country 2011 Score

(out of 139)

SINGAPORE 10

MALAYSIA 35

THAILAND 41

BRUNEI 67

INDONESIA 74

VIETNAM 80

PHILIPPINES 94 CAMBODIA 109

Global Innovation Index ASEAN ranking, 2011 - 2012

Country 2012 Score

(out of 141)

2011 Score

(out of 139) Change

SINGAPORE 1 3 +2

MALAYSIA 38 31 -7

BRUNEI 46 75 +29

THAILAND 56 48 -8

VIETNAM 76 51 -25

PHILIPPINES 95 91 -4 INDONESIA 100 99 -1

CAMBODIA 119 111 -8

LAOS 138 n/a n/a

Logistics Performance Index ASEAN ranking, 2011 - 2012

Country 2012 Score

(out of 155)

2011 Score

(out of 155) Change

SINGAPORE 1 2 +1

MALAYSIA 29 29 No change

THAILAND 38 35 -3


VIETNAM 53 53 No change

INDONESIA 59 75 +16

CAMBODIA 101 129 +28

LAOS 109 118 +9

MYANMAR 129 133 +4

2013 – 14 Plan o Continuous tracking of global reports and

inclusion in performance evaluation systems

o Ease of Doing Business improvements

o Regional Competitiveness Committees

o Industry Roadmaps

o National Competitiveness Assessment and Plan

Continuous tracking, improvements, performance evaluation in …

WEF – Global Index

Governance and Bureaucracy *

Infrastructure *

Macroeconomic Management *

Education & Health *

Labor Market

Technological Readiness **

Innovation **

IFC Doing Business Report

Starting a Business *

Construction Permits

Credit information *

Protecting Investors *

Enforcing Contracts

Resolving Insolvency *

Ease of Doing Business Improvements – Gameplan for Competitiveness

o Ease of Doing Business task force working with appropriate

government agencies (SEC, BIR, SSS, PhilHealth, Pag-Ibig, others)

o Close coordination with IFC Manila and Washington DC offices via

videoconference calls and meetings

o More information directly provided by government agencies to IFC

o More interaction with private audit and law firms for

recommendations

o Closer coordination with Philippine Embassy in Washington DC (also

in touch with IFC Washington office)

Regional Competitiveness Committees

o Creation of Regional Competitiveness Committees composed of

public and private sectors

o Template of indicators built so regions can track their

competitiveness for comparison with national and international

regions

o New platform for technical training and capacity-building (e.g.,

urban planning, risk assessment, investment promotion, etc.)

o 15 committees as of January 2013

Industry Roadmaps

• As competitive environment is created, industry and individual firms are drivers of growth and wealth creation.

• DTI will invite industries to prepare 5 - 10 year industry roadmaps

• Roadmaps should describe – – State of industry today – Other country competitors – Potential of industry for value and employment growth – Projected investments by industry players – Policy environment required by industry (e.g., regulatory,

infrastructure, human resources, financial, etc.)

Academic Network

• Government and Private Sector sometimes do not have access to the same briefing materials prior to attending international meetings

• Objective is to build a systematic process for academic institutions and think tanks to contribute to policy formulation

• Academic Network will receive a list of priority sectors for study and analysis in the subjects of (a) Competitiveness, and (b) APEC

• Studies will be distilled from full papers to executive summaries and abstracts to 3-5 page policy memos for decision-makers

• Academic symposia for selected topics will be organized

Working Groups

• 11 existing Working Groups focused on key problems – Infrastructure – Energy and Power – Education and Human Resources – Budget Transparency – ICT Governance Framework – Performance Governance System – National Single Window – Business Permits and Licensing System – Philippine Business Registry – Judiciary – Anti-Corruption

• New Working Group has been created (in November 2012) – Agribusiness and Trade Logistics

National Competitiveness Assessment and Plan

o Annual assessment of performance indicators

o Global performance indicators linked to 6-year

Philippine Development Plan

o Emphasis on execution and delivery

o Creation of Long-Term Strategic Plan

o Preparation of Annual Operating Plans

Building Blocks

National Competitiveness Plan

Working Groups

Industry Roadmaps

Regional Competitiveness

Committees

Academic Network

NCC PERFORMANCE SCORECARD 2011 - 2012

EDUCATION AND HUMAN RESOURCES

PROJECT STATUS REMARKS

1. Labor-Market Intelligence

PhilJobsNet - preparation of periodic reports to track labor market needs for matching with educational and training programs of schools and vocational training institutes.

Ongoing (DOLE)

2. K to 12 Education Program

K - 12 Launched. Pilot testing of Senior High School Modeling program in 33 educational institutions

Ongoing. Full program implemented in 2016 and 2017 (DepEd)

3.Technical-vocational Training

BPAP has launched new 21-unit course with CHED approval. New Philippine Qualifications Framework (PQF) has been launched

Ongoing. First full year of operation. (BPAP, CHED, TESDA, DepEd)

NCC PERFORMANCE SCORECARD 2012

EDUCATION AND HUMAN RESOURCES


4. Reintegration of Overseas Filipinos (OFs) into Philippine Society

BaLinkbayan - Commission on Filipino Overseas (CFO) and DTI have partnership to create DTI Help Desk for Overseas Filipinos. CFO has created website that acts as ‘gateway” to link valuable business and investment information from different government agencies for OFs.

Projects set for launching in Feb and June 2013 at OF Conferences (CFO)

5. Benchmarking and Compliance with International Accords on Education (MRAs)

Mapua is first school to be accredited for Washington Accord. Philippines to be accredited for Washington Accord.

June 2013 (CHED and Philippine Technological Council, PTC)


INFRASTRUCTURE


1. Removal of overtime charges for Customs, Immigration, and Quarantine services

Overtime charges against private entities at airports, seaports by DA Quarantine Services discontinued by Sec. Alcala (August 24, 2012).

Done (DA)

Economic Cluster adopts 24/7 shifting schedule and approves budget for overtime services rendered by the government employees at international airports (August 3, 2012).

Done (EDC)

Department of Finance issues memorandum to Bureau of Customs discontinuing charging of overtime pay to private entities.

Done (DOF)

2. Common Carriers Tax

CCT Bill (for passengers) approved by Congress

Cargo CCT still to be done (DOT, DOF, Congress)

NCC PERFORMANCE SCORECARD 2012 INFRASTRUCTURE

PROJECT STATUS REMARKS 3. Decongestion of Port of Manila and shift to Batangas and Subic Ports

The Office of the President approved the recommendation for 50% discount of the rates on port charges (Dues and Dockage) on favour of vessels calling at the Batangas International Port for a period of one year. (August 21, 2012)

Batangas remains <5% utilized.

The Philippine Ports Authority issued a Memorandum Circular No. 18- 2012 reflecting 50% discount on rates in Batangas International Port in favour of calling vessels. Discount took effect on October 8, 2012 and will run within one year period. (September 7, 2012)

4. Airports: Category 2 A technical working group review was conducted. FAA said 23 critical elements have to be addressed before the Philippine aviation status can be restored to Category 1.

The Civil Aviation Authority of the Philippines has addressed 65 among the 85 concerns.

Audit to take place 18 February 2013 Audit report Pending.


INFRASTRUCTURE


5. Completion of NAIA Terminal 3

NAIA Terminal 3 to be fully operational by end-2013.

Agreement to be signed between Government and Takenaka (DOTC)

PERFORMANCE GOVERNANCE SYSTEM


1. Balanced Scorecard

6 Agencies Ongoing 1. DPWH 2. DOH 3. DOTC 4. DepEd 5. PNP 6. BIR

First 6 agencies at or approaching Level 3 of 4. Next review is March 19.

NCC PERFORMANCE SCORECARD 2012 PERFORMANCE GOVERNANCE SYSTEM


Balanced Scorecard…cont.

Additional Agencies Started 1. DTI 2. DSWD 3. DND / AFP 4. Civil Service Commission

Agencies at Level 2 or 3. Next review is September 2013.

Expanded/introduced good governance practices among LGUs nationwide.

The Governance Commission for GOCCs/GFIs (GCG) has come up with own strategy map of performance scorecards for all GOCCs/GFIs under its jurisdiction.

Balanced Scorecards for all by end-2013 (GCG)

2. Corporate Governance Alignment of Corporate Governance Compliance Scorecard with ASEAN questionnaire.

For completion in 2013 (SEC, PSE)

NCC PERFORMANCE SCORECARD 2012 PERFORMANCE GOVERNANCE SYSTEM


Corporate Governance…cont.

The ASEAN questionnaire has been put together by a panel under the auspices of the ASEAN Capital Market Forum. We are beginning to use the ASEAN questionnaire in giving CG Compliance Scores to PH publicly listed corporations (PLCs).

Consolidation / harmonization of various Performance Monitoring and Reporting Systems of government (e.g., Organizational Performance Indicator Framework, Strategic Performance Monitoring System) to create unified Performance Monitoring and Reporting System.

AO25 created Inter-agency Task Force. EO 80 adopts Performance-Based Incentive (PBI) System for Government Employees (DBM)


TRANSPARENCY IN BUDGET DELIVERY


Electronic Transparency and Accountability Information for Lump Sum Funds (eTAILS)

Web-based application to streamline and automate processing, releasing and tracking of lump-sum funds

Phase 1 completed (dbm.gov.ph)

Phase 2 in progress

Transparency of National Budget

BudgetngBayan.com website

Launched August 2012. Customer satisfaction survey underway (DBM)

INFORMATION AND COMMUNICATIONS TECHNOLOGY


ICT Governance Framework - “central authority” to effectively coordinate and implement national ICT projects and other ICT-related initiatives.

MITHI (Medium Term Information & Communications Technology Harmonization Initiative) launched Q1 2013

Central coordination of IT spending in 2014 onwards (DBM, ICTO)

NCC PERFORMANCE SCORECARD 2012 PHILIPPINE BUSINESS REGISTRY

PROJECT STATUS REMARKS Philippine Business Registry

Online registration of new businesses

Launched January 27, 2012 (DTI)

Since 1 March 2012, entrepreneurs able to register business names (DTI), obtain TIN (BIR), and Employer Registration Numbers (SSS, PhilHealth, and Pagibig) online from kiosks

System works best with single props and uses kiosks.

SEC module launched 12 March 2012, allows SEC registered companies to get SSS, PhilHealth and Pagibig Employers Registration Numbers through SEC kiosk

19 March 2012 - Quezon City connected to PBR, first LGU to be fully linked to the system. The 2nd LGU to be connected is Valenzuela City.

NCC PERFORMANCE SCORECARD 2012 BUSINESS PERMITS & LICENSING SYSTEM (BPLS)


1. Business Permits and Licensing System (BPLS) Streamlining Project

As of December 2012, a total of 823 LGUs are reported to have streamlined their BPLS. All 1,634 LGUs nationwide are targeted to be completed by 2016 (DILG, DTI)

Customer satisfaction survey and field visits are being conducted to check compliance (NCC)

2. eBPLS

24 July 2012 - DTI, DILG and DOST sign MOA to jointly undertake development and implementation of a framework that will define the activities to be undertaken to promote the use of ICT in ensuring the efficient and effective dispensation of the business permitting processes of LGUs.

Ongoing

3. Business Permits and Licensing System Customer Satisfaction Survey

In 2012, survey of 800 businessmen from 178 cities and municipalities. 2013 survey being completed this week.

63% report they are satisfied with BPLS in their LGUs. 23% are somewhat satisfied. 4% are somewhat dissatisfied and 3% are dissatisfied.

NCC PERFORMANCE SCORECARD 2012 BUSINESS PERMITS & LICENSING SYSTEM (BPLS)


ANTI-CORRUPTION


1. 2012 Annual Enterprise Survey on Corruption

Return of annual survey of businesses on experience and perception of corruption in Metro Manila, Angeles, Cavite-Laguna-Batangas, Iloilo, Cebu, CDO-Iligan, Davao in partnership with AusAID, TAF, Integrity Initiative, and SWS.

Government performance improves from 2009 to 2012 but private sector practice remains unchanged.


ANTI-CORRUPTION


2. Integrity Initiative

About 1500 companies and 30 national government agencies (among others, DPWH, DOF, DBM, DOTC, DTI and the Supreme Court) have already signed the pledge.

Pledge moves to Assessment and Training

JUDICIARY


1. Rules of Court

2. FRIA

Pilot rules to speed up court processes being readied (SC) IRR nearing completion. Committee met February 8 and hopes to finalize IRR in March (SC)

Pilot courts may be tested in 2013. IRR has trailed passage of law by several years.

AGRIBUSINESS AND TRADE LOGISTICS


Agribusiness and Trade Logistics

Three pilot projects under development:

1. Trade logistics: Gensan to Batangas port (DOTC,

DPWH) 2. Anti-Smuggling (BOC) 3. Agri Credit (DA)

Cooperation Agreement between NCC and IFC signed. Project in very early stage.

2013 Ease of Doing

Business Ranking WORLD RANKING OF ASEAN COUNTRIES PER INDICATOR

Country

Starting a

Business

Dealing w/

Constructio

n Permits

Getting

Electricity

Registerin

g Property

Getting

Credit

Protecting

Investors

Paying

Taxes

Trading

Across

Borders

Enforcing

Contracts

Resolving

Insolvency

Singapore 1 4 2 5 36 12 2 5 1 12 2

Malaysia 12 54 96 28 33 1 4 15 11 33 49

Thailand 18 85 16 10 26 70 13 96 20 23 58

Brunei 79 135 43 29 115 129 117 22 40 158 46

Vietnam 99 108 28 155 48 40 169 138 74 44 149

Indonesia 128 166 75 147 98 129 49 131 37 144 148

Cambodia 133 175 149 132 115 53 82 66 118 142 152

Philippines 138 161 100 57 122 129 128 143 53 111 165

Laos 163 81 87 138 74 167 184 126 160 114 185

37

Indicator

Indicator Rank

(2013)

Target Indicator Ranking (2014)

Indicator Ranking Variance

New World Ranking ,

single variable (basis: 138)

World Ranking Variance

Starting A Business* 161 19 +142 117 +21

Dealing with Construction Permits

100 17 +83 127 +11

Getting Electricity 57 34 +23 134 +4

Registering Property 122 21 +101 126 +12

Getting Credit* 129 1 +128 109 +29

Protecting Investors* 128 6 +122 112 +26

Paying Taxes 143 70 +73 131 +7

Trading Across Borders 53 3 +50 128 +10

Enforcing Contracts 111 37 +74 130 +8

Resolving Insolvency* 165 58 +107 117 +21

Summary

38

ASEAN Countries World

Ranking # of

Procedures Time (days)

Cost (% per capita)

Paid-in Min. Capital

Ease of starting a business

Singapore 4

3

3

0.6

-

0.03

Malaysia * 54

3

6

15.1

0.0

0.31

Thailand 85

4

29

6.7

0.0

0.42

Laos 81

6

92

7.1

-

0.41

Vietnam 108

10

34

8.7

-

0.49

Brunei Darussalam 135

15

101

10.7

-

0.60

Indonesia 166

9

47

22.7

42.0

0.76

Philippines 161

16

36

18.1

4.8

0.75

Cambodia 175

9

85

100.5

28.5

0.84

39

Starting a Business 2013 Report 2014 Report Movement/ Change in rank

Number of Days 36 6 -30 days

Number of Steps 16 3 -13 steps

Min Paid In Capital 4.8 0

Effect in indicator ranking

161 19 142

Effect in world ranking

138 117 21

Score Simulation per Indicator

Recommendation Agency

• Reduce number of days • Reduce number of steps • Implement Online Business Registration • Consider removing Min. Paid in Capital

SEC, QC, SSS, PBR, BIR, Philhealth, Pag-ibig SEC/Congress 40

No. Procedure Time to

Complete Associated Costs

1 Verify and reserve the company name with the Securities and Exchange Commission (SEC)

1 day PHP40

2 Deposit paid-up capital in the Authorized Agent Bank (AAB) and obtain bank certificate of deposit

1 day no charge

3 Notarize articles of incorporation and treasurer's affidavit at the notary

1 day PHP500

4 Register the company with the SEC and receive pre-registered Taxpayer Identification Number (TIN)

3 days

PHP 1,926.44 filing fee + PHP 19.26 legal research fee +

PHP 500 By-laws + PHP 150 for registration of stock and

transfer book (STB) + PHP 320 STB + PHP 10 legal

research fee for the By-laws

5 Obtain barangay clearance 1 day PHP 500

6 Pay the annual community tax and obtain the community tax certificate (CTC) from the City Treasurer's Office (CTO)

1 day PHP 500

7 Obtain the business permit to operate from the BPLO

6 days

(PHP 2,408.05 business tax + PHP 200 mayor’s permit + PHP 150 sanitary inspection fee + PHP 50 signboard fee + PHP 300 business plate + PHP 100 QCBRB + PHP 545 zoning clearance + PHP 1,300 garbage fee+ PHP 300 FSIC (

8 Buy special books of account at bookstore 1 day

PHP 400

9 Apply for Certificate of Registration (COR) and TIN at the Bureau of Internal Revenue (BIR)

2 days PHP 100 (certification fee) and PHP 15 (documentary stamp tax, in loose form to be attached to Form 2303)

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No. Procedure Time to

Complete Associated Costs

10 Pay the registration fee and documentary stamp taxes (DST) at the AAB

1 day

PHP 500 registration fee + PHP 4,169.97 DST on original issuance of shares of stock. DST on the lease contract is not included in the computation of the cost

11 Obtain the authority to print receipts and invoices from the BIR

1 day no charge

12 Print receipts and invoices at the print shops 1 day PHP 3,500

13 Have books of accounts and Printer’s Certificate of Delivery (PCD) stamped by the BIR

1 day

no charge

14 Register with the Social Security System (SSS) 7 days no charge

15 Register with the Philippine Health Insurance Company (PhilHealth)

1 day no charge

16 Register with the Philippine Health Insurance Company (PhilHealth)

1 day (simultaneous with previous procedure)

no charge

42

Big Impact Indicators

Indicator

Indicator Rank

(2013)

Target Indicator Ranking (2014)

Indicator Ranking Variance

New World Ranking , single variable (basis:

138)

World Ranking Variance

Starting A Business* 161 19 +142 117 +21

Dealing with Construction Permits

100 17 +83 127 +11

Getting Electricity 57 34 +23 134 +4

Registering Property 122 21 +101 126 +12

Getting Credit* 129 1 +128 109 +29

Protecting Investors* 128 6 +122 112 +26

Paying Taxes 143 70 +73 131 +7

Trading Across Borders 53 3 +50 128 +10

Enforcing Contracts 111 37 +74 130 +8

Resolving Insolvency* 165 58 +107 117 +21

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• Gameplan presented and approved by the Economic Cluster • Currently conducting discussions with heads and staff of concerned

agencies (SEC, BIR, Credit Information Corporation, DTI, SSS, SEC, PhilHealth, Pag-Ibig, DOJ and Quezon City) to operationalize the Gameplan

• Conducted EoDB dialogue Dec 10, 2012 attended by all concerned agencies and IFC survey contributors

• Revised EoDB list of respondents to include those from the concerned NGAs

• Created EODB Taskforce tasked to ensure that the Gameplan is being carried out as planned

• Conducted videoconferences with IFC Washington to establish network and to ensure that reports are received and accepted for inclusion in the 2014 report. Philippine Embassy also working with IFC Washington.

What has been done so far?

44

Date Activity Agency/ies

July 12, 2012 Submitted reform inventory to IFC Washington

SSS, CIC, SEC, QC, BIR,LRA, SSS, PBR, BIR, Philhealth, Pag-ibig, SC

September 5, 2012 Submitted 2nd response to IFC SEC, QC,LRA

October- November • Meet with concerned agencies

• Develop DB Monitoring tool

SEC, SC, CIC, BIR, Microsoft

November 30 2012 Submit reform inventory to IFC Philippines

SSS, CIC, SEC, QC, BIR,LRA, SSS, PBR, BIR, Philhealth, Pag-ibig, SC

December 7, 2012 Videocon on Starting a Business and Paying Taxes

SEC, PBR, BIR, SSS, PhilHealth, Pag-ibig

December 10, 2012 EODB Dialogue with contributors and heads of concerned agencies

SSS, CIC, SEC, QC, BIR,LRA, SSS, PBR, BIR, Philhealth, Pag-ibig, SC. DB survey Contributors

December 21, 2012 Videocon on Protecting Investors and Resolving Insolvency

Atty. Lim, SEC, DOJ, SC.

2012-2013 Doing Business Work plan

45


January 11 NCC PBR Working Group meeting DTI, PBR

Jan 15 2013 Meet with CIC to discuss proposed reforms

CIC, WB

Jan 22, 2013 Meet with Meralco to discuss availability of Credit info from utility companies

Meralco, CIC

Jan. 25 -Meet with Atty. Lim of ACCRALAW ACCRALAW

January (last week) PBR Oversight Meeting DTI, PBR

January (last week) – February (1st week)

Submit list of suggested respondents to IFC Philippines

IFC

Jan (last wk) – Feb (1st wk) Set meeting with CIC and Meralco to discuss access to credit info

CIC, Meralco

February (1st week) PBR Oversight Meeting (expanded group)

DTI, PBR


46


Feb. (last wk) -Get feedback from Atty. Lim and Associates

ACCRALAW

Feb. (last wk) - Discuss DB gameplan to Microsoft for the DB dashboard

Microsoft

March (1st week) Consolidate reforms Simulate scores to know the effect of reforms to indicator and world ranking

NCC

March – April Identify actions/proposed reforms. NCC

May (2nd week) – June(1st week)

Finalize Reform Inventory NCC

June (2nd week) Submit reform inventory to WB Washington for feedback

NCC

July 12 Deadline of Submission of reforms NCC

July – August Receive feedback from IFC Washington IFC

October Release of 2014 DB Report IFC, NCC


47

Lessons Learned

1. Transparency leads to Competitiveness : Governance matters

2. Work-in-Progress is no longer good enough 3. Importance of Execution and Delivery 4. Teamwork is required : No More Silos 5. We must focus on Multiple Fronts (no single variable) 6. The Competition never sleeps 7. The bar always rises. We move up a weight class and meet

larger, stronger competition 8. Speed-to-Reform should be our new mantra 9. Maintaining Momentum is important (gain speed) 10. Embedding and institutionalizing change / reform for the

long run is important. This has become a key concern.

Becoming More Competitive

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